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■BUS. ADM.
S 0
UBRARt
Final; Edition
Volume 162
ESTABLISHED OVER 100 YEARS
New
Number 4442
Dollar Loan
Mr. Einzig
Foresees Acceptance of
American Terms in Negotiations for
Dollar Loan to Britain, Though Not
Satisfactory to Leading Members
of Economicsr New
Professor
'
,
By PAUL EINZIG
Cabinet.,
Looks
for
York
'
University
Former Ambassador
Challenging the Uncertain Attitude of the New Dealers in Regard to Ihe
Future Outlook on Business as "Economic Agnosticism," Dr. Haney
Maintains That Economic Laws Will Prevail and Predicts After a Slight
Recession a Boom That Will Last Until the Present Inflated Conditions
Cease to Exist.
Says There Is
,
pects of the
Washington
loan negotia¬
a
v
'
■
,
time
v
■
,
■
of
be
based
on
If you
ish negotiators
already
given way in
Paul'Einzig
respect of
major principles, such as the ac¬
ceptance of Bretton Woods (rein¬
forced by an undertaking not to
devalue the pound, even to the
extent of 10% permitted under
Bretton
Woods, without the con¬
sent of the United States), the
weakening of Imperial Preference,;
(Continued
on page
2610)
to advise bus¬
inessmen
H. Haney
for
inflation
Why, I ask,
and
for
prepare
to
poth
.prepare
deflation!
at all, if you
don't know what to prepare for?
Being convicted of error, their
is to say that there is no
truth.
Whenc confronted
the- laws
by
Features
on
t
-
Buy
(Continued
'
on page
In his last annual message,
1919.
.
He
elaborate this statement; but
riot
arresting that I propose to use it as my
discussing our prospective response to
it is so;
in
text
did
Europe's present economic needs.
several
swayingdown
the
road
b
ro
speed
limits.
Belatedly see¬
ing the
jammed
I
*
A
paper
presented by Dr.- Warren at the annual meeting
(Continued
'
Let*$ Finish Ours
Buy
2603)
;
/
Victory Bonds >
CO.
Established
,
Members New York Stock Exchange
and other Exchanges
1
INVESTMENT
-
RAILROAD SERIES
Geneva
BOSTON
Teletype NY 1-210
Cleveland
Clark, Jr.
the
road, he
on his brakes and brought
*An address by Mr, Clark be¬
ference
Board, Hotel
Astoria, Nov. 20, 1945.
!
(Continued
on
Waldorf-
page.2586).;
,
i"
State and
of the Academy of
.
London
(Representative)
1927
1
'
*
,
for Banks, Brokers,
PHILADELPHIA
Troy
Albany
Buffalo
' Syracuse
Pittsburgh
Dallas
Wilkes Barre
Baltimore - "Springfield
Woonsocket
THE CHASE
FINANCE
SECONDARY
MARKETS
Hardy & Co.
Prospectus oh Request
LONG Unci COMPANY
HUGH W.
Members,New York Stock Exchange
Members New
incorporated
NATIONAL BANK
York Curb Exchange
OF
46
634 SO. SPRING ST.
WALL STREET
LOS
NEW YORK 5
Acme Aluminum
CORPORATE
BROKERS
Bond Department
-
SECURITIES
BOND
Brokerage
and Dealers
64 Wall Street, New York 5
25 Broad St., New York 4, N. Y.
Chicago
Bond
R. H. Johnson & Co.
Successors to
Hanover *-0G00
of
fore the National Industrial Con¬
-
on page
NEW YORK STOCKS, INC.
HlRSCH & CO.
,
forks
I. Reuben
Municipal
BONDS
*
all
ke
Twenty-six years ago .we confronted the problem of our part in
European economic reconstruction, and for some six or seven years
.
They Finished Their Job
IIIRSCH, LILIENTHAL
as
the driver
VICTORY
-
direc¬
A grriat
"
Political Science, New York City, Nov. 8, 1945.
2598)
the late President
that) in; facing the
should avoid the mistakes of
the hope
postwar world, we
one
of econom-
An address by Dr. Haney be¬
fore the 43rd Fall meeting of the
Steel Founders Society of Amer¬
ica. Atlantic City, N. J,, Nov. 19,
1945. :
'
•'
'
.
Dr., Robt..B. Warren
{Index of Regular
page 2616.
limousine,
painted^red
very red, came
Roosevelt;offered
recourse
who, fenotrs
tions.
by{Public Offi¬
cials.
Lipfs Four. Fundamental Errors of the 20'$
as:
(1) Exclusive Preoccupation With Finance;
(2) the Overloading of the Economic Machinery
With Uneconomic Residuals; (3) Political Timidity
or Fear of Doing the "Politically Impossible'' and
(4) Ignoring That Foreign Loans Can Be Paid
Only by Exports.
'\.
they proceed
Lewis
•
stopped to
resf, the high- >
way-forked in !
t#Be Created Others, Administered
there
may be defla¬
tion. Then
have
where he had
ofC©stiii| Private Financial Institutions There Are
wrong-
that
,
corner
Ihe/Bretton . Woods: Agreements, Is Thfft Instead
that you
are
Brit¬
the
Considered;as Essentially Financial Problems.
Contends That the Only Difference in Approaches
to Solution of Present Problems, as Represented by
predict
say
knowledge
that the
at
Dr. Warren Points Out That the Mistake of the 20's Was That All
inflation, they
the
down
alongside the
field, and just
WARREN*
Economic Problems Were
nobody knows.
ly.. This
as¬
sumption is
afield. One. of
the great state
high ways
Institute of Advanced Studies, Princeton, N. J.
of
their infla¬
tionary poli¬
cies, they say
con¬
By ROBERT
the
outcome
short¬
cluded
„
cam e
yob
predict
writ¬
that an
agreement
will
■"'
,—■!■
good money
When
ing
•»!
v V--.-
■■
where you travel on and on, and still
resting Ms mules in the corner of the
they say
nobody knows.
there is
general feel-
ing here at the
*■
v
,
■■■'■
■
.is,
ing,
a
Way out on the prairies,
the prairies, a farmer was
on
1
/'
them.: what3 i.>>.
.
.
Protective Council
;
The New Dealers and social planners in our midst are making a
last ditch stand. It is their claim that "nobody knows." When you tell
to be Conflict¬
,
to Mexico
Asserting "Our National Drivers" Are Pitching Forward at Breakneck
Speed for a Dream Utopia, Mr. Clark Cautions That Continued Heavy
Government Spending and Foreign Loans Will Make Us "a Busted Com*
munity." Attacks Non-Revenue Producing Schemes as Preventing a
Balanced Budget, and Asserts That This Government and Our People
Are in No Position to Undertake a World-Wide Policy of International
Financing. Says We Have No Obligation to Make Foriegn Loans and
Defends the U. S. Private Foreign Loans as Free From Corruption.
Es¬
timates Our Foreign Loans and Gifts Exceed $59 Billions, and That It
Would Be Wrong to Risk Taxpayers' Money in Further Wild Schemes
Ont Maladjustments That Must Be
tions continue
Countries
Chairman, Executive Committee of the Foreign Bondholders
I
—
„
Copy
By J. REUBEN CLARK, JR.*
Vast Inflation Potential and Points
Corrected as (1). Adjusting Goods
Strong Conservative Party Opposi¬ to Money Prices; (2) Adjusting One Price Group to Another; (3) Ad¬
tion, but Concludes British Parlia¬ justing Production to Consumption at High Levels^ (4) Adjusting
ment Will Ratify ..Terms by Over¬
Wages to Productivity; (5) Adjusting Interest Rates to Cost of Savings
and Investment; (6) Adjusting the National Debt to Nation's Income,
whelming Majority,
L ON DON, ENGLAND
Al¬ and (7) Adjusting Our Money System to a Sound Standard. Advocates
though reports about the pros- an
Organization to Fight Radicalism With Truth.
British
Price 60 Cents a
Public Loans to Foreign
By LEWIS H. HANEY*
1
In 2 Sections-Section
York, N. Y. Thursday, November 29,1945
What's Ahead for Business?
as
Seen from London
of
te< '
-x- A, i*,
.-■r ^Vr>*
jiSh/,iZZ>'f
Common
&
ANGELES
60c
DIgby 4-7800
,t
-
THE CITY OF NEW YORK
New York 4
Tele. NY 1-733
Alloys, Inc.
Conv.
Buy
Preferred
Aireon Manufacturing
•'
14
30 Broad St.
Tel.
Corp.
Conv; Preferred
Solar Aircraft Company
90c
Conv.
Preferred
,
Bonds
•
Raytheon Manufacturing Co.
$2.40 Conv. Preferred
Prospectus
BULL. HOLDEN & C9
Kobbe,Gearhart&Co.
-
•;
i;
members new york
'
■
"'
stock exchange
| 14 WALL ST.. NEW YORK 5.N.Y.
TELEPHONE-RECTOR 2-6300
Members N.
INCORPORATED
Y. Security Dealers Ass'n
45 Nassau Street
Tel. BBctor 2-3600
Philadelphia Telephone
New York 5
Teletype N. Y. 1-576
Enterprise-6016
on
request
<
HAKT SMITH & CO.
ira haupt & co.
•
Reynolds & Co.
Members New. York Stock
Members
New
Exchange '.
52
120 Broadway, New York 5, V. Y.
WILLIAM
Bell
Security
ST., N. Y, 5
Dealers
Assni
HAnover 2-0981
.
Bell
Teletype NY 1-395
NY
1-686
Broadway
New York 6
Exchanges
10 Post Office Sq.
1 Boston O
REctor
2-3100
Hancock 3750
Tele. NY 1-1920
REctor 2-8600
Teletype
Members of Principal
111
'
.
Telephone:
York
New York
Montreal
Toronto
Direct
Private
Wire (e Boston
Thursday, November 29, 1945j
FINANCIAL CHRONICLE
THE COMMERCIAL &
2570
;•
Trading Marketa ins
Holland's Position and Prospects
Paul, Old Pfd. & Com.
St.
& Com.
New Haven, Pfd. & Com.
Rock Island, Old Pfd.
Denver Rio, Old Pfd.
Frisco, Old Pfd.
'"v'-''r
Seaboard Airline
^
&
Pfd.
Old
1
KING & KING
Established. 1920
i'
Members;
.
V
'
■
■
York Security Dealers Ass n
Nat'l Ass'n of Securities Dealers, Inc.
New
40
Exchange PI., HVY.
5
HA 2-2772
TELETYPE OTT
BBSS
1-483
•
j
P. R. MtllORY
:
-
& CO., INC.
■
i
^
■
.
the German Depredation sin Holland, Dr. de Meester Describes Ex¬
That Is Now Taking Place, Holds That Despite Depressed
After Recounting
Com.
Bought
of the Rehabilitation
tent
i
By DR. E. D. DE MEESTER <
•;y 'V
Z' /
Secretary, Dutch National Committee, International
■' >■
Chamber of Commerce
., ■/]{ •['
Economist, Amsterdamsche Bank, Amsterdam, Holland
;.V
„
h
V
——•
Sold
Analysis
Request
on
Robbery arid Exploitation,
Spirit of People Resulting From Five Years of Tyranny,
Considerable Economic Progress Has Been Accomplished,
Quoted
—
'
but Stresses Need for For¬
Machinery Required to Restore Steiner, Rouse & Co!
Commerce With U. S. and Eng¬
St., New York 4, N. Y.
land, and Looks Upon Germany as Future Market for Dutch Produce. Says Holland
Orleans, La.-Birmingham, Ala.
Must Have Long Term Loans and Gives Four Reasons Why the Country Should Be
eign Assistance in the Form of Raw Materials and
Normal Conditions.
Points Out Need of Expanded
Membert New York Stock Exchange
25 Broad
HAnover 2-0700
NY 1-1557
New
is
There
Kingan&Co
countries of Western Europe, Hoi-
'
six years
suffered most from the war, On the
land has during the last
Common &
Preferred
Vice-President;
out¬
the
hopeless
fight for its
set,
Baltimore Stock Exchange
Broadway, N. Y. 5
Members
r
120
WOrth 2-4230
Teletype N. Y.
Bell
Construction Industry Executive
a
ssors,
had
who
pledged them¬
sol¬
selves
emnly
Buy
to
re¬
spect its neu¬
trality but had
VICTORY
for
Federal Housing
a r s
ye
secretly pre¬
pared for their
attack on this
BONDS
Dr. E. D. de
Street, New
31 Nassau
;
Curb Exchange
York
New
Members
damage resulting
hostilities, such as the
ruthless bombardment of the cen¬
estimated
compared with
the
Rotterdam, was
of
high, but as
Which the German oc¬
of
m
•
•*
♦.
&
Common
m
Central
.
.
5Vis,
&
:
Colortype
Bought—Sold—Quoted
but
C.
call upon
to
have
shall
of our energy, every
wisdom and sound judg-
bit
Telephone: WHitehall 3-1223
of
;
Members
Exchange
York Stock
New
*An address by
'
*
the New York
New York Curb Exchange,
120
Tel.
REctor
Paint/Varnish and
2-7815
City, Nov. 20, 1945.
We Maintain Active Markets in
New; Ybrk
Association,
Lacquer
United Artists
Theaters
Mr. Hart before
history
this
.'
'
**
U. S. FUNDS for
/
Vicana Sugar Company
Common ,;y;'/,/ •,'//,
■
■■1
v
There are other tangibles and in¬
tangibles which constitute a dire
threat to the fulfillment of our
New
BULOLO GOLD DREDGING
KERR ADDISON
mental controls.
We
STEEP ROCK (RON MINES
/
and
Members N. Y.
37 Wall
:
Bell
Canadian
Security Dealers Assn.
St., N. Y. 5
Teletypes—NY
Securities Dep't.
1-1126
&
Goodbody & Co.
Denver Rio
Pfd. & Common
Grande, Old Pfd.
BROADWAY
115
/
and Other Principal Exchanges
?
NEW YORK 6, N. Y. *
Teletype NY 1-672
Telephone BArclay 7-0100
from
we
Macfadden Pub. Inc.
Pfd.
&
Com.
in the industry ask
government
that,
is
with
wartime controls no longer neces¬
sary, we
be given public policies
which will encourage, not
;„
Textile Stocks
economy.
All that
1127
Southern
inquiries
all
on
Though acknowl¬
as
ocratic
Hanover 2-4850
Members N. Y, Stock Exchange
St. Paul, Old
NORANDA MINES
ST., NEW YORK
invite
govern¬
Vitally necessary, during
the emergency of war, they would
seriously stifle and throttle the
free play of competition, intiative
and progress in a peacetime, dem¬
edged
'
MINES
;
TEL HANOVER 2-9612
■■
Bought—Sold—Quoted
CO.
''1 Members
New York Stock Exchange
' /
York Coffee & Sugar Exchange
120 WALL
opportunities. We face the hazard,
both direct and implied, of con¬
expanding
&
FARH
Ahead
V.Yet, despite all this, we do not
clear sailing by any means,
?nd
■-
Quotations Upon Request
;
,
tinuing
6
YORK
Preferred
&
Common
facilities to produce the
necessary
materials and equip¬
ment are most encouraging facHazards
NEW
HAnover 2-9470
Eastern Sugar Associates
turing
'
ST. i-
t";
face
BROADWAY, NEW YORK
WALL
the
with
period. - The existing
new
construction, the
tors.
Teletype NY 1-1843
York Curb Exchange
Members New
64
Teletype NY 1-1140
supply of labor adequate for
the task and the vast manufac¬
industry;
we
Frank C. Masterson & Co.
industry as we enter
for
Preferred
&
Common
mate
Hart
every ounce
New York 5
Fred F. French Investing
knowledge that ample funds are
available for financing it, an ulti¬
for the
ing-
for
employment.
confronted
our
need
great promise
build¬
•
Standard Aircraft Prod.
and stabilized
and provide
maintaining pp-
are
post-war
Peace holds
434% Conv. Pfd.
.
of
*
Stock
Common
America. Private
greatest opportunity in the
the
,
means
We
e
peace.
Preferred
H. G. BRUNS & CO.
Bell
of
WHitehall 4-8120
System Teletype NY 1-1919 V
Central States Elec. (Va.)
.
prosperous
a
timum
a
win¬
the
to
ning
Utility
1953
20 Pine Street,
the
contribution
American
Preferred
Struthers-Wells
Common
;
i
make
now
Bell
construction market
pos¬
comoarab 1
Public
tain
made
victory
(Continued on page 2596 )
Campbell
A. S.
*
i a 1
r
e
sible. We must
Common
.
t
a
which
Members New York Curb Exchange
65 Broadway
command, if we are
our
Members New York Stock Exchange
„
present emergencies which have
so
seriously interfered with our
economic cycle.. That peace can
be securely won only if we sus¬
tonnsige >-of
Byrndun Corporation
j
we
vast
the
at
Industries|
Textron Warrants
Edward A. Purcell & Co.
,
We must take
advantage of the experience
have gained from past and
full
in
production
record
ing
_
,
j
ably proud o
outstand-l
i
win the peace.
to
its
the
cupation itself would subsequently
cause,
this damage now seems
rather insignificant. - ,
.
All American Aviation
Capital Stock
'
X
tre
Pressurelube
Greater N. Y.
the Construction Industry now
ment
justifi
the losses
Teletype NY 1-1548
Bell System
from
to be
7-4070
Telephone COrtlandt
,
York 5
feel
~
,
of the war,
enterprise ca-
>/;
that time,
At
Vanderhoef & Robinson
*
Hazards Ahead for New Con¬
as
challenge—the rebuilding of
serious
faces its most
Meester
Administration.
winning
the
With
peace-loving
nation.'
Central States Elec., Com.
and Public Policy That
Estimates Peak of New
Construction Will Not Be Reached Until 1949, When It Will Attain the
$15 Billion Mark, Although Industrial Building Will Reach a Billion
Dollar Peak in 1946 and 1947.
Expects Large Repairs and Remodel¬
ing Outlay but Sees No More Than 450,000 New Home Units in 1946,
and Rising to Over 1,000,000 by 1950.
Cautions Against Failing to
Hold the Line Against Inflation and Advocates Organization of Local
"Construction Industry Councils" as a Safeguard.
Praises Work of
German
g gr e
Sees
\
\
South Shore Oil
Haile Mines
£
.
struction, Continuation of War Time Controls
Will Hinder Rather Than Promote Building.
freedom,
the
country
was
overrun
by
the
1-1227
By L. c. HART
Johns-Manville Corporation ^
President, Producers' Council
/;•
.
1940, after a
gallant but
from
Loft Candy
I
*
May,
of
14th
branch offices
our
„ v
that, of all3>-
doubt
no
Direct wires to
United States.
Granted Liberal Credits From the
hinder,
C. E. de Willers & Co.
Members New York Security Dealers Assn.
120 Broadway, N. Y. 5, N.
REctor 2-7634
Y.
Teletype NY 1-2361
(Continued on page* 2600)
Frisco, Old Pfd. & Common
Missouri Pacific, Old Pfd. &
?■
New
New
i
Rock
'
Segal Lock & Hardware
Preferred
York, Ontario & Western
.
Old
Island, Old Pfd. & Com.
Pfd, &
Lear. 'Inc.
Finch'
Wellman
Engineering Co.*
Upon
Simons, Linburn & Co.
Members New
I
i
ST., N. I. 5 WHitehall
4.4970
BOUGHT—SOLD—QUOTED
Troster, Curries Summers
Teletype NY 1-609
HA 2-2400,
Teletype NY 1-376-377
'
York Stock Exchange
St., New York 4, N. Y.
HAnover 2-0600
BOUGHT—SOLD—QUOTED
J-G'White 6 Company
Members N. Y. Security Dealers Ass'n
74 Trinity
Place, N. Y. 6
INCORPORATED
37 WALL
.
25 Broad
Common
Common Stock
Trading Markets
"
jW
Firebox Co.
Request
Bought——Sold—-Quoted
G. A. Saxton & Co., Inc.
CORP.
HARDWARE
Common
*Circular
Old Pfd. & Com.
-
Telecommunications
Kingan & Company, Com.
Com.
Western Pacific
Locomotive
AMERICAN
,
Common
Seaboard Air Line
Old
\
Com.
Haven, Old Pfd. & Com.
Tele. NY i-210
Private
Wires
Detroit
-
to
Buffalo
Pittsburgh
-
-
Cleveland
St, Louis
ESTABLISHED 1890
Tel. HAnover 2-9300
X
•
s
.
«t
NEW YORK 5
STREET
t
t
Tele. NY 1-1815
T
,
(
MEMBERS NEW
One
TL-'.-t
1
Wall
YORK STOCK
EXCHANGS
Street^ New York 5,
Telephone BOwling
N. Y.
Green 9-4800
Volume 162
Number 4442
*
\
THE COMMERCIAL'& FINANCIAL CHRONICLE
2571
Our Stake in Britain's Economy
By
WILLIAM
BATT*
L.
By HERBERT
President skf Industries
U.
s.
Deputy
Mr.
Bratter Gives View
of OPA
m.
BRATTER
Production and
Resources
,
■\
It has been
-...
my rare
privilege to
Board
,
government from the
serve our
a time when the
mists^— current income,
first days of the organized defense program, as Mr. Stettinius' deputy
of
-•
.
—-
raw; ma-
'
_
■
inflationary
pressures as measured
<§>
■
to
those
all
an
first steps in
strengthening
our
produc¬
tion line, and
:
'
NASD
jN
e
1
K
r u g
through that
epic-making
the
to
i institution,
!
the
of
tion
P rime
the
y
;
I
W.
L.
Batt
"This
Great Britain,
i
We quote:
•
Minister of
American
the
was
Combined
•whose duty it was to see
materials
used
were
that the
of the United Nations
in the way best cal¬
Bowles
win the war. A little
later I was also to take over the
:
war
the
operations,
Com-
ibined Production and Resources
Board.! 1
I hope,
that I refer to these personal conwill
You
understand,
the
program."
^
the Armistice,
leading lull.
Dr.
The time to
idea that
advantages are to be gained frqm registration by
those engaged in the over-the-counter business, was before
of the recent NASD by-law amendments.
'
Those who are required to register were vitally affected
by the then projected registration, and we feel as we have
perience against which I speak. heretofore
urged, that their consent should have been ob¬
of the war
have brought me continuously in¬
fo intimate association with those
in Britain who have worked with
«us to
a common victory,
I have
The economic problems
a
deep admiration for
The
of the British character,
istrong Britain. When I say to you
with all the emphasis of which I
''
capable that the United States
lias a very large stake—and a very
selfish stake—in the welfare of the
British
,
economy,
you
this back¬
pamphlet emphasizes that registration is
a
Of
course
divisions.
these
(
>
It stresses that the
to abide
ness
of
each
'
questions
contains
'
;
The form of
with
of
registration is in the nature of
(Continued
-
t
on page
\r
V Let me first develop that point William
Chappell Rejoins
of view by quickly emphasizing a
few of the economic consequences Mellon Securities Corp.
2610)
an
applica-
Of the war.
X:".-
r/,
v'T; ?.jv.
quite clear that
the American people have emerged
from this war with a sharpened
sense of their relationship to the
•
rest of the world and specifically,
It seems to me
1 think,
iviction
with a widely held conthat
we
shall
have
Association,
York City, Nov. 17, 1945.
Foreign
bw
Policy
Punta Alegre
Sugar
on page
are
interested in
CERTIFICATES
Bond & Mtge. Guar. Co.
Antilla Sugar Est.
N. Y. Title & Mtge. Co.
Prudence Co.
believes.
Members
32
New
York
Security Dealers
Broadway
St., N.Y. 5
WHitehall 4-6330
Members
New
York
Security Dealers Assn.
40 Exch. PL, New York 5, N. Y.
^ . HAnover 2-478S''
Bell, System Teletype, NY 1-2480
i
<
Private Wires to Chicago & Los Angeles
that
month
Kingan Co.
is new,
and
as
Haloid Corp.
two,
or
up
clauses^"
TRADING MARKETS
been
up
V,
busi¬
Sargent & Co.
Bausch & Lomb
»
made
is
Billings & Spencer
re¬
including the wage
inventory hoarding at¬
U* S.
Sugar Com. & Pfd.
Est. 1926
Riao
Hi m O o
Members New
&
York Security Dealers Ass'n
Bell
Out of the wage-price
(Continued
on page
offerings of '
WOrth 2-0300
System
Teletype
NY 1-84
>
pplicy of
2594)
s
"
Alegre Sugar
Eastern
Sugar Assoc.
Lea Fabrics
National Gas &
Industrial
*
Electric]
Susquehanna Mills
PREFERRED STOCKS
Spencer Trask & Co..
25 Broad Street, New York
;
DUNNE & CO.
Members New York Security Dealers
Teletype NY 1-5
3-0272—Teletype NY
Private
Wire
1-95^
to Boston
$
Exchange
American Bantam Car
Public National Bank i
& Trust Co.
;
Assn.]
25 "Broad St., Now York U, N. Y.
WHitehall
*
Common and Preferred
Bought—Sold—Quoted
Circular
Asa'n
on
Analyses available
Request
to dealers
only
'
CHICAGO 4
.
HoiiRsse&Trsster,
Harrison 2075
Teletype CO 129
York—Chicago—St. Louis
Kansas City—Los Angeles
74
Trinity Place, New York 6, N. Y.
Telephone: BOwling Green 9-7400
C. E. Unterberg & Co.
Members N. Y.
Established 1914
Direct Wire Service
New
Bell Teletype NT 1-2033
request
J.F.Reilly&Co-
Board of Trade Bldg.
NEW YORK 4
Newburger, Loeb & Co
40 Wall
on
National Radiator Co.
Plgby 4-8640
I
*Circular
(2)
has
ties.
Public Utility and
STRAUSS BROS.
Teletype NY 1-832. 834
It Members New York Stock Exchange
detrola
BOUGHT—SOLD—QUOTED
and
Lawyers Mortgage Co.
Lawyers Title & Guar. Co.
Pfd.
&
170 Broadway
Members New York Stock
Cespedes Sugar
Vicana Sugar
Common
be¬
1945
High Grade
2590)
TITLE COMPANY
kingan & co.
Punta
We
1-1203
mis-,
a
easily
of
market
last
\
Y.
Teletype NY
„
american bantam
widely
by
purchasing
This is due to a variety
Telephone HAnover 2-4300
„
(Continued
]
the
eco-
*An address by Mr. Batt before
e
William
B.
Chappell has re¬
joined the staff of Mellon Secur¬
ities Corp., 2 Wall St., New York
City,
after
leaving the armed
forces. Mr. Chappell was formerly
in charge of the firm's trading de¬
partment in New York City.
New York 6, N.
HAnover 2-8970
after
can
sense
a
,
39 Broadway
almost
of
tendant upon repeal of the excess
J\
,
*
causes,
tion."..
V
Gilbert
estate
situation,
•"
ground of experience and convic¬
1929
escalator
ported
*
'
y
profits tax, and other uncertain¬
\
.
i
the
prices being bid
agents.
*\
*
out
came
up,... (3) Increasingly,
contracts are. being
ness
sub¬
by the Association's by-khys and rules of fair
practice.
and
ques¬
registrant must signify his willing¬
*
Members New York Security Dealers Assn.
V.
to
attitude
Dr.
real
with
simple
tions.
and
the
booming, in
only in the
.
and that the registrant need only answer three
weigh
can
"
*
1928
1946,
process
;am
(-that conclusion against
unconvincing.
V'-
stock
The
timing of the present effort at persuasion is bad,
and the effort itself
the qualities
and I am
vconvinced that this will be a bet¬
ter world for us in the United
States to live in if it includes a
of
CO!
J. GOLDWATER &
..
*internat'l
Advisor
come
tained in the first instance.■ ;/■
v-;j;;^■.....
The
d l
market, in the advice
being given by investment coun¬
sellors, in the nature of the stock
market trading, etc.
The attitude
facts only so that you may see the
^background of association and ex¬
'
e
This is evidenced in the action of
the
•
has
Gilbert, Eco¬
OPA, in a
statement
to
the
"Chronicle,",
pointed to three important devel¬
opments of recent weeks: (1) For
the first time since the war began
we see an inflationary
psychology
on theipart of the general
public.
have addressed these individuals and to have sold them the
the passage
that
half
.
following
Richard
nomic
''P
v
;
World War I inflation
Dealers, Inc.
Now then, we feel that all this is belated.
of the
side of another
American
joint
from
to
t
pointed
Richard V. Gilbert
'
culated
par-
Chester
and to set forth the advantages which the over-thecounter business and those engaged in it will derive
^;
is
Administrator
Its purposes are to dis¬
objectives and mechanics of their registration
the
cuss
Polaroid Corp.
.
OPA
Dye
Works
on
rep e a
tion of Securities
charged with the setting up of the
Raw Materials Board,
•
United Piece
in¬
t i cularly
anxious. Price
pamphlet is addressed to the employees, part¬
{
.
United Artists
in
gets a
the
country.
The
and officers of members of the National Associa-
ners
member
on
i sts
as
grip
*
-
j
NEW YORK
STREET,
flation
tation activities.
President and
J
.
*
Come, When NASD Becomes More Ravenous.
;
cash.
Telephone WHitehal! 4-6551
with
sent out its
direc¬
the
At
.
turn
you
cold
into
Obsolete Securities Dept.
WALL
99
watching
deep
are
just
"application for registration" together with an
accompanying pamphlet, which shed light upon its regimen¬
duction Board.
Bring 'em in I
if
coos
bonds
control
concern
The National Association of Securities Dealers has
Produc-
"War
,
obsolete
officials
price
and Officers of Members" Not a Form of
Vaunted "Self Regulation," but a Brazen Case of
Regi¬
mentation and Compulsion in Its Most Naked Form.
Forewarns of More Annoying and Intricate Exactments
and
s o n
Mr.
Employees,
Partners
then with Mr.
•
and
Registration for
change to soft
war,
e c o n o m
interested
"Application for
will
her
<
OF
MARY
AUNT
econo¬
Washingt
Knudsen
YELLS
THE
during
the
i
"i- terials, with
Mr.
by
were
demand, etc.—are less than they
—
AND COMPANY
Economist That
(1) Inflation Psy¬
Contending That We Must Have Allies on the Economic as Well as Poli¬ chology Has Just Begun to Take Public Hold; (2) That Real Estate
tical Front, Mr. Batt Stresses the Factors on Which Assistance to Great Market Has Begun an Inflationary Boom; and
(3) That Purchase
Britain Are Justified.
Recounts British War Sacrifices and Efforts at Contracts Are Now Being Made With "Escalator Clauses." Sees Busi¬
ness
Reform of British Industry.
Abandoning Support of OPA and States Price Controls Cannot
Holds Present British Policy Not Destruc¬
tive of Our Free Enterprise and Warns That Without Our Aid Extremists Continue to Stand Up, Though Profits Are Higher Than Pre-War Level.
Will Gain Upper Hand and British Empire Economic Isolation Would Holds Price Director Bowles Predicts Dropping of OPA in June Would
Follow.
