Full text of Commercial and Financial Chronicle : November 23, 1944, Vol. 160, No. 4336, Section 1

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1941

NOV 2 4
Final

Edition

Volume

160

ESTABLISHED OVER 100 YEARS

Number 4336

New

In 3 Sections

York, N. Y., Thursday, November 23, 1944

Price

Section i

Cents

Copy

The Post-War Price Problem
In Peacetime for America?
Here Are Some Opinions

ing in
the

—Inflation
By

the Subject

Deflation?

S. ECCLES*

Chairman, Board of Governors of the Federal Reserve

The issue of whether America should
adopt a system of compulsory military train¬
peacetime promises to receive increased attention in public and official circles as

wars,

MARRINER

Reserve

Board

Head

Asserts

Business

Disburse

Must

System

Funds

Which

It Receives and Wage Earners Must Spend or Invest Income Directly

Europe and Asia move closer to final victory. In the interest of clarifying or
Indirectly if Employment Is to Be Found for Substantially All
public thinking on the question the "Chronicle" will publish,
beginning with this issue, the Workers. Says Government Should Guarantee a National Minimum
views and opinions of those who desire to
Comments
express themselves in the matter.
Income, Education, Health and Old-Age Security for All Citizens. Sees
should be addressed to
Editor, Commercial and Financial Chronicle, 25 Spruce St., New Federal
Budget of Not Less Than $25 Billion a Year After War or
York 8, N. Y.
'
:
<S>
—
•—-——
—4
About Three Times 1939 Level hut With Tax Rates Less Than Triple
HON. CLAUDE PEPPER
police forces for them to serve on.
In connection with this
sympo¬
Before Because of Larger Income Base.
I do not believe it is necessary to
U. S. Senator from Florida
sium, we would call attention
—

"several

recent

subject

which

discussions

see us inaugu¬
compulsory military training

appeared in the
"Chronicle" of Oct. 26, starting on

rate

the

Undoubtedly,

cover

the

These

page.

opinions

prominent

of,

reflected

respectively,

Catholic

take

I would not like to

the

after the

war

our

peace

goal

after
is

war

educator

the

prominent edu¬

zation

which

institution.

Herewith

now

are

some

regarding

hand.

the

ex¬

necessity

not

GRAHAM

favor

not

are

force
trol

compulsory

our

what has

before

stop

—

never

war

—

Chairman

"After the

the

Executive

Committee

been

done

ration and training for war as we
now
think of it.
While we shall

BUY MORE

always have boys who want to be
policemen, we have our home

WAR BONDS

renewal

a v e

c l

the

First

consume

consumed

World

War;

before

then

debtor nation and the

were

plus

went

the

pay

we
sur¬

service

the

sales

R- C- Leffingwell

stable peace.

consume

British

loans

war

factors in the readjustment of the
economic framework for a pros¬

could

(Continued
Index
page

investments

the

Allies
page

Regular

If,,

Marriner

the

transition

from

Eccles

period
to

war

peace,

fail

maintain

trols

war-time price con¬
rationing until civilian

and

goods

become

available

acle-

*An address by Mr. Eccles be¬
fore the National
ference

(Continued

produced

danger of

during the First World War, and

than

deflation.

ourselves

debts.

in¬

avoid

flation,

shall still face

Board,
Nov. 13, 1944.

our

it.

may

having
botn.
However, if

pros¬

produced

be faced with

opportu¬

can

ourselves.
than

stmcnt.c

perous and

than

following

continued, "we must find outlets,
our surplus produc¬
tion.
We are geared to produce

among

have in-

shall certainly

perous, busy people," Mr. Leffingwell said.
"If this is to be," he

far

flation,

Thus

happy,

one

have deflation

markets, for

in-

abroad

and

be¬

the other. But

want Amer¬

nity, the home of

American

war

prise and initiative

con¬

inter¬

even prepa¬

tween

ica to be again the land of enter¬

ests
and
do
military training in peacetime. It
J. P.; Morgan
our
is my opinion, that this should be
part
to
&
Co.,
Inc.,
restrain
the
confined solely to military train¬
and t o rme r
"ganster" naing and for as brief a period as
Assistant Sec¬
Hon. Claude Pepper
tions.
But
is necessary, I am opposed to in¬
retary of the
mil it a rism
cluding in this training program
T r easury,
breeds militarism, and I am sure
for our youth any other activities
pointed to the
that we can obtain, through vol¬
such as the CCC, regardless of
need
of
fur¬
unteers, a force adequate to our
any past or future usefulness this
ther expan¬
needs. I do, however, believe that
latter
might have.
Compulsory
sion
of
both
military, training, in my opinion, military training is excellent dis¬
cipline and physical education for imports and
should not in any way infringe
exports and a
those who take it.
It is our job
on or conflict with school or col¬

lege training.

stated implies that

Repeal of Johnson Act.

Nov. 15, R. C.
Leffi rig well,

Bank of Jersey City, N. J.
in

that

mean

going to keep
adequate

President, The First National

is, "Post-war Price Prob¬

question

In his opening remarks as presiding officer of the Annual Meet¬
ing of the Academy of Political Science at the Hotel Astor in New
York City on

That does

war.

The

Morgan & Co. Executive Asks for Cancellation
Of War Loans and

constantly
preparing for

appear

subsequent issues of the

KKLLEY

J. P.

subject

Others will

eliminate

"Chronicle."

;

interna¬

will

the

conference

Deflation?"

Lefiingwell Says We Must Fostei
And Protect Foreign Investment

organi¬

pressions

question before this

w e

set

cational

The

lem—Inflation

2262)

choice

kind

tional

on page

the

Synod
Church, and

Presbyterian

two of each boy's

measure.

the

year or

—

members of the New York
the President of

(Continued

Industrial Con¬

New

York

on page

City,

2264)

and

covered

2254)

Features

State and

2272.

Municipal

Buy War Bonds

Bond

Brokerage

VICTORY
for Banks, Brokers

Hirsch, Lilienthal & Co.
Members New York Stock Exchange
and other Exchanges
London

R. H. Johnson & Co.
Established

Geneva Rep.

AUTHORIZED

Teletype NY 1-210
.

Cleveland

Street, New York 5

BOSTON

Dallas

WALL STREET

NEW YORK

Actual

Trading

Members New: York Stock

INCOtrOtATtO

Syracuse

Markets,

Exchange

Members New

Exchange

York Curb

30 Broad St.

634 SO. SPRING ST.
*

Department

LOS ANGELES

THE CHASE

Hardy & Co.

DEALERS

from

HUGH W. LONG and COMPANY

PHILADELPHIA

Troy
Albany
Buffalo
Pittsburgh
Williamsport

Bond

FROM

64 Wall

and Dealers

MAY

OBTAINED

1927

INVESTMENT SECURITIES

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

Ipinoycr 2-0(i00
■£, ; Chicago

PROSPECTUS

Tel.

DIgby 4-7800

New York 4

NATIONAL BANK
OF

THE

CITY OF

NEW YORK

Tele. NY 1-733

always

Chicago, North Shore

BOND

'ELECTRONICS

BROKERS

-RAILS

Midland Utilities

& Milwaukee
Mortgage Bonds

■■

INDUSTRIALS

Report Available

6s of 1938
Analysis

■?.'

upon

request

upon request

BULL. HOLDEN & C2

Kohbe, Gcarhart & Co.

MEMBERS NEW YORK STOCK EXCHANGE

INCORPORATED

14 wallst„ New York 5,n.y.

Members N.

Security Dealers Ass'n

45 Nassau Street
TELEPHONE-REpTOR ar63Q.q

Tel.

REctor 2-3000

New York 5
Teletype; N. Y. 1-576

Philadelphia Telephone:,

Enterprise 6015

Reynolds & Co.
Members Neio York Stock Exchange

120

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

REctor

2-7400

Teletype NT 1-635

HART SMITH & CO.
Members
New

York

Security

52 WILLIAM ST., N. Y.

Bell

New York

Dealers
5

Assn.

IIAnovcr 2-098C

Teletype NY 1-395
Montreal

Toronto

IRA HAUPT & CO.
Members of

Principal Exchanges

111 Broadway,
REctor 2-3100

N. Y. 6

Teletype NY 1-1920

Thursday, November 23, T944

CHRONICLE

COMMERCIAL & FINANCIAL

THE
2242

in;

Trading Markets

Maintain
Active Markets

Franklin Stores

Semler, Inc.

R. B.

steep rock

Rockwood Co.

CYAN AMID

dredging

bulolo gold

National Airlines

Bought—Solcl—-Quoted

;

Mid-Continent Airlines

*P. R. Mallory

5% Preference

iron mines
noranda mines

Bought
*

KING

KING &

Members

■?
New

NatT Ass'n

40 Exchange

BArclay 7-0100

Telephone

Call to Arms

SMieMoupiiij
Baltimore Stock Exchange
Broadway, N. Y. 5

Members

The

WOrth 2-4230

Teletype* N.

shares on

Y. 1-1227

614 s arid 7s

3/6s,
*

Traded on

Plaza

York Curb

New

Street

31 Nasaau

Telephone
Bell

System

Exchange

York 5

New

COrtlandt 7-4070
Teletype NY

1-1548

Byrndun Corp.
Common

Indiana Limestone
Income 6s,

St.

1952

Louis-San Francisco
6s,

1936

for

Actually,

There must be

20 Pine

Bell

5
WHitehall 3-1223

Teletype NY

tee: George
B

1-1843

A tax

structure

was

advocated

war

& Co.,
New.
York; Fred¬

BIyth

Bovenizer

Co.;

the

Since the war,

York

Nov.

Mr.

Ma¬

Reiter-Foster Oil

Walter F.

Dominion Securities
Corp., New York.
Nominations will be made to
fill the terms of office expiring
next Jan. 15th of the following
members of the Board of Gov¬

gill is a mem¬
ber of the law
firm of Cra-

revenue

considerations?

he continued, taxes

used not to stimulate
business activity but to drain off
all

been

but

very

moderate return,

regardless of the impact on busi¬
ness.
But with the end K of the
war,

the need will
structure that will

he emphasized,

exist for a tax

substantial rev¬
enues, but at the same time en¬
& Moore, and
was
formerly courage business expansion,
Under
Sec ¬
"If we have business expansion
retary of the and full employment after ; the
U.
S.
Treas¬ war," Mr. Magill stated; • "we can
vath,

BOND

Swaine

&reeneawtCompany
Security Dealers Assn.

not only produce

with¬
Ac¬
war, he said, tive business and moderate tax
taxes
were rates are a much better prescrip¬
f
e q u en tly
tion than' moderate business and
used as prehigh
tax
rates.
Therefore, it
(Continued on page 2270)
entirely apart
raise; the necessary

ury.

2-4850

Prior to

1127
Magill

Roswell

ventive

the

out

revenue

disrupting our economy.

measures,

Preferreds

Broadway-Trinity
'

lis

New York

Dealt, in on

Curb Exchange

Frank C. Masterson &
Members New
64

NEW YORK 5

2-9470

HAnover

1-1140

Teletype NY

Co.

Ygrk Curb Exchange

WALL ST.

The Cross Company
Laclede Christy Clay

Products

Tenn. Ala. & Georgia

R. R.

Indiana Limestone 6s,

Debentures

& 5(4%

Common

Rabe

Saunders,

1952

Devonshire
Street? announce that Wilfred G.
Conary, formerly with the trading
department: of B. W. Pizziii &
Co.,; Inc.,?in New York City, is
now associated with their trading
&, Co.,

Memoranda

Members N.

Macfadden

Publications, Inc.
Debenture 6's, '68

$1.50 Pfd. & Com.

LOUIS? MO.—Andrew

admitted to part¬
nership in Newhard, Cook & Co.,
Fourth & Olive Street, members
of the New York and St? Louis
will

November
30th; Mr. Mills who is in charge
of the firm's .municipal bond de¬
partment? in the past was a part¬
Stock "Exchanges,

ner

N. Y.

NY 1-1026

BArclay 7-0570

Newhard Cook Partner
ST.

Dealers Ass'n

Y, Security

Broadway, New York 6,

111

Andrew Mills to Be
t.

request

F. H. Holler & Co., inc.

department in Boston.

Mills

C. E. de Willers & Co.
Members New

York Security Dealers Assn.

120 Broadway,

REctor 2-7634

N. Y. 5, N. Y.

Teletype NY 1-2361

Francis, Bro. & Co.

Railroad

FASHION PARK, Inc.

Public Utility

Makes men'is
"Fashion

Also

sells

All
for

investment dealers
our

Sell

Wellman

PATHE

INDUSTRIES

Troster,Currie&Summers
G.A.Saxton&Co., Inc.
WBItebiUI 4-4910

1-608

...

Members New

25 Broad

Co.

York Stock Exchange

St., New

HAnover 2-0600

York 4, N, Y.
Tele. NY 1-210

Request.

■

Bonds, Pfd. & Com.

■\

Co.

BOUGHT, SOLD &

INCORPORATED

detailed report.

Simons, Unburn &

•oration

Wm. J. Mericka 6-

should send

Eastern

Engineering

Circular

retailers

everywhere.
No reconversion prob¬
lem. Attractive postwar outlook.

STOCKS & BONDS

Buy &

Company '

clothes; "Stein Bloch",
Owns Weber &

Park", etc.

Heilbroner,

industrial

f!
Teto'ije NY
3T» TIM. ST.. N. T,,S

*5%

erick J. Rabe,

Rochester, N. Y.

from

City

ONE EXTRA

Trading Markets

Central States Elec. (Va.)

Inc.,

Warner

have

Teletype NY 1-1919

Inc.; Lee M.
Lirabert,

Sci¬

15.

Bell System

Stock Exchange
Curb Exchange

WHitehall 4-8120

65 Broadway

Blodget,

and

average

Academy

New

St., N. Y. 5
Hanover
Teletypes—NY 1-1126 &

Members New York

Levy and End of

Buy at Least

Bell

Members New York

liday, Stone
& Webster

profit

Hotel Astor in

Members N.

Edward A. Purcell & Co.

Co.; Gail Gol-

business

ence

37 Wall

Chicago Corp.

nizer,

o v e

Kuhn, Loeb &

Political

$100 WAR

ing

Pfd.

Plain

Nominat¬
Commit¬

Official Urges Repeal of Excess Profits Wilfred Gonary With
Tax on Dividends
;
J. A. Warner, Boston
that will promote business expansion after , the
and outlined by Roswell Magill before the .3. BOSTON, MASS. — J. Arthur

Former Treasury

Street, New York

Telephone:

N. E. Public Service

gained-only-$0.54 in dividends in
four years."
And:
.
. working
ernors of the Association: James
capital is meager in relation to
that lias been
Coggeshall, Jr., First Boston
the obligations:'of the business.
operating
a t
Corp., New York, and Clarence E.
The entire net current assets of
Unterberg, C. E. Unterberg & Co.,
peak produc¬
Thomas A. Boal
York;
and the following
tion,- with the the industry would not equal one New
month's operating costs as preserit members of the District No. 13
output bought
(Continued 011 page 2256)
Committee: Frank Dunne, Dume
up as fast as it can be .turned out,
& Co., New York; Irving D. Fish,
Smith, Barney & Co., New York;
Charles F. Hazelwood, E. H. Rol¬
lins & Sons, Inc., New York; David
S. Rutty, Sage. Rutty. & Co.. Inc.,
lot of

Preferred

BRUNS & CO.

Company

ing

Tax Structure

H. G.

Southwest Natural Gas

of the follow¬

different picture,
Here
few brief statements:
"The average aircraft stockholder
lost? $6.62 in market value, ■ and

shows

branch offices

appointment

the

NY 1-1557

La.-Birmingham, Ala.

Inc.,
announces the

Dealers,

Harbor, and so on.
the
industry itself

since Pearl

Struthers Wells
Common

the

that

few
years?
Many
people do.
And why not?

Curb Exchange

least,

That,

image

past

the

Vanderhoef & Robinson
Members

one

owned

1956

N. Y.

National

mental
layman
has of the industry.
It is based
of the major
aircraft com¬ 011 news reports of one-thousandpanies,
and plane raids over enemy territory,
that you had and figures like 185,000 airplanes
in

Stock Exchange

Direct wirei to our

13 Committee

sources.

shares
stock

Chairman,

some

St., New York 4, N. Y.

New Orleans,

Fish, Chairman

weeks have seen a flurry of activity in aircraft
the market, giving evidence of renewed interest by inves¬
tors.
Do you'*1*
———
wish, that you and with unlimited financial re¬

'International
Power Securities

Members New York

25 Broad

of the
of the
Association of Securities

Irving D,

District No.

past few

owned

Savoy

Design.

plification of Airplane

Analysis on Request

Nominating Ccmm.

Industry.
and
That Private Ownership of Planes Will Be Restricted by High Costs and
Other Obstacles.
Asserting That There Is no Threat to Market for
Planes From the Government's Surplus, He Looks for Brighter Prospects
For Manufacturers in More Efficient Production Methods and in Sim¬

120

Bell

NASD District

Market

Airplane Producers Are Making Large

the Fallacy That

Quoted

—

HAnover 2-0700

Profits, Mr. Boal Discusses the Post-War Prospects of the
Predicts That "A Good Family Aircar Is Still a Distant Prospect"

War Loan

The
Sixth

Is Your

After Refuting

Exchange

BROADWAY, NEW YORK
Tel. REctor 2-7815

120

Associates, Los Angeles

Suffens, Boal &

BONDS!

MORE WAR

THOMAS A. BOAL

MUST BUY

York Curb

New

1-423

Aviation Can Meet the

Sold

—

Steiner, Rouse & Co.

Exchange

York Stock

New

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

& Co., Inc.

Members

Stock Exchange and

BROADWAY

115

HA 2-2772

PI., N.Y. 5

TELETYPE NY

BELL

Members N. Y.

Ass'n
Securities Dealers, Inc.

Security Dealers

York

fofC PONNELL & fO.

Co.

Goodbody &

Established 1920

Mills4*'

Avondale

AMERICAN

in U. S. FUNDS for

Members N.
74

Y, Security

Trinity Place, N.

Teletype NY
Private

Y. 6
HA 2-2400
1-376-377

Pittsburgh

Cleveland

St. Louis

Cleveland Stock Exchange

Commerce

Bldg.,

Cleveland 14

Telephone MAin 8500

Dealers Ass'n

Wires to Buffalo

Detroit

Members
Union

QUOTED

Broadway, New

WHitehall 4-3640
Direct Private

%/mV

York 6

Wire to

Cleveland

MEMBERS NEW

One

YORK STOCK

Wall Street, New

EXCHANGE

York 5, N. Y.

THE COMMERCIAL & FINANCIAL CHRONICLE

Volume 160 /* Number 4336

•

The

;

2243

COMMERCIALS and

FINANCIAL

CHRONICLE

are

interested in

offerings of

Reg. U. S. Patent Office

;William B.Dana Company
Publishers

High Grade

;■

1 vV/»

■

Public Utility

25 Spruce Street, New Y6rk' 8 "

and Industrial

HOW TO WIM FRIENDS

BEckman 3-3341

WAR

PREFERRED STOCKS

Herbert D. Seibert,

AND INFLUENCE PEOPLE
Dale

Editor and Publisher

personal
William Dana Seibert,

President

William DrKiggs, Business Manager

BONDS

Thursday,

November

23,

Telephone HAnover 2-4300
every

week

;

;;;

Members New

that

but

the

make

bids

Our
stocks

friends

know

market.
and

people

■

with!

Obsolete

Teletype NY 1-5

WALL

Exchange

Thursday

bonds

?tuck

York Stock

secret

are

how

relations,
do

and

25 Broad Street, New York

1944

Published twice

how

Spencer Trask & Co.

know

may

Securities Dept.

STREET, NEW YORK

Telephone: WHitehall

4-6551

{.general news and advertising issue)

STRAUSS BROS.
Members

New

Security

York

and every.

_>? i

Simplification of
| ; . Corporate Taxes

(complete statistical issue—market quocation.
records,
corporationbanking,
clearings,: state and city, news,' etc.)

Board of Trade Bldg.

Broadway

NEW YORK 4

Monday

Ass'n

Dealers

CHICAGO 4

Harrison 2075

DIgby 4-8640 •:

Otlier Offices: 135 Si La Salle St.,
Chicago 3, 111. (Telephone: State;0613);
1 Drapers" Gardens, London,"
E,'C.,''Eng¬
land,'; c/o Edwards & Smith, '
\
'r

Teletype CG 129

Teletype NY 1-832, 834

Sixth War Loan

Reentered,

by William
as

Dana

By ROY BLOUGH*

Company

Subscriptions in United States .and
Possessions, $26.00 per year; in Dominion
Of Canada, ; $27.50 per. yearf
Central- America,
Spain, * -Mexico T arid
Cuba, $29.50 peri year
Great VBritain;
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year. »
•,

Other Publications

Newburger, Loeb & Co.
It

;

It' Members

1140 Wall St.,

111

York

New

Stock Exchange

yr/

NOTE—On account of the fluctuations

in the rate of

SEC Fails to Move to Protect Right of Small Business to?
Raise Capital Through the Sale of Securities. ■ ?■

the

war

not .imply: only

does

battles

achievement.

;

military

the home front

important than those abroad.

and
»•

There

are

less

One of the most ' important
well recognized of these is the battle of small business

to survive.

?. ■?;■?;

? •'?:?-

■■■■■

Y^/:

•

'Y?-

■?

' J".'

its,taxes

has

long

been

auditors

Members New York Security Dealers Assn.

HAnover 2-8970

experts

as new

claims

in-

Pfd,

Dr. T.
years
man

spoken

reiterated

write

the

successors,

his

tax

bill

ambitioii,
td

would

that

Bought

plification. in
the''s5rstent of

*An

made

address

Dr.
Blough before the Annual. Symi
posium oh Accounting and Tax¬
-

ciation
Roy Blough

taxes. The-

countants

Certified
at.

111

York

Security Dealers Assn.

•

Broadway, New York G, N. Y.
REctor 2-5288
Bell

System

Private

Teletype,

Wire

Los

1-2480

Angeles

Ac¬

Public

Hill,. N. Ct,

Chapel

Nov.. 17,. 1944.

varnished

truth is that the income and

Sold

—

Members

ation of the North Carolina Asso¬

internal reve¬

Com.

J.F.Reilly&Co;
New

sim¬

TEXTILE

later Boies Penrose, Chairv
of the Senate Finance Com-'
expressed

Com.

CONSOLIDATED

Three

1918.

S. Adams in

mittee*

im¬

created."'

are

ASPINOOK

ive

Finishing

United Piece Dye

cannot

were

;
*

Teletype NY 1-1203

U. S.

one

sufficient numbeilof

and

Those' words

'There is an.

need' for

fast

exam¬

mediate

Broadway

New York 6, N. Y.

be
secured by the Government \ to:
audit,, assess,, and settle old claims

new

for

heavy and

are so

tribate that

|f:

are

i nvp e r at

Realizing this, many agencies are at work attempting
to insure this result.
Amongst these are various trade
!■
organizations, groups that have united for self-preservation,
\ and more particularly our Congress, which through its Corm
j mittee on Small Business, has made that aim its chosen

Information

L. J. GOLDWATER & CO

Pfd.

ple, this state¬
ment:;
"•

nue

7?'.'^-

'I xxrrvrlr
work;

er,

Winning

Certainly

right

•story; .Consid¬

Immediate

a' natural

but ? they
not

QUOTED

Statistical

favor¬

cent (year s,

The Suivival of Small Business

Complete

To complain about the complexity of our tax Jaws has almost the

standing
of.our

sports.'?:-' T'h;e;:
complaints,
have
"grown,
louder, in re¬

;(

Capital Stock Taxes Is By Repeal, hut Simplification of Corporate
Income iTaxes,; Though Requiring; Few Changes, Cannot Be Accom¬
plished Because of Policy Considerations. Maintains That Taxing Cor¬
porations as Partnerships by Allocating Income to Stockholders Wottld'
Complicate Rather : Than Simplify the Problem. Looks for Favorable
Progress. Through the Joint Investigation of Tax Simplification by Con¬
gress and the Treasury.
;
|
;
'

ite .v indoor

exchange^ remittances,'faf
foreign subscriptions and advertisements
must be made in New York.funds; J

: WHiteball 4.633L

N.Y. 5

Bell Teletype OTT 1-2033

SOLD

and

Bank and Quotation Record—Mth, $20 yr.

Monthly Earnings Record—Mth.. .$20

BOUGHT

Treasury Expert Asserts That Best Method of Simplifying Excess Profit

second-class matter Feb¬

BONDS

CERTIFICATES

Director of Tax Research* U. S. Treasury

ruary' 25, 1942, at the post office at New*
York,- N. Y... under the- Act of 'March
3, 1879.

WAR

TITLE COMPANY

;

prof-1: /: (Continued

on page

2268)

Buy MORE
War Bonds

Robert J.

Watt, AFL Representative

National War Labor Board,

Expresses Confidence That Labor and Management Can Help Restore
period, with the return of normal
Veterans to Jobs.
Says Both Should? Share Responsibility and Not
,! employment conditions, will present immediate^ pressing
"Let Uncle Sam Do It."
i problems."
;Y' '
' | -

NOW!

The reconstruction

Here the securities field has

only after
Let

Securities

ered:

and

the

and

Bel¬

{spreads taken by dealers in excess of 5% between their
purchase and sales prices laid them open to disciplinary
»action by the Business Conduct Committees of that Asso¬

in... industry

Mr.

delegates,, democratically

devoted

large

represent their respective sides.
I urge that economic self-govern¬

part

of his address;

account
a

taken

whether

ment

When
SEC

consider that in

(Statistical Series—"Cost

investment field

ment

only

linked

(Continued

Members New York

Broad

civil govern¬

Security Dealers Assn

St., New York 4, N. Y

Tel. WHitehall

3-0272

the mainte2247)

through

page

PANAMA COCA-COLA
Dividends

date

1943

Public National Bank

$2.75

3.65

& Trust Co.

$4.50

1942

—

y.'..

;'•

.'v.'vv

C'rcular

request

Third quarter analysis
available on request

Approximate selling price—27

of Flotation

of Equity

No, 744, Oct.

resuscitation of; the NRA Code Authority in the
made possible through the MaIoney'Ad:;*-.Y ."TV?-I"
(Continued oh page 2267)\; .r:.Y j

HOIT,RQSESIRQSTER

Ffttnhlished

•

Watt

DUNNE a CO.

recent release of the

'"Constitutes

Dividends declared 1944

alleged yardstick or

(Securities by Small Business"—Release

Robert

ration

interpretation by the Board of Governors, when it was in
fact a rule and, under the NASD's by-laws and the Malopey
Act, it should have been submitted to the members of that,
association for their approval or disapproval.

p, e

part of
.r,

.This principle was passed as an

c o o

Inquiries Invited in

New England Securities

such trans-;

Overhead formed
"

the calculation.
?

was

profit.

to'the need of

chosen

actions resulted in

Private Wire to Boston

sys¬

aged to; establish self-government
through
accredited

.Plaz^a

Hote I."
Watt

economic

our

labor and management be encour¬

1944,

mont

lT urge
that labor and
management be
freed of political interference as
completely as possible. I urge that

Thurs¬

the

fabric

tem," Mr. Watt declared.

evening,

day

the

(Institute

America,,

meeting that responsibility. i;
v;??.;,"
j.
In its letters of Oct. 25, and Nov. 9, 1943, the NASD
created a "5% spread principle," by the terms of which

Con-

the

Dealers Ass

SUGAR SECURITIES
.

York Security

in; the

"I strongly urge the application
of the principles of democracy to

Control

City

industrial; relations

Bell

post-war period.

York

New

responsibility of labor
management in establishing
maintaining
normal
and

stable

meeting of the

Nov.

ciation, "No

c,t.

Broadway
COrtlandt 7-6190
System Teletype NY 1-84

joint

and

nth 1y

of
on

Hi mo o & to. m
170

ad¬

dress
r

lers

moment

deliv¬

Board*

Commission and the National Association of
Dealers*, two of our regulatory bodies, have been

Watt,, International Representative of the American

dew

held

reflect for

J.,

Federation of Labor and Labor member of the National War Labor

period of time.

A Robert

how the Securities and

Exchange

major responsibility^
for it must be plain that the flotation of small new;
capital issues, and the maintenance of a continuing ;
market in those issues, is vital in the meeting of those 4
problems.
The maintenance of healthy, continuous • v
markets is imperative because investors will be dis- '
posed to shun the securities of small business entirely
if it develops that such securities can only be liquidated
for a fraction of their initial cost and then possibly

Telephone

C. E.

1914

Members

Trinity Place, New York 6, N. Y,
BOwline Green 9-7400

Teletype:

N'Y t-375

Unterberg & Co.
Nf'Y. .Security Dealers Ass'n

Broadii^

NeWYork 6, N. Y

Telephone' BQwIing • Green 9-3565
Teletype NY 1-1666

Thursday, November 23,1944

FINANCIAL CHRONICLE

THE COMMERCIAL 8c

2244

DENVER

BOSTON, MASS.
Outstanding

With

FIRST OF NEW YORK

Stock

Cement

will

Dividend Arrearage

buy

Riverside Cement

sell

Aircraft
Alma

Lincoln

Cresson

Class A

CORPORATION
70

Aetna Life
-

wishes to

that

announce

»•

•

'
I

MR. GEORGE A. SEARIGHT

Auto Car

BOSTON

Manager of the Trading Department

November- 1,

KEystone 31011

PHILADELPHIA

CARTER H.C0RBREY&CO.

1944

Crompton & Knowles
Loom Works

Moxie*
Nu-Ename!

Middle West

Common

■»

Pacific Coast

—

Eastern Corporation

For

Philip Carey

Poilak Manufacturing

Memo

UNDERWRITERS

PLEASED TO ANNOUNCE THAT

WE ARE

Members New

Scovill Mfg.*

Wilfred

(FORMERLY

Standard Stoker

WITH

Conary

PIZZINI

IS NOW ASSOCIATED WITH OUR

Title Guarantee & Trust

;;

135 La Salle St.

BOSTON

Anier.

Window

Bird

& Pfd.

Com.

....

Los Angeles
Hagerstown, Md.

Telephone—WHitehall 3-7253

Outstanding

We have

continuing interest In:

American-La France
Common

Foamite

(Circular setit upon request)

Farmer and Banker In America's

"A"*

Co.

Drackett

Long-Bell Lumber

Motor*

Cement

Street, Philadelphia 2

Pittsburgh, Pa.

Post War Stock

Common Stock

Buda Co.
Cons.

1529 Walnut

New York

Spring St.

Trinity 3908

CG 362

CORTLANDT 7-9400

NEW YORK 5. N. Y.

120 BROADWAY,

Gaumont

Brock way

between

7r:

;

PHILADELPHIA

BOSTON

NEW YORK

Glass,

650 S.

Son*

British

System

J. ARTHUR WARNER & CO.

;

INVESTMENT SECURITIES

Standard Eng.

Slock* Exchanges

Wire

Philadelphia, Netv York and Los Angeles

LOS ANGELES 14

CHICAGO 3

Randolph 3002

INDUSTRIALS
Aetna

York, Philadelphia-and

Los Angeles
Private

j®

TRADING DEPARTMENT

I Triumph Explosives

Wickwire Spencer

MARKET

DISTRIBUTION

INC.)

CO.,

SECONDARY

Request.

BUCKLEY BROTHERS

Purolator

| Talon Inc.

Bldg.

Wholesale Distributors

Deliver 2, Colo.
300 California

Teletype BS 69

CHICAGO

Merchants Distilling*

Electrolux*
Emerson Radio

Oil

Mines

has been appointed

Douglas Shoe, Com. & Pfd.*
Deep Rock Oil

| Liberty Aircraft New
I

Gold

B. E. SIMPSON & CO.

MASS.

Tel. HUB 1990

Appl,

Bendix Home

request

SQUARE

OFFICE

POST

Gold

Coastal

United

LERNER & CO.

| American Hardware*
I

sent upon

Circular

Cons.

Kinney

Market 12

Inc.

Mining:

Holly Oil Co.

Stock

HAnoVer2-7793

following:

Empire Lee Mining

$1.25 Cumulative Participating

NEW YORK 5

STREET

PINE

the

Mechanics

Eagle Fire Insurance
Corporation
Federal Machine & Welding
Eastern

Industries*

American

Great

Candy

Yice-Chairman of Board,~ National City Bank of New

Magazine Repeating Razor
Marmon Herrington

COMSTOCK & CO.

;'j

By W. RANDOLPH BURGESS*

Haskelite Mfg. Co.
Loft

Democracy

Harvester

Gleaner

CHICAGO

York

President, American Bankers Association

;

Oxford

Paper
Alegre

Punta

Riley Stoker*
Robertson

Co.

Tank &

Oil

Tokheim

Pump
United Drill "A" & "B"
Stove

United

great

as a

center
Southern
y

Mils*

«a.jama

Consolidated
&

leaders in the
A

Machine, Pfd.*

ciation.

s s o

F armer and

Mills

Bros.

banker

Finishing, Pfd.
Piece

United

many

come

Textile

Amer.

Merrimac

which

Sanford

Goodall

Palmer

./from
have

center

Aspinook Corp.
;
Berkshire Fine Spinning
Botanv Worsted, Com. & Pfd.

Dye, Com. &

have

many common

Pfd.

Wyandotte Worsted

t erests.

large

very

proportion
-the
Gas

Amer.

Power

Wrnts.

Birmingham Gas
C<mn. Light & Power
Elec.

Cons.

Federal
Illinois

Water
Power

Southern

•

W.R. Burgess

Arr. and

are

Elec.

Power

Prior

Pfd.

Republic

Southwest

Natural Gas

Lab.

Mont

terested in

America which
protects the freedom of the indi¬

true democracy

"A"*

Magnavox

».'

Request

208 SOUTH LA SALLE

enterprise

private
form.

The

banker

herence

the

its

purest
kinship

has

fice, 135 South La Salle Street. In
the past Mr. Fennelly was a part¬
ner
in Glore, Forgan & Co. Mr,

Bell

Vogel has been with the company
for a number of years; prior to
bis association with it he was a

Members N

120

Y. Security Dealers Assv

BROADWAY,' NEW YORK 5

kinds of business the banker

REctor 2-8700

.};«*,

Direct 'Phone to Philadelphia
ENTERPRISE 'PHONES
Hartf'd 61UU,

BufL*S<U4—Bos. 2100

Connection with the

Commission

Mr. Bur¬

American

Bankers

Chamber
in

held

Agricultural

Conference

CG 537

Phone RiUenhouse 3717

Dept. of
Van Alstyne, NoeiOo.
Ji^jrecently

•

Wall

;

York

New

Chelten Corporation

the

armed

and

was

one

the

Association,

Memphis, Tenn., Nov, 16, 1944.

(Continued on page 2248)

City,

Penna. Co. for Ins.

Company

Rittenhouse 8500

railroads

discussing

the present situation and

outlook..'

Copies of this interesting release
be had from

New

120. Broadway,
man

York

that organization
for

with

Standard & Poor's and has had

ment business.

4s, 4% s & 5s

Lehigh Valley R, R.
Annuity

City,

representative

formerly associated

the firm upon, ypot-r.'

Teletype PH.[279

Pa. & New York Canal & R, R.

the Southern Territory. Mr. Moor¬
man was

Whitehall 4-1234 -Enterprise 2050

Allan Wood Steel Pfd.

invest¬

4%s

...

;

Harris-Seybold-Potter

that L. Lawrence Moor¬

has joined

wholesale

Boston Phone

Common & Preferred

Laird, Vice-President
of sales of National Se¬
curities & Research Corporation,

announces

•

John Irving Shoe

in charge

N. Y.Phone

Bell System

Douglas

bulletin

ST., PHILADELPHIA

1510 CHESTNUT

L L. Moorman Joins

partner in

Exchange and other leading ex¬
a

San Antonio

Naf'l Sec. & ~

changes, have issued

Lives, etc.

F.J. M0RRISSEY & CO.

Southwestern Securities

Houston

Prior to en¬
services, Mr.

Phila. Record Common

DALLAS, TEXAS

tig, 25 Broad St., New York City,
members of the New York Stock

may

Texas

ir-

than 20 years ex¬

time

Exchange Nat. Bk. & Tr. Co:
Fidelity-Phila. Trust Co.

RAUSCHER, PIERCE & CO

Rail Situation

request.

Real Estate Trust Co.

Corn

'Phila. Phone

Paine, Webber, Jackson & Cur-

class -1

Utility Preferred StocltsJ

AH Texas
Check

Mackay & Co.

the

Ninth Pank & Trust Co.

Southern Union Gas Common

Exchange, as Manager of the Sta¬

tering

Quoted

Galveston-Houston Company

re^

members of the New York Stock
tistical Department.

Div Pepper

North

Alstyne, Noel & Co.. - 52

Street,

—

So'western Pub. Serv. Com. & Pfd.

Axrny Air Forces
Major - has become associated

with Van

Teletype PH 73

tired from the
as a

Sold

—

Republic Insurance

Jones Heads

James B. Jones,

OFFICE

Stock Exchange Bldg. Phila. t

4068

First Camden Nat. Bk. & Tr. Co. Stk. &. War.

Bought
7,

private enterprise

gess before the Memphis
of
Commerce
luncheon

System

Byllesby & Company

PHILADELPHIA

DALLAS

vigorous ad¬

*An address made by

H. M.

ST.

ILLINOIS

Randolph

Telephone

system. From his familiarity with
many

CHICAGO

government. The
great exemplar of perience in the financial district

the

with the farmer in

•

•'

Wawaset Securities

Corp.

make their head¬

quarters at the firm's Chicago of¬

Jones had

affairs

farmer

rights of private

enterprise/ The American democ¬
racy began in simple agricultural
communities with the town meet¬
the

CHICAGO TRACTIONS
Circular

ing and common participation in

Submarine Signal

the

and

vidual

International Detrola*

Corp.*
^Majes4ic Radio & Tel.*
P. R. Mallory*
Stromberg Carlson

vitally in¬
the preservation of a

farmer and banker are

Instrument*

General

agricul¬
of their senior

point of kinship I want
suggest today is that both

ILICTRONICS1
Du

Garrett

^Association

But the

Natural Gas

Warner Co. pfd. & com.

Illinois National Bank & Trust Co.

rural banks, serving

com.

Pittsbui^li Railways Co.

Trading Markets

Engineering Corp.

Vice-President of the Continental

ture, and many
officers are also farmers.

Puget Sound Pr. & Lt.
Queensboro Gas & Elec. Pfd.

Philip Carey Mfg.

*'7'

AIT Issues

Com.

Util.* Com.

Mass. Power & Lt. $2 Pfd.*-

Portland

will

Interstate Aircraft

CHICAGO, ILL.—John F. Fen¬
nelly and Rudolph E. Vogel will
become partners in Glore, Forgan
& Co., members of the New York
Stock Exchange, as of December

Bankers

ican

Fennelly and Vogel

Both

Prelererd & Class A

Exchange

/ Chicago Board of Trade '

Firm

Amer-

the

Pfd.

Gas

Div.

Com.

15,000
which

members

are

Derby Gas & Electric

Iowa

banks

GSore Forgan to Admit;

1st.

Botany Worsted Mills

Members

Chicago. Stock
'

ag-

iculture, a

7-1202

Dealer Inquiries Invited

FredJ.FairmanCo.

phis

Y. C.

I SINCE 19081

American Bankers Association should be
held in Mem-f___—.—
: •"*-

•

S. Truck Lines

PH 30

Phone, to

COrtlandt

Commission of the

tural

Private

Teletype CG 257

Leading Banker Points Out That Both Bankers and Farmers Face
Equally the Danger of a Government Controlled Economy Which Leads
Away From Democracy and Private Enterprise. r
It is appropriate that the first meeting this year of the Agricul¬

Sugar

Remington Arms

St., Philadelphia 3

Pennypacker 8200

Dearborn 1501

231 So. La Salle St.

Mokan

BOENNING & CO.
1606 Walnut

Penmgton, Colket & Co.
123
''

S.t Broad St., Philadelphia 9, Pa,' *''' New York Phorte
Hanover 2-031J0

Phila. Phone

Pennypacker 7700

Teletype PH 180

Volume 160

Number 4336

2245

THE COMMERCIAL & FINANCIAL CHRONICLE

AMERICAN BANTAM CAR
;

6% CUMULATIVE CONV. PREFERRED

Dividend Aug. 31, 1944
310
:

Selling price—12

-i

•

$.60 (Arrears $4.05)

(callable at 14 plus arrears)

par

There's

Circular

Request

V ;

■

HoixRsseSDrsster

Nothing

Aldred

Inv.

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

Telephone: BOwling Green 9+7400

—what

offer

dealers.

Cons.

Definite,

Paper S1/^

Dominion

operation with dealers is "firm" with

ST. LOUIS

Randall

Here's

idea of

our

both—and whatever is

'•'■*'/•.

*•'

•

the securities
you

George R. Cooley & Co.

•

We'll make every

ours.

street

INC.
Established

ST.Louis1,>IO.

Power

6, 1944

ance
1924

"Soon

advantage, is also to

your

effort to provide

need, and give

every

Corp. 4%, 1959

Shawinigan 4, 1961

cooperation between dealers should be profitable to

& Gloversville

SECURITIES

olive:

509

Int'l Hydro Elec.

good business: We realize that

vie
INVESTMENT

1961

Square 4, 1953

Montreal Power. 3V£, 1956-73

Fonda, Johnstown
•

us.

Company

"B" Common

Stix & GO,

Rwy. 3^2,1951

Canada S. S. 5, 1957

NY 1-375

Teletype:

1967

Canadian Pac. Rwy. 4, 1949
Canadian Pac.

Ass'd Tel. & TeL 5%, 1955

"Subject" About

•••■■<

Established 1914

Abilibi P. & P. 5, 1953
Algoma Cent. Hud. Ry. 5, 1959

5*4 1978

Steep Rock Iron S1/^, 1957

with

you

HART SMITH & CO.

other assist¬

WILLIAM

possible,

St., N. Y. 5

HAnover 2-0980

Teletype NY

Bell

•

New York

1-395

Montreal

Toronto

52 William St., New York 5
Men:bers St.

LouJs

Stock

When

Telephone WHitehall 4-3990

Exchange

Teletype NY

1-2419

you're pressed for time in closing

when you can use

touch with us—to
'

■

•

trade,

solid statistical help, get in

our

mutual benefit.

Back the Attack!

We deal in

Brook and Grabbs

Buy U. S. Treasury

Pittsburgh

Reelected Directors

6th War Loan

Railways

Of Cleveland Reserve

BONDS

George C. Brainard, Chairman
of the board of the Federal Re¬
serve

R. W.

STOCKS

Special study

68 William

Bank of Cleveland, has an-

Street

Frederic H. Hatch & Co.

Devonshire Street

201

BOSTON 10

NEW YORK 5

FIRST OF NEW YORK

Incorporated
Member^

Members New York Stock

CORPORATION
70 Pins

Bonds

Pressprich & Co.

request

Exchange

63 Wall

Security Dealers •Ass*n

Street

New York 5, N. Y.

Bell Teletype NY

Street, New York 5

1-8517

GOVERNMENT, MUNICIPAL, RAILROAD,
Telephone: HAnover 2-7793
PUBLIC

.*•

■

INDUSTRIAL

UTILITY,

INVESTMENT

"'AND

■

•'■■■

•

BONDS

STOCKS
•./.

■

George Searight With
First of New York

6th

Corp.

WARJ.OAN

First of New York Corporation,
70 Pine St., New York City,' an¬
nounces

that

Buy

George A. Searight

has

been

the

industrials

That Extra Bond

appointed manager of
the trading department. ; Mr, Sea¬
right was formerly in charge of
and

International Trade Restoration
A.'-

By CHARLES P. TAFT*

Now

nounced

Brooks

the

George

re-election

board of Frank F.

dent of

the

First

Crabbs
to

the

Brooks, Presi¬
National

Bank

Pittsburgh, Pittsburgh, Pa., and
George D. Crabbs, Board Chair¬
man
of the Philip Carey Manu¬
facturing Co. of Cincinnati, Ohio,
Both Mr. Brooks, a class A di¬
rector, and Mr. Crabbs, a class B
director, were unopposed in the

J. Feibleman

thereto he

Prior

Co.

with Tellier & Co.,

was

election,
of

which

the

Fourth

District.
term

of:

Jan. 1,

conducted

was

the larger member banks
Each

Federal

three

for

.beginning

years,,

1945,

Reserve

chosen

was

Sees

The effective date of the regis¬

sion. e&Iitr

Massie, in his applica-i

registra-p

to December, 1943, he was em¬
ployed asia trader, salesman and
managei^of Charles Hughes & Co.,
Inc., whose registration the SEC

revoked
i i

Now With Courts Co.

mmmrnrnm

stock

Stoker

offers

possibilities,

Co.

Bounds

with

has

Co.,

a m e s

associated

become

Courts

Street, -N.
New

GA.-^J

Marietta

W,,

York

members of the
Exchange.
Mr.
formerly a partner in

Stock

was

Pool

upon

Co.

which

the death

was

of Mr,

Pool.

attractive

according

memorandum

issued

post-war
to

new

Otis

;jC.Q.;,:vTerminat;To^e&. Cleveland,
Comes

Trading."

•

Inter¬
t Wall St., New York 5, N. Y.
Teletype NY .1-955

Given, It May
Sees Concern of U. S. in Chinese Economic

American Maize Products Co.

in detail something about the problems

Petroleum Heat & Power Co.

General Tin Investment

Today I want to tell

;

which

face

business

you

when the

us,

war

and

East"

industry

Lion Matchi

peacetime

Ohio Match

It certainly is not
going to start off at three times
prewar levels. But it is essential

pperations.

E&rope *

.\-Gjg

Britain,WWI
o m

and

ness

and

i t h

in the restoration of normal

stops,

commercial^

Pacifici n i ori sf

prosperity.

our

only

rough

Ten percent is

average

Frederic H. Hatch & Co.

of the rela¬

tion of foreign trade to total trade
and
many
items of importance

G. F. Menahait Now Is'

and

dia,

C h iha,

western .wheat used to be 60%

With

the

Incorporated
Member.$: H.

Gerald F. Monahan has become

Asia

East

a s

the

and

associated

Indies,

Exchange*

MN Monahan

was

for¬

.think
to

noticed

■

cently

need

of the New Ybrfcoffice of Macku-r

with the West

■■•' i;
■

Coast
■

Cohu & Torrey in Newark
24

Commerce

gen¬

Taft

going to take up the entire slack
left, by the reconversion of busi-

that Robert Cobb Cease

*An

address made

by Mr. Taft

■

start

the

heen

have
We§t

for

FARII

set
up
work.

war

Neio

the United

trade is
I

States.

agreement

that

New York

•

ST., NEW YORK

Sn.Ali SKX LUITILS

It wasn't

Quotations Upon Request

ex¬
our

TEL. HANOVER 2-9612

foreign trade;/it was imports we

TeUtype N.

long

Angeles, Cal.,

co:

the

about foreign trade.

of Commerce,

Los

Members

Coji$§ & Sugar Exchange

120 WALL

emphasis ' on
exports, however, in all our talk

wanted

15, 1944.

••

York"Stock Exchange

foreign

important.

don't

before the Los Angeles Chamber
November

jn'i

I have

export market is as
good in securing that objective as
one

iiUtM

■

paid,'re¬

ports by themselves that built

St., members

of the New York Stock Exchange,
announce

that

Clearly

Charles

attention

Y;:!
Y- V-V Bell;Teletype NY l:*89tYMV,

North¬

Westerners to the re¬
of thesq great industrial

here

eral, about the
importance of foreign trade in our
■economy;' I;u cannot
agree
with
those who think foreign trade is

NEWARK, N. J—Cohu & Tor¬
rey,

some;

plants

this group, or

■

higher.!; Pacific

tention

argue.with...

merly | | & ifch If Sluing; department
■

extent of 43%' of the crop.

with

members of the New York Stock

far

run

;Ass>tLr>

New YorkS,N.

Wall Street

•

X, Security, Dealers

70% export, and prunes from here
in California went abroad to the

Joseph Farol

In-,

with

o u

and

relations

of this' memq^n- has become associated with: them;
? dvim may be " had from
the, firm .In the past Mr. CeaSb vvds with
(Upon request,
fi■,'
■jBufr & Co.
-y••
- ;
Ohio,

■

Great Britain Is Our Best Customer and Unless Aid Is

great

Robt. Cease N6w With

common

Normal

Development.

Stoker for Post-War

| Standard

(Special to The Financial Chronicle)

-ATLANTA,

July, 19, 1943.

Restoration

DIgby 4-7IMI0

Joseph Faroll & i': To. b e g i n
with I hardly
tion,.stated, that from May, 1937,l! Co., 29 Broadway, New' York City, j
lion •4Wi^teroker-dealer

History.

Resort to "State

tration of Charles

postponed until- Nov. 26 by 4hc
Securities and Exchange Commis¬

•

Sees Need to Assist War-torn European Nations
Particularly Urges That We Aid Great
Britain in Financing Operations in the Period of Restoration Because

James W. Bounds Is

dissolved

A. Massie, doing
business as D. J, McMillep & Co.,
a k>le proprietorship of 32 Broad
way:,, .New York
City, has been

in Economic Rehabilitation and

Bounds,

Registration Postponed

Post-war

national Commercial Relations the Most Difficult Business Problem in
the World's

number is Hanover 2-7793.

Bounds
i

Members new,York Stock Exchange

Official

among

•

I..,

Gude, Winmill & Co.

Director, Wartime Economic Affairs, Dept. of State

Government

and

Kobbe, Gearhart & Co.
Mr.
Searight's new telephone

partment for the New York office
Frank

•

de¬

tractions

much

that,

went

way, to get them. The search
(Continued on page 2250)

•

"■JiOHcT' W

-hiY

■

1-2123
'

-i;

J? W

-V, 1'' :V

,,*•

Thursday/ No vemberi 23;; 1944 >
2246

investment

Long; established

Bond Trader Wanted

well

Our clients who are

Iqiown'toni;bfokefs

:the;New Yprk Stock '■ A
Outstanding bond/man a? manager of , ;•,/

Exchange seek the services'of an

6% & 7% Preferreds

—

Sold

department.'An Interesting and, remunerative proposi- ■A.
applicant who J^an qualify. Apply in strict conby letter only. -The present staff is aware of this advertisement, y,,

fidencej

Quoted

—

■

Paine, Webber, Jackson & Curtis

LAW, INC.

.' "
k; A

A. A
NeW York 6, N. Y.

Adk'rUsing v A
.vAaAa •AA':A-<

Cedar Street

131

A/A.

for

A ■••>/."'•':

■

interview. Our organiza¬

■.

o,n Nov. 13,
esting talk:
The

'
.
V.*
'
business in Brooklyn is nearly 100 years old, and the
were
lighted nearly a century ago have .never been

gas

that

fires

Brooklyn Union Gas Co. ad¬
Society, of Security Analysts

largely sumrfiarized from his inter¬

and the following- is

4t>-

extinguished
for

—except
local

advent of electricity

disappeared, and the in¬
dustry was only saved by transi¬
tion to a cooking, load.- More re¬
cently large increases in gas sales
have occurred for industrial pur¬
largely

service has

continu¬

during all
that time. The
ous

for water heating and
refrigeration.
House heating"
poses,

mp a ny

nearly

serves

also relatively new,

3,000,000 peo¬
ple, supplying
of

thousands of in¬
stallations sold for heating in the
coal.