Sees No Danger to Our Foreign Trade in Enlarged British Mean a Boom-and-Bust Spiral and Cause a Rent Situation That Would
jExports and Maintains That Helping Britain Regain Prosperity Is a Be "Political Dynamite."; Writer Contends That Burden of Resisting
Wage Increases Has Been Deliberately Placed on Management.
Sound Investment in a Business Partner.
:
I
Member, Combined
icHTfnsTtir
B. S.
-
V
Teletype: NY 1-375
61
Security Dealers Ass'n
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3565
Teletype NY 1-1666
°
Thursday, November 29,. 1945
1UE COMMERCIAL mFINANCIAL rCHRONIGIiE
2572
■r*\
I
.WO?"?
.
On Occupation
1926
In Letter to Senator
iteering. States
&
.
Amer. Window
M.
•**.-
I
••
&
Com.
Assistant
V."'.J-,;.
Glass*
Pid/ v
in
son,
;
Blair & Co.
and elsewhere.
not, however, cover the
t o
Senator
of
.
T h eodore
XXfX'SX F. Bowser XXX*
I
Cinecolor, Inc.
I
Dayton Malleable Iron*
I
Du Mont Lab. "A" i
;
Democrat
Rhode
though
denying
conditions
Douglas Shoe* *
I
Hoover Co.,
M
of
letter
released by
Kingan Co.
:
X;-X Mohawk Rubber
Moxie Co.
Natl. Vulcanized Fibref
P. R. Mallory
the
Pfd.
letter
the
to
in reply thereto as
Sen. Green follows^
War several
i
Sylvania Industrial
Taca
(Continued
2609)
Bowser Inc.
X
Sunray Oil Ptd.
-
Sold - Quoted
be attributed to the nature of war
as
itself, \ which is essentially
the
regardless of time, purpose,
or
instruments employed.. .Other
Railroad
Committee for
the rather consistent and continu¬
com¬
is
same
which
mittee,
known
tendencies
the
of
Study
the
Members N. Y. Stock Exchange
Broadway, New York
by the subcom¬
approved either
part.
However, suf¬
ficient material has been assem¬
is
mittee
-
a
x.#;'f '
the
has developed is that the
interesting historical fact
An
Dr.
by
address
*An
■;
.
the three wars, eco¬
In each of
United States
great advance, rising to
levels higher than in any previous
showed
a
Each of
period/ Prices increased.
the
wars
followed by a brief
was
period of economic hesitancy, or
readjustment, which was then suc¬
ceeded by a business upturn of
varying proportions and duration.
The beginning of the upturn was
based upon the satisfaction of a
deferred demand for commodities
that had not been available in sufficient
quantities
of property destroyed
placement
in the
course
of the conflict.
•
It lasted
tween the different wars.
War.of
from 1815 to 1819; about
five years after the Civil War, or
from 1868 to 1873; about seven
about four years after the
1812,
or
after the first World War,
1922 to 1929.
These ex-
years
from
or
(Continued
on page
2592)
FINANCIAL CHRONICLE
•
.
•
.
*National
*
Moore
-
Vulcanized Fibre
Drop
REctor 2-9570 to 9576
'
Herbert
William
& Tr.
Dana Seibert,
William D.
9
*
Seibert,
D.
Editor and Publisher
Forging
Commercial Nat. Bank
XX.
25 Park Place, New York 8
XX
Pfd.
Iron,
X:
William B. Dana Company
-X'X;
>: Publishers
' /.■; V;;
■;X ;
-
NEW ENGLAND
;
and
COMMERCIAL
The
1,1945.
Aircraft Prod.
&
/
economic expan¬
sion following the readjustment
period varied in length,; as be¬
Reg. U. S. Patent Of lice
Fuel
■
The period of
Parmelee
Atlantic City, Nov.
Standard
-
during the pe¬
riod of active warfare, and the re¬
Kingan & Company
Teletype NY 1-672
aid A.
JL
Tw Y V 1 JL 17
1" T Hi
;
to
char¬
human
<
nomic activity in. the
and Other Principal Exchanger
<
the
of
acter.,;; X-.
Postwar Con¬
before the National
ference j
.1' ;
President
>
Riggs, Business Manager
Prospectus on request
Thursday, November 29, 1945
New
J.K.Ricc,Jr.&Co.
England Local Securities
Established
^•X:'Xv
UTILITIES
'
""*
★'
★
;;X^'.'— XX: X.'XX Xy
★
Members
N.
REctor
Boll
WALTER J. CONNOLLY & CO.
American Gas & Pow.
INCORPORATED 1923
;
,
Mass. Pr. & Lt. $2 Pfd.
New Eng. Pub. Serv.
24 FEDERAL
Y.
1908
Published
Security Dealers Assn.
Y. 1-714
and
;
Monday
every
;
city news, etc,)
elewrings, state and
X
COM.
Be
PFD.
|
-StL,
135 S., La Salle
(Telephone;: State 06131;
1 Drapers' Gardens, London, E. C., Eng¬
land, c/o Edwards & Smith- I
Offices:
Other
AMERICAN BANTAM CAR;
Bell System Teletype BS-128
Telephone Hubbard 3790
I
"
(complete statistical issue—market quo¬
tation
records,
corporation,banking,
X' "" V/.V-'
.
week v;
a
Thursday
(general news and advertising issue)
2-4500—120 Broadway
System Teletype N.
twice
every
,
STREET, BOSTON 10, MASS.
Chicago -3,
.
111.
i
SUPERIOR TOOL & DIE CO.
North'n New Eng. Co.
Copyright 1945 by William B. Dana
Company
•
XX
; . • r.
KENDALL COMPANY
f Prospectus Upon Request
or
conclusions,
present briefly to¬
day. The conclusions are my own,
not those-of any other individual
or organization, and are subject to
further study and revision.
;
j
Colorado
United Piece Dye
Bulletin
rather gen¬
I shall
105 West Adams St., Chicago
Telephone BArclay 7-0100
Textron Warrants
*
o
con¬
■.
attributed
be
can
nature
ing
Parmelee
oxoxx;; .xx.■
_
,
Jersey Worsted
Iowa Southern Util.
H.
Julius
Transports- ;
f
,
Some of the tendencies may
wars.
;;-;x::kx; General ?War Trends
'
Goodbody & Co.
Aspinook Corp.
Consolidated Textile
i.
that
of economic tenden¬
following each of those three
and
Chairman
of
1918.
A number
served, and is
still serving,
study
Alabama Mills*
:
Warren Bros. B. &C.
5'/2S, '52
Bought
115
New
Magazine Repeating Razor
Consol. Gas & Elec. 6% Pfd.
TEXTILES
1914 to
bled, to warrant some
eral
and
tentative
;x£X£:Crowell-Collier Pub.
U. S. Truck Lines
Warren Bros. "C"
y
the War of 1812
were
cies made their appearance during
as
has been
article re-
on page
Those
features.
to
to
attention
wars
the
which
Central Public Utility
U. S. Air Conditioning
three
occupation
My
economic
Research
Asso¬
ciation,
has
marks have the
Russians issued, and how many
have been issued by each of the
Federal Water & Gas
Airways*
their
x,
of
If so, how many
called to a newspaper
War, showed
striking similarities in certain of
1814, the Civil War of 1861 to
1C-35, and the first World War of
of
cupation marks have found their
into the hands of American
soldiers in Germany?
abroad.
in which the;;,
participated/ prior
wars
States
dent in Charge
way
pened
major
to the second World
H
period. Mr. R.
Fletcher,
V i c e-P resi¬
Russian-printed oc¬
Richardson Co.
H. H. Robertson X£
postwar
V,
statements were
given out to the press by the War
Department
arid
the" Treasury
jointly. Those statements gave ba¬
Polaroid Com.
in the
placed on the volume of such oc¬
cupation marks to be printed. by
the Russians, and that large quan¬
x:
United
road i industry
„
tities of these
three
armies?
What hap¬ tion.o The committee has
those marks after the ducted its work largely through
American soldiers obtained them?
15> subcommittees,
each dealing
Oct.'"29, 1945. ; It would be interesting to know with a specific subject or field.;
what instructions have been; is¬
The Secretary of War
; '
X One of the subcommittees, the
sued by the Army to Army offi¬
War Department i
Subcommittee on Economic Study,
cers concerning the redemption or
Washington 25, D. C.
,
\has undertaken a number of stud¬
rejection of such marks by fi¬
My dear Mr. Secretary:
"k
*|
ies, including a general study of
nance officers, and who redeemed
As you know, there have been
past, present, and prospective eco¬
the money ultimately..
;■
a
number of stories in the press
nomic and transportation trends,
Also of interest would ; be an
about
the
occupation
currency
This general study is now nearaccount of the steps which the
used by our forces abroad. Some
It is still in pre¬
Army fhas4aken to prevent Amer¬ ing completion.
of
these
stories » strikev me
as
ican
soldiers and
officers from liminary form; and has not been
rather fantastic and irresponsible.
approved either by the subcom¬
cashing in on the profits derived
I understand that in the course of
from
the
sale ^of
merchandise mittee itself or by the general
tyn's
Keritef
&
Green's
Senator
Secretary of War and of Mr. Mar-
Kaiser-Frazert
Com,
Bratter's
:X,
profiteering by American occupa¬
tion troops in Germany.
The text
J.;
Lamson & Sessions*
r.
,v;x
Sen- Theo. F. Green
.•£•'
article, states that the War De¬
partment is continuously taking
measures
to
prevent
exchange
Howell Electric
71
in
V
that will con¬
■
as
forth
set
Gt. Amer. Industries*
Hearst Pub., Pfd.
|
and
not
■ tne
,
the Association of American Railroads organized
50 railroad officials to consider some of
<3>—
—5
front the rail¬
For
;
Russian
questions
the
"currency.
-
.
committee of more than
a
m,y
Relativle
Th^t in the Competitive Race, Rails Will Hold Their
Field.
^ v
;
:
Three years ago
adminis¬
in the stories that we
the
explains
Place in the Freight
example, is tljereany truth
supplied the
Government
with;: the
plates to print occupation marks,
that
there were no .restrictions
f
Island,
situation
«
i
o
Maintains
in this connection.
Francis Green,
Below 1929 Level, and Net Earnings Will Decline
or
Sees Greatest Postwar Traffic Growth in Air Lines, but
invasion
friends have been
asking me abopt this, and I would
appreciate it if you could tell me
just what the Army's, practices are
inquiry
an
"of
Some
reply
a
by 1950 Rail Operating Revenues Will Be Less Than $6
Annually,
Even More.
Army in
trative practices of the
connection
with " such
Secretary
o f
War
Patter¬
to
I!
n
Pfd.
Europe
tyn, Executive
America!) Bantam Car
Estimates That
Billions
occupation currency used
and
John W. Mar-
Railroads
American
Using Data of Research Commission of Association
of American Railroads, Contends That Postwar Railroad Ton-Miles Will
Be Greater Than Prewar, but Looks for a Decline Below Wartime Peaks.
in
They do
sic information about the
patiori marks,
of
x
x
Railroad Analyst,
G. I. profiteering in
German occu
INDUSTRIALS
Association
Assistant
Speculation in Occupation
(p, 2207) recounting the
?:?>
By JULIUS H. PARMELEE*
;';x,'Jx Director, Bureau of Railway Economics,
Reviewed to Prevent Prof¬
Why Russian Soldiers Are Dumping Marks on G. I.'s. j
lines of the" article of Herbert M.- Bratter in the
Along the
"Chronicle" of Nov. 8
—
Com.
•<.? ■
Currency
Green, Secretary Patterson's Executive
Explains Conditions, Which Lead to G. I. <
Marks. Says Regulations Are Continuously
I
V-,"
"'4i
-"x
W\Kli & OK
f$t
'V
SPORT PRODUCTS INC.
X' WiiLLMAN ENGINEERING CO.
& ELECTRONICS
N.
3,
1879.
matter Feb¬
at New
1942, at the post office
Y., under the Act of
X
.■
"
v
X'.
■•r
March
■
X /
J.
Subscriptions
United
in
Possessions, $26.00 per year;
CORP.
,
EST. 1926
Descriptive Circulars
on
request
Members N. Y. Security Dealers Assn
'
120 BROADWAY,
REctor 2-8700
Direct Wfres
NY
|:}|g
Buff.
Incorporated
*
'PHONES
6024
Members
New
York Security
Dealers Association
Bos. 2100
i;
Other Publications
Seligman, Lubetkin & Co.
to Chicago and Pbila.
ENTERPRISE
Hartfd 6111
NEW YORK S
41
Broad Street, New York
4
HAnover 2-2100
Record—Mth.$25 yi.
Record—Mth.. .$25 yr.
Bank and Quotation
11 Broadway,
Monthly Earnings
New York 4
Telephone
NOTE—On account of
Teletype
WHitehall 3-4490
•
States and
in Dominion
of
Canada, $27.50 per year;
South and
Central
America, Spain,
Mexico, and
Cuba,
$29.50
per
year;
Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year. ( .
HYTRON RADIO
■
THE FOUNDATION COMPANY
25,
York,
KAISER-FRAZER CORP.
vX'.X:
FASHION PARK, INC., Common
Ward & Co.
Reentered as second-class
ruary
SHATTERPROOF GLASS
Circular upon request
NY 1-960
in the rate of
f
the
fluctuations
exchange, remittances
foreign subscription0
for
and advertisements
must be made iry New
York funps,
_
Volume
162
I HK
Number 4442
CU M M E KG IA l>
Mineral Resources and Venture
F r N A NCf A L
«
G H RON ICL JEf
Investment
By
Companylit 1945
BULLOCK*
HUGH
Stressing the Need of Professional Guidance
By ALLAN S. RICHARDSON*
-
<•-
-
Pointing Out the Vast Proportions and Potentialities of the Mining In¬
dustry and Its Importance to National Progress, Mr; Richardson Defends
the Honesty and Integrity of Its Promoters.) Holds Regulation of Mining
Issues and Requirements of Full Disclosure in Mining Promotions Have
Largely Corrected Abuses and That No Controversy Exists Between
the State Regulating Commissions.
Shys No Suspicion Should Be Levelled Against Canadian Mining Indus*
try Because of Actions of a Small Group of Toronto Dealers.^ :
~
Company Offer a Larger Measure
Principal,. With Opportunity for Apprecia¬
tion, Than Any Other Class of Security, and Holds This Is Due to Diver¬
sification, Good Supervision, Breadth of Market, and Regulation Under
Investment Company Act. Estimates Investment Trusts Hold
$2 Billions
Professional advice
almost everyone
'
;
this
:
\
in
ters
nishes
which
quar¬
as
plished.
needs
field.
be
such,
To
sents
be
other
an
in
or
this
paper
or
Allan S. Richardson
is
it
because
of
victim
to
this
have
many
'fact
fallen
or
might have been, based upon any
other industry with a similar ap¬
peal.)
' ;•
•.
):
■ ■:; - •-1 *'■
.
a prophet,
perhaps a combination of them
all.
To
distinctions
these
of
none
do I lay claim.
'
I
do
believe,
however,
that
lent
concerning the mining indus¬
try, someone who not only is fa¬
miliar to a modest extent with the
•
■:
Mining of Vast Proportions
:
In
the
first
of the
tion
place
must
dilemma
had
much
so
estimated
there
very
little
indeed
tional
Association
Securities
of
Commissioners, Chicago, 111. Nov.
17,
1945.
Or.
Speaking
Contest Dec. 11
>"How
fully "of; its
biased;
of
the
Co.
and
public
Marine
speaking
of
alumni
association
The
on page
are
if
be¬
the
2585)
Industries
WILLIAM
ST., N. Y. 5
Bell
HAnover
2-0980
Teletype NY 1-395
New York
Montreal
Toronto
*An address by Mr. Bullock be¬
the convention of the Na¬
fore
tional
.
They
Securities
of
Polaroid
ment Advisers and Distributors of
Investment
Company
Securities,
New York, Boston and Chicago.
invest-
about
Association
Commissioners, Chicago, 111., Nov.
17, 1945.
Mr, Bullock is Pres¬
ident of Calvin Bullock, Invest¬
even¬
:
(Continued
;
New York
St. Louis
Chicago
?
-
TO
on page
2591)
Billings &
*
-
*
ncer
COAST
Kansas City
-
Los Angeles
,
STRAUSS BROS.
32
Broadway
NEW
;
YORK
Board of Trade Bldg.
y
„
CHICAGO
4
v
White & Company
Co.
&
Harrison
Teletype
;
2075
CG
129
30
'
New York 5
Bell
BROAD
KANSAS CITY
;
•
NY
Teletypes:
1
Y.
1-JOI7-18
&
1-573
*
Pledger & Company, Inc.
.:/,'Y
YORK 4, N.
Telephone it HAnover 2-2600
Baum, Bernheimer Co.
v;:
STREET
;
■,'
■SI
Members N. Y. Security Dealers Ass'n
60 Wall Street
;
y
ST. LOUIS
S. Weinberg
Los
-
Direct
Wires to
Angeles and
New
f,
r
'
•
,
,
Orleans
LOS ANGELES-.
Telephone
Whitehall 3-7830
;
Teletype
NY
1-2763
Community Water Service 5 % s 1946
BOTTLERS, INC.
Eastern
American
—
Quoted
-
ESTABLISHED
1914
'
)
,
j
5 Vz s
1948
1951
Consols '
Cyanamid Preferred
Heat
&
Common
Power
Co.
FREDERIC H. HATCH t CO.
/
^
Incorporated
Specialists in Soft Drink Stocks
MEMBERS
63
N.
Y.
Wall Street, New York
Gude, Winmill & Co.
Members New York Stock Exchange
N.Y.
1 Wall St., New York 5,
\
Trinity Place, New York 6, N. Y.
Telephone: BOwling Green 9-7400
Pr.
Sugar Associates,
Petroleum
2
Hon.Rose Slkesim
Service 4s
Minnesota
Minneapolis & St. Louis Ry. Issues
Eastern
Sold
Service 6s 1954
Public
Securities Co. of N. Y. 4%
MISSION
—
)>
.
Missouri State Life
SEVEN-UP OF TEXAS
Bought
>
NEW
V
RED ROCK
qAllen & Company
4
"V Established 1922
DIgby 4-8640 -r t
Teletype NY 1-832-834
Hartman Tobacco
award
will
Members New York Security Dealers Ass'n
Crescent Public
74
'
-
chapter's
:
52
confined to those funds/ re¬
gardless of their technical classi-
It
money.
East Coast
# S
HART SMITH & CO.
are
have
-
Great American
•
an¬
cash-prizes to the winners.
Vv'
com¬
connection with closed-end funds
of
i
of Cda. 4%, 1959
Steep Rock Iron Mines 5%, '57
namely, of a closed-end
Incidentally,' all statistics
which may hereinafter be used in
) COAST
as
one
•
the
committee,
members.
case
General Tin
that the contest, which is
annual affair, is open to all
chapter
of:all, he may purchase
security of one of the two broad
Direct Private Wire Service
Midland
Chairman
3%, '56, '73
:
:
nounces
an
would be the
as
(Continued
Banking Services to
the Public be Improved?" is the
topic of a public speaking contest
to, be
held
by the New York
Chapter, American Institute : ,of
Banking,
on
Tuesday
evening,
Dec. 11th in the chapter's assem¬
bly hall at 233 Broadway. Leroy
Clark
Power Corp.
Resulting
purpose.
judgments of the industry
Can
Trust
Mont. Lt. Ht. & Pr.
^Montreal Tramway 5, '51, '55
recog¬
ing it to gold and silver fails woe¬
•'
■
an
6, 1944
nize that mining embraces a field
of such vast proportions and po¬
•
AIB Public
Intl. Hydro Elec.
London & Cdn. Inv., A1^ 1949
fund.
veritable army of
They will know
a
Gt. Brit. & Can. Inv. A1/^ *959
many
after World War I—will
investors.
conform
to
reasonable objec¬
investor may have:
•
''
;
1955
Brown Company 5, 1959
j
panies,
'
tually buy other securities,
comprise
available
classifications of investment
85,000,000
Many
of
these have never bought a secur¬
ity before. - Many of these—just
as
Tei- SVi,
Foreign Pow. Securities 6, 1949
any
.{ First
a
b y
- •
|almost
tive
are
Bond^ holders.
tentialities that any concept limit¬
*An address by Mr. Richardson
before the Convention of the Na¬
to
or
in
so
War
new
considera¬
a
funds
America
.
people
is
will
should attempt to correct
improper impressions preva¬
someone
the
which
swindles
such
as
case
-
history
-
of.;
type
investmentfund. ,u In
there is a broad choice of
Never
Hugh Bullock
professional guidance is
purchase,, securities of a well-
to
in-
•
law-
fore
any
should
1945,
advice.
repre¬
interest in a-mine
Aldred lhv. 4%, J967
| Assoc. Tell &
•
convenient way Tor investors
| A
) profess i o n a 1
pa¬
they
to secure
medicine, one
should)be
relentlessJ
our
•.t-'F"
Abkibi lV & P. 5, 1953
:
guidance.
of
the
-
themselves,
Canada, Internal Bonds
Provincial Internal Bonds
•
managed
guided
against
enterprise,
our
course is the same. However, min¬
ing has romance and glamour and
geologist
engi-
a
or
an
is
of worthless
wage
we
Whether
war.
I
It
defense.
purveyors
that
per
would have to
n e er,
in
to
in:!; the
vestments,
of
1 industry
an
as
aster
have professional
medicine.
field
capital
funds) with
production is accom¬
Mining
no
those
a
specialist in
the
the
this
!
or
,^And
the mutual
to
am
looked
upon
-
benefit of the producer of mineral
wealth and the investor who fur¬
I
some
exist
do
as
ily
nec essar
because
,
not
but
state
views,
mining
a
lives
as surely
those per-
-taining to law
of the miner but also
one
who
by' limited experience
at least with the problems of se¬
curity regulation, can attempt to
bring
together
such .divergent
haps this is
"because I come
from
people's
ments. »To prevent financial dis¬
just
f
<♦>-
again on the
subject of
mining., Per-
-
cross^-
mill ions of
as
problems
some
lems
"
legal or medical problems is needed by
stage of his career.- Investment prob-
on
during
*
Mining Securities Committee of the National
Commissioners, it has fallen to, my lot to
convention
Dom. of
of Assets and in 1944 Purchased and Sold
$700 Millions of Securities.
Association of Securities
address
Investors, Mr. Bullock
of Protection of Income and
Honest Small Mining Companies and
As Chairmanof the
,
to
Maintains the Well Managed Investment Fund Serves This
Purpose. Says
Shares of Well Managed Investment
-
Secretary, Association of Securities Administrators
2573
SECURITY. DEALERS
ASSOCIATION
DIgby 4-7060
Teletype NY 1-955
'
Bell Teletype NY 1-897
5, N. Y.
Teletype: NY 1-375
Albert Frank-Guenther
Carbon Monoxide
Farrell-Birmingham
Law, Inc.
Preferred
Eliminator
"the dow theory barometer"
Company
American Insulator
Preferred
&
A
Common
Gilbert & Bennett
W. J. Banigan & Co.
.j
;.
service: predicting
by
,
I
an
H.
JONES
Established
Broadway, N. Y. 4
&
All
Send $1 for Four Weeks' Trial
George R* Gooley & Co*
;■
CO.
.
.
1004
HAnover 2-8380
PETER BARKEN
.
32
Broadway, New York 4, N. Y.
Tel. WHitehall 4-6430
Tele. NY 1-2500
Issues
Milligan & Higgins
expert on Dow's theory.
Successors, to
CHAS.
50
& Gloversville RR.
weekly
future trends in the stock market
ANALYSIS ON REQUEST
;
Fonda, Johnstown
,
.
INC.;
Established
gaylord
204-C INLAND BUILDING
wood
INDIANAPOLIS
52 William
St., New
WHitehall 4-3990
4
v.
j;
1924
York 5, N. Y.,
Teletype NY 1-2419
THE COMMERCIAL & FINANCIAL
2574
C. E. Weinig
Opens
E.
Y. —Carl
N.
BUFFALO,
Weinig is engaging in the invest¬
ment business from offices at 291
individ¬
ual
dealer.
He
was
formerly
President of C. E. Weinig, White
Avenue
Delaware
as
an
Grabenstaiter to Join
Marquette de Bary With
Hoit, Rose & Troster
Harris, Hall & Co., Inc.
Hoit, Rose & Troster, 74 Trinity
Place, New York City, announces
that
Inc.
& Co.,
L. G. Grabenstatter,
Eugene
formerly with Trubee, Collins
BALTIMORE
&
Marquette de Bary is now asso¬
ciated with Harris, Hall & Co., 14
Wall St., New York City, in the
municipal
department.
Mr. de
Bary left the investment business
Co., will be admitted as a general
in
partner in the firm as of Dec.
forces
1,
1945. The company also announces
Bayway Terminal
direct private
the installation of
a
wire
Davis Coal & Coke
Collins
to
Trubee,
Co.,
&
Buffalo.
Emerson Drug
Common
■»
New England
Retail New
York &
New
Markets
•
•
.
Baltimore Stock
ant.
,
DETROIT,
F. L. PUTNAM & CO., INC.
Tel.
JOHNSON
,
Boston 10, Mass.
LIBerty 2340
Providence
Portland
Owns
DES MOINES
70% of
&
Prior thereto he
Iowa Power &
*.
> -'.v.
v
of last year.
18
Nov.
plan,
due
Capitol 4330
BUILDING
MOINES 9, IOWA
Stock
Bell Tele. DM 184
f
BOENNING & CO.
1606 Walnut
while
SEC
to
a
Dealer
-Electromaster, Inc.
Sheller
Leece-Neville
7%
13%-13%
N. Eng. Gas &
El. $5.50 Pfd.
73
-74%
Mass. Pr. & Lt. $2 Pfd.
24%-25
Reed Prentice
23
Rockland Lt.
& Pr.
i
Incorporated
.
Investment
Federal
49
Reports
HUB.
0810
Easton
& Dolphyn
Buhl
,
Pittsburgh Railways Co.
r
Wawaset
$4
Bid?., Detroit 26
Tele. DE 507
no
par
H. M.
Stock Exchange Bldg.
preferred is¬
only be
about
$6.63
a
But it seems unlikely that
present value of arrears. Includ¬
next year's substantial tax
savings, Standard Gas might in
future earn in the negihborhood
ing
Phila. 2
Tele. PH 73
Phone Rittenhouse 3717
prior
prior preference could claim
amount, for the SEC has
in some other cases used the "dis¬
count" method of evaluating the
OFFICE
of $22 a
000,000.
preferred stocks and their
The
are
rears
as
follows::
Dividend Arreases
v
-
to 12-31-1945
$30,813,000
7,170,000
38,800,000
-
V-
Total
$67,647,800
17,170,000
76,672,100
share on the prior pref¬
erence
war
(less rate cuts
losses), - Assuming
stock
load
maximum estimate, arrears*
paid off at the rate of
be
CRAND RAPIDS
but allowing for earn-'
irregularities,
ten
years a
seem
to
be a
practical:
minimum.
On this basis the val- f
ue of the arrears on the $7
prior
ings
would
preference would be reduced from
$84 to about $62 and the total cash
required to settle arrears on both
(Continued on page 2593) ^
\
ST. LOUIS
Light
Common
Tyler Fixture Corp.
Preferred
/
Boston Edison
\
Boston & Maine Prior Pfd.
New
—
Common
Federal Water & Gas
Public Service of Indiana
Inquiries Invited
England Lime Common
"
INVESTMENT
Dayton Haigney & Company
j 75 Federal Street, Boston 10
! Private New York
Telephone
i
HEctor 2-5035
Members
Detroit
GRAND
RAPIDS
Phone 94336
2
Capacity—900,000 barrels annually.
Book value—around $18.
Good
earnings
all
through
12%
Circular available
t
lerner
10
POST
8c co.
OFFICE
BOSTON
Tel. HUB 1990
9,
SQUARE
MASS.
Teletype BS 69
Pump Company
St. Louis Stock
ESTABLISHED
Exchange
1879
utica. n. y.
Utica & Mohawk
Hydraulic Press Manufacturing Co.
Cotton Mills
Midland Utilities common
Bird & Son, Inc.
"Makers of
war
period.
Company would benefit substantial¬
ly from tax reduction.
Oregon's " huge
highway
program
ready to start.
about
QUOTED
Teletype GR 184
Midland Utilities
Reda
•
Market
—
Hallicrafters Co. common
•
•
Members
We Suggest
Common Class "A"
•
SOLD
St. Louis 1,Mo.
MICH. TRUST BLDG.
Oregon Portland Cement Co.
•
—
Stock Exchange
PHILADELPHIA
•
BOUGHT
STREET
;
WHITE, NOBLE & CO.
v
V'
Common
SECURITIES
509 OLIVE
Submarine Signal
j
Common
Stix & Co.
Memos
on
Request
Utica &
Robbins & Myers common
'■
Mohawk Percale Sheets"
'
i.
,
BUCKLEY BROTHERS
Members New York, Philadelphia and
Los
1529
Angeles. Stock
Walnut
New York
Exchanges
Street, Philadelphia 2
INQUIRIES
Private Wire System between
■
Polaroid Corporation common
MOHAWK VALLEY
Los Angeles
Philadelphia,. New York and Los Angeles
•
■
INVESTING COMPANY
INC.
Pittsburgh, Pa.
Hagerstown, Md.
N. Y. Telephone—WHitehall 3-7253
INVITED
238 Genesee
Tel. 4-3195-6
Gilbert J. Postley &
29 BROADWAY, NEW
St., Utica 2, N. Y.
Tele. UT 16
Direct
Wire
perhaps
arrears;
Delaware Power &
TRADING MARKETS
and.
the1
could»
$10 per annum (leaving $5 for:
surplus) on which basis it would;
take over eight years to pay off:
Allentown
Portland
ar-:
„
$90,000,000
$5,000,000 left over for the
or
around 15,.
holdings a
paper value of about $75,000,000;*
adding the $15,000,000 cash re¬
ferred to above, would make $90,- :,
ly selling on the Curb
which gives Standard's
the two prior preference issues are entitled to
second preference in the amount of $50 (together
j
* 1
'"<•
used to pay the prior
the
■
value;
the full
Byllesby & Company
PHILADELPHIA
of
the
after
paying off the boads—presumably,
the $15,000,000 referred to above. ,
Philadelphia Company is current-;;
$36,834,800
10,000,000
37,872,100
the
CAnal 6-3607
Harrisburg
if
preferred
share]
Securities
of
would be some cash left over
Liquidation Value
in full, there would
about
John Irving Shoe common
Detroit Stock Exchange
Cadillac 5752
Teletype BS 189
Tel.
request
furnished on
old,
dispose
subsidiaries
v:
*
have
the issues
to be
claim
Warner Co. common
Members
Washington
Power;
:r>-
preferred
sues
Empire Steel Corp. com.
Mercier, McDowell
Securities
St., Boston 10, Mass.
New York
Philadelphia
prior
were
common
Botany Worsted Mills pfd. & A
Manufacturing Corp.
Vf.HBELL&Co
<
States
preference^..
preference.
prior
Obviously
-24%
9%-10%
in California Oregon
Inquiries Invited
Philadelphia Co.
-
com¬
modified plan.
Mountain
$6
'All
Will Trade
7%
with the
join
company
$7
N. Y. C.
to
7-1202
plan as
i Standard
Gas
practically all
except
Philadelphia
the proposed new
the
under
Company, its most valuable asset;
but under the new program there
$100 in liquidation, the preferred has
with dividend arrears in each case).
6%- 6%
Tel.
Phone
COrtlandt
35%-37
*. Under
by the action of the management
which recently indicated that it
$4
Clyde Porcelain
the
would watch the situation and ask
*■'
PH 30
Pennypacker 8200
The
reduced slightly).
would then arise as to
how this "gravy" would be disT
tributed to the prior preference
and preferred shares (it is gen¬
erally assumed that the common
would again be omitted from con¬
sideration in any new plan).
: " i
would
DETROIT
Baltimore Transit Com.
in
(which in the present case had the
standing of an equity stock, the
common being wiped out).
These
rumors were eventually confirmed
St., Philadelphia 3
MASS.
Baltimore Transit Pfd.
was
be
question
tempt might be made to modify it
in favor of the second preferred
Power,
Teletype BS 424
We
plan
the
>
Private
;
would
now proposes to
million bonds in
money by sale of
Pacific Gas and
together with a
$25 million bank loan (to be re¬
paid with proceeds of sale of
1
Pont, Homsey Co.
BOSTON 9,
However,
off the $59
cash, raising the
its holdings of
Oklahoma Gas,
;
Common
Shawmut Bank Building
change.
from 100 to
pay
ler
EQUITABLE
s
,
prices,
ranging,
104, the latter amount;
call
respective
hands of the two courts, some at¬
The
Light & Rys.
Phone 4-7159
was
persistent rumors that,
to the advance in utility val¬
investments
du
It
there were
consider
'
•
Common
DES
$15,000,000 more than they would
be entitled to if paid off at par (if*,
the six issues were retired at their
Court
that the
plan would be consummated with¬
further
the ;
of $1,250 or about'
the equivalent
generally assumed
out
i
*:
that under
present plan bondholders will get
.
Circuit
the
but
estimated
is
It
Court disapproved
The District
sin Public Service).
con
in seeking a court delay, in
order that the Commission might
Southern Advance
Light Co.
Rath Packing Co.
r
4 y2
Southern,
SEC, and this was finally" ap¬
proved with a slight change on
the
Preferreds
Request
about
Penob¬
with Ryan,
was
patents
on
Co.,
&
pany
fabricated
United
Priced
McDonald-Moore
INCORPORATED
Preferreds
Memorandum
Chronicle)
WHEELOCK & CUMMINS
construction
Protected by
Financial
Sutherland & Co. V
LATISTEEL, Inc.
i
The
Building. Mr. Bolton has re¬
cently been with the U, S. Navy.
STOCK
.Manufacturers of
to
scot
" -,'v A -Low Priced
BUILDING
(Special
DETROIT, MICH.—Frederick J.
Bolton has become affiliated with
Springfield
AUTOMATICS INC.
|
1
equities, such as Common¬
Standard Gas $4 preferred, Northern States
Power A, Central & South West, L. I. Lighting, etc. The largest ad-;
vance has been in Standard Gas preferred.
The company originally,
filed an integration plan with the SEC seven years ago but it was
not until August, 1944 that a plan<£
—
—
——
• ■
was
finally evolved to suit the Louisville G. & E. (Ky.) and WiS^
wealth
ues
With McDonald Moore Co.
great deal of market interest
a
activity in junior holding company
and
then
MICH. —Ervin
has been
In recent weeks there
reversed the lower Court.
Chronicle)
"
BOSTON
77 Franklin Street,
Financial
...
Inactive Securities
;
The
F.
La Howe has rejoined the First of
Michigan
Corporation,
Buhl
Building.
Industrials—Utilities
New York Telephone Rector 2-3327
in Novem¬
overseas
1942
(Special to
Bell Teletype BA 393
I
inactive
on
of first lieuten¬
Rejoins First Mich. Corp.
\
Bank and Insurance Stocks
now
with rank
taking part in the Afri¬
can invasion at Casa
Blanca, from
there going with the 62nd Fighter
Wing of the 12th Air Forge to
Tunisia, Sicily and Italy.
' ' 1
Mr. de Bary has specialized in
tax-exempt securities since 1935.
Secondary Distributions
ST., BALTIMORE 2
is
He went
ber
,
6 S. CALVERT
and
What Is Standard Gas $4 Preferred Worth?
;
;
the
Exchanges and other leading exchanges
t
January 1942 to join the armed
status
England Coverage
STEIN BROS. & BOYCE
Members
Thursday, November 29, 194?
CHRONICLE
to
YORK 6, N. Y.
Chicago
Co.
; .Volume 162
•
ETHE .COMMERCIAL & FINANCIAL CHRONICLE
Number 4442
National
Broker-Dealer
And Fiscal
Personnel Items
1
;
(Special
.
*
to
The
ATLANTA,
GA.
G.
—
Leonard
Allen has become associated with
,
Johnson, Lane, Space & Co., Citi&
Southern Bank Building.
Mr. Allen in the past was with
Allen & Co. of Atlanta. y
zens
.
v
(Special
\
to
The
Financial
Chronicle)
BOSTON, MASS..—Gordon M.
Copp of Worcester and Frank J.
Laughlin
are
connected with
now
W. H. Bell & Co., Incl, 49 Federal
Street.
Mr.
Laughlin
has
re¬
cently been serving in the U.
Vinson Holds
The
Financial
Chronicle) '
Can Meet Burden of the National Debt:
yy
'
turn,
,
Broad
speedy
a
'
St.
Kidder &
(Special
.
f,
•
to
The
Financial
such
still
expan¬
s o
CHARLOTTE,,, Nj C.—William
St. George has been added to
the staff of Louis G. Rogers &
Co.,
Building.
the
Loan,
(Special
,
to
The
Financial
Chronicle)
CHARLOTTE, N. C.
V
E.
Berman
are
with
and
R.
S.
pany, Wilder
i'
Cecil
■not
.
on
period,
also
that
peaces-
:' ■-.Nv.y%-vy;yK';: portance ,y o f
Loan, therefore, can¬
appreciated, without under¬
standing its proper place in the
the Victory
"\V
LEAR, INC.
-
not be
whole
of
our
LOFT CANDY
country's
In
short
a
to
time
great pleasyou
because
gentle¬
men
have
ure,
ago, it is
that the
realize
our way
of life.
the field of battle,
We
We have
vital
done
have
this
at
and„ economic
be
to
easy
victory
a
to
to
return
the
to
old
ways.
son
of
Commerce
Indiana
Committee,
Ind., Nov. 27, 1945.
nance
(Continued
economy.
War
Fi¬
Indianapolis,
'
on
:
page
2607)
Com.
&
Pfd.
.We
:
^AUTOMATIC
r
,•:
been
have
and
peo¬
and re¬
sourcefulness.
But too many
of
Mr.
^WELLMAN
as
general partner in
of December
We
BOUGHT—-SOLD—-QUOTED
^Circular
are
also
:
on
-
pleased to announce the installation of
• direct private wire to
' \v. y
a
v.,;:y -ly'I .,% r :
•y
74
HAnover 2-4785
,
Bell
Private
System
Wires
to
Teletype,
Chicago
1-2480
NY
Los
&
'
Members New
ESTABLISHED 1914r ; >
'■ )■ .:..j ■
Security Dealers Association
,■
-
/■. ' 0
New York 6, N. Y.
;
First National Bank Building, Atlanta 3, Ga.
Securities
*
•
moderately during
the
as
third
a
FRANKLIN
United Drill & Tool
ON
COMMON
<"B")
CIRCULAR
ON
:
-
(Continued
SIEGEL & CO.
3D
Broadway, N.Y. <i
lOVt-NK
for
SHMtBl
v ■
v.:..y
'K:~.
Teletype
h. koller & co., Inc.
Members N. Y. Security Dealers Ass'n
111
DIgby 4-2370
NY 1-1942
>
mately 8.9% of total assets of
$1,283 million. Three months pre¬
viously, cash or its equivalent
Third
quarter
NY 1-1026
7%
believe cement companies will
operate at capacity for several years.
WE
Associated Tel. & Tel.
7%
Preferred
Associated Tel. & Tel.
Consolidated Cement
.
1
Securities
67 Wall
Street, New York
capitalized
whose
Telephone
HAnover
2-9335
Teletype NY 1-2630
portfolios
recorded
other
base
should benefit from
an
metals
increase
at
in
in the available
labor supply
a gradual rise in base metal
priCCS"
were
least
all
issues: United
pub¬
one
but
one
analyzed,
sale
of
was
these
Light & Railways,
(Continued
we
C.
a
Hedge Against Inflation
on
page
suggest several dividend-
paying stocks of such
panies which
Circulars
2612)
1
POST
1990
Securities
OFFICE
BOSTON
Tel. HUB
com¬
Jeff. Lake Sulphur Com. &
Preferred
selling
now
Jonas &
Standard
United
MICHAEL HEANEY, Mgr.
WALTER
KANE, Asst. Mgr.
Write
for our
on
:
Naumburg
Fruit Com.
&
Piece
Com.
Dye
Pfd.
1
United Stove Com.
descriptive
these
Com.
Corp.
issues.
Available
LERNER & CO.
Inactive
are
G. Conn,
Harvill
$2.50 per Share
Spokane Portland Cement
10
scattered
bought on balance by
least three of the 30 companies
for less than
J
Riverside Cement
Preferred
JAMES M. TOOLAN & CO.
!
•
third
were
although
and
memorandum
6%
widely
,
among many industries. Six
lic utility preferred and
at
Conservatively
As
Curb and Unlisted
SUGGEST
Oregon Portland Cement
A
were
the
<
Preferred
Class
„
■
during
common
We
Telephone Bond & Share
1
Quarter Purchases
,
silver
<
8.2% of $1,214 million
or
assets.
Purchases
and
Telephone Bond & Share
1
2594)
amounted to $114 million on Sep¬
30 this year, or approxi¬
companies producing zinc, lead,
BROADWAY, NEW YORK 6, N. Y.
BArclay 7-0570
on page
tember
stocks
If.
oiir
j
tacreosedl^
COAL
REQUEST
must
^of goods and services be"
expanded in order to have avail-:
total
REQUEST
COUNTY
output
expand¬
Iquestioh,
therefore, 1st How much
million,
A low priced speculation
PROSPECTUS
The
held by the same funds totaled $99
Manufacturer of Electric Refrigeration Equipment
Common
production
issued November 7 by the Nation- €>-
K0LD-H0LD MANUFACTURING COMPANY
•
be expanded only by
can
positions
quarter of 1945, according to a study
al Association of Investment Com¬
ACTIVE MARKETS:
yy'
services which people
buy. Jobs cannot be cre¬
merely by adding names to
payrolls. Productive employment
ated
group increased their cash
holdings of the 30
largest broadly diversified funds
■
and
Largest Volume.
Investment companies
panies. Total cash and U. S. Gov¬
Industries
Joseph McManus & Co.
Members New
Teletype BS 69
Curb
Exchange
Chicago Stock Exchange
SQUARE
9, MASS.
York
39
Broadway
Digby 4-3122
>
ate*8
Company Portfolios!
ernment bond
Great American
be-
They'
Co., SoconyVacuum, Electric Auto-Lite, Firestone Tire, General Motors, Greyhound
and U. S. Rubber, Predominate.
Most Widely Held Issues Not Changed
Materially. Tables Show Purchases and Sales of Individual Issues
York
Trinity Place
Angeles
sake.
want to
-
and Those Held in
:
40 Exch. PI., New York 5, N. Y.
symbol
that jobs
own
Third Quarter Cash Positions
Generally Improved. Purchases Widely
Scattered and Sales of
Industrials, Such as Deere &
Members
Security Dealers Assn.
Hoffman
Investment
J.F.Reilly&Co.
York
their
firm
our
TRUBEE, COLLINS & CO.—BUFFALO, N. Y.
New
of
.
-
Mr.
Conventipn of the Na¬
Association
this
not. They stem from and are a
by-product of the production of
goods
ing
by
Commissioners, Chicago, 111., Nov.
16, 1945.
v
/
'
yy-'J:
-
-.y
,
request
tional
;
1, 1945
ENGINEERING
■
before the
Eugene L. G. Grabenstatter
as a
too
opportunity for growth
address
in
implies
are
G.
a break. Our future strength
depends primarily upon our abil¬
ity to give to all our citizens
that
formerly with Trubee, Collins & Co.
will be admitted
Paul
good
An
it"
created for
citizens have not had
our
hazard
a
cause
ity,
a
•":>
SIGNAL
is
ingenu-
.
New York 6
Teletype NY 1-1610
Thornton
60 Wall
*■
national prosperity. 'It
or
be
well, I believe, to be
specific in defining what we mean
by national prosperity. The cur- ',
rent political phrase that is used
as
a synonym for
national pros¬
perity is "full employment." The^ev
here
our
discussion of problems incident
the achievement of material
would
self-reli¬
*
announce
to
welfare
promot¬
ed in
:
promote intellectual and spiritual
growth, and will restrict myself to
ple the growth
of
in¬
-
I shall leave to better men than
myself the discussion of how "to
achieve those conditions that best
the
condi¬
cause
tions
;
pleased to
are
to
-
America
maximum
.v'
V
a
ance,
address by Secretary Vin¬
before the State Chamber of
'•An
in
development—materially,
tellectually, and spiritually.
a
strong
country be¬
cost.
seize
•
U. S. SUGAR
and
a
has
is
great
It
a
role
play
'.■•i,;[ZvVy
dearly won as an opportunity
relax, to rest upon our laurels,
so
and
time economy.
The
full
imf-
Secretary Vinson
MOXIE CO.
but
in
later
a
The invitation to address this
postwar conference of the National
of Securities Commissioners was
accepted by me with
turned that challenge aside and
utterly defeated our enemies upori
would
1
In
ica.
human"
2611)
page
President's and
a
our
lenge to
reconversion
Building,
(Continued
Play'Important Role in Stabilizing and Main¬
taining Prosperity, but Must Learn When and How to Use the Tools It
building of a^
better
Amer-**
the immediate
Com¬
a
Expansion
a
question is not what can I do for
war effort, but what can I do
for y prosperity
and
peace;
In
winning the war, we met a chal¬
Michael
&
,
Holds Government Should
the
Rankin
—
C.
Dickson
/
more.-
helps
only
in
over,
rv
long
pull.
A successfulVictory
.y
•:
essential
for
M.
Johnston
economy
I
«
30% Above 1940 to Create 56 Million Jobs Ejs-<
Satisfactory Situation. Says This Must Be Accomplished
by Free Enterprise and a Program of Encouragement and Incentives of
Private Initiative.
The Responsibility, He
Asserts, Must Be Shared By
AH Participants in Our
Economy Who Are Essentially Interdependent*
sential for
won a long and a
truth, that war was
difficult
rated,
Chronicle) V
-
of Production at Least
just
war.
won
invigo¬
-
Association
We have
,hard
an
By PAUL G. HOFFMAN*
Assuming That the Task of Attaining and Maintaining
Prosperity 1$
Tough One, Mr. Hoffman Holds We Must Have an Overall
"
on
laying
■
,
:
Chairman, Committee for Economic Development
President of the Studebaker Corporation
I" Has for This Purpose. Advocates Creating Both
Congressional Committee on Full Employment.
^
for.
Co., 940
'":..V:r'v/ '
.
si
v
significant contribution to
of war to the ,ways of peace.
a
the foundation
aids, in
sive
v;i"
:
is
Success in the. Victory Loan
■
BRIDGEPORT,
CONN.-- Patrick L. Caldana has rejoined the
staff of A. M.
,,
Developments
of the War Must Be Applied in Peace.
Says Tax Structure Will Be
Further Modernized to Encourage Business Enterprise and Promote Mass
Production, but Cautions That Reserve of Purchasing Power Must Be
Held Back to Provide Jobs and Markets Tomorrow^ Rather Than Wast¬
ing Itself in Driving Up Prices Today. « Looks for Greatly Reduced
Government Expenditures, and Defends Low Interest Rates as Aiding
Government and as a Stimulating Force in Our Economy.
Says Nation
reconver
r
;•>
:
j
New Techniques and Scientific
That the
Nation's Conversion from the ways
to
j
.
<
Pointing Out That Success of the Victory Loan Is Essential to the Ac¬
complishment of a Peacetime Economy of High Production, Secretary
S^
yy Army.
(Special
I
'
<
•
Secretary of the Treasury
;
Chronicle) '
financial
ProsperityWhose Responsibility ?
Policy
By HON. FRED M. VINSON*
■
2573
i__
T. J. FEIBLEMAN & CO.
&
Co.
St., New York 5
HAnover 2-9340
Members New Orleans Stock Exchange
New York:
11
Broad St.
Bo. 9-4433
Bell Tel.—NY-1-493
New Orleans, La.:
Carondelet Bldg.
■
FINANCIAL CHRONICLE
THE COMMERCIAL &
2576
Thursday, November 29, 1945
-
Hopkins, Smith & Virgin
Rejoin Courts Staff
Economic Reconstructions Europe
BAYARD FOLSOM*
By MARION
Stales
Corporation which owns the 20-story office building located
East 41st Street, New York City.
The location, just off
Credits to Russia Should Be Based on
18-20
at
is ideal, and the building contains a net rentable area
of about 64,000 squdre feet.
A total of $949,300 bonds and 9,493 shares of stock were issued to
bondholders
'in / "reorganization.^
Fifth Avenue,
have been pur¬
chased and retired leaving $873,300 bonds presently outstanding.
Bondholders retain stock in event
bonds are purchased by the cor¬
poration
for
retirement.
The
bonds are junior in lien to an
institutional first mortgage in the
amount of $190,000 extended in
1944 to May 1, 1949, with a reduc¬
tion
in the interest rate
from
bonds
$76,000
consideration
warrant
in
levels
rent
bonds
the
at
as
discussing the European
Before
briefly to the work of the House
:
Economic Pol ■
icy and Plan¬
ning in the
field of for¬
the
to be considerably
as the yield is high
appear
underpriced
line
of
and
out
real
estate
with
C.
-
distributions
2% on May 1
2% Nov. 1. The rent roll has
interest
Initial
made this year,
were
and
$20,000 over the
about
increased
The current asset po¬
corporation at Dec.
1944 year.
of the
sition
was quite satisfactory.
current assets of $40,785.86
1944,
31,
Total
compared with
(mostly all cash)
$8,084.66, a
ratio of 5 to 1.
Prior to this year
there has been little trading in
this issue but present conditions
of
liabilities
current
from
parties,
issued in May
For Cash in Danish Banks
S.
Young,
of this
r
Federal Reserve Bank of Chicago,
called
has
attention
an¬
an
economic pol¬
that
who
person
any
with
balance held
cash
a
exceeded
the
on
States
United
the
from
Dan-
;
-
on
underlie
should
felt
a
on
received
this report and the recommen¬
dations
in
both
widely endorsed
were
editorials
•
our
Many
trade.
foreign
post-war
by
and
in
men
Government and business.
declaration must be in the
The
^
principles are in¬
possession;1 of the Danmarks Na¬ dicated in the following excerpts
tionalbank 7 of
Copenhagen
not
from this report:*
;
later than Dec.
31, 1945. If no
"Our foreign trade, though only
declaration is made, the account
will
REAL ESTATE
A
-;
\
.
•
-
•
',,
made
be
Primary Markets in:
to
declarations
165 Broadway,
4lA's '
all
pect
submit
separate declarations with
bank,
savings-bank,
tive
,\'.V
The
forms
for filing
tion may be
ish
SHASKAN & CO.
Bell
obtained from Dan¬
from
Federal
a
a
BOUGHT
-
SOLD
fore
.
.
7
-
Supplied by the Wealthy.
Lays Declining Attractiveness of New Under¬
the
32nd
Mr. Folsom be¬
Foreign
National
Says Decline in Enterprise Not Due to Internal Decay.
7' The problem which I wish to discuss with you
one
I
of very great importance.
am
history and
present
ties
the
which
protected
and served. ' 77
•77'7';V': '7~-• /■ v,".7
My.; connection with American
industry goes back to January,
1897, when I entered on an old-
re¬
lating to the
financing of
aew
am
not
the
responsi¬
laid
the State
supervisory
upon
and
dustry and many more within re¬
were
lated indqsiries.
Of these a fair
proportion have gone through the
industry
by
years.
un¬
that
operate,
which
bodies
organized
to
This
enforce.
Ralph E. Flanders
will
be, therefore, in the
brief
a
lived
presentation of the
are more
pert than
Trading
suggestions
as
difficul-
to how the
address
by
Flanders
Mr.
Security Dealers Assn.
before the Convention of the
tional
Association
in
Na¬
Securities
of
77.-7,7,
with
furnished
office
member
another
house
Commensurate
downtown.
Seligman, Lubetkin & Co.
Incorporated
New York
\
Members
6, N. Y.
Man,
banking
credit
B
1129, Com¬
Knowledge
necessary.
experience er
41
Broad
Markets
York
New
Security Dealers Association
25
Park
bank
accounting
Good position and
PL,
ticut National Bank, Address
Box^B
1129,
Commercial
8, New York.
Place,
New York 8,
N. Y.
HAnover 2-2100
Street, New York 4
*1
TRADING
Broadway Barclay 2s/56
Bway. Trinity Place Bldg.
/63
4
MARKETS IN
w.
Hotel
80 Broad St.
w.
s.
4s/56
165 Broadway
Governor Clinton Hotel 2-4s/52
Bldg.
w.
w. s.
s.
41/2s/58
,
Amott, Baker & Co.
J. S. Strauss & Co.
Incorporated
4
150 Broadway
Tel.
BArclay 7-2360
New York
7, N. Y.
Teletype NY J-588
PRODUCER
Stock
Mayflower Stock
40 Wall St. 5s/66 wl s.
s.
Savoy Plaza 3s/56
4Vg/.5i
V2 s/63
f Hotel Waldorf-Astoria
Hotel Lexington Units
Broadway Bldg. 4V2/58
Teletype SF 6l & 62
w. s.
&
Financial Chronicle, 25 Park
"ir/MO-
Montgomery St., San Francisco
job.
for
of
man
Teletype NY 1-1203
Wall & Beaver
salary.
WANTED
1929
Chronicle,
Broadway
Broadway Trinity
Bell
Securities. 31, personable, 14
Over-the-Counter
brokerage ex¬
teletype,
switchboard, handle
own
correspondence.
Excellent
back¬
ground and references. Currently avail¬
able,
or
January 1
for small unlisted
perience,
good opportunity in Connec¬
Broadway Barclay 2/56
155
Secretary Available
Investment
years
firm. Box
Beacon Hotel 4s/58
165
at 7 mature
experienced and ex¬
myself any offering of
N. A. S.D. Member
QUOTED
rl.:\'
Firm
.arrived
have
from the standpoint of strength and usefulness as sources
interest, leaving to those ■777 (Continued on page 2608)
7
mercial & Financial
HAnover 2-8970
vigorous_y-Outh,
a
problems
Desires
L.J.G0LDWATER&C0.
39
and
through
have
childhood,
of
difficulties
Convention, New York City,
Commissioners, Chicago, 111., Nov. Box NS 22, The Commercial & Financial
12, 1945.
7:'77'7v 77""!...
>/."■
Chronicle, 25 Park Place, New York 8.
16,1945.
'7
(Continued on page 2602)
Since
New York
New
a
Nov.
Complete Statistical Information
Members New York
apprenticeship in
your
laws
der which you
main
is
for the intervening 49
During the early part of
period many new companies
were
established within that in¬
authorities
the
interest
England machine-tool plant, from
which
I
graduated three years
later as a journeyman machinist.
In one way or another I have been
connected with the machine-tool
with
bilities
be met by ways in
public
fashioned
familiar" in
detail
can
.
undertak¬
ings. I
this morning is
familiar with much of the past
situation
the
who
Real Estate Securities
-
-
takings to Drying Up of Adequate Returns Due to Excessive Taxation,
expanded public
(
•
for
.
SPECIALISTS
7
7;
Development of New
Undertakings and Points Out That Initial Capitalization Is Now Seldom
Trade
Federal Reserve Bank.
CERTIFICATES
Industrialist and Banker Traces the
Prominent
"It is the Committee's view that
"An address by
be
Reserve
TITLE COMPANY
,7, .By RALPH E. FLANDERS*
President, Federal Reserve Bank of Boston"
/
"An
Bank and should not be submitted
to
trade.
extensively
are an essen¬
Consular offices.
obtained
Teletype NY 1-953
report,
foreign trade can contribute most
to
the peace
and prosperity of
both the United States and the rest
the declara¬
The forms for filing may not
Dlgby 4.4950
-
requirement
world
Denmark.
Exchange
Members New York Curb Exchange
[
40 EXCHANGE PL., N .Y.
in
savings-bank
★
Members New York Stock
tial
coopera¬
or
*
Hotel, 4's
★
in its fourth
of 500 kroner maintained with any
products.
discussed
Committee
respect to each deposit in excess
Savoy Plaza 3-6's, '56
★
not
or
income,
More¬
which is small
Compared with our total national
volume of business/ has a very
important impact upon other na^
tions,
many
of which
depend
heavily upon international trade.
"High levels of output and em¬
ployment
at
home, which
the
provided
whether
persons,
national
our
trade
this
over,
they are nationals of Denmark, to
870-7th Ave. 4H's
(Park Central Hotel)
Beacon
are
of
manufactured
Danish- authorities ex¬
1945.
22,
fine of up
a
Danish Law No. 352 of July
for by
4's
subject to
7%
to
provides us with many essential
products and raw materials, and
affords u& a very important mar¬
ket for certain agricultural
and
the
After
of the account balance.
25%
Such
Hotel St. George,
5
of the
favor
in
Government.
Some of these
expiration of the time limit, the
acceptance of any declaration may
SECURITIES
*
attached
be
Danish
7;7J-r.;
Retarding Industrial Expansion. Urges More Freedom in Investment for
Banks and Fiduciary Funds and Less Interference by Administrative
favorable comments were
Reserve Bank
Chicago
The Problem of
Discouraging Small Business, Are Strengthening Large Corporations and
tions
Folsom
B.
mittee
The advices
14 added:
Nov.
the
with
or
marks Nationalbank.
!', 11———
—-—:————
77.7...•' '■ /■/. 7; 77': number of,
basic principles which the Com¬ Regulations.
of 500
sum
ex¬
/
contained
It
M.
July 23, 1945 must file
a declaration of ownership with a
Danish
Consular
office
in> the
kroner
:7,
recommenda¬
has a
Danish
the
of
United
bank, savings-bank, or coopera¬
tive savings-bank which, with in¬
terest,
other
Advantages of Old Concerns in Trying Out New Ideas and Restrictions
on
Risk Investments.
Holds Heavy Brakes on New Investment Are
icy
Legation in Washington to the ef¬
fect
and
States.
by the Danish
made
nouncement
to
a
year
57-page report
on
the
post¬
war
foreign
President of the
Exchange
changes.
members
both
-
with
composed
tee,
of 18
selected
43/4% to 4%.,-..
association
Co., 11 Marietta Street,
Commit¬
This
.
Ownership Declaration
ser¬
W., members of the New York
Stock
Special Committee on Post-War
Virgin,
forces, have
trade.
eign
other
most
issues.
N.
the armed
their
&
Courts
situation I would like to refer
■
Hopkins,
Jack
having completed their
resumed
Loans.
Contends That
Free and Frank Disclosure.
•
cur¬
40's
low
after
Relief and Make Productive
Give
to
Cabell
Commander
vice with
Congressional-Post-War Economic Policy Committee Re¬
Conditions in the Chief European Countries, and Urges the United
views
of the Capital Stock of the 18 East 41st
Bondholders own 100%
Street
tenant
of
Director
Attractive
GA. —Lieutenant
W.
Captain Walter Smith, and Lieu¬
Director, Special Committee on Post-.War Economic Policy
and Planning of the House of Representatives
Corporation—Fee Mortgage Bonds
Equity Situation
18 East 41st Street
ATLANTA,
Commander
Kodak Co.
Treasurer, Eastman
With established record
counter
(and some Stock
sires connection
with
some
Exchange) business de¬
with New. York Stock Exchange
opening an unlisted
department
member or non-member
house wish¬
firm interested in
or
in developing over-the-
existing unlisted activities. Please
1122, Commercial & Financial
Chronicle, 25 Park Place, New York 8, N. Y.
ing to expand
address
Box
L
Volume 162
Number 4442
Post-War
THE COMMERCIAL
& FINANCIAL CHRONICLE
Tsrpie & Saltzman Are
Forming Inv. Business
Supervision
Of Securities Dealers
James
V.
California
vocates
Let
-
view;, first
the
••
—"
.
9
Maintaining That Civil Action Against Sellers of Securities, Where
Involved, Is More Effective in Protecting Buyers Than Criminal
Provisions, Mr. Cornell Urges That Courts Clarify the Basis for Assess¬
East
Fraud Is
City,- to
ing Damages.
associated
were
F.
Asi'el-& Co.,
York
Moore
&
Co.
that
Asiel
to
Stock
Col.
When
11 Wall Street, New
a
announces
some
;
told'
!
;
-
him
as
w
h
and
"Broker"
{'.? }
are
?.First Vice-President, Investment Bankers Association
used, synony¬
Mr. Collins,
mously as the
problems of
pervision
are
basically
:
/
or
bad/ The
vast
J agents
,
conduct
ard
visor.
governmental agen¬
to regulate the sale
and issuance of securities
in
are
a
ington. I bring
This
tion.
a
pliments
exploited
Wallingfords"
often
at will.
The
public demand,
securities
laws
More and
changed the 4-carat diamond and
"startling plaid tweed for the Ox¬
broadcloth
ford
of
These
spectability.
asserted
re¬
in
wolves
sheeps' clothing really had a hey¬
day in the '20s. When a duped
public was again disillusioned in
'29,
it
Curb
and
demanded
the
The
abuses.
Exchange
National
laws
severe
to
Securities
Commission, the
Recovery Act
Industrial
with its Investment Bankers Code,
and the Maloney Act came in suc¬
cession
as
effective
also
the
the
Congress sought an
remedy.
Many States
added
regulations
more
for
brokerage business.
substi¬
tute,
to
enthusiastic
Julien
an
H. Collins
activity in the
which
Association
he
thought
Had
would be of interest to you.
he addressed you, he would have
mentioned several important proj¬
of
ects
which
Association
our
parallel the work which members
of
your
organization are doing
throughout the country.
will
I
describe
to
you
briefly,
of the Education
Committee, which, after two or
three years of planning, has pro¬
gressed from the blue print stage
the
is
program
It
that
the
of
He
this
years
endorsement
members.
attract,
we
of
important
and
to
the
us
whose
Our first
to
was
WARD
step
in the
prepare
CAREERS
TO¬
These have been
ed
among
and
also
widely circulat¬
service men overseas,
of
who
men
(Continued
are
being
on page
An address
fore
the
Convention
Association
tional
of
of
the
2604)
Securities
tual
TRADING
standards
of
the
;*An address by Commissioner
Daugherty before the Convention
fore
of the National Association of Se¬
Securities
curities
cago,
An address
the
•
Twenty-two stocks traded
are
investment
also traded
by Mr. Collins be¬
National
Association
Commissioners.