'Well as two in
Queens.
The

over

Clifford

Paige

Gas is produced in
the Citizens Works

making water gas, and the

Green-

point Works producing both watjer
gas and coke-oven gas; the latter
is one of the most modern plants
the

coal

are

country.
used as

oil

Coke,
raw

been not
company's

have

place to be heated is

all-time high.

plants,

rejections

1%, because the

engineers* and salesmen recom¬
mend gas-heating only where the

meters now in

service, over
732,000, is an
two

Out of the

past,

number

but the recent

and

materials.

1 ie

v e

reasonably'

results are
advantageous.

where

and

insulated

•

staff has
built up a reputation for relia¬
bility.'. :■
/
■ '; 'A;'Regarding industrial sales, the
company's research men think
Hence,

the

company's
.

that

after the end of
sales may increase

five

years

produces coke as a the war gas
by-product from coal-gas manu¬ from about 26,500,000,000 cubic
facture, a portion being used by feet per annum to around 30,000,the
company
and the, balance 000,000, which at present rates
increased reve¬
(about 330,000 tons a year) being would produce
sold.
The company uses about nues of about $2,000,000 (present
The

company

350,000 tons of coal and
gallons of oil a year.
The

40,000,000

revenues

are

around $25,500,000).

gain would depend largely
on the prices of competing
fuels.
The company is continuously en¬
This

question of the feasibility

formed

have

"In¬

securities,

the-counter

real estate bonds and

whole mort¬

nounced

Some

New York City.

tute

Murray Barysh Back From
Southern Business Trip
;
&

Ernst

New

York

New

the
Exchange and

Stock

arid/Trust- Co.

—:—

announce

mmm

Booms &

this field,

&« Co.-,

philosophy

Copies of this inter-

of'i rit

business chart,
be had upon re¬

are

promised

the

for

post-war period, however. One is
an arrangement for the operation
of

laundry

with

vide

which is

the

greatest, single

housewife since the oven temper¬

Another inven¬

regulator.

ature

heating

edge operating teletype.

ex¬

airnatural gas would
better than sending out natural conditioning equipment for homes.
Because Brooklyn is so largely a

factured
be

refrigera¬

and

and manage¬

It is directed to executives,

plication ~of
internal auditing.
Auditing techniques, relation of
internal auditing to management

is out

fur¬
of operation, by. clos¬
when

public; accounting, the
viewpoint of the Securities and

and v to

Exchange

Commission,

audi ting's

ternal

and in¬
post¬
fully cov¬
and

war

opportunities, are

war

ered."';---"J .'-A

WANTED

J;
;

straight.

Portland Electric Power 6s 1950
Crescent Public Service 6s 1954

Associated Gas & Electric Corp.
Lincoln Building Corp.

debs.

1963

advertising:
All Its

Plans

Branches

Prepared—Conference Invited

Albert Frank

Guenther Law

Incorporated

29
i*

BROADWAY,
'

Direct

NEW YORK 6, N. Y.

Wire

Boston

Chicago Philadelphia San

Francisco

Ward & Co., 120 Broadway,

,'V.r!");»

!'i"!!I!'M!IT:irttl!:t*:!,!Hi,l,||fl!:'*,i;!!'!!l!'!I':,'!:!:n!!'!I!r Mli

Drawing

account f

against commission.

Chronicle

J 5

Spruce

St.,

New

have prepared- circu¬
lars; on several situations, which
Currently offer attractive possi¬
bilities,' the firm believes. Copies
of; these circulars, on the follow¬
ing issues, iriay be had from

request:

& Co. .upon

•.

;

Ward

Trader Available
Desires

Majestic Ra-'
Corp.; Eleetrolux;

member/

Curb

Box

Bird

Motors;' Scoville Mfg.;

Sons;

Cons. Cement "A";

Riley, Stoker; Alabama

Mills, Inc.;

American Hardware, and

all

old

with

familiar

Thoroughly

with

dio; Magna vox

over-the-counter,

established
house.

and

Exchange

Stock

small

Light $2 preferred;

Brockway

connection with

new

Mont:■; Laboratories
"A";
Merchants Distilling; General In¬
>

markets.

unlisted

The /Commercial

N 23,

Financial

Chronicle,

Spruce

Street, New York 8,

N. Y.

' "f

■

H. & B.

American Machine.

Quality Cutlery

ho:

SINCE 1889

Headquarters For? f

Sextoblade Razors and

Available for developing "NEW

BUSINESS."
good

-Cutlery Repair¬

ing of Every

Description.

known.

listed

Profit

138 Fulton St.

45 Nassau St.

RE. 2-9192

quest.

ideas

Has

connections.

and

well

in both
securities.
arrangement

Experienced

and

unlisted

sharing

agreeable.

WECK CUTLERY, Inc.
CO. 7-1176

Chicago

York City,

New York 6, N.Y.

Telephone COrtlandt 7^0,60.

'•

■-

Attractive Situations

Blades.4

131 Cedar Street

Gilbert J. Postley & Co.

;

•

preferably one with j
;

rter firm,

j clientele.

[

.•

By aggressive over-the-coun-

25
,

and salaries approximate
$8,500,000. The company has nearf
ly 800 former employees - in the strument;*. Great American Indus¬
armed forces, and those who .wish tries;; Massachusetts ; Power
&
wages

Box

A! Du

to return to the company will be
A major considera¬
(with
tion is whether or not the author¬ city of apartment houses
reemployed. All employees taken
home developments largely in the
ities would
be willing to have
011 during the war have been on
cheaper class) the prospects for
such a wide national use of nat¬
ural gas on the theory that to installing expensive equipment of a temporary basis, and the sales
extend and expand its use might the. Servel type may npt offer a n d
construction
departments
possibilities for increased
exhaust this natural resource pre¬ great
should absorb a good part of any
gas sales.
mature! y/*
Several
other
interesting in- post-war surplus.
In
the early days of the gas

gas

St., N. Y.

accountants, auditors, and others
concerned with the practical ap¬

will

which

installations

tor, has been experimenting
tensively with
year-round

Chronicle

aminformative, stimulating expo¬

(

oped the Eleetrolux gas

G 11

Spruce

Box

Brooklyn
is

The

Good

and opportunities.

pay

Company, the book

clamper control 011 house-

cut down heat losses
nace

Auditor,

Union Gas

ment.

the

addition to the convenience of

tion is

e r n a

dustrial organization

perhaps

eral

Knowl¬

house.

the-counter

simple profession which has now adapted
itself to play a vital part in in¬

probably can be used with
any range and
will pro¬

almost

Lauckner

drier in connection, sition of modern trends in an old

gas range,

that it

Alan

important business aid.
Edited by Charles J. Fue, Gen¬

quest from A. W. Smith & Co.

established over-

Wanted by

auditing, and graphically explains
the functions of this increasingly

the long-range

ventions

Assistant Trader

enlighten- •
ingintroduc-'
lion
to
the;
an

"Business Booms and Depressions

esting chart may

tins-

volume; gives

Inc., Til
Devonshire St., Boston 9, Mass
are distributing the *1945 edition
Since 1775."

5-4094.

authorities-in

—-

Depressions

A.. W,- Smith-

Salary.

Telephone

■

that of " New. York;
Murray Barysh has returned to A;, symposjum
his desk'from a Southern business b£.papers and
addresses"., b y
trip.
WA
exchanges,

other

dealer.

ment

with

invest¬

growing

active,

of.

HanoverBank

City,* members of

business

stantial

and '.. As¬

sistant, VicePresident

experience; oppor¬

tunity oLdeyeloping sub¬

120 ' Broadway, theyCehtrat

C<?.,r

York

TRADER

by;

Offices are at 135 Broad-; Alaii Lauck-.
AA/Aa//A her,'-President
ofythc' Insti-

gages.

way,;

■

ably^ here, as elsewhere, it would
be found that a mixture of manu¬

York 6, N.Y.

BOND

and
specialize Practice",; by The Institute of In¬
ing in title' company certificates;: terna) Auditors, has just been an¬
Co.

lyn

131 Cedar St., New

Announces New Book

successors

ing the flue to the chimney.
-.
natural gas into Brook¬
gaged
in research to improve
Regarding the company's finan¬
often raised,
Mr. Paige
operating methods, cheapen the cial position, the recent bond re¬
stated:
"We would have to buy
cost
of
gas,
and develop new funding operations have improved
the gas at a low enough rate to
chemical uses for coal-tar
and the set-up and facilitated resump¬
write down our existing equip¬
other by-products.
tion of dividends on the common
ment, besides we would have to
Extensive gas research is also stock.
The future trend of the
"keep this equipment as standby
"until there was more assurance of being conducted by the American company's earning power/is rdifr
continuity
of supply than we Gas Association, the Illinois Insti¬ ficult to predict. While the-'worst
would dare assume on the basis tute of Technology, and by mak¬ of the: fuel shortage appears .to
be over,
it remains possible* of
of
one
pipeline furnishing our ers of gas appliances. One of the
efntire
needs.
Our
distribution outstanding developments of re¬ course that fuel prices may ' rise
cent years has been the C/P (Cer¬ in future;*
The company's coal
system,
we
believe, would? be
tified Performance) range.
The bill is around $5,000,000 a ryear;
quite satisfactory. Our appliances
costs
about
Company, which devel¬ oil
$2,500,000,;• and
Would have to be adjusted. Prob¬ Servel

of bringing

,A.'a'A.;

Law, Inc.

Lauckner

to Godfrey; & A Publication .of a new book,
The firm will deaf in .over- ternal Auditing—Philosophy

Co.,

equipment has of course been due
largely to shortages of oil 7and

i n

wards
Brooklyn,

for
is

demand for house-heating

heavy

the

used almost en¬

was

for lighting, but with the
this business

tirely

inter¬

ruptions, the
company's
been

business

Albert Frank-Guenther

Michael J.
Dee-Willen

Martin L. Levy and
Willen

President .Clifford E. Paige of the
dressed the members of the New York

Formed in

Brooklyn Union Gas

Agents:

Advertising

Co. Is

Securities

our

advertisement.

Desk

this

has been, advised, of
Address

tion

ESTABLISHED 1879

■

write to arrange

leads. Please

Ay
Address .]PT\:in Caret of
ALBERT ERANK- GUENTHER

•
•

Public Utility j

de¬

for
two
salesmen
With proven records. We main¬
tain an unlisted trading depart¬
ment and will co-operate by
furnishing ideas and valuable
partment

their listed bond

tion is available to the

Bought

have an

York Stock Exchange,

opening in their retail sales

(Del.)

Northern States Power

New

the

firm,. Members

Mill

Box

Interview upon re¬
S9> Commercial &

Financial Chronicle, 25 Spruce
St., New York 7, N. Y.

;Volume .160

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4336

Seaboard Air Line Ry. Co,
/

..New Securities

for Liberty

Arden Farms

Common & Preferred

77 77' "

Quoted

BUY 6th WAR LOAN BONDS!

Arbitrage Circular upon Request

A"»'«7"':

When Issued

—

'./7'.,,/"'7;'i;.7;Bought — Sold
■.

2247

Empire & Bay State

SUTRO BROS. & CO.
'Members New York Stock Exchange :

/ J'

;

;V:-;

/through the participation of publie representatives to t bring the
■

consumers' voice to the conference

management."

of labor and

table

Continuing, Mr. Watt said: "We
the1 problem of establishing
basis " for
industrial relations

lace
/

■

7 will

/"which

America to
a national

enable

establish and maintain

income of at least 150 billion dol;

Jars. "That would

mean

degree

of industrial production and dis¬
tribution which will afford jobs

'Tor

"goods

want

services

and
them.

"need

•

who

all

work,

and

for, all' who

77/7'

•

^ ■' "Of

course, it is not possible in
a' free system such as ours, to pro¬
vide : completely; full-time
em¬
ployment for all who seek work.
Some in-between unemployment'

and

One of the oldest of the railroad insolvencies took

merce

Commission examiner issued

management can help to assure a .Railway.
fair

for

deal

Bell Teletype—NY 1-310

returning /veterans

and*

Nearly 12

years ago

than four

mechanism

democratic

laboh

teiitatiVe-proposal before

;

petition.- I believe collective bargaining and good labor-managerelations

.ment

will

neces¬

sary to do this job for the welfare
of decent business after the war
it is for labor.

"To

•

/ /;/./*•

preserve

our

consumer

.buying power, I suggest that there
should be an adjustment in wage
?rates to sustain the; purchasing
;

the American worker.
productivity of labor
has increased enough to justify an
'increase during the reconversion
period
We must also face the
problem of jobs for all who want
power

-I believe the

■

work for wages.

"In the typical American com'munity there will be one service

^
i

x'man

returning for

every

four

five workers employed. There will

/ be

'.or

one war

worker for every four

five now-employed

who will

get back to producing consumers'

-goods
war.

have
.

•

every
every

instead
Jobs

of instruments of
job changes will

found" for two

out of

four or five wage'earners in
community.
; '•'•:/
/ /
.

Com/

final

(CoMmission -plan will be filed,
management cooperation if arid further hearings will have to
reemployment rights of vet-x
be; held on the final plan before
erans are to be more thanprom/
the / final modified plan is pre¬
ises.
••',7/
f f,r •'
sented/to the court.
Thus, at
"Instead of the complicated le-best,/ many months must elapse
gal procedures in the G-I Bill, of before the proceedings will even
Rights/ and the almost • daily, in¬ move /from the ICC to the Disterpretations : by-i theboys v,who;. tridt' Court.
Nevertheless, the
know all the /prices Zand. few- of
proposal 7 of the examiner may
the
values, Jabor - management- be .accepted
as
a
constructive
machinery would: be accessible;
sign * and at least it is possible
and speedy, with,, simple/.proqeto formulate some opinion as to
,

and

the

dures which would be. understood

values

ultimate

the

and

respec¬

by the ordinary
We

worker.

and

the

preferred dividends will

cumulative up to three years!
In appraising the potentialities

MEMBERS
New

York

Stock

Exchange

and

other

leading Security and Commodity Exchs.

120 Broadway, New York 5, N.

of the
sible

reported

LaSalle St.,

Chicago 4, III.

at face value the

earnings

thq

during the depression
property has suf-i
fered severely from undermainteproperties

The

decade.

So.

securities it is .impos-.

new

actual

231

Fast Communications
To

Germany, Japan

but it is expected that this
A "fast communication service^
condition will be corrected by the to
Japan and Germany has been
extensive five-year rehabilitation established
by R. H. Johnson &
program instituted in 1943.
Even Co., 64 Wall Street, New York
with the inefficiency inherent in
City, at the entrance of 68 Wall
undermaintained properties, how¬ Street. In a booth
operated by the
ever, the new fixed requirements staff of the firm, are displayed
would have been earned
in all
Army and Navy shells upon which
years
of the depression except one who purchases war bonds or
1932 and 1938.
With properties
stamps may write an appropriate
restored
there
should be
little
message to the Nazis or the Nip¬
question as to coverage of the ponese 011 a sticker which is then
proposed new obligatory require¬ attached to a shell. The message
ments even under depression con¬ will be- delivered with the utmost,
nance,

ditions.

speed by the Army or Navy.

;

est

cycles
of
depend largely on
expense
savings
and ■ increased
operatingf. efficiency
resulting
during

from

normal

will

business

the

rehabilitation

program

Baltimore lomf Gtuh ft

ability to avert a post-wag quired by Supreme Court deci¬
sions in other Section 77 proceed¬
boom followed by a disastrous-de-!
pression..
-/;/'////• ings/ / There will also be two
series
of
5%
preferred
stock,
"We must share the

our

now

were

under

Hold Annual Meeting

way.

reported,

earnings

average

ing

which

power,

production

the

keep

will

turn
power

It may be the toughest

operation.

The junior
pro¬ contingent interest charges.
Fixed stocks, however, will apparently bonds
charges/under the plan will be have worthwhile earning power tive.
held-'to $639,000, compared with only under boom conditions.
Under present conditions, with
old fixed charges of close to $3,prevailing
speculative en-(
200,000. f Contingent interest and the
sinking funds will absorb $834,000, thusiasm for even the stocks of
bringing/ total charges ahead of reorganization rails, the new first
;
the stocks to $1,473,000.
This is mortgage bonds might sell around
without
considering the capital 90, the income 4/2s around 45 and
fund which should be covered by 55,
respectively, the preferreds
the'new charge of depreciation of around 25 and 30, and the combeen

posal

cut

from

the

original

trustees.

refunding
and
general
definitely unattrac¬

look

„

job
is

the

have ever faced/because if

job

freeing

of enterprise to
of

activity
the

people;

who

prise,'!;-" ;

./;•'

spirit

and yet remaining;

—

under

the

the highest level

self-control
are
■•

'free

the

to Z enter¬

'■;' ;//;■-■.", ■/'/■•'

" .;><1

Beech Creek
Railroad

4% Stock ($50 par)

Victory is Still to be Won

We ivish to

Back the 6th War Loan

(Cessee New York Central R.R.)

purchase, ALL

SEABOARD AIR LINE
Underlying Bonds & Certificates

Mclaughlin, baird & reuss

Adams & Peck

Members New York Stock Exchange
ONE WALL STREET
TEL.

HANOVER

2-1355

■

'-■
)

;

Coverage of income bond inter¬

BALTIMORE, MD.—The annua)
business meeting and dinner, of
income
available for contingent charges the Bond Club of Baltimore will
be held
on
December 8 at the
for
the
10
years
1932-1941
amounted to just about $700,000. Merchants Club, it is announced.
resppnsibilg made
James B. Downing, Baumgartup
of $940,049 series "A" This would have to be reduced
ity, or be prepared to let Uncle
and $16,061,720 series "B."
There by roadway depreciation which is lier & Co., is Chairman of the
Sam take over the job. If we let
;
will be 180,171 shares of common a new accounting charge—road¬ committee oil arrangements.
Uncle Sam do it, he will not be
Charles
II.
Pinkerton,
Vicestock/
The earlier trustees' plan way depreciation last year
our
uncle much longer, or even
President of the Club, is serving
had contemplated only one class amounted
to
$385,380.
Income
our cousin. He will then be known
as acting head as C. T. Williams,
of income bonds and one class of bond
interest
will
amount
to
as
Comrade Sammy or Fuehrer,
the President, is on duty with the
preferred stock.
/
/
$720,000. To cover this contingent
United States Navy.
Sam.
The proposed capitalization, interest,; as well as the new de¬
;■/;./~7!/7:. S
"That is why it is time for us
with/five classes of bonds
(in¬ preciation/the road would have
mon around
10.
Oil the basis of
cluding/: equipments) and three to shave $405,380 off expenses on
to get together and work out in
prices the first 5s,
1945,
classes of stocks appears unduly the average for the 1932-1941 pe¬ such
our own nation a system of demo-:
would have an indicated value of
This
would
involve
a
complicated for a road of this riod.
cratic controls which will-., keep
reduction in the operating ratio 108%, the consolidated 5s,
1945,
size, and in this respect may be
around
57% and the r§funding
our tremendous machinery under
changed in the final Commission of only about three points, which
and general 5s,
1959, around S.
control. We must plan so that our1
plan.
Otherwise, the capitaliza¬ should be feasible. In reasonably
tion
appears
reasonable.
The prosperous periods, therefore, the Considering the time element, the
huge dynamo will generate pro¬
consolidated 5s, 1945, do not look
aggregate of preferred stocks and company should have little diffi¬
duction power to sustain purchas-;
the amount of common stock have culty in supporting the proposed particularly attractive, while the

depends/ upon

-and services from cut-throat com-

Preferred

decent

"Listed New York Curb Exchange

proposal for Central of Georgia

jobs at which they;can earn' bankruptcy under Section 77-. The time remaining before actual
and constantly- improv"-;
.consummation of reorganization^
ing standard of living. It will take must/still be measured in years. road property.
Preferred divi¬
more than* a G-I Bill of Rights to:
will
require
$850,000
a
Hearings must be held on this dends
do that. We will need the/ simple*
year.
The income bond interest
a

•

We have had con¬
siderable inflation. If we are to
.carry our present debt burden, we
must protect the values of goods

i
step forward

with

"price values.

Scranton-Spring

the road went into equity receivership
the proceedings were transferred to

■

ago

years

v^terap and/war tive
positions of the various liens.
hope / it is not r,tod///In":; substance, the examiner's
late to avoid the complicated: and
proposal / differs little from the
/the peak demand for labor during
perhaps lengthy legal procedures;
capitalization contemplated in an
/this War, nearly a million people and
expensive dealings with law-! fearlier
plan filed by the road's
were
registered as' unemployed
yers which may result in discour¬
'and seeking work. That is why a
trustees/early
this year.
Ex¬
aging veterans from efforts to ob-;
clusive of equipments, there will
sound system of social insurance
tain their rights.
■
/ / T/ ' ,/
.be
-is needed to
$13,987,219 of fixed interest
provide for those
"It is my sincere belief that the,
debt,' represented by $193,452 di,who cannot find work. - But it fundamental
long-range interests
visionals and $13,793,767 of mew
does mean that we must utilize
of labor and industry are parallel
the
services
of
all
those now
1st; ,4s7/ There wall be two series
and mutually, dependent. : Labor
of income 4V2S in the aggregate
working for war, whether in the needs
capital and capital .' needs;
amount of $15,998,413, of which
armed services or the factory, and
labor, and free democratic Amer-;.
who are available after the war
$2,821,000 will be series "A." This
ica needs both. Together we must
for employment.
\\.j•
■■% - //f help our system keep the;wheels' split is; apparently designed. ,to
facilitate
recognition / of
strict
/
"I
believe
this
involves the moving and the gears meshed;
priority of the old liens as re¬
-'maintenance of wage rates and Our whole future

/';*is necessary if we aim to preserve
our
full freedoms; ' Even during

towards ultimate reorganization last week when an Interstate

confident that labor and

(

//7 Railroad Securities

(Continued from page 2243)
standards

basic

New York 6

Broadway

Brook Water Service

•nance

Member t h ew York Stock Exchange

.TetepAone—Dlgby 4-4933

Post-War

■fl /;

?./■/>

7->

;

Telephone REctor 2-7340

Telegraph Co.

pflugfelder, bampton & rust
;

YORK 5, N. Y.

120 BROADWAY, NEW
■

NEW YORK 5
TELETYPE

1-1310

1. h. rothchild &
Member

National

specialists in rails

co.

Association

of Securities Dealers, Inc.

wall

street

HAnover 2-9072

<
y. c.

tele. NY 1-1293

63 Wall Street,

New York 5

BOwling Green 9-8120
Boston

Philadelphia

Tele. NY 1-724
Hartford

Thursday, November 23, 1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

2248

securities.

Other assets are guar¬

anteed

the Government

SPECIALISTS

proposals are before us for a guar¬
antee of commercial loans and for

Incorporated

•

NY 1-953

Sett Teletype

Members

New

York Security Dealers

Broad Street, New York 4

would

This

socialized
opposite
direction from democracy and en

well

the * road

credit.

HAnover 2-2100

dulls initiative.

—

SPECIALISTS

Real Estate Securities
—

ESTATE

the long term
usually, unfortunate.
I call to witness simply the loss
economic

Real Estate Financing
The

FIRST LA SALLE CO.

Insurance Law of the State

Chicago 3, III.

So. La Salle St.,

Mortgage Corporation is incorporated under the
of New York. It is an outstanding mort¬

Lawyers

production will be de¬

termined by political rather than
results

production.

price and

Corporation in Excellent Position for Post-War
Quotations in All Issues

the

If the Gov¬
the price,
it will tell the farmer what and
.how much he may plant and how
much he may harvest. Since this

SECURITIES
Accurate

exactly

ernment is to guarantee

Stock Attractive

reasons,

ably managed, its business primarily being the financ¬ kets for export cotton., :.
So today the farmer is moving
Tel. Central 4424
Tele. CG 660
ing of building loans and the placing of mortgages which in turn
are
resold to banks and institutions.
Through two wholly owned rapidly away from private enter¬
subsidiary companies they perform management services of real prise into a controlled economy.
Farmer and
banker are in the
2state and place and maintain in-<^shares) reserved for sale to of¬ same boat. What are we going to
^urance to cover properties serv¬
ficers and employees at not less do about it? My belief is that we
iced.
At the present time, ap¬
than $5.50 per shafe.
The option need to sit down together and do
proximately $100 million of real
estate is being serviced.
It is a for stockholders of Lawyers Mort¬ some straight, and hard thinking
Blair & Co., Inc., 44 Wall Street,
about this question to see what we
conceded fact that after the war gage Company to acquire shares
New
York
City,
announce
the
many
new
buildings
will be has expired.: As.of Dec. 31, 1943, really want, and we need to take
election of Jonas C. Andersen as
a long range point of view rather
erected. To the best of our knowl¬ a total of 409,562 shares were out¬
a Vice-President,^
than the short range point of view
edge, this is one of the few cor¬ standing and 430,438 shares re¬
gage company,

Andersen Is V.-P. of

Blair & Co., Inc.

porations

Harold

With Georgeson

formerly

Manager of the
Syndicate and
Dealers
Department
of Lazard

the-past

for

Co.

Freres

ten

has become associated with
Georgeson & Co., 52 Wall Street,

years,

Trundle Program for
by Henry

Saxton & Co.,

York City,
the
of investment for a
$100,000, has again

Inc., 70 Pine St., New

Barron's

best program

with

widow

contest for

1939

achieved top rank

portfolio

suggested

shown

comes

that

back to the

corporation so

revolving fund.is

The
was

stock

78%

analysis of the Dec. 31, 1943,
sheet shows cash assets

balance

mortgages
informed, could be

$1,300,000

(including

we are

into

converted

cash

within

issued under a

corporation days) of about $2,330,000 and lia¬
plan of reor¬ bilities of about $37,000. The net

with

fooling

use

restore

back and
individualistic enter¬

the

prise of earlier
amount

days.

government

tion is recognized as

desirable by

agriculture

today

about the need for some

plans un¬

government control for soil
Similarly, in bank¬

der

view

of the asset value

ing Federal insurance of
is

Coca-Cola

•

Francisco
—»

Santa Barbara

—.

Oakland

—

Sacramento

Fresno

Tomorrow's Markets

Walter Whyte

Says
brought

break

week's

Last

points. Long
term trend unbroken but add i t i o n a 1
confirmation of
stocks to support

resumption neces¬
before specific advice is
given.

strength
sary

By WALTER WHYTE
column

week's

last

When

typed the market gave

was

signals which spelled

certain

Unfortunately these

danger.

wouldn't materialize un¬

saw

til

column

the

hands

and you

in your

was

could act ac¬

cordingly.

deposits

actually happened
began fading

What
was

that stocks

Tuesday afternoon and by
Wednesday < most
of them
were in full retreat.
Yet des¬

directors' qualifying

(less

pite the fact that stocks were
pretty well down by the time
as
to
you got to read last week's
agriculture, price fixing; in bank¬
column, I wouldn't h a v e
ing, the guarantee of commercial
loans, to give two illustrations.
changed the advice one bit. '
serious question
their long term results: in

before us open to

Farmer and Banker in

America's

With

respect

questions of
suggestions;

these sorts I have two

(Continued from page 2244)
knows

that

the

last

offer

according

San

Monterey

now

per

attractive or totalitarian society means stag¬ trols, and certain types of ration-!
circulars nation and means that the indi¬ ing will continue at least for a
time; National and international
issued by Hoit, Rose & Tr'oster, 74 vidual becomes just a cog in! a
controls over the prices tand pro¬
Trinity Place, N. Y. City.
Copies machine and eventually will lose
duction of some basic commodities
of these circulars may be had real political freedom as well.
are
planned. We are/, pretty* well
Second only to winning the war
from the firm upon request.
committed to the control .of in¬
the greatest problem of the world
terest rates at low ley^ls., .Rises
today is what kind of govern¬
Norman Barwise Rejoins
ments
we
shall have, .— those in interest rates used toi be one of
which move: in the direction of the natural checks to over-expan¬
Merrill Lynch In Denver
sion of credit.
If rates; are fixed
socialism and communism or those
(Special tp The Financial Chronicle)
which move in the direction of by government, and that seems
ama

Teletype NY 1-928

Private Wire to Principal Offices

conservation.

First, that we try to do our own
jobs so well that there will be no
serious pressure to bring govern¬
ment further into the picture.

analysis post-war problems will be com$9,711.
the progress of a country depends plex and we are already commit¬
Second, that we do a lot of
ted in advance to many controls.
on
freedom of the individual to
Both parties in the recent election thinking about the long term con¬
Attractive Situations
start new undertakings, to plow
sequences before we request or
Common
and
6%
cumulative new fields, to plant new crops, and have committed themselves to a
floor
under
agricultural prices- acquiesce in government interfer¬
convertible
preferred
of
the to reap the rewards. He knows
Certain of the inflation price con¬ ence. For we can't have our cake
American Bantam Car and Pan-r that in the long run a regimented
situations

New York 5. N. Y.

COrtlandt 7-4150

signals really became evident
Nov.
13. Still I
A certain Monday,
participa¬ hoped that the dangers I fore¬

There is little

almost everybody.

argument

our¬

turn the hands

generally accepted and the
insurance of mortgages under the
share and the future possibilities
FHA plan; though both of these
gage Company,' 400,000 shares of¬ of this company, the capital stock
programs have yet to be tested
fered to stockholders of Lawyers now
quoted 4-4Vz appears under- in the fire of real experience in
Mortgage Company at $5.50 per
priced and worthy of consider¬ time of trouble.
share and the remaining 40,000
But there are other proposals
ation.
'
>y
•;
In

has

of
market
1944, of nearly
income yield of

■

we can

of the clock all the way

y.:

this

of Aug. 25,

r.v

increase

value

■

profit.

can

available which,

construction.

for

arise.

of immediate

There is
provide > additional;
capital should occasion selves that

working

in principal ap¬

preciation and annual income, in
a
tabulation in the Nov. 6 issue
of "Barron's Weekly."
Mr. Trun¬
dle's

authorized, 400,000 shares distrib¬
uted to creditors of Lawyers Mort¬

"Widow" Again Tops
The program offered

con¬

ganization of Lawyers Mortgage cash assets of about $2,293,000 are
Company.
At that time 840,000 equal to approximately $5.60 per
shares of $5.00 par value
v
'
were share.. •

New York City.

C. Trundle of G. A.

make

can

equipped to handle such
financing. Upon completion of the
buildings the proceeds from the
sale of the then-existing mortgage
ization

& Co.

MacDougall,

Harold

which

struction loans and has an organ¬

MacDougall Is

These unissued

mained unissued.

.{Azwcihte)

are

large part of America's mar¬

York Curb Exchange

Chicago Board of Trade

fix. Guaranteed farm prices

trol over

Lawyers Mortgage Corporation's Capital
REAL

New York Stock Exchange

inevitably mean government con¬

JOHN WEST

MIDWEST

CHICAGO and

Members

New

14 Wall Street

farmer

The
same

Schwabacher & Co.

the

moves

,;:,v

It is a kind opiate that

terprise.

Exchanges

easy

slot-machine.

glorified

Association

•

Executed on

Pacific Coast

the risk from banking and

for each of us
to sit back and become a kind of
it

Seligman, Lubetkin & Co.

Dlgby 4-4950

EXCHANGE Pl.,N Y.

Orders

attractive because they

are

remove

York Stock Exchange
Memben New York Curb Exchange

guaranteed

forms

These

Member* New

Securities

guarantee of veterans' loans.

1929

credit

SHASKAN & CO.

:Pacific Coast

insurance

Real Estate Securities

SECURITIES

such
loans-

mortgages^ Our deposits
guaranteed by a Government
corporation. Still more

are

Since

V and VT loans, CCC

are

and FHA

REAL ESTATE

and

eat

too.

profits from the use of

can't

reap

taxpayers!

government power with¬
penalty of loss of freedom.

money or

out the

J;S

5J1

;

■

When markets indicate re¬

action

ing

they are seldom oblig¬

indicate the
Traders
hep to technical sig¬
fully aware of this

enough

distance, or the time.
who

are

nals

are

condition
around

storm will

and
see

seldom
how
or

bad

stay
the

how long it

will take before it blows over.

They grab what they can and
head for the nearest shelter.:'

Preferred Stock Guide

So much for what has hap¬
Inc., 70 Pine
City, have just pened. Now what; about the
issued their November "Preferred
future? !: 1
Stock Guide'! containing quota¬
; \ ,
: # i. i i" > *
V "
tions on preferred and common
Some time ago when I.orig¬
public utility stocks, and a brief
real
democracy.
We have been hard to avoid in view of the size
of the debt, there are likely to be analysis of the situation in pre¬
inally advised the buying-of
fighting totalitarian government
ferred stocks of Jersey Central
other controls such as the continu¬
certain stocks I wrote that-the
in Germany, in Italy, and in Ja¬
Power & Light Co. Copies of the
ance
of control over
consumer
market was still in its1 long
pan. That kind of government ex¬
"Guide" may be had from the firm
credit, and over security and other
ists in many other parts of the
term bull trend.
Last week
t•
We shall thus have in¬ upon request.
world. In the war period even the loans.
Also available for"t)ie, a's^mg^ are
we
saw
what amounted to
democracies have been compelled creased regimentation of credit.
Thus the fundamental problem memoranda on Black,HillsiPower
about a five point sell-off, but
to adopt totalitarian controls over
banker & Light Company,.tyhssppr*.Utili¬
prices and production, rents and which both farmer and
the trend is still up.
ties Company, and Standard ,'Stokface in the post-war period is the
*
-a
*
wages, profits and almost every
kind of government and country er, Inc.
-•
\l,
other aspect of human life?
The
I realize that sounds para¬
we want.
The danger is that both
problem is to what extent we
and
bankers
uncon¬
doxical. For if that is the way
shall continue this type of con¬ farmers
Seaboard Of Interest
trol and move further away from sciously and bv the force of cir¬
I feel, why advise liquida¬
Sutro Bros. & Co., 120 Broad¬
cumstances will be influenced to
democracy.
tion?
The
answer
can
be
accept the kind of government we way, New York City, members of
,

COL. —Norman

DENVER,

Merrill

Barwise ruhas

rejoined

Lynch,! .:Pierce,

Fenner, & Beane,

First National Bank

his

lowing

Building, fol¬

discharge

from

the

armed services.

Investment Merit
Brailsford &

Co.i/208 South La
Chicago,,ill., members
of the Chicago Stock Exchange,
have
prepared a comprehensive
study of the current situation in
Sane

St.,

Central

Public

Utility

Corpora-

1ioiV-Consolidated Electric & Gas
Co. system, in which they state
the
belief
that the investment

fully appreci¬
Copies of, the ^ analysis may

merit has not been

ated.
be

had

from

the

firrq{ upon

quest.

re¬

For the

whole

carry

thought to the
we shall be
moving when the war closes. The
give

direction

Street, New York

moment, of course, our

'objective

through and win the war, but we
must

G. A. Saxton & Co.,

sober

which

don't really want

the

New

York

Stock

Exchange,

prepared • an
interesting
siderable extent in the hands of arbitrage circular on Seaboard Air
the Government. More than half Line Railway Co! Copies may be
of his assets are in Government had from the fhm upon request.'
The banker is already to a con¬

have

found above,

When I think

reaction is coming I get out.
I don't like to take losses anyII

(Continued on page 2271)

Volume

THE COMMERCIAL & FINANCIAL

Number 4336

160

2249

CHRONICLE
advertisement

Sloan's Job Formula

■

That

Executive Holds

Motors

General

NOTE —From time to tim e, in this space,
there will appear an article which we hop?,

Must Be

will be of interest to

Government in Business, He Says, Means

Encouraged and Stimulated.
End of Free Enterprise,

Enterprise

Private

This is number

"The application of such a form¬
ula," he continued, "would inspire
confidence in the long pull posi¬

York

New

City/on Nov.
15,
on
"The
Importance of

tion

When this recorder learned that

It would ex¬

enterprise.

not

Corporation, had
just ordered special labels to be af¬
fixed to every bottle of our products

going to foreign markets, it both
intrigued and excited him. In the

possibilities

the

examining

jobs" and that
"catalyst for new reservoirs of job oppor¬
of a protective tunities resulting from the polit-,'
profit" was ical and economic develppmentf
essential
for of the war, Mr. Sloan remarked
'Most discussions relating to jot
full
employ¬
opportunities by implication as¬
ment in a free
sume
that a high proportion oi
economy.
"W e cannot total employment is in manufac¬

center of this

the

this

meet
Alfred P. Sloan, Jr.
:

MEMBERS

•

s a

adopting panaceas
of

use

lem

permanently
only within the structure of sound
economic policy. We should profit
by past experience. We must do
those things that will serve to en¬
courage and stimulate enterprise.
We

build

must

confidence

foundation

its

future opportu¬

nities. Men cannot plan

ahead with
confidence if uncertainty exists.
Business cannot plan ahead with
confidence if it is to be hamstrung

political

although
the

it
in

which,
lip service

leadership

may

cause

believes

pay
free

enterprise,

different

something

and

acts to prevent the system
Irom effectively working." Turning to the question of gov¬
ernment
competition
with free
enterprise in the production of
goods and services, Mr.
Sloan
.

maintained that "this would
a

direct conflict

ment and

mean

between govern¬

enterprise along a wide

front" and that subsidies and sim¬
ilar economic

policies would mark

beginning of the end of the
American enterprise system as we
"the

past."
alternative to government
it in the

have known

in business for the purpose

cre¬

ating job opportunities and an ex¬
panding economy, Mr. Sloan pre¬
sented
his
own
formula, which
contains

these

ponents: /
"First, a

three prime

com¬

policy

national

that

contemplates two objectives—one,
to create incentive and to re¬
establish the spirit of venture

making constructive effort worth

while; the other, to do all things
throughout the ramifications of
the whole economy that will serve
to
broaden
and
strengthen the

opportunity in which busi¬
operate.
'//."■
}
"Second, a business policy that
recognizes a responsibility far be¬
yond that within itself. One that
contemplates the, application of
economic statesmanship, one that
field of
ness

that

must

this

"If

national

field

leadership

recognizes the fundamental
fact that production is the source
of

all

economic

essential

progress

higher living

ards/ That America is

and is
stand¬

nation of

business and business people. That
those who accomplish more serve
the people best.

leadership that

will exert its influence and

tige toward
jectives. In
leadershio

pres¬

furthering such ob¬
the

business

bold,

area

aggressive and
imaginative not only in discharg¬
ing its duty to its individual in¬

jobs

of flux.

dis¬

constant

state

It is clear from this

rec¬

ord that manufacturing alone can
not

possibly supply all the addi¬
tional post-war jobs. Distribution,
transportation, construction, com¬
munication, banking and all the
service

trades

must

their share. It is

contribute

important, there¬

stimulate the estab¬
lishment of small enterprises not
only in manufacturing but in all
other lines of activity.
That we
encourage more people to become
employers. That we develop em¬
ployment opportunities wherever
useful services can be performed.
That we urge the doughboys com¬
ing home from war to seek such
opportunities."
fore, that

Holding that reconversion is not
"a .one-time

problem" but one
which, if not solved effectively
and 'realistically,
and promptly,
may result in a
long period of
unemployment on a large scale,
with lack of confidence in future

opportunities,
"From

ued:

Mr.

what

Sloan
I

have

contin¬
said

to these

particular potential reser¬
voirs of additional jobs post-war,
is

not

inferred that

our

capacity to produce and to employ
not

been

increased.

And in substantial degree.:

been

the

ment as civilians. The distribution
of

"Third, aggressive and imagin¬

that

were

cations, financing, public utilities
and the likd. And finally about 9%
were in the employ of the Govern¬

wise

10 million

tribution, transportation, communi¬

gives consid¬
eration in the policy phase of its
operations
to
its .relationships
with the economy as a whole. ; ./{
ative leadership in both areas.

in the services, such

were

the|;: Management of enterprise to
that

figure of 55 million

agriculture. A little less than 45%

has

One

war.

is
objective, it would
require about 8 million additional
civilian jobs post-war if our con¬
cept of high employment is to be
achieved. Only 24% of those em¬
ployed in 1940 or about 11 million
were
engaged in manufacturing,

the;Mere production, of goods and

jobs
of the

reasonable

About 23%

our

know-how

has

has.

Like¬
been

broadened by the engineering and

production experience of the war.

technological

Also,

Private Wires

Overseas Branch.

progress has
All makes pos¬

fact that

what has been

proofs of this.

United

the

States

America" label in fifteen foreign

glories

pective
world.

the

price that must be paid

the

losses

the

war.

languages, free of charge, to

any

American

pro¬

for
are

the

existed.

powerful than ever before
Industry is completely
converted. The length of the war
is

post-war

under emphasizing

are

capacity

Industrial

factor.

greatly expanded
But
discounting the necessity of hard
Thi
work. We are too little concerned there are potential dangers;
with the problems we face and forces leading to inflation canno
the dangers and uncertainties that be ignored. The transition perioc
exist, We must get down out of from war to peace is highly crit¬
the stratosphere.
We must face ical. There are many ocher un¬
has

certainties.

the facts."

his own
estimates of future
possibilities
and "what is likely to be post-war
Mr.

been

Sloan

picture
1
have presented is synthetic in its
as
compared with pre-war." "My origin. It is not based upon ar
conclusion," he said, "is that, on economic balance of consumptior
m assumption of
production.. «To. formulate
a high state of with
employment with all that objec¬ business policy upon such a set d:
demands

tive

its

for

accomplish¬

might obtain a gain of
perhaps 25% in our living stand¬
ards post-war over that of 1940,
As
a
matter
of
fact, such an
achievement would be real prog¬
ment,

post-war :

circumstances

would be far iron

business

field

The

realistic.

always be appraisedvfor its long-term as wel
as its short-term possibilities. Anc

opportunity

likewise

must

to whether the under¬

post-war lying factors are sound and likelj
net national income of about 100 to be permanent or synthetic oi
billions in terms of 1935-1939 dol¬ political in character.
ress.

lars

It would

represent

compared with 77 billion
of the same standard in

dollars

post-war national
income would be equivalent to 125
Such

1940.

expressed in 1943 dollars.
This would be higher than our
national
income in
1941, which
billions

by far the highest the country

was

enjoyed up to that time.
It
also represent less peace¬
time unemployment than we have

ever

"Such is the picture of

the econ¬
reconversion is com¬
pleted in the early years of th(
post-war period, as I visualize it
Now, and finally, what should the
management of American enter¬
after

omy

prise do? I believe there is both
an
opportunity and a responsibility."
"A;'

1929."

since

the national tax
Sloan observed that

criticizing

policy,

Mr.

"it

been

has

concerned too

much

with the

too

little with the

elim¬

business

"the

Sloan

Dr.

Elmer

•

Wil¬

Pont

du
Ne-

de
u

Company, has
awarded

been

Per-

1944

kin

re¬

Medal

the

maintained that

any local printer; In fact,
large label houses already

several

them in stock.

Mr. Harold I).
this

division

Frazee, chief of,

writer that all

shipments of Lend-

Lease material which
over

told this,

OWI,

are

going all

the world, also bear either a*

label or sign, showing the American

flag and the wording, "Made in the
United States of America". Here

something really worth shouting
about!.
And

certainly

the

idea

is long

overdue; Other nations have made
it

practice for

years

to distinc¬

tively trade-mark and label prod¬
ucts which they have exported.
We, the largest producing nation
in the

world, have lagged far be¬

hind in this field. It took the
to awaken

and the OWI to

our

war

opportunity

arouse us

to action.

We understand that this idea

will not be shelved when the

war

ma¬

and

products for the

re¬

shipped abroad by American

too much about the obvious,

May

humbly suggest to

American

industry,

package

crate

that

proudly bear this
label, "Made in the

forevermore,
standard

United States of America".;
And

may

.eyery

gle/article

dustry. Dr.
Bolton

his
in

leadership
the

philosophy of the management of
American enterprise. "This states¬

cere

synthesis

pose

p u im¬

synthetic

rubber

MAKES

For

Dr.

Elmer K. Bolton

developed
thjs

ejtbe].

accomplished in the expansion of
country or abroad, and for his di¬
customers" and "it must search
production and national income,
rection of nylon research,, ;
for progress in such areas as dis¬
reflecting as it has full employ¬
ment during the war, has far less tribution!: labor relations, organ¬
ization
and management tech¬ New York Analysts* 4o Hear
bearing than generally appreci¬
ated on what will be possible in nique. It must be directed to the
On Friday, Nov. 24, Frank Bigcreation of new and useful things.

belief that

THE

BEST

EVERYTHING!

sin¬

—AMERICA

the' first

general

product should
reflect by its'
quality our sin¬

was

for

cited

suggest

In¬

Chemical

every

American

Society

fair," though he upheld the prin¬
ciple of collective bargaining. He
stressed the importance of "eco¬
nomic statesmanship" as an essen¬
tial component in the operating

j
every

article shipped
a foreign country henceforth and
or

Section of the

garding the relationship of labor
and enterprise is manifestly un*

prices and purchasing power," but
he
added
"business must
have

using

be printed in any size de¬

can

will be

Bolton

the

policy

are

commercial shipments.;

sired, by

mington, Del., Chemical Director

encouraging

existing national

manufacturers. But don't let's talk

"
also

this label

Pioneer Honored

and em¬
ployment. What is needed is an
entirely different concept.
One
that will reconstruct the spirit of
Mr.

American manufacturers

terials

development

enterprise."

foreign coun¬
hundred

several

habilitation of devasted countries

•

relief

ination

Already

Synthetic Rubber

raising of money for re¬

lief and

tries.

ends, when millions of tons of

would

had

that ships to

carry

immediate

manufacturer

cessor

the

"It must be recognized that

gave

information,

Harold D. Frazee,
Promotion Division,
War

OF
7

address

Chief, Special
U, S. Office of

Information, Overseas, 250
St., New York 19,N.Y.

West 57th

MARK MERIT

•

the

peace.

cumstances

Entirely different cir¬
will

them

prevail.

It must find ways to

sell existing

comparisons are leading us
into a false security and a far too

products at lower prices."

optimistic
appraisal
of
future
probabilities. To avoid misunder¬
standing that might well lead to
an undesirable reaction, we should

Sloane in his

Such

shows,"

Vice-Consul

Irish

the

the
luncheon
meeting of
the New
Mr.
York Society of Security Analysts

said
concluding remarks,
"that after all wars there has fol¬
"History

gers,

Free

State,

will

address

of Schenley Distillers Corp.

FREE —Send

Nov.
publisher

Monday,

27,

postcard

letter to

Schenley Distillers Corp., 350Fifth Ave.,
Y. 1, N. Y. and you will receive
booklet containing reprints of earlier

N.
a

articles

Ireland.

W.
lowed a period of great industrial
terests but in doing so also, recog¬
of
"Quick
activity. The pattern varies only Williams,
nizing its broader responsibilities encourage a more realistic ap¬ in'magnitude and duration.
The Ifpozen Foods," will discuss the
in promoting progress and stabil¬ praisal of the future possibilities. economic forces prevailing on this subject of
frozen foods and its
are
ity in the economy as a whole."
We are overemphasizing the pros¬ occasion
far-reaching
and future. '

OWI Overseas will

furnish reproduction
"Made

manship," he asserted, "recognizes
significance of wage
sible greater opportunities for the
rates
as
affecting
both selling
future. But I do want to empha¬
stimulated.

the

You too will be interested, as I was,

Phone ID-159

•

the economic

size

U. S. Office of War Information,

STOCKS, COMMOPITIES

Home Office Atlanta

•

This

originated and designed

was

by the Special Promotion Division,

civilian

the; objective

changed by the

accepts the fact that it is no longer
sufficient to limit the horizon of

services.

label

;

to learn that

pail,' as we
It has been estimated

post-war era. About 46 million
people appear to have been em¬
ployed gainfully in civilian occu¬
pations in 1940 — the last year
before the economy was greatly

BROKERS OF BONDS,

America".

United States of

EXCHANGE AND

STOCK

INVESTMENT SECURITIES

dinner

million

should

The prob¬

solved

can

'full

used to say.

tried

have

It has failed!

all that.

with

"b y

through the

mirrors.

i d,

NEW YORK

OTHER LEADING EXCHANGES

;

UNDERWRITERS AND DISTRIBUTORS OF

entering the factory gate

someone

challenge," he

We visualize the worker

red, white and blue

label is the wording, "Made in the

■

ture.

Schenley

affiliates,

our

International

ities."

create

one

pand enormously the future pos¬
Jobs" asserted sibilities of American business. It
that "politi¬ would change the whole aspect of
cal
promises our problem of job opportun-.
do

series.

Telling the World!

Science at the^
'
Astor,

Hotel
in

fellow A merleans.

SCHENLEY DISTILLERS CORP., NEW YORK

i
Alfred P. Sloan, Jr., Chairman of General Motors Corporation, in
addressing the Annual Dinner Meeting of the Academy of Political

]

our

sixty-two of

various subjects in this series.

Meetings

are

held at 56 Broad

St., New York City, at 12:30 p. m,

Thursday, November 23, 1944

CHRONICLE

THE COMMERCIAL & FINANCIAL

,2250

International Trade Restoration
PRIMARY MARKETS IN
for

STOCKS

BANK and INSURANCE

route

short

the land

of Amer¬
tjie Straits of Magellan

ica and of

Huff, Geyer & Hecht
York

Wall

HDBbaid

3-0783

1-2875

COU

Enterprise

HARTFORD,

7«08

that

that:

spirit

<we-,need

world back

maybe

to /get

the,

Branches

is all the better if
them

3 Bishopsgate,
8 West

Charing Cross, S. IV. /

now), bring them in and lei
via the
exchange mechanisms.

This Week—Insurance Stocks

usual

By E. A. VAN DEUSEN

things

;

goes'
.-we.

will

fire ancl casualty edition of "Best's
News," some interesting i operating expense ratios are
stock fire companies'compared with stock .casualty com¬

Insurance
shown for

panies.

£115,681,681

46% for the
for casualty companies. How¬
ever, an improvement in ratio since 1930 is more pronounced in the
case of the fire
companies than in the case of the casualty com¬
panies. Following are the figures:
v
C

193C

agents

1940

26.8%'

_—

6.7 :■

•

2.2

1.3

2.0 1

2.3

7.1

3.5

48.6

48.0%.

_ — _

193 0

agents

4.9

4.5

1.8

2.1

2.6

2.5

4.2

3.8

the

been remarkably

the

Self-Insurance: Many large cor¬

porations, such as railroads, main¬
self-insurance.That
this

tain

practice has its dangers, whatever

advantages, is illus¬
trated in the recent experience of
its

may

Members

and

18th member

^r,

York

New

Telephone:
Bell

Circus,

Ringling

Stock

YORK 5, N. Y„

Adjustment Corp,

Y.—Security
Adjustment Corporation, 16 Court
BROOKLYN,

BArclay 7-3500

Teletype—NY 1-1248-49

Chairman

Land,

United

States

Emory

Vice-Admiral

the

strongly
advocates
coverage
of
foreign
owned
hulls
by
American in¬
Maritime

Commission,

operations of
American companies are confined
At present,

surers.

hulls.