.
of
STOCKS
on
*•
on
the New York Curb
the San Francisco Stock
a.
m.
Exchange
Exchange between
and 5:30 p. m.
'•
■
(E.S.T.)
lins is President of Julien H. Col¬
lins & Company,
Chicago, 111.
Co.
5.
members
y
*
'v;
PINE
*
*
~
NEW YORK
new york curb
-
r
.
.
exchange
san francisco stock exchange
15CIO
SAN
5
recognized
by
equipment
Marine
leader
in
as
the
production
of
manufacturers,
well
as
producers
filters
all
of
used
major
RUSS
BUILDING
FRANCISCO
A
partment store decided to eliminate
.t"«r( 1-1287
1-1288
Members N.
120
Y.
&
-
brands; 73% Hook for the brand';
78% look
or
for informative labels
stamp, to confirm quality."
That's what
names."
we
lot of
■
names
too* of the
by "calling
mean
;
'
You, kind reader,
•
■
■
you
v;.<
■
.
think of
can
a
call for. Think,
companies who
own
those names; who have built them
to become precious assets in the
world
of merchandising, by con¬
stantly building the quality of the
products they represent.
How much is
brand
a
name
The manufacturer of
worth?
accepted
brand can suffer complete destruc¬
tion of his physical assets. Build¬
ings
can
or
an
be utterly destroyed by
holocaust. He would be tem¬
porarily out of business, to be sure,
but just as soon as he can rebuild
plants, he is back in business
A great
responsibility
name
goes
with
a
in merchandising and it
of such
a
product„ It obviates the
necessity of his selling the
And
Quarterly dividend paid October 15,1945
$.50
DIVIDENDS:
/
(to date)
1945
$2.25
—
1944 $2.75
consumer
1943 $4.50
and
;
Approximate selling price—27 V2
Analysis
Co.
ESTABLISHED
RE 2-8700
74
1914
■
making good. He will stop at
nothing to protect his nameI
if
they
FREE —Send
'
Trinity Place, New York 6, N. Y.
Telorthona: BOwlinff Green 9-7400
T
the responsibility
of
request
Specialists in Soft Drink Stocks
Telephone:
5
assumes
Teletype: NY 1-375
or
the manufacturer
"Calling names" is
on
Hon Rose STrsster
Security Dealers Ass'n
advertising.
if, perchance, something
other goes wrong,
gladly
—
J936
broadway, new york
answer:
"56% generally ask for specific
...
Est#
This if the
area.
a survey
buyers in its trade
the investment of millions of dol¬
New
Ward
work, by making
women
lars in brand
PANAMA COCA-COLA
ex¬
farm
Aircraft
engines and other industrial manufacturers.
Teletype:
in
large eastern de¬
a
the quality of his merchandise.
His supplier does that for him thru
Products, Inc.
Automobile
concerns
article
recent
Printer's Ink,
on
Founder, Builder, Leader of Its Industry
tensively
of proving it. Ac¬
a
accompanied by a guarantee of
quality—to the purchaser. And the
retailer, too, benefits from his sale
Circular Available—\
A
ways
to
long suspect and
is
y
hew york stock exchange
;•
STREET
are
cording
s
'
r:
The
there
great
Kaiser
names.
This has been
because the "name" has survived.
A list of these stocks is available upon request
,k
searching out products
with well-known
Chi¬
111., Nov. 17. 1945. Mr. Col¬
combina¬
synonymous.'
than ever, the con¬
more
is
sumer
his
Quotations arfti executions promptly handled over our Direct Private Wire
,
2D
Purolator
Today,
fire
seeking to further im¬
the1 ethical and intellec¬
the hours of 10
Commissioners, Chicago,
111,, Nov. 17, 1945.
;y">.
\
■
/ '• •
(Continued on page 2603)
YORK
NEW
IN
are
prove,
regulate
FRANCISCO
Na¬
Commissioners, Chicago, 111., Nov.
17,1945.
,
■ v,
re-
the classroom. You will recog¬
nize the aims and purposes of our
SAN
two-word
to
by Mr. Cornell be¬
to
We
These
up
among
of
tions have become
nothing and sometimes
sees
number
a
dise."
secur¬
,
for
"standard-merchan¬
Unlike
the purchaser of
eye,
have,
of the
visible
are
meant
meant
the
*
eligible men in
colleges and universities. Of late,
they have been
placed in the
hand"
brands"
sense
Therefore, because
intangible nature of these
pieces of paper, which have been
designated as securities, and their
well
known
susceptibility
to
manipulation and fraud, the Leg¬
of
FINANCE.
IN
mane
product
during the current
as
years,
show-horse,
a
buying
consumer
of the
shortage of merchandise. "Name-
the guess
gets nothing.
program,
booklet,
a
cold.
or
of
much,
so
glossy coat, shiny tail and
well-combed
ities
-
before in the his¬
never
name
depth
size,
further determine
can
purchaser
the
its
dimensions, and by his
whether it is hot
our
investment
to
determine
can
of touch he
banking, young men of character
and ability, capable of learning
the simple truths, which may mean
the difference between profit and
loss to an inexperienced investor.
and
their' long, range
benefits td the investing public.
in- that it created a vehicle for the
business
for
conduct
progressive forward step,
investment
have
respon¬
sible
two
plan has been discussed with our
committees
and
has gained
the
except
I
than
more
a corpo¬
program,
The Maloney Act was probably
the most
his
that
passed.
made
and Ability
For
money.
ration, the assets of which amount
to a certain sum of money.
In
either case, what the purchaser is
really buying is a representation
and promise, upon which he relies,
and seldom does he actually view
and behold the physical premises
or property.
Unlike the purchas¬
er
of securities, the purchaser of
a
refrigerato rcan see the tan¬
gible property that he is buying.
Character
of Men of
reason
been
more
As
protective legislation progressed,
the stock-selling bunco-man ex¬
were
the
Importance
should
be
have
has the
much
quot part of the assets of
eager
are
presentation
honestly and intelligently. ^
no
logical
why I
investing public became outraged.
Legislative bodies responded to
Association,
an
property
so
Perhaps
/
tory of American
Ernsst Cornell
If it is a
share of common stock, then the
purchaser has doubtless been in¬
formed that he is buying an ali¬
is
probably
investors
as
to
and
There
always the situa¬
Prior to the '3Cs the "Get-
Rich-Quick
we
com¬
his best wishes.
not
was
his
you
By MARK MERIT
com¬
mortgage
worth
business, by sponsoring
the selection and training of young
men who will shortly become the
representatives
of
our
various
member firms. They are the young
men who
will present our offer¬
ings to buyers of securities, end
American Red
a
upon
~
~
•
Calling Names
-
ponent part of
that he
except
noon,
'
Cross inWash-
substantial
amount
of their energy to the
small minority which has a taint.
devote
Association,
SCHENLEY DISTILLERS CORP.
it
certain
space,
appear an advertisement which
hope well be of interest to our fellow
Americans. This is number 108 of a series.
has
represents'
Cliff
'f-——1
banking
im¬
a n
Bankers
NOTE—From time to time, in this
a
told
a
of
2604)
page
we
bond, then the
purchaser
Vr :--0
speaker this
portant meeting of the
Thus
to
your
at¬
tend
cies designed
position
been
nec-
to
gauged by the stand¬
governmental super¬
as
the
of
it
essary
'V
'
Investment
the
of
Folger,; would, have
found
today
honest and legitimate
an
business
majority
'/V
President
The
of dealers and
Daugherty
y.
Transactions.
either good
on
there will
of
is
doubtless
been
states,
exercise
SCHENLEY DISTILLERS CORPORATION
■
be¬
piece
paper
Importance of Having Young Men of Character and Ability in Invest¬
Banking. Describes Steps Taken Toward This End, Which Com¬
prises Publication of the Booklet "Careers in Finance"; the Inaugura¬
the same.1
tion of a Training School at Chicago; and the Plans for Additional
The -public
Training Centers, With Lectures by1 Financial Leaders.
Says Invest¬
usually classi¬
fies
a
dealer ment Public Must Still Be Mindful of Fraudulent and Unintelligent
as
is.
the
Chairman of 1BA Education Committee, Stresses ;he
as
the
the due
(Continued
:
hind it to give
it
value.;If
ment
s u
Edwin M.
acting under
to
what
"Dealer"
—
of
many
a
In this discus¬
Ov/-';/-:/;.
of
that
t.
a
———
islatures
piece of paper
represents
or
-O 1'O'?.
<$>——
-
has
one
story
has returned to the firm.
By JULIEN H. COLLINS*
security he buys only a piece of paper, the
negligible.
The reason he purchases that
because
is
and second the
-,V\
a
piece of paper
Exchange,
Hugh J. Cox, A. U. S.,
^hpervisors.
sion, the terms
buys
person
intrinsic value of which is
Dealers
■
Holds Fraud Should Extend Beyond Statements in the
Prospectus and Should Include Oral Statements and Negligence of Seller
to Properly Acquaint Himself With Facts.
Urges Courts to Look Be¬
hind the Scene and Consider
Relationships of Parties as They Exist
Under Particular Blue Sky Laws.
as
City, members of the New
York
the
of
Army?both
Col. Cox Returns
.
\
at
York
unlisted securities traders.
problems involved in the "Supervision of
Securities Dealers and Agents in the Postwar Period" from two points
/.
S.*
with'Will iarh
Calls for Legislation
Spurious Canadian Mining Stocks.
consider
us
offices
New
, in
-the investment busi¬
Prior/to their service in the
ness/
Policy in Dealing With Swindlers.
Prevent Sale of
to
Street,
engage
U.
Because of Probable Increase in Securities Business Ad¬
Stern
a
with
40th
In Pointing Out the Progress of Securities Regulation, Commissioner
Daugherty States That Government Agencies Are Now in a Position to
Devote Their Energy to the Small Minority of Securities Dealers "Which
Have a Taint."
Praises Maloney Act as a Vehicle for ihe Investment
Business to Regulate Itself and Relieve Government of Burdensome
Regulation.
Says Prevention Is Preferable to Prosecution in Dealing
With Fraud.
By ERNEST CORNELL*
Chief, Division of Securities, State of Ohio
are
Saltzman
By edwin m. daugherty*
Commissioner of Corporations,
j
Fraud in Sale of Securities
Torpie and David I.
forming Torpie &
Saltzman
2577
mark
merit
are
a
good
a
good habit
names.
postcard
of schenley
or
letter
to
distillers
350 Fifth Ave., N. Y. I, N. Y.,
and you will receive a booklet contain¬
ing reprints of earlier articles on various
subjects in this series.
corp.,
THE COMMERCIAL & FINANCIAL CHRONICLE
2578
\
Thursday,' November 29, 1943
j Kendall Company—Descriptive
I circular—Seligman,
Dealer-Broker Investment
Trading Markets in
■■
;
h
.
Bunte Bros.
|
Recommendations and Literature
Nu Enamel
he pleased
interested parties the following literature:
to send
■
«
,
&
x
Also detailed circulars on Fash¬
Park, Shatterproof Glass, and
Wellman
Engineering
Co.;
and
practically all Real
Estate issues in New York City.
reports
-
,
■:
on
Transportation—Pamphlet
Air
reporting
C. L. Schmidt &
;
Co.
1922
South La Salle Street
CHICAGO 3
120
Tele. CG 271 -
Tel. Randolph 6960
CARTER H.C0RBREY&CO.
Association
of Securities Dealers
Member, National
—
Inc.; All Amer¬
Aviation, Inc.; American Ex¬
port Airlines,
Inc.; Chicago &
Southern Air Lines, Inc.; Contin¬
ental Air Lines, Inc.; Delta Air
ican
Corporation; Expreso Aereo InterAmericano,
S.
A.;
Inland Air
Lines,
Inc.;
Mid-Continent Air
Lines, Inc.; and Taca Airways, S.
A.—Troster, Currie & Summers,
74
Trinity Place, New York v 4,
N.
Y.
i Chicago Railway Equipment Co.
—Analysis of high leverage .com¬
stock—Sills, Minton;& Co.,
Inc., 209 South La Salle St* Chi¬
cago 4, 111.
V;
mon
Briefs—Notes
in
dis¬
H.
subjects
on
reviews
recent,
—
Co., 60 Beaver Street,
New York 4, N. Y.. "• ,v'
, :U
- i
&
Hentz
For
Canadian
MARKET
List
Excess
.
LOS ANGELES 14
650 S. Spring St.
CG99
which
companies
of
Michigan^ 181
of
Tax
effective
.
should
reduced
Excess Profits
Canadian
rates
State 6502
Consolidated
Cement ; Corp,
A—Bulletin on recent de¬
Class
velopments—Lerner ^ &
Co.,
Post
Office
Square,
Boston
Mass.
1
v. - :
j;-:?-"
Also available are circulars on
.
(Consolidated
The
Jan.
1946
1,
.
—
King & Co., 61 Broadway,
New York 6. N. Y.
I
Charles
Chicago
Barometer
Theory
—
Dayton
weeks'
Malleable
Corp.
benefits
HICKS 6- PRICE
Principal Stock Exchanges
Chicago Board of Trade
ST., CHICAGO 4
SO. LA SALLE
231
Randolph 5686—CG 972
York
New
Office
y
Central Steel
Globe
•Wells-Gardner & Co., Com.
•Prospectus Available on Request.
by
St., Chicago 3
Teletype CG 405
Indianapolis, Ind.
Rockford, 111.
Cleveland, Ohio
Sheet—
Quotation
Estate
monthly quotation sheet on real
estate
securities designed
espe¬
cially for dealers, showing current
market, as well as change in price
on
each issue since the close of
preceding month — Amott,
Baker & Co., Inc., 150 Broadway,
New York 7, N.
Bantam
American
,
Car
Co.
—
and comment—Kneeland & Co., Board of Trade Build¬
New report
ing, Chicago 4, 111.
Mich.
Socket&
Larson
National
Rapids
Grand
Rapids 2,
;.'i
:w-v-v'v:
—Adams & Co.,
231 South La Salle
Street, Chicago 4, 111.
135 South
Chicago 3, 111. I
V The
Miller
Also
available
Dri-iSteam
are
Products,
celain,'International Detrola, Ma-,
jestic Radio & Television.
>
Dearborn 1501
Boston &
Maine Railroad—cir¬
&
Peck,
63
Wall
Inc.
available
Also
an
individual
on
a r r e
11
Co.—
^Birmingham
Analysis—W. J. Banigan & Co., 50
Broadway, NeW Yofk 4, N. Y.
Franklin
of
ysis
Inc.,
Ill
N. Y.
Coal—Anal¬
County
condition
and
LazardFreres
Opens
Chicage Branch
Broadway, New York 6
r'. -V. .7y:7
,,v'
Tanning
CHICAGO, ILL.—Lazard Freres
&lCo., members of the New York
Stock Exchange/have opened an
Co.—
.The
Pump
Memorandum
—
Brothers;5
—
Walnut
1529
&
Utilities.
jSchenley Distillers Corporatiot
of articles they have
running in the Chronicleto Mark Merit, in care ol
Schenley
Distillers Corporation
been
Fifth
350
N.'Y.:;yy'.y7
.
is jn
Rubber
-South La Salle
—
Recent
Co.,1
&
Build¬
charge of John N. Shillestad,
Lazard Freres & Co. also main¬
tains branch offices in Boston and
Philadelphia.
Analysis
-f-
Stock
the floor of the Chicago
Exchange, it is announced:
Arch
C. Doty, Charles T. Jawetz, Francis O. McDermott, Robert
F. Schenck, Jr., and Hugh H. Wil7;
son.
It
was
in' the
James
—
&
Co.,
Building,
Union Commerce
Cleveland 14, Ohio.
(
United
Wellman
Lawrence
E.
Five Men Rejoin Nuveen
CHICAGO, ILL.—John Nuveen
Co., 135 South La Salle Street,
:;
Fred
D.
that Arthur F. Goeing,
Stone,
Jr.,
and
Ben
H.
Fuqua, all Lieutenant Command¬
ers,
Navy, and Jackson E. Cagle
and Paul A.
,
em¬
serv¬
Army:
States
Jy Glenday,
announces
Engineering Co.—cir¬
Mericka
}'-t:
Gavin, and Louis J. Gronski.
Ask for analysis
Wm, J.
—
Exchange
Stock
ployees have returned from
&
Wellman
•■■■
announced, also, that the
following
ice
ts..
cular
their
resumed
on
Raymond & Co., 148 State Street.
9,. Mass.
have
and
duties
120
Street, Chicago 3
Bank
formerly Sales Manager of Glore,
Forgan & Co., Chicago.
1
;7;7/7
-
Stores
Tyhor
York
Avenue,? New
Inc.,
;
Illinois
ing, 231 South La Salle Street, ancl
write
circular—Amos Treat
& .Co., 40 Wall Street, New York
5, N. Y. y'yVy
; 7
:v-:"yv
Giro-Cord
office is located in the
new
Continental
descriptive
;
Chicago to accommodate
,.)
its business in the Middle West.
-HBrochure
Boston
Greiss-Pfleger
New
service
Co
&
on
England
Reda
post-war
Koller
H.
broker
of
Son, Inc. and Midland
Sheller Manufacturing Corp.
floor
7- >y
y
Recent
—
report
a
■■■-•
Engineering Co.—cir¬
Hakanen, both Lieu¬
released
Hajoca
Corp.—Circular
tenants, Navy, have been
from active service and are again
Street, New York 4, N. Y,
Woodall
tailed
Industries,
memorandum
Inc. —De¬
outlook—
on
Penington, Colket & Co., 70 Pine
Street, New York 5, N. Y.
R. Bundling,
the firm.
recently
Walter
leave of
on
;
company.
the
rejoined
also
has
absence,
7
Thermatomic Carbon Co.; Red
analysis
*
:
7
■\fe have
U
V
:
with
associated
in¬
on
teresting possibilities—Hoit, Rose
& Troster, 74 Trinity Place, New
York 6,
N.;Y.
•;
Also available is a memorandum
on
cular—Simons, Linburn & Co., 25
Broad
111.
Hill Diesel Engine
a
&
continuing.inter est in—.,
;•
yyj
'
■"•
■":
Cfiumnotn & Co.
IJdrlt Stocl (Cichanyt and Chicago Stocl (CicLxnf
'/"/Ji
Descrip¬
low-priced
834 South
Shawmut
9, Mass.
Bank
■-'*
y
Analysis Available:
209 South La Salle Street
Sprtnij Stfael
:TEL TRINITY
Building^
■
V-';"'
nHirAPA 4
LOS ANGELES 14. CAL.
building stock—Du Pont, Homsey
Co.,
STRUTHERS WELLS CORP.
""
and
—
on
7^,
,
MARYLAND DRYDOCK CO.
.
indications—Vilas
&
Hickey, ~49. Wall Street, New York
5, N. Y.
:V '
••
• 1
memorandum
^
MARYLAND CASUALTY CO.
Co., 120
Central—Outlook
Johnson Automatics
.
BOWSER, INC. :
CoA-Memo-f
W7 Gould
Boston
Street, New York 5, N. Y.
J Fred.W.FairmanCo.
as
Return to Chicago Exch.
Lime Co.—Briei
CHICAGO, ILL.—The following
leverage possibilities— floor
members, air former officers
Dayton Haigney & Co,, 75 Federal
of
the
Army or Navy of the
Street, Boston 10, Mass. • '.
;y/ United States have returned from
study
--i
: ■■
6, N. Y.
Street, Philadelphq 2, Pa.
'Also memoranda
on
Bird
tive
cular—Adams
Chicago Stock Ex¬
H.
Schewe,
the Chicago Exchange; Mr. Schewe
Was with Mitchgll, Hutchins & Co.
Co.—Anal¬
Radiator
ysis, for dealers only—0. E. Unterberg & Co., 61 Broadway, New
Buckley
randum—J.
circulars on
Clyde Por-
George
Karl
and
office in
Company,
Street, New York 4, N. Y.
New
y
Prod¬
Broadway, New. York 5, N. Y.
I SINCE 19081
,
26, Mich.
Signal—rCircular—J.
Illinois
.Reilly &
Co., 40 Exchange
Place, New York 5, N. Y.
earnings
Teletype CG 257
,■
Wohl
-
popular-priced women's and chil¬
dren's apparel—Hardy & Co., 30
Automatic
CHICAGO 4
IlLy y/.^y;
Salle Street,
La
Inc.,
York
Ox- ;
Cement;
Electromaster
F.
COMSTOCK & Co.
change,
Common—Revised
Utilities
land
American Service Co.—Circular
Corporation
231 So. La Salle St.
'
of Panama Coca-Cola.
Aircraft
Howard
Window
Rock Bottlers, and a new
Corporation
Drive
' -•
209 South' La
Co.,
report — Mercier,
McDowell
&
Dolphyn, Buhl Building, Detroit
-
Young,
Tornga, Grand
Bank Building,
Wheel
Port.
analysis—Caswell
American Forging and
Auto Company
member of the
'•
Chemical;
Paper; United Artists Thea-
ucts..''':-''--';--:
F
Bank—-Booklet
dis¬
cussing the whys and hows of the
success of the Bank of America—
Butler-Huff & Co., 210 West Sev¬
enth Street, Los Angeles 14, Calif.
Circular—De
Central Coal & Coke
•
N.Y.
1916
Principal Stock Exchanges
Chicago Board of Trade
Four
Lawrence
ford
con¬
prices — Thornton &
Co., 60 Wall Street, New York 5,
Members
Tel. Franklin 8622
obtained
be
the
Paul H.Davis & Go.
10 So. La Salle
American
Michigan
Glass;
Lowof
supply and a gradual rise in
Real
Steel Tubes Co., Com.
'
Realization and Mid¬
National
Shares —Study
A
& Wire, Com.
Established
&
Salle Street, Chicago 4,
Mills, Inc.; American
prospects—F.
Corp., Com.
•Burton-Dixie
y^'
-
Industries;-
American
Airways;
metal
base
George W. Borg Corp.
""The
to
on:
Hardware; Douglas Shoe; TACA
People's
Wall St.
1
-
late memoranda
are
Great
A
servatively capitalized companies
from an increase in the available
labor
Members
for
Earnings
Metal
Priced
be
Robinson, Arthur C. Harrison,
Company—Report—
Magnavox
Cruttenden
.'
bulletin—Doyle, O'Connor & Co.,
Co.—
Iron
ter Circuit; and Purolator
Request
on
y:
7
-
Broad
Inland Building,
Increased
Circular
Co., Inc., and Locomotive
Pattern
Firebox.
available
$1—Gay lord Wood,
Indianapolis Ind.
trial,
will
Partners
Street.
purchase — First
Colony member of the New York Stock
'
"
)
Corporation, 70 Pine Street, New Exchange.
Mr. Robinson was formerly a
York 5, N. Y.
yy;,'
Also
available are studies
of partner in Goodbody & * Co.; Mr.
Pittsburgh
Railways,
Simplicity Harrison has been doing business
Inc.—circular oh this operator: of
a
chain of retail stores selling
trends in the stock
Consolidated Gas
Utilities Corp.
of Jan. 2nd
as
lative
Study of outlook and speculative
possibilities for appreciation for
this company—Ward & Co., 120
Broadway, New York 5, N. Y. Also
service predicting future
market—Four
weekly
and
Street,: Chicago 4.
,
Dow
Utilities
Gas
Corp.—Circulars-
Hicks & Price, 231 South La Salle
Alabama
The Chicago
10
9,
Central Iron & Steel, Oregon Port^
land Cement.
;""V yy.;;- yy'/yf
Profits Tax—
materially benefit under
DISTRIBUTION
135 La Salle St.
Roi
Company — Study of
stock as a sound specu¬
Le
Robinson &
—
•
!
UNDERWRITERS
CHICAGO 3
i
common
Midland
Pacific Coast
SECONDARY
CHICAGO, ILL.
Co. will be formed
with offices at 231 South La Salle
.
cussed
Middle West
for
outlook
the
on
Alaska Air Lines,
Wholesale Distributors
'
Formed; NYSE Firm
A.
Ray-O-Vac
Established
Robinson & Co, lo Be
ion
Central Electric & Gas
It is understood that the firms mentionedwill
Lubetkin
Co., 41 Broad Street, New York 4,
'New York.'
DIIECT
°
:
Ti
»
•
Fint National Bank Didf.
f
*LUNOIS
UNCOLN I. NEB.
TEL DEARBORN DSOO
6345
PRIVATE
WIIES
TO
EAST
TEL 2-3349
^
A NO
COASTS
WEST
•
-
i
.
•
—We Maintain Active Markets In—
•
'
y
1
Members
Chicago
Stock
Chicago
Board
of
CHICAGO RAILWAY EQUIPMENT
Exchange
Trade
This high
.Midland Realization
A
208
study
M-3—
CHICAGO
Telephone
4,
SALLE
Earned $8.49 per share in 1937, the last good rail
Yields in excess of 6% on basis of 1944 dividend.
car year.
Randolph
System
York
CG 537
v
;
Byllesby and Company
Incorporated
135
INCORPORATED
Members Chicago
Stock Exchange
So.
La
1421
Telephone State 8711
Teletype
CG 864
|
New York
Philadelphia
>
•
Salle Street, Chicago 3
-y
Teletype CG273
209 SO. LA SALLE ST.. CHICAGO 4. ILL.
Telephone Dearborn
:
NORTHERN STATES POWER CO. 0 & 7 Pfds..
H. M.
'
4068
New
DEEP ROCK OIL CORP. Com.
SILLS, MINTON & COMPANY
ST.
ILLINOIS
Direct Private Wire to
Bell
leverage common.stock is well,situated, to assure
participation in the rail equipment boom.
Company is
dominant
manufacturer
of
Railway
Car
Brake Beams.
of Midland Utilities
SOUTH LA
CHICAGO SO. SHORE & SO. BEND RR. Com.
,
Midland Utilities
Write For
COMPANY
Pittsburgh
Minneapolis
•
Volume
162
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4442"
2579
Rejoins First Boston
Postwar Problems of
By MAURICE HUDSON *
...
.
(Special to The Financial
NSTA Notes
:
'
Corporation Commissioner of Oregon
"
Mr. Hudson Foresees the Same Problems
as in Pre-War Days, but Says
They Will Be Greater in Volume and the Applications to Sell Securities
Will Be
Warns of Pressure Put Upon Securities
Greatly Increased.
J.¬
Chronicle)
CHICAGO, ILL. — Francis R.
Schanck, Jr. has rejoined the staff
of The First Boston Corp., 231
South La Salle St., after serving
in the U. S. Navy.
Commissions to Approve Issues Because of Benefits of New Businesses
to Local Communities, and Predicts a Larger Number of Corporate
TRADING MARKETS
BALTIMORE SECURITY TRADERS ASSOCIATION
CHICAGO
The Baltimore Security Traders Association will hold
its^anriual
meetmg for the election of officers in the form of an oyster roast on
Dec.^14 at the Maryland Yacht Club."
Edward B. Freeman*
Lockwood, Peck & Co., has been nominated
for^the presidency, to succeed Hi Emmet
Bradley of-Mackubin, Legg
-
TRACTION
■
Reorganizations and Recapitalizations Than Formerly. Looks for New
Foreign Issues and Promotions of New Inventions and Calls for Full
Cooperation of the Various State and Federal Commissions.
^
\
& Co.
;
*-■
BONDS
■
.1
:
°iher. officers nominated are: J. W. Butler, Baker, Watts & Co.;
Vice-President; Edwin P. Sunderland, Mackubin, Legg & Co., Sec?-,
Yes, I come from Oregon where some time ago the poet, said in
retary; and William J, Herr, .Alex* Brown & Sons, Treasurer.
•effect, "Where rolls the Oregon and hears no sound save its own
dashings."The
;■
SECURITIES TRADERS ASSOCIATION OF DETROIT
\
financial wizard, an expert ap¬ AND MICHIGAN
The
Oregon
,;;
rf\
still rolls, but
praiser, a keen judge of men and
; The Securities Traders Association of Detroit and
Michigan,
a seer whose knowledge of the fu¬
no
longer in
have announced the date of their annual Winter
Party as of Dec 7.
KITCHEN & CO.
|
-Chicago 3V III,
In<|.
of
cries
ture
The
silence.
otherwise
t ing
■everything
promo
from
pins
t
safety
giant
to
liners
of
r
expecting you
and
as
me,
matter
a
of
to apMaurice Hudson
of any
V
offering they may conjure
'tip/ V'Vv:>■:.:"•/%". ^'■'\;■'#.'
To answer some of them, a man
would have to be a Houdini, a
course,
.
t
prove
stock
* An
address
National
curities
qualify.
Secretary
or
problems or ante-war problems.
The difference, if anything, will
be
a
multitude of. these
same
problems.
Postwar activity un¬
doubtedly will, and in many cases
has already meant an increase in
Commissioner applications to sell securities.
by
Hudson before the Convention of
the
I can¬
The event will take place at the Penobscot Club.
cede the dinner. Security traders
Association
of
Se¬
Commissioners,
Edgewater Beach Hotel, Chicago, Nov.
.
I
know this is true of my own de¬
partment, and inquiry has shown
the
condition
same
to
exist
in
other states.
What, then, are the
(Continued on page 2609), /
17, 1945.
Cocktails
Cpl. Arthur Reilly; Lt. E. J. Ryall; Lt. John L. Shea, Jr.; Col. Paul D.
Sheeline; Lt. William Skinner; Lt. Paul Sughrue, and Cpl. Robert S.
Weeks, Jr.
WE ARE
Galvin
ACTIVE IN
Mfg. Corp.
Michigan Chemical
\
Hearst Consol. Pub.
Exchanged
£'£/" Thomas Graham,
tional Security Traders
plan for the coming
of the members
Chicago to discuss that organization's
The meeting
year.
was
well attended with 226
Active
Committee will meet in Chicago
gfe Bon<t Traders Club of Chicago
on
will be held the
Chronicle)
William T.
Lambert &
Doherty Rejoin
A; C. AJlyn in Chicago
Requirements. Says Progress of Improvement of the Ex¬
change Has Been Revolutionary and That It Now Occupies an Important
Position in the Capital Market of the Middle West and in Aid in the
.and Listing
Expansion and Financing of Industry.
Membership Has Now Been In¬
Capitalized and Well Organized Firms and Corpo¬
rations Who Do Business With the Public and the Exchange Will Con¬
tinue Its Efforts to Promote Just and Equitable Principles of Trade.
creased to 140 Well
'
Mr .'Chairman,
Members of the National Association" of
of the Convention:
Commissioners, and guests
Securities
,
First, I woujdJike to thank Mr.
-Adams and his Committee for the courage the legitimate elements
of the securities business in your
opportunity of appearing before
States.