American

letter

presidents of com¬

the

which

panies

are

subscribers to

the American Marine

Hull Insur¬

Syndicate reads in

ance

recent

His

part as

follows:

connection

"In
for

the

with

its

plans

post-war rehabilitation
American Merchant Ma¬

the

rine, and with a yiew to the de¬
velopment of our foreign com¬
merce, the Maritime Commission
believes that the existence of a
strong American marine insurance
market is
of great importance.
.

quently
viously

broader

stronger
exist if

and

conse¬

London, E. C.
Branches

not

nearly enough

workers

used, many

unemployed

were

and

things could be worse even than
under the Germans so far as the

begin to turn.
tremendous

With

lem.

struction

ahead,

be limited until

prob¬
recon¬

have to
supplies are built
exports

for domestic consumption and
rebuilding the wounded na¬
Yet some necessities have

for

tion:

and they have to

be .imported

paid for.' France has gold, but
only so much. So, she has to ra¬
tion domestic consumption to per¬
be

mit

and

reconstruction,

ancl since this class of business is

normally profitable, it may well
a .bullish factor in
the outlook for fire-marine com¬

be .considered

panies.

: /

Insurance

The

merce:

of Insurance

•

;

'■

Interstate

National

•

Com¬

Association

Agents recently en¬

the Bailey-Walter bill in
resolution which said in part as

dorsed
a

in the

"We hereby declare our unani¬

willing to pay fori

V* A

few ;

months ago

Paid-Up

I asked

description
banking and exchange business
conducts

Bank

also undertaken

assistance to the French and

real

the

abroad,
back

hold

reached that

ciation

they

point.

never

I asked what

direction

Commis¬

Insurance

fix, and the best thing
sioners.
This association has now our foreign trades can do is to
completed apd released the final find things in France we can use
draft of a proposed bill designed or sell someplace else where there
to preserve existing State regu¬ is something we want.
the

■

same

Incidentally,

one

of the easiest

Thus, the battle for clarification ways to help these foreign coun¬
of
the
situation
rages.
Mean- tries is to visit them oh vacation.

support, of the now so-called
Bailey-Walter bill as that bill was while, the insurance companies if don't mean now, obviously, for
passed by; the House of Repre¬ are "carrying on" as usual and no one ought even to try to go to
sentatives;, without any^ attempt are writing a large volume of ■France unless he has business re¬
to amend the same except as such business.
And, even though fire lated to the war or to helping
attempts, if any. shall be made losses are exceptionally heavy this them get on their feet. If a lot
from the floor of the Senate and year, other lines, such as ocean of commercial travellers land on
except as such amendment, if any, marine, inland navigation, motor the French at this stage, the coun¬
mous

shall seek further to eliminate the

business

insurance

from

the

application of the Federal Trade
Commission Act,
the Robinson-

vehicle
are

and

extended

profitable,

while

try from which they come is likely
investment to be rather unoonular. On the

Department
preoared to give a real hand to

other hand, the State
is

the

business

mate

business

men

national

are

philanthropists.
France is a key to

and

the stability

of Western Europe.
We
don't
expect to
mix into
European internal affairs, but we
are
very
much concerned that
Europe should solve its problems.
We
believe
strongly
that
the
sources
of our modern civiliza¬
progress

re-establish its unity.

Europe brought the great heritage
of Greece and Rome and of

the

through

Christianity

Middle

Ages and down to our day. We
in the United States are too much
of her blood and bone to let that
France is at the

die.

civilization
heart of it.

The British situation is a some¬

different

what

For

one.

three

from, 1939 to 1942, England^
United States,- was the
arsenal
of
democracy.' She has
been converted to war work to

years,
not

thb

even

greater degree than the
a
result, her

States. [As

United

productive capacity: devoted
to
export trade has been reduced to
a
startling degree.
Her exports
for 1942 were only 57% of 1938,
and in 1943 were 49%. But if you
reduced

figures

these

1935

prices, then 1942 was only 36%
of 1938, and 1943 was only 29%;
To see what this means to our
great ally, consider that England

great difficulty in balancing
exports and imports just be¬

her

the war, and that she

her investment

spent

much of

her balances abroad and

in paying for the

It was the
exhaustion of her dollar balances
early cost of the war.
that

lend

made

lease

necessary.

sterling balances in London
the Dominions (except Can¬

The
of

ada) and of the sterling area (like

Egypt, the Middle East and India)
have

gone

to nearly 12 bil¬
This is really a debt.
only be paid by

up,

lion dollars.

That debt

can

So also the things that
England has to have to live, in
materials, in food, in oil, all
these have to be paid for in Ex¬
exports.

raw

ports to the extent that lend lease
decreases next year, and in full
it

when

stops

at the end of the

Japanese war. Part of those things
were paid for by foreign invest¬
ment income which is now gone.-

Can

coverage

particularly with Targe
common
stock holders, will un¬
Federal doubtedly compare favorably with
results,

travellers who spend
relatives who send

remittances,

fore

port,

But after the

effort.

war

is over,

war

ports up to the point where they
care of what they had to im¬

took

every

and Executorships

Trusteeships

had

_£2,000,000

Capital..;

Fund ._______£2,200,000

Reserve
The

Belgian how. long it took- them
after the last war to get their ex¬

particular items which had. made
of clarifying the present ambigu¬ the balance before 1914, were less
ous
situation occasioned by the or missing in 1929. He said it was
recent Supreme Court decision, is the income from foreign invest¬
the action of the National Asso¬ ments. France is likely to be in
move

lation.

follows:
,

Another

are

Kenya

Subscribed Capital-.,..-.£4,000,000

tion should

But then comes the main

Ceylon,

Burma,

India,

Cclony ancl Aden and Zanzibar

held by German

base will ob¬ Patman Act or, other
the American legislation, to the end that regu- 1943.

and

26,, Bishopsgate,

Office:

Insurance:

Government

the

Kenya Colony and wjranda
Head

breakdown
communications., In ad¬

ration
Street, announces addition to its;
(L. A. Gibbs, Manager Trading Department)
exports for both reasons.
Ex-*
Sales
Department of Harry. J.
change has to be rationed to be
Barnes,' who was active in the fi¬
sure : she
gets the necessities of
of companies such '. as
marine underwriters take what¬ nancing
life. The necessities from outside
ever
action may be necessary to Celotex, Kraft Cheese, and .also
cost more, exchange than the ex¬
the
Brotherhood
of Locomotive
place themselves in a position to
ports bring in, so that the chances
offer,
on
a
competitive basis, Engineers; also, Norman Chinn, of our selling anything to France
coverage
on
foreign owned, as formerly of Charles King & Co. J
but necessities are pretty slim for
well
as
American, hulls.
a
while.
Slim unless you find
May I have assurance of your co¬ lation and taxation of the insur¬
ways to help the French to make
operation jn this matter?"
ance
business should be done by and sell us things we want and
.

Marine

Bankers

of locomo¬

coal where it could be

Sec.

Exchange

Post-War

of INDIA, LIMITED

remnant forces, and what trucks
were available had to carry mili¬

Barnes, Ghinn With

has
now
entered winter quarters in;
Florida.
According to Mr. Roland
Butler, public relations director,
ct is now carrying the biggest
mortgage in all circus history as
It has been stated in the press the individual States as hereto¬
a
result
of the
Hartford fire
that the Maritime Commission has fore."
:a %
catastrophe.
He is
quoted as
The NAIA executive committee
announced
that
cooperation
in
saying
"We'll
be
paying
our
this matter has been pledged was instructed to arrange for no¬
profits to Hartford, Conn., for
tifying the entire membership, of
the next 15 years."
Connecticut by representative underwriters.
in
the
post-war
years, the association and to take neces¬
law requires the circus to pay Thus,
ocean marine writings should ex¬
sary steps to gain Congressional
$15,000 to the families of each of
„
•
perience
substantial
expansion, support.
the 168 persons killed.
the

which

17th

corporations of the Exchange re¬

m BROADWAY, NEW

last 20 years.

under 40% for the

Flentye & Co., Lie., be¬

the

spectively.

Laird, Bissell & Meeds

just

averaged

having

"•Best's,"

Inquiries invited in all

has

NATIONAL BANK

materials

come

Stocks

moderate, according to

and

tary supplies and the bare essen¬
tials of civilian life.
With no raw

liam

Unlisted Issues

companies

Wocdard-Elwood & Co. and Wil¬

Insurance

the expense ratio

casualty

been more

Woodard-Elwood

loss

cars,

destroyed

Co.

cap¬

operation of normal business and
Meyer, were elected to mem¬ exchange was concerned. But that
bership in the Chicago Stock, Ex¬ will be solved soon.
Raw ma¬
change by the Board of * Gover¬ terials will come to the ports, the
nors. it is announced.
%■"«. [• v
;
ports will be opened, the railroads
Jwith the election of Mr: Elwood will begin to go, and the wheels
and Mr. Flentye to membership,
of industry and commerce will

Bank and

little change in

busi¬

big
was

years.

war

over-all expenses.

3.9

that with the

due to
of busi¬
ness, rather than to any consider¬
able change in the total cost of
doing business, for actually, ac¬
cording
to
"Best's,"; there has

Variation

39.7%

40.3%

37.7%

40.9%

4.3

3.9

3,4

4.3

3.9

1.3

6.9

"...

4.3
'

has been wide

there

during

■

38.3%

41.2%

noted

5.2

1.5

This, however, has been
targe changes in volume

areas,

most

was

William H.; Flentye of Au¬
Illinois, President of William
H. Flentye & Co., Inc.; James E.
Hogle of Salt Lake City,' Utah,
partner of J. A. Hogle & Co.; and
Louis Meyer, Jr., of Los Angeles,
California, partner of Stern, Frank

19.3%

4.6

1.8

was

rora,

Average

5.0

4.9

5.4

2.0

______

Total expenses

group

18.4%

4.8

4.2

will

19.0%

5.0 ;

and

Co.;

1943

5.7

other

variation

1942

President

COMPANIES

CASUALTIES

are

dition every decent port but one

CHICAGO, ILL.—Lester B..Elof Minneapolis, Minnesota,

3.3

48.0% :

43.3%:

5.9

audits—

_■

—

40.6%:

20.3%

20.3'f/

salaries,,,,.

Inspection and

fire

4.0

■'

1940

1935

20.8'4'

;
_
salaries-..,.

office

2.7

5.0

Chicago Stock Exch,

6.5

6.5
4.2

2.8

43.9%;

150 .STOCK

EXPENSES:'

OPERATING

All

5.7
3.4

6,4
'ii.U

country ! of agri¬

small

Deacon's Bank, Ltd.

Glyn Mills &

;

industry.

when

tured

wood

Total expenses

Taxes

and

tives and

3.9

5.0

and

culture
ness

dustrial

Four New Members of

.25.3%

3.3

7-4.9

All other

•Home

Average

25.2%..

;

3.2

3.6

—

—_____

Branch

23.6%

4.7

2.6

fees—

and

Taxes

To,

3.9

3.0

4.5

...

Inspections,, etc.
Salaries

for their customers [to

supervision

Field

ways.

against.

|> France was

Associated Banks:

Williams

bridges in the most important in¬

1943

1942

1935
,

to 'come, x'igur-

FIRE COMPANIES

25.3%:

25.7%

■

196 /STOCK

OPERATING! EXPENSES:

:.*■

bad time for quite, a

of years

—

three of

increasing its
industrialization,
and
then
its
to pay us with.
If - you want to; whole production was redirected
be a good business man, and have; and
geared to the German war
all
the
sensation
of
a
philan¬
economy.
Then came liberation
thropist at the same time/find with the destruction of all rail

shown, compared with 39.7 %

can

them. We are a- creditor nation-now,- and other-people don't
have much in the way _of dollars

ratio of fire companies has averaged

The expense

years

ing

for makers [of too,: an<QI want to take
export, for they them. tcr illustrate what

even

pay

'V-':.n

have

number

current issue of the

the

ASSETS

TOTAL

its feet. Let's spend % [ You see we are faced with the

like tp

That

W* /

64 Neu) Bond Street,

them pay for our:,exports

have, that we want .countries of the world are in such
have, as we do •a: bad way. Their difficulties are
out what they want
quite different from each other,

figuring

Smilhjield, E. C I

Burlington Gardens, W. I

the setting sun

would

E. C. 2

as much
time finding out; most difficult business problem in
what these other nations beyond the world's history, because.other
or

OFFICES:

LONDON

don't have

Scotland

throughout

port,

just

Bank and Insurance Stocks

OFFICE—Edinburgh

HEAD

and make a profit on.
If
you can buy it in China and sell"
it in Australia, and get something
else there you can import, all the
.better. " But look for things we

three or
four-way business, especially-out
here int ..the wide Pacific... It is
business,

7008

Enterprise

PORTLAND,

PKOVTDEN'CE, !Enterprise

gold

China

excursions who j disposed of ex-~
.ports but it was always a two-way need in the United States (and it

SAN PRANCtSCO, •„ SEATTLE
'■
■/
7 '
[• ' i.,, /'

TELEPHONES

;

■

NEW YORK,: BOSTON, CHICAGO,

LOS ,ANGELES,

LOUIS,.

ST,

PHILADELPHIA.

for

the West and Alaska.
Salesmen went along on all those

opened

CG-105

[

CONNECTING:

SYSTEM

WIRE

FRanklin 7535

0650

•

the

was;

Chicago 3 \
135 S, La Salle Street

.Boston 9
Post Office Square

■

Street

WHitehall

PRIVATE

of the Isthmus of Panama. It

and

1727

Incorporated by Royal Charter
!
■
V
'! ' ' ; '

Italy or
Greece or France or England, that
you can buy for dollars and im¬
something

spices led to discovery

New

Royal Bank of Scotland

(Continued from page 2245)

that

wonder the British

you

worried?

Their

trade

their

50% higher
reach

best

will have to

an prewar

balance

are

estimate

in order

pavments

whose

legiti¬

France

means

because of the loss of foreign in-

THE COMMERCIAL & FINANCIAL CHRONICLE

vestments, and that means just cannot possibly, do the whole im¬
about five,times the trade, in 1943. mediate job, and we are.up against
If their 'emphasis on exports "seems, our problem of the great creditor
extreme, these figures which tney nation. What is the sound invest¬

few weeks ago will
why.

published,

show

you

What

do in the
getting on

England

can

period while they are

basis?, They

balanced

to find

•

some

period by either

up during that
sale of assets,

nave

to even things

way

loan, or an
outright sharing of war costs that
put them/in this state. With the
end of the war a sharing of that
kind,is not likely, but it is cerT

tainly

riod

•

the West Coast*

Service of the United States. But

it is

need

revival

you." If private enterprise means
anything, it means git up and git,

of the genius,

without spoon feeding by a gov¬

enterprise and ingenuity in for¬
eign trade associated with the
country? .It is certain, if experi¬ Term .Yankee. .You in southern
California certainly should come
ence is any guide,, that .long term

ment

policy-to finance the indus¬
trialization
of
an .'agricultural

That

is- also the interest" of the Chinese

Government.

VU"' VhU-!' ment,

the

State

through

and

the

of history

crises
of

restoration.

"the

that

been de¬
makes
his living, and his chance to do
democracy
cisive.

lem as"

own.

that the friendly

me
a

his

seems

trader with

missionary spirit is the answer
much

Depart¬

Foreign

not

one

of
of

our

problem.

those

who

I am

interprets

instead of standing

just

tials

much, is

for

whose

world.

pe-

■

security.
•
:
• :•
If a nation.should move over to

our

managed for¬

state trading, and a

eign trade of exports and imports

permanent policy, or should
to recognize
our
position',

have

while England is geU

obviously

ting back in balance she must ra¬
tion her dollars, and limit her im-

ports to, essentials until her ex¬
ports catch up with them.
Here
again we can help most by look¬
ing for the things she makes that
want and

.we

can

field

One

use.'

costs. where

-war

might well make a- substantial
is
in
helping our

contribution

great ally to rebuild her houses
;that have fallen to bombs ana
robots and V-2's.
Much of her
that. might .otherwise

effort

of goods ,to .pay for
her essential imports, will have
to be diverted to the provision of
into

export

permanent shelter for those

•

workers,

men

and

held

•

fort

when

the

was

women,

grand
who

nobody else

.the job against Hitler.

But to come back again to our
with the area in which

business

/sterling is the basic international
currency, we can't be enthusiastic
of

kinds

other

about

traae

lated

British

the

re¬

hot

re¬

local

fi¬

strictions there which are
or

position, but are straight
♦discrimination against American
trade. To fight those restrictions
and talk governments out of them
is one of the main businesses of
nancial

and its Fori am happy to say
that the continuance of any such

the State Department

eign Service.

T restriction is certainly, not the of¬
ficial policy of the United King¬
dom Government, when they bear

relation

shortage

the

;

dollars, the blocked sterling b|tlances in London or the. limited
operation of Empire preference.
'

i
•

<>.

-Seaports like Los Angeles, and
Francisco are of course in¬
terested in France and England,

San

;

obviously facing west

; but you are

here, and the lure of the far West

•

blood. China has al¬
fascinated me. since my
early days in Manila. In later days
one of my classmates and frater¬
nity brothers was Jimmy Yen, of

-is

in your

ways

Movement,

Education

Mass

Chinese

the

whom

have read in the

may

you

Reader's Digest

year ago. In spite of all the dif¬
ficulties through which China is

•

going, and which are daily be¬
coming more serious, the Chinese
are
basically sound.
Yen's citi-

•

.♦

zenship education has taken hold,
with its spread develops the

and

certainty of wide support of the

kind of scientific

agricultural im-

.'provement, industrialization, and
commercial expansion

that raise*

the true standards of living.

Mr.

Key-men--the

power

its possible^are
-V*

'•

the most valuable and

perishable asset in business*

most

The

that makes prof¬

•.

:.r

•;

' 11

•

devastating loss of this

many

asset

■

it is

too

late

anything about it*

j The Massachusetts Mutual
;

-prablem that far too
executives "try to dodge — until

ever-present

•

has

man

big job to do—the important

job of turning the searchlight of experience on the loss that organizations*
suffer when key-men

die.

Nelson's plans for an integration
of the productive effort of China

1 should

produce real results ever)

within
over

the

soon over

Road.

Ledo
;

hump, and

suoolv

limitations

the

After the

war

there will be

LIFE

new

•

prob'ems.

China's

tendency

toward state control of
at least,

try

and

other

all

again

things

narts

the

want

world.

the

is
which

Una

can

belo

•to nay

peed

tion

for tue things Ohm4 will
desperately for. tra^soorta-

and

reconstruction. But that

INSURANCE

S V R I Mj F J E L I)

new'indus¬

the

prob'em of
finance will be lust, as great ac
Here

•.

Bert rand

•

COMPANY

M A S HAL H U S E T T H„

J. Perry,

President \

one

better

and financing the nation
strength means much to

tomer,

bread

chance to put more peo¬

also financing our best cus-

it is

;

ple to work here, and to benefit
the fellow on the other end, too,

-this is financing a competitor, but
.

have

But the way a man

sense,

it has been

liberty and justice and

line, or starving, is of the utmost
importance.
So this broad ap¬
proach to our foreign trade prob¬

of it

with foreign trade, under" the co¬
ordination

the

ideals

that, but the Yankee got the most

by it honestly, for you stem from
only ones that get paid «. in New
England, via Ohio and Iowa.
those circumstances. The United
Your Government is there to help,
States is concerned that develop¬
concerned
ment in China by Americans shall through the' agencies
the

exploitation.

history in terms of economics. In

ernment agency. There were ex¬
change difficulties in the days of
the clippers, and state traders and
exclusion from markets, and all
the rest, Government helped in all

loans with low,interest rates are

not be foreign

the job for

there to do

not

United

their operations in

nance

much in the interest
States to help fi*

very

the

1. of

For you

for others to whom I have spoken
in the East, it seems to me that

of the essen¬
and

■

peaceful

;

Francis H. Beam, Vice-President

recommend

Request

(Incorporated)
Terminal

Tower

Nine,: Ohip Bankers Association,
in Cleveland, Beam described the
programs of bankers working on
post-war credit for small business

1899

CHERRY 0260

primarily.

Cleveland 13, 0,
Bell Teletype
CV 496-497

Phone

peacetime changes.

■

;

credit.
ical

banks

The

bridge
the gap between war and peace
and during peace times. Small
sound projects needed to

OFFERINGS WANTED

OHIO

of credit built

by their communities in the

MICHIGAN

chiefly

benefit

will

business

from the reserves

KENTUCKY

loans.

ernment

banks," he said.

KLINE, LYNCH & CO. Inc.
CAREW TOWER

OHIO

the meeting
Farmers Sav¬

ings & Trust Co., Mansfield, Presi¬
dent of OBA; David M. Auch, as¬
sociation secretary; H. E. Cook,
State
Superintendent of Banks;
Russell Weisman, associate editor
of the Cleveland "Plain Dealer,"

MUNICIPALS

CINCINNATI

addressing

Paul M. Eliot,

were

,si;

■>'

•>.

TELE. CI

1804

si:

Carriers'

Lake

Association

an¬

nounced that the Great Lakes ves¬
sel

Com. & Pfd.

Gruen Watch Co.,

Sport Products Common

Trust

Land

Certificates

Co., Pfd.

Carey

Philip

Common

Paper

Whitaker

Gibson Hotel L. T.

The

elected Sidney B.
Congdon, President of National
City Bank, as Vice-Chairman, and
Louis Wild, Assistant Cashier of
'Jnion Bank of Commerce, Secre¬

Cleveland industrial concerns an¬
nounced changes

York Curb Associate

Terminal Building

Dixie

Chairman of the Board and elected

CINCINNATI 2

President, Clarence L,

its veteran

Tele. CI 68 & 274

Tel. Main 4884

Collens,
The
W.

new

Corey,

DIAMOND ALKALI

for nine

rector

Request

depart¬

He has been

ment in 1911.

COMMON

for 37 years.

President is James
who started in the
engineering

company's

has

Chairman.

headed the company

Circular

post of

created the new

ing Co.

di¬

years.

WM. J. MERICKA & CO.

Hitchcock,

Cutcheon

son

and

the

Treasurer,

CLEVELAND
Members Cleveland

Roscoe
YORK

Smith,

of
planning for sustained tempo

ton

our

management

of business which

for,

anticipate

OHIO

other

the

Field. Richards & Co.

last

company

the

Tele. CI 150

Tele. CV 174

Board

and

He is President of the National
Printing Equipment Association
and is a director of Copperweld Steel Co., Dubilier

Philip Merkel Now With,
Cunningham in Cleveland

(Special to The Financial Chronicle)
t

cern

CLEVELAND, OHIO—Philip S.

Merkel

with

has

Cleveland

Stock

Stull

Printing Ink Corp.

Harris,-with the

con¬

31 years and a son of the late

founder, A. F; Harris, moved into

associated

the presidency. He has a wide ex¬

& Co., Union
Building, members of

Cunningham

Commerce
the

become

Electric

Corp., Thompson Products, Inc.;
and General

perience in the graphic

arts in¬

Merkel

has

recently

been

The

new

Treasurer is R. L. Mil¬

ler, formerly Assistant Treasurer,
and the Secretary is Frank Szuter,
Daniel V. Hall, head of the bond formerly Auditor.
N. O. Scourr
department
of
Hornblower
& field was made Manager of the
Weeks, New York City, died of a Seybold division at Dayton, Ohio.
*
*
' K
heart attack on Nov. 15.
Mr. Hall

Daniel V. Hall Dead

had

been

informed

day of the

the

same

death of his brother,

Thomas, in Washington, D. C.

Coolidge,

of coal

ager

Ore &
Cleveland,

the

change,
full

season

and

coal shipments will

between

amount

Coal Ex¬
predicted

the

City

Vice-President

and Treasurer of Thompson

Prod¬

ucts, Inc., who spent most of his

Hi——Wmmm

huge

56,000,000

•

—«

•

QioEMcipal Price
Index

con¬

period.

following

City

,/■

1.53

1.35

Sep.

.34 g,.

1.19

.34'

1.19

,34»

1.53

1.18

.35;

1.50

1.14

.36.

Aug. 18

1.31

1.49

1.13

.36

1.31

1.40

1.15

Jun.

1.31

1.46

1.16

.30

May

1.31

1.46

1.16

.30,

Apr.

J.32

"1.46

1.17

1.34

1.50

1.19

;3l

1.37

1.53

1.21

.32

1.57

1.23

1.32

—

Mar.

1(5

Jan.

OOO.

J15

Feb.

improvements, $3,000,-

15, 1943...

—

'1.40

■

;33

.29

1.59

1.24

.35,

1.83

2.01

1.65

.36

1, 1942— 1.92

2.13

1.70

.43-

''Composite

eliminations, $2,-

000,000.

1.42

Jan.

Jan,

ments, $2,000,000.
crossing

SV 1.19c;

July

Dec.

sewer

Park

1.36

Oct.

City street improvements, $6,000,'

15, 1944

■

1.53

Nov.

County sanitary sewer, $3,500,000.
Library building, $3,500,000.
j *;■
County roads, $1,000,000.
"<j;,
Courthous annex, $1,000,000.
000.

1.36

1.53

NOV.', 8

purposes:

1.36: i

Nov.

The bonds will be issued

the

for

Date—

for

Index

bonds.

tio

lower grade bonds.
110 high grade bonds,
^Spread
between high grade and
lower

grade bonds.
•
:
Foregoing compiled by J. A. White & Co.,

improvements, $1,000,000.

Playgrounds, $1,000,000.

Cincinnati.

The Securities Salesman's Comer

55,000,000

By JOHN DUTTON

tons.

exceeded for the first
time since 1928, Sabin stated.
being

The Public Is Interested In Post-War

Up to Nov. 1, a total of 457,229,309
bushels
of
grain
was
brought down the lakes and the
half-billion mark appears certain

Investment Situations
There

is evidence that

"lead producing" advertising £t
that is designed to attract inquiries

the best

the present time consists of copy

regarding offerings pertaining | to securities that will benefit from
consumer demands.
This holds true* especially when it

post-war
Dresser

Industries, Inc., a $35',-

000,000 enterprise and one of the
nation's largest manufacturers of

equipment for the oil, gas and in¬
field, will - transfer its
headquarters to Cleveland from
Bradford, Pa., soon, President H,

dustrial

Executive

announced.

Mallon

applies to newspaper advertising.
.w,.;.,.t;
An advertisement which offered a list of special post-war oppor¬
tunities drew replies while other ads failed to bring a direct .response.
Direct mail campaigns which stress post-war opportunities also are
timely and are producing direct leads where -other campaigns are
not doing so well.
..
,
»
The public seems to be interested in the companies engaged in
industries about which they have been informed will- supply - the
,

jobs

minal

number

Tower.

;

has been

Bonnema

Both have been with

20 years.

the company for over
William

Chamberlain is the

head of the legal department

Products, Inc., J. D.
Vice-President and Sec¬

of Thompson

retary, announced.

ible
in

$50 par preferred

authorized

1936.' Hayden, Miller & Co. and
offering the shares

new

public

engaged in the plastic industry
imagination of the public.
:

also

have

definite

which has asserted

interest

taken

hold 011

•*

This

itself

the

the part of

general public in this class of security offers an opportunity
opening of new accounts that we believe has had few counter¬

the

for the

nineteen-twenties.
"
;
< '
First, there is a great deal of idle money around — more/than
previous time in our history.- Second, there is, a new crou of
investors who have little remembrance of the fears and trepidations
that were so much in evidence u score of years ago. Third, competi¬
tion for investment accounts among security dealers is much, iess
than ever before. There are only a few thousand security salesmen

parts since the day's of the
any

who

Miller & Co. head a
Cleveland syndicate making pub¬
lic .offering of 20.000 additional
preferred shares of Halle Bros. Co.,
large department store. The offer¬
ing represents i.unissued portion, of
the 80.000 shares of $2.40 convert¬
Hayden,

one

rank

issues

Theodore

gadgets of tomorrow. Television seems to be
interest, home appliance company security
almost as high, automotive securities and companies

the

and

offices will be located in the Ter¬

are

there were several times this number actively soliciting
this reason it is much easier to interview prospects
create interest in the purchase of securities.
,
:
.
,1
One dealer who has done very well with a new account cam¬

business.
and
-

calling upon potential security buyers today, whereas a.few

ago

years

For

paign. has used a double return card

which offered four attractive

post-war securities selling under $10.00 per . share. Two of them
were, dividend
payers which at current dividend rates offered a
return of better than 5% on the four stocks, based upon a purchase
of

one

hundred shares of each issue.

One stock was a low priced

another a rail equipment, also a home appli¬
distributor of; cotton textiles were included in the

associates are

automotive accessory,

$50.50 and . accrued dividends,
making a yield of 4.75%.
Other members of the under¬

ance

writing group are Hawley,

dustry eirit :

Exchange.

ypuffyful looking George S.
serving in the armed forces.
In jDively.owfethas been Secretary
and
Treasurer,
became
Vicethe past he was with H. L. GassPresident and General Manager.
man & Co., and Gillis, Wood & Co.

Mr.

tons

record, and W. J. McGarry, Man¬

Wright,

President for
years,
was named

50,000,000

transported, setting a new

Treasurer.

heads the Executive Committee.
Union Cent. Bldg.
CINCINNATI

Union Com. Bldg.
CLEVELAND

Over
were

and Lester D. Martin was named

Mitchell,

Chairman

County,

struction program in the post-war

•

the

Reliance

equipment.
V.

portation system, there is every
reason
to expect that, the issue
will attract strong competition.-:

Grade

shipments since the year 1928."

new

majorities

huge

plus the greatest volume in grain

assurance

appointed Production Manager
of Oster Mfg. Co. of Cleveland,

graphic printing presses and bind¬
ery

Hamilton

said "represented

confidently

HarrisSeybold-Potter, Co., one of the
leading manufacturers of rotary
The

the

University of Cincinnati improve¬

part

are

post-war period,"

SECURITIES
au

C. V. Put¬

who will con¬
tinue as head of sales promotion.
Collens stated: "These changes

year.

with the company 38 years,
leaves the office of Secretary and
will be succeeded immediately by

594

NEW

BROADWAY

the

nam,

Stock Exchange
CV

Teletype

first

the

of ill health,

Because

INCORPORATED

Building

the Association,

company's founder and with Re¬
liance since 1905, resigns as senior

Vice-President

Commerce

7,500,000 tons above any similar
period in its history.
L. C. Sabin, Vice-President of

post which will, go to A. M. Mac-

Union

540,964 net tons of war commod¬
ities through Nov. 1, or more than

in the top man¬

agement during the past week.
Reliance & Electric Engineer¬

Cincinnati Stock Exchange

was

accorded the $41,000,000 in bond

of an
all-time record movement of coal

Looking to post-war, two large

MEMBERS

fleet, nearing the close of its
moved a total of 146,-

1944 season,

in this total is an

York Stock Exchange

New

group

tary-Treasurer.

W. D. Gradison & Co.
New

the

group.

Bonds, Pfd. & Com.

Income

Reserve

introduced

was

sults

Dr., Alfred Haake, lecturer
and economist. R. M. Gidney, new

Bank,

to embark on

Williamson.

Frederick

late

the market.

dated Dec. 15, 1944, and-'due serially from 1946 to 1960,
inch, had been awarded to a syndicate of Ohio firms-headed by Fo?c,
Reusch & Co. and reoifered by trie account at prices to yield.from
0.75% to 2.30%.' :
- i.
f
—
*
:
*
The favorable
terms achieved General
hospital • improvements,
$1,000,000.
1
by Wickliffe (a Cleveland suburb)
for
the
issue
illustrated
the School construction, $16,000,000.> •
marked improvement in its credit
Ohio municipal dealers and the
position that has occurred in rerecent years.
:" " :
' U '
t market in general look forward to
•' !■
: *
f v > * r.V
;/
t
the projected sale on. Nov. 30 of
Despite the 65% majority vote the City of Cleveland offering of
handicap, a considerable volume $2,000,000 >11/2 % -series. B ^trans¬
of bond issues met with the ap¬ portation system revenue refund¬
proval of Ohio electorates at the ing bonds. On the basis of previ¬
ous
recent general election.
experience, and in light of
the exceptionally good operating
Overshadowing all of the re¬
record .of
the
municipal trans¬
The bonds,

Cincinnati and theTatter's school
Jones, senior mem¬
ber of the law firm of Jones, Dayf "district,
{.■,.
Cockley & Reavis, of' Cleveland,
As a result of the voting, the
was
elected a director of Clevethree levels of government -will
'and-Cliffs Iron Co. to succeed the
be able

and

140

Village of Wickliffe 2V2s which was recently placed on

Thomas H.

President of the Federal

MAIN

quarters revealed that only about $85;000
out of the original issue of $656"00G

undistributed

remain

bonds

Municipal Comment

financial

Cleveland

issues presented to the voters of

'sjs

Also

PENNSYLVANIA

in¬

subject

industry's need of financ¬
ing after the war; internal fi¬
nancing— steps individual com¬
panies can take through more
rapid turnover of inventories and
accounts receivable, and outside
financing — available
through
stocks, bonds, mortgages or gov¬

all

for

credit

source

His

cluded

the log¬

are

investment

field before go¬
ing to Thompson, spoke on "rb
nancing the Future" at a technical
session of the Cleveland chapter
Accountants.

bank

local

advantages

the

and underwriting

of the National Association of Cost

"The public should be told of
the

r——

—.

life

business

Ohio bankers attending

Speaking to more than 600 northeastern
the
annual
meeting of
Group<$>—

OTIS & CO.
ESTABLISHED

civilians, now and for

Stock

New Memorandum on

of National City Bank of Cleve¬

member of a nationwide bankers' committee working on
conversion, credit problems, declared Ohio banks are ready to advance
credit for all sound demands of business,' industry, agriculture and
land and

Standard Stoker Co.
Common

Ohio

Ohio Brevities

Possibilities

For Post-War

Thursday, November 23, 1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

2252

Shep-

ard & Co.. McDonald-Moore

& Co.,

Turben & Cp., Maynard
Murch & Co., Curtiss, House

Merrill,

stock and a

group.

The cost of 100 share of each of the

four stocks approximated

$2,500, which offered the average investor an attractive post-war
package at a price that is within the range of most accounts that
are worth cultivating.
j
•
;
• '
•.
•
This is the sort of merchandising that pays. There is no need
,

against becoming too over-optimistic regarding
products and the companies engaged in their manu¬
facture. On the contrary, good merchandising indicates that the invest¬
ment dealer should go after this business.
By selling the public
Halle Bros. Co. has paid divi¬
the securities that are not over-priced, and are good values even
dends
pn preferred stock for 30
as speculations, many a new account can be opened today that will
years
without interruption and
lead to future business.
Meanwhile the interest of the public is
now has 75,874 shares outstanding,
always "better served when security dealers select 'offerings upon
a
block of 4.126 having been re¬
tired through the sinkjpgj fund. which, they stake their reputation and their judgment, rather ,th?n
Earnings of the company|for the when the public itself is left to its own amateur judgment and overoptimism in the making of its speculative and investment commit¬
year ended Jan. 31,' 1944, amounted

Co., Field, Richards & Co., and
Fahey, Clark & Co.
&

$755,952.

warn

the public

these post-war

ments.

Volume

160

Prospectus

request from

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4336

Principal Underwriter

You

INVESTORS SYNDICATE

think of investing companies

can

idle money.

They

dollars

put

fied list of stocks and
constant

THE

PRINCIPAL

CITIES

OF.-THE

UNITED

employment agencies for

work by using them

purchase

diversi¬

bonds, and then keep them well employed through

MINNEAPOLIS, MINNESOTA

REPRESENTATIVES

supervision.

STATES

Sound investing requires a long-range point of view.

investor has put
it necessary to
ment

Mutual Funds

be turned

can

finding

upon

man must

make

may

sure

that each invest¬

most

readily into cash. For

investments, this

buyer promptly.

One type of investing company—the "open-end company"—provides

additional

Its. shareholders have the

answer.

time

any

their full

current

value of all the securities held in the

backed

There is

€J

right

portfolio. This redemption right is
many

securities.

benefit in keeping dollars busy. There is

liquid

resources.

redeem ^heir

value, calculated from the market

by the diversified marketability of

available

Railroad (B

But, after

work, unforeseen emergencies

money out to

call it back. The prudent

he selects

depends

his

need for readily

By combining supervised portfolios with the

right of redemption, these investing companies enable the investor
attain both

Shares
IJ

Through long

all

objectives.
of seasoning and service, investing companies of

years

have established themselves securely in the American financial

types

the last decade

structure.

particularly, the number of investors in

"open-end" funds with the right of redemption, has steadily increased—
in

part

because of the simple and practical

way

ready liquidity for

unex¬

pected needs is provided.

Lord, Abbett &
INCORPORATED

G3 Wall Street, New York
tr

CHICACO

enthusiastic specula¬
much to reaffirm

temporarily
has

tors

done

LOS ANGELES

•

and

income

$10,000

buy now only what $7,200

faith in the hallmark of suc¬

cessful investment counselors

"In terms

which

has

always been, 'there is

substitute

shrunk to

always

ticularly
such

process

proved sound—and par¬
so in a confused market
this—trading up'." This
described

"taking

actually

720 piece."

"For

2.57

during the past five years.
dollar
which
the

every

1.48

College Investments
A

increase in the effective supply
money

7.35

Cash

of purchasing power,

The memorandum discusses the

88.60%

Preferred Stocks-—-

Bonds

each of his $10,000 has

for quality."'

The. sponsor suggests, that inves¬
tors follow "a
process, that
has

Stocks

Common

will

would

buy in 1939.

our

;

his

ATLANTA

issue

recent

Calvin

lock's Bulletin summarizes

Bul¬

study-

prepared by J. Harvey Cain on
"College Investments Under War
Conditions."
This study reveals

American people

had in 1939 for the
profound changes that have
purchase of goods, they now occurred in the distribution of
have $2.40.
This change in the
college endowment funds in in¬
money supply points to a perma¬
vestments
during
the
past. 15
nently higher price level.
years.
"In
periods of rising prices,
Thirty-nine
institutions,
with
money
should be invested—not endowments of over $15,000,000
only as a means of providing in¬
each, held 63.3% of thefrl invest-;
come to offset rising living
costs ments in bonds and 13.2%v
ip
;—but also in -such a way that
common stocks on June 30, .1930.
capital has - a chance - to grow* in* Thirteen years later, on June 3(j,
order to maintain the purchasing
1943, bond investments of these
the

one's

welcome profits from
fast-moving, second-grade securi¬
very

ties and

(with

bitter taste' to be

sure) accepting less yield and less
'charm' in

attempt

sound security

hold fast

investment position."

This process is compared to that
which- a nation must follow if it
has

the

courage

adopt strong
"when the
i for
that

orthodox fiscal policies
electorate
easy

called

for

by means of-sound
policies."*
r
'
*;
: ■'!-J' "
\
:

Strong purge
money

i "■

'■

;

How Safe Is Cash? V

Keystpiip Corp., in the current
of ^Keynotes,
shows
the

issue

shrinkage-'Much has taken place
,in- the value of cash since the be¬

Prospectuses upon request

National Securities &
Prospectus
from

may

authorized

be obtained

dealers,

ginning of the war and poses the
question: "How Safe Is a Cash

Research Corporation

Position?"

120

ONE COURT

ST., BOSTON

BROADWAY/ NEW YORK,

(5)

ANGELES, 634 S. Spring SU-U4)
BOSTON/10 Post-Office Square (9) >
CHICAGO, 208 So. LaSalle St; (4)

LOS

The PARKER CORPORATION

The

that

points

out

investor with $10,000 who

"play safe'' in 1939 by

keeping his money in cash would
Management Associates, Boston, Mass

still*

'■

hayh his $10.000—but iii the

meairarfie he- would have

received

had

institutions

been

43.9%•: and common

Equipment Stocks

Distributors Group,
rent

ments

in the cur¬

had

been

reduced to

stock invest¬
increased
to

31.3% of portfolios.

issue of Railroad Equipment

'Another

interesting

aspect"" of»

authoritative this study is that the average rate1
reports of large -European orders of return earned by these institu-1
for
railroad
equipment •••'in! this tions declined-only slightly from
country.
'
(if oonw.; ,• 1938 (4.23%) to 1943
(4.02%).
In the opinion of this sp'6'risbrj Portfolio changes during this pe->
railroad equipment Isi&dKS appear riod
revealed that income was
undervalued in relatibh'to; present maintained
largely
by
shifting,

News, quotes recent

and

earnings
valued

drastically^ under-*

relation

their

indi¬

bonds

from

vestments

stocks.

in¬

Bond

reduced

were

from1

cated post-war outlook.

51.1%

Portfolio Breakdown

portion of common stocks was in-!
creased from 23.3% to 31.3%.;
- '

memorandum

•decided to'

Y'""■

Railroad

inflation—when

financial, facts' call

the

power."

clamoring

path of sugaredifinance, that

palliative
all

•

in an
strong

Selected

American

Oct. 31, 1944. held
ef $10,329,040.

divided

among

total net assets

the

pro-j

1"■

■

•

Relativity

These-assets-were \

109 companies as

while

43.9%,

J,ord.

Abbett

estirw case for
,

i
t

makes

inter-

discount bonds, in »

(Continued on page 2254)'

FINANCIAL CHRONICLE

THE COMMERCIAL &

2254

OUR
6th WAR LOAN

REPORT

Wood, Gundy & Co.
Incorporated

Street, New York 5
Toronto & Montreal

Direct Private Wires to

Canadian Securities

every¬

generally realized that Canada will play an important role
post-war era in many fields of supply,-but-it is
doubtful whether sufficient attention has been directed towards the
ireihendous contribution that the Dominion can make in the industry
that will do most to solve the universal unemployment problemIt is

general reconstruction.

' ;

in ,the
majority
of»and buildings all over this

Already
homes

gypsum

In addition to supplying

form.

needs

armies

—„

V|.

direction,
valuable

this

Continent

Canada

the

CANADIAN BONDS

in¬

.GOVERNMENT

in the world.

the Dominion is

one

When

two

week

will

necessary

realized

CANADIAN STOCKS

their

top

OUSly.

;

'
;

far

the

above

the>;•

helping to do

set

figure

gener-

marked

sumably for the study of

A.E.AMES&CO.
STREET

NEW YORK 5,

cent

N. Y.

years,

this

matter
by

re¬

;

now

the

Su¬

United
NStates, if the Solicitor General";

ny-m045

2-7231

contention

much

destined for airing

Court

preme

rector

'I'AV.V'ih

the

qf the department of Justice is

successful in his plans.

Alberta but also of the Domin¬

direct approach by the Province

of Commons to consider the army

to the bondholders as a

would

tive

lie

seem

body.;

■■■'
With regard

to the market for

He proposes to urge

of Appeals
which held that the bonds are; tax;
Circuit

Court

exempt. Although the High Court
has never had occasion to rule in
the

our;

,the necessary volume

the

past week, following the ter¬
mination of the Seventh Victory

matter,

to foreign

countries,

conditions

political

•

unsafe, if buyers- cannot sell ■
if exchanges are disorderly, J c

are

greater quantity than ever before
in peaceA-in' spite of being a cred¬

and

"There is no use trying to de-:
itor, nation.
To do!. so we - must
puy asi well, as sell goods and ser¬ dde which of these reforms has to!
vices; and make foreign loans and come first. They all have to come
investments.
:
v ;
along together. Without them we"
*
"Between the fall of .Napoleon shall, after the first fine flush PL
•

...

the First World War, Eng¬ post-war inflation, bog down in;
land^- a: creditor nation then as we another long, sad period of unem¬
are. now, accepted goods and ser¬ ployment, unemployed capacity at
vices and? made foreign invest¬ home, pensions, doles and uneco-ments' in payment for her exports.) nomic restrictions on production
The British Navy maintained the, and labor; while the world out¬
and

side

there was no general
hundred years. The Brit¬

will

buy; our

eager

goods—in dire need of them—and;

of free trade facili¬ will be unable to pay for them,*
payment in goods for Brit¬ There is no possible use of making
ish exports.
Foreign exchanges any post-war plan for domestic
were stable, based upon the gold
prosperity and employment that
ish

policy

tated

the London

standard

and

British Government pol¬

and protected

advanced

icy

money

does

The

those

solve

and

face

not

problems.

of!

readjustment

the the economic framework must in-

interests and investments of Brit¬

policies which will
subjects everywhere in the encourage expansion of our trade
world.
For lack of these four both
ways, in and out, and stimu-;
things, assured peace, free trade, late and protect foreign invest¬
elude laws and

ish

stable exchanges, and government

protection,

ment."-

American foreign in¬
World

the

between

vestments

Mutual Funds

"The first condition of foreign

(Continued from page 2253)

trade and investment is the estab¬

world and the

creation of

fur world to trade in.

Abstracts.

issue

current

the

and order in the

lishment of hw

analogy of a house
which, rises in value because the
property around. it is increasing
in value, "the bulletin points out
the

Using

a peace-

Another; is

the cancellation of .war> loans, new

already, held
that wages and salaries of Port in open bidding for new securities
arise from a largeLoan which produced only a light Authority employees are taxable vhiieh will
funding of the provincial debt..
scale: refunding operation contem¬
special flow of bonds from Can¬ by the Federal Government.
Should this materialize, a very
plated by the New York, Chicago
ada, the tone was firm but activ.-100 Millions, So What?
A
grave responsibility will be placed
St.'Lou is
Railroad
(Nickel
ity was limited. Albertas lost their
on the Bondholders' Committee, if
It's one of the biggest transac¬
Plate).
underlying uncertain tone follow¬
!' '-•*!';V:that body after a series of dead-:
tions ever to go through, ..yet it
ing a greater grasp of the funda¬
iVAExpeetedto materialize soon
locks over such a long period is
holds little or no interest for those
mental issues of the situation.
a fieri the closing of the current
still competent to negotiate with
whose business it is to distribute
There was an access of strength
Treasury Loan Drive; this un¬
the Province. It seems clear that
securities.
That's hard to -coftuf
in Abitibi Power & Paper 5s of
dertaking probably will inyolve
with the passing of Mr. Aberhart,
;
■■
1953, which in the past few weeks prehend.
vthe;sale of $42,000,060 of new
his successor. Premier Manning,
But in the case of the United;
have gained about 10 points, and
bonds expected to reach market
has indicated his forthright desire
Gas
Corp. securities growing
at current levels still appear an
late next month or early in the
to settle this unfortunate issue'in
ing is likely to result at long last
in a definite proposal for'the re¬

debts,

war

threat to credit.;

and goods cannot be exported -in'»

pro¬

abroad. in

goods

as a

Foreign investment will not flow,

.vastly

We must

outlet.

sell

kept alive

are

Wars did not fare well.

the highest

court, probably within the week,
to set aside the decision of the
Second

unless;;

market.

to be headed fof

and Several court rulings

reorganization plan, and the pre¬
cipitated re-assembly of the House

The Alberta Government meet¬

bone

TWO WALL

appears

final showdown.

ion itself, then the only alterna¬

question.

question of Whether or not
paid to holders of bonds

ernment

INCORPORATED

able to

war

of the Port of New York Author¬

debt

reasonably

ptd unproductive

and

peace; and

Settled

ity is .taxable by the Federal Gov¬

important events—the Alberta
Credit Party caucus, pre¬

'"'A AVV

Y;'<

;'A

It Should Be

The

appreci¬
for de¬
direction is

interest

that

Social

reinforcement

put

job is reassuring since they
have no doubt of their ability

truly enormous.
This

Investment

Furthermore;

this

the

ated; that Canadian scope

velopment

aim

and

of these who are

of the lowest-

also

and

duction finds

•.

quota set for it. Talking to some

consid¬

readily be

can

the

now

Banking

current war loan

CORPORATION

low,i due principally to low-cost
factory sites and low-cost unlim¬
ited hydro-electric and water sup¬
it

;;v

Division's- contribution

manufacturing costs in Canada are

plies,

Sun.

ing

the

•

producers

hej'

budgets and trade are unbalanced,

;■

have- prosperity
full employment

•

after";this ;,war

And

MUNICIPAL

other building
essentials—zinc, lead and copper,

cost

will

v>"We ; cannot

war-stimuiated capacity- for

Canada has the largest timber, re¬
serves

some

Y■-..p;

lend-lease.

And-they

that part of the job is done.

PROVINCIAL

building Construction, and

any

;

the ;

which taxed it to the utmost. Bui

quantities of

enormous

underwriting fraternity, h!as:
just'finished a'rush of new f'inane-;
ing
andrefunding
operations

Euro¬

a great degree
of asbestos shingles and tiles, and
wall-board ceilings and partitions.

soft-woods that will be

needed

the' Nazis

The

the substitution to

eration the

among

left over to speed up the task of-;

jthe traditional building meth¬
ods i in Europe, which are, based
on bricks, mortar,
tiles and plas¬
ter, can very well be changed by

•our

reason

hastening the setting of the, His-

and

does not take into

sinews

the

off

hope that perhaps

pean
home
building
program.
Emphasis will be placed on speed,

This

with

finish

briefest possible time.

the
this,

can
assistance in

ancl

Canadian .asbestos and
appear in some shape or

couhtry,

battle

full

another

Navy

fleet, to the tune of 600 millions-of

the immediate

housing and

exports fell off. For. this, where.' • " "4\
;/Y;
others, we bogged
"We cannot get equilibrium in
down
dollars. ■
•.
•'
; ;
into
a
depression which
the exchanges alone.
There is no
the Second World
But actually, from office boy; lasted j until
amount of money that will buy'
War., Then war demand for our
to top man, this segment of the ?
foreign
currencies
as
fast V as
nation Is in there pitching tot surplus production arose, and was
financed first, by British sales of printing presses will print them if;
provide Gen. Eisenhower's;vast <
capital r investments and later by political conditions are unsafe and
States

By BRUCE WILLIAMS

(Continued from first page)

the
difference.
These
Govern¬ and old, and the repeal of the
underwriting firms
Act.
Another
is
the
who are not aggressively engaged ment loans are in default. We be¬ Johnson
in the Treasury's Sixth War ..Loan came a creditor nation. We pro¬ making of Government loans, and
Drive, and to reverse the old say¬ duced more than we could., con¬ grants in, aid " of rehabilitation1.
sume in the 1920s, and we lent the
Another is the lowering or re¬
ing "they are not legion," are des-:
fined-to spend the next few weeks money, to pay for the surplus to moval of tariffs .and subsidies!'
engaged primarily in the task -of foreign governments, municipali¬ Still another is the establishment
Many of of stable exchanges, reflecting: a
surveying the corporate field for ties and corporations.
"the loans are in default. We were measure of
future, prospects.* n
equilibrium in inter¬
balances
of
Ostensibly the securities indus¬ capable of producing more than national
payment;
we
could consume in the 1930s,
try, which includes: the banks; un¬
Last, but not least, is a United
but the outer world,, though it States'Government
derwriters, , dealers and. brokers,
policy to ad¬
needed our goods, could not find vance
is engaged in the job of raising a
and protect American in¬
the. means of payment for them, terests
sum sufficient to give the United
and
investments
Officials

14 Wall

Says We Musi Foster
Protect Foreign Investment

REPORTER'S

Buy Bonds in the

Thursday,.November-23, 1944

has

that high-grade;; bonds are now
selling at peak prices, and adds:
"It may be expected that this fac¬
tor will continue to. have a con:structive influence on bond prices

"in

general."