Every such situation that
'you today. I have had the privi¬
can be brought before you should
lege of being present at a great be
diagnosed in a manner that
.many conventions of this associa¬
will enable you not only to point
tion: the first, as I recall, was in
out weaknesses but to enable you
1925
or
1926.- I have watched
to offer constructive suggestions
.-them become progressively con¬
for the good of the public who
structive and there is no doubt
that the primary purpose of these
*An address by Mr. Smith be¬
^conventions should be to analyze
fore the Convention of the Na¬
«eyery
organization, ; technique,
tional
Association of Securities
-plan or device used in the pur¬
chase
and
sale
of securities. Commissioners,.Chicago, 111., Nov,
"Your business is to protect your 16, 1945.
(Continued on page 2605)
public and yet you must en¬
1
he
was
and
McGuire
has
Corp.? Prior thereto
with Bear, Stearns & Co.
Stein, Brennan
'
.
" '
Common
Interstate Aircraft
& Engineering Corp.
G. Lambert, A. U. S., and Sgt.
John J. Doherty, A. U. S., both re¬
Railways Corporation
Black Hills Power and Light Company
Central Arizona Light and Power Company
Central Illinois Electric and Gas Company
Empire District Electric Company
Iowa Public Service Company
Lake Superior District Power Company
Michigan Public Service Company
Missouri Utilities Company
Public Service Company of Colorado
Public Ser vice Company of Indiana
Sioux City Gas and Electric Company
Southwestern Public Service Company
^COMPANY
Common
circular
on
\
request;
ADAMS & CO.
231
South La Salle Street
Chicago 4, Illinois
Teletype CG 361
Phone State 0101
FINANCIAL
ADVERTISING
All
In
Plans
Branche
Its
Prepared—Conference Invited
Albert Frank
Incorporated
131
Cedar Street
.
Guenther Law
-
'
'•:
New York 6, N. Y.
Telephone COrtlandt 7-5060
Incorporated
Boston
Boston
Milwaukee
Minneapolis
Chicago Philadelphia San Francisco
Omaha
CONTINUOUS
CHICAGO SOUTH SHORE & SOUTH BEND
Macfadden Publications
THE SECURITIES
OF
National Tool Co.
Central Paper Co., Com.
Northern Paper Mills Co.
Cons. Water Pwr. and Paper Co.
Froedtert Grain & Malt. Co.
Wisconsin Power and
ROBBINS & MYERS
Koehring Co.
Standard Silica Co.
Nekoosa-Edwards Paper Co.
FEDERAL WATER & GAS
Hamilton Mfg. Co.
Light Co.
La Plant Choate Mfg. Co.
James Manufacturing Co.
•
Membbr—Chicago Stock Exchange
PHONES—Daly 5392
.
HOLLEY, DAYTON & GERNON
CG 262
^Members Chicago Stock Exchange
225 EAST MASON ST.'
CHICAGO 3, ILLINOIS
All Wisconsin Issues
105 So. La Salle
INCORPORATED
135 SOUTH LA SALLE STREET
Gisholt Machine
/
DOYLE, O'CONNOR & CO.
.
Mich. Steel Casting Co.
American
New York
'L.,'
;r
Common
,
and
PUBLIC UTILITY COMMON STOCKS
Chicago
.
..
turned from the Armed Forces.
& Co.
.
■;; '
,
R. Hoe & Co., Inc.
♦Recent
r
<
v
'
DEEP ROCK OIL
Telephone: Dearborn 6161
•,
Preferred, Class A and Common
ry
associated
Co., 135 South La
-.*■
American Service Co.
.
association with them of Col. Hen¬
tion Finance
Mr.
St.
Trading Markets
V-
•.
cently been with the' Reconstruc¬
become
&
"*■"'!
•
re¬
Salle
President, Chicago Stock Exchange
*
Jan. 29- The
CHICAGO, ILL—A. C. Allyn
Company,
Inc.,
100
West
Monroe Street, announces the re-
has
with Bache
.Limiting His Remarks to the Chicago Stock Exchange, Mr. Smith De¬
scribes Its Rules and Regulations Regarding Memberships, Trading
•"' '
V,v
^
McGuire With Bache & Co.
McGuire
CG 1234-5
Direct wire to New York
Association, met with the Board of Directors
Club of
—
mmm
Field Bldg., Chicago 3
:■
dinner of
★'
i—
HICKEY & CO.
present.
The National
evening.
'
■
Bankers Bond Co., Inc., President of the Na¬
of the Bond Traders
CHICAGO, ILL.
/ By KENNETH L. SMITH*
Arkansas Western Gas
Randolph 8800
SECURITY TRADERS ASSOCIATION
(Special to ThiS Financial
in
American UtiL Service
.
NATIONAL
same
Stock
Central Soya Co.
Long Bell Lumber
^
winter
The
Tele. CG 573
«
the
atosphere,
and they are
s
so
nial
crystal
clear
air.
They are
infallible.
Tel. STAte 4950
will pre-,
I doubt if our. ge¬
of affiliates are invited. Paul I.
our handsome
Moreland, Moreland & Co., is President, while Claude G. Porter.
President could so qualify. If any¬
Baker, Simonds & Co., is Chairman oi the Party.
•
one
here can so qualify, he has
f
undoubtedly checked his wings BOSTON
SECURITIES TRADERS ASSOCIATION
before coming; in.
j
Being, then,,
The following members of the Boston Securities
mere men, we must wrestle with
Traders Asso¬
ciation are resuming their
activity in the investment business after
the problems to the best of our
: ■'"*
;
\
respective abilities and untie the completing their military service:.
Gordian knot, if possible.
Capt. H. N. Bernard; Cpl. Gerald S. Colby; Sgt. John J.
/ m
D'Arcy1;
Lt. Com, Russell Dean; Cpl. Alvin A.
Dykes; R. B. Elwell; Sgt. John
A Multitude of Problems
:
L. R. French; Lt. Col. James H.
Goddard; Donald S. Goodhue; Lt.
As a matter of iact, it is my Com; Fredk. L.
Harson; Capt. Edward Herlihy; Sgt. Robert U. Ingalls;
personal opinion that the postwar
Major Samuel G, Jarvis; Lt. Nicholas Lamont; S/Sgt. Carl A. Levine;
problems of the commissioner will
not greatly differ from the war PFC. Gilbert Lothrop; Sgt. Wallace Mossop; S/Sgt. J. Russell Potter;
not
pro¬
moters fill the
would be
135 South La Sail# Street
-
MILWAUKEE
Chicago: State 0933
.
St., Chicago 3, 111.
Central 0780
Offices in Wisconsin
(2), WIS.
Teletype MI 488
Eau Claire
-
Fond du Lac
Madison
Teletype: CG 1200
t
* ;
1 *
*'
-*
fi'
-
^
-
LaCrosse
Wausau
POMMPPriAl
TPR
FINANCIAL CHRONICLE
fy
Thursday, November 29, 1945
2580
current Investment
the
in
Corp.
Lamonf Gives $1,500,000 for Harvard
of re¬
survived, the
United States will face the period
Timing,
conversion
of
Two
prominent Mutual Fund sponsors devote
estate and gift taxes.
Keystone Co.'s
their current bul¬
Keynotes presents
showing the substantially lower rates applying on gift taxes
than those on estate taxes and both sponsors point out the advan¬
tages Of gifts made in the form of securities. •
; :
Selected Investments Co. discusses a very interesting advantage
of gifts made during the donor's
to
lifetime.
donee
Through such gifts the
can
Advice
gain experience in the
management
of
donor can learn
money and the
how well his heir
likely to handle the manage¬
ment of the final estate. The donor
is
might learn that it would be ad¬
visable to leave his estate in the
form of a trust so that the heirs
would not have occasion to dissi¬
rr'>:b:-'
pate the principal.
;
■
"/'■//
•
Lord, Abbett's latest Invest¬
In.
American Busi¬
portion of N. Y. U.
economist Lewis Haney's column
ment Bulletin on
Shares,
ness
a
the New York
m
"Journal-Amer¬
ican" is
reprinted. Dr. Haney an¬
swers
the question of a widow
with $2,000 to invest who is con¬
sidering American Tel. & Tel. or
General Motors stock.
She asks:
What should I do?
Here is
,
Dr. Haney's answer!
nothing , better than
well-selected Stocks as a place for
But you must rec¬
risk
(there are no riskless investments
today). Successful stock invest¬
ognize that this means some
require
also
ments
know-
some
usually gained through ex¬
now,
perience.
$2,000 is surplus and
needed, you may
not absolutely
'invest'
if
it
yourself.
need,
you
or
depend heavily
management
successful
would
This
trust.
investment
result in the trust putting
into stocks and
money
your
manag¬
ing it for you."
A PROSPECTUS ON
REQUEST FROM
YOUR INVESTMENT DEALER OR
of
Extent
63 Wall Street
Group,
sponsor
of
Securities, has reprinted a
Cleveland Trust Company Bulle¬
tin entitled "Stock Trading."
In
a
covering letter
on
this
New York 5.N.Y.
•
and
mailing
,i^..great
into'the future
guesses"
likely optimum earnings
to the
as
of companies in the
of
various fields
industry..
■<
The 1945 Reconversion Tax Bill,
eliminating the Excess Profits Tax
j
Jan.*
after
the
that
can
a
1946," establishes at
tax reduction
1,
minimum
least
be
and
expected
gives
endowment
the
opinion it is almost im¬
our
possible
any
to make 1946 forecasts
degree of reliability, in
Throughout his career Mr. La¬
Harvard
alumnus and has been most gen¬
erous
to
Harvard
causes,
Dr.
Conant said.
At the time of the
view of the
present troubled situ¬
arising from labor's de¬
for : greatly ; increased
ation
mands
and
strikes,
wages,
in
strikes
more
with
together
OPA.
threats of
industries,
handicap of
.
....
"On the other
hand,
Harvard
professorship, now held
optimum year for corpo¬
earnings should be
reached
somewhere
between ^ 1947
and
that the
1949.
one
of
."
.
.
'
-
the
'
,
A Bullish
In
Story
'
bulletin
current
a
bullish
it exists
existing 10
'
Co. compares the
&
story for this industry as
that
against
today
ago.
,
most
pearing in the Nov. 2, 1935, "Wall
Street Journal" about broad buy¬
ing developing in this industry as
a
result: of* announcements that
giving con¬
siderable
thought to purchases
and repair of rolling stock. When,
in 1936 and 1937, the
railroads
certain carriers
de¬
of warning signals has
been broad participation
story ap¬
a
were
pendable
spent
always
equipment stock prices
moved up 113% from November,
1935, to February, 1937.
by people
who have no business there.
The Cleveland Trust Company
'
market
stock
the
in
Bulletin
points
that
out
trading
on
the New York Stock Exchange
is
being
in
conducted
stricted volume that the
such re¬
fears be¬
ing expressed that a great specu¬
INDUSTRIAL
develop
boom may
lative
absurd.
STOCKS She res
The
Prospectus upon request from
your investment dealer, or
today/;
the
RESEARCH CORPORATION
120 BROADWAY
;/.K/'
in
on
are
\
the
companies
\
railroad: equipment
of
only
now
November,
62%
above
1935.
They
than
ment
diagram is
annual
the
of
ages
NATIONAL SECURITIES &
equipment
are
those
alone
cars
"Prices
shares
dollars for
million
750
of
passenger
books - of
national income for
from 1875 to date.
made that actual
point is
orders
presented show¬
values of the
round-lot
stock
trading on- the
New York exchange as percent¬
A
ing
Priced at Market
million,
railroad
seem
'
'
$805
average
on
71
our
years
would have to advance more
the
tne
Securities
,
goods
industries
support and there¬
"the
capital
Research ' should tend to
by help to prolong the
high level
general business activity ex¬
pected to result from the deferred
in
demand
the
•field.".
consumer
Street Sales
"has hot been and never can be a
headquarters for un¬
dergraduate library service.
"Ideally planned with graduate
students and faculty in mind, it
has
a
tremendously large cata¬
logue which is unsatisfactory to
the majority of younger students,"
satisfactory
.
<53>h
Prospectus
on
Corp.
and
General Distributors
from
City 5
your
The
Teletype NY-1-2439
'
'
/
'
"
/
:
if,.1
may
be obtained
local investment dealer
.
.
Keystone Company
50
Congress Street, Boston 9, .Mass.
of
much
smaller library, of perhaps
100,000 volumes, made up chiefly
of modern, replaceable books, to
which they can be admitted with¬
out
restriction, and for which a
simplified catalogue is available.:.
"At
cess,
appreciation
tant."
of
.
issues
Things
.
.
the
Securities Series.
of Selections' and
Seemed
Impor-
Vance, Sanders & Co.
—Quarterly
Report on
Boston
Fund datecLOct. 31, 1945.
.
". .
Keystone
Co.—Latest
issue
of
The Keystone
tributors
on
Investor. . . . Dis¬
— Revised
folder
.
Lord, Ab-
Group
StOfcl Shares.
.
.
In
acknowledging the gift,'Dr.
Conant
less well cared for than
other " colleges
many
"I
wrote:
-
sure
am
self and
\
,
/•//-//
I speak both for my¬
the
for
when
whole
r
.
Mr. Lamont:
"Dear
I
university
as- a
profound
express
gratitude for your splendid gift of
$1,500,000, which will enable Har¬
vard
build
to
library
new
a
for
undergraduates. We are already
deeply in your debt for your gen¬
erosity on more than one occasion,
and it is therefore hard for me to
adequately
words to express
find
appreciation of what you have
our
done
Harvard
for
wise
a
as
and
far-seeking donor.
of
"A
library
new
for the use of
undergraduates is indeed one of
the
college's outstanding needs,
but the erection of the building
possible has
significance for the
university as a whole. Once this
undergraduate
library
is comT
pleted, Widener can be used en¬
tirely
for
advanced
scholarly
which your gift makes
wider
even
work, and, together with the De¬
posit Library recently built near
the Business School, should pro¬
expansion during the
vide for
our
coming
decades
without
of
this
central
new
a
century
building.
Therefore, not only future gener¬
ations of Harvard College students
scholars
but
all
in
parts
in the
university—indeed,
entire
benefit .by
world—will
learned
your
i/:;
donation.
"The
Harvard
take steps
the
of
Corporation will
immediately to raise an
$1,500,000 required for
additional
the endowment of the new under¬
graduate library. I am'sure this
gift of yours will provide the ini¬
tial impetus so essential in
any
campaign for funds. The fact that
you have felt this need of Har¬
vard to be of great importance
to stimulate others to
cannot fail
example.
the country. ;
^^j./
"It might be added that, with a
follow
special building for the undergrad¬
uates, the : pressure of space in
Widener will be greatly relieved,
and it should be possible to con¬
tinue that building as a central
library of the university during a
generation to come."
ling
the
our
great ^library in the years
will be sufficient guaranty
Mr.
Lamont's
in'the
given
read
"Referring
to
Your
en¬
plan for hand¬
expansion of
inevitable
need
that
our
and
is
real.
both immediate
/:;
:}■///
"Sincerely yours,
"JAMES B. CONANT."
as
Hanke With Gibson
(Special
;.
,
gift
our
ahead
Tribune"
"Herald
follows:
as
of
letter
your
dorsement of
The
to
Chronicle)
Financial
'
.
CHICAGO,
"Dear Mr. Conant:
my
recent
dis-
ILL.
Hanke has joined
Walter
—
G.
W. C. Gibson &
Co., 231 South La Salle St., after
Abstracts
Current
•—
Fund.;
"■
v.;
giving
-
Dividend^'-
share
payable
Nov.
26,
-V
•
1945,
shareholders of record Nov.
to
CHICAGO,
in
terly
U.
S.
/
have
ILL.
James
—
Michael
withdrawn
Ross, Browne
R.
Cantacu-
as
partners
& Fleming, 919
Michigan Avenue.
Nov. 30.
record
Trusteed
Union
Funds,
Inc.—
With Slayton
quarterly dividend payable Dec.
20, 1945, to stock of record Dec. 10
A
(Special
'
■
.
Bond
Fund
••
' Per Share
$.21
A
Union
Union
Bond Fund C—
Preferred
Union
Common Stock
& Co., Inc.
The Financial
mann,
Harold
B.
_1
Toner, and Everett L.
.03"
been added to the
StO"k Fund_^___
.09
&
Co.,
Inc.
Ditt-
S.
Wright have
staff of Slayton
.1f*
Fund-^-w—
Chronicle) if
Prout, Earl
.20
Bond Fund B
Union
to
CHICAGO, ILL.—Paul S.
follows:
TJnion
and
Sterling
zene
dividend of 350 per share
payable Dec. 15, 1945, to stock of
the
'
Withdraw from Partnership
16.
George Putnam Fund—A quar¬
as
in
service
completing
Navy.
":-06F>h- ;;;
Selective:'.Fund, Inc.
year-end dividend of 200 per
Investors
—A
income
Selected Investments Co.—
"These
or
oj Boston
MANAGEMENT OF
KARL D. PETTIT & CO.
showing
Charts
price
Current
Prospectus
Exchange Place
•
—
various National
.
New York
edition,
"Highlights," containing upinformation on the Na¬
tional Investors Portfolio.
.
.
.
National
Securities & Research
Knickerbocker Shares, Inc.
million
a
.
of
to-date
Request
has
1945 tax information bid AffWiated
Corp.—Cur¬
rent issue of Items; a new
of Investments
"Jt.
2,000,000 books to which it is im¬
possible to grant free access by
undergraduates.
They
need
a
•
Diversification,
.
.
-
bett
'.V'.
Broad
20
'
;
to Professor Keyes
D, Metcalf, Director of the Har¬
vard University Library, the new
library unit has been planned for
the primary benefit of the college
undergraduate.
* '
*
"The present Widener Library
Building," said Professor Metcalf,
goods
Mutual Fund Literature
Supervision and Safe-keeping
"
gift:
According
in
of
for the
the
account of
Tribune"
"Herald
the
in
stated
further
was
are
years," writes
&
t
those
its
"In the next five
It
of
alumnus
distinguished
that year.
as
uates
„
National
Medal
1937."
past
outlook
New York 5, N. Y.
most
was
Alumni
highs—and railroad equip¬
companies expect business
substantially greater than that of
1937
three-quarters »l a
tnree-quarters of
Capital .Good, Industries
century in which the value of the j
_
_
_
.
..
round-lot trading has been at as
Broad Street Sales Corp., in
low a level when compared to our
current Letter presents a cornnational income as it is now.
I prehensive report on the
The
Bulletin
concludes
that for capital goods industries.
The
various problems and potentiali¬
"there is slight basis for worrying
ties are discussed and psychologi¬
about the danger of a real specu¬
cal factors affecting these indus¬
lative uoom in tne stock market."
tries are presented.
V;
Optimum Earnings
The conclusion is reached that
in
Lamont
present without stack ac¬
with a catalogue prepared
for research workers, and with a
building that was not planned for
their needs, Harvard undergrad¬
from today's levels to reach
31%
have been only four years
There
the
the
the
ries of New York Stocks, Hugh
Long
awarded
Mr.
Equipment Industry Se¬
W.
Railroad
1943
Harvard
v'.
on
Pro¬
by
fessor Sumner H. Slichter. In
-
..
celebration
tercentenary
he gave the university $500,000 to
establish the : Lamont
university
,
believe
we
exhilaration and stimulus that the
college gave to my undergraduate
years is as'vivid today as it was
a half-century ago/"
/./:/
"Sincerely yours,
//
"THOMAS W. LAMONT.''ii
mont has been active as a
key
the
of
the; new library.
The building will be designed by
Coolidge,
Shepley,
Bulfirich
&
Abbott, architects, said the ad¬
vices from which we quote, which
also stated:,
'<*
amount of pre-tax
earnings that can be carried into
net.'^':v;-":-';'"^v-V'v;'
"In
making
in
for the upkeep and
000 to provide
reasonably sound basis for cal¬
culating
Distributors
dealers,
to
that
states
there
And
Expression
Mr. Conant
thk3>
—————
—-———-—
gift, the banker at the same time cussions with you and Mr. K. D.
recalling "the sense of exhilaration Metcalf, the distinguished libra¬
and
stimulus"
that
the
college rian of- Harvard College, I have
this day delivered to your treas¬
gave to him in his undergraduate
years.
The New, York "Herald urer securities with a marketable
Tribune," in special advices from value of $1,500,000. This gift is
Cambridge Nov. 20, referring to to enable Harvard to build the
library for undergraduates that,
Mr; Lamont's gift, stated that in
announcing their vote of accept¬ you tell me, is one of the colleges
ance
the'
Harvard
corporation outstanding needs,;
stated that immediate steps would
"My own gratitude to Harvard
be taken to raise another $1,500,is unbounded, and the sense > of
Lamont
Mr.
by
make "educated
to
The bulletin quotes
Group
Distributors Group, Incorporated
in
result
temptation to peer
years
Speculation
Distributors
V
& Co. Inc., is a member of the Harvard class of 1892..
of his unbounded gratitude to Harvard was conveyed to
assume
But
.
,
.
stock of some high-
ter buy the
grade
/
reflect
optimistic markets in
securities.
this money, you had bet¬
upon
to
will
activity
and
strong
gift of $1,500,000 by Thomas W. Lamont of New York, to
build an undergraduate library for Harvard College was announced
at Cambridge, Mass., on Nov. 20 by Dr.; James R. Conant, President
of the College. Mr. Lamont, Chairman of the Board of J. P. Morgan
rate
the
If
this
with
i
:M "Iknow
surplus funds.
it
•
,
to
reasonable
is
that
tables
v,
on
goes
Library
A
peacetime activity in
survey
that
letins
pangs
are
.
.
history."
The
Gifts and Taxes.
.
greatest
its
the
"once
.1
Volume
162
Number
4442
THE COMMERCIAL'
FINANCIAL CHRONICLE
&
2581
Estimated
Write^ Gives
in the Period of 1947-1949
'
{
t
1
'
1
|
'
!,(
S.
;
?
^
Name of
.!!»•
Drugs &
have
estimated
the
period
markets
of
in
there is
greatest
tinue
securities,
perience
tation to peer into this
future
and
make
*to"
"educated
several
Different
great temp¬
a
for
•
a<?
earnings
Amer.
Pfizer
best
will
doubtless
results
in
likely optimum
earnings of companies
31%
5.25
42%
4.00
26%
3.25
V:
.
...
,
.
,
.
Emerson
Electric
tural,
some
future
yardstick for the in¬
Bradshaw
Editor
"Investment
■'
i
vestor
Timing"
is
of
nificance
such
thr*
sig¬
th0»e
should be real value in the
procedure.
deed,
such
some
is
process
In¬
practical
a
necessity in attempting to decide on rela¬
Values and prospects in the security
tive
field.
-V.y
.
'
•/';
.
V
.
The future remains the
future, and it is
through its curtain.
try to see
imponderable in the
necessary to
But
one
of such
way
"guesstimating" has been removed with
the passage of the 1945 Reconversion Tax
Bill eliminating the Excess Profits Tax
after Jan. 1. 1946. The new law establishes
least
at
the
be
can
sound
minimum
tax
reduction
a
reasonably
calculating the amount of
earnings that can be carried into
net.
f Among the factors included
sales
in
or
gross
relation
the
are
potential
volume, considered
revenue
to
normal
percentage
of
reduced
and
Co.__
48% ;
Co.__
41
duction
methods,
allied
other
new
lines, and
numerous
with
historical
enables
ing
these
background
to arrive at
us
the
considerations
judgment of
a
as
together
a
measure
reflect¬
consensus
our
Economics
and
•.".%!>- v?
The
"•
-
.
huge postwar backlog of
and services in this
v.;
Per Share
.
Current
/
Name
of
of
years
However,
complete
have attempted
we
reasonable estimate which
value
to
the
investors
to
produce
should prove
as
a
21, 1945 issue of "Investment
Timing" published by the Economics &
Investment Departmentof the National
Research
Corporation/ New
;■ '•'//"
,//
x'/xy
/i//'/ //
"'V;'' x'V.
■:"/
Lockheed Aircraft Corp.
Martin (Glenn L.) Co._
Solar Aircraft Co
34
%
4.00
391/2
4.25
18%
5.50
American Airlines, Inc._
84%
5.25
Eastern Air
96
6.50
:
Air
Transport—
Lines, Inc..
Northwest Airlines, Inc.
49%:
3.00
44%
Penn-Central
3.00
Airlines
Corp.
Trans,- &
of
Auto
Western
Aulo-Lite
Owens
Thompson
_—
-
60
6.00
Confectionery-
Inc.
Inc..
Co.—
Distillers
Corp.
Amer.
—
Crane
S.
S.
_j__________j__
Co,
S.
11.00
66%
5.25
52%
Corp.—_
ery
7.00
22%
,
3.00
■
33%
3.00
Pdraffine Cos., Inc.__f_
79
Sherwin Williams Co.__
140
11.00
U.
103
8.00
Reduction
Co., Inc.
Chemical
&
v
6.00
Commercial
3.50
50
Dye
Corp
/;
66%
4.50
35%
_______
Wilson & Co
•
3.25
19%
2.00
47%
Kennecott Copper Corp.
4.25
Corp.
45%
/' 17%
85%
8.00
Republic Steel Corp.—_
27%
5.00
Rustless
Iron
&
Steel
Corp.
Corp.,—
Wheeling Steel Corp.—
Youngstown
Sheet
&
81%
9.00
44%
6.00
64
9.00
45
4.50
63%
4.50
38
5.00
Co.—„„„
■
:/>•
35%
Tires
St.
523/4
3.50
4.00
39
Corp.
'
Tobacco
Ct)._
:';S
24%/:'
3.75
Philip Morris
Ltd., Inc.
Co.
v'
"B"
&
99%
7.00
r,
5.75
69
—_
Utilities:
3.50
American
31%;;
3.00
29
Corp.______
17.00
Co.,
39
Underwood
;
89%
American Gas & Electric
2.75
Co.
Register
Remington Rand, Inc.-_
Royal Typewriter Co.,
;
_____________
2.75
31%
Cash
9.50
9.00
Liggett & Myers Tobacco
Equipment:
Corp
8.50
663/4
4.00
Addressograph-Multigraph
National
70
61%
American
Pictures,
________________
5.25
Tobacco:
5.00
443/4
39
1
Bros.
'--h
40%
U. S. Rubber Co
3.00
9.00
;
Rubber
&
Co
13.00
:
4.00
69%
Tire
Co
(B. F.) Co—
Goodyear Tire & Rubber
31%
3.50
<
Goodrich
219
4.50
32%
Co.
Motion Pictures &
Film
Rubber:
&
General
^
5.75
45
Firestone Tire & Rubber
•
Miscellaneous:
42
4.75
61%:;
Manufacturers, Inc.—
3.00
•
4.50
493/4
Shirt Co-
26%
Joseph Lead Co
3.75
61%
United Merchants &
2.50
v
Corp.——
Corp.
Bond Stores, Inc.
Burlington Mills Corp..
Celanese Corp. of Amer.
Cluet, Peabody & Co. of
Canada, Ltd
Industrial Rayon CorpKayser (Julius ) & Co._
3.50
Co
3.75
26%
U. S. Steel
39%
Kodak
6.50 '
National Steel Corp
Phelps Dodge Corp.—__
Eastman
8.50
Laughlin Steel
Manhattan
of
Plywood Corp.—__
2.50
"
Adams-Millis
9.00
49
—J,
&
Textiles:
Beatrice Creamery Co._
National Dairy Products
&
-
■
>."■
73%'
Co
7.00
Water
Electric
Arkansas
Co
"
Natural
23%
•
3.25
x
2.50
Gas
0.35
6%
—
Commonwealth
-
Works
Cities Service Co._____l
Oils:
29
:
v k
4.50
Edison
Solve
n
12.00
86
7.50
ts
T.
:
33%
18
29%
Co.
3.00
'
Consolidated Edison Co.
4.00
Detroit Edison Co
2.30
34
2.25
25%
Republics
Corp.
Lion Oil
186
Corp.
fractories Co———27%
Steel Co.——Toi%
Inland
4.75
2.25
America
3.50
,
—
Corp.
Co._.
American Viscose
,'/./
14
■Corp.'
Gamble
Steel & Iron:
Tube
Meats & Dairy Products:
5:
American
Atlas Powder Co.
_____
13.00
&
1
8.00
3.75
3.75
4.25
&
6.00
Allied
2.75
32%/.
_
5.00
65
Minpeapolis- Honeywell
.Reg. Corp.
National Gypsum. Co.__
15.00
38
2.50
18%
Machin¬
V/orthington
Pump
Machinery Co
3.00
64%
Jones
37%
Hoffman
Warner
3.75
Gypsum Co.
3.75
Cooper-Bessemer Corp/ 24%
%/ 3.00
Dresser Industries, Inc..
30%
/
5.00
'62
11.00
Corp
10.00
64%
Fairbanks, Morse & Co._
lngersoll Rand Co._____ 128%;; ;V, 11.00
U.
9.00
American Rolling Mill Co. 27 %
Bethlehem Steel Corp.96
Harbison - WalkerRe-.
&
______
6.00
8.50:
73%
Procter
Ex-Cell-O
Office
8.00
*
Inc.
74
64%
24%
Studebaker ,Corp.
29 »
White Motor Co.39V2
Baking & MillingCo
t Machine
Inc.
Glidden Co
8.00
373/4
Foundrj- Co
3.50
67%
Biscuit
L
4.50
-
Soaps & Vegetable Oils:
5.50
•
92%
Bucyrus-Erie Co.
5.00*
58%
S.
5.75
45%
_j/—_
American
31%
Masonite Corp. _U_
Air
Baking Co.
—
40%
____
/
Stores
Penney (J. C.) Co.— 140
Sears, Roebuck & Co.—
373%
American Chain & Cable
29%
dtj^1" Elevator Co.
4.00
Harvester
'
Seating Co._
Corp.
__________
2.00
y2
3.50
383/4
Corp.—
Brothers, Inc4_/ ,43%
Montgomery Ward & Co.,
Machinery—Industrial
Co.
—
68
Co.—
Co.
3.50
________
Co.—
3.00
*
Gimbel
4.00
42
V
;
& Mail Order:
Allied
3.00
1.50
Jofrps-Manville Corp.— 145
132
58%
43
17%
Chemicals—
_u.__.____
3.50
173/g
Loew's, Inc.
Paramount Pictures, Inc.
Twentieth Century-Fox
9.00
Ccip...
Mack Trucks, Inc.——
Nash Kelvinator Corp..
National
7.50
2.50
6.50
24%
"
Amusements:
17%
Motors
Continental
9.50
79
64%
63%
50%
Co.!
Retail Trade—Dept.
6.00
U. S.
69
Raidator &
Carrier
i
47%
3.50
9.00
4.00
Sea¬
-
Corp.
6.00
Bearing
Fruehauf Trailer Co._—
General
4.00
178
grams, Ltd
National Distillers Prod¬
5.00
6.00
6.00
Reynolds Metals Co
Wrigley (Wm.) Ji\ Co.
80%
Brewing & Distilling—
51 y4
;
43%
Shoes:
Molybdenum
43%
Cocoa-Cola
52%
Axle
—
uorp.
&
4.75
8.50
Amer.
'
3.00
74
•
5.00
Metals—Non -Ferrous:
7.50
6.00
68
Automobiles—
Chrysler
/
144
Corp.
-
Timken-Roller
-
in Optimum"
Post-war Year
of
Packing Co. 133
Canada-Dry Ginger Ale,
ucts
Ford
—
Prod.,
——
Co.
Co..
_
Timken-Detroit
Co.
Per Share
Building—
Corp..
——
Glass Co.
Co.
American Chicle Co.
Parts—
Aviation
-
Estimated
Earnings
Beech-Nut
Air,
Corp./—_—_——L/_
Borg-Warner Corp..
Biiggs Mfg. Co
Budd (E. G.) Mfg. Co.Libbey.
.
36
Beverages
Bohn Aluminum & Brass
Electric
;
■
/
Price
Company
Biscuit
America
5.00
Bendix
■
>
Current
Name
$3.75
11.00
1.50
71
Armour & Co.
■;/;■/ xx/
./■
V"'- ::r:
Post-war Year
86
24%
Woolworth (F. W.)
4.25
% //
74'
Nov.
&
Shoe
Deere &
operation.
guide to
relative values and prospects of the vari¬
ous
types of securities—Reprinted from
some
United
Inc.
Retail Trade—Variety:
«
International
prediction. Equally impossible at this time
v
Boeing Airplane Co.—_ ; 26%
Douglas
Aircraft
Co.,
10.00
Co., Inc..
Kroger Grocery & Bak¬
ing Co
Machinery—Agricultui al:
country
level for America will last is impossible of
in Optimum"
Price
Company-
Aircraft—
8.00
56%
Green (H. L.)
4.50
•
International Shoe Co-
demand
ushers
in
an
era
of
prosperity
which
should, begin next year and reach its op¬
timum probably between 1947 and 1949,
How long this prosperity at a new high
Estimated'.';
/" //.:'//I/.':' <'xv > Earnings-:
59%
r
Endicott, Johnson Corp.
'
/'/•/•
4.00
Railroad
Southern Pacific Co.___
4.50
69%
Corp.
Leather &
-.r-Vv-
goods
York City.
:M'". '•
11
Artloom
V Conclusion
Securities
/;/ .'/ ,/v
6.00
Co.—_
Butler Brothers————
52
Brown
Investment Department staff, composed of
•"
5.00
30%
1.75
Engineers Public Service
Pure Oil Co.—
22%
4.50
Phillips Petroleum Co.Skelly Oil Co.——
56
5.00
56%
6.75
31%
3.75
Pacific Gas & Electric--*
45%
2.75
26
2.00
36%
2.60
Co.
1.75
Standard Oil of Indiana
43
3.50
Public Service of N. J._
3.00
Hercules Powder Co.___
115
9.50
Standard Oil of N. J._
—
673/4
5.25
Southern California Edi-
4.50
Monsanto
111%
7.00
Standard Oil of Ohio—
25%
3.50
99%
76%
7.50
'
Chemical
20
Co.
Union Carbide & Carbon
14
1.75
33
2.75
Corp.United
Carbon
Co
Co., Ltd.
x'U)
5.50
*The year in which business is expected
1947
and
1949.
,
&
Southern Railway Co-
2.25
V
Corp.___
considered.
specialists in the several fields of industry.
,
12.00
45
6,50
35% v /
;
Simmons Co.
of
...Using all
58
v
38%
1949, and this is the figure that
we estimate in the table, which also
gives
the current market prices of the stocks
a
aspects.
1093/4
57%
Topeka
Pennsylvania
1.00
General
and
postwar
specific company, in¬
3.00
2.75
—
road
'
costs,
demand, labor force, raw material
competitive position, improved pro¬
22%
New York Central Rail¬
4.75
'
16
impossible to gauge at present.
[ Standard Brands, Inc.—
On the other hand, we believe that the I Stokeley-Van Camp, Inc.
optimum
year
for
corporate
earnings [
Household Furnishings
should
be
reached
somewhere
between Armstrong Cork Co.—
dicated
a
37
is
1947
3.25;
33%
Co.
5.00
Foods
40%
Co.,
Chesapeake & Ohio Ry.
2.50
Electric
Libby, McNeill & Libby_
Penick & Ford, Ltd., Inc.
the
Car
Santa Fe Ry. Co.—
3.00
-
Food Products:
is any exact appraisal of the earnings per
share of leading corporations in the first
operating profit of
■:
Electric
California Packing Corp,
Corn Products Ref. Co._
production, and will con'tinue
the slowing-down process to a degree that
for
expected, and gives
reconversion
Steel
——
Atchison,
'
of
5.00
4.00
Foun¬
________
—
volume
that
basis for
pre-tax
of
rate
51
36%
Co
3.00
23 Vs
__
Philco Corp.
tries, together with the handicap of OPA
—all of which have already slowed down
the
32%
General
mands for greatly increased wages, strikes
and threats of more strikes in key indus¬
5.00
3.00
Westinghouse Air Brake
4.50
McGraw
.
Inc.
>
Mfg.
Co.-
4.50
47%
Railroads:
48%
In our opinion it is almost impossible to Radio
Corp. of America
While
obviously : make 1946 forecasts with any degree of
Square D Co.
such
estimates
must ireliabUity;-in view of the! present-trou^
Westinghouse Electric
be essentially conjee- .1 ble* situation arising
from labor's de¬
Corp.
H.
Pressed
3.50
,
Steel
dries _—i
£>hart
Cutler-Hammer, Inc.___
industry
Leslie
31%
Co.
more
...
Inc.
ruexiDle
59%
25
—
American
Electrical Products—
wicafeo
6.50
7.00
Locomotive
Co.
2.00
Black & Decker Mfg. Co.
Later on the passage of. time will make
acJuratev
American
2.50
393/4
(Chas.) & Co.___
Drug,
3.75
43%
American Brake Shoe Co.
9.00
233/4 '
different
possible to render such estimates
i
101
United
ex-
Cup Co.—„_
International Paper Co.
Kimberly-Clark Corp.—
Lily Tulip Cup Corp
Union Bag & Paper Corp.
Railroad Equipment:
Products
___;
_
^ears> although some particular year may
prove the best for the majority,
!..
in the various fields of
5,50
■-
Sharpe & Dohme, Inc._
Sterling Drug, Inc._____
-
the
to
7,50
75%
Parke, Davis & Co
years.
companies
tlieir
per
4.25
40%
Dixie
Post-war Year
46%
4.00
132
in Optimum"
Price
7.75
Cosmetics—
Home
Corp.
share
peace-time activity in likely to be made in a theoretical opti¬
mum
year
is given below. This is not
its history.
•/■„// /■•;
likely to be 1946, but quite likely to be
As it is sensible to
either 1947 or 1948 or possibly 1949. It is
assume
that
this
the year in which business may be ex¬
should be reflected in
strong and optimistic pected to be at a flood tide that may con¬
Lilc;
..
Company
47%
Owens-Illinois Glass Co.
...
Name of
Paper:
Container Corp. of Amer.
106
Co
Hazel-Atlas Glass Co.
the next five years, once the
pangs
reconversion—not merely the physical'ln the final analYsis> the estimates lire a
brsr»A
v...
task, but OPA snags and labor difficulties matter of judgment.
A table of zoo companies on which we
—are survived the United
States will face
i
Can
Inc.
.
Current
51%
American
Continental Can Co., Inc.
Crown Cork & Seal Co.,
In
j
Post-war Year
Company
Containers—
of
_—.
Price
Per Share
in Optimum"
4
J
Earnings
Per Share
Current
Tabulation of Highest Expected Per Share Earnings
a
Estimated
Earnings
Earnings on 200
Stocks During Early Post-War Period
_____
\
4
«
to be at flood tide, probably between
:
2582
Thursday, November 29, 19451
The commercial & financial chronicle
,
of services
standard
all
in
Canada Cancels y
Wright to Head A A
province the advantages which its
resources give to it nor the free¬
dom to establish its own. stand¬
New Tariff Rates
Phila. Bond Club
ards; (4)'That the Dominion Pro¬
vincial
financial
arrangements
though reaffirming ite
while
inces
By BRUCE WILLIAMS
another important milestone in her his¬
Canada is about to pass
by opposition on the part of certain provinces,
vincial
Conference on Reconstruction is now preparing to consider
This
conference
seeks to im-
cisions
——
—
Canadian Fathers of Confedera¬
the
of
intention
plement' the
<?>——
tion
provide
to
with a;
Canada
CANADIAN SECURITIES
preted
in
such
cisions
of
the
way
a
~by
it is
view,
above
narrow
provincialism and will arrange for
the belated modernization oj the
Canadian constitution. ■
"."'V
de¬
Council, ;•
British Privy
the
and
:
that the provincial powers
ernment.As
have
supply were even more marked.
The supply. ofhigh grades £ was
lamentably insufficient to satisfy,
Federal Gov¬
the expense of the
•
^
V
>
\
STOCKS
BONDS
1936 financial
minion
classes of
all
Canadian external
in the new budget only a
month ago, the Associated Press
reported from Ottawa, adding that
the action was taken to placate the
Government's supporters from the
posed
•':
executed
New
Exchanges, or at net
*
'. \.'
1
and
ceptional financial management—
the entire country rocked under
the blow jand the Federal Govern¬
ment was virtually powerless to
on
Montreal and Toronto
York Prices, r
assistance—Manitoba
outside
Direct Private Wires to
Buffalo,
Toronto and Montreal
>; *■
act.
This
:■
crisis
-
•'
;■
led
to
ment in 1937 of the
thq appoint¬
Rowell-Sirois
the ; Dominion-Pro¬
of
vincial Conference now in session.
Dominion Securities
1
agree
Govern¬
of personal
income taxes, corporation taxes
Teletype NY 1-702-3
and
suctfessitfn
duties.
the
Moore &
r
ernment
purposes
Provincial
nual
sum
to
pay
Government
nounce
Gov-each
received
L
CANADIAN BONDS
tion
Agreements.
.
:,
.
•
ton
H
J
-
as
representatives,
sales
All
fice.
with
the follow¬
an¬
H.
as
and
assistant in the
four
previously were
Bennett, Smith &
Crouse,
Company.
(1) The Taxation system to
be redesigned to encourage. and
not restrict private enterprise, in¬
vestment
and ■ employment; • (2)
That the; Dominion shduld have
product came almost
this
the
war
resources
■
„
Forms Donald Young
Donald
to finance
Young &
deficits with
CORPORATION
it,
and
ments
unquestionable cred¬
the Provincial. Govern¬
be
revenues;
of
assured
more
Canadian
a
c
t
■
e
e
d?"v-/J
Pj \
of Merrill1-
/
Lynch, Pierce J
Fenner
8c.'
•
A
5v)directed against
United States. Before the war
from the United States,
'A
com-",
e e,
Colwell, part--,:/; ;
the!
r e s i-!
Accord-1
;
Bean e,'.•■
The tariff was
the
c
u
ner
which continued:
1945
dent.
wholly
ing
but during
plant ex¬
P
,..
to,; Club
tradition nom-1
ination is
panded to produce the item on a
large scale. 1 The protective tariff
tan*.| J
tamount
apply to the" British. Em¬
\
%' A:-AAA
i
In announcing the budget- Oct.
12, Finance Minister J. L. Ilsley
pire. 1.;
Wright,
D.
S.
„
to'
t
election. :
did not
Other nom-
Jr.
inations
nounced
an-!
the
by
GapitaiMovement
policy and to efforts tb^ liberalize
expand world trade."
,
emphasize," he con¬
tinued, "that the Government had
not the slightest thought that a
xiew policy was being adopted
or
that
"The Government is more con¬
attitude
its
of
Exchange Place, New York City,
to
stable
(3) Adequate minimum
engage
"
ness.
in the securities busi¬
■,
'
,
'
misinterpretation
than
otherwise
given substantial ground for be¬
lieving that the prospects of early
international action for reduction
other
and
trade
are
to
has
repeat-
the view
that in
Government
expressed
interdependent world of today
prosperity is indivisible, and that
prosperity of any nation can¬
be maintained without a
and expansion of in¬
not long
restoration
.
The Finance
■'
,
\
'
,
Minister said that
the new tariff measures were
be¬
cancelled£because "it |s ihiportant that no action should be
ing
taken
which
can
either at home
A. E. AMES & CO.
ing
tin," released today publication is
resumed of detailed information |
t
capital movements between the
United States and foreign coun-
on
tries, the short-term foreign assets
and liabilities of reporting banks
;
.
United States,
and brokers in the
position in foreign curren- •
reporting banks and bank- '
Publication
of
this
infor¬
and the
cies of
ers.
was
discontinued
as
of
^
the
the
-
WASHINGTON, Nov. 29.—With * ;the November "Treasury Bulle;
mation
proved.
"The
barriers
considerably im¬
ternational commerce."
CANADIAN STOCKS
it
might have been because within
the; last few days we hav4 been
tariffs
Information Resumed
Treasury Department Again Issues
Data Which Has Been Withheld
inter¬ Since
January, 1942.
as
cerned with this
Young will form Donald
Co. with '-offices at 40
be ;
would
anything more than what
in fact it was, a minor modifica¬
tion of the tariff structure.;,
of
&Co.
to
action
the
preted
.
the financial
a
.
the Associated Press,
cording to
world
?
MUNICIPAL
Herve
Municipal Bond Department. Mr.
Pilkinton will be in charge of the
Flint office fop the firm, while
the others will be in the main of¬
ing:
GOVERNMENT
Building,
Beattie,
Luella M. Smith
ing the war under the Dominion-Provincial Wartime Taxa¬
Other objectives are
PROVINCIAL
dur-
temporarily
D.
Hutchinson and Donald E. Pilkin-
the minimum amount
of which would be higher than
that
Co.,, investment bankers
Penobscot
the association with them
Harold
of
an¬
an
the
in
In com¬
Dominion
around
centered
protective tariff of 20% placed on
a certain type of steel tubing, acr
"I wish
MICH.—McDonald-
DETROIT,
-
pensation
issue
i tt
Chauncey
and
Adds Four to Staff
ment the imposition
Place, New York 5, N.Y<
Bell System
the
pefmahently- to—
that
proposing
leave to the Dominion
4
40 Exchange
is
nating
m
the v
nomi-
.
McDonald-Moore Co-
Dominion Gov¬
the
In brief,
provinces
grpokatioti
■
■
ernment
Club's
*
.
Royal Commission whose subse¬
quent recommendations virtually
constitute the basis of the dis¬
cussions
in 1946 by
s
The
'
of
Philadelphia
West.
.
of the
Bond Club
.
.
British Columbia survived by ex¬
and internal bonds.
Stock orders
but -not
finances
to
power
■■■■•:;■■■■■■: *
committee are:j
left to Saskatchewan^ to provide
had stated that there were no im¬ Vice-President, William K. Bar-4,
the greatest activity.
V", portant tariff changes, yUpon dis¬ clay, Jr., >Stein Bros. & Boyce;
Internals continued strong and
Secretary; John C. Bogah, Jri^covery of the steel tubing item the
free funds consequently remained
Government was brought under Sheridan, Bogan Co., and Treas-.
at the peak level of 9%%.- .In the
immediate attack by two of its uref, ? Edgar
J. Loftus, " Elkins, ,
absence of adequate supply of ex¬
Morris & Co.
:i
*' ""
leading newspaper supporters
ternal issues the brunt of the re¬
For three places on the Board .«
by members of the Government
placement demand arising from Liberal Party from the West, who of Governors the following have ;
recent redemptions falls increas¬
charged that the-tax was a. re¬ been nominated: Chauncey P. Col- '
ingly
the internal Section of version to a protective tariff "pol¬ well for term expiring in 1946;
the market.
> "
icy in conflict with the Govern¬ Willard S. Boothby, E. H. Rollins
With regard to future prospects
ment's avowed principle of favor¬ & Sons, and Philip L. Lee, Wurts,'r
everything points to a continuance
Dulles & Co. for terms expiring
ing free trade.
- ■
of the, recent pattern of strength
Today Mr. Ilsley declared that in' 1948.
with small turnover in the ex¬
The annual meeting of the Club
"certain"
of - the
tariff changes
ternals and increasing interest In which increased duties "have been will be held Dec. 14 at the Racquet s} .;:
internals.A;/ A
Widely interpreted as represent¬ CIub. |
ing a change in the Government's
general, approach to commercial
crisis, and the Do¬
the
were
bertas were also scarce and it was
take appropriate
specific action. Alberta defaulted
—Saskatchewan
was
saved & by
the
MARKETS maintained in
had
prices
tle
avert the
the finances to
not
higher
registered in all sections with lit¬
turnover.
Montreals and Al-
found
that the Provinces had the power
but
and
demand,
result in the depression-pe¬
a
riod of the early 30s it was
the market for the
to
past week, recent characteristics
of strong demand but declining
strengthened at
been constantly
'
Turning
the office of President
for
tariff rates based on changes pro¬
.
courts
Canadian
Wood
all new
announced cancellation of
Wright, Jr., partner of Wright;
& Co., has been nominated
D.
support of
principles on Nov. 12,
trade
free
PHILADELPHIA, PA.—Spencer
Government, al¬
Canadian
The
now
interest
national
inter¬
been
objectives
laudable
these
to - be hoped
that the conference will place the
in
which determines the Canadian
have
•;
With
5
:
c e n
constitution,
to
minion.
t r a 1 government.
How ever,
provisions
of
the
British
North
America
Act,
strong
make responsible;
de¬
independently of the Do¬
freedom
'
'
momentous decisions.
any
strengthen, not weaken, the fed¬
eral system, and give the provin¬
cial
governments
a
dependable
financial basis and assurance; of
wartime emergency and to a lesser degree
the Dominion-Pro¬
tory. .Long delayed by the
prov¬
to
denying
pot
or
be
interpreted
January, 1942, for reasons of na¬
tional security:
,
information/for the
period
January,
1942
through
Aoril, 1945,., and details for May,
1945, appear in the new bulletin.
A supplement to this issue of the
"Treasury Bulletin" is being preSummary
•
.
provide addi- i
tional information for the Janu- 7i i
ary, 1942-April 1945, period, and ,
which will
pared
which will be available upon re-
quest.'r/-;
abroad as show¬
anything but the strongest
for the principles; upon
.,
Banks,, bankers, and securities :
and dealers are the "re- .
.
brokers
porters" of these data.
They re- •
negotiations port with respect to—
'
"A i
hope and expect, sOon be
(1) Their foreign transactions * '
based.": A A :*;A
££-£• AA:- in securities on their own account
A- It is learned on reliable author¬
and on behalf of other institutions i
support
INCORPORATED
which ; international
will,
TWO WALL STREET
TWs
NEW YORK 5,
N. Y.
NY-1-1045
RECTOR 2-7231
Wood, Gundy & Co.
^
Incorporated
14 Wall
Street, New York 5
we
List
Available
the protective
'•-1-
of
Companies
terially
rates of
Tax,
benefit
Excess
January
61 Broadway, New York
6, N. Y.
WHitehall 4-8980
private wires
and
v*.-
...
•
to
Toronto
v-£
item.
and
individuals, and
their
in
lems
Income
Securities"
noon course
to be
Tax
Taylor, Deale
&
Company
64 wall street, new york 5
WHitehall 3 -1874
York
New
nance,
will
at the age
be
the
late after¬
given by Charles
Institute
of
at
Nov. 29.
dealers and investors in
will
•
or
in accounts
;' -v-
.
?nake up
of 82.
Until hip retire- 1
ment because of ill
months
ago,
health several
he was President
of
Co., 115 Broadway, New ?
City, and had maintained A
his
directorship in the Eastern
Rolling
Mill
Company,
Glad- *
Aldred &
York
the stu¬
Baltimore.
a
Mr. Aldred had
.leading role in the
of
:
*
played
development
hydroelectric power in Quebec,
on the boards of many
and served
Montreal
dent body.
;
Fi¬ ding's; Inc., .the United Shipyards
and the Industrial Corporation of
City, beginning Thursday,
securities
accounts
/
in ;
John Aldred Dead
20 Broad Street, New York
Brokers,
own
liabilities
and
John E. Aldred died at his home
Prob¬
Meyer, C. P. A. and attorney,
the
assets
,
.w-o*AjA':;
.
Problems in Securities
"Year-End
.
(2) The outstanding short-term
foreign
with them. '
I———wm
;
subject of a four-session
1946.
Members Toronto Stock Exchange
t
v.
Profits
1,
CHARLES KING & CO.
Direct
:
who should ma¬
under
reduced
Canadian
effective
■»*
Buy Victory Bonds
STOCKS
L.
Year-End Income Tax
..i. "
CANADIAN
Minister AW.
King, who-had been
abroad since -before the budget
was announced, was pot aware of
Mackenzie
.
'f
Prime
ity- that
power
companies.
-
,
Volume
162'" Number 4442
THE COMMERCIAL
& FINANCIAL CHRONICLE
Business and Atomic Energy
By
ROGER
W.
BABSON
LE ROI COMPANY
An
important manufacturer of portable air-compressors,
stationary
-
and gasoline engines, and
gas
i engine-driven generator sets«
!
SOLE CAPITALIZATION 120,000 SHARES ($10. PAR)
At
market
current
characteristics
working
that
capital,
levels
appeal
for
discriminating
to
Selling;;,for -approximately; eight
post
capital
S17.62
of
prices of
prospects
war
stocks
a
share,
An
interesting
the
security
of
buyers
Le Rol
seeking
tax
current
tax
would
relief
to
be
considerably higher
a
of
conservative
appear
January
with
and
1946,
1,
attractive
outstandingly
appraisal
relationship between
;.''
which
earnings,
beginning
appear
have those
to
appears
satisfactory
a
"]
times
the
COMMON STOCK
Company
in
this
V
earnings.
view
in
of
working
net
market
where
,
EPT ELIMINATION TO LIFT EARNINGS
.
Stock .had
and
this' stbck
generally reflect
.
nwwwwww
Stock
Common
earnings and. market price.
estimated
$
tiiuitl
the
equities
inference, may
law
drawn
be
effectiver January
from the
lr. 1946- been
effect
in
on
the
per
share
of Le feoi
past
earnings
effect. in
three
years.
Common
'
1
'
Earned
As
Per
'
Share
BANKERS
Other
Exchange and c.v&v
Leading Exchanges
ing
earned
-
DISTRIBUTORS
recent
a
peace
sales
UNDERWRITERS AND
time
per
of
interview
should,
share
on
Private Wires
•
•
9.12
'
S 4.91
.
,
18.01
21.10
.
..
•
official
an
an
$10,403,560
war
earnings
of the
Company stated that profits after taxes
annual sales volume
years.
of around $10,000,000, be
It is interesting to note that in
of $9rl2-would
have
resulted under
the
in the first year dur¬
of the
amount
the first war year,
that on
well in
1942,
Federal
tax
excess
effective
law
in
1946.
SALES, EARNINGS, DIVIDENDS
BONDS, STOCKS, COMMODITIES
Home Office Atlanta
$ 4.21
(1946 rate)
^
1944
1943
$4.13
OF
Yr. Ended
BROKERS OF
tax
during the
INVESTMENT SECURITIES
;
Year to September 30
1942
i; '
:
In
Members New York Stock
/
:
Reported
Adjusted for 38%
INVESTMENT
•
Net Sales
Federal
Profits before
: Taxes
Sept. 30
and
Contingencies
Net Income
and State
Taxes
Earned
After
Inc. Taxes
Dividends
"•» E. P. T.
Paid
Per
•
Per Shai
Share
Phone LD-159
(a)
(b)
.(C)
Before
Before
for contingencies of $300,000 in
provision for contingencies of $500,000 in
provision
1944.
1943,
After provision for contingencies.
Memorandum Available
Approximate Price $40
Complete Analysis
on
Request
United Artists Theatre Circuit
First Colony Corporation
Members New York
70 Pine Street
Teletype:
1-1287
N*\ 1-1288
Est.
Members N.
Y.
.'
ids#-
Security
Dealers Ass'n
120 BROADWAY, NEW YORK 5
*
•
Telephone:
RE. 2-8700
Hanover 2-7793
Security Dealers Association
New York 5
Teletype NY 1-2425
THE
COMMERCIAL &
FINANCIAL
Thursday,
CHRONICLE
November 29, 1945
2584
of Section 77 proceedings
It is extremely
process
Why An Inferiority
would start over.
difficult to
see
reorgani¬
consummated
just how
zation could ever be
also pro¬
that -a plan must be pre¬
within
a
specified time
Under Section 77 it is
vided
complaining
cited such delays
leading to unhealthy speculation in the junior securities of such
roads.
Again scoring these delays Representative Chauncy Reed last
week introduced a new bill dealing with reorganizations.
However
laudable
have been the intent of Mr. Reed, the end result of the
proposed measure would be the<£ virtual perpetuation *
1
-—
1——
of the delays
over
sented
of Congress have recently been
the delays in railroad reorganizations and have
members
limit by the
which have
United States Is Now the Only
Committed to Free Enterprise, Calls for an En¬
lightened Policy by Business to Preserve Free Enterprise. Warns Busi¬
ness
Men Against the "Unwise Friends" Who Are Scare-Mongering
and Creating Hysteria and Urges That a Confident and Unfrightened
Attitude Be Taken.
Calls for Captains of Industry "to Be Captains
Indeed" and Go Forward Unafraid.
Says Businessmen Would Do
Country a Service by Getting Rid of an Inferiority Complex.
I
most grateful to Mr. West for bringing me here today, and
it is kind of you to listen to me.'
What I have to say is the outcome
Certainly
that the 18
77
proposed in the new bill
voluntary
months
as
Big Industrial Country
limit for devising a
a
confusion brings readjustment would inevitably be
to mind the consternation a few
subject
to
interminable exten¬
sions.
It is not difficult to visual¬
years ago of Senator Wheeler over
ize the properties going back to
undue speculation in junior reor¬
The present
tors.
•
O
railroad securities
reorganization prog¬
ress, and his proposal to remedy
the evil by confiscation, through
taxation,
of
such speculative
Railways Co.
Cons. "A"*5s, 1927
the old
holding
Northern States
,
in
turned
Power
Preferred
Common &
Corp.
Preferred
231
So.
1
.
proved
such
readjustment plan. If
boom
it
revert back
the lengthy
then again
and
trusteeship
other
Exchs.
ing power to support a
few (New Haven
Pacific are the nota¬
There are a very
and Missouri
ble
examples) now being
:
seriously
Council.
Neverthe¬
less,
Mr.
iron out
no
what I
Berkshire Fine Spinning
than
thinking
by
making
clearer than
5^s
court.
-
:
,
5
Teletype
;
;
NY 1-1499
■
SUTRO
BROS. & CO.
Members New
Specialists in
120
RAILROAD
York Stock Exchange
Broadway, New
Telephone REctor
York
2-7340
SECURITIES
Selected
Situations
at
and
the securities
end of this year.
Zi
issued
Now
final stages,
all Times
mini
is—cr
1
VICTORY-
Street
Teletype
the
were
with
tive
Office." of
Admin¬
man
the
ness
ing
NY 1-1063
invest in
it!
PFLUGFELDER, BAMPTON &
Members
Beech Creek
New York 6
/
.61 Broadway
RUST
York Stock Exchange
New
handicapping the ap¬
industry and interfering
normal competi¬
conditions and was laying
return to
foundation for a major
depression by imposing
impede
policies which
mistic
new
appliances.
The'demand for
said, can be met within
eight months after produc¬
radios, he
six to
tion begins on
major
[a normal scale
can
appliances
\
within two years.
"Eventually there
W.
J.
Cashman
the
problems of merchandizing
will be a com¬
petitive cat-and-dog fight in
appliance field that will hitindustry right in the eye,"
Cashman
on
of me¬
He asserted
said.
rise 30%. over the
average in the first year
may
is to
expedite
reorganizations.
BUY BONDS of
A and Common
VICTORY
the
LOAN
AEREO
Mclaughlin, baird &
63
Wall
Street, New York 5
BOwling Green 9-8120
Boston
Tele. NY 1-724
Philadelphia
Hartford
Members New
1. h. rothchild & co.
Association
of Securities Dealers, Inc.
Member of National
n.
52 wall street
HAnover 2-9072
Tele. NY
y. c.
1940-41
of post¬
war
production, competition will
increase at a far faster pace. There
will be many more retailers and
EAGLE FIRE
Adams & Peck
the
the
Mr.
"While demand
Indianapolis
KEYES FIBRE
EXPRESO
and
be filled
Trr
Class
produc-*
deprecated over-opti¬
estimates of the demand for
Railroad
Bought—S old—Quoted
busi¬
pric¬
He
tion.
spoke
chiefly
greatly
a
manufacturers in the field, stress¬
ing the need for better merchand¬
& Louis¬ ising by the retailer and selective
ville Reorganization.
Ballots are
distribution by the brand name
now being being mailed to bond¬
manufacturer."
. , ; '
.
v holders and creditors of the Chi¬
Mr, Cashman expressed strong
cago, Rock Island & Pacific.
All
of these plans which have finally
opposition to the pri&ing< phil¬
come in sight of final consumma¬
osophy of the CPA, which he ac¬
tion would have to be scrapped
cused of lacking in leadership and
under the Reed Bill, one of the
decision and in a knowledge of
main avowed purposes of which
"elementary economics."
f
can
you
Depression
pliance
Price
Chicago,
now
•
.
voting
having been over¬
whelmingly in favor of the plan.
Votes are being counted in the
A
New York 4. N. Y.
Telephone BOwling Green 9-6400
2603)
Marketing Association Administration's
Price and Labor Policies Are Impeding Production.
Fears Cat-and-Dog
Fight in Appliance Field That "Will Hit the Industry Right in the Eye."
Speaking at a luncheon meeting of the American Marketing As¬
sociation on Nov. 14, in New York City, William J. Cashman, merh
n d i z e
;
that labor and pricing difficulties
manager
of
the
STOCKS-BONDS
:
:
:—
INCORPORATED
25 Broad
(Continued on page
Igoe has
organization is in its
Mr. Lippmann
Cashman Tells American
chanical appliances.
GUARANTEED RAILROAD
address by
annual meeting of the As¬
sociation of National Advertisers,
New York City, Nov. 20. 1945.
at the
Says 0PA Motivates
Wm. J.
postponed indef¬ istration with
initely any further action on the laying a foun¬
plan.
Even'if the proposed legis¬ dation for an
lation is defeated Representative! industrial de¬
Reed will have succeeded in de-, pression
by
laying this schedule.. If the legis¬ creating a
lation is to affect equity as well consumer
as
Section 77 proceedings, it is psychology of
with
also likely that the Seaboard re¬ "saving
organization plan, the product of fear, instead
many
years of negotiation, will of buying with
go by the board.
I confidence."
Mr.
CashThe St. Louis-San Francisco re¬
Judge
WALL STREET
Telephone
HA 2-6622
The
the
before the
Van Tuyl & Abbe
YORK
it had ever
a
example
is,
of c
Chicago, Milwaukee,
St. Paul & Pacific.
It had gen¬ Landers,
and
erally been expected that this re¬ Frary
organization would be consum¬ Clark,charged
mated
72
*An
fact
to. believe
expedite reorganizations.
course,
Tappan Stove Co.'
Skilsaw, Inc.
NEW
Walter Lippmann
one
great
moststriking
pfd.