' !!/■'f■ '■.;■"

■■\

■

f?;yjMutual Fund Literature,
Distributors
rent,
on

Group

—

The

monthly Investment

Group Securities, Inc.;

folders

cur¬

Report
revised

"Low Priced Shares vs.;

business-like

manner.

This

attractive

investment

view

not the time to keep alive the re¬

the

sults of mistakes of the past.

satisfactory reorganization of this

If
tee

the

Bondholders'

reluctant

satisfaction

Commit¬

forego

punishment

for

ize that

the general

early settlement is in

interest, not only of

highly

Trading
dull

and

...

Canadian

its

reorganization

assured
there is no

that.

dollar

are

of placement.
sustenance in

plan ap¬

the

cessation

Proceeds

$26,000,000

proved this week by the Federal
the company

Tuesday. They will go to a group
of 50 institutions.
'
••

Several

process

banking groups' are in

of formation to participate

•

connection with Sev¬
Victory, Loan subscriptions.

Six ill Wa r Loan Bonds

enth

Turning to possible future de¬

is reason to
continuance of the

velopments, there
anticipate a

Company

64 WALL STREET, NEW YORK 5

WHitehall 3-1874

present firm market

tone with

higer prices, especially bearing
in
mind
possible constructive

All

signs

now

point to

Pacific

Gas & Electric Co, as likely to be

panies

the first of the utility com¬
to come into the market

Plans

arc

believed to be afoot

of some $88,500,000

ing

first

and

of outstand¬

refunding

which these bonds
may
be
redeemed
will
drop
shortly to ICS from 110. and since
60 'days' notice to holders is re¬

be June 1.

Calvin

issue

Bullock—The

of. Perspective,

discussing
"Retail
War Outlook."

Trade—Post-

Dividends

Putnam Fund—A divi¬
dend of 300 a share payable Dec.

15, 1944, to shareholders of

record

Dec. 5.

Swarts Cited at Saipan

The price at

the probable hanpy

denouement

4s,

stries G, due 1964.

since the next interest date

of current political problems.

George

next year.

rnd Abitibi debt situations, and

in resnect to the Alberta

ued?"

quired, it would appear the com¬
pany's plans will be in the open
well
before the end
of March

action

plementary Prospectuses on Key-,
stone B-I, B-3, K-l and S-4 re¬
vised to Nov. 13, 1944.
.
.
Hare's
Ltd.—A revised issue of the folder;
"Are
Aircraft Stocks Underval¬
November

Utility Financing

looking toward the replacement
.

of support in

Taylor, Deale

refunders:
St. Louis &
$10,000,000 of col¬
5V2 %

lateral loans.

among
Nickel Plate A Prospect

BUY and HMD

Western 4s and

will be used to retire

Court at Wilmington,

the "free" market eased to 10%%.' will dispose of the new securities,
first
mortgage 3%, bonds,
next

discount, following

:\':o:'

f newiyear/'v;;;cV;

$6,500,000 of Toledo,

With its reorganization

in internal issues was
the

out

already
So

company.

the

past misdeeds and fail's to real¬

apparently

pending

High Priced Stocks": and; "The;
Advantages of ; Profits! Over In-,
come."
Keystone Corp.—Sup¬

would

L. Swarts, formerly asso¬

John
ciated

Co. is

with E. Henry
now

Marine Armored
and has

Sondheimer

corporal in the U. S.

Amphibian Corps

been awarded

the Presi¬

dential Unit Citation for the
pan

and Tinian Campaigns.

S ai-

Volume 160

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4336

This haiik

before the bin is empty. And conserve

IT'S up to every one of us who burns
coal to do all he

can

in conserving it.

Little

produced. Millions of tons more are
being mined this year than last. Mine
owners and miners alike are doing a splen-

needed for

coal, banking

serve

your

lire at night with

coal and prevent

ing of fires.
r

...

production. And, in

your

and tires. So be

sav¬

leaving

along its routes,

coal from the mines^
so

to understand the

we're in

position

problem and to know

how essential coal is these

days.

some

local dealer is suffering
shortage in manpower, trucks

addition,
from

war

big

biggest jobs of the C&O

Lines is hauling

live coals uncovered, will help to con-*

job. And- there are adequate rail
city.

But, certain grades and sizes of coal

can mean

small amount of fine coal,

facilities for bringing coal to your

are

precautions

One of the

coal.

ings in coal used. If you burn bituminous

This is not because less coal is being

did

heat

saves

patient with him. Order,.

^There

do to

;

are many

save

and
on

other things

coal. "Winterize"

•*'. Close off unused
,

wasteful rebuild¬
;'

rooms.

you can

your

house.

Pull your

shades

drapes at night. For other suggestions

conserving coal

see your

dealer.

Chesapeake & Ohio Lines
;

CHESAPEAKE AND OHIO RAILWAY
NICKEL
PERE

PLATE

ROAD

MARQUETTE RAILWAY

have

ments

bids

are

rates."
(Both state¬
from,the publication of
1944.)
layman will

Commerce,

has

Francisco Stock Exchange

Central Bank Building

craft

Municipal News & Notes

Solicitor General

of the

recommendation of the Bureau

to ask the
United States Supreme Court to
review lower court decisions in
the Port of New York AuthorityInternal

Revenue,

Triborough Bridge Authority taxcases was taken by the
in stride. The immediate

exempt
market

effect
in

limited to

was

easing

some

prices of Port Authority bonds,
the Triboroughs were un¬

while

Incidentally,

affected.

bility of a refunding
ter's

has

debt

the possi¬
of the lat-

quarters.

some

latest

the

stemmed
decision

fact that the

from the

development

litigation

year-old

indifference

market's

The

Federal, taxation
municipal
bonds.
In arguing that the New
York agencies were not political
immunity from

of income on State and

subdivisions and their bonds were

has

too,

and collect taxes,

the

make

the

market

original
success
was
achieved before the Tax Court

before

successful

less

the

that they are

the

another State—the State of New

unlikely

not

the
Supreme
the immediate

for

pass

the

welcome

would

opportunity
Court

inci¬
that

matter,

market

the

Jersey."

practical

issue, also the over-all position of
State and municipal bonds with
to
tax-exemption.
The
uncertainty created by the Federal

respect

Government's periodic assaults

Congress and the courts has been
a

of constant irritation and

source

to both dealers and in¬

annoyance

Stai& of New York—and
the political subdivision of

also

defend their position.

dentally,

Jan.

decision

—the

event
again required to

Court,

Supreme

last, ruled that the authority "is
a political subdivision of a State

dent that the opposition will be
no

States which,

the United

confi¬

naturally

Its

The court further stated that the

bridge agency "in its relationship
to those States lacks none of the
attributes" of
sion

Revenue

the

The court found similarly in

Act.

of the Triborough Bridge

case

The decisions in both instances,
it may

Time arid

again the market has
the psychological
occasioned by these at¬

suffered

from

be noted, were limited to
the statutory question alone, both
courts having

been adversely affected as a re¬

refrained from pass¬
ing judgment on the constitutional
aspect of the litigation. This lattef
point is of fundamental impor¬
tance and its adjudication by the
Supreme Court would resolve fi¬
nally the basis of the Govern¬
ment's long drawn-out campaign
to
have all State and municipal
bonds (or at least future issues)
declared subject to Federal taxa¬

sult of the temporary unsettled

tion.;.

reaction

tacks from Administration sources

the validity of the im¬
of local Government is¬

against
munity
sues

from Federal taxation. These

forays

undoubtedly

have

sioned losses

dealers and

both

occa¬

investors.
Local

taxing

units have

also

market conditions, having been

obliged

dispose

somewhat

lower

prices

has

Nor

the

result

several"

past

In view of these circumstances,
it would appear that the possibil¬

ity of

review of the entire ques¬
tion by the Supreme Court is def¬
initely warranted and desirable.
a

Certainly
will

agree

posing
nality.
The
is

all
on

the

factions

purposes

their
In

their

Government
was

You can
bet your bottom dollar that at
least a part of it will!
Some of
the

depends.

will

manufacturers

airframe

plan the solutions to

start now to

their

problems, and these will be
ready
when
the
time
comes.
There are certain aspects of the
business that will have to be dealt

which
begin to deal with them capably

and

the

and

with,

companies

in the
when

astutely will operate

make

and

black,

money

immunity

can

belief he

this

achieved

has

change in their

Con¬

character

have

been

unsuc¬

The

record

tration

Congress
been

the

Adminis¬

this issue, whether in

one

nishing

courts,

failure, thus

added

possibility

the

interest

that

the

has

fur¬

the

Supreme

Court mgy lay the matter to rest

permanently.,
.

<»%

-7

•

likes to dream

The average man

about owning an airplane.
Yet
will
pay
the
manufacturer

Safety regu¬

initial cost is high.
lations

and

constant

require

Even ex¬
extensive advertise¬
showing happy couples on
maintenance.

costly

pensive and
ments

fishing trips will not do the job
in the face of figures.
Recently the CAA made an ex¬
survey of former owners

tensive

private planes concerning their
reasons
for
disposing of their

because

them

sold

55%

The results show that

craft.

high

the

All

Of those

business.

to do cross-country

their

percentage were building up

flying time in order to
qualify
for
commercial pilots'

licenses.

■

These

■

...

selling must

for

reasons

kept in mind for the
evaluation of some of the

correct

surveys

prospective purchasers!
Results of the survey made by
the
Crowell-Collier
Publishing
made of

question,
answers

the

some

war

high

influenced

are

incomes, concen¬
trated
publicity
releases,
and
wishful thinking.
It is true that
the number of people who can fly

has increased

1940

much- since

ready market appears to be
available..
Whether or not that
a

market

pends

can

the

automobiles
will remain

sire

in the
with 26%

airplane

$3,500

class,

$2,000-$2,500 range.
Such

surveys

indicators.'
from

biles

unchanged.
and

new

1940

The fig¬
automo¬

seem

bear him out:
Year—

$500

1940

1939

under..-_

265,341

125,198

$750..^_i.„

'2,328,184

3,017,536

218,986

478,258

47,849

Gl,362

and

$501-

$751-$1,000

$1,001-$1,500___T.^
Sl,501-$2,000

4,222

7,547

*$2,001-$3,000

1,870

2,306

''Source:

Total

2,866,796
26,201,000

registrations

3,692,326
27,435,000

figures shown

are

whole¬

sale

prices. The $1,500-$3,500 air¬
plane desired by 65% of the pros¬

that actual demand for aircraft at
this

price would be small.
Even
with augmented incomes in 1940,
the

largest increase is shown

vehicles

which

would

retail

price between $900 and $1,200.

contended

that

such

subject to taxation

f^iliner

exchanged

of the

tiveness

of the market.

com¬

bat this,

the aircraft manufactur¬
ers
will have to go sociological,
and sell the public some new and
advanced ideas on living condi¬
The makers of small

tions.

craft

for

the

bonds
new

rwt

bonds

petition and traffic requirements
demand larger and newer equip¬
ment, the older types will do the
..

search must be continued to keep
of any

ahead

potential

enemy

So surplus1

airplanes must
be made usable and profitable to
their manufacturers, if possible.
force.

The

greatest profit-producers of
industry are service and spare
parts sales.
These we can pre¬

any

serve;

indeed, these we

velop

into

by them¬
:'■.;, v'\
i
operated, well-

efficiently

developed
make

de¬

can

industries

service division could
opportunity out of the
of
transport planes.

conversion

could

facilities

Production

making spare parts to maintain
the airplane during its average
life of five years in airline serv¬
ice,

the

types
built.

v :

■-

that
developed
time

same

being

are

take

new

and

here, too, the
airplanes, fight¬
ers,
bombers, etc.
Conservative
estimates would place their total
at 100,000.
In a commercial light
their value is just about nil. Many
can

surplus military

transportation to the United States.
Conversion
to ; commercial
use
would be out of the question, they
are built too heavily and powered
too

highly for economical opera¬

tion.

■'

%%%%'%.■'■!

What

shall

with

them,

there will be at
least a 25,000 surplus in flyable
along this line.
They have been
shape? Put them in a scrap heap?
proposing for some months that
That's a solution, but who bene¬
local communities plan to build
fits?
■
airparks or landing fields, or en¬
There is no use keeping them
large existing facilities. They must
as
a
stockpile; obsolescence will
go farther; the idea of the broader
have made

good beginnings

some

that

assuming

must be strong¬
The general public
must have pictured for them the
advantages to be gained by living
area

the normal business
area, as much as 75 or 100 miles,
and this must be made practical.
away

from

increasing

the

usefulness,

manufacturers will find their pro¬
duction increased, and
reduced.

When

one

their costs
million pri¬

$1,500in the

least 10,000 air¬
planes which can be easily, cheap¬
ly and quickly converted to com¬
operate

mercial
as

is' necessary,

But; it

Army Air Forces alone own

1944: Refund¬

set in before they can be

used.

they must be disposed of. The ex¬
haustive report on this subject re¬
cently submitted to Congress by
Harvard
University's
Graduate
School of Business Administration

offers
cal
for

some interesting and
logi¬
suggestions.
It recommends,
example, that surplus fighters

and

bombers might be given to
friendly nations in exchange for
needed
bases,
landing
rights,
strategic materials, or other con¬
siderations.
To Brazil, and Mex¬
ico, say, who cast their lot with
us
in
this
war
without; being
threatened
or
attacked.
Spare
parts in Army warehouses could

service.

Almost

all

are

two

or ^

gine transports that the Army in¬
tends to keep what they have of

Stifel, Nicolaus & Co., Inc.,
Louis and Chicago, and

St.

Ramsey

Wainwright,

Lan¬

municipal consultants of
■

the

banking group
bankers

of,the

terms

have

re¬

may assume

this

type, but what of the thou¬

sands of twin-engine

transports?

Quantity alone is an undependindex of availability.
It is

able

quite probable that a gobd many
of these airplanes are useless for

the airline operation, either because of
and the city, the hard usage, or because of drastic
underwritten
all modifications for specific military
taken in exchange tasks.
But there should be avail¬
between

agreement

new

bonds not

securities.
,The. re¬ able, let us say, 2,500 commercial¬
operation will save At-!
ly adaptable aircraft.
Will the
City a minimum ,,of $3,-'

the

old

350,000,, in
the

life

interest
the

•

charge^,;pver

new

bonds.

afforded

of these airplanes driginally, but they will need)land
will buy a lot of spare parts to
keep them going.

airlines pass up

Further;

four-engine

refunding operation which was
worked out for the city, jdintly,
by

have

couldn't

Mexico

very many

—

these
countries will
heed technical guidance on the
ships, which precludes their sale
and
maintenance
of
to the general public, so that, the handling
airlines are the logical buyers. We these airplanes. Foresighted manu¬
them

from the recently an¬
nounced sales of Douglas four-en¬

lantic
old

Lockheed

and

But, until com¬

will not be worth the cost of their

Lack of utility is the other fac¬
tor which will cut into the effec¬

funding

issues.

DG-4's

for

tracts

for Constellations.

1940

1939

sales

ing Plan will thus complete the

changed general and wafer bonds
1936

flies routes that will sup¬
port four-engined craft, and for
this reason
Douglas holds con¬
course,

selves.

/"Statistical Abstract."

Year—r
Total

and

valuable

are

under the

issued

for

the

airline,

job.
•• ■
.■ •
Basically, our problem is to
keep going at a profitable rate an
industry which must be kept go¬
ing.; It must, for one thing, be
ratio
of
26,000,000 ready to defend us again, if occa¬
sion
arises.
Technological
re¬
to
23,000 airplanes

1939

The

financial point of view, to

accrued interest, all of the unex¬

invest¬

low

major

the sale of

ures

de¬

Motors results show that 65%

the

Each

tax

action,

the

because

turn

ment.

vate planes are flown at least one
announced;* Of hour per day, 300 days a year, the
queried in the 50% -up¬ Air Age will begin, and the smallper income bracket, 10%
stated plane industry will become a real
that they intended to buy private threat to the automobile business.
airplanes.
One percent of the
Surplus Government Aircraft
total would buy a plane before
then be sold back to the manu¬
The industry is faced, also, by a
any other major purchase, while
facturers for resale to the new
it would" be the second major pur¬ strange problem: the peculiar dan¬
owners
as
needed. The picture
ger of having its biggest customer
chase for 2%.
'
■
; •/
wouldn't look so bad!
Brazil or
become its strongest competitor.
In
a
sampling - byAircooled

for

the

in business to make

costs.
Charles
Evans, writing in "Air Trails,"
states that unless the price of a
good plane is closer to $1,000 than

partly

the 2,000

received

return

are

and they can make money
operating these older types, even
showing a larger percentage re¬

fully utilized de¬

Co. have just been

funding

Atlantic City, K, J., announced

Without

optimistic

who planned
metropolitan
flying, a large ly advanced.

logged

Under

Unexchanged Bonds

18%

while

involved,

costs

New York.

Atlantic City to Call

demand,

and

it
pective purchasers in the survey
to
by Aircooled Motors, therefore,
look at this fact practically.
A
would be no cheaper than
the
good family aircar is still a dis¬
$1,001 wholesale price. The auto¬
tant prospect.
Its economical use
mobile figures seem to indicate
is
limited
to
long
trips.
Its

caster.

between

effective

The

the Market Directly

Meeting

correctly

desire

$1,500

money?

that

yesterday that it will call for pay¬
ment on Jan. 1, 1945, at par and

holdings.

instituting

income

and

bridge agencies to

interest

bond

Revenue

cessful, the most recent setback
having been administered by the
Senate in Sept., 1942.

the failure of~several

creditors of the
include

this

the need for dis¬
question with fi¬

Internal

gressional enactment of a "short
md simple statute."; Efforts to
have Congress pass legislation of

the

based

line with

status

involved

Supreme Court to
review, deals primarily with the
tax-free standing of bonds of the
Port of New York Authority and
the Triborough Bridge Authority.
It was brought officially by the
Bureau

contended that

which the Government

case

asking

re¬

granted by the Constitution.

squabble that has enveloped the
issue. during^ the
years.

bonds is not based

interminable-

the

< •

;

has

declared that tax-ex¬
emption of State and municipal

Administra¬

tion achieved any benefits

Roosevelt

peatedly

than

would ordinarily have been the
case.

President

issues at

show profits
1944, can it

dis¬
posed of them because of lack of
Authority. The Government sub¬
utility.
At the time of purchase,
sequently appealed this decision
the
figures show,
50%
bought
to
the Federal Circuit Court of
their
planes for local pleasure
Appeals for New York and this
tribunal, on Aug 24, fully affirmed flying, 40% for cross-country fly¬
ing, and the remaining .10% for
the tax court's findings.
the

vestors in local Government obli¬

gations.

forth

set

political subdivi¬

Well',

Author¬

occasions.

already been twice beaten

1940 to

years

peace-time production takes over.

ity which, in the interest of all its
creditors, assumed the burden of
defense, successfully disputed the
Government's
position
on
two

the issue in the lower courts,

etc.

The Port of New York

unexepected.
the Government

based

largely on the fact that neither
unit enjoyed police powers of the
State such as the right to levy

to appeal was not

Then,

tax-exempt,
the
its contention

not

.herefore

Government

discussed

been

ground that neither agency is
political subdivision within the
meaning of the language of the
1936 Revenue Act, which grants

the

industry; can't

ever

decision

dividends

What, then, has be¬
money?
If the air¬

money.

come

Announcement last week of the

that

says

differentiate

the that

have been declared, and yet it has

SACRAMENTO

JOSE

SAN

into, .these

the other hand,

industry

hundreds of

dollars

plants.

Templebar 6344

Exbrook 4944

aghast, and incredulous. He
on the one hand, the

seen,

millions

OAKLAND (12)

Building

Russ

our

Government pouring

FRANCISCO (4)

SAN

average

look

brothers

Members of the Sort

September,

At this

Mason

Chamber

Aeronautical

the

Inquiries invited.

account.

own

our

production

Our

bonds, district bonds and small name municipals.
statistical records enable us to make immediate firm
ment

for

Airlines
money,

(Continued from page 2242)

specializing in street improve¬

department

price and convert them at a rea¬
sonable one?
Would you?

Aviation Can Meet the Market

CALIFORNIA DISTRICT BONDS
We

Thursday^ November 23,1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

,2256

the opportunity to

purchase these planes at a

small

facturers will seize the opportun¬

ity
the

instructing

them;

at*

the

time opening for themselves
which will lead to

same

contacts

later aircraft sales!

Instead of de¬

stroying airplanes, we can make
them profitable to their manufac¬
turers, and promote international
good . will.
Surolus aircraft can
provide for Avoiid-wide sales and

service; they need not bring dis¬
aster!

Simplification of Design
One

q| the

reasons

for the hmh

cost of anvpianes is the

thei**

neers

complexity

structural desien.

disagree snmOwb°t

source

of this trouble.

But

Engi¬
to the
we can

.Volume 160

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4336

attribute it in part at, least to the vice problems' are simplified arid,' an easy job. But it can be done,
'
! providing that'the Steps taken are
:system of dividing .the engineering service costs cut.
1
\

department

into groups for ' the
design of the detail components.
The - aero-dynamic
engineer's
job is ended with the final de¬
termination of the basic config¬
When this is done it is

urations.

necessary-only* that the completed

ing

decisive, forthright, and definite.

follow¬

one

the
necessary
strengthening of the inner struc¬
ture of the companies themselves.
This is one more step and possibly
with

treat

product meet the set weight and the most important in getting the
balance requirements, and for the industry back oha sound commer¬
structural members to pass stress cial, competitive basis,
;
The aircraft industry must be¬
and flight-loading: tests.; These
structural 'members must be ex¬ gin at once to make a qualitative
actly and specifically drawn, but survey of its man-power situation.
make:
among the smaller parts, the gus-^ The companies that first
sets, brackets, doubters* angles,
etc., simplification could be prac¬

such surveys and begin to sift
sort personnel will have the

ticed to advantage.

post-war prospects.

the

Under

present+ common
practice a separate group of em
gineers is'assigned to each of the
component assemblies, i. e., to the
,

and
best

" -T

During the war emergency the
problem of personnel was almost
entirely

cries

Hence,

quantity.

the

one of
continuous

"crucial

wing, fuselage, empennage, power
plant, landing gear, and-the sys¬
tems. As a result the finished air¬

shortage"
and the
Mearn-while-you-learn" programs

plane has many detail parts which
are similar though each group has

bor to fill, empty spots on the as¬
sembly lines. The post-war prob¬
lem on the other hand is for the

drawn them

slightly different. In

percentage of instances
these small parts could have been,
identical. For example, in one as¬
sembly on one of our well-known
large

fighter planes there are two flat
gussets made of the same material
but of different shapes. Their ex¬

by 3/16ths of
an inch and their width by
%ths
of an inch. Two,other gussets vary
by 5/32nds of an inch in length
and %ths of an inch in width. On
another airplane one assembly had
treme

lengths

stiffeners

similar

have

could

die

vary

them with

one

produced all of
operation .to cut

saw

that

Each of the small

-them to size.

requires the same
paper-work as a large assembly;
each requires a blueprint, a tool
blueprint, a dief listing on the bill
of material, listing in the cata¬
logue, a shop fabrication order,
cost-accounting records, etc. Had
parts, above

this

work

been

properly coordi¬
four-

nated at the time of design,

fifths

the

time

and

expense

actually incurred would have been

man-power

for the utilization of unskilled la¬

most part qualitative; the

looking

manufacturers

forwardwill re¬

retained manpower

member that

ity."

y v-1

Along with these,

the voca¬
tional misfits; top-flight engineers
tire airplane, but in View of the who are executives in
charge of
fact that the number of separate
interoffice communications, firstparts in some airplanes runs into rate mechanics who are supervis¬
five, figures, a considerable saving
ory paper-shufflers, etc. In short,
can be effected. •. ■'/.
men
who moved away from the
Further,
engineering
depart¬ jobs in which they were best qua¬
ments will have to cooperate with lified because more advanced po¬

production

depart¬

ments at-the time the components
drawn

are

instead- of

using

the

system of trial and error that is
now. widely
practiced.. In, this
manner

designs for which tooling

cannot be made or for which the

are

the fact that one of our maior air¬

frame

manufacturers produced a

prototype of a new model from
drawing board

.the first line on the

ward

great reduction in the. staff
organization with; a shifting of

able where they are.

For this

rea¬

management will have to take
a positive view of the personnelreduction problem. The most, ca¬
son

have

not

The

ceased.

complaint

has been made

by the comptroller
of the airplane manufac¬

than

confidence

be considered,

when

aircraft. At present
most companies/charge exorbitant
prices for repair work. In an ac¬
tual case a small airplane which
cost*$58,000 in 1938 has had $90,000
worth of service up to June of
1944. With the exception: of one
small accident repair, this amount
wai spent for routine maintenance
and overhauling. Such' high costs
can be traced to the complexity of
the
airplane
reauiring
special
equipment and highly skilled and
trained personnel for even minor
to

repairs.

The

buyer

$2,000

automobile will hesitate to buv if
he

sees

the

prospect of spending

$3,000 in normal maintenance over
few years.

Similarly, -the sale of
airplanes will expand when ser¬

and

dustrial

research

relations,

ities without

Ambrose R. Clark Dead

and

economist

Broadway, N. Y., head of the

firm of Ambrose R. Clark & Co.y

died

his farm at

Fayettesville,

Nv Y.> aged 64, where he had gone
to vote at tne last Presidential

election, Mr. Clark

dean of

was

the board of ushers of the River¬
side Church, 122nd St. and RiversideDrive, New York. He devised
and

developed

church
men

usher

model system of
sis:

from

service

in 1897 to nearly a

ushers

hundred
which in

not too

:;;-y

■

Aviation

meet

can

the

■.

D.'

market

the

head

service Mr.

duties

as.

his 40 yearn

Clark defined hfc.

Chairman of the board

extravagances, aviation will have
just prepared for battle. It's pro¬
gram must be long range in plan¬
ning and execution. Overnight ac¬
ceptance of the airplane for mass
transportation
is
not
practical

of ushers in these words:

thinking. The automobile and the

whole church service."

"Usher¬

ing is the science of making the
church
feel

member

and

comfortably

lending

spiritual

This Announcement is not art

etc.

visitor-

the

home

dignity

and

Offer

(Municipalidad de Bogota)

City of Bogota
(Republic of Colombia)
.

Y.;.,

■
i

Power and Light Consolidation Loan of. 1927

/Twenty-Year External 6%% Secured

major

largest airframe

Cost accounting division.'
Cost control department.

under

loose

sion.

Municipality of Bogota (hereinafter referred to as the "Munici¬
announces that, under the terms of an Offer to become
November 15, 1944, it lias arranged for the delivery of
Republic of Colombia 3 fo External .'Sink-ing Fund Dollar Bonds,
dated as ohOctober 1,19:10, due October 1, 1970, with coupons matur-:
ing on and iifter April 1, 1945 attached (hereinafter referred to as the
"Government - Bonds") iii exchange, for. equal principal amounts of
boiids of either Of the aforementioned issues, with coupons? maturing
on

and after

Tlie

place to begin. To every prob¬
lem, fop the past four, years the
industry has had but one answer:
"hire more help." The point has
been reached at which reductions

sake

efficiency will
bring forth the panicky cries of
"cut-back."
"lay-off," ."cancella¬
,

tion" and "chaos."

But the fact remains that layoffs
msde

without

-reducing

productive capacity. It will not be

the Offer

may be obtained from The National City Bank'of New York,
Corporate Agency Department, .20 Exchange Place, New york, N. Y.,
which has been designated by the Municipality as the Exchange Agent
ito effect the exchange specified in the Offer. Copies of the Exchange
Agency Agreement are available for inspection at the above-mentioned
office of Tlie National City'Bank of New York.
The Offei* will remain open for acceptance until the close, of business on October Ay'^1946, of such later date as the
.Municipality may
designate.
' ' <4-... *t, ;
Holders of; Mfibff($(1 ^Bonds who desire to exchange the same for
Government Bon3.4H!iHieeordahee with the Offer should deliver such

„

Disbursements, documentation
and claims'department.
,

General accouhting division.*

Gen.^pal accounting, records and
reports department.
Inventory accounting division.
Inventory audit department.

Municipal Bonds to The National City Bank of New York, Corporate
Agency Departnf<U$20 'Efcchah^e Place, New York, N. Y., as Exchange
Agent, with properly executed letter of transmittal in accordance with
the terms of the Offer. Copies of the form of letter of transmittal
may
be obtained from the Corporate Agency Department of The National
City Bank of New York.

Inventory control department.
Key-punch department.
Machine

accounting division.
Payroll accounting department.
Payroll auditing department.
Property accounting -department.-"

^Reports'/and statistics' departhicnt.

the

an origiiial or additional issue, hut consist of
boiuls heretofore issued by the. Republic of Colombia and listed on
the New York Stock Exchange.
: V..; "•;V.;
This Annoimcement is not the Offer of the Municipality. Copies of

depart;

Government

\y-\ .r-v: v--'
Bonds -to he -delivered in exchangerruuder the

Offer-do riof represent

Yy-'

Disbursements^ ;^udit
' ment'..
'y V- /"

April 1, 1932 attached (hereinafter referredVto

"•Municipal Bonds").

accounting divi-

1st, 1927—Due April 1st, 1947

effective

Cost records department.

Disbursements,
.

economy.

1,.

April

pality")

com¬

Cost planning department.

Dated

The

•

Sinking Fund Gold Bonds

division of the Finance branch of
our

■'■"■i'.y

■

extremes

one

;

(Republic of Colombia),

For example,

divisions and offices is

Dated October 1, 1924, Due October 1, 1915

Municipality of Bogota
Y

the following list of departments,

one

8% External Sinking Fund Cold Bonds of 1924
!

Jorge Soto

•

November 15, 1944.

Corral

(Republic of Colombia)

•

Dated

del

Mayor of Municipality of Bogota

(
r-

dinner given in his honor

at the completion of

cleared of war-time

are

Rockefeller, Jr., is a member.

but it must meet itself first/ When
its decks

Fosdick

Riverside Church, of which J ohm

early—indeed, it is almost

too late.

Dr. Harry-

3,000 in 1944.

over

Emerson

in¬

markets,

Unbelievable

fulness.

have been reached.

in-

that it is almost imnossible to find

broker

ment

black when the going gets tough
and the competition keen.
It is

regard to their use¬

Ambrose R, Clark, bond invest¬

companies that
operate in the

economically than at pres¬
ent. The sketchier surveys made

any

Efficiency has been put aside in
favor of production for so long

can

spet -

thoughts of the workers.,
Intelligent management counsel
has- been blocked furthermore by
the
sort of industrial nepotism

the

profits,

But it will have to be done much

troubled

for

daily necessity.

Until then there will be
tacular

church increased from 300 in 1897

the

are

continue

interesting statistical material

will be

confusion by adding Unrest to the

fostered

many-

conveniently located

airports, che&p initial cost and
service, all-weather flignt aidy

swamp!

will

item

utility*

business

costly programs of
cheaper initial
management control have done
costs, simpler design will produce
little more so far than cause worse
more economical service.
This is

applied

possess

available;

are

The companies that start now to
practice
efficiency
and
sound

■

an •

these

as
at present,
unique for its precision and ex¬
peditious efficiency. In the same
interval the congregation of thin

was

invested

airplane will

thousands of

exceeded production
records of plants that were "in
production"
when Willow Run

addition .to

The

when

has

•

Iii

next few years will see a parallel
in private airplane registration.

tively* -Henry Ford's Willow Run
plant

;

people and a luxury item to the
remaining 325,000 owners.
The

will go as soon as the manufac¬
turer himself starts to pay the
bills. This is not to say that there

others, panies: • i ■
yy.
existing
Accounting
a practice,
; ■ ; >
policies;
this
is
y
,y.v management
Accounting office.
'
;
By such methods of time and la¬ proven by the number now seek¬
Accounts payable department.
or
establishing,
bor .saving the- .cost of; private ing /other jobs,
Auditing department.: " 1
;i
side-line, businesses .to be de¬
planes can be cut to a marketable
C. Pi F. F. department.
figure. The automobile companies veloped after the war. They see
C. P. F. F. accounting departa woeful lack of intelligent plan¬
simplified, design, find increased
ment.' y y ' " y'yy-y.
•
and a
riotous
confusiqn
sales at lower costs spiraled their ning
Comptroller's office.
y- :
caused by dyer-expapsion.
industry into one of the nation's
Consignment accounting depart-;
The few, companies which have
greatest.
ment.
Y ' "
-y yyyY-.
men, more
no

until:

motor-

the

because their stake is least valu¬

to a flying airplane in approx¬ pable
imately four months; by just such have

The

utility.

boat is essential to perhaps 25,900

ment.

Timekeeping office.
Such a corporate structure is
personnel to strengthen the line not a breakdown'of functions; it
throughout,
Only by such han¬ is a .complete collapse!
Interde¬
dling can adequate precautions be partmental communications alone
taken to lock the barn before the use enough paperwork to overload
best draft-horses have been stolen. any single airplane built as a re¬
sult,
Whole
empires are built
Administrative Efficiency
around filing systems.
But this
The complicated corporate struc-' article, is not meant to be merely
tures and the non-productive lux¬ a denunciation. Therefore, let us
ury
appendages fostered under say only that the deeds of the
cost-plus Contracts will have to be aircraft industry in the war effort
lopped
off.
Widely
scattered may go unheralded, but they cer¬
plants/ with resultant communica¬ tainly will never be unrecorded.
tion and transportation systems
The fact remains that air of the
will have to go.
Expensive re¬ oyerstaffing' has not turned out
search
departments not directly more airplanes. The industry blos¬
connected with the product, in¬ somed in a rush, and hiring three
teresting though their findings, new men for every new job was
will be a heavy burden on the not the answer/ Best records of
normal sales return.
production have been made by the
production heads who
The first warnings of this have old-line
knew how to make every minute
already made their appearance,
and every hand count most effec¬
despite the fact that hostilities
a

by advertising agencies', public
organization were relations counsel, and other, ser¬
available at larger salaries.
vice organizations will suffice.
In the ordinary course of events
The ruthless destruction of com¬
the industry will lose these men
plicated
departmental structure
first
unless
something is done must proceed without regard to
about it. Lay-offs on a seniority
personalities involved; in most
basis will hit them first and they
cases they were built by personal¬
sitions

shop has no fabrication facilities will be the first to leave volun¬
can be changed at once,' before: a
tarily because they will have first
piece of metal has been cut. proof call on other opportunities and
that this can be done is shown by

they gained

y y

would not hold: true over the en¬

and

Time-keeping department.
Timekeeping general depart¬

will have to be taken;

care

capable, as well as nu¬ of one
merically sufficient. Since most turers that costs of most programs
of the mass-producers have long of
advertising, public relations,
since lost sight of this fact, the and employee - morale - building
problem is greater than it appears. Have been declared by the Gov¬
A part of the mix-up came about ernment's General Accouhting Of¬
through circumstances attached to fice to be not allowable under
overnight expansion.
The first cost-plus contracts.- This is an in¬
group to take the jobs offered dication that the time is past for
was comprised of men to whom it large
proportions
of
indirect
offered the first steady job in workers,
Post-war organizations
some years. The men best equipped
will have to be almost strictly
for
All
employees will
executive
and
supervisory utilitarian.
spots stayed away; because they have^o be directly connected With
had good jobs, or businesses of (1) building airplanes, (2) selling
their own and the rewards offered airplanes or parts, or (3) handling
were
not large enough.
When, money.:;"y: ':y77\y VY'
■
finally, they did turn to the air¬
Exception must be made,, of
craft plants for one reason or an¬
course, for design and structural
other, they found, in most cases, research. These are the heart-beat
that their jobs were subordinate
of the industry, and no one ques¬
to those held by the early-comers,
tions the legitimacy of their costs.
by reason of that not-measurable' But minor- monarchies engaged in
qualification known as "senior¬ the building of voluminous files

eliminated. This ratio undoubtedly

tooling

Much

the general direction must be to¬

must

Tax department.,

Man-Power—War and Post-War,

This section and the

railroad did not become big

Systems department.

'2257

the

THE COMMERCIAL &

2258

Thursday, November 23, 1944

FINANCIAL CHRONICLE-

16, and it is believed in some quarters that these participants
take advantage of the premiums prevailing fojr
the 2%' due 6-15-52/54 to obtain funds that can be put to work

Dec.

Haney Discusses
Old Age Tax

posed

„

corporations will be given any substantial income tax relief in
are very remote, as weir as the statement of Chairman Eecles
of the Federal Reserve Board, that much of the current discussion,
and

1945

of reducing corporate taxes after the war, is in the realm'

favor

in¬

wishful

thinking, because the revenue objective is

too

Also

y e a r.

of the Government bond market.

are

set entirely

low, undoubtedly had an effect on the partially' exempt
-A';'

crease

there

in the last four maturitieswith.the Vk% due' 1955/60 in
The statement of Chairman George

the continued strength

was

partially exempt obligations,

the

of the Senate Finance

again.. It has bobbed up at this
time
largely
because
the tax
.that is levied on the people is sup1

in the

particularly good ^demand. . . .
Committee, that the prospects that individuals

University

security" -issue is up

The "social

outstanding feature-of the Government bond market

past week
of

in the War Loan" may

CHIPPENDALE JR.

By JOHN T.
The

By LEWIS H. IIANEY
Frcfessor of Economics,
New York

Governments"

"Our Reporter on

section

...

those
who

want

■

Series G
% % due Dec. 1, 1944, have been given the right to, exchange these
securities par for par, for the Series C 0.90% Treasury notes which
mature Jan. 1, 1946. :
It is indicated from present quotations for
the maturing certificates of indebtedness that the new 0.90% notes
will go to a premium when they become available in the market, v.'.
A recent bid for the maturing certificates of a 110-yield ?
basis plus 250 per certificate, would be equivalent to a yield i
for the new notes of about 0.84% compared with the return of
0.90% available to the holders of the maturing certificates, who ;.
obtained these new notes at par through the exchange offer. . / . J
.

:, The large New York " City commercial banks, it was Yeported,
much interested in the new notes, with demand .also appeal¬
ing from out-of-town institutions; :?,y ■/"■/'';////;•/.////; 'T/
■ -J-'t'"
are very

seems

;':

DISCOUNTED

TRENDS

in the govern-, TAX

ment

immediately in the; 2% due 12-15-52/54 at the issue price.
Holders of the maturing certificates of indebtedness, the

in Government bond
partially exempt issues have quite

pretty generally felt now

market circles that the long-term

WAR .LOAN

'Ai \

: /•

SUCCESS ASSURED

Monday, .and indications
already point to another ..substantial "over-subscription of the quota
spend,
and they are being recommended for income as well as appreciation:
would wel¬ The 2%% due March 15, 1955/60, made substantial gains during the set by the Treasury, of; $14,000^00,000, ofvwhich' $5,000,000,000 will
come
an
in¬ week, and it was pointed out that on March 15, 1945, these bonds be sales to individuals and $9,000,000,000 to non-bank investors. ! •. v.
crease
in any will be within the 10-year maturity range, which is considered The securities offered in the drive are: '.-/■%/ .T/V%;■: \ /-;•%///y7*. .;
? / Savings Bonds—Series E, due 10 years from date of issue, and
taxes that desirable for banks
by the Government.
.
//'"^/'/■/ A-'O
;Vfor individuals only.;
would
• -.V,./-.:
give
'■■■Cy,
]?'■
'.VIt is reported that some institutions have been anticipating
j
them more
this feature and were substantial buyers of this security/in/the• V;';,Series F and G, due 12/years ftom; date of issue, -s For-all non'r •
funds.
bank- investors, up to a limit/ of $ 100,000,;with .commercial/ banks
past week.
At present prices of 112 6/32, the yield to the
Incidentally,
permitted to. subscribe /for; only, a limited portion of their . savings
call date is 1.59 with the tax-free yield at
revenue

The Sixth War Loam got under way- last

prices

fully discounted probable future tax trends, and at present

trend

the

T.34%.,|///A.^

There is

toward broad¬

ening the ap¬

from

social security

and time

the taxable/issues

of the latter security,;
fact- that the taxable
longer to the call <date than

2%'s, but some idea of the attractiveness
tax-free yield basis, is shown by the

to the

plication of

exactly comparable maturity .in

21/2%

•/>j/::-./.;1':.///'■•/.,.■/ ,;///'•//)•/..%;.

deposits

Notes—Series C, due three years from date of issue, open
// vL.b /:'/•:■'•■
L////'7;/ ;
A/'/'/1 /:/;:''

;. / Savings
to everyone

r
j Certificates of Indebtedness—% % due Dec/1, '1945;' available to
1956/58, a year
all, except commercial banks; who may not purchase them for their
so as to cover more people.
Pre¬ the partially exempt 2%% issue, gives a tax-free yield of 1.27%. . . . own account
prior to Dec. 18, 1944
7A
The taxable 214 % due Sept. 15, 1956/59, gives a tax-free yield of
sumably, therefore, a government
Treasury Notes—1 % %,. due Sept.
15, 1947. > Available to all
that wants to
buy votes would 1.31% with this issue one year and six months longer to the optional %
favor
raising more revenue to call date than the partially exempt obligation.... . . According to the non-bank investors, with commercial banks not allowed to purchase
latest available Treasury figures
there (are $2,611,000,000 of the them for their own account prior to Dec. 18, 1944. The commercial
spend, if the taxes • would not
2%% due March 15, 1955/60 outstanding, with ■>the ownership of this: banks may acquire these notes for own account in exchange for
antagonize most voters.

H. Haney

Lewis

provides for an auto¬
next year from a

law

The

obligation

increase

matic

provide

tax

Stock

■'>

this being
est

All

Agencies and Trust Funds.

Government

plated. And this maximum limit
has already been
far exceeded.
The "reserve" as now figured is

133,000,000 "
365,000,000 ;/;//

Casualty Companies.

Fire and

three times the great¬
annual expenditure contem¬

165,000,000

/ ——

Investors

Other

907,000,000

.—>

was

reported that recommendations are

sight.

Thus

Recent

legalistic

the

from

even

Price

Sell—

standpoint there is no need to in¬
crease our social security taxes.
But

Yield to

Free

Yield %

Call Date

10928/32

0.93%

1.34

1.13

110 13/32

due

1.11%

108 26/32

12-15-49/52—
2% % due
6-15-51/54—.
3%
due
9-15-51/55—_
3 V« %

Tax

1.39

1.17

;

the fact that

BUY—

bad-

2%%

due

3-15-55/60—

112 6/32

1.59

2%%

due

9-15-56/59—_

11122/32

1.65

1.39

2%% due

6-15-58/63...

11121/32

1.78 ■■••V/.

1.50

due 12-15-60/65___

111 28/32

1.89

1.59

bad.

very

but are put into govern¬
ment obligations, which increase

2%%

reserve,

public debt without

the

providing

proportionate revenues.
"reserve" is, in my
opinion, wasted.)
The benefits

paid

are

not in proportion to con¬
No

made.

tributions

"social se¬

curity" is provided for people who
work for themselves, or are selfemployed.

might be made,
but even if the lawds bad, that is
no reason for abusing it.
The fig¬
ures at the end of 1943 showed a
so-called reserve
of 4.8 billion
dollars for old age security, and
5.1 billion dollars for unemploy¬
ment. These "reserves" are grow¬
,

Other criticisms

rapidly.

ing

Tax receipts have

larger

estimated, and

been

than

But the highest

less.

payments

annual expenditures
in

sell

have

tions

into

the

were

steady

last week, with

evidenced by commercial banks in

■

of about

prices

the bonds

are

100 13/32.

which

social security
realize

it has

the

considerable

...

due

it is indicated that

exchanged for the new 2%,
12-15-52/54 will command a

premium of about

available on Dec. 18, so that commercial
this issue would have to pay 100 7/32 for

7/32 when they become
bank

nurchasers

these bonds.
The

loss

•

...

of interest during

this period of 5/32

in price for the

sold now, together with the

due 6-15-52/54, if they were

indi¬

premium to be paid for the new 2%
commercial bank holders of the 2%

cated

maturity to the extent of at least

put the

funds, if it were to

2/32 in price.

This condition does not

new

social security taxes

is that many

regard them as a means

ing inflation.
for

There is no excuse

taking our money under

guise
our

of fight¬

old

and throwing it
WLB

the

providing reserves for
age and unemployment,
into the OPA and

apply to savings

the

funds

Anyhow, if we were to mix our
security taxes up with this

social

hold-the-line stuff, the next thing
would

are

is futile,

see

proposal
fight
raise it, we can

would be

to reduce the tax in order to

deflation!

experiments.

Furthermore, the move
because

spent by the government, and thus
add to the general inflation of
bank credit and deposit currency.

lower it.

merely suit.

banks, insurance com¬

and other investors since they are eligible to
2% due 12-15-52/54 at 100 right up until the end

panies
features of the

OTHER BUYERS

NOT APPLICABLE TO

the so-called reserves.

One of the worst

':'(///^' ;■'.//:•■''■■ '

MARKETABLE ISSUES

'■

■/■'

consisting of the %% Cer¬
tificates of Indebtedness due 12-1-45, the 1V4 % notes due 9-15-47,
the 2% bonds due 12-15-52/54 and the-2V2%; bonds due March 15,
1966/71 will not be allowed until Dec. 18, 1944. ; , .
:/.• ; /
The data that has been given out by the Sixth War Loan Com¬
in

Trading

marketable issues,

the

understand,With the issues to be
such a way as to point out the
.
.
.
The
data' will be very helpful in selling these ^ securities to individual
investors, who again must do their usually important part in making
this War Loan a success.
/
In this drive the goal will be the sale
mittees

is very complete, easy to
in the

described, in

drive

fit the need of every buyer.

Manipulation would re-

purchase the
of the drive,

Situation Looks

Good

Engineering Company
offers interesting possibilities ac¬
cording to a circular issued by
Wm. J. Mericka & Co., Inc., 29
Wellman

lower

ANTI-INFLATION FORCE

the 2s due 6-15-52/54

just about in line

which may be

dollars.

various obliga¬

their savings and time deposits.

bond of 7/32, means that
the
due 6-15-52/54, presently
Thus the "reserves" are excessive. selling at 10013/32, have practically nothing to gain from the sale
of these bonds now, with the proceeds idle-until the new 2% due
And they exist only on paper.
12-15-52/54 are available for purchase by them on Dec. 18. . . . Also,
Either the Treasury would have
the difference in maturity between the 2% due 6-15-52/54 and the
to do new borrowing, or it would
new
2% due 12-15-52/54 of six months should favor the shorter
million

700

exceed

not

allowed to subscribe for only d
Additional amounts
of these bonds cannot be purchased by commercial banks until Dee.
1/T954. 'l.L^/ /:/ >"/; ■'•:/,/•:-/ /•//'// •■/;•./•
' /•//'././'--', (./""/ ;/
commercial banks

the

limited part of

$2,500,000,000 of Series E Savings Bonds, which is somewhat
than the amount sold in the Filth War Loan. . . . A
.

It was pointed out that at , this
with the interest run-off to
the date of purchase, Dec. 18, by the banks of the 2% due 12-15-52/54,
together with the indicated premium that the new 2% bonds will
sell at, when they become available in the open market, at the con¬
clusion of the Sixth War Loan. . . . If the presently outstanding
2% due 6-15-52/54 were to be sold now at 100 13/32 and the pro¬
ceeds kept available for the purchase of the new 2% due 12-15-52/54,
on Dec. 18, the interest that would be lost during this period would
be equivalent to a decrease in price of 5/32 for the 2% issue dis¬
posed of. r
■'-;i/ "'•/;/ /. ;
\ ;:/■
Based upon presently prevailing prices for the called 4%,
at

level

contemplated

of the next few years

any

interest being

V--i"

...i-

■/:/%

issues

taxable

The

any

(Much of the

STEADY

TAXABLES

■

15,

Dec.

fact that there is a security, to

1.34

For example, the taxes
collected are not kept as a true

concerning reserves are

law:

Bonds—2%v due

offered

fundamental is
the-provisions of the

even

/'/'

1952/54.
Available to all
non-bank/investors, with the commercial banks permitted to sub¬
scribe for only a limited amount of savings and time deposits/ until
Dec: *18, 1944.
May be acquired by commercial banks in exchange
for :called 4% 1944/54
;// //;.:/. /^/-v- ■//.
";"V
due March 15, 1966/71—Available to all non-bank inves¬
tors/ with

still being made to
institutions paying excess-profits taxes and holding the high premium
medium-term partially exempt securities, that these issues be ex-;
probably at least eight times the
changed for the long-term partially exempt obligations.
greatest annual expenditure in
The following changes have been suggested:
It

r"/;// .■/■/' //■;; ;'/■.

4% due 1944/54

Treasury

61,000,000

_1_

Banks___
Companies

called

$949,000,000

Banks___—31,000,000

Savings

Life Insurance

"reserve,"

the

maximum limit on

Mutual Savings

also provides for a

But the law

-V/;

follows:

Commercial Banks

"reserve."

security

social

March 15,

due

It is

again rightly emphasized that earnings placed in war

bonds

anti-inflation force, particularly against
living which has been slowly but surely rising. .
.
/

held there are a potent

and

the cost of

order

prevent

of spending be

volume

further rise, it is essential that the r

curtailed, and the way to do this is for

holders of savings bonds to not only keep those they ;
own but to put
every available dollar into the new ;
securities now being offered. . . ;
^
^
^
present

already

The

reasons

for a war

bond campaign

are

to finance the war

inflationary pressure which develops when indi¬
viduals do not do their part in buying the securities being offered
and

reduce

the

drive/ and the Government, in order to get the money to "
the war, must sell these obligations to the commercial banks,
results in new deposits and new purchasing power being

carry on

which

is something that is most certainly not needed at
similar situation prevails when the individual
holders of savings bonds turn them in for redemption. . ; The Gov^
ernment pays off these bonds upon presentation, but the money
that is used to pay off these securities must be obtained somewhere /
created, which

this

time.

...

by the Treasury.
BUYING

/•/. ■'

...

POWER REDUCED;

Because

individuals

are

:»/■" '\' '"/- /

'/^/l'-A

cashing in their savings bonds it is nec¬

for the Government to sell its own securities to the banks
the necessary funds to meet these redemptions. V
Sale of Government bonds to the banks for bond'repayment purT 1

essary

in order to get

poses

results

in new deposits as

well as new purchasing power

being created, which eventually becomes evident in rising prices. . . -V
Effect of higher prices is to curtail the purchasing power, of the
dollars received in exchange for the
bonds turned in for pay¬
;
' ' '• /"
'V '
that are held and not ;
turned in for redemption are not only a powerful weapon against v
inflation hut also are a storehouse for future purchasing power
that should he used only as additional supplies of goods and 1
services are made available when the war is over. ...

ment.

./.