Missouri Pac. RR. Serial
preciated but most interesting and
important part of your work that
I wish to talk about. 'From what
he
me
the vast majority of impor¬
reorganizations there is little
question but that the proposed
legislation ,twould
delay rather
Co.
go¬
cept'v that
started
In
Magazine Repeating Razor
Universal Match Corp.
am
ing to say ex- )
tant
—
re¬
only business'
There
their differences.
reason
tion of the
TRADING MARKETS
hold,
West
sponsible for
that they
could come to any more rapid ac¬
cord if removed from the jurisdic¬
111. f
one
no
should
been be¬
delayed by friction among oppos¬
fore. It is Jhat the ablest and most
ing interests. These interests have
successful men in the field of ad¬
had plenty of opportunity already
vertising and public relations do
to sit down among themselves and
is
New York5, N.Y.
LaSalle St., Chicago 4.
because
,
a
war
vertising
workable
impossible to work out capitalization. These can hardly
be
helped
by
any
legislation^
voluntary plan the prop¬
voluntary
had
the
accept the
that their
,
even' in ' a war
there is not sufficient earn¬
simply
•;
MEMBERS
Stock Exchange and
leading Security and Commodity
York
repeated endlessly.
be
if the average
longer
to
120 Broadway,
Bill, railroads
reorganization would be
back to the old stockhold¬
erty would
New
,
timate
•(
conventional idea
is to find
ways of selling to the public what¬
ever
goods or ideas their clients
turn out.
It is an equally impor¬
tant part of their job to tell their
clients about the' people who do
the buying, do the work ..which
businessmen manage, who do the
voting which determines the kind
of Government there is to be, and
in war the fighting and the dying
—and
I might add—the hoping
and the praying that there will be
better things for their children.
It is this second, this least ap¬
<8>——
not
L/*;
period while
wrangled over terms, and then re¬
turning ^to trustees if, or when,; a
business
recession
came
along.
at > the discretion of the
court, to work out a satisfactory
Interstate
Bakeries
during
with
Mr. West and
some
of
his
associates in
Given the normal ups and downs
the War Adof our economy this cycle could
'
/.
r" '!/~T
earnings over
Obviously the proposed legisla¬
the past seven years had been suf¬ tion, could not
by any stretch of
ficient
to
cover
the old fixed
['the imagination hasten the -re¬
charges.
The old stockholders organization process.
A few. re¬
would then have 18 months, or
organizations are being held up
ers
•
talks I
prosperity
opposing interests
up
profits.: /'
>
Under the Reed
"
of'several in-
during the anticipated
now
6%
am
stockholders, staying there
ganization
Warning That the
Prominent Columnist,
History of ac¬
Section
justify the expectation
irked our legisla¬
so
court.
under
tions
may
LIPPMANN*
WALTER
By
(six months) after filing of the
bankruptcy petition but with pro^vision for extension of the, time
as
Leaders?
In Business
under such a program.
Various
Complex
5
1-1293
ONE WALL
TEL.
STREET
HANOVER 2-1355
reuss
York Stock, Exchange
NEW YORK
TELETYPE NY
5
1-2155
Volume
162
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4442
-
with
(Continued from page 2573) ;
to judge the profession of the
of an ambulance
prosecution
of
phoney claims against the insur¬
ance companies. Since human na¬
;
were
law by the antics
chaser
or
the
ture
is
wherever
held
the
substantially
s^me
find it, it may, be
you
that
and
frailties
human
'
weaknesses
will
be
people
between
any
relation¬
field of endeavor where
ships
in
seen
in¬
are
volved.
heard
of loan
sharks and land sharks but it does
We
:
1
all
have
that all money lenders
not follow
shysters
are
men
that all real estate
or
would constitute
the-banks
all,
To
frauds.
are
believe
so
indictment of
bankers and
whose present
an
and
also
the "realtors
code
of ethics
leaves little
desired.
to be
.-O. v'-v.
that banking is
profession and that
dealing in real estate is one of the
oldest and most respected of voca¬
tions leads the unscrupulous to
hang on to the coattails of a legiti¬
mate industry and claim the honr
ors
and distinctions of a worth¬
while and necessary function to
honorable
and to car¬
cloud his real motives
^
ry
on his nefarious practices
to
the profit of the promoter and the
everlasting sorrow of the trusting
though ill advised victim.
/ ;
„
*
The
fact that mining is so alluring to
speculatively minded people and
has upon occasion paid off so well
has made possible abuses by perSo indeed it is with mining.
who
sons
not
are
at
miners
gain.
Their 1 -perversions
have
brought a bad name to an indus¬
enjoy
try which could and should
prosperity and respect.
"Since
the
state
ly minded investing public.
; I. sincerely believe that the min¬
ing industry agrees with the prin¬
ciple of security regulation, be¬
the
cause
be
the an¬
days there were more mines
Wall Street, or on La Salle
Street than-there were
in the
in
j
Such practices - were of course
intolerable" and in time have been
risk? It
when
wealth whereas speculation,
intelligent
in
farseeing,
and
even¬
multiplication of val¬
that fi¬
a
It is for this reason
nancial managers
counsel
a proper
proportion
of
common
stocks
along with good quality bonds to
arrive at a suitable balance in the
investment
In
-
policy of an estate or
.....'v.
a
district
of "Crip¬
ple Creek." Hundreds of millions
in
gold
were
taken - from
its
"Called by the odd name
seemingly
and
hillsides,-No
has
one
critical of the old
barren
ever
been
prospector who
mule down
Ute Pass into Colorado Springs
crying like Archimedes of old, ""I
have found it." You see, he found
came
galloping
on
a
gold. The first consequence of
the release of
the miner's wife from, the drudg¬
the
this discovery was
of washing clothes tor the
neighbors. The next, an influx of
miners who found more and more
ery
precious metal and who
possible the fabulous pro¬
duction over the intervening years
of
the
made
totaling literally hundreds of
lions in
lasting
mil¬
gold; and this to the ever¬
credit of the pioneering
spirit of the people of the State
of
States
these-
Colorado.
,
Full
Today
fat, .the legitimate miner
read the handwriting on the wall
and gradually saw his financing
plans go a-glimmering and except
in a relatively few instances
gave
the battle
as
bad
a
job.
miner should not blame the
however
in
Mining
the
-
coattail
data, The
inquiry often shows
flaws in the structure of a mining
deal and will, as it should, dis¬
courage the
unworthy promoter
from further action. We can also
of
The
tate
into
his
which
fallen. The
all
pertinent
fluoroscope of
character and repu¬
tation of those interested in every
such enterprise and when weighed
look into the
industry
•
mines
business
es¬
manner
and
that
are
Investment
this
an
is
an
expres¬
mining
as an
well be voiced. It is
may
superfluous
scan¬
a
final
which
upon
omy.
to
that
state
our
to our econ¬
the mineral
pecessary
for itself.
and
Bankers
To such
he
does
extent
injure
he succeeds
as
the
small
Win
not
deep
of
mineral
our -
now
should
we
what
we
resources
We .have
wars.
into
and
mine
owner who thinks he is his friend.
have
can¬
dipped
reserves
take
left:
stock
Surveys
show the appalling drain has dan¬
i
v
The
,
The
Toronto
recent
Dealers
•
gerously reduced our visible sup¬
plies of ores of nearly every va¬
riety. ••••'
•
v;
.
'
-
•
publicity involving
group of so called dealers in To¬
ronto is but a case in point. At no
a
time
should
vestment
neighbor
firms
an
north
Free enterprise made this
coun¬
in¬ try great and.
established
resident
the
to
keted with
of the
the
i
in:
unhampered explor¬
ations will make it greater; LeUns
look with sympathy and under¬
standing upon those who, with
courage and integrity; go forth to
our
be 'blan¬
indictment because
undesirable
practices of a
few within their midst; And in the
same breath let me state that in
G. H. Walker & Co.
force
a
gorge
her fruits" for the benefit of
reluctant
Adds Simmons to Staff
'
ST.
LOUIS, MO.—G. H. Walker
Co., Broadway & Locust, mem¬
bers, of the New York, Chicago
and
St. Louis Stock Exchanges,
&
announce
nature
*
to
dis¬
should suspicion be lev¬
eled at the mining industry of that
all
great country which
that Mr. Charles C. Sim¬
mons
has bec&rne connected with
their
organization
,
mines
developed mineral
champion of the cheat.
an
of
record
Except for the output of
the victory which we
have recently achieved could not
have been won. Nations without
the
in
reality," although, possibly inad¬
vertently, the support of the swin¬
dler, gives comfort to the corrupt
and is the
The
producers during the war speaks
Association
Better Business Bureau is
representa¬
as
tive in the southern Illinois terri¬
tory,-
^
Simmonphas had
Mr.
■
a
lengthy
in the investment business
career
following his discharge from the
U. S. Marines as Captain follow¬
ing World War I.
His first con¬
nection
was
with
Kaufman, Smith,
Emmert & Co., who
later
were absorbed
by the Boatmen's National
on
Bank, forming their Bond Depart¬
Mr. Simmons then spent a
ment.
number
Bros.
4
&
of
years
with Francis
Co., leaving them to be
with
Crago,
Smith,
connected
Canavan.
i At the beginning of this war,
due to physical ailments, Mr. Sim¬
mons
was
unable to rejoin the
Services
and
entered
the employ
Cartridge Co., oc¬
cupying the position of Chief Balthe
of
U.
S.
Herbert H. Browne Opens
ho
sense
was
and
ally in'any righteous
cause,
just
mankind.
/
*
listician.
is,
and please God always will be, our
\
-
Admits New Partner
COLUMBIA, S. C.—Herbert H.
of its citizens have
Browne is engaging in an invest¬
LOUISIANA, MO.—William W.
fit to take advantage of easy
ment business from offices in the
Sheppard has been admitted to
partnership with Frank M. Shep¬
pard in the Pike Grain & Secur¬
because
seen
some
conditions in the States: It
money
is to be
secur¬
ity administrator for the low
therefore
sion of confidence in
per¬
no
feel
about conspiracy between
the Securities Commissioners and
hoped most sincerely that
local authority w'll h#1 able to
Palmetto
name
Building, under the firm
of
Herbert
H.
Browne
&
nooA
ities
Co., Mercantile Bank Build-
ing.
.
has
blame
1 lishment of state securities laws or
the passage of the Securities and
Exchange Act in 1933. It
to
those
were
diamond
all
a
days
if
game,
CENTRAL PACIFIC RAILWAY COMPANY
back
studded
fair
was
goes
INVITATION FOR TENDERS
you
sucker.
The
Effect
of
Blue
There
after
bination
Better
of
those
Business
three
with
Bureau
has
the
air will
or
the
a
Financial
and
who
its
6,
C
Bankers
ment
bers,
half
now
as
for
two
State
a
have I
such
a
ever
quarter of
In
seen
mate business and the downfall of
the deceiver.
of
such
.
which
volition
in
long time
kindling.
of
I know, of
none
^
f
own
for lack
are unfriendly
mining as an industry and cer¬
tainly my-dealer friends are al¬
to
ways interested in a new security
issue to sell to their
clients; and as
for the Better Business
Bureau,
the
name alone should
signify that
good business enterprise not only
has but is its supports So it seems
me
that
no
controversy really
does exist between the small min¬
ing
ers
company and
accompanied by all appurtenant
maturing on and after February 1,
registered Bonds and coupon Bonds
registered as to principal only must be accom¬
panied by duly executed bond transfer powers,
with signatures guaranteed.
1946.
*
tv
J
or
purchasing
or
;
accompanying
papers
securely sealed, bearing
of
the
maker
of
company, or member of a national securities
exchange or national securities association. If
principal amount of the Bonds tendered by
the
■
one
company,
in this transaction. Tenders
name
owner
any
sell-
(other ' than by
insurance company, or
person
a
a
bank, trust,
member of
national securities exchange or national securi¬
ties association) does not exceed $100,000,
prin-
a
in "
no
the
.
cipal amount, arrangements must be made with
a
bank, trust company, or member of one of
such'exchanges or! associations to surrender the
the amount of the tender and marked
the commission¬
,at all. The, controversy
i§ be¬
<L
-
<
Tenders: may be signed either (1) by the r
of the Bonds, or (2) by a bank, trust ;
and;
names
All
*
Contract No. "NY 102,"
Boiids tendered in-case of acceptance, in whole
to'J. AV Simpson, Treasurer,
or in part, of the tender/
Banks, trust companies
•• Central Pacific Railway Company,'Suite 2117,
165 Broadway, New York
6, N. Y. All tenders I
ancI insurance companies may make arrange-^
must be received at that office on or
before^ tments for delivery of the Bonds tendered by
twelve o'clock noon, Eastern Standard Time, o'nQTthem through another bank, trust company, or
December 5, 1945. Tenders received will be'-'/N* member of one of such exchanges or associaopened by J. A. Simpson, or in his absence bw '/Jtions-' The bank, trust company, exchange or
R. E. Plummer or John B. Reid, Vice PresF
^association member, signing thedender form in
dents of" the Company, at said office, 'immedi- '^e space provided therefor, delivering and acatelyafter twelve o'clock noon, Eastern Standard"■-T: ccptiiig" settlement for- Bonds pursuant to and
Time, on said date ; and makers'of tenders or
1 jn accordance with an acceptance, in whole or '
persons representing them may be present and
in part, of a tender-of another party or person,
•examine each tender if they so desire.
will be paid by the Company $2.50 per $1,000,
The Company reserves the right, in its abt principal amount, thereof.
All Bonds purchased are to be cancelled, and
solute discretion, to accept or reject any or all
tenders of any of said Bonds, or to accept any
United States Stamp Taxes are not payable
on the sale.
:
portion of the Bonds covered by any tender and
addressed
.
of my commis¬
sioner friends who
to
or agent
be enclosed with
plain envelope,
indication of the
and
conscience
ago
must
tender
inflammatory
all
a
corporation, the
must be
coupons,
"Bid under. Proposed
publicity is only to add fuel to the
fires
a
a
/
•
outcome
if
-
All Bonds in coupon form, delivered pursuant
the acceptance,in whole or in . part, of a
tender,
in'its
_and purchasing
ing officer
.
;
;
and,
member and of the
manager,
The
publication of such senti¬
ments as I have just referred to in
my opinion serves no good end.
It seems to me that the tragic
1920,
or selling officer or agent
transaction, and, if a firm, partnership, or
association,' the "names and addresses of each
"
'
or¬
ganizations of which I have any
knowledge is that of being dedi¬
cated to the promotion of legiti¬
4,
in this
conspiracy
against the mining industry. The
or
only association of those four
to
addresses of its officers, directors, general man¬
ager
evidence of
any
collusion
Broadway, New York 6, N. Y7, where payment
/ •', ' :
■
the nameTmd address of the maker of the
state
tender,
century
as
.
therefor will be made,/
":V
conformity with regulations of the Inter-.
Commerce Commission, each tender must
state
:
a
1919,
one-
Securities
Commissioner, and I can most em¬
phatically-say that at no time in
than
-T
amended October
Docket Ex Parte No. 54.
•*
more
in. negotiable form and must be so
delivered during the period December 7 to De¬
cember 21, inclusive, 1945, at the office of the
Treasurer of the Company,- Suite 2117, 165
of Tender
be. obtained by addressing the Compaffy at
office, Suite 2117, 165 Broadway, New York
N, Y.,: marked "Attention J, A. Simpson,
'
Bonds, delivered pursuant to the accept¬
in whole or in part, of a tender, must be
delivered
Commerce Commission in its order of October
mem¬
and
All
ance,
This Invitation for Tenders is made pursuant
to the regulations prescribed by the Interstate
6,
Invest¬
Association
and
years
,i
•
supplied by
request/ Forms
upon
Treasurer."
Chronicle,
mostly
were
i
may
be
statistician and salesman with
firms
Company
\
to reject the balance. Notices of
acceptance of
tenders, in whole or in part, or of rejection of
tenders, will be mailed not later than twelve
o'clock noon, Eastern Standard Time, oil De¬
cember 7, 1945, to makers of tenders, at the ad¬
dresses appearing in their respective tenders;
:
onv
the Form of Tender which wilt' be
a
mercial
as
Railway Company (herein"Company") hereby invites
.
newspaper man on The
Wall Street Journal and the Com¬
as
the
Bonds accepted for purchase,
registered or coupon form, will be
H paid to December 21, 1945, but not thereafter.
z
All tenders must be submitted in. triplicate on
lost. Now for thirty years I have
been involved with affairs finan¬
cial,
Railway Company First Refunding
whether in
does exist the federal government
should furnish the capital for min¬
development
Pacific
called
Interest
con¬
spired to rid the country of small
mining
enterprise. These
same
people say/since this conspiracy
eral
Pacific
tenders^ for sale to the Company of its First
Refunding Mortgage 4% Gold - Bonds, dueAugust 1, 1949 (hereinafter called the "Bonds").*
com¬
a
Central
.
sions and the Investment Bankers
Association, claiming that
holders of Central
Mortgage 4% Gold Bonds, due August T, 1949:
those however today
are
the
To
Sky
Regulations
_
Disclosure
hangets on tell of strikes "as good
as
in Cripple Creek" an<J that,
gentlemen, is where we'come in.
,Well, what can we do about it?
First we can require full disclo¬
sure
are
vultures
should have died out of their
!
far
grew
up
I
in
fitting,
,
occasion
dalizes
<
is
there
Colorado
parched
United
but
ill advised critic who
The
sion, the State Securities Commis¬
security alone ultimately
in
the
destruction
of
results
trust.
the
in
as ..we
so
the
would
progress
economic truism that invest¬
ment in
ues.
and .that the
mining had been done principally
by ,loudly dressed promoters with
their Jeet on the desk top'and the
traditional cigar in their mouths,
concerned. > While
promise
formance.
old
largely corrected, at least
much
who quite unfairly blame the Se¬
curities and Exchange Commis¬
every
what
tuates
the
tween the commissioners and any
unscrupulous person who seeks to
separate a man from his money
with
situation
both
proper.
ene
strings of men and
walk of life. To
mining is a speculation
in
sure,
an
who
said that in the
mies. It has been
purse
world have made without
is
those
of
brought discredit on
industry are its own worst
through all the ages the
lure of hidden wealth has opened
but
actions
,
ha„ye
cients found treasure in their hills
women
re¬
business repute in the dealer who
sells the shares to the speculative¬
and down
the
believe
I
laws
quire this full disclosure of data
as
a
prerequ'site to qualifying
shares for public distribution and
all, I further believe, require a
condition
of solvency and
good
when
-
when
days
Most
is
rightfully goes
all■ hack much farther than the estab-
merely promoters for private
but
wanting,
deny the right to sell their securi¬
ties to the public.
■)? Western mountains,
The simple fact
an
Tn the balance and found
this
that
Mineral Resources and Venture Capital
2585
-
CENTRAL PACIFIC RAILWAY COMPANY,
Dated, New York, N. Y.
November
19, 1945.
By J. A. SIMPSON, Treasurer.
I
V
(Continued from first page)
the car to a stop, with screeches
and moans from brakes and tires.
He was just opposite the man and
the mules.
•
signs, but
none were standing, all had been
hacked^ down and
burned by
someone
who thought the old
for road
looked
He
signboards were out of date, obso¬
lete. Finally, after Vainly looking
guidepost, he
asked
the
farmer if .he knew
whether the road to the extreme
left would take him to Loafhaven.
for
about
some
answered:
"Ah don't know."
J "Will
the road in the center
take me there?"
:
:
'"Ah don't know." ;
;
/
'
"Will the road to the right get
The farmer
■
-
know."
"Ah don't
■
know."
"Ah don't
•*
Temper
-
,v' •
*
*
much, do you?"
"Nope," was the prompt reply,
don't. But ah ain't lost. Ah
"Ah
";
work."
•
•
-
-
.
drivers are
Our national
^
pitch¬
of the road.
almost at the forks
•
.
.
merchants,
collar
and bankers, and profes¬
men, "us of the run of the
we
farmers, and
and mill hands, and white
men,
sional
flock"—"we ain't
We
spending. We must be solvent to
ouy. bonds to keep up the govern¬
ment house, for a bankrupt peo¬
lost"—yet. y v
and we
work,
to
are
to begin yith that I
guarantee the figures I
I have taken.them from
cannot
shall
government sources or from tables
and compilations based (so they
say) on government sources. Pub¬
lished tables are frequently not in
COUld.
'
'
'" V
■
\
this
| First: I wish to say something
about
our
take
load
this
on
our
?
before
statement
his
In
are
Committee
Finance
Senate
already
amount
equal to somewhere near 90% of
drunk
and
eaten
.
we seem
to have
still*'
nothing for the international
loans that are now
projecting, — all which unestimated items must inevitably run
outstanding;
into
several
1932-1941
steady
With
a
,
-
.
'
:
•
of dollars. ''
tax
collections,
inclusive,
in
rose
.
;i,'.
a
from $1,788
curve
1932
in
billions
pre-war
.
/
to $7.67 billions in 1941,1
yearly average for the pe- :v;
riod of $4,346 billions.
;
?
:
.
\v.
year,, are five times the :
I'.
for the ten years, pre-;
ceding the war, and three times ; i ic >V
the actual for the last year before
the war.
?
,l
x
j,
'
that/no
„
an
It seems to me
is
argument
average
;
?
-
as
are,
.,
total wealth.
our
needed
3how that we are not in
to
the same
position to go forward in public
financing that we were at the
beginning of the war. Our assets
have been depleted by virtually
the "war expenditure,"—approx¬
in wages, was
up
by those
that was expended
we
stated,-the poorer by
people receiving it, in houses
so adding to the
national wealth, we are obliged
to consider that the bulk of it
the
Sec¬
planning;, and nothing apparently
for
the
uncompleted lend-lease
commitments
^; The Federal tax collections dur- ' ^
nationally
and furnishings,
dreamers propose.
;
coming
and
'
the
to
Utopian
capacity
-national
i
.
government
bonds, - * and - much
more, has been burned up.' In fact,
by
reinvested
was
sum
training the huge 're-'
the militarists are now
load. These funds ;>rThe Treasury's estimates (minus
the
unestimated 'items)
for the
life's savings/ If
to
were
ruined,
Now, while a part
expenditures."
the World
our
army
go, We would be
with us the nation.
"We middle class cannot go on
much .f urther.:'?{:■ I;/;/'
All this • money represented ;by
they
"war
billions were
$342.6
our
represent
--
stated
Capacity to Finance
Our National
by
this government
Referring to the question of the
effect of this vast expenditure on
ournational
wealth: , As
just
I have done the best
agreement.
serve
The
individual purchases
and by our participation in the
purchases of these, institutions I
have
named, ,we,' the financial
middle / class,
carry the bulk
of
But
not
,
and Financial Middle
cost of
the
Class
clear,—probably their
thinking has not gone that far. A;
IV •
:
i
Our Expenditures vs. Our Na- V
tional Wealth
'Vis
war
use.
"\
War Waste
talking about it. What they think
we will use for money
in such a
Let me say
class;
are
we
finance.
the life time
hardly escape, within
in every
all one class,
the
topmost
achievement
to all of us, indeed even in
open
of any of us but the oldest,; the
ple means a bankrupt nation. .We
most
terrible
war
of all' time.
at the crossroads must have real'
Gossip has it that some are now
/alues.
•'/
' /■
.
ing forward at breakneck speed;
they are searching for a dreamUtopia; they do not know in what
direction it lies, nor do they know
which road to take to get there.
But they are
into deficit peace
middle
else
with
relations,
Thank
have in America no other
of
thing
particularly vis-a-vis our recent
allies, if they continue to exer¬
cise an equal influence over our
domestic policies relating to arma¬
ment and military training, I ven¬
ture
the
opinion that we shall
government
going we
citizens
must operate on the old debit and
credit plan.
Not for us is this lux¬
urious adventure
to
financial
the
comprise
,
we
kind
army
influence in our foreign
of
driver said,
the
lost,
"You don't know
But
As I have
(
Loafhaven?"
"Which way is
•
the bill.
just said, to keep the
citizens pay
I
there?"
me
tinue
God
and navy, con¬
exercise a dominating
the
of
out
which. Either way, we
'do not care
tutions,
middle class of the country.
Foreign Countries
Public Loans to
Thursday, November 29, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
2586
1946
(estimated) $36 billions.' / ; ■
Apparently we have reduced /: ?: ;?
the tax load by recent legislation
by? $6 billions, leaving our tax : ; ;; :?-?;
load under the present setup at?
;
*
apparently
$30
billions;,? These ,;r;
are the
best figures I can .-get/-' 'X'
.
T If they are accurate, then our V.
; \ ?
present proposed, tax load after ■
the tax
reduction just made,\ is
,
.
.
June
receiving it. Waste and extrava¬
imately $342.6 billions. We cannot
30, 1946, our public debt outgance was everywhere to the last
nearly seven times our average
Standing would be $273 billions;
pass this off with a mere wave of
degree?
This same \ observation the hand or a
that our
laugh; it is a reality. pre-war/tax burden (1932-1941)
expenditures for 1945
will apply to the non-war expen¬
and more than four times our last !
>
A national financial
mishap can
were
$100 billions, and that for
ditures, some $86,431 billions^ It
1946 (year ending June 30, 1946)
and would wipe out this whole pre-war year tax load. The nonis almost certain that enough of
war estimated
budget for 1946 is ;
the expenditure would be' $66.4
financial middle class, and if they
this latter sum was wasted to off¬
$15.9 billions; the itemized budget Ir¬
billions
(of which $50.5 would
go
down
our
whole' economic
set the "war expenditures"; that
is over $20 billions, with a leeway
structure
goes
with them?
We
represent war activities). Com¬
were saved by investment to in¬
of some $10 billions to meet the
; ■
cannot afford to blink our eyes at
bining these figures with others
crease the national wealth.
Thus
unestimated items, which, having
this.
1
■■ ■ /'■'
furnished by the government it
It is believed we may truthfully
in mind the loans foreign govern- v
What We Should Do
would appear that since and in¬
ments are seeking, seems far too
say that the "war expenditures''
cluding 1932 up to June .30, 1946,
We
have no business to be low.
'
reached a total waste and loss of
retary Vinson told us that by
-
.
•
r
.
the Federal Government
will have
undertaking anything in the mat¬
1 Reduction of Tax Base
'?■*.•? t:
$342.6 billions, or, say, approxi¬
working, on the
spent $459,258 billions, of which
ter of world economics and financ¬
old rules of debit and credit—we
mately 90% of one estimate of
Now, we should not overlook 3;
$205,758 billions were raised by
ing except the: relief of actual
our national wealth.
I
that our tax base has been dras- .?„5, ?
Jhave to if our drivers are to have taxing the people. During* the
;
suffering — a tremendous load —
I will not belabor tl\e point that
money to pay their hotel bills, and
/
and that should be left in largest tically reduced,, how much I canperiod 1932 to 1943, inclusive (fig¬
wheh our national wealth — our
to buy gas and tires to get them
not estimate.
But we shall lose
ures for 1944-1946 were not avail¬
part to the regular relief organi¬
capital account—is gone, we are
to their Utopia—Loafhaven, -,
all of the taxes we collected on
v ;
- able to
me), the States spent ap¬
zations, such as the Red Cross,
bankrupt; we Will be "a busted
the
proceeds of war contracts./ / ?
proximately $39.4 billions, and the
drawing upon the
well known
Aid to the Needy and Suffering
community."
^
They were enormous. One inci-;;,
;
local governments in the States
sympathy and generosity of the
'We run of the flock know we
dent: a friend of mine had a gov:
approximately $63.5 billions, or a Nature of Our Bond Indebtedness American people. We can be of
must help, and are willing and
ernment building prdject involv-'"'total for States and local govern¬
no help if we permit ourselves to
I suppose none of us here have
anxious to Jhelp, the poor of the
ing the expenditure of $7,800,000.
ments
of
$102.9
billions.
This
world, with food and clothing and makes a grand'total for Federal, any illusions about the $273 bil¬ g^t into the same desperate straits His fees before taxes were $125,as those whom we wish to help.
lions of bonds.
We can all apshelter. We want nobody to starve
000 (they would not give him the
You do not get into bed with a
State,
and
local *, • governments
! praise in part at least, our true
or freeze or die from exposure or
regular fee); after he had paid'
(with years ,1944-1946 lacking for
smallpox patient in order to be
disease or plague. We do not want
relationship to them. The govern^all his taxes he had left to put :
/
State and local governments) of
?ure you can nurse him to health.
ment has our money, we have
into his capital account $3,200 on Iany of these things for our wives
$562,158 billions, more than half
its promise to pay back. It is the
and children, and we know that
a
40% total interest in the pro¬
a
trillion dollars.
'
j V//,; Tax Reduction
'
old operation of taking cash' f rorh
disease and plagues anywhere in
.v>. ■
ceeds of a $7,800,000 contract.
/
r There is another matter I wish
still thinking and
;
.
.
'
..
■
■
-
the world threaten
us.
We
are
all
willing and anxious to cooperate
with
appropriate agencies set up
all necessary help to
humanity everywhere.
extend
to
suffering
Some of
could
are
the
do
in and
believe the Red Cross
us
job if we all fell
But of course we
this method might not
helped.
aware
be
politically expedient, it would
supply lame-duck ex-office¬
holders with fat jobs, nor give
high salaries to key politicians or
their
friends,
nor
enable
any
group
to
wreak vengeance on
those they hate.
So the Red Cross
not
is
probably out.
Santa Claus to the World
War
According to Treasury figures,
submitted by Secretary
Vinson,
air than
"we
it
I
have
the world
now
never
other
First,
as
it should be fed and
has
Then, plans
to
in the
suggested.
to feed
are
know
more
been
are
fed
funds
makes
re¬
trial
restoration, for new indus¬
tries, for raising standards of liv¬
for. educational and cultural
progress
a
total
of
of
$342.6
as
\
t
and
development, for
more and better poor
houses, gen¬
eral housing, jails, insane
asylums,
Concepts
' •'
t
Perhaps this is the point where
might reflect that waging wars
in earlier days had this advan¬
tage:
The sovereign waging the
war
must always remember that
he wanted still to be king, win or
we
after the wat
lose,
he
had
to
be
was
over,
careful of his
so
men
seems
built
on
will
I
But
It
billions,
Ancient and Modern War
\
folk to understand
different sys¬
a
indicate
try to
;
is
said
the
deposits
all
in
total
roughly
$152
billions. As we understand, very
little of this money belongs to the
possessions
what there is -could
be wiped out by a very small drop
in their government holdings. All
these bank funds belong to the
and
depositors, to us.
As
we
depositors
into
have
have
bonds
what
?!
*
•
>
along,
gone
,
•
we
individually put
we
thought we
from living necessities, which amount was said tp
total in December 1944 (it Will be
could
more
is
spare
now) $52.2 billions. But that
our total eohtubutioh, tot
not
invested in bonds
deposits
for universal social and economic
with
them,commercial banks
security,
and
public insurance, our militarists have no such rela¬
$84.1 billiohs, and mutual saving^
and a hundred other like
purposes.
tionship to us; under our system banks $9.6 billions.' Our insur¬
Some feel that behind this
plan they hold their jobs, win or lose; ance companies fiave put, of the
with its outward humanitarianism
10 personally tliejr are not so in¬
money we have
given them to
is a subversive
plot to make the timately concerned with the wast¬
protect our families after we' have
whole world
communistic, on thei age of men and the burning u"n gone, the sum of $21.7 billions, out
Soviet plan.