Individual

•

i ■*

purchases

of war bonds

out, that the "Buy for Keeps" slogan
of the Sixth War' Loan Drive has a very significant meaning in
the light of these facts. . . . And each individual must do hit or
her very best to not only purchase more savings bonds during the
Broadway, New York City, mem¬ drive but also to hold on to the certified checks, that bear interest,
bers of the Cleveland Stock Ex¬
which is what the presently outstanding savings bonds really are,
change.
Copies of this circular since it is the duty of every one of us to bear our share of the
may be had from the firm upon
responsibility of financing this war until it has been completely
fought to a successful ending.
'
request.
Therefore, it was pointed

Volume

160 .;

U- S:

THE COMMERCIAL & FINANCIAL

Number 4336

2259

CHRONICLE

Savings and Loan League 52nd Conference Studies
Veterans7 Loans and Home Ownership

W. M. Brock Elected President at Annual

Meeting Savings and Loan Institutions

W. M. Brock, Dayton, Ohio, president of the $30,000,000 Gem<3>
The geographical
grouping of
Gity Building and Loan'Association, was elected President of the
United States Savings and Loan League Nov. .14- at the League's the districts is as follows: district
national conference on veterans' loans and home ownership, which one, the New England States; dis¬

annual

this past year

the

meeting. < Mr,

Brock

savings and loanf^
was
cooperative bank business.

was.

ands; district three, Pennsylvania,
Delaware,
Maryland
and West
Virginia; district four, Virginia,

organized

and

Vice-President

For

trict two, New, York, New Jersey,
Puerto Rico and the Virgin Isl¬

First Vice-President
and he succeeds John F. Scott, St. Paul, Minn., as head of

52nd

its

Was

elected Henry P.
President

the

League

Irr, of Baltimore*
Baltimore' Fed-

elected

the

Secretary

League for his 49th term.

States' Savings

Vice-President

Executive

United

continues

Bodfish

Morton

■

the

and Loan

President

The

new

; directors

for

elected

the twelve districts of the League

;v.~ b; /

are:

District

<■)

\'' b;;>;

President

.b'b;

■

H. Pierce;

Henry

one,

Merchants--Co¬

the

operative Bank of Boston; district
two, Fred G. Stickel, Jr., Newark,
N. J., attorney; district three, Nor¬
man
E.
Clark, Executive Vice-

Federal

the S First

President

Savings and Loan Association of
New Castle, Pa.; district four, J.
F.
Stevens;
Secretary-Treasurer
of the Gate City Building
and
Loan Association of Greensboro*
.

C.; district five, E. J.

Vice-President

Broadview

the

Rupert,

and Loan Co. of Cleve¬
land; district six, John C. Mindermann, Secretary of the General
W. M. Brock
\
.b
Building Association, Covington,
eral Savings and Loan Associa¬ Ky.; district seven, Walter J. L.
tion^ and active in post-war plan¬ Ray, Vice-President of the Stand¬
ning activities in the State of ard Savings and Loan Association
Maryland.
b.,': of Detroit; district eight, Charles
Mr. Brock is also a member of M. Pors, Secretary-Treasurer of
Marshfield
the council of the international the
(Wis.) Building
Loan
Association;
district
organization
of the
thrift and and
liome financing business, having nine, L. W. Grant, President of
Federal Savings and
been /elected at the last interna¬ the Home
tional
congress
of the business Loan Association, Tulsa, Okla.;
Savings

held

been

Zurich

League's

mittee

Com

important
on

Policies

its

Trends

and
He

and

Committee

district

A. C. Bigger, Presi¬
Metropolitan Building
of Dallas;

ten,

dent of the
and

Loan

Association

F. S. McWilliams,

district eleven,
President of

the Fidelity Savings

Constitution

its

Committee.

has

United

the

Economic

has also served

has

1939.

chairman

States

and Loan Association of Spokane,

life¬

Wash., and district twelve, George
B. Campbell; President of the In¬
dependent Building-Loan Associa¬
tion of San Jose, Calif.

had

long affiliation with the Gem City
Association
in
Dayton,
having
started
40 years ago
and being

North

Carolina,

South Carolina
and District of Columbia; district
five, the State of Ohio; district
six, Kentucky, Tennessee, Missis¬
sippi, ; Alabama,
Georgia
and
Florida; district seven,
Illinois,
Indiana
and
Michigan;
district
eight, Iowa, Nebraska, Minnesota,
North Dakota, South Dakota and
Wisconsin;, district nine, Colorado,
Kansas, Missouri and Oklahoma;
district ten; Arkansas, Louisiana,
New Mexico and Texas; district
eleven, .Idaho, Montana, Oregon,
Utah, Washington, Wyoming and
Alaska;'; district twelve, Arizona,
-

Representatives

the

Amer¬

ican

Legion, the Treasury Depart¬
ment, the CIO, the real estate fra¬
ternity, the Veterans' Administra¬
tion, and government instrumen¬
talities in the housing field were
speakers, including Harry W. Col-

Kansas, Past Na¬

mery,

Topeka,

tional

Commander

the

Amer¬

ican

Legion; R. J. Thomas, De¬
troit, Chairman of the CIO Com¬
mittee on Housing; John W. Galbreath, Columbus, Ohio, President
of

the

Real

Estate

Blandford,
John >H.

Fahey* Commissioner of

veterans' loans and home
«*-

benefits

the

Palmer House
at

Chicago

the
who

devoted

their

veteran

the

who

justment
of
1944,
(the so-called

a n

the

Charles M. Pot¬

sistance

League,

Horace

and

Counsel

of the

Mr. Scott, as spokesman

for the

General

to us to see to it that no
rightfully entitled to receive

John F. Scott,. St,

estate

analyst;

Paul,

President

States

United

the

Bodfish, Chicago, Execu¬

tive Vice-President of the League;

Celiarius, Cincinnati, Secre¬

Russell,
Chicago, General Counsel for the
League, and A. R. Gardner, Chi¬
cago,
President of the Federal
Horace

tary-Treasurer;

Home

Loan

Bank

Chicago;

Atlanta Federal

Allen

In New

Wis.; Hugh E. Rosson, Portland,
Oregon; Hugh H: Evans, Los An¬

Quarters

son,

Loan Asso¬

Savings and

Pflugrath,

Milwaukee,

geles, and A. C. Steinhauer,

"ATLANTA, GA.—The Atlanta
Federal

is the veteran who

cate

our

desires to lo¬

largest metropolis.

to me most clear that if

enterprise

loan

Madi¬

that

mand

well,

will properly

de¬

and

nation

aroused

on the home
do this 'G. 13

doesn't

front

financing

somebody

about

and

Uncle

Street.

felt

that

Mr. Scott

location will

riient

service

the

insure

suggested that despite

made

others for celebration of V-E

day

whatever

in each

plans

are

savings

particular community, the
and loan managers an¬

nounce

to the world that their in¬

stitutions

will

"to

business

remain

additional
as

for

war

bonds

pledge

(Continued

Loan

and

1st

unceasing

011 page

Association

der

been

home

savings

and
long

owning

by making
simple and con¬

22 Marietta Street

repayment plan.

During its existence the Atlanta

First

Mortgage
Mortgage

Loans,

Insured

mulated

substantial reserves, and

all
-

local

Officers

than

10,000 loans,

properties.
and

directors

' Stock

TJ.

4,(»24.(j4

Hand

are:

(written

off

tary

and

Ginn;

Ward

Attorney; C.

Ayers;
Dr.

Allen
Harry

King; Dr. G.

Adair;

W. Clapp;

B. Johnston:

Grady Poole;

Wight.

(10,000.00

2,000,000.00
5,180.75

and In Banks_

120,421.05

and
as

Bank

None

1934

1935

55th

1936

43.399.131.66

56th

1937

46.784.020.67

57th

1938

48,413,076.24

1939

50,253,515.75

1940

1941

51,792,313.18
54,216,152.33

35,989,219.58
39,834,747.90

1942

56.734.244.06

62nd

'1943
1 1944
r.'b

60.093.956.07
65,268,009.06

63rd
Home

Loans

Other

in Process——

18,508.40

and

Undivided

Profits

Latest Semi-Annual Dividend at Rate of
Accounts Insured

Member Federal

3% per Annum

Corporation Trust Funds

LARGEST FEDERAL
Home

Federal Savings & Loan

$9,718,242.10

Building Association
"America's

to $5,000

Invite Investments of Individuals and

GEORGIA'S

PERPETUAL

897,827.90

—

1.00

purchased)

-:;r

438,703.77

___L

Liabilities

Reserves

Equipment

200,000.00

money

$9,718,242.10

32,046,298.20

Investments—,. $8,103,202.03

—

Borrowed

War Bonds

30,598,813.40

1933

Advances, Federal Home Loan

Bank

———:—

Furniture

Walter

Loan

Government War Bonds.

and

2,299,855.90

Home

1932

8,447,613.08

61st

(Quickly
at par)___—

Accrued interest

Cash

McElreath,
President;
Davis, Vice-President and
Treasurer; W. L; Blackett, VicePresident; W. O. DuVall, Secre¬
.

Atlanta 3, Georgia

LIABILITIES

Savings

Association's Shares

Federal

has made

FHA
converti¬

ble into cash

investment

accu¬

Ground Floor

$5,228,158.70

Loans—

Loans

has

Building

—

26,749,387.08

54th

1944

ASSETS

Ural dividends to its savings and

members,

30,

Organized 1928

consistently paid lib'-

Federal has

SEPT.

1931

60th

venient monthly

58th

STATEMENT

ATLANTA FEDERAL SAVINGS & LOAN ASSOCIATION

FINANCIAL

1922

52nd

H. F. Celiarius

1912

50th

Henry P. Irr

CONDENSED

has

encourage

loans

term

Association

3,428,144.88

59th

Bodfish

Morton

•

the

2,353,359.39

53rd

insurance
of accounts up to $5,000.
From
its beginning the main
of

1902

51st

thereby securing

purpose

900,822.64

31st

Federal Charter on Aug. 26,

1935,

$27,843.28

1892

*41st

by the State of Georgia

chartered

ip, 1928,' converted into a Federal
Savings and Loan Association un¬

1882 Resources

21st

first,

was;

year

Perpetual

11th

Federal- Savings

Atlanta

The

Loan

Eank

System

Insurance Corporation

Largest"

WASHINGTON, D. C.
EDWARD

that day

expression of Thanksgiving
European Victory and as a

sacred

Growth of the

members of the Association,

for

fellow

Wis.

loan

open

those

serve

Americans who desire to purchase

better

savings, and

will

himself."

the

improved facilities at .this convey

some¬

that somebody

Sam

the first floor at; 22 Ma¬

In that eventual¬
ity, somebody will do something
thing about it.

quarters in the main banking

room

rietta

appears

ciation has-removed its offices to.
new

much

financial as¬
acquiring a home as

entitled to complete

Savings and Loan League;

H. F.

the nation

private

league at its opening session, on
Nov. 13 told its members that "it

Morton

to the smallest

returns

who

eran

tion; John F. Scott, retiring Presi¬
dent of the United States Savings

Secretary

operation has to be just
as complete in its territorial cov¬
erage as was the HOLC. The vet¬
hamlet

Loan

lives.

own

Scott

ter, Chief of the Home Loan Sec¬
tion of the Veterans' Administra¬

and

fellow

"This

American Legion;

one

York, Chairman of the Post¬
war Savings and Loan Program
Committee; Francis X. Pavesich,
Chief, Loan Guarantee Division,
Veterans' Administration; Curt C.
Mack,; Assistant
Commissioner,
Federal Housing Administration;
Roy
Wenzlick,
St.
Louis,
real

us.

their
F.

John

Commander

Njational

Joe'—a

'G.I.

willing to invest his life
It will be a distinct and

by enabling returning servicemen
to find security and stability in

Past

s.,

pri¬
itself

security and stability of the nation

Topeka,

mery,

prove

definite contribution toward later

Col-

was

for

Rights") were
H.

enterprise

invest

Re-

Bill

associa¬

capable of this financing," he con¬
an opportunity

"G.I.

our

considering all
involved, will realize
fully

tinued. "It will be

for in the Ser¬

ability

our

accept this challenge to

vate

provided

vicemen's

after

factors

and

loans

want

certain that

tions,

remarks to

a s

the

willingness to serve him.

and

inclusive.

Among
speakers

for

denied,

Nov.

III

Title

under

Servicemen's Readjustment Act is

New

Vice-President

1st

ing

ministration; Gardner W. Taylor,

Vice-

President

Savings and Loan League held a special Con¬
ownership along with its 52nd

Meet-

the Federal Home Loan Bank Ad¬

for the past 20 years.
H. F. Celiarius, Cincinnati, O.,
•

Annual

the manager

Executive

The United States
ference

League.

Agency;

Housing

League Conference at Chicago Hears
Pledges Support

Veterans' Loans and Home Ownership.

Making Effective Home Loan Provisions of the Veterans' Readjust¬

Russell,

Administrator

Jr.,

National

the

ment Act.

John

Boards;

Association

National

United States Savings and Loan
Addresses

Act

California, Nevada and Hawaii.
,

And Veterans' Loans

BAL.TZ,

Secretary

2267)

sup-

•'

By JOHN II. FAHEY*
Commissioner, Federal Home Loan Board

•
.

;

■

Administration

Fahey

Need for Low Cost Homes to

Institutions in Influencing

ities of Lending

In Promoting Home

combined forces of

The

States face the

challenge of a great

opportunity.

and their pos¬

one

are

in an
atmosphere of
living

;

community to an¬
observed the striking

The

from one

other

stirrings and
murmurings
of

them

make

have

differences, not alone in architec¬
tural design but also in the gen¬
eral cleanliness and attractiveness
of the structures and their upkeep.

John H. Fahey

impending

the

improved areas
physically attrac¬

ance

$100,000,000,000.

tion

that

have

shall

ness

normal

their inhabitants

lift

what

level?

above

call

ashamed

our

Who cannot name

that

this .business.

We know that by

communities

better

LEGAL
FOR

SAFETY

TRUST

and

Association

FUNDS

PROFIT

purposes.

First Federal
of

enable

of 1929,

the list

$4,800,000.00

DURHAM, N. C.
VIOLA C. BAGWELL, Sec.

MOHAWK
SAVINGS

AN INSTITUTION

AND

WITH CONSERVATIVE

LOAN ASSOCIATION

NATIONAL NEWARK BLDG.

MANAGEMENT

14 Commerce St.

Newark 2, N. J.

produce better houses
hold the prom¬

and

new

ments
and of

improved achieve¬

Institutional

Funds

for

$33,000,-

both public and

350,000 fam¬

comforts and personal

convenience.

They include better
heating and plumbing, further re¬
ductions

waste

building materials,

saved

Accumulated savings were
on my

fourth

list of favorable factors.

fifth is one that must

tion,

reliable air condition¬

greater adaptation to family needs
and

community standards.

While

found

time

materially
the

which

add

resources

and

maintenance

our

prospect

Most of

them

now

and

use

housing.
ready for

better

are

increasing^

both in kind and
quantity, will be available as rap¬
idly

supply,

demand requires.
on the list is our new,

Seventh

perhaps I should

say our prov¬

capacity to produce. This ca¬

pacity, supported by a large sup¬
ply of labor which, after the vic¬
tory of

armed forces will seek

our

employment, confronts
acute

maintain

pacity,
penalty

tion over the past
duced improved

decade, pro-

Federal and State

than is required for

doubt

use.

THE NATION

comparable associations by Corporate and Private

holds

Resources

Trustees, Insurance Companies, Public Bodies,

etc.

adequately measured the cost
country of our most recent
depression. None of the figures I

our

have

human

and

measurable

costs,

SAVINGS and LOAN ASSN.

billion and if fully measured it is

apparent the real figure would be

$100

billion

LaSalle

Chicago

Street

FEDERAL
LOAN

over

$5,500,000

ASSOCIATION

PETERSBURG

Raleigh. W.Greene, Pres.,

must

capacity to produce that we shall
not slip backward but shall,, in¬
stead,

forward

standards.

Now these

ascribed

seven

items which

briefly de--

favorable

creating unusual
but

higher

far

•>

have enumerated and

factors';^:

opportunity ,gre;

few of those

have

our/

You
not ohly?

current and immediate assets.
can name

should

more,

and more

named

but

frequently

emphasized lest the weak in heart1
lose zest and courage

for the work'

ahead. For this occasion I

sure

enough have been named to make
clear

that

With

the

stage,

set
.

items

these

examine

deal

Institutional Investors

First Federal Bldg. ri St.
Assets

more.

prepared to make such use of our

tunities that

Oct. 31, 1944

FIRST
of ST.

general

It is clear that the
exceeded $200

for'

Opportunities of Home Financing,

SAVINGS AND

FEDERAL

and

costs

Petersburg 4, Fla.

mind,

few specific

before

are

let-

oppor-t

us.

I shall

•

three.

with

First, fi¬
nancing, so far as practicable, new
construction for the big market of
only

lower

CHICAGO

the

take, account

seen

spiritual

Florida,

$6,174,403.37
Inquiries Invited From

anyone

has

higher endeavor.

largest on the West Coast of
United States Charter No. 3.

very

If,

productive ca¬
have to pay in

our

may

efficient

through
lack of courage we fail

responsibility.

neglect

not only

opportunity but

capital costs.

can

test

and

en,

That need rates of interest to borrowers, re¬
which are ob¬ duced dividends and developed
vious to all of us. It grew during more
effective
procedures
for
the depression and has never been building up
and protecting re¬
met.
New housing that should serves. In the process of dealing
have been produced and would with borrowers our experience in
have been produced had we not the past few years has taught us
entered upon a world war is larger an important lesson, namely, that
in volume than many have real¬ borrowers who are poor risks at
ized.
In addition to new housing
high rates of interest and on short
we have had large items of main¬
term repayment schedules become
tenance and repair which consti¬ better risks when interest require¬
tute such serious neglect as to re¬ ments and the amount and period
quire more than ordinary invest¬ of amortization are adjusted to the
ment.
When the requirements of borrowers' capactiy to, repay. ;
new housing and of maintenance
Not only have we made, im¬
and repair are combined, the sum
provements in thrift and mortgage
total is greater than any we have
lending practices which equip us
known.
The. demand is not only
to deal more effectively with fu¬
potential, it is actual, and we shall
ture needs, but we have, as a re¬
have a convincing demonstration
sult of Federal and State legislaof it as soon as the war ends and

have

develop

techniques of home construc¬

have gone a long
way from old procedures. Instead
of serial, terminating and variety
of
special, almost unintelligible
plans for the encouragement of
thrift with their fees, fines and
forfeitures, we have simple share
accounts that everyone can under¬
stand. Instead of the old dropshare, cancel and endorse, sinking
fund plans of loans, we have the
simple,
direct reduction plans
which is easily understood and
followed.
We
have
improved
methods of accounting, lowered

tion

your

past decade we

proportions,

new

have been in

minds at the outset. I refer
improved methods of thrift and
home mortgage finance.
In the

country has waged a

our

of vast

war

THIRD

use

prefabri¬

ing and refrigeration, a larger va¬
riety and greater efficiency of
household appliances, and withal

large

This Association,

the

cating and
standardization
of
parts, better lighting and ventila¬

immediate

will

hundreds of investments placed with us and

211

construction

building

new

depression which' preceded,

begin.

the

before labor
and building materials are freely
available, the American people
will build the houses which they
have been unable to build during
the war and during the years of
that

is the accu¬

construction

tech¬

housing

improved

few take into account the

well-balanced

for

ise of

enlightened
-

savings

$100,000,000,000,
together with additional billions

have attractive
well as unattrac¬

our

alone attained the

Obviously, with

organizing these

list

niques. These, if put to use, will

is large for reasons

•

Third

.sixth factor I propose that;

mulated housing neecj.

ASSETS OVER

'savings & loan ass>n
■

and

year

private housing only
ily units.

In the final analysis we

aroused,

one

terials we built in

shall
have what we genuinely and ade¬
quately desire. Many planners are
doing careful, creative work. They
have a right to expect intelligent
study and use of their plans and
our
full cooperation in adapting
them and making them serve our
tive.

INVEST with

at lower cost. They

unprecedented total

can

!we'

000,000. However, because of war¬
time limitations on building ma¬

quate resources—resources which
we
have never fully put to use.
resources

and

000,000,000

•

debts, and' save
in other ways. If allow¬
is made for tot,al individual

can;and must make them. Even
today,; however,
they together;
constitute a; bulwark which, in a.
very real sense, has revolutionized

American
business.
Everybody is doing it, and much
now in process is being done with
realism and intelligence.
Clearly
there
is widespread
determina¬
everyday '<

without putting it in
can and do buy

They

In the prosperous year

are

.%■

are by any means as ser-.
viceable and truly effective as we-

ments

of great value that Amer¬
has become housing conscious.

one

satisfied that these modern instru--

savings in all forms, this total in
the last four and one-half years
has exceeded the staggering figure

augury

their great' potentiali¬
of us, I am sure, is;

ties v

money

and those of us

■'

money

bank.

well;
No

houses,' repay

con-

everywhere manifest, When we come upon such places world for ourselves and our chil¬
whose business it
our
very
thoughts are elevated dren. All are ready to give lip
is to deal with thrift and home fi¬
and we think of the citizens of service. A large number are doing
nance are deeply aware
of such such communities as living and more. Business men of practical
challenges as define opportunity
bent are conscious of the steps
acting on a higher plane of human
and make clear our duty.
In this endeavor than their less enter¬ that must be taken to achieve
company of specialists I need only
substantial
improvement.
With
prising neighbors. The slovenly,
remind you of their character and
unkempt,
bedraggled
commun¬ the engineering and management
of what they mean to us as we
ities that pull down the mental as skill that they apply to their own
face the future.
.
well as the physical state of the personal and business problems,
First of all, what are the favorthey are preparing patterns and
area leave their stamp upon the
entire population;
In retrospect blueprints which call for wiping,
*An
Address
made
by Mr. we think of the citizens of such out our slums of blight and deg¬
Fahey before the United States communities as partly besmirched radation and substituting com¬
or
tainted by their environment. munities of beauty and healthSavings and-Loan League, Chi¬
Who cannot name towns and cities giving comfort and convenience.
cago, 111., Nov. 13, 1944.
We all know that we have ade¬
that by their physical attractive¬
change

development' of the Federal
Loan Bank System or the

Home

became

move

pos¬

sibilities.

housing

I. heed not trace here the history
and

ica
when our national income reached
in the United
My second item on the list of its then all-time high of $82,000,housing conscious
features
is
planning. 000,000
earlier than others and some of favorable
we
save
almost
$9,these communities promptly took Today the air is full of planning— 000,000,000. In that year we built
not in Government
circles only 509,000
action.
The results are apparent
family
dwelling units.
to any traveler; Those who by any but what is more significant—at Last
year,
our income
reached
the creative and working level of the much higher level of $148,of our
means
of transportation

unusual

-A

■

large figure does not repre¬
total, for people can

save

sciousnes in these

Some communities

conscious

that

.had.

States

at least vague¬

than

security hitherto

and

protection
unknown.

sent the full

entire coun¬
tive, the consciousness was cer¬
.housing conscious and de¬
tainly
an
important
factor
in
a quality of housing for all
bringing hbout a change. It is an
our people better than we have

ever

Every

must

one

blind

to them.

that unhappily are far below
level?
How fortunate
are

took

approximately $54,000,000,middle of this year
savings had grown to an

estimated total of $95,000,000,000.
This

mands*

c o m-

pletely

that, both now enjoy a degree

By the

these

try is

enormous.

suppose

talled
000.

they who can truthfully say they
are citizens of no mean city. While

today practically the

public benefit
are

and

list would be long. Let us
consider seven only. At the top of
the list I would place the fact that
your

precedent

sibilities

You know them

able factors?

factors is with¬
out

in the United^some
Our present array that

and home ownership so

of thrift

in Europe, individual savings in
Federal Sayings and Loan InsurA
savings
and
loan
associations, ■ance'.Corporation. You? are inti¬
banks, insurance companies, sav- mately; familiar with. both ~— with
ihgs bonds, and similar forms to¬ their facilities, benefits and uses,"

Community Welfare.

thrift and home finance

favorable

and

Stresses the
Responsibil¬
Investments in This Class of Homes and

Ownership, Security And

shortly after war-started

of 1939,

of Private Savings, Now Exceeding $100 Billions.
Sell Under $5,000, and Predicts Greater

The Large Volume

machinery for the encouragement 1

height and, at our current level
of income, will continue to grow
in enormous volume. At the end

Among the Factors Which Indicate a Large Increase in Home Building, Mr.
Lists the Nation's "Housing Conscious" Sentiment; the Housing Shortage;

clearly favorable

fourth and

,factor, is the Accumulated savings
of the American people. ' These
have reached an unprecedented

Loan Associations

Post-War Role of Savings and
■

Thursday, November 23, 1944

COMMERCIAL & FINANCIAL CHRONICLE

THE

2260

income

wisely

extending

families;,
credit

second,,"
for

the'

protection of the home purchasing,
home financing borrower; and;

third,

taking

fuller

part dk

neighborhood activities as a means,
of aiding in community develop-*
(Continued on.page 2265).:,..;
.

Volume

•

'v-

•

^. 'X
.y-.'X"

By JOHN B. BLANDFORD, JR.*

Bodfish Favors Government Credit

Industry's Post-War lob

Administrator, National Housing Agency

■'

* ?

The Housing
-

.«

Aid in

Asserting That There Is an Estimated Demand for 12,600,000 New Houses in the
First Decade of Peace, Representing a New Investment of More Than $50 Billions,
Mr. Blandford Stresses the Need for Broadening the Housing Market to Serve the Re¬

The Extension of Mort¬
gage Credit to These Classes Will Therefore Have a Broad Influence on the Housing
Industry. Lending Institutions, He States, Can, With Federal Research Assistance,
Foster Sound Construction^ Good Planning and Neighborhood Development. Sees
Government's Role as Supplementary to Private Enterprise in Planning and Pro¬
viding Homes and Giving Aid Where Assistance Is Needed.
quirements of White Collar Workers and Wage Earners.

<$—

The

housing industry,—the home financing industry and home

construction industry—in
of

eras

s t v e.

all its branches, is

However, the main focus of

pro¬

chal¬

duction

dimensions

crowded

rials

the

areas

;

t i

victory.
It faces a huge

needs of

potential

the

built

ket

the
from,
delayed

war,

long
replacement
of

from

John B. Blandford Jr.

substandard

housing,

and,

sheer numerical deficiency

in the supply of housing as com¬

pared with present
tive family needs.

Housing Agency

have recently

estimated—and

think

conservatively—that all
up to a potential
demand for 12,600,000 new houses

these factors add

in the first peacetime decade,
suming
ment

reasonably

full

throughout

the

This would represent
to

$60 billion of

as¬

employ¬
economy.

perhaps $50
housing in¬

new

vestment, and would leave

siz¬

able proportion of the job still to
be done. But these are all poten¬
The actions to be taken and

tials.
the

decisions

made

the

housing front during the next few
will determine

years

will

leader in

full economy and a

the

alter

ica

war.

emphasizing

the drive foil

better Amer¬
,"

■

mensions of the post-war housing

■jchallenge, I am not for
ment forgetting that we
a

nation

ligations

war

this
a

one-fpurth as great as all other

you

that large production year for the

effective,
that

essential

new

household

be profitable to take a fresh look

cooking

industry itself,

most

significant
of

us¬

tive

The

tremendous

size

and

complexity of its
organization, and on the interrela¬
tionship and inter-action among
on

the

all its parts.
What

Complexity

are

its

scope,

the

;X>

'.X

Housing Industry?

housing

heating and

the

Housing

much

for

maintenance

the magnitude

ing construction job, which ha3
■!b'een indispensable to the maiv
power
mobilization required to
re'dch our present huge levels of
(,War production. Performed under
this' has been

job of the builders, con¬

war

costly to the
than
direct
building
public funds. ■
■

taxpayer
with

will

"The

to be years

appear
investment.

pieet

housing

any
.

small business. In

estimated

that-there

1938, it
were

An,

the

and

built

sold

vise

some

with
to

our

this

area,

period

post-war

10% down

onja.

payment basis over
years. We shouldfbe

period of
able to de¬

plan and arrangement

position

strong reserve
business

and

open

for home ownership that

is not now being

served." '

PBGH Railways Attractive
First of New York Corporation,

way.

going

are

70 Pine St., New York

prepared

had from

City, have

special analysis
of
Railways bonds and

Pittsburgh
stocks, copies

which

the firm

be
request.

may

upon

general busi¬

ness

activity than

seen

in this country

have ever
with the ex¬
ception of the pressures of war
time," he said. "This coming year
the world is going to; move back
into a more nearly normal econ¬

with

omy;

rials,

civilian

mate¬

labor
availably
possible a resumption

make

home

civilian

"The
to

to
of

construction.

years

known

the

going

are

housing era,

X\v

c;e\AV

was

75,000

Otv- #

one

houses in that]

shelter,

(Continued

on page

2266)

iVt*

^Tte^e
at*'

builders in this country who pro¬

37,000,000 dwell¬

[the

involves

ownership

operation of almost 20,000,000

CURRENT DIVIDEND RATE
All
up

accounts

to $5,000 by

Tvv

C*^*Vete&'

2%%

insured

agency

the Federal Government

and

Inquiries Invited

ren¬

Safely of Your

housing units of all types, of
over 16,000,000 are located

in non-farm

areas.

maintenance

and

INVESTMENT

It includes the

repair

of .'our

INSURED UP TO

housing supply; expenditures for
these purposes are estimated to
have averaged over $700,000,000 a
year

during the past 15 years.

FEDERAL

$5000

AND.

945 SEVENTH W

SAVINGS
ASSOCIATION

SAN DIEGO, CALIFORNIA

The financing of housing is one
of

the

nation's

enterprises and

major
one

financial

of the major

outlets for the investment of

ings.

The

mortgage
on

tal

debt

non-farm

sav¬

Resources

outstanding
of $24,000,000,000

currently

housing

over

$2,400,000

ORGANIZED

1887

represents

than three-tenths of the to¬

private i debt

States. Next to food,

;

tfni-e&tmenf ef^huht <j4cccunt
WtmcfaMmwled

,V.

the

war

-It;-.

effort,

and.

further needs for war
they may
develop;

Franklin
SAVINGS

AND

address

Blandford

made'

before.

the

States.Savings and Loan League,

$30,000,000.00

X *A S S O CI AT IO N

°f Richmond
Assets

over

We Invite

$5,200,000.00

Yoiu; Inquiry On
Of

Trust

Funds

FEDERAL
■

■'

AND

SAVINGS
■

LOAN

ASSOCIATION
.•

INDIANAPOLIS
'

iff

Mr;

United

Chicago, 111, Nov. 15, 1944.

ASSEJS.. OVER

F;ederal

L O A

Investment
*

homes

wherever
the
feasible for private

This

interests

nominal "down payment.
I expect
to see 80 to
90% of the small

two-thirds of the

construction job is now
substantially completed, although
we
all .have the continuing obli¬
gation to see to it that our stock
of war housing is used to the best
.

some

five years

with

acting

program,
risks

;

be devoted

probably

slum clearance in

will

that

acquired

He said that in the next 10 years
2
or
3
billions
of
government
money

homes-

which

would be much less

which financed

guaran¬

tees

small

bought will

largest industrial field for Ameri¬
can

the United
housing takes
tractors and
workers who pro- the largest share of the consumer's
•duced the housing; of the public dollar; expenditures for rent or its
officials
who
planned
it
and equivalent have averaged 15% of
where necessary managed it," and all consumer expenditures, while
household operation has absorbed
; of the private lending institutions
the

ment

Bodfish

Morton

ing

Let's look at
the complexity of its organization.
House building is probably the

is built
financing, year; two-thirds of these produced
replacement of only one house -apiece but ac-

supply

which exceeded

tal

war; effort.
It has
$6 billion war hous-:

difficult conditions,

aid of govern¬

industry

and

nation's

with the

areas

that

homes

small

will be constructed and the exist¬

the housing industry.

around the production,
the

veloping slum

the

railroad era, an

Industry

;

duced

The

furniture,

apparatus,

pri¬

capital
might have a
part in rede¬

Because

sense.

preoccupied with
the specialized problems of vari¬
ous parts of the industry, there is
sometimes lacking a full perspee^
us

was as large as
expenditures for

refrigerators;
washing machines, sewing ma¬
chines, radios and phonographs.

ing that term in its broadest and
many

expenditures

industry and
combined

into these matters I think it would

at the housing

com¬

passenger automobiles in

the

But .before

goods

exceeded

auto

approach
moving

concerted

job,

for

durable

that

thermore

had

which

ob¬

and resources until Ave'
have won through to victory in
•Europe ahd the Pacific.
'
■
The housing industry, like alt
other basic industries,' has been

than

for

consider

still

energies

carried out

which

mo^

our

have unquestioned priority on our

deep

bined;

are

the f war effort must

was

housing job and present,for your
consideration some of the steps

one

that

and

land,

excluding

$2,850,000,000,

House

week.

as we

ing units at the last count in 1940.

broad :.dir

the

site. Its estimated

and off the

consumer

potentials will become
whether or not housing

reality,
a

whether

these

not

ac¬

with

an aver¬

the broad outlines of the post-war

In the National
we

and prospec¬
;-v£v

consider to be

yearly requirement for a full
housing program after the war,
But this output produced an esti¬
mated total of 1,900,000 jobs, both

the

vate

age

Housing Job

I would like to explore

though

even

na¬

confer¬
at

said

reached the level called

construction cost of

Post-War

the chief industry of a particular
period has been designated. Fur¬

Sav¬

League's

full

of what

tion.

and

slums

other

all close to

large-scale

and various other ways by which

ings and Loan

housing.

development of our
housing potentials. In 1941, a to¬
tal of 715,000 new housing units
were
built, less than three-fifths

war

stage of concrete,

taxes

enterprises,

never

for

housing. We are
getting nearer and nearer to the

during

League at the

of the nation's major indus¬

trial

toward post-war

construction

from

one

has

effort/but they are also
closely tied in with the first steps

deferred

from

are

c e-

United

v e

States

The production of new housing

returning veterans.

These objectives

mar¬

V i

automobile era, a good roads era,

President
the

rev¬

j~r~r

just

last

of their total

—.—

Execu-

fish,

Palmer

existing housing, and will permit
a
start on meeting the housing

Bod-<$

Morton

paid

place where there
was suggested by

need, in the rebuilding of the slums,

ence

mate¬

the years after

real social

tional

enues

and

final

;

from 20 to 60%

new

manpower supply per¬
mits. This will also help ease the
inflationary" pressure on prices of

lenge of un¬
precedented

Use of Government insurance of credit in the

principal financial supports of our
municipal services; cities secure

housing construction is
shifting to building as much
standard housing for general use
in

Finance Slum Clearance at

now

faces

13%. The taxes

Savings and Loan League
Loans, Private Capital Could
Less Cost Than by Use of Public Funds.

Holds That With Government Insurance of

—

Rebuilding Slums

Executive Vice-President of the United States

residential property are one of the

wartime

its", long
dedevelopment.
The
industry

—

another

the threshold of one

deci-

the

2261

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4336'

160

...

"21 Virginia Avenue

Indianapolis, Indiana

THE COMMERCIAL &

2262

...

Philadelphia
I

300%

favor

avoid

time

interests

compulsory

seems

military train¬

placing our proper
dispute with Russia.
to me that if we have

peace¬
It may

time.

that

Russia,
generation at least, the war will
come

within

the

result

entirely biased

nected

that

views

will

surely

experience
selective

ser¬

vice work dur-

ing

•

Stone

absolutely

need for

four

past

the

years>

convinced

the

general military training

with

case

next few years,

settlements

con¬

the present war.

makes

difficult

for

him to

and

see

that

claim

greater requirements
out

one

United States right after

Compulsory
for

United

the

military
States

"Sun."

training
should

would
little
in

(2)

war;

be
to

winning

use

war.

Training of
the
youth of
this country
would not

strain

re¬

nation

could

basis.

stand¬

powerful air force

huge navy for many years

Surely

those

forces

kept on a voluntary
"•
777-'/7'v>7 ,7;':'' V
No Peace Guarantee
be

opposed, I believe, for two main
(1) It would not prevent

reasons:

army,

thereafter.

SHIVELY

the war.

All, I believe, favor a large
and

Financial Editor, New York

year or so.

Compulsory military training of
men in rotation has not
been a preventive of war in Eu¬
rope, nor has it been particularly
effective for waging war. In our
time
the
aggressor f- always
has
young

planned war long in advance, and
in so doing has gone much be¬
yond any training system now
proposed for us.
Even Russia, which to accept
the Russian viewpoint, was merely

alone

facilities

declared
s

now

them

;

law

well

the

;

the

Berkeley Williams

—

Churchill, Sta-

lm and Roose¬
Churchill hag
been declared to be "fascinated"

service, nor could the army
a man out
of a weakling.

earth will

re-

quire that

our

nation

strong.
f

•£

0r m

What
this

-strength
L.

Gov.

Saltonstall

world

der

Conditions

at-

titude

throughout the

'•

777/7
No.; 1 real-

three

the- Senate

end/

coun¬

ity is
.

a'jr.

ties."

at
than
Men

sel with reali¬

another-

71 shall devote
myself to thht

com-

take

recurrence:

not

for,

quick-

developed
prevent the

pulsory mili¬
tary; training,
to

7 ;
ample and moral uplift for those
unfit
for or otherwise exempt velt—towards

from

ly
*

will,

take it.
in uniform set no great ex¬

force

pass

••

used

the convenience of the boys

rep¬

tants, and has

vide, the Government could better
with¬ spend the money for that purpose

Surely no
suggests disarmament for the
for

will be
*

Protes¬

000

in men and

compulsory training for young

men

the machinery

resent 26,000,-

wise

and

will

the

of Christ in

America, who

later start in life than other¬
would be the case, and he
will have been thrown ■ into an
environment where, in spite of
get

Federal

the

includes

Council of Churches

the advantages

already will have a

material than we could meet

ing

in peace years.

CARLTON A.

gtrnm

■ ■■

■

Peacetime for America?

himself, he will be contaminated
by
virtue of huge trained force sufficient for with the prevailing army notion
that the smart boy is the one who
being
Chair¬ our needs.
man of a Local
As for Germany and Japan, we can avoid unpleasant tasks.
'
Draft Board are bound to keep in force com
Physical Training Aspect
under
Selec¬ pulsory training until both nations
If it is not possible for every
tive
Service. are helpless.
After that, the task
However, as a of keeping them impotent surely boy to secure a year's physical
result
of
be accomplished with no exercise that the army might pro-:
my could

Irvm

•

■

much

of further educa¬
tion.
The boy who does not in¬
during the next tend to study further at least will

fight

ing

—

■

America had been prepared Hitler
to implant the scheme seems to possess ad¬
into our soil the concept of total¬ vantages
over
alternative meth¬ would never have gone marching
or would have been stopped dead
itarianism, the great breeder of ods which we should frankly con¬
7
t
cede. Also, we should agree that in his tracks? war.
•>■ '
;7.
",7 ' ■
■
it would be impossible for Con¬
The idea that military training
U. S. SENATOR-ELECT
of a few months to a year, or even gress to phrase the law so as to
LEVERETT SALTONSTALL7
prevent an Administration from
longer, will be good for young
Governor, Commonwealth of
men is of doubtful soundness.
If using the scheme for indoctrina¬
tion purposes if it so desired.
Massachusetts
the youth intends to go to college
he will thus have his career as
The question of compulsory mil¬
7.
BERKELEY WILLIAMS
a student interrupted in a manner
itary training is just one phase of
Richmond 19, Ya.
that for many would mean per¬
the vast problem of world peace
Pious
pacificists
who
op¬ and security.' Of course, I hope
manent stoppage, just as the lure
and pray that
parts of the world and at the same of good wages for a boy of 18 pose compulsory military training

have
regarded as their proper
(Continued from first page)
life and put him in the army to spheres of influence; namely,
Eastern Europe; lands bordering
give him military training. Let's
on India, Persia and
Turkey; the
hope we do our job so well when
Balkans. We never have felt that
we win the war that we can make
we
had any business to meddle
ours
a
peaceful world without
in the politics of those portions of
constantly preparing for war.
Europe and the Orient, and now
only the most radical "interna¬
IltVIN L. STONE
tionalist" would have us do so.
Partner, Newburger & Hano,
Friendly relations with Russia
President of the Young Men's and and Great Britain should enable
Young Women's Hebrew Ass'n
us
to maintain
peace
in other
of

Compulsory Military Training in

•..

Thursday, November 23, 1944

FINANCIAL CHRONICLE
.

...

should take in

military
naval

terms

when

the

can

n'd

only be decided

factors- become

■. 7;

clarified and the recommendations

war. ■'

of the

ities

military and naval author¬
placed before Congress.

Apparently: he has been Until .those and that of the Chief
The strong don't need compulsory so throughout; his long and dis¬ Executive are made, I do riot wish
service, and the good effects, if tinguished career,, and ( skeptics to make a: definite commitment
have only to examine his military that may lead to later misunder¬
any, on the weak would be tran¬
sitory.
■"
; - if"; 7 -'77/7,/;/ -7-( 7; record from Khartoom to date, standings; >777 ■. 777 7777 777
read • his many books
that 7 are
The examinations for the ser-,
mainly on military., subjects and
vice have revealed shortcomings
77
MAX WINKLER
draw their own conclusions; Next,
in the physical condition of our
Bernard, Winkler & Co.,
7
there is no greater fanatic on the
• 7.;..7 New York
City 7.777;' 7;
youth, but those defects were esstabiished before the age of. mili¬ subject, of military power;-than ; Regarding the question of com¬
Field Marshal Stalin, and,/finally,
tary training as proposed.' It were'
pulsory military training in peace¬
Roosevelt is never happier than
better, it seems to me, to do
time for America: "Si wis pacem
When wrapped up in the cloak of
some
missionary
work in the
para
bellum"
was
valid
2,000
All three years ago
homes
and in the schools" and Commander-in-Chi^L
>7
are now engaged in a war to end
churches long
before the boys
when
it
was
all wars and preparing blueprints
reach military age., V7 f- >7 ',7 77"
first
enun- .'!¥
for an everlasting peace, but each
ciated,
and
of them has thrown his weight
make

by war.

preparing a defense against what
its leaders deemed an inevitable DR. CLYDE WILLIAM PHELPS
it - is;-, equally
around before and 110 one knows
conflict, devoted much of the past
the service ap¬
Head of Department of Economics, when they will do.it again. There valid7 to day.
20
years
to intensive military
Despite
the
University of Chattanooga,
<
plied to per¬
are situations in Iran, China and
preparations, equipped the world's
hum erous
haps five or
Chattanooga, Tenn.
7 :
the Balkans right now explosive
largest standing army, and taught
six million
age n cies
The compulsory military train-* enough to "let go" at any minute.
the remainder of the population
which > have
young men for
to work father than to fight.
■'«' ing proposal is merely another Furthermore, history and. human been;; and are
periods of one
nature are against, any "perma¬
When the present army is de-. grandiose New Deal scheme for
to two years.
going
to
beobjectives .'which nent peace." A recent letter in. the created tomobilized we will have sufficient accomplishing
Such
wide¬
be" at- 7; - 77>V1 •.••>777 New York "Times'? said that in
trained men, assuming that we could
pre serve>
spread mili¬
Carlton A. Shively
the past 3,000 years there, has been
tained by simpT5
keep a large standing army also,
peace, «t here
tary
training
a war in
progress somewhere in
as
undoubtedly we will do, to pier and. more
will always be J
would - seriously upset our eco¬
ihe world in 12 out of, every 13
straightfor¬
meet any military situation that
nomic and social life and doubt¬
those/who will
ward measures
years arid; there have been 8,000
is likely to arise for the next sev¬
less would be politically impos¬
plan for. war.
and
without
peace treaties executed with an
eral years.
In any event, there¬
Hit Le r s and
sible to bring about. It is absurd
average "life of 2V2. years;
Our
regimentation.
Hirohitos will
to suppose that the only way, or fore, there is no need for rushing'
I refer to adsalvation, therefore,- lies-.in the
through a compulsory service act,
ariseandmenDr. Mas Winkler! .
even the best way, to secure peace
maintenance
of a
huge -armed
mitted
or
under the hysteria of,the present
nee. mankind,
'
•
•;
for this country
would be the
-force plus larger
reserves, and
claimed ob¬
\
and it is against these that Amer¬
maintenance of so large an army. war.
how can they be secured without
jectives.
Suppose that, say by 1943, we
ica must be prepared because she
Burdened with the debts of the
Of
compulsory military training?
'
course,
will, in all likelihood, be the prin¬
last two wars, our citizens would do have ,such a law. If war should
No. 2 reality is that as much
there are other
break out that year or in two or
not meet the tremendous expense
cipal target of the Hitlers of the
as people have discussed the sub'hree years thereafter, the train¬ possible ob¬
future.
involved, unless convinced that
'ect, no moral equivalent, for war
jectives as yet
the safety of the land were at ing the classes of 1948-49 and 1950
It would therefore seem desir¬
has been discovered. Young men
unadmitted,
would have had would be useful,
stake.
;rir<:r
77
dill go for it in spite of the fact able, nay, necessary, to have at'all
which
but the training and physical up¬ and
that when they get into it they times a large army, well trained,
Not a Pressing Problem
would un¬
building given young men in 1945well equipped and ready to
agree with the doughboy in a fox¬
be
Surely no one in the United 46-47 hardly would matter. Not doubtedly
Men who
hole who said, "This is a hell of meet any emergency.
States
believes
that, after the only would the changes in mili¬ heatedly de¬
a way to make a living."
•
7 reach their 20th birthday and who
Dr. C. Wm. Phelps
complete subjugation of Germany tary science render their training nied (the past
Then there, is No. 37, Enemy are physically fit and in all other
12 years have
•
and
Japan, this
country will obsolete, but the good effects, if
aliens with their European isms respects acceptable to serve in the
be in jeopardy for a good many my, of the camp exercises would paraded before us a long sdries
have marched in on us and al¬ armed forces of the country should
of
heated denials which , were
years to come. Compulsory mili¬ have disappeared.
ready taken
command of one be required to enlist for one to
soon proved to be insincere).
tary training, assuming that we
From my talks with many per¬
political party. Every one should two years of active service. Those
For example)'if it were desired
will, as we should do, retain a sons on the subject I find a ten¬
read "As We Go Marching," by who are in the midst of their
large army, navy and air force, dency for them to say: "Oh, well, to indoctrinate all the young men
John T. Flynn;
"My only pur¬ academic or professional training
fully equipped and trained, is not
t
wouldn't
prevent a war, of and women of America (i.e., all
pose," he says, "is to sound a and who have been graduated
a
pressing question. It is made course, and it might not be much the coming generations of our
warning against' the dark /road from a college or educational in¬
to appear so merely because its
help in preparing
us
for one citizens) upon attainment of age
upon which we have set our feet stitution of equal rank and stand¬
advocates wish to take advantage ihould it
18 with a good, thorough,, one~
come/ but the training
ing shoiild serve for a period of
•>s we go marching to the salva¬
of the country's present temper.
would do the boys good."
year course in
the proper1 and
tion of the world and along which not exceeding one year. All others
patriotic
attitude toward1 'New
So far as now can be foreseen,
should be required to serve two
Congress,
hearing
the
same
every step we mow take leads us
Dealism and whomever happens
if the nation's safety again should
thing, is likely to pass a comfarther
and
farther
from
the years. Upon the expiration of this
to be currently Commander-inbe threatened, the aggressors could oulsory act,
spurred by the Presperiod the men should be placed
Chief of the Army and Navy and things we want and the things
come from only one group: Rus¬
in the Reserve and be subject to
'dent, on just such grounds.
II
that we cherish."
•;
in the proper hatred and distrust
sia, Germany, Japan.. It is silly ■o, another broad running jump
call. They should also be required
A great deal mbre might be said
of business men and investors, the
to think of our needing any spe¬
to report for periodic maneuvers
\ mto the area of State control and
on
the
subject, .but what's the
cial
defense against
any
other socialization of the individual will scheme would be far more effi¬
of frbm two to four weeks at least
cient
than
the
more
clumsy use?
nation or group of nations.
have been made. 'No'one'ques¬
once a year.
method of subsidization or Fed¬
Militarism as an economic in¬
tions the need for subordination
A
Russian war of aggression
The knowledge that this coun¬
eralization of education.'
stitution may be had, but theTack
if the individual to the needs of
against the United States is im¬
try would at all times be in a po¬
I do not say that any one - has of militarism is more than likely
the State in war time, but the1
probable, so long as we are care¬
sition to command a well-trained
to be far worse—who will deny
ful
to
avoid
entanglements
in transformation of the nation into so far admitted such a desire;"!
army
(and navy) is bound to
that if Great Britain, Russia and
what
the Russians traditionally that sort of-thing in peacetime only say that, given such a desire,
from

attack¬

ing us, unless

Volume

Number 4336

.160

THE COMMERCIAL & FINANCIAL CHRONICLE

impress the aggressors of the fu¬

tific

ture

poses

sufficiently to warrant the
belief and hope that the ghastly
spectacle

1914-18

1939

and

be avoided.

may

research.; for

military pur¬
and.that,it could not afford

repeat that error."

thus

FRANK CIST

-V

There,

"The Commercial and Financial

Chronicle," in its issue of Oct. 26,
asked for opinions on the proposal
made Sept. 2 by Gen. George C.

for

ness

would

favor

world

rely
lice

then

neglect
ance

Frank

Cist

two

cut

arms

reli¬

But

place our entire reliance on
police
protection
only
as
the
police themselves can secure pop¬
for

and such support

their

for

largest

time

not

are

the

under

same

greater

of urgency, and if

sense

for

emergency

avail¬

instantly

they

use

That

the

and

should have

navy

tunity to vote

Effective

de¬

any measure

signed to conscript their
daughters after the war.

policing,

oppor¬

Date

and

sons

involved

The

sleep

war

will

both

job*

its

ica will be

indus¬

Indeed

tries—but had
been better

prepared
lier

officer

ear¬

W. C. MacFarlane

human lives
not

have had

men

state.

has

rvrnxr

Unfortunately,

the

That

Dumbarton

Oaks Conference has already dis¬
carded
impartiality.' The "Big

strikes

seems

common

worked out

would

form

how much the

better

war

idea

has

used

■

mination

all

the

over

world

that

jt shall be made to prevail, this
leadership seems to me to promise
world where every nation
must shift for itself, a world of
strategic frontiers and alliances
and power politics, a world where
Competitive arming is the order of
the day and where security de¬
Only

pends
a
'

on a strong" right arm, and
quick one, and preparedness.

The worst

possible preparedness
bankruptcy. What

emergency need of manpower can
and should be taken care of by

lowering the draft age; as to post¬
war planning, thaiwe can see our
way more clearly when the war
is over; but that then, in default
of

can we

afford?

I believe that

means are

bond-absorbing

and

and that

set
as

about

fully

permit.

prepar¬
as

our

training, and in the

of intensive

year

ROGER

any

STRAUS

President, American Smelting and
Refining Co., New York City
I

favor

chronized

in the

paredness

for

least

the

case

civilians.

;

advocated
raw

storehouse

materials and

kept in par-:
operation. As to ships. Sec¬
retary Forrestal, as quoted in the
New York ."Times" of Sept. 12,
argued that transport of men and
supplies had laid the foundation

"that

Wars
to

between

the

United

two

Nations;

spend enough money

World

reprobated
Europe.
.

7 Of
the

■;

train

bay

one

national

of October

tell

have it since
to

are

against

present

our

Allies

present

our

while
to

our

country and the

other

use

nations

for

are

aggression.

out the most up-to-date and pow¬
erful armaments.

France

found

that

out

1940.

When General Marshall speaks of
a
small professional
army
plus

thisconscription
words

very

relative

using
sense.

rid
His

forced

enforced

would

mean

of Fire

the bonds

their

our

lives

youths,
when

lost is of such infinite value

that

the

ful

when

damage can never, be
A year taken from the

which
comes

'(4)

man

it is)

his

40's

(harm¬

less ruinous than

snatched

days

ous

from those glori¬
boyhood and youth
unlike anything that/

are

afterward.

While it

for certain

may

be true that

boys the discipline Cbf

the army is good, it is more than

true,

the

other
hand, that
boys are so unset¬
tled and unhinged from the ordi¬
nary routine of life that they can
never again anchor themselves to
anything sober, quiet or useful.
on

thousands

A life of adventure and

irregular¬
only thing that can
appeal. Moreover, mili¬
tary life often inculcates arbitra¬

ity

the

make any

which

riness, callousness and harshness
skirting close up to cruelty.

forcibly,

Wm- A- R°be>'tS(,n

em-

phasize the following:
(1) Such enforced military
is destructive

(5)
in

large

so
on

part

the move toward

socialism

or
communism, do not
give one scintilla of en¬
couragement in that direction. Let

American life. From earliest days,

let

.strength
has
come
through the freedom of individual
action, freedom of opportunity,
burdensome

While

the world is

ser¬

of the best

America's

from

career

time

made up.
life of a

has

freedom

the

year

covering

vice

(3) The plan calls for a terrific
shameful interruption in the

anything

the interest

studies and

It is

but would

ever

and

much

pay

Un¬

26,

venture

than

of the Government.

I refrain

ed
Norman Thomas

life

the

a measure

service

to :cry out louder

he has assert-1

Con-

endure

(2) Such

cov¬

there

points

g'ressmaii

desperate

him.

military

the subject

any

force
as

from
•

such advocates

Board

said.

done my best,

ly, to

tinued
upon

issue

your

Meyer

actually contemplat¬

was

something

and sound judgment
prevailed in the end, and he con¬

to what Father

fense., I have

was

patriotism

Cyril F. Meyer against compul¬
sory military training, appearing

add

our

en-

I have heard of
unfortunate

who

liimself of such conditions.

diffidence that

neces¬

ing

I cannot sufficiently praise the
splendid article by the Reverend

teens

for ; past. Billions of dollars will have
jto be raised in the future, simply

derwriters, New York City

such conscrip¬

sary

his

living?

youth

that he

ROBERTSON

National

The

with

ar¬

lad

enough to have such an unbear¬
ably coarse lot of camp associates

to
WILLIAM

gument is that
tion

youth
bear analysis.

not

be made.

course,

every

one

adequate
reply that can

deny that of itself in modern war¬
conscription is useless with¬

failed military training in peacetime for
"scien¬ America.

cradle

and loose

main

health

ablebodied

all
will

war

national

the

prove
■

and

always

a v e

fare

Roger 'W. Straus

Are

exasperating discipline,
camp, with its ever-present
tendency to coarseness, vulgarity

complete ly,

military, conscription—except pos¬
sibly Mrs. Roosevelt — tries to

and he appealed for extension of
the training program to the Navy.

the

from

grave.

invites the tremendous additional expense to
coming
of
totalitarianism.
The Taxpayers, just at a time when
notion that the best way to im¬ Governmental
economy ought to

ers

None of the advocates of post-war

for General Eisenhower's successes,

em¬

the

Conscription is inconsistent with

sys-

tern which

right,
likely

of wartime factories

point,

t h
.

the defense of

war¬

tial

He also made the excellent

military

icans would only use conscription
and its attendant armaments for

nucleus

XIV,

true liberty and today

1944.

permanently
disarmed. They always avoid the
question.
Always they assume
what no foreigners
(of any nation
will admit, namely," that we Amer¬

is ships, both fighting
ships and carrying ships." It also
time

America

course,

of Louis

Government

and

Must

—

post-war

must

April 1 said: "The best insurance,
of

enemies

The (London) "Economist" of last

the

to adopt post-war
conscription for all its
ablebodied youth now, before this
war is ended, is a confession that

youth of our
country couldr get the kind of
higher education they want and

which

money.

such

worthy of Col¬

reserve

military

the

compulsory Wads worth

time

coddle

the

break

For America

mili¬

unsuccessful¬

our

taxing

our

better

ing ourselves

limited by our

attempt to
spend beyond those limits will
ultimately trip itself on inflation¬
ary price rises.
There is also the question of
how we can get the most pre¬
power,

had

means

will be national

national

moral

peace
such as the
going to be enthusiastic
about and glad to fight to enforce,
a

world

been

the

list

ployees

Danger From Abroad

education, j In the case of the boys,
it should be at least the equiva¬
a

calling

were

Accordingly, instead of be used to best advantage.
;:
security based on popular con¬
These at the moment are the
viction that justice will be made
ideas which occur to me on this
to prevail, and on popular deter¬
important subject. I believe that

dtire

in¬

not

cost, how
much inflation we are likely to
at the same time be fit for na¬
Three" or the "Big Four" have have to deal
with, how much New tional
emergencies.
bound
each
other
to
gang
up Deal social services are
going to
I
believe preparedness is
the
on
any
lesser power
that cost, how -much taxing power we
best way to keep out of trouble.
ventures
to
start
anything but have left, how much and what
have left their own hands fully kind of equipment we still have
free. * Poland seems destined * for on
NORMAN THOMAS
hand, how much and what
Socialist Party Leader
p a r t i t i o n,
Messrs. Roosevelt, Kind we are likely to need most
Churchill and Stalin seem spiritu¬ in the
In theory, the war was to con¬
future, what kind of peace
ally more nearly akin to the protection we are going to be able quer militarism along with the
"practical realism", of men like to depend on from whatever in¬ Germans and Japanese.
Now it
Lloyd
George and
Clemenceau ternational organization is set up, is proposed even before this war
than to the idealism of a man like and where our limited funds can is over to copy
Wilson.

the corner¬
national life

interference

have

huge

receiving their higher

that

terfere with

froo/iir

sense.

and

American

order

then

can

ernmental

nrnnnco

and

workers, more compliment to Germany by
army, to introducing enforced military ser¬
the colors and then ordering them vice upon the growing boyhood
to do the work they had refused and youth of our* beloved land?
who

period, when the future educational
program of the schools
can
be envisaged."
and colleges.
It should be syn¬

world

Impartiality Discarded
.

Great

the

youth, both boys and
should receive compulsory
military training somewhere be¬
tween the ages of say, 17 and 22,

girls,

the girls it should be about three

backs

our

resting on a false bot¬
Already
things
are
bad
enough; we have copied Germany
and
France
quite enough, and
more
than
enough.
We
have
crushing taxes, meddlesome Gov¬

force

Germany?

turn

been

bert

now

tom?

Army

back

stone

Amer¬

informed

while

Compliment

principles,

have

police
Furthermore, General Marshall or four
months, to fit them for we have lost the peace, an invi¬
will, in my opinion, be himself, if I understand
him, does
such duties as WACs,. WAVEs, tation to the nations of the world
forthcoming only if that force is not favor the
inauguration of
°ur| sPARs, etc. In their case, this to indulge in that rivalry of
unequivocably known to be de¬ permanent
coemption program :could bfr don
in vacation time, armies
and
armaments
which
voted to the impartial enforce¬
hi
now.
In his proposal, already re¬
something like' the Girl Scout's eventually we shall lose since
ment of justice.
Such spiritual ferred
to, which started this de¬
other virile nations entirely cap¬
camps, etc.
foundation seems indispensable to
bate, he says: "The plans for a
I think this training should be able of
the effective functioning of
copying our technology
any pennanent
peace
establishment
undertaken by
the Government have
greater
populations
and
permanent world peace organi¬ referred to in this circular relate
but
not
zation.
■
intermingled with the higher birthrates.
7,7y /'"'v
;v:'-to a later
a

dreamed.

Napoleon?
Shall we admit that
our past has
proceeded oil wrong

mind the way the French

Government

I think all

tary

world

well

short

had in

sacrificed.

had

ings of Frederick

been

exception.

new

retainers; an un¬
burst of candor admitted that the healthy wish on the part of the
chief use of conscription was to Government to plan our lives for
discipline the people. Perhaps he us; and a most suspicious desire

many

would

has

militarism

conscription

and the totalitarian

manpower and
in

This
of

has
averted war or even guaranteed
victory in war, and all nations by
this device have helped to prepare
the way for the coming of Facism

nation
o n e

the continent of Europe,

all these, and adopt the teach¬

got their minds down to
conquering poverty.
Meanwhile,

brotherly love.
d

unemployment

relieved.

nation

fewer

Are

never

still

Europe for the last hundred years.

mongers
advocate

and

pressure

The result has been that

about

What

England, a
had dared to dream of such

Guarantee

armaments,
be

names, or

so.

life;
Peace

they
would soon
glorious relief!
few great thinkers

mere

technical

large.

very

historic role

the

who

bowl

were

conscripts,

indispensable

strongest

great

and

lulled

pacifists

become

the

behind
the
demand for
conscription is
that by it and the permanent of¬
ficer caste and the production of

the

known .to history.

wars

lent

Uncertain

ocean, but in the New World

for

will be

Not

learn

lesson

and

professional army,
officer caste, the

the

experts,

about

Our

program
would also
objection of the Rev.
down C. F.
Meyer in your issue of Oct.
as
we 26, that the men now in our
army

just

local police.

support

would

program

able..

can

ular

unprepared

the

masters

and

Twice in my lifetime the United
States of America has been caught

has

why 7 not; get these "new
men" by simply low¬
draft age?.
The men

meet

individual
our

the occupation of enemy
and the maintenance of

the

would

armaments,

But

would

prepared to take
in
such
post-war

drill

Minn.

wonderful

needed

thing

national

younger

period of training; but, if drafted,
they would probably train under

protect it. The
sensible

•

under the other,
they would be taken for the same

po¬

force

and

'hew

places

one

the

that

will

taken

could

urgent.
field
have positive as¬

entitled to

ering

not

thought

adoption

and younger

prepar¬

edness

6 argues edito¬

Sept.

■'

strongly

Lower Draft Age?

reasonably af¬
'

York

New

Actually,

Manager* including

Genera!

plement Co., Minneapolis 1,

strategic outposts."

as we can

ford.

ques¬

program

The

that

countries

urge

this

"Our soldiers already in the

prepared¬

war

rially

duties

much post¬

"Times"

their

present

heartily

when

effect.

men

training;; Un¬
der

take

also to be

seems

surance

military

conditions

tion

are

Universal postvV a r

and

Minneapolis-Moline Power Im¬

sonnel.

Delray Beach, Fla.

C. MacFARLANE

post-war
money

Marshall

There will

number of competing
military uses for our
besides the training of per¬

President

2263

us look into
"the perfect law of
liberty," to which America has
always been dedicated; and—to

taxa¬

tion, and through love of home." quote the words of James Russell
It is a commonplace to say that Lowell—let us
not "keep glancing
the

first

settlers

fled; from

th*

aside into

Europe's cracked glass,"

cramping and hateful/restrictions
of

the

Old

religious,
From

World,1 both political,
economicand
social.

the

Attractive Speculation

Sioux City Gas & Electric Com¬
Captain
Smith and his company landed at pany and its principal subsidiary,
Jamestown, Va., America became Iowa Public Service, offer reason¬
to the people of the Old World ably safe but none-the-less attrac¬
an

day

when

ideal of what life ought to be.

tive speculative invesment oppor¬
tunities in anticipation of peace,

Feudal

privileges, feudal land
tenure, compulsory military ser¬
vice, compulsory religious observ¬
ances

—

these

were

weighed

tains

lead.

be found

things

humanity like

They

according to a study of the situa¬
tion prepared by Amott, Baker &

that Co., Inc., 150 Broadway, New York
City.

moun¬

all

Copies

this

interesting

to study may be had from the firm
the other side of the upon request.
were

THE

2264

spent to buy the output of 56 mil¬
workers.
Production large

ment

enough to employ substantially all

ing

if the toreceived is
consumers goods

workers is possible only

Deflation?

either spent

Situation

may

deflation
will be inevitable.
The danger of
inflation in the transition period
can surely be met.
The danger of
levels,

pre-war

presents a vastly more
difficult problem. To solve it, will
he the main challenge to our post¬
deflation

Nobody can

to
Inflation pressures include
transition from

the

ing

war

peace.
the pent-up

vide

the

additional

need

demand; finally, the
people's desire to return to normal
and to get rid of wartime controls
Once victory is won* The longer
the war lasts, the greater the dan¬
ger of inflation will be because of
the cumulative increase in pentup demand for civilian goods and
in liquid assets in the hands of the
public.
?
,:
However, at the same time there
v

pressures

deflationary

will

opposite direction.
reductions in
expenditures creating unem¬

working in the

There will be large
war

ability

de¬

total of

labor

will

retire

labor force.
There will be large stock piles of

ing

many

about

materials. Uncertainty
future employment will deraw

people from drawing on
or spending as much
as
they otherwise would out of
their current income. Similar un¬

rer

many

their

savings

afford

"can

ours

available

activities than

time

will

now

are

em¬

ployed.
What

this

does

in terms

mean

production in the post-war
years? It has been conservatively

business ex¬
estimated that in order to have
penditures. Many other factors in
reasonably full employment in the
the situation, as the war ends, will
second'year after victory,; we will
certainty will delay

of inflationary

add to the mixture

and deflationary forces.
the

uncertainties of

of the

Because

price and
be" kept in¬
until industry has resumed

transition

period,

fiscal controls should
tact

civilian production on a

scale ade¬

quate
to
meet
demand. Only
thereby can the consumer be as¬
sured that he will not lose by

postponing purchases and that

the

need

goods and ser¬
170 billion dol¬

produce

vices amounting to
lars

prices. As the labor

1943

this
revised

force and efficiency increase,

will

figure

have

upward.

Yet,

-T'.,/T

t..

■

even

total reflects

170-billion-dollar

volume of output

vastly above that of 1939. In order

170 billion dol¬

to visualize what

expenditures means, let's
divide as follows: 110 billion dol¬
of

purchasing value of his savings
will be protected. This is vital be¬
cause of the huge volume of liquid

lars

savings accumulated4 in the hands

relationship

which

the discussion because

savings,

larger the unused

larger must Government ex¬

of channeling idle sav¬

through taxation or

that is, either

borrowing. As between
the two, I believe that taxation
must carry
the main burden. I
would be most hesitant to see
further
additions to the public
debt after the war. In this respect,

result' of war
savings are
used prematurely through fear of
impending price increases, they
would be a destructive inflation¬
of the

public
If

financing.

ary

these

force.

for the
carefully
planned and carried out, the long.

the

Unless

transition

program

period

the
diffi¬
cult to meet, Just as the difficul¬
ties of the 1930's were due to the
failure of the policies of the 1920's,
so will
our post-war situation be
determined largely by the job we
run

economic

problems

country will be vastly more

the

transition period.

and in the wrong
effort

directions in an

satisfy too quickly

the

huge backlog of demands. These
demands will include not only the

that
will

compared with
to have 40%

as-

need

consumers

goods and ser¬

much in
plant,
equipment,
housing and
other new investment, and double
the total of public expenditures.
vices,

nearly

These
are

they "are

example, we may expand
industrial plant too. greatly

For
cur

1939

They

are

twice

challenging

figures,

adequate as a basis for
chasing power needed to

the pur¬
provide

Government un¬
employment
through
borrowing the unspent savings of
the people and returning them to
the income stream. However, this

fail, to have the
derwrite

A much

should be a last recourse.

about the necessary

bring

approach would

satisfactory

expendi¬
in any sense a - forecast. tures by other means, for example,
significant because they by an extension of the Social Se¬
significant not because

indicate the general

magnitude of
the job that lies ahead- of us. It is
apparent that we must aim high;
that We can never go back. If we

increase

in the flow of

and by appropri¬
ate tax policies that would induce
more
spending and reduce idle
curity program

public works, but also for large
meet¬

foreign demands. Instead of

these demands at once, "pru¬
dent policy calls for satisfying
them in a more gradual and or¬
ing

derly manner so that when these
accumulated forces are expended,

sud¬
with serious deflationary

"f"here will not be a sharp and

den drop

consequences.

better

return

situation; 'Many
iobs

would' be
: cr

war.

should

substantial

1939

levels

of those without
veterans of this
•

able

measure on

agree

relative¬

ly simple statement of what our

post-war
be

once

cult

ecbnomic problem will
we are beyond the diffi¬

period

reconversion

and

restrain the backlog of needs accumulated
defer- during the war has been satisfied,
able public works or foreign loans The
over-all economic problem
hi this period than to have an urt- i
b°
»n tM« vw:'>tp
jmsfsinable over-extensmn. It is | order for 56 million workers to
most important during this trans- have jobs, enough money must be
nation,

control

prices,

credit expansion, and delay

will not require tax rates

anced,

high

before

because the income base

war

higher the
national income, the easier it will

66 billion dollars. They

for the costs of Govern-

be to pay

mei^.

they

are

between the way in
taxes are collected and

our

flow

the

important,

doubly

recognize the

income

which

from

drawn. Our post-war tax

system should be designed to in¬
a
high level of consumers'

duce

Accordingly,
the
should be a

expenditures.
first

requirement

reduction in

drastic

excise taxes

should not
the war

continue to increase after

because,

have emphasized/
must be respent

business receipts

currently to help sustain full pro¬
duction and

will be far larger. The

employment.

There is much discussion today
in

favor

corporate

reducing

taxation after the war. To the exlent

recogni¬

that this reflects a

tion that taxes are an instrument

control,

economic

I welcome
I have long;

contended that fiscal policy

is the

important single instrument
through which the Government
may
influence economic condi¬
tions.
I believe, however, that
much of the current discussion is

most

the realm

of wishful thinking

consumption and because the revenue objective is
the markets for
[set entirely too low. Also, I believe
business. Secondly, personal in¬ that
removal of various excise
come taxes upon the lower income
taxes and a reduction of income
group should be reduced by in¬
taxes on the lower income groups

because they tax

undermine

thus

creasing exemptions.

crease

should

Once this has

first.

come

high level of

income,
its prod¬
ucts. and having a buyer for its
products, it has jobs for the work¬
receives

adequate

business has a buyer for

ers.

the

markets

for

business shrink
and

the

and

total income

can

consumption
^nacW

done

through

Social

•

and

minimum

guarantee
ot

much

Security- system.

Government .should

write'

and

mal

income,

under¬

national

stimulate investment in small and

independent enterprises. It would
be the most effective way to make

sharply

avoid

are

prices and-loss of

declining

markets which

production and busi¬

discourage

upward
Will be necessary in

expansion; a gradual

ness

adjustment

salaries of the great
comparatively lower paid

the wages and
mass

workers.:

be passed on

productivity should

to the public

largely

capital available to them
help thai! to

equity

and be of far greater

provide too much easy credit. Encouragment of small enterprise is:
essential not, only for economic
reasons, but to vitalize our demo¬
cratic institutions and help keep
alive the spirit of

American enter¬

prise.
Our economic problems must be
worked

out

There

home.

has

and
been,
in recent discussion,, too
salaries and should pot be added
much reliance on the stimulus to
to profits.
In,those industries in our domestic
prosperity which
which productivity is increasing
may result from world trade. In¬
much faster than average, prices
ternational cooperation is essential
should be reduced in order to
the form of higher wages

larger

reach

mass

markets.
be set
margins

Throughout, prices should
on

per

basis

the

of narrow

unit of output.
a

high level of consumer

expenditure is assured, the foun¬
dation for investment expendi¬
tures of business- will be laid. In¬
vestment expenditures are made
in

of consumer de-.
and are not likely to be f
unless business is assured :

anticipation

eHm^t'oV,. jnands

health and old-age security fob all

tax;

hours return to nor¬

tinued/total wage and salary in¬
come will
decline sharply. If we

Once

increase

profits

excess

overtime pay is discon¬

after the war,

employment fall off.

Much

The

buy,
output of

If the consumer does not

The

penalty.

consumers' ex¬ with its carry-over and carry-back;
penditures is not possible without provisions should be retained for
a large volume of wage and sala¬
some time after the war at a re¬
duced rate of around 65%. High
ry income. If our economy is to
operate at full capacity, average profits that will be earned in that
wage and salary incomes must be period are traceable to backlog de¬
high enough at normal hours of mands and are thus in the nature
work to give the people sufficient of war profits.
purchasing power to take the
As a further encouragement to
product off the market. Again the small business enterprise, provi¬
significance'of this for the nost- sion should also be made for sub¬
war adjustment is evident. When,
stantial tax benefits. This would,

savings.
'

the standard of living.

high level of

Increases in

consumers' ex¬
large pent-up need for consumers, production, from 15 to 20 millions penditures is the basic require¬
of our post-war labor force would ment for post-war prosperity. The
durable goods, capital goods and
be without
jobs, an intolerable consumer is the real employer. If
were

full

employment,

unprecedented total of

There is no lack of need for been done and revenue needs per¬
will differ
greatly from that in the early everything that we can produce. mit, I would favor a reduction in.
1930's when the economy had un¬ There are still a great many peo¬ the corporation income tax. The
dergone a drastic deflation and ple in this country whgse stand¬ rate might be lowered to 25 or 30%
large Government deficits were ard of living is shamefully inade¬ and the corporation permitted to
quate. The basic problem is to see take out of its taxable income
not only unavoidable, but it was
the
necessary
purchasing thaf part of its profits which it
desirable to replenish a contracted that
power
flows into the hands of distributes * as
dividends.
This
money supply. An entirely differ¬
ent situation will exist after this those who will use it to increase would remove double taxation of
their standard of living. An ade¬ dividends and be an inducement;
war. Upon the termination of the
quate Social Security program as for corporations to distribute their
war, the total volume of currency,
bank
deposits and Government well as assured employment will earnings. Some provision could be;
securities, which are the equiva¬ do much to induce the spending made to allow small corporations
lent of cash, will be far more than of current income and thus in¬ to retain needed funds without tax

consumers

example,

maintaining

succeed

1941 to the

post-war picture

the

goods and ser¬ full
employment.
billion dollars in plant,
A more
direct approach than
equipment, housing and other new deficit financing I should be found
investments, and 35 billion dollars in order to maintain necessary ex¬
in
goods and services supplied
penditures. Since we cannot af¬
by Federal, State and local gov¬ ford, in the post-war economy, to
ernments.
have widespread unemployment,
Allowing for price
advances it will be essential, if all other
since 1939, these figures mean, for methods of providing employment
in

times the prewar

in-,

have

companies

creased from about 24 billions

vices, 25

lars

insurance

and

banks and

than

through

in peace¬

work

for

other

businesses

therefore,

ings back into the income stream,

withdrawals from the labor force,
it is evident that more people

expenditure

the

two ways

probable

for

allowance

full

Currency, - deposits
Government
securities held

stream.

to be three times as

penditures be to overcome the de¬
ficiency in private spending and
investment. The Government has

people. But even after mak¬

older

drain

similarly consti¬

however, a budget
of this size, in order to be bal¬

the

people adequate education
provide retirement for its

young

balances

year

The

such
give its

country

rich

about three
level of 1939. If

war. or

which

reserves

idle

tute

and deple¬
accumulate

Depreciation

ditures.

return to school or

housework.

tion
as

expenditure

the

returned
stream.

to be less than 25 billion dollars a

after the

passed on to the
the owners, and thus

sufficient volume of total expen¬

force

the

workers

not sufficient to buy
goodg and services provided
by full employment, then cumu¬
lative
deflation and
unemploy¬
ment will develop unless the Gov¬
ernment steps in and provides a

people attracted to
during the war

tial number of

payroll tax, but should be
paid for out of the general budget,
because a tax on payrolls is a tax

to the

buyers!

pansion should be

the

nearly one-half of our total popu¬
lation. After the war, a substan¬

and

to the civilian

millions of income re¬

product. Corporate profits
that are not used for capital ex¬

people are

forces, making
than 63 millions, or

armed

the

are

11 millions

In addition, more than

assure

further additions

upon

its

expenditures will come forth
in a steady stream. If the pur¬
chases
and
investments of the

and

this year about
employed.

On the average

based

;

cipients and millions of businesses
in our country, and there is no as¬
surance that a sufficient amount

52 million civilians are

ployment in war industries. De¬
mobilized war veterans /will be
added

deflation

prevent

de¬
sufficient flow
.

Post-war

levels.

minimum

lacking.

are

which it receives from the

expenditures is, first of all, the

there

unemployment.

mass

will they impose a dead

these

is
It

cause.

) To assure adequate total pur-.
chasing power, it Is necessary for,"
business
to
disburse the funds

on
consumption and, therefore,
responsibility of the .people and ,undesirable.*when'.more consump¬
tion is needed."
businesses
who
receive income
The Federal budget is not likely
and who decide how to use it. But

demand for consum¬
goods and housing; velops. It is at this time, when the
continued
shortages of certain backlog of deferred need has been
food and clothing items; the huge largely met and we must rely up-r
on current demand, that we shall
volume
of liquid assets in the
face the most difficult test of our
Lands of the public; a potentially
large foreign

inevitably

employment

cline.

pro¬

employment

back into

income

ventures be-;
How-.

confidence

not

and

markets

nor

level

produced at. full employment.
a
result, production, income

and

durable

ers

not.

take risks

will
exist if there are markets to look
forward to; it will not exist if

social security benefits should not

the

including

when

mum

strain

new

business

effect

great that such mini¬
standards
will not
be a

pacity is

expenditure strearp is interr

flow

housing;
and the planning of Federal, State
and local public works to be un¬
dertaken

themselves

reluc-;

about the

of lack ot confidence.

ever,

rupted, demand becomes insuffi¬
cient to take off the market what

rates of interest to encourage new

will be dur¬

inflationary pressures

industry,

help to achieve and maintain full
employment. Our productive ca¬

thus continue

assets do

of existing

ing all of our people and providing

foretell how strong

will

adequate market.

much

engage,

cause

Decent minimum

of income

levels

and

for

market

hear

tance of business men to

uniformity. Ample room
will be left for most people to
raise
their
incomes
far
above

prices

Security program cover¬

investment,

in advance of
We

place a floor
the goods

will

turn

the

and agriculture.

are

adequate benefits; a modified tax
structure;
maintenance
of
low

war economy,

directly

and services of business,

give employment. Savings that
held idle or used to bid up

include, among other things,

Social

investment

power

under

place

can

This

is saved and goes

of expenditures and

higher standards of living we must
have
later
on.
These
policies
should

new

indirectly. Savings which are in¬
vested are returned to the stream

sustaining

later on, we

above

into

period, while we have the
power of backlog de¬
mands, to adopt policies designed
to lay the groundwork
for the

fail to raise the flow
of consumers' expenditures greatly

ition

inflationary
well develop.
If,

quantities,'

and services

(Continued from first page)
quate

which

•tal income

doing, the Govern¬
a floor of purchas¬
under the economy.

citizens. By

lion

The Post-War Price Problem

—Inflation

Thursday, November 23, 1944

COMMERCIAL & FINANCIAL CHRONICLE

made

and

such

agreements,

international

those planned at Brettori

Woods,

are

desirable.

must not forget that the
post-war

employment

Yet,' we

level of
in
the:

United States will depend

prima¬

rily upon the existence of domes¬
tic markets for our

products, Our

first responsibility

is full employ¬

ment at home and

achieving it is

the most

powerful contribution we

Volume

make to

can

ejconomy.

Post-Wai Role of

service in top management of sav¬

world

prosperous
.

period ahead, we should
keep constantly in mind that this

Savings and

j In the

200-billion-dollar

cannot

shares of

that

gain by fighting over
small total output. In

when

1932

millions

many

were

unemployed,
corporations as a
whole lost nearly 3lk billions and
net current income of farm opera¬

2 bil¬
employ¬

tors amounted to less than

with full

1943

lions.

ment, corporations, after tax lia¬
bilities of about 15 billions, had

ings and loan associations for ex¬

pansion in the years ahead. They
will help to meet the challenges of

Loan Associations

year

country. We all know by now

opportunity to which I have
But

(Continued from page 2260)
influencing higher
standards of community service.
Each of these must receive major
and

ment

attention

meet the

are

challenge of the times.
In the realm of new construc¬
tion

must think more in terms

of families of medium and low

these

tially higher.

These figures nevertheless

in¬

personal security for all mem¬
bers of the community.

home,

steadily ris-.
ing standard of living for the
Nation

whole by develop¬

ment of our economic resources

improving the efficiency
which they are used.

and by

with
*

high level# of
world
prosperity
and
world
trade in cooperation with other
To

promote

nations.

much

not be

will

There

disa¬

today among thought¬
ful people, regardless of political
faith, or economic background, on
these goals ol national economic
greement

governments, in¬
own, have long since

policy. Modern
cluding our

how

—

who

millions

will

many

for life

maimed

shared

have not

homefront.

They

businesses,

jobs,

home,

given

Those who have

itself.

and

safe

home,

capacity

providing a standard of

h>r

living for

does

whole higher salaries and wages,

profits,'.more

than

debts

fewer

expanding,

tional minimum of income, educa¬

old-age security
population. It cannot

Most of this has

and

savings

tion, health and

•

to do less.

Such

will

guarantee is not the im¬

practical dream of the social re¬
former. It iss

essential for

our na¬

economic security and for

tional

The
—own

protection of what we call our
free enterprise system. It will go
far to protect our economy

be paid
that debt when
it. The 11 millions—those

want

survive —will have to help

who

shoulder that mountain of debt of

which

stay-at-homes are the

principal

They may be
if they have

owners.

against quite willing to do
jobs

economic

and

slumps. It will stimulate mass con¬

adequate

sumption, widen the markets for

curity.

private enterprise, and thus open
the way for new investment. It is

enough
to
realize
what would happen u£ we on the
home-front, who have profited so

absolutely necessary for the pres¬
ervation of this democracy, and
-

this economic system of ours.

Only
the

defeatists today in the face of
war

that the goals

record will say

of full

are1 impossible

employment

of kttainment under our economic

and

You

have

should

se¬

imagination

much and risked

little

—

while

risked so much and
profited so little —if those, who
have the economic power or the
have

they

political power in this country *accept the defeatism still expressed

the

effect that

the

system( and form of government.

Eleven1 millions ofjthe youth of
this [Nation now serving in the
armed forces are not likely to be¬

country cannot afford tpe goal of

lieve

that

peace

for

able

They

afford

cannot

war

and

full

some

emoloyment because the dic¬

tates of so-called "sound finance"

are well aware

lieve

m'BUr System or in our de-

•1-i

n.ivrt;}-*

because

most terrible

: »>' f,

•

moeracy.

they

unawareness

think
of

all

it
of

shows
the

bitter

Those

this

war

have

who

are

overcome

the

of obstacles to win
not defeatists. If we

many

ance

of them by

tions

generally have not been uni¬
If they had been faithfully

form.

far

the

nlanning

free
ment

and

enterprise
are

How

oply

many

less

tolerant

if.

home, they find
the

and

talk

full

about

employ¬

miragp(.j j
will,, neyierw come

lending institu¬

vate nlaces of power

and respon¬

I, for one, would
be all for helping them, .to do it.

sibility— and

It need not happen

that

without
al

way.

loss to

some

individu¬

our

Our

institutions.

activity must

extend to a variety of services in
home planning, home ownership,
home security and community wel¬

fare.

Homes

elements

are

Appears Attractive
Intersate

Aircraft & Eng. Co
interesting situation ac¬
cording to a circular being distri¬
buted by Hirsch, Liiienthal & Co.,
25 Broad Street, New York City,
offers

diverse

minimum

quirements becaus they

re¬

serve as a

convenient

starting point calling
to other services that

attention
should

included

the

cata¬

every

tion. Among
named

those that should be

companion services arei
favorable lending terms and

(a)

interest

rates

long period di->
loans; (b) super¬

reduction

rect

vision of-construction and inspec¬
tion /durihg

construction

all

building, and careful inspec¬

new

tion ahdi'report

old construc¬

for' keeping
and

surance

the

borrower's

account;

periodic

adjustments

(d)

because

favor

borrower

interest
of

declining risks to be offset by in¬
creased payments of

provision

for

loans

principal; (e)
service

and

maintenance

include,

Roller

Co.,

Ill

Inc.,

each is expected to take some re¬

Christy
diana

ests of the

community.

Broadway^ New York

Clay

Products

Limestone

and

which

the

In¬
firm

believes, appear attractive at cur¬
rent levels.
Copies of these in¬

No manager of our savings and
loan institution can consider him¬
self

circulars

teresting

be had
H. Roller

& Co.

full-sized executive until he

becomes

active

factor in the whole

business that

may

request from

upon

contributing

makes home ownership attractive
and

and that business today

secure

includes

service

community

least to the extent of

being fully

informed of current developments
and their effects

home

and

ues

property val¬

ownership,

There should be
for

;

place in

Fashion Park Attractive
detailed

study

Fashion

Park,
Inc.,
is
contained
in
v
special circular prepared by Si¬
mons, Linburn & Co., 25 Broad

St., New York., Copies of this in¬
teresting study may be had from,
the firm upon request.

our

comfortable

the

take the larger mantle of respon¬
sibility.
Momentarily the war has al¬

tered

and restricted

services;

our

Normal functions have been lim¬
ited

given

direction, and
continue
to
discharge

shall

them

until

new

the

When

ends.

war

victory is achieved we must
ready for a larger role.

Available On Request
Schenley Distillers Corporation
have prepared an attractive book¬
let containing
the first articles'
in the series they have been run¬

impending opportunities I have
with the details of

not dealt

our

important and thriving business.
I have not spoken of the prospec¬
tive

Garrett Corp. Interesting

when

and

re¬

desired,

of property and management

Fred

Fairman
Salle

South

Co., 200*
Chicago

Street,

111., members of the Chicago Stock.
Exchange, who have a continued
interest
in
Garrett Corp.,
have

material

this

distribution

for

annual

latest

report.
be

may

the

Copies of
had from

Fred W. Fairman & Co. upon re¬

quest.

which

of G. I. loans

volume

upon

available

In my analysis of the challenge

Sept. Rail Results

in their ultimate total may exceed

Vilas

49 Wall St.,
members of theStock Exchange, are

Hickey,

present volume of all out¬
standing home mortgages. I have

New

York City,

not dealt with the stock and loans

New

York

System, of current
suggestions for expanding them,
or
of the problems of economic
adjustment and full employment,

distributing

each of which

request.

the

Bank

ours.

are

' These

proper concerns

and

ably.
some

time.

inevit¬
for

attention

"our

occupy

interesting

memo¬

randum of ICC comment on Sep¬

Copies of this
had upon

tember rail results.

memorandum

may

similar prob¬

lems and possibilities'will

; 5',

magic

stir

Make big plans

titanic

bulent,

men's blooc
." In the tur¬

days

war

have become accustomed to plan¬
Post-War

of in¬
arranging

and

collect for and make payments

Of Interest

Situations
F.

sponsibility for advancing the cul¬
tural, business and social inter¬

records

taxes

Stock.

City, have
prepared a memoranda on Great
American Industries, Laclede

tion; -(c) 'provision whenever de¬
sired

New York

progressing society not only
are all called upon to live together
agreeably without destroying the
property values of the other but
a

the

conscientious, wellmanaged home financing institu¬

logue of

of the

Exchange and other exchanges.,
Copies of this circular may be had
from the firm upon request.
-

habits.

and

purposes

members

community of many#and complex
interests involving human beings

Corporation.

long

Goals

are

at war you

in the large and, executing
detail. With the Op¬

ning

finished

matter of portunities that will be ours Wlte*
necessity, to this war, let us in our spiOial field
purchase and aid in the sale of pf endeavor make suchbuseOf ou:
and
Government bonds; you will'Con¬ resources
opportunities af
tinue to put your house in brder will prove that we are' Worthy of
for future business by increasing our generation.
w)
jr;
will

continue,

course

your

and of public

assets,

your

reserves,
down the ratiq,

earnings

and

and by keeping
of your expense

Unless
pangs
set

are

to csuffer

the

of disillusionment, we musv
ourselves

for

clear

goals

possible < accomplishment,
work
services; and (f) periodic apprais¬ services to savers and borrowers. together for them attainment, hold
al
and
I am confident that you and all
report of neighborhood
steadfast
tothe
principles
of
trends and
values with special of us associated in promoting and proven worth" and press forward
reference to the interest and se¬ protecting thrift and home owner¬ to higher levels of economic and
curity of home
internal

Loan

take command and throw the
defeatists out of public and pri¬

they

will

savings and loan as¬
How¬

our

respect for them and observ¬

ever

These

at home fail them,

been

sociations for many decades.

thev will right¬

fighting that remains to be done,
where they come

yk:

have

They

care

talk about post-war planning, and
if they are impatient with it now

to the

Copies of this booklet may be had
request by writing to Mark
Merit, in care of Schenley Distill¬
ers
Corporation. 350 Fifth Ave.,
New York 1, N. Y.

similarly
stated and have been observed by
new.

pair

provide jobs

willing

be limited

can

custody of savings and their safe
investment in home mortgages

ning in the "Financial Chronicle/'

Now these requirements are not

charges

workers.
of all of the

praisal."

.■

I refer to them

stay-at-home — you and I
the shares in that debt. We

principal

nationally

Interstate Aircraft & Eng.

ready in the making will relegate
proper
ap- such apathy
to rapid extinction
and
k;y;.
"
only those will count who

reason¬

observed., there would have been

get the interest and

the

community development.

little need for the Home Owners'

already mountainous,

idend arrearage.

human needs and the response al¬

the

exceed

of an

out

stock

commu¬

of siding

means

Our business neither locally nor

business

before.

ever

come

not

determined

national debt

afford

able normal value thereof as

been provided

people far higher than
anything we have ever known,
can well afford to provide a na¬
all of the

for all of the

nity affairs

purchase price paid stodgy person who waits in his
or to be paid by the (purchas¬
office for saver or borrower to
er) for such property or the Come his way and leaves them to
construction
cost, > including go theirs when the transaction is
value of the unimproved lot, complete, The character of our

have

protected,

Cement

in an industry
with a bright future and offers in¬
teresting
possibilities, according
to a circular prepared by Lerner
&
Co., 10 Post Office Square,
Boston, Mass.
Copies of this cir¬
cular may be had from Lerner &r.
Co. upon request and also a cit-

3. "that the

stayed at

They have accumulated the great¬
a primary responsibility
economic guidance and est volume of savings in our his¬
progress of their peoples. A highly tory. Farmers, workers, corpora¬
developed nation liKe our own, tions, business men have on the
demonstrated

purposes; and

with a higher over¬
all standard of living than the Na¬
tion
has
ever
before
enjoyed.

such

to be suitable for dwelling

life

and

expenses;

dition of the property is

the veritable

have

and

and that the nature and con¬

boom which has enriched the

war

income

pa ted

good intentions of a few years ago
about taking the profit out of war
look rather like a mockery today.
We do know that these 11 millions

the

with

losing everything to save this sys¬
tem of ours. We do know that the

assumed

for

;

risking and

are

relation to the (investor's) present and antici-

return

do not yet

is the requirement which calls

for taking fuller part in

proper

know. We do know that it is these

To provide for a

Portland

low-priced

help

the construction cost bear

education, and

health,

the

add

averaged

would

them

Bright Possibilities
Giant

general requirement I spoke of
$2,467. Al¬
earlier in connection with serving
though they have increased in
the mass market and the indi¬
size each year since then they
vidual needs of borrowers* This eular on Riverside Cement class A
averaged only $2,807 in 1943. New
which the firm believes is an out¬
loans by all other types of lenders, requirement or responsibility ap¬
plies "directly to management itself. standing cement stock with a div¬
except individuals were substan¬
1939

to
emphasize the fact that our
come. There can be no doubt that
home financing institutions have
9 billion serious mistakes in home financ¬
a
responsibility for restudying
dollars, an all-time high. Similar¬ ing over the past were made be¬
this vast market and for influenc¬
ly, net current income of farm cause of our failure to produce a
ing the investments to be made in
operators amounted to more than larger supply of moderately lowpriced houses. Our sights were low priced homes.
12 billions, likewise an all-time
high. There is no profit in goods set so high that too many expen¬
New Responsibilities
\
that are not produced. On the sive house were produced and sold
This responsibility also extends
other hand, we all gain from a to large numbers who could not
to the management of credit as a
afford to own them. In a country
larger total output.
that has produced and rewarded protection to the individual bor¬
I have sought to outline the
Henry Fords and F. W. Wool- rower so that in each instance he
principal economic factors in pros¬
worths the building industry and is assured of value received for
pect and the approach to the solu¬
our
savings and loan institutions value given. In its passage of the
tion
of our
post-war problems
Servicemen's
Readjustment
Act
too, have failed to recognize the
which 1 believe promises the best
importance of concentrating on o£, 1944 (the so-called G. I. Bill of
hope of success. Such suggestions
Rights) Congress expressed what
low, income families and bidding
as I have made are, of course, only
we
should all regard as a mini¬
for their business.
a part of a comprehensive longmum
obligation in our dealings
For such families new houses
run program for full employment,
with every borrower, namely:
The objectives of such a program beginning at a price of $2,500 and
1."that the proceeds of (the)
running for the vast majority not
may be summed up as follows:
loans
will be used for the
over
$6,000 with a median well
To maintain full and stable
payment of — property to be
under $5,000 is required.
'
national production, income and
purchased or constructed
That savings and loan associa¬
employment to-the maximum
tions have not wholly neglected
2. "that the contemplated terms
possible extent through encour¬
the low cost field as the big mar¬
of payment required in any
aging the expansion of private
ket is evident by the size of its
mortgage to be given in part
enterprise.
>
,/
mortgage recordings. In
payment of the purchase price
To guarantee minimum stand¬ recent

ards

re¬

ferred.

nearly

incomes

net

2265

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4336

160

tio

owners.

items,

supplemented

controls of credit and

lo°r»s

annrais0^

ra¬
value

income

and .maintaining

ship are eager to see growth an^
to participate m achieving it.
In
this city in which Daniel H. Burnham worked and

will give both greater institution¬

for

al security

prosrpc-s

to
V—- —

savers

and personal security
and borrowers. They

——v.— j- - -

J...

v.—vtUlv-tw

your

architectural

counsel.
"wKe no

strove valiantlv
and

structural

rem^d

was

little plans,

of
who

said,

'iney Lave

social
ure

progress.
our

The -'final meas¬

advance

will

not

aspirations or anv form of or¬
ganization or machinery which
we create to achieve them but the
our

extent to .which the common man
and

our

Neighbors ;are fundamen¬
oil-

tally enriched.

to extend their

ers

(Continued from page 2261)
counted collectively for 19% of to¬

threatening ' the

solvency

to make up the housing indus¬

Certainly

try, on the other hand?

municipal finances. Unreasonable
the answer is not centralized con¬
taxing policies by cities or out¬
tal construction. There were prob¬
trol over housing, either : by in¬
moded, badly conceived : building
ably well over 20,000 full-time
codes
or
zoning
ordinances in dustry, by finance or by govern¬
building organizations active in
Let's keep housing demo¬
cities can also work against the ment.
the housing industry before war¬
;
b
interests of the builder, the mate¬ cratic and grassroots.
time curtailments set in. It is esti¬
Against -this
background, y I
rials
producer, the worker and
mated that there are about 175,000
the lender.
The results of# dis¬ think it is appropriate on this oc¬
building subcontractors in the en¬
cordant
or
ineffective
housing casion to discuss the role of the
tire construction industry, most of
policies within the Federal Gov¬ lending institution and the role of
whom handle housing contracts.
ernment can likewise spread government in the over-all- func¬
The
1940 Census listed
142,754
throughout the industry. And let tioning of the housing industry. ■
real estate agents and proprietors,
us
not forget that the ultimate
The Responsibilities of Lending
and 20,869 architects.
impact of all our policies is on
Institutions
The housing industry in its broad the public which the housing in-?
sense also includes the wide range
Lending institutions occupy one;
dustry must serve-Mhe 130,000,000'
of industries and manufacturers American
citizens
who
require of the decisive areas in the hous-?
,

the
materials
and
which are fabricated

producing
equipment
houses.

network

completed

into

assembled

and

It includes the complex
of distributors, whole¬

salers, jobbers and retailers

which

get those materials and equipment
into channels of housing produc¬

and
the

tion. It includes the workers

organizations

labor

the

ing

shelter.
The Unity of

the Housing Supply ownership,

interdependence of all
housing industry
essence simply another ex¬

This

branches of the
is

pression of ^he fact that the in¬
dustry is built around one single,
over-all housing supply. I do not
see how there can be any obscur¬

building trades and in the facto¬

ity

When

14,000 commercial banks with time
deposits of Over $21 billion, over
500
mutual savings banks with

certainly

confusion on this point.
speak of the national
of automobiles, for ex¬
It includes the wide variety of supply
lenders who finance the construc¬ ample, we do not break it into
tion
and
purchase
of housing. unrelated compartments composed
There are over 6,000 savings and of expensive limousines, Fords or
used cars.
We
loan associations, with combined Chevrolets, and
resources
of
about
$7
billion, think of it rather as one aggregate
whose primary investment activ¬ supply, and we judge its adequacy
ity is home financing. There are by its condition and by how well
the other basic depositories of the it matches up with the needs and
public's savings which invest part wants of the American public for
of their funds in housing:
about modern individual transportation.

and

over

about

combined

with

panies

$121//2

about

billion

300 life insurance com¬

$38

resources

There

billion.

of individual

thousands

are

investors

of automobiles,
is true of housing,
indispensable require¬
ment for every American family.
Because housing is a local prod¬
If

this

which is

true

uct, fixed to one particular area
and
to
one
particular site, the
basic measure of our housing sup¬

ply is the community
housing
debt supply. But here again we are
on
non-farm housing.
And, fi¬ dealing with one broad entity, not
nally, there
are
the mortgage with unrelated groups of hous¬
The housing supply of every
bankers who are part of the oper¬ ing.
serves
the
housing
ating system for home financing. community

who hold all told over one-fourth

of the outstanding mortgage

round out the picture,

gov¬

figure

also

functions

ernmental

entire

of the

needs
either

well, badly,

flow

the housing

needs of fami¬

of low income.

lies

■

Many States

supplemented local housing
controls
by
Statewide controls.

have

the

And

Federal

Government

through its established
credit

programs
home fi-

for

reserves

nahcing institutions, mortgage in¬
surance and assistance to munici¬

tear; part

investment

and

savings

operations of lending institutions
and to the -full operation of the

is constantly disappear¬

segment of the field can
throughout the entire hous¬

one

any

by the

ing industry.
too
new

costs

lenders get fewer
investments, and labor gets fewer
business,

jobs., ; As we learned from bitter
experience, in the early 30's, un¬
sound mortgage lending practices
based on excessive interest rates,
short-term mortgages and

appraisals
mass

bring

inflated

their

train

foreclosures, serious invest¬

ment

losses,

prostrated markets

for builders and the materials' in¬

the

which

can

the

planned neighbor¬

angle,

it calls

ilow of facts

the

housing

values,

and

further

blight which

encouraging
plan¬

good

constantly? .improving

and

values

new

Lenders

housing.

have

responsibility

communities in which they
make their loans. The stability of
to the

and

the

mortgage

investments

continued

availability of healthy

outlets

for

investment funds are

closely bound up with commu¬
nity policies fostering sound con¬
struction and sound planning of
subdivisions, neighborhoods and
the community as a whole. Lend¬

and

those

contin¬

housing

facts.
.

What

the supply,

action predicated

from the essential

for
on

and

market,

investors, instability for adjacent

spread of the housing

builders by
construction,

sound

From!

families.

all

needs, and for

the

for

needs

uous

of
the

the mutuality of interest
basic unity of interest

which cuts

all • minor,-sub¬

across

sidiary issues in housing. -1 ? .;;L•
We need competition in mort¬

lending

gage

conclusion

can

draw

unity of hous¬

ing, on the one hand, and the
manifold forces and interests that

tion

methods.

Zoning ordinances

should be
that

and subdivision controls

reexamined

make

sure

in harmony with the
over-all plans for futufe

they

are

city's

well-bal¬

growth and. will lead to

neighborhoods, - with assur¬

anced

of lasting lvalues for

ance

home¬

and investors. Cities can
make a far-reaching contri¬

owners

also

—

competitive

monetary

ad¬

full

role

for

drive

the

maxi¬

employment and maximum

mum

production after the war. There
is public interest in the soundness
and solvency of mortgage invest¬

new ones.

+->'t

tion

expressing this public inter¬

est

and

in the cities,

the

have

legislative
in/the states
Federal Government

housing,'.our

bodies

primary

obligation,

of defining clearly
specifically J just what the

seems

me,

belief is that
government's housing role in
cities, in our states and in our
Federal' Government should
be
solely supplementary to the oper¬
ations
of private enterprise.
I
believe that government should
step in only to the extent neces¬
sary to assist private enterprise in
doing a fully adequate job, as
measured by the housing needs of
all the people. As between the
housing responsibilities of local
governments
and
the Federal
Government, I believe that the
primary initiative and the pri¬
mary decisions must rest with the
communities
where
housing is
built and lived in.
I believe the
Federal
role
is
exclusively to
assist communities, to dp a truly
effective job, where such assist¬

nd the encroachment, ot slums
This

problem, if left unsolved, is

our

ance

is needed and

On the basis

desired.

;

of these principles,

with
broad lines of
responsibility in

would like to present you

Federal
Government
to the produc¬
better housing at lower

contribute

of tech¬
valuable
housing research is proceeding in
private industry, in private re¬
search organizations and in uni¬
versities. In no event should this
be duplicated by Federal activities.
However, because no private or¬
ganizations cover the entire scope
of the housing industry, there are
gaps in the scope of private re¬
search activities,
Here is where
the
Federal
Government
can
make an important contribution
—by stimulating full utilization Of
the technical resources of indus¬
try, by correlating technical ad¬
costs through

program

Much

research.

nical

and by filling

vances

research

the

stands and

The

proportion of the savings of the
•

effectiveness with-;

knowing where it
where it is going.

out

should

American people.

full

with

ate

big industry can oper¬

sions.

ments, which absorb such a large

My own profound

their

one section of
.market, the results are losses
for
home-owners, insecurity for

hr overbuild

ing institutions are as deeply in¬
families, this means volved as cities themselves in the
that the supply and adequacy of
problem of spreading urban blight
housing should be in balance withj
any

hoods,

live

Bill

responsibility
Lenders
help broaden and strengthen
market for both themselves

and

objective

Americans

the

The lender has a

est attached to the conditions un¬

ing workers.
houses or badly

are

to the building industry.

kept in balance with the de¬
mand.
In broader terms, recog¬
nizing the profound public inter¬

raise

tion
and

another reflec¬

and

provisions
Rights.

dustry, and breadlines for build¬
produce jerry-built

they

ing veterans who will undertake
their own homes under the

community's population.
In
purely business terms, this means
that the supply of housing should

the

builders

which

for

to buy

that

der

responsibility
to it that

buyers but especially the return¬

housing supply in every commu¬
nity with the changing needs of

less

that

high, the entire market for
housing suffers: builders get

material

protects both the lender and the
borrowers.
It is due all home-

clearly should be to match^up as
closely as possible the changing

building

whole.. This

governmental housing policies am
Acting through our democratic
processes, they should state clear¬
ly and specifically what the gov¬
ernment proposes to do and what
it does not propose to do in re¬
gard
to
housing controls and'
housing assistance. There should
be no doubt, obscurity or confu¬
sion as to the government's role.

ning,

are

growth of the housing industry as
a

price they are paying, to protect
them against over-borrowing, and
to assist them in orderly liquida¬
tion of their debt.
Such service

com¬

citizen.

American

follows

and

obligating themselves is worth the
served

needs

munity housing supply also are
constantly changing. The time is

vidual

home

the

long
past,
particularly
in our
palities for low-rent housing also cities, when any large proportion
performs an important supple¬ of the American people live out
dwelling.
mentary function in the industry. their lifetime in one
People's housing needs and their
Housing Is One Big Industry
housing demands change in step
We are all members of an in¬ with their changing family size;
dustry which is vast in scope they change as developing job
and complex in organization. But opportunities
lead to migration
the clearest indication that this is between cities, or between cities
and farms, or between the vari¬
in fact one broad industry and
not a series of unrelated indus¬ ous regions of the country; they
tries comes from the chain of im¬ change in pace with the changing
pact that action and policies in sconomic* position of the indi¬
have

lender has

The

to its borrowers, to see

by new con¬

struction.
The

prevailing investment rates.

with

ing from demolition and fires or
other hazards; part is being con¬
stantly replenished

dev el opme n t

the sound

housing for

of both.
It is not a static housing
importantly in the housing indus¬
supply, either in quantity or qual¬ housing industry. This responsi¬
try.
The majority of cities have
ity.
Looked at over any signifi¬ bility calls 'for security of prin¬
building codes, zoning ordinances
cant period of time, part of that ciple based on sound lending prac¬
and subdivision controls.
Several
supply is
always
deteriorating tices and for an adequate return
hundred cities have local housing
from depreciation and wear and commensurate
with
safetyand
authorities
established
to
help
meet

retard

materials arid new/construc¬

for

whether

funds, based on full public con-*
fidence, is essential to the future

mixture

than

barrier to

and should not act as a
new

invest-* vantage secured through unsound,
In all its housing operations, the
men! or for occupancy, requires shortsighted
practices that;: will Federal Government should sup¬
mortgage financing; > The power backfire on the entire industry in
port (and cooperate with (the,; ef¬
to
grant or withhold mortgage the long run. This is increasingly, forts of communities to develop
credit has therefore a broad in¬ the point of view of responsible
sound practice along these lines.?;.
fluence on the entire operations lending
institutions^" and it is a
2. Local communities and the
of the housing industry.. .It can point
of view ' which "must - be
Federal Government should as¬
be used to support better . plan¬ broadened and strengthened.'
?
semble the facts required for ef¬
ning, ' better values and broader
fective housing action. The lack of
The Role of Government in
development of the housing mar¬
an
adequate groundwork of fac¬
ket.
Or it can be used to reap ■Ay:
;•
Housing
tual knowledge I on housing needs
an immediate profit at the risk of T. What is the role of government
and the housing supply has ham¬
future losses or to resist progress in
the housing industry? -This
in housing techniques and plan¬ question calls first for some basic pered the housing industry's past
need / complete
definitions Of the lines of respon¬ operations.;; We
ning.
"■
:
housing inventories; and intelli¬
One of the most gratifying de¬ sibility in housing.
;> "*«;
;•;. - v
gent housing market analysis . in
velopments in- the recent history
There is clearly a broad public
our
communities. The, primary
of the housing industry has been
interest attached to housing and
the
increasing
recognition
by the housing industry.' There is a responsibility for this work rests
with ; the local communities jand
lending institutions of the breadth
public interest; both' locally and the local housing industry,,. But
of their responsibilities. , This is
nationally, in the conditions un¬
the Federal Government; can help
an important trend, and it is even
der which the American5'people
them set up the machinery and
more
important that it be con¬ live and raise their families and
techniques needed, for. continuing
tinued and extended in the post-: in the
adequacy Of the housing
It can
war years.
For that reason it is supply as judged from ' the stand¬ fact-finding : and anlysis.
act as .clearing house for .this type
worthwhile to identify just where
point of the public welfare. There
of
information .and can supply
the broad responsibilities of the
is a public interest in how well, the
communities and' industry with
lending institution lie. >J ■ • y ;
product of the housing industry
all the information on the nation¬
The lender's primary responsi¬ leads
to
sound
well-planned
al
economic
environment . in
bility, of course, is to the deposb neighborhoods and communities.
which they are working to proThere is an increasing public in¬
tor, investor or policy-holder who
vfde the basis for intelligent plan¬
supplies the funds for mortgage terest in a healthy and expanding
ning and intelligent business deci¬
financing. A large
and" steady housing industry that will play a

community—
or

rather

advance

homey building.
They
should
be. brought, into balance
with the best building practice

post-war

far-sighted community controls
In all these matters, it is clear
that the long-range interests of
lenders are best served by policies
that

deadweight on

and would act as a

sup¬

competition be¬ bution to housing progress by de¬
tween individual institutions and veloping housing codes that call
between types of institutions. But. for the condemnation and elim¬
that
competition should.; be " in ination of substandard structures,
terms of service and of responsi¬
for the proper ■ maintenance and
ble participation in an expanding repair of existing houses, and for
Most housing con¬ housing industry—not competition guidance in the development of

struction and most initial

ries

deposits

process.

influence,

port and encouragement in behalf
of
effective,
well-planned
and

Industry's Post-War Job

The Housing

Thursday, November 23, 1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

2266

the

in the gaps
interests of

raising the housing industry as .'a
whole
to
the
highest possible
plane of technical progress.

Federal
Government
and support an
effective system of home financ¬
4.

The

should

encourage

The availability
of financing
offered at reasonable terms and
on
a
basis of sound practice, is
fundamental to a successful at¬
tack on national housing needs.
Through educational efforts and
institutions.

ing
of

adequate

sources

appropriate supervision, the;
eral

should,., help
system of such
It should support the

Government

build up a strong
institutions.

operation of those institutions by
making secondary credit available
through regional banks. It should
assure a steady flow of new sav¬
ings into those institutions
through sound systems of deposit
and investment insurance.
/

financing insti¬
operating on. sound, prog¬
ressive principles, is the founda¬
housing:
tion for all broad-scale efforts to
gages on existing housing, which
1.
Local governments should meet housing needs andeshould
always represent the great bulk
modernize their housing tools. This be able to meet the large propor¬
0f outstanding mortgage
invest¬
is an essential preparation for efments. In this whole field of com¬
tion of those needs.

not

only a threat to the solvency

city treasuries; it is no less a
threat to the stability of mort¬

views of the

governmental

The local home

tution,

munity

housing

nolicies,

is' to

the definite self-interest of lend-

fective

post-war

Many building

development.

codes are obsolete

The

Federal

Fed- '

Government

Volume -160

efforts of home Federal—can serve the public in¬
financing
institutions ? wi t h ;a terest ;in housing; is by helping
sound system of mortgage insur¬ private enterprise and by supple¬
ance. The broad objectives of such menting
it where necessary to¬

2267

CHRONICLE

THE COMMERCIAL & FINANCIAL

Number 4336

tions,

should assist the

wards an over-all goal of decent
a system1 should be to encourage
private capital to meet housing housing for all American families.
needs which it otherwise would The participation of private en¬
be reluctant to finance on reason¬ terprise is basic throughout the
able terms, to tap national sources housing process; completely so in

Savings and Loan Institutions;
men

in the

Pacific theater."

financing at times of of the total need which requires
strains on the public assistance.

home

economic

unusual

market. The sys¬

home financing

The

also operate always to

tem should

We need, a full and free con¬
financing, in housing
construction and design, and in tribution from all branches of the
site
planning
and
subdivision housing industry. But we need
contributions based on recognition
planning.
-•

of
the
aggregate,., over-all
job
; 6.
The Federal Government, we're
tackling. We must all learn
Working with industry, should
to think and act as members of
search for means of
producing
one big industry, not as members
good
housing for white collar
of isolated: segments of that in¬

workers * and

not

earners

wage

dustry.
We
need
competition,
There are
initiative and
enterprise in the
millions of self-supporting famil¬
housing industry.. But let us ex¬
ies
who
want new
houses but
ert those essential qualities in be¬
how adequately served.

'or

present

afford; them

can't

past prices or under existing fi¬
nancing arrangements. This is the
big potential new housing market
for private enterprise, represent¬

ing a large untapped outlet for
production, investments; and jobs. the full facts on the total
housing
big challenge in post¬
needs of the community popula¬
war
housing, since it is doubtful
tion;:'"';.
;;'7
77
*77/
that a construction rate of a mil¬
We need unity and integration
lion and a quarter houses a year
in Federal housing policies and
could be sustained for very long
Federal housing functions in order
without decisive broadening of
to supplement effectively the pri¬
the market served by private en¬
mary
housing responsibilities of

terprise.-Undoubtedly the search
reach this

must encompass

market

broader

technical progress,

methods,

duction
made

possible

improved pro¬

communities

and

private

prise without confusion

over¬

While the specific activ¬

lapping.
of

ities

enter¬

the

Federal

Government

the economies
inevitably reflect the diversity of
by
large-scale functions that exist within the

operations, and possibly additional
housing industry itself, the indus¬
methods
of properly controlled
try has the right to expect unity,
financial assistance.
continuity and stability
in the
7.
The
Federal
Government, Federal Government's basic hous¬

exceed

now

which figure

500,000,000,

by
$1,ap¬

proaching 25% of total assets," he

ernments, should explore

assistance

financial

for

the need
in local

ing approach.

of the first five

course

drives

tack

position when the
made their sneak at¬

Pearl

You

Harbor.

preparing to do

now

loan

war

over our

Japanese

your

are

utmost

in the Sixth War Loan which be¬

gins

will

tion

of
of the

the

breaking

land

high

blocking

bottleneck

has

master

can

nancial

the

problems of full housing

whether

we can

develop the team-

and

Federal

The

and

fect

low-rent

for

grants

subsidized

bousing for families of very
income.
Local governments

low
and

Federal Government,- as rep-;

the

and fi¬

technical

Government work,; the -leadership,
local governments should per¬ housing ; statesmanship
procedures
for
loans and through the whole job.

is.

people, can¬

resentatives of all the

law

not meant to be

was

benefits.

and

com¬

veterans' rights

charter of

plete

that

said

the

bill had been criticized because it
does

not

medical

fields

such

cover

and

surgical care, treat¬
hospitalization of the
and death
compensation for the veteran and
his dependents,
but emphasized
that existing
laws cover those
fields and they have been amend¬
and

ment

wounded and disabled,

ed to

those that served

cover

paid.

the

to carry
I believe
we, have today
the core of that
leadership in every branch of the
industry—among; builders, lend¬
ers, v materials ' producers,
labor,
technicians; real estate interests,

communities and the Federal Gov¬
neglect in-.their..housing -func¬
ernment' This trend needs to be
needs ;of. any .section of
and
broadened.
the people. Nor can the problems strengthened

"It is not and was not intended
to be a 'bonus' bill or legislation
of

that

character,

tended

take

was

it in¬

of the

indo¬

nor

care

gold-bricker.

The

.con¬

who has not gone

who

one

and of lull develop¬
any way diminishing
full stability in. the, their contribution in their
special¬
Without

who
. rents
for privately-owned quarters. In
approaching this .residual segment

ing problems of families
can't pay more than slum
-

of the total

should

housing industry, be, wholly mas¬
tered without mastering the hous¬

housing need, its, area
clearly identified—not

ized fields, I
the

hope the 'leaders of

housing industry will develop

the capacity for working
the ' broad

have

together

front

housing

reach for broad

will

ceivable

near-term

extension

and

acquire;

immediate

attained
duction

This area should
non-competitive, and
Kept so. It should be approached
on a basis -of maximum local re¬
apcl lower costs.
entirely

sponsibility and maximum par¬
ticipation by private enterprise in
the construction and financing of
.

low-rent,

These

subsidized housing.
are

-eight fields, for gov¬

ernmental assistance
I

see

them.

in housing,

I think they illus¬

trate that the best way that

gov¬

ernment—whether local,"State or

cash

abnormal

from

ers

homes,

prices

house

unsound

for

construc¬

tion, and uneconomical schedules
of payments on

that

homes,

Meeting of N. Y. Group

home

invest¬

Readjustment Act is going
the

Of Am. Stat. flss'n

States

Treasury, will speak.
The
subject of the meeting is "PostWar Taxation and Its
Effects."

|o be

home loan program

greatest

the country has ever known,

and

that the operation will go on for

Other speakers

at least five or six years,

Houston

include G. Sidney
Paul, member of
the Advisory Committee of the
group which prepared the Twin
Cities tax
plan; Rufus Tucker,

since the
law provides that loans can be ob¬
tained up to two years after the

He expressed belief

peace treaty.

St.

Motors

economist

yond this.

Corporation; and Clinton David¬

"The lending institution
the

big

brother

the

son

is to be

transaction into which he enters is

practical
ments

the

and

monthly pay¬

"All types

The

Temple,

National

Inc.

Vice-President
City Bank, will

Chapter of the American Statis¬

consistent with his in¬

are

preside, Helen Slade of the N. Y.
tical

and expenses.

come

of Management Planning,

Alan

veteran,

the

General

that it will be extended even be¬

Association

charge

of mortgage institu- ' arrangements.

The Survival of Small Business

his

Immediate Responsibility

hunch that

set

disappear

each sector of

the industry finds itself fully oc¬

so: profound, because

for

housing is

the need

great, and be¬

the potentials of the hous¬

cause

ing industry are so vast, I am con¬
fident

ship

that the industry's

will

match

leader¬

the

savings and loan industry play a
proud

and

this job.

constructive

role

dollars

shown that

common

stock issues

by companies with assets of under a million
the Investment Bankers' Compensation was

20.9% of which the selling group got 10.1% of expected

proceeds, we can understand the effect that a
spread yardstick would have upon the future
market with respect to those same securities.
gross

thing to the veteran. We are mak¬

ing

token payment on

him.

we owe

about the

mourn

First,
approximately

spend

we, can

opportunity to

which

earn

they fought.

should;

less

who

And, second,
young¬

victims

the

are

earlier day and that we,

the peo¬
ple, must share the responsibility
—people who did not have what
took

failed

because

dom

the

take

risk

them

sent

now

for

meet the

issues of the

when year after year we
to fight the battle of free¬

hours,

unwilling

were

which

forth

have

assume

us.

"The veteran is a connoisseur of

but

war,

His

illiterate

reassimilation

social
us.

problem
He

country
racy

order

or
or

can

the

which
either

peace.
gravest

confronts
make

the

break it; save democ¬
scrap it: promote world
World War III."

Charles M. Potter, who has been

Ad¬

the con¬
ference that under the Service¬
men's Readjustment Act the Fed¬
eral

reminded

guarantee of home loans is
to apply only in cases

intended

Securities

the
an

order

declaring the "5% spread philosophy" to be a rule.

by July 5, 1944, and the matter was then fully submitted

for its decision.

Almost four and a half,
there is

decision

months have passed and still

the simple question of whether this

interpretation is a rule, and if it is, what the Commission
ought to do about it.
While the Commission delays unreasonably in its
plain duty to render an immediate decision, the future
of small business and the small dealer in securities is
in

jeopardy.

thinking dealers in securities, both large and
small, realize that the existence of a competitive market is
of the very life-blood of the business, that small dealer sur¬
vival is essential to large dealer progress.
*
Whilst the "5% spread philosophy" takes no account
All sound

profit motif, we believe it is aimed ultimately at the
a profit limitation rule entirely divorced from
war effort.
If this is done, what starts with securities

of the

creation of

ministration,

capital issues.
Security Dealers Association and
Dealers Committee petitioned the SEC for

Hearings on these petitions were held before the Com¬
All briefs were
economic mission in Philadelphia on June 13, 1944.

these

for

we conducted, a large number of those ques¬
of the opinion that the result would be disas¬

poll

Both the New York

not recognize that we

were

trous to small

suggest two things.

$300 billion to teach our men and
women to kill, why quibble over
a billion or so to help them have

sters

tioned

"To those who
cost I

debt

Loan Section of the Veterans'

pledge every effort, to help the

floated

was

to compensate him for that
service.
It proposes only to give
him a chance to catch up.
In a
true sense we are not giving any¬

big placed at the head of the Home

challenge that lies ahead.

(Continued from page 2243)

22, 1944) it

pose

-1.

goals.'

market that may be
through improved pro¬ cupied with a challenging job.
Because the interest in housing
.and financing .methods,

the- private

to safeguard the veteran borrow¬

This bill does not pro¬

he went.

can

only below the present bottom our goals high enough, unsound
limit; for privately financed, operr, competition, narrow partisanship
ations but also below any con¬

loan associations would undertake

"The program is so set up

skill, his earnings, his savings, his

independence and enjoy the fruits
of freedom
and
the things for

in the execu¬
of the Vet¬
Readjustment
Act,
the
States Savings and Loan
the purposes

has.

increased

has

former

The

into the armed

the

and

services

the-

and

the

League at the conference pledged
by resolution that savings and

counseling with him so that the

War II.

World

tions the

ment

erans'

United

be¬

the United States

the veteran may

without

%'y

not

of the slums

the money he borrows until it is

the

v
costs -which are now production. -■:>
The big remaining question is
the redevelopment of

those areas..

tion

Horace Russell of Chicago, gen¬
eral counsel of

time

purpose

a—higher, trast to be drawn is not between
for the Amer-. the lazy man and the self reliant
whole if we are man.
It is. between the person

There should be ican resourcefulness and ingenuity

study of ways and means

full

Veterans

any

As evincing its willingness and

of high pressure

coming victims

around $12,000,000,000.

vestment values.

the

desire to cooperate

selling campaigns.

of replacement
capacity for higher
security, his unemployment com¬
This housing standards — in terms of
pensation credits, two, three, four,
was
clearly far' in excess of the our resources in materials and or five
years.
In contrast the
use
value of those areas, which manpower and of the American veteran who has been in active
threaten; the * sol vency' of
city standard of living as a whole. I service in these respects comes
treasuries and of neighboring in¬ have full confidence that ..Amer¬ back to the same level from which

from

loan

of the maximum 20 years

which they may take to pay off."

the
extremely unstable effect on the
economy
which
would
result
from improper handling of the
or

are

need

also

areas

Urgently- in need

was

credit

the

"There

said.

penalties for pre-payment

standard of housing

land in blighted lean people as. a
reach
and ' sustain
for private and to
average
public redevelopment.1 4 In 1940, housing production off a million
the
estimated market price of and a quarter, houses a year.
I
slums and -blighted housing areas have full confidence that this -na¬
housing

sound

he stressed

and

oil

The

lent

acquisition

being

transactions,

course

pointed out.
"Bond investments
Savings and Loan League, pointed
have
expanded more than ten out
that the legal provisions make
times
in- the
aggregate in the it clear that the veteran will owe

working with state and local gov¬

ment on his part," said Mr, Pot¬
the 20th of this month."
The Taxation and Price Divi¬
of the Service¬ ter. "Insofar as possible the lend¬
men's Readjustment Act of 1944, ing operations are to follow estab¬ sion of the N. Y. Chapter of the
half of the over-all objectives and
Mr. Colmery told the Conference, lished sound mortgage practice. American
Statistical
Association
progress of the industry.
is to give the veteran a chance It is intended to encourage the will hold a dinner meeting Tues¬
We need community action in to overcome the
handicap which making of only such loans as will day, November 28 at the Hotel
housing, but we need it in the is his in proportion to the civilian stand up."
Sheraton at which Randolph Paul,
framework of the community con¬
Mr. Russell emphasized that the of Lord, Day & Lord, formerly
population because of the years
ference table on which are laid he
spent in the service, and the program under the Servicemen's General Counsel of the United

It is also the

for the proper tools to

associations

the

them,

observed

to veterans at 4%,
provisions of this Act,"

Russell

ordinary

have

loans

total bonds purchased

"The
our

tice in home

.7';7;;,

financing to date, which

war

his address had reviewed.

Over-All

Approach to Housing

good prac¬

stimulate and support

for

Need

the

where

prospects

mortgage funds for local mar¬ the great, bulk of housing pro¬ ! He made this suggestion against
kets where required, and to pro¬ duction but large and important the background of the savings and
vide support and reserve strength also even in that residual segment loan associations' participation in
of

for

Mr.

(Continued from page 2259)
fighting

our

have

their' money
under the

And Veterans' Loans
port to

willing and anxious to lend

are

the

Amreican
be gone.
Congress now has a splendid opportunity to act as
a
bulwark of our way of life by pressing remedial
action for the preservation of small business, an oppor¬
tunity, the grasping of which will be well rewarded.

may,

and will, pass on to other fields, and our

system of free enterprise will

In the meantime,

the people of our nation are

watching.

the " mathematical

computations

and

•
„

These complications and diffi¬

culties would be

in¬
volved to. many; small taxpayers.
numerous /

are -

Thursday, November 23, 1944"

FINANCIAL CHRONICLE

THE COMMERCIAL &

2268

appear- >

acceptable

if the declared-value

capital-stock
declared-value excess-profits

introduced

(Continued from page 2243)
be

would

lawyer

Hire

what

out

find

means.
*

unnecessary

for. simplicity has
fulfilled, but tne desire
and grown. Today

desire

This

yet to be

survived

has

simplification.

wants tax

everyone

Taxpayers want a system they
can understand.
Tax administra¬

•

simple laws in order to
their task.
To their great

tors want
ease

fore the returnr can

be prepared.

grappling with the problem of
simplifying the individual income
tax, the Treasury found that the
recording and listing of deduc¬
tions constituted the greatest com¬

plication for many, perhaps most,
tax payers.

simplification
simpler language in the
and regulations. Newspapers
magazines rely on quotations
people

law
and

the Internal

from

Revenue

Code

practitioners—the men
to supply their publications with
who make their livings or at least
humorous "filler". Many of these
'better living, because of tax com; plications — want
simplification quotations are highly amusing
and I should be the last to deny
;and have presented many con¬
structive suggestions to that end. anyone any amusement he can get
credit tax

chorus

The

complaint

over

present complexities has risen to
a crescendo.
While much of the

grumbling has served to let off
steam generated by the tax burden
itself, much of it is truly
merited.
For despite the com¬

plaints our tax system, generally
speaking, has grown more rather

complicated

less

than

with

the

passing years.
Basically, most tax complexity
derives from the necessity of ap¬
plying an equitable form of taxa¬
tion to a complicated situation in

specific refinements
are necessary to meet charges of
unfairness.
The fact that the in¬
come tax law of 1913 covered but

-which many

while the Revenue Act
of amend¬
to already lengthy statutes

pages,

of 1942 added 157 pages
ments

applying to income and profits
taxes, does not reflect sadism on
the part of Congress. It indicates
rather a prodigious effort to be
Many complications are un¬

fair.

to be sure, but othersmost of them—are the price we

necessary,

avoid un¬

equity or to

for

pay

economic consequences.

desirable

complexity

with

Concern

has

intensified in recent years because
of

the

in revenue

great increase

from taxation.
the

kind

which

tion.":':'
Yet I

filed; in the fiscal year

were

1944

had grown to forty
This tenfold increase has

figure

brought into contact with the in¬

volved

the

training
in the concepts or computations
required.
They have demanded
and they have received a simple
On the^ other hand, rates,
been greatly increased and
•;

were

words, how¬

counter to an¬
other meaning of simplification,
namely, brevity. The idea is some¬
times
expressed that taxes are
complicated because the statutes
are
too long; simplification/ ac¬
cording to this view, would be
achieved by drastic curtailment.
An example of this emphasis on
brevity is seen in a recent pro¬
posal to rewrite the Internal Rev¬
enue Code in 5,000 words.
I shall
have
something to say on this
point

run

little later.

Any broad view of tax simplifi¬
must distinguish between

complications which affect the
many and those which affect the
few.
Many
of the specialized
technical provisions of
the law
apply to

plaints
of

loudest

the

limited num¬
Simplification
tax structure

taxpayers.

corporate

our

com¬

must take into account both those

complexities which affect all cor¬
porate taxpayers and those which
affect the relatively few.
;V
*
Simplifying the Mechanics of the

.•"V.y.y

Structure

new

quired complicating remedial pro¬
visions.
Moreover, public deter¬
mination to permit no excessive

simplification" proposals is
determined in part by the num¬
ber of taxpayers involved and in
part by the amount of benefit
rious

accrue

to an affected

How these proposals
general public understand¬

affect

ing of the tax system is an addi¬
tional factor of significance, Cor¬
porate tax simplification involves
state

local

and

Federal

taxes.'

here only
Four

war'profits gave rise to an excess

levied

profits tax. Such a tax is inevit¬
ably complicated and when the
tax is imposed at high rates—as

taxes

well

shall

consider

the Federal side.

major

case

wartime

our

excess

tax—careful and compli¬
cated'adjustment is required to
prevent serious -hardships upon
taxpayers; iand harm to our eco¬
profits

nomic structure.

Simplification

broad

For the great
it means a re¬

different; people.
of* taxpayers

turn which is easy to fill out. Tax
are
often trouble¬
people who^are out of
practice in arithmetic.! ■ Moreover,
a multiplicity of income concepts,

computations;
some

for

credits and

confusion.
law
for

ran

the

makes for

deductions

Returns under a given

often be
most

of the return

simplified but,
difficulty
stems from the pol¬
part, the

icy laid down bv the law.
Then, too. what, some

aopk

upon as difficulty
return ;s often in fact

•"HIT the

necd&Mry be-

are
>

■

difficulty

sWd Record-

accounting

7xeeping which
•T

neonle

■

tijj

■

plification of the excess-profits
But postwar tax planners ap¬

tax.

to be unanimous on one
point.- No plan thus far observed

pear

calls for retention of the wartime

sim¬

;

Let

consider first the

excess-

profits tax. In the fiscal year 1944,
140,000 corporations filed excessprofits tax returns, on 70,000 of
which taxable excess profits were
shown.
No

one

will

deny that the

ex¬

cess-profits

is complex; in
fact, the
complexities of
corporation' taxation at the present
tax
major

time

can

if all

be laid at its door. Even

the. data needed to make
were

easily available, the

into

the

law.

Second,

graduation.

rate

Most

taxation
to

indicated

have

retain

graduated rates

desire

within

the

which

could

not fore¬

haps

tax

This ;

consolidated returns.

where simplicity would
to be a minor consideration.

filed taxable and non-taxable

Having

possible simplification is perhaps
more
superficial than real.

of sim¬

the interest

Changes

plicity at this stage would proba¬
bly augment rather than reduce
the total complications of a tax
with a short life expectancy. Lit¬
cussion here of the

which

could

particular fea¬
excess-profits tax

the

act

to reduce

be altered

the

are

father

than

require

.increases.;

\';v

tax

taxes

the

are

declared-value

the

and

capital-stock

tax

excess-

Some 510,000 capital

profits tax.

stock tax returns were filed dur¬

the

number 377,000

declared-value

the

for

excess-

profits tax is required on the in¬
tax return.

come

;

capital-stock and declaredexcess-profits taxes are a

value

In the corpora¬
tion tax structure remaining for
discussion
are
the
corporation
normal and surtax.
In the fiscal

roughly an addi¬
profits of
of 1%
for corporations with excess-prof¬
its, and of % of 1% for corpora¬
tions with no excess profits. Cor¬
would represent

tional levy on

porations with deficits would pay

commonly

alty

come.

accurately.

forecast

capricious, pen¬
forecast in¬
.thp^urden
additional' return

inability to
They impose

preparing one
much more impp.rtapto.the
of searching the crystal

and,
ball

for

figures that cap

be de¬

directors and
stockholders.
*
If income could be accurately
.

although

taxes,

these

superfluous, probably would give
rise to few complaints. Since the
declared-value excess-profits tax
is imposed on income in excess
of

10%

the declared

the capital
two

stock

times

value of

stock,' the total of the
is

taxes

minimized

declared

at a

if capital

figure ten

expected income.

achieve this minimum consistent¬

ly,

calendar

year

corporations

would have to be able to estimate

the' middle

the

year

their

exact income as of the end of the

guessing

is; to

the necessity

and

-the 1 difficulty

guessing accurately that the
attributed.

can

benefits

this

tax

will undoubtedly

be de¬

grounds other than sim¬

The tax

undue acumulations

of surplus also

structural
To

law.

contributes to the
complexity of th£ tax
corporate taxpayer

the

complication on the administer, since no definite
corporation income tax eral rules have been found
the number of concepts

return is

for
of
un-

employed: net in¬

net income

adjusted net income, surtax
income, ' normal tax net in¬

come,

clared-value

not

consolidated returns compared

gen-,

conspicuous
present

tainty. If income could be forecost accurately, these- taxes,
al¬
though superfluous, would give
rise
to
few
complaints.
They

profits

the

must, of

the complication lies in deciding
dividend1944, 476,000 corporation in¬ what investment and
come tax returns were filed.
Of policies to follow to avoid the tax.
be no denying that
this number 264,000 were subject There can
102 is very difficult to
to income tax. Probably the most Section

net

But

consider

course,-

Tax

The major taxes

prime example of the close rela¬
tion between simplicity and cer¬

tax.

and

that

900

consolidated returns

year

fiscal year 1944; of this
showed a tax. In
addition, a separate computation

ing

others

the

the list of corporation

con¬

plification.
The Corporation Income

Value Excess Profits Tax
Next

about 900 corporations

file

cided

and Declared-

Capital-Stock

seem

to
differently when circumstances the higher tax rate. But the deci¬
such as to permit tax reduc¬ sion to retain, repeal, or modify

tion

complexity.
The

case

capital-stock and declared-value
excess-profits taxes in 1942. The
conferees did not sustain the Sen¬
ate action;
But Congress might

dis¬

be gained from a

would

tle

lasheh "this

horse, which some¬
is still in the running, I sug¬

capital-stock and solidated returns. Since these cor¬
declare d-value
excess-profits porations reported an average of
taxes be simplified in the manner $3 million net income, we may
urged by the Treasury for some assume that making this addi¬
years and unanimously concurred tional computation did not aporein
by business—namely, repeal. ciably add to the burden of making
Some of
The Senate voted to repeal the out their tax returns.

the

to be modified or eliminated,

once

gest .that

basic provisions were

the

Unless

pooniaritv of these taxes

plication

through

proposals for permanent post-war

how

vested-capital—introduces

a com¬

from

It has long been a

tion.

In 1.942 only

year.

small

consider the

from the

oft-whipped

computation of the tax is
job. First the choice of
credit—average-earnings and inmere

one.

that simplification of the
excess-profits tax will come by
erasure
rather than by erosion,

appears

forecast,

The Excess-Profits Tax

that Congress would

cast the deficit.

But these payments are

those

are

excess-profits tax in our perma¬
peacetime tax structure.
It

fended to boards of

plification.

red.

operations for the lat¬
of taxpayers from five
It is unlikely, however,

group

nent

framework that

the problem of corporate tax

able; income

present limited range.
Per¬
a method involving a single
stock value and, accordingly, the computation might be worked out
capital-stock
tax
would
have using, for example, bracket rates.
Some people have gone so far as
been nominal. In practice, the only
deficit
corporations
which are to recommend as a simplification
really hit by the capital-stock tax measure the abolition of the 2%

about sim¬

could be said

torment

return

with the

complication and they have gen¬
erally been inserted at taxpayers'
urging. '
;• ■
; ■:
' '
Much

A flat rate tax on all tax¬
would reduce the

year.

removal of graduated rates

of whether they

black

corporations which did not an¬
ticipate deficits. Had the deficits
been anticipated, it would have
been unnecessary to declare-any
substantial
amount
of
capital-

These taxes are a

approach

complications \
surrounding, the' computation of;
the tax would still remain. Elimi-;

ter

icits.

the

must

cial

corporations, at

the

many

one,

solely
viewpoint of simplifica¬
policy of
capital-stock tax in its present Congress that small corporate en¬
form clearly fails to achieve this terprise should bear a lower-thanend.
True, there are some pay¬ standard corporate tax' load either
ments by corporations with def¬ through a specific exemption or

point out that these spe¬
adjustments all make for

cannot

excess-

for

arguments

want to

are

declared-value

return

five

are in
Since, as we
already seen, only threefourths of the capital-stock tax
returns are taxable returns, the

I: merely

exhausted.

the

have

The list is by

output.

means

profits taxj and the true excessprofits
tax.
It is within
this

mass

the

tax

con-'

things to

and timber

gardless

timber

for

tal-gains'treatment

Federal, taxes

time —the income, tax
(both normal tax and surtax), the
capital-stock tax, its ' companion

cent. 'It'means different

upon

from

mechanical

the

long-term

operations, and special treatment
of bonus income for excess mining

present

in the

and

contracts, the domestic corpora¬
tion doing business abroad, capi¬

The

have taxpayer.

taxes have been added. These fac¬
tors have magnified hardships and
intensified the search for loop¬
holes/1 Both conditions have re¬

sales

stallment

...

relative importance of va¬

The

the

reduced

•

Government should pay taxes re¬

the

cause

capital-stock tax is that corpora¬
tions which use the services of the

the current year, accelerated pro¬
duction of natural resources, in¬

tures

cation

which would

^income tax.

less in¬

structure

use

would

ever,

new

with little experience or

words and

sentence

used.

could

easier understand¬

with

if more

ing,

tax many persons who faced
task of filling out returns

come

inclined to agree that

statement

ness

,";V

■.

instances the same exact¬

achieved

ber

the

in many

requirements
have necessitated
broadening the individual income
tax base.
In 1940, four million

which

million.

waggishly

periodicals

quote reduce rather than increase
tax complications. They add pre¬
cision and thereby reduce litiga¬

required to finance the war. On
the one hand, expanding revenue

taxable individual income returns

however,
provisions

detailed

the

In truth,

base

income

adnormal

and

One

ab¬

the

deductions

normal

722,

Section

carry-backs,
period

other

means

with

dealt

further complications are and
by the host of relief taxes achieved a rational distribu¬
Actually, nation of graduated rates would
adjustments which were insisted tion of tax burdens.
upon by one group of taxpayers they have no relation to any ac¬ help simplify tax computation for
or
another for reasons of equity cepted principle of tax distribu¬ corporate taxpayers with incomes
or incentive;
You are all familiar tion. They bear more heavily on of under $25,000, comprising 86%with the formula' -for increased small than on big business. They of taxable returns hr 1942, and fori
earnings in the last half of the favor those firms with relatively taxpayers with incomes between;
base period, the 75%
rule, the stable earnings and penalize those $25,000 and $50,000, comprising •
5% of taxable returns in the same
80%
limit, the carry-overs and with fluctuating income.
Third,

understood by every taxpayer so

cepts
could

come,

and

net income for
excess-profits

de¬
tax

computation.
In addition, there
are capital gains, which stand in
a category by themselves.
These
different concepts of net income
result from the special tax treat¬
ment accorded partially
tax-ex¬

securities,

empt

credit

for dividends

cer¬

preferred stock of public
utilities, and the declared-value
excess-profits tax.
These five concepts of net in¬
come could be reduced to one if
the declared-value excess-profits
tain,

tax were

repealed, if the contrac¬

exemption from normal tax

tual

partially
exempt
securities
given in "the form of a tax

were

credit, if dividends received by
corporations were fully taxable or
fully tax-exempt, and if the pub¬
lic-utility preferred dividend de¬
duction were repealed; While all
of

it
in

possibilities

these

sues

not

advance

those;'other .issues
the caus^! m /sim-

not

un¬

This is one of the so-called
"penalty" taxes; yet its purpose is
not to penalize, but rather to en¬
courage
corporations
to
adopt
dividend policies that will result

ings.

fair

distribution

the tax

proposals for the
post-war tax structure call for
strengthening
this, tax;
others/
would retain it as at present; few,
burden./ Some

if any, would
From
it seems

repeal it.

preceding discussion
clear that a good deal of

the

simplification of the present cor¬
poration tax structure could be
accomplished bv a few changes in.
the
tax law, but
that most of
these changes involve, policv is-,
sues far transcending simplifica-tion.
,•:: ' ,'/•'■
During recent months a number
of proposals have been advanced
which would modify the,tax struc¬
.

ture

to give

greater coordination

of corporation and individual.in¬
come

taxes.

How these proposals,

adopted, would affect tax <si»plification >is a factor in; .testing'
if

their merits.

xn!

Perhaps the mostyfa ^reaching
suggestion is thapwe should*give
up
taxing corporations as such
and
treat them as we now-;,do
,

partnerships and proprietorships.

fi&s already
denied +o Federal cecurit'ec

tax vvouM be levied on the
corporation, but the stockholder
would include his allocable. por-

for

example,

nartial tax exemption
been

what

and

somdpases.

olification in at least
Thus,

is¬

unlikely .tiiayt^Q^gress

resolving

rrav

present

than simplification,

broader

reasonable accumulation of earn¬

received, the special

for dividends

allowances

85%

the

what

1941, so, ex¬ timY of corporate income in his
income
tax
return..
cept for a few special classes of individual
its
merits
on
other securities such as shares in Fed¬ Whatever
this method of taxing
eral Savings and Loan Associa¬ grounds,
issued since March 1,

tions. mrt'gllv
ifies will all

1965.

;

Even

tax-exemet scor¬

have been retired by

corporate, income would not he a
sten

the direction' of tax

sim-

•

plificptippi 'Although by'the ns»rt-

thtfUgH the income con-.

nership, method we would escape

•

Volume

2269

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4336

160

•

,■

tax ./rates are the adjusted basis for determin¬
in the law will ing gain or loss, each cover near¬
are not limited to the Government
expand' the area of uncertainty ly 4,000 words. More than 5,000
and
a
we would become involved in the
taxpayer.
They are, of; within which managerial deci¬ words are given over to special
■<
provisions for taxing insurance
enormously greater complexities course, found among private ac¬ sions must be made.
countants as well. /They cannot
In a sharply curtailed
of income allocation to individual
The uncertainties
of tax law companies.

many

to arise in many

decisions.

questions of accounting are boun

those

complications—for example,
arising from the taxation of
undue accumulations of surplus—

shareholders.
Other

suggestions for the

coor¬

dination of individual and corpo¬

statute, regula¬

eliminated by

tions,
A

high,

situationsv They

arise

court interpretation.

basic

determination

Some would treat

year.

poration taxv

flat-rate

cor¬

collec-.
tion on dividends, ulimately to
be credited against the personal
taxes

source

dividend

the

recipients.

Although total income would not
be allocated currently as

need to

the

under

method,

partnership

system would present the
additional complication of allocat¬
such

ing to the individual shareholder
the tax paid by the corporation.
Other proposals would allow a
credit for dividend payments at
the

would

This meth¬

corporation level.

tion of either

individual

income to

but

difficult prob¬
to the definition of

some

lems

taxes

shareholders,

raise

would

alloca¬

necessitate

not

distributed and retained earnings.
It

clear, therefore, that the
result of complete coordina¬
of corporation and individual

seems

net
tion

income

would

taxes

structure

tax

complicated than

Either the taxpayer or the

The

provisions in the tax law
for allocating charges for depre¬
ciation,; depletion, changing in¬
ventory value, determination of
bad debts, and so on, were intro¬
duced for the purpose of achiev¬
ing as correct an annual state¬
ment of income as possible.
The
importance of accuracy and with
it to a great extent, the complica¬
tions of applying these provisions
would diminish/if we had a real
averaging system which made the
allocation

deduc¬

and

income

Difference Between Simplification

ing, of itself, would involve sub¬
stantial changes in the policy of

Some

people

have

;

reasoned

tions

ity. Of

complete averag¬

course,

taxation, and'would considerably
complicate the law.
7
./
.

since individual

that

income

tax

simplification was readily
achieved, corporate tax simplifi¬
could

cation

realized

with

equal ease and should be accom¬
plished now. Certain things could
be done, as we have seen.
If we
could reduce the corporation in¬
come
tax structure to a single
income

concept and

single

tax

rate, the task of filing a tax
return would be simpler, espe¬

cially for small corporations. But
whereas the basic requirement of

simplicity for most individual tax¬
payers could be met by simpli¬
fying the structure and the re¬
turn, for the corporation compli¬
cated computations and returns
are only a part of tax complexi¬
ties. For many corporations, espe¬
cially the larger ones, they are a
very, small part.
The difference between simpli¬
fication of individual
ration taxes

can

and

seen

corpo¬

from

examination of the changes made

by the Individual Income Tax Act
This Act reduced the, de¬

of 1944.

duction problem—a major one be¬
cause
most individual taxpayers
keep inadequate records—by per¬

mitting a presumptive deduction
of 10% of income with a limit of

Code what would become of these

for

regarding which the tax
no
specific provision.
Taxpayers are not sure how such

are

some

law

The

averaging
simple as they

techniques

income

not

are

for

might seem; in fact, no really
satisfactory method has yet been
found. The benefits of averaging

partially achieved at present

are

through the carry-over and carry¬
back of losses.
Carry-backs in¬
volve fairly

serious complications.
of

An extension of the carry-over

losses, however, would not seri¬
complicate the law, and
considerably reduce the

ously

would

simplify the tax

place

although they also compli¬
language of the law and
regulations.
But if the law and
regulations fail to remove doubt,
certainty can be reached only by
one
or
a
series of judicial deci¬
sions and opinions.
I think you
will agree that in practice this is
getting certainty the hard way.

special income tax deduc¬
the blind, for unusual
.expenses,
for ,.a carry¬
of net operating losses, for

for

Committee
and

Committee
asked

staff to work
of

post-war

the

items

most

what

could

achieved

through complete averaging.
Complexity of the Law
Much corporate tax

the

from

arises

rules

out

variety

transactions.

business

spell

covering the taxability

great

complexity

attempt

complex

For

exam¬

general

transactions

these
sale

The

rule for

that

every

exchange of property gives

rise to

gain

liminary reports can be made to
Committee

basis

installment

account¬

ing, for tax-free reorganization or
tax-free
liquidation
provisions,
for

five-year amortization of war¬
facilities, for a foreign tax

time

credit, for consolidated returns?
;

internal revenue

Miscellaneous

about 180,000 words,

taxes use

.which almost 60,000 are for liquor

cate the

taxes alone.

7 /

The remaining 40,000 words are

forms

continue

income

they were be¬
fore;,
Although
they constitute
minor' components of individual
income,'they are the bulk of cor¬
poration income.- Thus individual

matters

technical

of the

system.
We recently
had the
pleasure of hearing from a com¬
mittee of this association as well
from numerous other organiza¬

tions and persons.
In

...'

few weeks an ad¬
visory group of accountants and
lawyers has been formed to assist
the. Treasurystaff in preparing
suggestions for technical modifi¬
cations of the law. Not all of the
•

25,000 words in the present Code.

given

ing

Estate and gift taxes use about

the

past

consid¬
simplificatipn but
provisions, such as collection pro¬ probably most of them do.
This
cedure,
provisions for internal work is highly technical and too
revenue
collectors and the Tax much should not be
expected too
Court, and /.other miscellaneous soon.
v"-1
7": '
'
devoted to general administrative

technical problems under
eration involve

matters.
Should the statutes of
But it should be understood that
regula¬ limitations, the release of tax liens the
technical problems are not the
tions to close up loopholes may or other provisions protecting the
hardest problems of tax simplifi¬
also ' create
uncertainty in the rights of, taxpayers be scrapped cation, The
really hard problem
minds of those engaged in bona for the sake of being laconic?
is that almost every simplifying
fide ' business
transactions.
Al¬
I .do not want to, labor the point.
change adversely affects some¬
though some people believe that I think you will agree that while one's interest and will be resisted.
too much attention has been paid something called an Internal Rev¬
Meantime, groups of taxpayers
to tax loopholes, we must recog¬ enue Code could be written in a
continue to
press
Congress for
nize that the willingness of tax¬ radically abridged style, it clear¬
special, provisions to ease real or
payers generally to comply with ly would have to be couched in
allegedly excessive burdens in the
the tax law rests on their belief very general language indeed.
tax structure; A large proportion
in its fairness and equity.
If taxes are to be fair and rea¬
At¬
of the technical complications of
tempts to achieve a high degree sonable, there must be many fine
the law have stemmed from ef¬
of equity frequently have been adjustments to the multitude of
forts of these groups in the past.
misconstrued as attempts to re¬ highly varied and complicated sit¬
As long as pressures for changes
form or penalize business.
For uations in which different tax¬
of this sort persist, we can hope
example, Section 102 may appear payers find themselves.
If the for little more
progress toward
to be unduly harsh to the few cor¬ statute were brief and therefore
simplification than two steps for¬
porations caught in its meshes, general, Who would make these
ward for every one we slip back.
but without such a provision the fine adjustments? Presumably the
Indeed, there is the possibility that
great majority of taxpayers would Commissioner of Internal Rev¬
our progress in this field may' be
have 7 a
legitimate
grievance enue acting under broad discre¬
in reverse, and that for every step
against a tax law which permitted tionary powers. Now permission
forward
we
may go
two steps
a
minority to take advantage of to use discretion in applying spe¬
back.
'
the corporate form of organization cific rules is a helpful and timeThe next few years promise to
to avoid individual taxes.
saving devices, but a grant of au¬
be an auspicious time to promote
The suggestion has been made thority not only to apply rules but
in some quarters that the taxpay¬ also to determine what the rules simplification in the corporate tax
structure.
As revenue i*equireers' task would be simplified if shall
be
is
carrying
discretion
ments recede, it will be possible to
the Government should accept the very far.
And that is the situa¬
make some tax reductions.
The
ordinary accounting definition of tion in which tax administrative
income as the definition for tax authorities would find themselves, task of reducing the number of
taxes and eliminating provisions
purposes.
In considering this sug¬ if they were forced to act under
which cause major difficulties will
gestion It must be borne in mind a vague, general directive.
I do

Attempts in the law

income "for

that

into

takes

tax

purposes

consideration

which would

factors

inappropriate in

tial

taxation

Moreover, the
which

some

income.

amount of income
makes during

company

not

think-

American

taxpayers

want that and I do know that the

administrative

tax

would be strongly

ing

such

mighty

authorities

opposed to hav¬

discretion

be recognized

be easier after the
ductions

ing

the

I mentioned earlier, namely, that
simplification would be advanced
long by1 drastically shortening the In¬

by segregating .dividends paid to
shareholders
into
taxable
and

war

wh^g

being made than

are

war

when

re¬

dur¬

revenue .re¬

quirements are so high.
Tax simplification is a laudable

and
that goal

policy when it is
its proper perspective
among
other
objectives.
Gains
It
possibility of applying a short from simplification must always
be balanced against any resulting'
code would be to direct tax prac¬
titioners, for example account¬ sacrifices of equity or of desirable
ants, to draw up income tax re¬ economic effects. As accountants,
turns in such a manner as fairly you are familiar with the diffi¬
to- reflect- income.
If accountants culties encountered under present
the

power

would

over

taxpayers

with it.
might be urged that another
go

to be comuuted as

At-the

soon.

than to the basic structure

for

solve nothing and reduce no com¬

would merely shift
complexity, and I think it is

plexity.

tax

placed in

tax

laws.

You

simplicity is
—one

also

know

that

derivative problem

that cannot be discussed in

isolation.

You

problems

of tax policy, of,

are

well

awa^'e

that

_elim¬

inating hardships/and of plugging
up

loopholes

are

responsible for

of the complexities in our
laws.
Your sense of values

many

tax

does not

•

These

This

Committee.

study has been in progress since
that time and we hope that pre¬

present stage less attention is be¬

the year

parties,

the Treasury

over

ple, consider the law dealing with defining income for certain other
Policy, considerations
the determination of gain and loss purposes.
from sale or other disposition of may dictate the exemption or paiv
property.

both

and

together on a study
taxation and report

Joint

of allocating certain
particular years.
Un¬
der fairly stable tax rates, a long
carry-over period would achieve
importance

Finance

from

staff

its

and

Ways

Senate

the

the Joint

is not an invariable con¬
loss which should
The concept and, hence,
for income tax pur¬ cept.
the amount of income depends in.
poses.
However, in a great many
transactions, such as the exchange part on the purpose for which
taxes. It adopted a basic exemp¬
determination of. income is
of like property for like property, the
tion of $500 per person and omit-Time does not per¬ were do determine for tax pur¬
certain transfers or exchanges in being made.
ted
the
earned
income credit1
Connection with a reorganization, mit a lengthy discussion of the poses what is income in each of
which had complicated the task
or
transfers on liquidation of a point, but it would appear that the numerous and varied situa¬
of filling out the return. • These
subsidiary, the general rule is the. requirements of taxation make tions which they constantly meet,
changes made possible a simple
modified
to
disregard
certain it neither feasible nor desirable they would either act without
tax tabic for use up to $5,000 of
transactions
otherwise
affecting to usb;1 without change for tax provision for uniformity, which
income.
7
taxable income.
The necessity of purposes', income as determined would be intolerable and. produce
However, relatively little was valuing certain property as of the for1 orcjihary accounting purposes. instant and profound chaos, or
done to simplify the returns of
date the
income tax first went
they would act uniformly under, a
taxpayers with large income or into effect—March 1, 1913 — in¬ Shortening the Internal Revenue system of policing by the account¬
taxpayers reporting business in¬ troduces
ri;. '>d:
Code
further
complications.
ing profession, or The Government
come, or capital gains and' losses. Difficult
This .brings me back to an idea or both. But sucfi a method would
problems are also posed

It simplified tax; computa¬
tion by reducing the number of

$500.

House
Means

medical

struc¬

ture,

tion

makes

basically

Would there

sections?

In
(which in the end transactions will be treated.
means the other taxpayers)
may some cases the law attempts to
find itself discriminated against, remedy the situation through spe¬
cific
if income is not properly appor¬
language
reducing
the
tioned among the years. You are fringes of uncertainty surround¬
well aware of the difficulties and ing the general rules.
The regu¬
weaknesses of. allocation, which lations further attempt to reduce
make it impossible to determine, these areas of doubt in the tax¬
with assurance the income of a payer's mind.
Both steps create
more
certainty,
and
therefore
particular year.;.

specific years less of a
factor in determining tax liabil¬

For Individuals and Corporations

Government

the

present law would be after
the streamlining that is possible.

largely because among the
possible
transactions

numerous

accounting problem is
of income year by

rate levies do not go quite so far..

But

vagueness

permit you to place sim¬

plicity above everything' else.
More than perhaps any • other
group

law

faced with handling the tax
applying it; to the indi¬

and

the
vidual < taxpayer,
A
yojuj are
in a
made of various ternal Revenue Code. Let's con¬ an understatement to say that no position to know what simplifica¬
sider the ramifications of any ex¬ one would be satisfied with the tion is feasible and possible* Many
provisions of the law where simi¬
results. '
'
'
lar
of
complications ; appear,
but treme economy of words.,
your
recommendations have
tax
simDlification
accomplished
I have not heard of anyone who
The superficial appeal of brev¬ been
time does, not permit its telling.
helpful in the past. >We in
least in the area from which cor¬
either
for
monetary
gain
or ity does not stand up under scru¬ the
Treasury, along' with other
poration tax complexity largely
Uncertainty of the Law
amusement has counted the exact tiny. Simplification does, not lie
groups interested in post-war tax
stems, namely, from the problems
number of words in the Internal in that direction.
>.•
revision, arei relying upon you to
'/PerA^k'^the 'major, cause of
surrounding the determination of
help resolve.'the complexities in
coipplaini^ 'however, is not so Revenue Code. A rough computa¬
Conclusion
business income.
tion indicates that the figure is
our
Federal! corporate tax struc¬
mu'chkbiiekof complexity as it is
about 385,000 words.
Simplification of the corporate ture.
one'of„perplexity..
A common
■
;
Income Determination
The income and excess profits tax structure is one of the objec¬
complaint is that the operation of
Accountants need not be told
use
about
140,000 words. tives of the studies of post-war
the law is uncertain in too many taxes
Utilities Brochure
that H>e determination of busi¬
Section 22, which states what is taxation now going on in Wash¬
cases. Although uncertainties have
ness income is a
complicated proc¬
Ira Haunt & Co., Ill Broadway,
long been present in the law, they included in and what excluded ington. The Treasury Department
ess
and will remain
so, regard¬
New York CHy. members of the
have become particularly impor¬ from gross income runs to about some time ago began an examina¬
less of tax. simplification meas¬
Section 23; which tion of the problems of Federal New York Stock Exchange, have
tant in recent years because, with 5.000 words.

non-taxable

story

categories.

could be

ures.

Differences

opinion

took
did

Repeal,,of
ihace
not

pa.^we
of

the

e^rped

credit

,in the Revenue Aofot 1°43.

effect

'fv

but

r»-»r,r

of the Individual Income Tax

1944.

on
'

•

"income

Act

increased

rates,

taxes exercise

greater influence on general busi¬
ness decisions^ Thus uncertainties
with
do

respect to a 10% tax liability
seriously affect business

not

provides

deductions

from

gross

consists of about 6,000
words. Section 112, which defines
the recognition of gains and losses,
income,

and

Section

113,

which

defines

tax revision in the

transition and

issued."a

brochure

Midland

June the UtHities,'£o/s plan of reorganiza.recently approved by. the
Congressional Joint Committee on
Copies may be had from
Internal Revenue Taxation, con¬ SEC."

nost-war

years.

Last

sisting of ranking members of the the firm

upon

request.

THE COMMERCIAL & FINANCIAL CHRONICLE

2270

.Thursday," November 23, 1944

DIVIDEND NOTICES

Battle Fleet Is Goaf
Of Investment Dealers

Tax Structure
(Continued from
would

to reduce tax rates if Federal

of raising revenue, and to accomr
plish other desired results through
legislation framed for the'specific

tials.

He recommended repeal of the

a dividend of one and
(l%%) on the preferred
capital stock of this Company, payable December
21, 1944 to the holders of record of said stock at

current,

now

year

three-quarters

November 30, 1944.

the close of business

profits

excess

cent

per

after the war,

and growing enter¬

In this connection, as an
to

assurance

business,

sug¬

are

restricted to

period, and later lowered to 25%.
said, might
be lowered from 23% to 20%,
He

The individual rate, he
recommended

that

also recommended
elimination of the present

Magill

surtaxes

lation and

use

in the post-war

of venture capital

period.

equitable, .to
income tax exemption

the

collect

somewhat, and to

the

United

been adopted

by investment bank¬
brokers and securities dealers
affiliated with the Banking and
ers,

Investment

gen¬

5%, rather than

retain the present meager exemp¬

Division

the

War

Finance Committee, as

their goal
in the Sixth War Loan, it is an¬
nounced. by

Richard M. Newell,

Dillon, Read & Co., Chairman of
Committee.
;
'
v

the Group

Posters

40-ship

displaying the

fleet will be placed in the office
of every

be simpler," he

"It would also

said, "and quite

$600,000,000 battle fleet
States Navy has

new

for

reduced to encourage the accumu¬

eral. sales tax at

Mr.

essen¬

porate rate might be'reduced from
40% to 30% during a transition

raise

Wick, Secretary

ex¬

He suggested that the cor¬

ture date.

J. Hardy, Chairman

Howard C.

exr

penditures

gested the possibility of the ad¬
vance adoption of such a repealer,
effective at some designated fu¬

Trust Company of New York.

November 16, 1944

business

pansion because it operates to dis¬
courage young

Transfer books will not be closed. Checks will be

Charles

immediatelysaying its continue
tax

hobble

would

ance

prise.

mailed by Guaranty

purposes."

of the earnings of the

There has been declared, out
fiscal

it nevertheless should be possible

system primarily for the purpose

New York 8, N. Y.

Street

Church

the tax

use

Company

American Car and Foundry
30

wiser to

seem

In 6fh War Bond Drive

2242)

page

will

which

firm's

prog¬

affiliated firm
the

marked

achieving its quota. A
twenty foot reproduction of the
poster has been erected on the

ress 1

Sub-Treasury
where it

Building
unveiled at

was

steps
rally

tions.
Moreover,,1 the sales tax celebrating the opening of the
drive on November 22.
7 ;
corporate dividends,, would bring a needed element of
"The 'financing of a complete
which he
said encourages
the stability to the revenue system."
issuance of bonds and debentures,
"There is much need," he stated, fleet to be built around two bat¬
and discourages equity financing. "for greater simplicity and fair¬ tleships, four carriers ■ and four
An era of business expansion, he
ness
in the tax structure,
and cruisers," said Mr. Newell, "should
be a spur to every one of our par¬
pointed out,* requires that stock more efficient administration of
financing be made &t least as the law. Moreover,", he continued, ticipating firms. in the Sixth War
Loan. This gives them something
practicable as bond financing.'1 ; "the tax structure should be stable,

the

double tax on

mining

anacurtwa

New

York

The

Board

November

Y„

DIVIDEND

NO.

1944.

22,

14d

Directors

the

has

Company

Mining

Copper

co.

Broadway

Anaconda

declared.,

a
One
Dollar
($1.00)'- per
share
Capital Stock of the par value of
$50,
per
share,
payable December 20,
1944,
to holders
of such shares
of record at the
close
of
business
at
3
o'clock
F.
M.,
on
dividend

its

upon

Secretary

DICKSON,

JAS.

Tlie Board of Directors of

Bayuk Cigars Incorporated
at a
meeting held today has

December

payable
of

December

record

the

business

vember

Secretary.

194J,t and

30,

CITY

POWER

of tlie

Preferred, Series B.
City, Missouri.

Kansas

December

All

the

stock

holding

such

tax

been

November

business

close of

the

Secretary.

CHEROUNY,

NTERNATIONAt.

directors

board

States
meeting held

Northern

(Wisconsin), at

1.944, declared a dividend o.
one and one-quarter per cent (1 V^e) per- share
on the Preferred Stock cf the Company,
paya¬
November. 15,

ble by

the close of business November

November 20,

for the quarter ending

1944,

20,

1944,. to stockholders

check December 1,

record

accord

completely

revenue

1944,

BUCKSTAFF,

Treasurer.

declared

pany

•Dock

final, dividend

on.

the common

the

Company
for
the
fiscal, year
31,; 1944,
of
fifty-five cents
55c) per share; payable December 15, 1944, to
.tockhclders of record on November 27,
1944,
it, the same
time, the Directors declared a
.uarterly dividend of
sixty-five
cents
(65c)
nded

October

>er

on.

15,

1945,

the

all

>1 business

stock payable January
of record at the close

common

holders

December

20,

(Special to The Financial

1944.

SANFORD B.

WHITE

Secretary.

that

books

will

not

York, N. Y„ November 10,

New

1944,

$1,25

per

able December

Treasurer.

A. SIMPSON,

November 25

■

to holders

pay¬

(Special to The Financial

of record

1944.

ROGER

FIACKNEY, Treasurer

extra dividend of 25c a

Tennessee

the

payable December 20, 1944, to stock¬
on

M, F.

A dividend of

share has been
declared, payable December 15, 1944,

December 9, 1944.

BALCOM, Treasurer.

Nov. 21,1944

Salem, Massachosetts

TEXAS GULF SULfhUR COMPANY
The

Board
of

50
of

dividend

Directors

cents
25

declared

has

share and an
per share on

per
cents

the

close of

KNOBLOCH.

Broadway,

J. B. McGEE
N. Y.

busi¬

Salle Street...

Treasurer

No,

November
219

Telegraph Co.
NO.

271

A dividend of 50 cents a share on the Class
A stock
of this company has been declared,
record

24,

December
at

the

15,

1944, to. stockholders of
business on November

1944.

amines,

forty

14.

1944.

HTTW"T,TNGT0N,
Treasurer.

1944,"a

special dividend
(40c) per share wa^

cents

the Board of Directors cut of na*t
payab'e December 18, 1944, to stock¬
record

1944.

the
F.

DUNNING,

business

De¬

Secretary.

(Special to The Financial

Chronicle)

CHICAGO, ILL.—Leroy L. Hoyt
has become associated with Quail

November

dividend No. 220
cf fifteen cents
(15c) per share was dm'ared
by the Board of Directors out of past earn¬
ings, payable January 2, 1945, to stockho!drrs
record

21,

the

1944,

Fleet"

in¬

drive

Walter W.

Wilson,

Morgan Stanley & Co.
.

Securities

are

brokers

members of the fifteen

mercial

bank

teams

dealers and

and

com¬

partici¬

pation in the competition among
these. fifteen teams

will

be, di¬

become

affili¬

Walter F. Blaine,
&

Goldman; Sachs

Co., Herbert F, Boynton, F; S.

ated with H. K. Baker & Co., Russ

Moseley

Vechten, Lee Higginson Corpora¬

Inc.,

Richard

Fifty Years of Remedial Lend¬
ing—The Provident Loan Society

346 Fourth Avenue,
New York. 10, N. Y.—Board.

Upham

Power,

Man's Bookshelf

Van

tion, T. Henry Boyd, Blyth & Cq,
Harris,

The Business

Schuyler

Co.,

Eastman,

Bertram
Bros. &

Kennedy,;

Jr.,

Co.,

John

Dillon

Brummer,

Co.,

Salomon

Hutzler, Harold H. Cook,

Spencer Trask & Co., J, Emerson

Thors, Kuhn, Loeb

& Co.,, J.

Ransom, White, Weld & Co.^ Ed¬
ward E. Anderson,, Discount Cor¬

Davenport, Iowa.
Mr. Hoyt has
recently been with the State of
Illinois Auditor's Office.
In the

—Carnegie Endowment for Inter¬
national Peace, 405 .West 117th

Co., Davenport Bank

(Special to The Financial

Building,

Chronicle)

ANGELES, CALIF;—John
Walter Fruehling and
Henry K. Orman have joined the

business -December

DUNNING,

Secretary.

International

Conciliation

Street, New York 27,
per—5^.
'?

N^—Pa:

Fox,

staff of II. R. Baker & Co., Bank

Mr. Orman
previously with Bankamer-

Knowles

Loom

Works

Mortgage
North

Shore

bonds
&

Chicago

Milwaukee

offer

interesting possibilities, according

and

Foremost

Dairies

Attractive Situation

common

offer

attractive

possibilities, according to

memo¬

randa issued by Buckley Brothers,
1529 Walnut

St., Philadelphia, Pa.,

prepared by Reynolds members of the New Y<mk Stock
& Co., 120 Broadway, New York
Exchange and other national ex¬
CUy, members of the New York
changes;,;. Copies of these memoStock Exchange.
Copies of this
to a report

icaCo.,
(Special to The Financial Chronicle)

LOS ANGELES,

Attractive Possibilities
Crompton

LOS

1944.

Street

for poration of New York, William M.
November 1944—Section I:
Uni¬
Rex, Clark, Dodge & Co: and Wil¬
versities Committee on Post-War
liam R. Rovensky, Hornblower &
International Problems.
Section
;;
' •
II:- Dumbarton Oaks Agreements ."Weeks.' r'

was

THE YALE & TOWNE MFG. CO.
On

Ford has

of New York,

of America Building.

November

21,

declared by

cember

payable

Treasurer.

Western Union
DIVIDEND

Mr.-Wright was

curities Co.

THE YALE & TOWNE MFG. CO.

holders of

The

the close of

November 14, 1944.

pany's capital stock, payable December 15, 1944,
to' stockholders o' record
ness
November 27, 1944.

divi¬

additional
the Com¬

Wall

cludes

past he was with Paine, Webber
& Co. and Priester, Quail & Co.

stockholders of record

New. York 6,.

dend

per

business; November 27, 1944.

SYLVANIA ELECTRIC PRODUCTS INC.

ILL.— George E.
become
associated
with Dempsey & Co., 135 South

Corporation

Common Stock have been declared, both

holders of record

Chronicle)

previously with Link, Gorman &
Co., Inc., and Thompson Ross Se¬

shore and

the

Building. Mr, Ford was formerly
with Greenwood-Raggio & Co.

CHICAGO,
Wright
has
La

DIVIDEND NOTICE
Dividend of 25c

CALIF.—

FRANCISCO,

SAN

John

dividend

the Common Stock

8, 1944,

been

iVL Stanton, The First Boston Cor¬

••■ ■' 4y

;

(Special to The Financial Chronicle)

Chronicle)

Street.

The Board of Directors declared
ol

dividend.

this

Corporation
DIVIDEND

27,
1944.
The stock
be closed for the pay¬

November

Monday,

transfer
ment

HILLS,

BOSTON, MASS.—Bruno Cop¬
pola has been added to the staff
of Trusteed Funds, Inc., 33 State

Johns-Manville

of record at three o'clock P. M.

to stockholders

dollar sign., ;

has

fixed for
each of the firms and weekly re¬
ports will be made-showing -the
quota

Treasury."

expansion would surely

•

(Special to The Financial Chronicle)

fig¬

108

NO.

can

greatly aided by stability and
certainty in fiscal affairs.. There

Business

(Special to The Financial Chronicle)

DIVIDEND

QUARTERLY DIVIDEND of Seventy-five
Cents ($.75) per share on the Common Stock
of this Company has been declared payable at
the Treasurer's Office, No. 165 Broadway, New
York 6, N. Y., on Tuesday, December 19, 1944,

that

SOUTHERN PACIFIC COMPANY
A

CALIF. ~ 7 LOS ANGELES, CALIF.—Her
rected by the following Managers
Floyd K. Sullivan has become bert A. May has been added to the,
who
will
serve
under
various
connected with Atlas Securities* staff of E. F. Hutfon & Co., 623
Bank Team Executive Officers:,
Inc., 9494 Wilshire Boulevard. Mr. South Spring Street.
Sullivan was formerly with Nel¬
Francis A. Cannon, The First Bos¬
"(Special to The Financial Chronicle):. 7/
son Douglass & Co.
:
v >
ton
Corporation,. Orlando S.
LOS ANGELES, CALIF:—Alice
(Special to The Financial Chronicle)
J, C. Watts is connected with Max¬ Brewer, Phelps, Fenn & Co., W.
BOSTON, MASS. — Winslow L. well, Marshall' & Co., 647 South W. Woods, Merrill Lynch, Pierce,
Fenner & Beane, David L. Skin¬
Webber is now with Schirmer, Spring Street.
Atherton & Co., 50 Congress St. j.
ner, Harriman, Ripley & Co., Inc.,
BEVERLY

The Directorsoflnternational Harvester Com¬

(WISCONSIN)

COMPANY

POWER

Fewer Company

HARVESTER

COMPANY

STATES

NORTHERN

OFFICE

shoot

Manning Barr, Batr
Brothers &
Co., Inc., John A.
Coleman,
Chairman,
Board
of
Governors, New York Stock Ex¬
change, Richard de La Chapelle,
Shields
&
Company,
Wickliffe
Shreve, Lehman Brothers, Frank

1944.

29,

Tho

it, designed to remain in
a decade.
;
.
.

If you contemplate making additions to your personnel
,
please send in particulars to the Editor of The Financial y;
Chronicle for puhltcntionin this column.

1944 to stock¬

December 22,

on
record

tax

express

effect at least

Broker-Dealer Personnel Items

declared

payable

holders

following

ure

opposing ( theories of .taxa¬
20; years that- w£ percentage of quota achieved in'
the drive, both in number of sales
should certainly be able now to
and dollar amounts."'
:
select and adopt with some assur¬
The Dealers and Brokers Corhance not only a settled tax policy,
but even a set of tax provisions to mittee which is directing "Launch

days, Mr. Magill said

cents (75c) n share have today
by Kennecott Copper Corpora¬

seventy-five

tainty, year after year, on: this
major item of his costs.
.
.
.
We have so fully experimented

definite

visualized much better than

poration'and

MAKERS OF PHILLIES

1944.
cents u»c)
distribution o.

November 17,

tion,

citi¬

will be

A cash distribution of twenty-iive

cash

N. Y.

New York 5,

special

and

pre-war

Philadelphia, Pa.
November 17,1914

KENNECOTT COPPER CORPORATION

man

with
is no apparent reason why such a
needs simpler.assurance could- not -be
high in comparison with provided by Congress * and • the

would

TREASURER

and

total

the

but

capacity to pay.
Warning
that
si

plan, he pointed out,

burden,

company

requested to transfer on or before December
14, 1944, such stock to the persons who are
entitled to receive the dividends.
H. C. DAVIS, Assistant Secretary.

income would con¬
to bear a fair share of the

tinue

ere

120 Broadway,

business

depend with, some. cer¬

tion in the last

and corporate

Checks will he mailed.

1944.

14/

persons

that

stock issues would be encouraged

close of business

the

record

rate, and

individual

can

with

der

Company, payable

30, 1944

been

possible

individuals
the,normal per¬
sonal tax, but subject to surtaxes
which would vary with the stocksholder's individual income.
Un¬

December 15,1944 to stock¬
holders of record November

Kansas City Power & Light Company
declared payable January 1, 1945, to

the

has

stockholders

as^ close as

that

zen

be exempt from

dividend of 50^ per
share on the Common stock

LIGHT COMPANY
Dividend No, 72.
November 15, 1944.
The regmar quarterly
dividend cf $1.50 per
share on the First Preferred, Series "b", Stock
First

at a rate

dividends received by

extra
KANSAS

that corporate in¬
be subjected only to normal

the

solution to this problem,

suggested

comes

able December 15, 1944 to
stockholders of record No¬

The stock transfer books of

1944.

Company w'll not be closed.
HERVEY j. OSBORN,

the

tax

dividend of 37^

per share on the Common
stock of the Company, pay¬

stock¬

1944,

15,

declared

& Treasurer,

INTERNATIONAL SALT "COMPANY
475 Fifth Avenue, New York 17, N. Y.
A
dividend of FIFTY CENTS
a share
has
been declared on the capital stock of this Com¬
pany,.
holders

1944.

December

CALIF.—Dave

Greenberg is with G. Brashears &

Co., 510 South Spring Street.

report may 7 be obtained
from ' ranaa- may be had from
Reynolds & Co. upon request. ■Brothers on request.
-

Buckley
•

2271

Number 4336

160

Volume

Flotations

underwriters.

OFFERINGS

.'ADMIRAL CORP. has filed a registration
statement. Lot; 216,000
shares of capital,
stock, par $1,
Of the total. 150,000 shares
are being sold by the company and 66,000
shares by
certain stockholders.
Proceeds

| to
S

for

1944.v

'Offered

$7.75

17 -at

Nov.

per

nined

share by

Ames( Emerich & Co., Inc.,
Doyle, O'Connor & Co., Inc.,
Chicago, Sills, MinCo., Inc., and F. S. YantiS & Co.,

Iiic. '

■ •

MACHINE & WELDER CO.
registration statement for $2,000,000 15-year 5 %• sinking fund deben¬
tures
due
Sept. 1,
1959.
Proceeds for
wbrking capital.
Filed pet. 9, 1944.
De¬
tails in "Chronicle," Oct, 12, 1944.
FEDERAL
filed a

has

company's working cap¬
ital.
The 8,600 shares being sold by a
stockholder are owned by Carl I. Friedlander who will receive the proceeds.'
F.
Eberstadt & Co., New York, is principal
underwriter.
Filed Oct. 21/ 1944.
Details
In "Chronicle," Oct. 26, 1944.

Majestic will be used not in excess of
$170,000 for the purpose of calling at $10
per
share all of the outstanding 26,016
shares (no par) preferred stock.
Holders
of more than 9,000 shares of preferred, in¬
cluding British Type Investors, Inc., and
Empire
American Securities Corp. have
stated: that such stock will be converted
into common stock and not presented for

100 and interest by
Central Republic Co. tine.I, Peltason, Tenenbaum & Co.,
E. W. Clucas & Co. and

Jackson & Curtis.

Paine, Webber,

■

GENERAL TIME

preferred stock
in offering to

4(V/L cumulative

Corporation

$100),

(par

outstanding 38,380 shares of
preferred stock the right to exchange
of

holders

6'f1

shell

basis of one share of 6%

dividend

for one share of new 4Vi 7"
plus $7*,, together with a cash
adjustment on the 6^ preferred

fixed

preferred

preferred,
date

all the

exchange.

for

stock is not exchanged the corporation
retire as of Jan. 1, 1945, or as soon

Mb
will

4,000 and
5(000 shares of the unexchanged 6'f pre¬
ferred with funds it has available.
Shares
pf new preferred not issued in exchange
will be sold to underwriters and proceeds
w'ith other funds of the company used to
rHire balance of outstanding 6'i preferred
stock at the redemption price of $110 per
share.
Underwriters arc Kidder, Peabody
4 Co., W. E, Hutton & Co., Lee Higginson
Corp., Stone & Webster and Blodget, Inc.,
Glore, Forgan & Co., and Hornblower &
\yeeks.
Filed Oct.: 17, 1944.
Details in
thereafter

between

possible

"Chronicle," Oct, 24. 1944,

CO.

Offered
Paul
C.

Nov.-

Davis

•../'

• -

•

■

"Chronicle," Nov, 2, 1944,

registration statement

real

Filed

etc.

"Chronicle."

filed

Shares are

Net

CO. OF AMERICA
registration statement for 48,of capital
stock (par $5).
to be offered for subscription to

Co.

whose/

filed less than

SEC.

sold to Lumbermens Mutual
for investment.
Filed May

POWER

FLORIDA

stock,
shares

CORP. filed a regis¬

fering

statement for 40,000 ^shares.cumu¬
preferred stock' (par $100).
The
dividend rate will be supplied by amend¬
ment.
Net proceds from the sale of the

25,000

preferred stock, together with addi¬
from the treasury to the ex¬

TRANSIT CO. has filed a reg¬
statement for $12,500,000 first
mortgage bonds, series A,

CAPITAL

istration

refunding

and

due Dec. 1, 1964.
The
sale of the bonds

net proceeds

and from a
$2,500,000 bank loan with treasury cash
will be used for refunding purposes and to
make payments on account of equipment
purchases, etc. Bonds are to be offered for
sale
at competitive bidding.
Filed Nov.
10, 1944.
Details in "Chronicle," Nov. 16,
from'the

1944.

MOORE WINDSOR CORP. has filed a
registration statement for 100,000 shares of
12'a cent cumulative dividend and partici¬
,

preferred stock,

pating

]par $1 per share.

proceeds of approximately $200,000
used for working capital and expansionof the company's business.
W. H.
Cobb
& Co.,
Inc.; New York, is named

The net

will

required, are to be applied as follows:
Redemption.. of 28/762 shares ,7 ,%: cumula¬
tive preferred at $110 per share. $3,163,820;
redemption of 5,940 shares of 7% cumula¬
tive preferred at $52.50 per share $311,850;.
donation to Georgia Power & Light Co. to
be used for redemption of certain of Its
securities as provided in recap plan of that
company $1,400,000; payment to General
Gas & Electric Corp. for 4,200 shares of
$6 preferred of Georgia Power & Light Co.
$75,600, and expenses $80,000, total $5,031,270.
Stock is to be offered for sale b>
the
company
pursuant to Commission^
competitive bidding Rule U-50, and names
of underwriters will be filed by post-effec¬
tive amendment. The succesful bidder will
name
the
dividend
rate on the stock
Filed July 21, 1944. Details in "Chronicle/
July 27, 1944.
tent

'/"■//

1944.
'

THURSDAY, DEC.

GENERAL

AMERICAN INVESTORS

CO.,

filed a registration statement
for 491,000 shares of common stock, with¬
out par value. ,•
>■
• -/
INC.r-has

Address—44 Wall

Street, New York City.

Busintess-44-lnvestment
'

company.

Underwriting—None named,

Offering—The shares of common
are to he issued by the

registered

stock

warrants -are exer¬
cisable
as
to 91,000
shares, at $10 per
share, 100,000 shares' at $12.50 per share.

Get.

15,

100,000

Such

1953.

shares at

$17.50

$20

per

$15 per share, 100,000
per
share and .100,000
.

share.

The maximum

proceeds to the company will be

$7,410,000

warrants are

exercised.

all

outstanding

The company says

it is advised that shares

issued upon exercise of the
be

VERTIENTES-CAMAGUEY SUGAR CO
' CUBA.—696,702
shares
of commor.
U. S. currency. Of shrs
registered, 443,850 are outstanding anc
owned by the National City Bank, N. Y
Several underwriters have agreed to pur¬
chase
$1,663,500 of first mortgage (col
lateral) 5% convertible bonds of company
due Oct. 1, 1951, owned by National Citj
Bank, N. Y. Underwriters propose to con
vert these bonds at or prior to closing an;
the 252,852 shares of common stock whicl
are received by the underwriters on
sucl
conversion, together with the 443,850 shrs
previously mentioned,' will make up th>
total stock to be offered. Harriman Riple:

sold

Stock

the holders

Exchange at market

warrants, may

June

Registration Statement No. 2-5533, Form

(11-18-44),

Details

vi.

•

"Chronicle,"

in
.

MANUFACTURING CO. has
a'registra^on. statement for $450,000
first' mortgaged convertible
5 V2 f/o bonds,
series A, maturing serially from 1945 to
L964, and 45.00,0 shares of common stock
($1

Til? shares - are reserved
upon, conversion'
of $450,000

par

-for

first
convertible bonds.? Underwrite*
Is P. W. Brooks ,& Co.. Inc., New York
Proceeds will be applied to the reduction
of bank loans.
Price range 101 for 1945
maturities to 99.5 for 1960-64 maturities.
Filed Julv 20, 1044. Details in "Chronicle,"

fssUe

1944.

shares
A

cumulative

stock

class

(par

convertible class

$5) and 120.000 shores of
$2) reserved for conversion.

of class

Sub¬
will be issued to present

tion on Dec. 1,
5

Names

to be

18,

1944 of $25,000,000

at ,105^

bonds

(/o

amendments.

Due

formulate plans to

the

invite com¬

the new bond Issue.
of' the N. Y. Public

jurisdiction
the company liar

that it has

proposed issue,

decided to

24 :
the

decision

Service Commission
over

Filed Ang.

Details in "Chronicle," Aug.
Sept. 5 voted to direct

1944.

The directors
officers

25-year ^

interest
interest rate

plus accrued

underwriters and

supplied by

class A and class

of company's

HARRIS
a

and

$24,603,an inde¬

available for conversion.

petitive bids for

MANUFACTURING CO. has
registration statement for 60,000

There's nothing so
as

defer the issue

temporarily.

sickening
long of

step in and go

stocks

just as they're ready

to hit the

skids.
Ji;

Thursday.

merits

fund

application

loan

each

to
to facil¬

effort will be made

and every

provide ways and means
itate loans.

SUGAR

Members

Bank

the

Credit

Group of Philadelphia, which will
serve
the entire Third Federal

District, are:

Exports—Imports—F utures

The Phila¬

delphia National Bank; The Penn¬
sylvania Company for Insurance?
on Lives and Granting Annuities',
Exchange

Corn

DIgby 4-2727

National Bank
Girard Trust

and Trust Company;

The
First Nationa1
Fidelity-Philadelphia Trus^
Co.; Central-Penn Nat'l. Bank'
stock
entitling them
to purchase $100
Tradesmens
National Bank
&
principal amount of the new debentures'
Trust Co.; Land
Title Bank &
for each 5 shares of class A stock or each
Trust Co.: Market Street National
8Va shares of class B stock held on a
Bank of Philadelphia; Ninth Bank.
record date to be supplied by amendment. I
& Trust Co.; Germantown Trust
Proceeds plus whatever general funds ar<
Company; National Bank of Ger-r
necessary will be applied to the redemp-i
holders

mortgage

July 27,

TELEGRAPH CO. has

debentures

scription warrants

HAXCHETT

prevail¬

ing from time to time on the Exchange..

stock to be

Reserve

number

terminate

—•Walter Whyte
of $10,000,000 to
provide an additional source ol
[The views expressed in this
credit
for small
and medium- article do not necessarily at any
Isized businesses in the reconver¬ time coincide with those of the
sion and post-war periods./ The Chronicle. They are presented as
group will lend every possible fi¬ those of the author only.]
nancial assistance to businessmen
during the days when enterprises
must be reconverted from a war¬
time to a peacetime basis, Mr
LAMBORN & CO.
Randolph said. Officials of the
banks which are members of the
99 WALL STREET
group will serve jointly on a loan
NEW YORK 5, N. Y.
committee which Will consider the
set

registration statement for

convertible

000

filed

S-4.

filed

wise

liquid to see
the cat will jump.

this writing
strongly in favor
of a renewal of strength. Yet
a
few more days of waiting
and watching isn't going to
hurt.
It
might even help.

Twenty Philadelphia banks have
Credit Group of

Details in

WESTERN UNION

I'll admit that at

formed the Bank

principal underwriter
"Chronicle/

N. Y.,

•

1944;' /

April 6.

public at the same, price.
All stock-,
holders will be asked to deposit shares in
the voting trust for a period of 10 years.
Bloren
&
Co., are
underwriters.
Filed
29, 1944/1
8,1944. v

Cc., Incv;

Filed Mar 29, 1944.

eral

the New York
prices

have
pre-emptive
rights to subscribe for the common stock
at
$20
per share in
proportion to the
respective premiums paid by them upon
Insurance policies issued by Mutual.
Vottng trust certificates representing shares
not subscribed will be offered to the gen¬

May

Details in

stock ($6.50 par),

are

Proceeds
purposes.

named un¬

GERMANTOWN FIRE INSURANCE CO.
a registration statement for 50,000 shares of common stock, $20 par, and
voting
trust certificates for said'stock.
Policyholders of Mutual Fire Insurance of
Germantown

Form Credit Group

1944.-

"Chronicle," Nov. 2,

has filed

com¬

pany upon exercise of outstanding common
stock purchase warrants, which expire'on

Cerf Co., Chicago is
derwriter.
Filed Oct. 24, 1944.

principal underwriter.
Offering price to
the public $2.50 per share.
Filed Nov. 10,
1944.
Details in, "Chronicle,"
Nov. '16,

Philadelphia Banks

the price

Floyd D.

which way

CORP. has filed a

$8.50 per share before expenses.
will be used for general corporate

tional funds

if at

in what manner,

the odds are

is $8.75
per share.
In each case proceeds to com¬
pany, after underwriting discounts will be
Inc.,

Co.,

Merchandise

Meanwhile

Philadelphia, according to
an¬
shares of nouncement today by Evan Ran¬
preferred dolph, President of The Phila¬
par
$5 per share.
As to 25,000
delphia National Bank, and Chair¬
being offered the public the? of¬
man of the organization commit¬
price is $10 per share, and as to
shares ; being offered New York tee. The Philadelphia group will

UNIVERSAL CAMERA

may

hold your money

registration statement for 50,000
cumulative
dividend

lative

new

among

are

80-cent.

tration

WEDNESDAY, NOV. 29

bidding.
Net proceeds estimated
approximately $5,605,000, together
the company's general
funds as may be required, will be used to
redeem $6,065,500 first mortgage 5'A series
A bonds due Feb.
1, 1979.
Filed Oct. 9,
1944. Details in "Chronicle," Oct. 12, 1944.

Details in "Chronicle," June 8.
; /////;/--,// -v/

1944.

CO. has filed

enough the

and go. Oddly

the ones
which have recently reported
the best earnings.
And con-

With such cash from

and' surplus funds., Unsubscribed

1944.

29,

highlighted other stocks out,
don't show much get all.

latter

POWER

made

any

which

petitive

record May 31,
at $8 per. share.
will be added to company's

proceeds

capital

also

1944.

28,

WATER

TIDE

present stockholders of
1944, oil a pro rata basis

registration
twenty
days ago, grouped according to dates
on
which registration statements will
in normal course become effective* un¬
less accelerated at the discretion of the
issues

were

Statement- withdrawn Nov.

481

may

registration statement for $4,500,000 first
mortgage bonds 3V2 Vo. series due Nov. 1,
1974, and 10,000 shares of 5 r/o
preferred
stock,
par
$100.
Bonds. and .preferred
stock are to be offered .for sale at com¬

EXCESS INSURANCE
nas

Sept.

Filed

Details

Sept. ,13,
1944.
Sept, 21, 1944.

Registration
15, 1944.
/ .;

Casualty
of

has filed
for $300,000 trade

which

capital

Proceeds for
be used for

(par $10).

stock

common

working

plant improvements and office and ware¬
house expansion.
Blyth & Co., Inc. are
underwriters. Price to public $16 per share.

applied to
expenses, acquisition of motor
estate, buildings, machinery,

organization
trucks,

before

action

DISTILLING CORP.
has filed a registration statement for 5/000
shares of $100 preferred stock, non-cumu¬
lative
and
non-participating.
Price to
public will be $110 per share; proceeds to
company $100.
Proceds will be used for
construction of distillery, $250,000; working
capital, $250,000.
No underwriter named.
Filed Aug. 14*. 1944. Details in "Chronicle,"

reason

of market
definite
be made.

another few days

;

STAR

OLD

THE

Proceeds will be

acceptances.

shares will be

List

the International Busimeeting in

Conference

ness

Both have
bending over they seem to Rye is another.
considerable market implica¬
stopped just short of a
tions which are bound to af¬
point where a serious break
industry for years to
has been averted. Whether or fect
not this condition is only a come. Up to this writing the
market hasn't weighed the
temporary one it is too early
news from either source. One
to tell. We will have to see

working
sale of

Details in "Chronicle,"-Oct.
/,.■ ■ ,..v

1944.

FREEMAN CO.

EUGENE

THE
a

NEW FILINGS
statements

has filed

INC,

Co., Inc., St. Louis, is named principal
underwriter.
Filed Oct, 27, 1944. : Details

24. 1944.

1944/

But

have

95,000 shares

12,

important, market sig- >
Kilgore report

have

upon-exercise of options
amounting to $112,499 will be added to
working capital.,
Kobbe,, Gearhart & Co.,
Inc. is principal underwriter.
Filed Oct.
the

registration statement for 25,000 shares
of common stock (par $10).: Proceeds will
be used for the acquisition of land, equip¬

and Glover & MacGregor,
-

Proceeds to Majestic on

capital.

there

front

news

number of events that

are

J|t

the

pic¬

specific.

i'fi

be that it hasn't
its mind what the
decisions will be.
The other
conclusions can
ment and for working capital.
Price to
is that no actual decision has
public $10 per share,
Not underwritten.
Filed Sept: 20, 1944. Details in "Chronicle;"
been made.
Both bodies, the
During last week's break
Sept. 28, 1944.
:
and the
the market has accomplished Senate committee,
CURLEE CLOTHING CO. has filed a reg¬
a
number of things.
It has delegates at Rye, have made
istration
statement for 52,290 shares of
class A common and 22,410 shares of class
certain suggestions and rec¬
Aug. 24, 1944.
pointed to the stocks which
B
common.
The shares are issued and
ommendations
and
nobody
outstanding
and
do not represent new
possess better than average
S AND YV FINE FOODS. INC. has filed
financing ,by the company. Stifel, Nicolaus
a registration statement for 75,000 shares
market strength and it has knows if these will be carried
&
TERMINALS,

COASTAL

1944.
17 at 100 and interest by
<fc Co., Dempsey & Co., A.

& Co.,

Inc.,'

and

records

phonographic

sell

■'

is one;

probable that other holders of pre¬
ferred will take similar action.
Balance
will be used to record, manufacture and

fore I become

nificance. The

Stocks have bent over.

& Co., Inc., • Ames, Emerich &
Kalrnan & Co., Inc., Sidlo, Simons,

Roberts

mainly

offered

buys or repeating advice
this time. I prefer
to see how certain stocks act
for at least another week be¬

today.

to sell at

It looks
the situation

if that were

and divi¬
There

considered.

are

new

re-enter the

particularly

cific stocks

hasn't changed/

ture

company's statement said

redemption, and

willing

long side, if the long term

people in the Alva/Okla., community who
are interested in construction of the grain
elevator.
Filed Aug. 8, 1944.

Allyn

Co,,

and 2,500 shares will be sold by
another stockholder.
Proceeds from sale

TERMINAL ELEVATOR
registration statement for

house.

head

j JESSOP STEEL CO. has filed a registra¬
tion
statement for $1,000,000 first mort¬
gage 5 '^sinking fund bonds due Nov. 1,
1954.
Proceeds will be used for general
cprporate purposes.
Filed Oct,
Details in "Chronicle," Nov. 2,

has filed

I'm

point in mentioning spe¬
as I have no in¬
tentions
of
recommending

stockholders upon exercise

options

10-year MA subordinated sinking
fund notes, due 1954.
Proceeds will be
used for the purchase of the real estate
and
the
construction of a one million
bushel elevator, with a three million bushel

aggregate of 35,898

issued

95,000 shares will

sold by the company,

$250,000

shares of 414 rA
preferred stock was issued in exchange for
the 6'A preferred stock.
None of the 4%"A
preferred stock was sold to underwriters
and the corporation de-registered the 2,482
Ehares of 4 V'a 'A preferred stock not issued
in accordance with the exchange offer.
I

PUBLIC

ALVA

••

•

cent).

one

INSTRUMENTS CORP.
for 38,380

has

297,500

for

increase

used

registration statement

hits filed a
shares of

filed a registration statement
shares of common stock (par
Of the total 200,000 shares will

CORP.

dends

going into the red, particular¬
ly if I've already seen them
in the black. If at some later
time other indications appear

TELEVISION

RADIO

MAJESTIC

registration statement for 75,000 shares of
55-cent
cumulative convertible preferred
stock (par $1), and 33,600 shares of com¬
mon (par $1).
Of the common stock to be
offered, 25,000 shares are for account of
the company and 8,600 shares, for the ac¬
count of a stockholder, , Proceeds, will be

Nov.

Offered

has filed a

AERONCA AIRCRAFT CORP.

Courts & Co.,

Oct. 5. 1944.

Details in "Chronicle,"

1944.

First Securities Co. of

deter

us.

Dpmpsey & Co.,

ton

unknown

are

been

not

dates.have

well when earnings

present

iffering

show

2248)
LINCOLN
PARK
INDUSTRIES,
INC.,
has
filed
registration
statement for more than the next man. Nor,
$250,000 6','0
ten-year debentures matur¬
for that matter do I care to
ing Nov. 1, 1954.
Debentures to be of¬
fered directly by the company at par and
hold
on
indefinitely with
interest.
Not underwritten,
Proceeds for
additional working capital.
Filed Sept. 27, stocks
looking like they're

below a list of Issue*
whose registration statements were filed
.wenty days or more ago, but whosi

De¬

don't

(Continued from page

UNDETERMINED
We

additional

Filed Oct. 30, 1944.

''Chronicle," Nov. 2,

tails

used

will

company

working capital.

"Chronicle," Oct. 19, 1944.

OF OFFERING

DATES

which

number

are

Savs

& Co. heads the. list of
Filed Oct, 9, 1944.
Details

Nelson- Douglass

former

the

among

there

Walter Whyte

will

stock

versely

Tomorrow's Markets

cumulative convertible class A
be offered at $5 per share.
Proceeds Will be used for working capital,
7f,b

The

Calendar Of New Security

FINANCIAL CHRONICLE

COMMERCIAL &

THE

Company;

Established

1856

Bank;

mantown

ton National

Trust

Trust Co.*. Kensing¬
Bank; Liberty Title

Co.:

Real

Estate Trust

H. Hentz &

Co.

Members

Stock
Exchange
York!; Curb
Exchange
/.Cotton Exchange
Comniodit$ / Exchange,
Inc.
Chicago
Board of Trade
New Orleans Cotton Exchange
York

New

York

New

And other

Exchanges

•

Company;. City National Bank;
Second National Bank; Erie Na¬
tional

Bank,

and

Broad

Street

Trust Co.

bank

credit

1691.

Exchange Bldg.

YORK 4, N. Y.

the formation of
fund

ferred to in our issue

page

Y. Cotton
NEW

The plans for

the

were

re¬

of Oct. 19,

CHICAGO

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

THE COMMERCIAL & FINANCIAL CHRONICLE

:272

Teletype
NY

REMEMBER

Trading Markets

Firm

1-971

CUBAN SECURITIES

Telephone

Railroad

Government

(

th WAR
actual

Sugar

and up-to-date

THESE

(%$

SPECIALISTS

50 Broad Street

O YER

■■

TRE

of the

COUjYTER

for

reasons

prompt, accurate service in

our

FOREIGN SECURITIES

trading facilities.

—are some

r.ARL MARKS 4 r.O- INC.
\

LOAN

trading markets;

—have wide dealer contacts*

HAnover

2-0050

Thursday, November 23,1944

SECURITIES

M.S.WIEN&CO.

{Actual Trading Markets, Always)

Members N. T, Security Dealers Ass'w

New York 4, N.Y.

•

40 Exchange PI.,

AFFILIATE: CARL MARKS & CO. Inc.

CHICAGO

HA. 2-8780

N. Y, S
Y.

Teletype

1-1397

Kobbe, Gearhart & Company

Security Traders Association of N. Y. to
Hold Election Meeting December 1st
rrieetihg of the Security Traders Association' of. New
on
Friday, Dec. 1, at the Produce Exchange
Luncheon Club, at 5:00 p. m., for the election of officers for 1945 and
such other business as shall properly come before the meeting.

INCORPORATED

Members

York

NASSAU

TELEPHONE

The Annual

York-will

New

.■

Security

STREET,

r' vrUIEAI)ELPinA:

REctok 2-3G00 '

Dealers

NEW

A Low-Prieed Stock in an

With

Giant Portland Cement

Pell .Teletype

Industry
Bright Future

YORK

TELEPHONE

Enterprise 6015

held

''.

Association

NEAVYOIUv

1-576

licity for financial statements by
investment houses, and its own
statement, as of Sept, 30; 1944,
the end of its twenty-fifth year,
shows total assets of $2,637,749
Sharp & Atkins Now V.-Ps. and total invested capital of $1,A story of the growth of the
883,460, including preferred and
Southeast, particularly the Pied¬ common stock of $7 86,700, capital
mont area of the Carolinas, was surplus of $75,542, and earned sur¬
reflected in the report given by plus of $1,021,218.
R. S, Dickson, President, at the / N. S. Sharp of the Chicago of¬
annual meeting of stockholders of
fice; 135 South La Salle Street,
the investment firm of R. S. Dick¬ and- J.
Murrey Atkins of the
son &
Company, at its home office Charlotte office of the firm have
m
Charlotte, on the twtent'y-fifth been appointed Vice-Presidents.
anniversary
of
the
company.
From a- small beginning in GasFive "Streeters" Over
tonia, N. C., in a business con¬
fined to dealing in textile shares, Seas Have
New Addresses

Stocks 2%

Dickson Foresees Great

Div, Arrears Ctfs. 18

Future Growth In South

Circular Available—Send for

Copies.

■

the

C. E. de Willers

Richard F. Abbe

has become

company

firm

assigned

ment

tained in New York and
and

cities

several

other

besides the home

the

fact

that

has

Chicago,

operated

APO

a section that has
outstanding growth pnd
prosperity
since
the
last
war.

predicted
growth of the

■still'in. the

point

where

ventures.

own

finance
called

The

French

George Leone

the

polls will open at 4:30 p. m. and will close promptly at
The final slate of candidates for the various offices, as

6:00 p. m.

submitted by the

Nominating Committee, is

fellows:
'
President—Richard F. Abbe, Van Tuyl & Abbe.
First Vice-President—Chester E. de Willers, C. E. de Willers & Co.
Second Vice-President—L. A. Gibbs, Laird, Bissell & Meeds.
Secretary—John S. French, A. C. Allyn & Co., Inc.
Treasurer—George V. Leone, Frank C. Masterson & Co.
Directors—George Geyer, Huff, Geyer & Hecht; Harry J. Peiser,
Ira Haupt & Co.; Thomas A.
Larkin, Gocdbody & Co.
V
Tmstees of Gratuity Fund—Arthur B.
Retallick, Coffin & Burr;
William K. Porter. Hemphill,
Noyes & Co.
Delegates—Thomas G. Horsfield, Wm. J. Mericka & Co., Inc.;
Michael J. Heaney, Joseph McManus & Co.; D. Frederick Barton,
Eastman, Dillon & Co.
as

Alternates-^Allison W. Marsland, Wood, Gundy & Co.; John F.
Keilly, J. F. Reilly & Co.: Otto A. Berwald, Berwald & Cq.; John D.
Ohlandt,. J. Arthur Warner & Co.; Jules Bean, Luckhurst & Co.
Nominating Committee (four to be selected)—Richard M. Barnes,
A. 11. Kidder &

Co.; Arthur W. Bertsch, G. A, Saxton & Ccj/ Inc.;
Henry G. Bruns, H. G. Bruns & Co.; Charles H. Jann, Estabrook&Co.;
T, F.

Mackessy, Abbott, Proctor & Paine; Harry F. Reed, Carl M.
Shenpard, Henry S. Robinson & Co, Inc.;

Loeb. Rhoades & Co.; E, K.

Lee Sherman, L. D. Sherman & Co.
;y: -/ •
For. the first time in a number, of years there were
!

.Eastern States Pfd.

nomina-

company

strongest

Warehouse
■

Henry De Meester & Co.
Members

c/o

Postmaster,

Telephone:

.Bell

Mean

its

upon

has been one of
of pub¬

advocates

and

stocks

offer

employees of the
same
organization shall vote as a unit and shall collectively be
entitled to only one vote,
Such members shall designate one of
their number to cast such vote and if a majority thereof cannot agree
.

designation,

such

1-1721

shall

members

•

not
"

eligible

insurance

casualty

situa¬

attractive

tion, according to a memorandum
issued by White & Co., Mississippi

Valley Trust Building, St. Louis.
Copies of this memorandum
and an interesting tabulation of

Mo,

insurance and bank stocks may be

had from

White & Co. upon re¬

The firm also announces
copies of their "Fire and
Casualty. Insurance Stocks Man¬
ual" may be had for the asking.

quest.
that

INDEX
/'

•'

Bank

and Insurance

Broker-Dealer

•

Y:'

•■

p0.g£?

Stocks...;■....2250

Personnel

Items.... .2270

Calendar of New Security Flotations 2271
Securities ............,. .2254

Canadian

Municipal News and Notes.........2256
Mutual

members

are

such

Higher Yields

Fire

Martin Scherk, 32218090,
APO 17381, c/o Postmaster, San
Francisco, Calif.
Lt. Thomas F. Doyle, 0-1647920,
APO 655, c/o Postmaster, New
York, N. Y.
With the exception of Lt. Doyle,,,
who was formerly with Hornblower & Weeks in New York, all
were associated with Ira Haupt &
Co., New York City.

which reads, in part, as follows:
All the members who

upon

Whitehall 4-1044

Teletype:

Attractive Markets

vote.1".'

Dealers Ass'a

San

year's Nominating Committee are to be elected
from a slate of eight candidates submitted by the Nominating Com¬
mittee.
•/-'..Y
.Y-.-Y '•/,/..■
Attention is called - to Article IV, Section 6, of the By-Laws,
.

Security

11 Broadway, New York 4

However, it is important that a ballot be cast by
eligible voter, because under the By-Laws, as amended, four

members

Corp.

..Common

'Bonds,

tions by petition.
each

Whse.

Continental States Tel.

Sgt.

tage
of the
opportunities
for
building and financing successful
enterprises in their own territory.
S.

& Bonds

Central

Irving H. Isaac, 0650235,
719, c/o Postmaster, San

APO.

Southern investors to take advan¬

John

Term.

Stocks

Francisco, Calif.

development

could

now

Bonds

Power Co.

Distribution

to the following "Wall
now
serving in the

565,

Lt.

future, and declared

financial

Stocks

-'Bonds

Francisco, Calif.

that the
South is

that the Southeast had reached

Captain Leon Lees Jr., 05690-32,

shown

greatest

Teletype BS 69

Lincoln

Captain Bertram M. Goldsmith,
0523731, APO 464, c/o Postmaster,
New York, N. Y,

office in

SQUARE

9, MASS.

1990

Northwest Cities Gas

armed forces:

Southern

principally in

Likewise,

OFFICE

BOSTON

Streeters"

Charlotte in the Wilder Building.
Mr. Dickson attributed its growth
to

POST

Tel, HUB

New APO addresses have been

of real consequence in the invest¬
field.
Offices
are
main¬

Louis A. Gibbs

LERNER & CO.

2253

Funds

Our

Reporter on Governments... ,.2258
Reporter^ .Report,...,...,.... .2254
Public Utility Securities.,. .2246
Railroad Securities .i.i..i.........;.2247'
Real Estate Securities........,,,,.,2248
Securities Salesman's Corner,.... ,2252
Our

Tomorrow's

•:'■■■■

Markets—Walter Whyte

Says

,2248

Unless notified in writing as to who will cast the

firm, the Tellers

will issue it to

ballot for any
the first eligible voter making

In This Issue

request.;-".

Despite the exigencies of rationing, Chairman Heaney and the
Arrangements Committee* promise that the buffet dinner to be served
following the meeting will be up io its usualhigh pre-war standard.
In addition, the committee has provided' an interesting program. of
entertainment, so that it should be worth while for every member
to attend,
Beer free, as usual. It is hoped that eight or ten turkeys
will be given out as door prizes, but if this is not possible, there will
be

some

other desirable items.

Special

STATES

UNITED

AND

LOAN

LEAGUE 5£nd Annual Meeting at
Chicago,; Nov.
13-15, starts on
page 2259.
-

Securities

OHIO
page

;

section
SAVINGS

Section

2252.

Unlisted

Offerings Wanted

Pressurelube, Inc.

Public

Giant Port. Cement Arrears

American Cyanamid

Utility, Industrial

Co.

Real Estate

Douglas Shoe Pfd.
Ill Power Div, Arrears

Empire Sheet & Tin Plate

Preference Stock

Lumber & Timber
Stocks & Bonds

Bought

—

Sold

—

'48

Empire Sheet Common

Quoted

Bought—-Sold—Quoted

W. T. BONN & CO. REMER, MITCHELL & REITZEL
'

,•

120

Broadway
Telephone

New Ydrk 5

GOrtlandt 7-0744

Bell Teletype

NY.1,-8§6

Inc..

■

208 So, La Salle, Chicago
Telephone RANdolph 3736
Bell

Teletype—CG 089

BRISTOL & WILLETT
ESTABLISHED

•

Members of New

115

York Security

1920

Dealers Assdciation

BROADWAY, NEW YORK 6, N. Y.

Tel, BArclay 7-0700

Bell System Teletype NY 1-1493

Hi!!, Thompson & Co., Inc.
Market^ and Situations

120
Tel.

for Dealers

Broadway, New York 6

REetor

^-2020

Tele. NY

1-2660

Full text of Commercial and Financial Chronicle : November 23, 1944, Vol. 160, No. 4336, Section 1

FRASER