If this is the con¬
of money, as was fhe old king.
I of a total of $38.2 billions of
spiracy, it could hardly be better
appreciate this is not a pleasant, assets. There are millions of bank
planned.
even
as
it is not an easy thing depositors, there are some 67 miL
All this will take a lot of
to say.
But it is a truth, with far- lion carrying life. insurance noli-r
money,
and the world plans that we shall
eaehing consenuencps.
cies, with an average of $2,200 to
furnish most of it.
each policy.
I wish to make this further un¬
They expect
These bank deposi¬
to get it either from our govern¬ pleasant and
unpopular observa¬ tors, policyholders, .and members
and
frugal with the money he ex¬
acted
from
his
subjects.
In our
day and here amongst ourselves,
the banks have
a
large proportion of our
t
ment
or
from
us
individuals. They
1
tion:
If
our
militarists,
in
and
of loan associations and
lions, of which $80.8 billions paid
normal tax and $55.7 billions paid
possible be divorced from mere
like insti¬
/
"
surtaxes, and on an estimated $125
billion post-war national income,
:
tax
see
taxes reduced.
reduction
should
so
considerations". No tax
plan is sound, as a matter of polit¬
political
ical science, which does not apply
to
for
income
(1945 figures were not avail- "
to me) is given at $160 bil-,
1944
able
But
far
all like to
the
as
a
all
the
citizens.
Every
citizen
personal dollarInterest in how all the tax money
have
should
is spent.
"•
!.'■ But
that
level.
is
not
the
proposed
Secretary Vinson in his
statement before the Senate Fi¬
Committee spoke of a non-
war-activity expenditure load for
1946, and inferentially thereafter,
$15.9 billions. But his itemiza¬
tion of such " expenditures' totals
of
$21.1 billions. But the Secretary
apparently did not include any es¬
timates for amortization on the
debt of $273 billions, nor
for tax refunds now running about
public
$2.9 billions for 1946, nor for un¬
employment relief on the new
proposed plan (though he did in¬
clude the 1940 load of $2.2 billions
spent largely for WPA projects);
nothing was included for military
expenditures (except veterans re¬
lief),
notwithstanding ^ we still
have a staggering military establishment which must be
main¬
tained till demobilized, which in
itself
is.. a
costly
undertaking,
placed at $27° nt>r rr>nn di^fharefpd,
nothing for liquidating war con¬
tracts, though the Treasury esti¬
mates it will require $4 to $5 bil-,
lions; nothing for the large mili¬
tary establishment our military:
I
ti?' CApeCt- to retaui, no
for
'
' ;
given at $77.8. I have
breakdown for this
been
taxable
no
.
•;
year.
In 1944
pattern.
nance
has
'
taxable.
be
would
.
Our total national income for 1940
than half the
more
..
It is likely that most of us think
of a post-war tax burden, that at
the worst shall not be greater than
the pre-war
Pillions
$44.7
a
I
banks in the United States and its
banks,
have
national
••
made
beginning in
the reduction of taxes. We should
We
total
Our
to'refer to.
one
how it looks to some of us.
if the money had been
burned up.
of
i'J'K
thing for
difficult
a
common
tem.
completely lost to our
economy as
is
us
set
approaches the equivalent
of one estimate of our national
wealth.
The bulk of this huge
is
•••;.;
which economists, govT
ernment/and private expert ac¬
countants, bankers, brokers, etc.,
put out, particularly when each
"war'expenditure"
1940-1946
for
-It
securities
■.;
i"
' v
the figures
which
as
habilitation, for reconstruction, for
currency stabilization, for indus¬
ing,
•
this, "breakdown not available").
(I wonder where this went.) This
before."
for
ours?
these
holds
Who
the
for
1941-1946 were: Munitions,
$219.7 billions; . pay and subsist¬
ence, $72.5 billions; miscellaneous,
$48.7 billions—a total "war ex¬
penditure" of $340.9 billions.- To
this should be added $1.7 billions
for 1940
(the Treasury says of
we
forming to supply
countries
Who Owns The Bonds?
years
sum
But there is much
expenditures"
"war
the
dropping in IOU's.
the till and
Expenditures
income
In
taxed.
was
mated post-war
the
total';
;
esti-;.
income ($125 bil—^
?
lions), a little more than a third'
would be taxed. Obviously, if the
income were reduced to the 1940
?
$77.8 billions, very, niuch??
actually and in : proportion,,.:,
would be taxed.
?; / ■'
level,
-
,
less
Reducing-
Balancing Budget vs.
Taxation
'•
■
•
The
;
r
-
of the budget,
lightly and verydelicately, but with \no real sug-"
balancing
,
has been touched
gestion that it was to be sought.
clearly you cannot reduce
taxes even to approach pre-war;
levels
and
balance
the
budget,
while at the same time carrying
But
such prodigious non-revenue
producing schemes, for ourselves
and for the world, as are being
projected.
Indeed," we
cannot
; '
on
real
make
unless
time
clear
-
to
a
peace-
fnancing, or increase
or both.
This seems
.
demonstration.
believe
know all this
no
.
dreams, f
domestic
either continue
deficit
taxes,
our
I
we
our
that
our
planners
and that they have
reajl intention
or
expectation
of either balancing the budget or
giving
giving,
would
up
up
,
deficit financing or of
their schemes which
make
attainable
one
both of these desirable ends.
or
They
*
:
;
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4442
162
mushcontemplate increasing taxes.
Their
me
is understandable to
course
on
other premise than that
no
they deliberately plan- a continu¬
policy of enormous taxes and
ous
deficit
shall
spending
which
debt repudi¬
one,device or another.
peace
finally
ation, by
,
No
end in
Capacity to Make Foreign
Loans
;
With all the foregoing in mind,
.
1
,am
this
sure
people
our
undertake
government, and
in no position to
are
world-wide
in the full
Amount of Our Money in Foreign
Countries
The bankers
-> largely
"lying down."
I
should like to say here and now
that'from the information coming
to the Foreign Bondholders Pro¬
tective
Council
from
defaulting
foreign: governments,it is my
opinion that very few of the loans
made are properly subject to the
charge of corrupt negotiation. As
to some loans, concerning; which
such
charges have been hurled
most urgently, the record shows
that the lenders made every effort
and
category.
issue
taken
houses
To. recapitulate: foreign,"-coun¬
tries now have of our money more
>.
!>
{
.
Now
much for governmental
so
wisdom and
ther
ability to make fur¬
to
"gimme" govern¬
loans
ments.
v';
:
of
Foreign
Loans
the
wisdom
loans, I would
that our
of
making
new
all. would
assume
situation
agree
that
industries
many
sions
of
built
thereof, and for government
is
3uch
billions
of
dollars,
at that
time thought to be an extrava¬
gantly large sum, but now hardly
more
than the largesse distribted among the powers at a Yalta
Conference;
•
cannot
we
■-
During
the
period
1919-1930
foreign governments (for them¬
selves and for political subdivi¬
ten
the
loans
by govern¬
political element.
always a highly hazardous,.venture. Nodoam is likely to
,
That
is
and
which
:
try
in
made
and
meet
the -.ideas
of
and
staffs
and
civilian
and other gifts
6f
know
nothing what-
this
I
the
world, we would be
trying to control theiir national
economic, even cultural life, to
money
other
ever.
become not only the monitor, but
the dictator of every little coun¬
territories,
have
we
their
on
>
our
shall
Risking
the
Taxpayers'
Money
Foreign countries are not at this
'good
credit
risks.
The
"gimme" spirit is too strong and
too;universal->'•;-.v,
;,
time
!
Surely
it
the
the
have
govern
Now
the
their
of
to
views
own
to
as
simply ludicrous for
to
To. do
dictate
borrowing
our
recast
all
of
these
others.
we
live
them.
ourselves;
the
best
could
we
our
claim
this
yields it'
must
for
to
-
•
had,
Sovereignty
course, our personal enemies
that we wished to punish, and .we
done
We
we
of
would be wrong to;
have
American / taxpayers'
that.
to try
people, the divinely given right to
live their own lives as they wish
to
could to further their
Along with that
us
into
Furthermore, we must come to
acknowledge and accord to every
did what
interests.
kind
mold.
foreign favorite individuals Even
in .the
very recent past, and we
we
the
government they should have.
It is
cronies
have had
we
clothing and drink, their concepts
of civil obligation and
honor, and
official
departments.
should
we
V who
^
their
own
countries.
risk
•:•;/V''!l'yj<'v
millions of UNRRA
public relief,, the large Red Cross
funds we have given them, the
war materials they will be
given,
the permanent improvements and
private loans) made
borrowings from private sources
in. this country of slightly over
But, however much one might
disagree with what I have said
regarding our real ability to make
and
dreds of
guaranteed
Collection
making
ment will be the
.
policy of
public international financing by and took every precaution to see
the national Treasury, because we' that no'corruption attached'to the
iio not have the funds therefor, making and approval of the bor¬
and they are not obtainable under
rowing,
/v, ■ ;•V• )'•;; ,::,:i
any safe financial policy.
Just a few figures: >
a
in
tion, economics, culture, govern¬
ment, and what not We must give up this idea too
many of us have, that our way
be made to the fellow we do not
than $14' billions they owed us
of life and: living is not
only the
at the beginning of the war, the, like,
no
matter how sound he best, but often the
only true way
may be financially, and loans will; of life and
approximately $7 billions they
living in the world*
be made to the fellow we do
now
owe
us
on
account, of bor¬
like, that we know what everybody
rowings from out private citizens, without too much scrutiny about else in the world should do and
the $35,708 billions we have given his financial
responsibility, pro¬ how they should do it. We must
them on lend-lease, and the $2.8 viding he promises to
play our come to realize that every race
billions Export-Import Bank lend¬ game., Making such loans would
and every people have their own
ings, or a. total sum of our money mean our control of the domestic way of doing things, their owri
they, have- had from us, of over policies of every country willing standards of
life, their own idealsj
$59. billions, not to count the hun¬ to $ell out to us. Thus we would their own
kinds
of
food
and
have
this
all
2587
at
This
say
be
may
word
a
or
a
good
two
place
about'
to
sover¬
ignore the ques-i
Sometimes we have been eignty, which I shall not
On Dec. 31, 1941, on an issued
money in any such wild-schemej
define,
tion of the repayment of the
gloriously! disappointed; in the but which, for our purpose, can
loans.; $7 billion
indebtedness, made up public international financing as
We surely need the' tens of bil¬
vernacular "We bet on the
be said -to be full, complete na¬
is projected so-long as we are- as
wrong'
of 1,009 issues, $5,195 billions
wer^
lions of dollars we
could loan,;
horse," so buffering a
serious, tional independence, with no overstill
outstanding, of which 327 we are and the world is as it is.
While some of us" do not realize
We should leave the making of humiliating rebuff. We shall fre¬ lordship" by any power: The effect
issues
were
in
default
upon- a
it, a billion dollars is still a lot of
quently bet on the wrong horse, of full sovereignty was stated by
principal amount of $2.3 billions. further loans to foreign countries!
money.
'^
.... 'ip- -■£};
\■ ?/*'/"! That is, 44.4 % of the total amount to private investors who think: because our very backing of a Chief Justice Marshall, 120 years
favorite will normally create such
Experience shows very clearly j outstanding was in default.
ago.
He said:
On they have money to lose, or who*
a. reaction as to defeat'our schem¬
that the most important factor in
"No
wish
to
principle of general law
that data- of the 41 countries in
gamble.' Equally, it is;
ing.
Thus
government .lending is more universally acknowledged
securing the repayment of loans; the world owing us
sure there- is
no
justification for;
money, every
will involve us in a career of im¬
made to foreign governments, is;
than the perfect equality of na*debtor except 4 in Europe (small- further mulcting the taxpayer to
the will to pay on the part of
position
and
interference
that tions.
Russia and Geneva have
states all of them)
carry the financial burdens of the;
and- two in
will bring upon us the deserved
those governments.
equal rights. It results from this
Capacity to the balance of the world; was in world, when private individuals!
hatred and fear of thE worlds to
pay and' lack of foreign exchange; default either, as
equality that no one can right¬
to
1
interest or are prepared to do it.
the destruction of the- good will fully impose a rule on
to make payment is really
another.
rarely; sinking fund or both; upon one or
that should obtain among nations
Each legislates for itself, but its
Can Defaulted Foreign Loans be
involved,
notwithstanding
the! more issues of government, state,
and* that must obtain if we are to
whimpering of foreign govern-i municipal,,, or government guar¬
legislation can operate on itself
Collected?
■;
have peace.
ments on these grounds."
>
alone.
A
anteed corporate bonds.
right, then, which is
<
I wish now to make a few.con¬
On Dec.
vested in all by the consent of
This government lending plan
31, 1944, there were 6 countries cluding observations over the col¬
We Have No Foreign Obligations! of the 41
will in addition tertd to destroy
all, can be divested only by con¬
debtors that were not
lection of loans made to foreign
sent.
As no nation can pre¬
i
I begin with the premise thati so in default on some issue of
governments, because obviously a much, perhaps a good part of our
scribe a rule,for others, none can
trade and commerce with the na¬
we do-not owe anybody anything;
bonds put out for which the gov¬
bond or other security is no whit
make a law of nations."
tions affected, for nations do not
i
were
anywhere in the world, on any ernments
responsible
for better than the amount you can;
All states, all nations,
account. A "war expenditure" of service..
belonging
,■ ■; v.
\- ; certainly collect on it, which der buy, any more than individuals
to the family of nations—an assobuy, from those they do not like,
342.6 billions of dollars, with over,
Now, all of these defaults were pends (as to all debtors without
if there be any other place where I ciation
that has existed in the
a million
casualties, and hundreds in addition to. the defaults on the the1 will to pay) upon the ade¬
they can get what they want, and world; for hundreds of years—are
of thousands of them dead, mostly, debts owed to the Government of quacy and
certainty of the means
we shall have plenty of trade and
sovereign: states.
~
*
on foreign
of collection,—in
battle fields, and not,' the United States.
r
:
'
our
own
do¬
The Atlantic Charter—which it
financial competition in the years
'on
American
soil
to
mestic securities, upon the courts
repel
an
now appears was never a formal
to come.
'
invasion against our own shores,
'>•••.; ■>, - J
and the sheriff.
\\ v/:-'''. ■v;,* ■
Advances to Foreign Governments
,
-
-
-
.
.
.
.
■
.
make
this
must
be
clear.
observant
Moreover, we
of the impli¬
cations' of the President's
phrase
•in his Central Park speech, where
speaking of
Navy, its record;
and its purpose, said:
"ti "We cannot reach out to* help
our
stop and defeat
out
with¬
t j
an aggressor
crossing the sea."
obviously
contemplates
foreign wars. V
v--;
"This
:
more
Possible Foreign Obligations
;
I
,;
have
said
owed
we
nobody
anything on any account. Perhaps
< there
should, be an exception to
this, for we may not yet have
! settled for camp sites and army
j transportation and other inciden■
itals
in
Great
Britain
while
our
tooys trained and waited to furnish
.
would
invade
not
Germany
sure
Britain.
Great
It may
.
;
be, too, we owe something
to. France on the same account,
for saving her hide, and Belgium,
on
the
same
of
Foreign
ments to
When
v
score.,
Obligations
•
Govern-
the-
in
war
1941, European governments owed
,
the United States nearly $14r bil¬
lions,
from
which
the"
the
was
First
which' those-
hangover
War
World
governments
making no real effort to
*
You- will
recall
It appears that to many of these
countries so in default,, we have
during; the
and* while
war
they
were
still in default, and appar¬
ently without asking them to make
any payment on. account of their
default, made lend-lease payments
totaling some $41,208 billions,, up
to May 31, 1945, and. we had re¬
ceived back $5.4 billions, leaving
us
a
net-giver in the amount; of
$35,708 billions.: To this should
be added the $2.8 billions the Ex¬
port-Import Bank has agreed to
l6an (also apparently without any
that
and
were
I
pay.
this
vast
fund was. the result of funding
operations which our fiscal ex¬
perts at the time declared" were
most magnanimous.
commitment
pay
from
anything
makes
on
the
debtors to
account); which
total advance to govern¬
under
these headings
of
a
ments
$38,508 billions.
It is
understood
sums
have
large
very
invested in
been
of these countries
some
by
military authorities for: mili¬
tary purposes,., but which are of
a
character of permanent use and
benefit, for which these countries
cannot pay, and which we must
either give to them or take bonds
,
■■■Ay-
'V;
Critics of the 1919-1930 lendings
have stressed the importunate1 ap¬
proaches
for
loans
made
by
American lenders during that; pe¬
riod. But it is reported that' someLatin
Americans
are
now
saying
that the importunities of the
pri¬
vate lenders of those lush:
days
were
as
a,
gentle
zephyr to the
comparison, with the
high-pressure methods of our cur¬
rently operating g o v e r n me n t
tornado
in
lenders.
Our Private Loans to Foreign
;
Governments
v
Much
tries
1919; to
1930.-
Those
initiating the loans have been ac¬
cused
of all
the financial crimes
«L-
i
<
\
»
It: .1
quate
and: certain
court,: and
international
sheriff
tional
talk
con¬
collect
interna¬
form to
V,.
living,
our
as
good
a
openly1 expressed) of
deal
standards of life and
to food, clothing, educa¬
and
nevei;
though
Only Way
of
about
loans must be made with
our
the
remaking the world to
interna¬
loans.
So
to
Not
is
There
no
certainly
tional
Ours
-
were
once
a
we
solemn
signed—
told it was
international undertak¬
ing, affirmed:
"Third, they respect the right of
all peoples to choose the form of
(Continued on page 2588) - j
that in view.
Will to Pay
■
NOTICE OF REDEMPTION
Remember always that the most
important element in the repay¬
ment of foreign loans is the debt¬
or's will to pay. It is, I believe*
demonstrable that during the war
period many debtor governments,
perhaps most of them in number,
have
had
change to
sufficient
dollar
infrequently for grandiose schemes
ahd plans that will be social lux¬
uries in their countries for a long
time to come.
This lack of the
will to pay was, for most of them,
reason for the non-serv¬
the< real
of
their
bonds
for
be¬
years
I repeat
war.
attitude,
practically
again, this
universal in
the governmental borrowing field,
constitutes a real hazard to inter¬
national
ticular
lending that is of
importance
when:
RAILWAY COMPANY
IMPROVEMENT
SERIES
MORTGAGE
B, DUE JULY
1,
6% BONDS,
2047
NOTICE IS HEREBY GIVEN that Northern Pacific
ItailAy Company has elected
off on January 1, 1946, all of the above-mentioned Refunding and Improve¬
Mortgage 6% Bonds, Series B, at 110% of their principal amount, together with accrued
interest on such principal amount to said date, in accordance with the terms of said bonds and
to redeem and pay
ment
provisions of Article Ten of the Refunding and Improvement Mortgage, dated July 1,1914,
Railway Company to Guaranty Trust Company of New York and
January 1, 1946, there will become and be due and
payable upon each of said bonds at the office of J. P. Morgan & Co. Incorporated, in tho
Borough of Manhattan in The City of New York, N. Y., the principal thereof, together wita
a premium of 10% of such principal amount, and accrued interest on such principal amount
to said date. From and after January 1, 1946, interest on said bonds will cease to accrue ana
any coupon for interest appertaining to any such bond and maturing after said date will
become and be null and void.
•
/
' •
the
from Northern Pacific
William S. Tod, Trustees, and that on
,
Coupon bonds should be presented and surrendered for payment and redemption a a
July 1,194ft, and thereafter attached. Coupons due January
aforesaid with all coupons payable
1,1946, may be detached and presented for payment in the usual manner. Interest due January
1, 1946; on fully registered bonds will be payable only upon surrender of such bonds for re¬
demption. Registered bonds, in cases where payment to anyone other than the registered owner
is desired, must be accompanied by proper instruments of assignment and transfer.
par¬
.
the
putting out other peo¬
ples' money—the taxpayers' money
lender
REFUNDING- AND
pay
icit spending policy—to use their
funds in. their own
country, not
fore the:
NORTHERN PACIFIC
of
ex¬
the service—inter¬
est
and
sinking fund—on their
obligations, but they have stub¬
bornly refused to do so, preferring
—inspired by our peace-time def¬
ice
to the holders
NORTHERN PACIFIC RAILWAY COMPANY
'"a!
is
whenever the government loans—
instead' of his own, as is the case
when; the
citizens make the
' A* M. Gottschald,
By
:/'
New York, N. Y., September 26, 1945
...
a;;',;:.
.
Secretary
loan
ac¬
has
from.
begin by saying that
up to* this time there is no-ade¬
iinstead of the government.
It is also reported—I believe
curately — that: the- government
been' said, in criti*- importuned- loans* were
accepted
cism; in derision; even in* con^ by the foreign governments, con¬
cerned with no idea or intenti on.
tempt of the lending^ by citizens
of «this country, to foreign count- I their part ( which was more or less
v
might
,
therefor.
Ours
entered
we
I
■.;-■/■
that
170% of the force that invaded the
] continent to make
document
,During: War-
ever
repays
Purpose of* Making: Foreign Loans
The purposes for which a
is made' is
another
carefully considered.
respect to
partments'
our
them;
of mind, stilL continues.
tain .that the
one cam
be
With all due
who
be reasonably
OFFER OF PREPAYMENT
loan
to
governmental
and* those
ing them: and, it is said; that: frame
-
matter
de¬
man
cer¬
dominating element
Holders
interest to
office of J.
desiring to receive immediate payment of.the full redemption price including
January 1,1946, may do so upon presentation and surrender of said bonds at the
P. Morgan & Co. Incorporated, in the Borough of Manhattan in The City of New
York, with the January 1,1946, and subsequent
coupons
attached.
„
FINANCIAL CHRONICLE
THE COMMERCIAL &
2588
Thursday, November 29, 1945
,
Public Loans to Foreign Countries
Stocks
Bank and Insurance
19423
VAN DEUSEN
By E. A.
This Week — Bank Stocks
^
64y4 Asked,
Manufacturers Trust, 64 Bid 65V2 Asked. On Nov.
and
quoted
higher than Corn, until about the middle of November, when again
their relative positions were reversed.
The following tables show
the high and low bids each year of each stock, beginning with
1939, also the 1944 year-end bids, and the high monthly bids lor 1945.
Cora
Low
bl %
:
High
.
"■
•-
46%
56
44%
55Yh Bid
57%
*
57% Asked
12-31-1944
-
57(4 Asked
—_
___—_
59%
iV-i'v;.:
58% iSp?
57%
July
___
October
_—
64
63%
—
.
statistical comparison,
each bank. ' < '
30, 1945 statements of
la.
Ratios—
.
—
O. \
.
$41,250,000
$15,000,000
profits--—--4--- —_r24,551,000
——i——
—744,295,000
;
•••'
•.
*
'<
based on
; •
Manufacturers Trust
r I;"' -/VCorn Exchange
Sept. 30, 1945— r-v?-.
Capital
Surplus and undivided
Deposits
62 Bid—64
interest to turn to a
It is now of
the Sept.
Asked
Asked
64 Bid__65%
Asked
63 Bid- -65 %
1945
21,
Nov.
.
64%
61%
62 Bid- -64 % Asked
1945—_
1,
.
p Y
60%
■_.*
'
-
.
66% V
'<
58 >4
September
Nov.
1
.
56(4
: >
'
18.4
———■—■------i-L '
Deposits
assets—
Earning
Bank's Assets
J—____—_
.—
.,
%
Government
S.
XJ.
-r^'vc
.r
992.40
828.79
'
,
"t
.
59.3
5.3'
With
-—t ■"?>-"—rr-
■f
Looking
with
a
critical
e-Zlj.
-r
itself
hnwpvfr.
itself, ' however,
-it
first of all
we
considerably larger banking
little, for
and'promi¬
The next point
institutions.
nent
to observe is that
Manufacturers has a slightly high¬
insti-
of significance
earning power leverage,
er
Offering
means
large
both
they, are
Manufacturers is a
that
observe
eye,
This fact by
means' little, for
comparisons «tution than is Corn.
these
at
Wanted
earning assets to
ratio-of
funds
Shares
.
(book value)
Boston
of-16.0 com¬
that Corn has a higher
idle
of
20.6%
Members
and
\
Securities,
Exchange
New York Stock
WALL ST.
Government
more
but,
what
is of
even
NEW YORK 5
low in loans* and discounts,
which
we" must
In the first
for
But
V
BANK STOCKS
It is
Dec.
of interest to compare the
now
the
over
$ .of market.__^_",___r___
31, 1939.
:
I
9-30-45
12-31-39Value
"Deposits
S.
"Loans
338
"Earning
' 744
544
of
It will be
growth
189
395
1,784
dollars.
of
outstripped Corn
since
book^value
On
dividends,
present
earnings,
relation
in
to
;
vigorous growth trend
^Bankers
would
appear
the latter
investment.
J. S. Rippel
hy
YORK 5, N. Y.
Established
18 Clinton St.,
BArc.lay 7-8500
A.
& Co.
1891
Colony
<
Subscribed Capital
Reserve
Bank
N. Y.
Gibbs, Manager Trading Department)
Newark 2, N. J.
Common
-
/
—
Sold
a.
COMPARED
f
incorporated
INVESTMENT
(P. C. T.)
Orders solicited.
300 Montgomery
Chicago
TELETYPE
L.
'
NEW
.,
-
A.
/.
Teletype SF 431-432
,
San Francisco
-
L.
A.
Capital
£8,780,000
u
6,150,000
Fund
Liability of Prop.- 8,780,000
THOMAS
280
-
Seattle
1
OFFICES
IN
PRINCIPAL
CALIFORNIA CITIES
30th
___£208,627,093
BAKER
HEFFER,
General Manager
;
Head
Officei
George Street,
SYDNEY
LONPON OFFICES:
29
and Chicago
£23,710,000
'
♦
Aggregate Assets
Sept.,
1944
650 South Spring Street
LOS ANGELES 14
Teletype LA 533
Private Wires
Los Angeles, New York
„
Between San Francisco,
WIRES
279
WALES
SOUTH
(ESTABLISHED 1817)
.
Company
SECURITIES
Street
SAN FRANCISCO 20
St., Los Angeles
PRIVATE
-
available upon request
First California
*
V#w York
BANKOF
:
CALIFORNIA
210 West 7th
and Executorship*
also undertaken
Reserve
BUTLER-HUFF & CO.
OF
description
every
and exchange business
Reserve
-
to 5 p. m.
m.
Inquiries invited.
Quoted
•
Paid-Up
Special Bulletin and Booklet Service to Dealers & Brokers
Trading daily 7
conducts
Australia and New Zealand
Quoted
~
REVIEWED
-
Bought • Sold
Prospectus
Insurance & Bank Stocks
Bought
Stock
.
.
Phone-^REctor 2-4383
t
ANALYZED
£4,000,000
_£2,000,000
__£2,200,000
Fund
banking
Corporation ; /
,
India, Burma, Ceylon, Kenya
and Aden and Zanzibar
Trusteeships
it Kaiser-Frazer
MArket 3-3430
Bell Teletype—NY 1-1248-49
(L,
In
Branches
to be the more at¬
tractive long term
Uganda
26, Bishopsgate,
London, E. C.
-
by Manufacturers Trust,
the Government in
Office:
Head
.,
Telephone:
to
Kenya Colony and
evidenced
The
Members New York Stock Exchange
a
of INDIA, LIMITED;
'!■
But, in view of the more
stocks.
Paid-Up Capital
Laird, Bissell & Meeds
States
United
NATIONAL BANK
^market
current
prices, there does not seem to be
much to choose between the two
c
180 BROADWAY, NEW
the
206
observed that Manu¬
of
In
realize?
judgment against the government
must normally be satisfied by a
109
582
the gold, and theTe
us
Congressional appropriation,. and
experience shows this may take
two generations or more to se-
360
74
182
has been substantially greater.
basis
1,299
46
622
1939, while its percent increase in
deposits, Governments, loans and
discounts and total earning assets
the
282
316
—
170
221
assets
of
50%
26
disc.
could
hardly
public treasury to
would
probably
be no gold
there to
fetch.. You might say:
Levy on
the national palace or the capitol
building.
But how would you
officer
break into the
% Increase
2,056
and
forcement
fetch
$54.06
763
successfully prose¬
obtained, how
recovery be had.
The en¬
could
8-30-45
$36.05
suit were
if
Furthermore,
brought
cuted and judgment
$13.50
___——Manufacturers Trust
120
131
______
Govts
and
___
16%
worth, so this would hardly be
practicable measure.
.r-.;,'
be
\
growth trend of each bank
% increase 12-31-39
$52.73
$45.42
_____
sue
the latter's
in
not to say, discourteous
proceeding, that merely the bring¬
ing of the suit would arouse more
resentment than the default might
a
'
'
v
:
starting with balance sheet figures as
' .'V / V,
——;—Corn Exchange
Book
-
past few years,
book values and interim
THE HURDLE
of
$0.85
:>V $12.70
per*
sovereign, to
one
courts is such an unconven¬
tional,
8.5%
V
"
£amipg assets
in
NEW JERSEY
v
$0.81
place, in theory, you
sovereign
another
3.8%
7.0%
.
defaults.
going to do
some
we
might be able to bring suit in the
debtor's
courts for
the
default.
prices the two
3.7%
;
are
Well, the custom of nations is
pretty well crystallized on this. C;
64
,
the
;.7,:;•.'"."/.:
about it?
Trust
v.
with
and
expect
what
Then,
it.
,■,
v"
facturers has far
CLEARS
.ILL-.—
LL.—
1^44 earnings yield (excl.-security profits).,:
-
FIRE INSURANCE
.
to
"gimme" complex thoroughly imi
bedded in the international mind,
stocks compare as follows:—
of total as-
represent only 5.8%
'
At current asked
record
that
With
Manu¬
G5%
"Millions
Telephone DIgby 4-2525
facturers.
$3.51
already* indicated
debtor countries owing us money.
earnings per share
Corn and
$3.63
have
issue six out of every seven of all
we
months
nine
first
the
For
1945 indicated
are
Loan^
of
the loans are made,
money
expended prop¬
Dec. 31, 1944, there were
default on one or another bond
in
we
EcoL'Value- per $ of 'market-.
*U.
greater significance, Corn is very
leading exchanges
other
has
also
Corn
is,
price
Dividend yield
qow.
you, on
Manufacturers
Manufacturers.
for
18.0%
wtih
it
them,
spend
to
and
Corn Exchange
percentage
representing
assets compared
total
of
is
cash
funds,
regardf-to earnings, in 1944
reserves,
capital
important point of comparison
Insurance Co.-
money
with a
pared with - Corn's 15.7..! Another
spare
^
I
As
Were
amounted to $454
per share, and net security profits,
$1.01.
Manufacturers Trust's net
operating ' earnings,' before' re¬
serves
and
adjusted to its new
fore
to
that.
do
to
capitalization of 2,062,500 shares.
equivalent to $5.46 per share,
and net security profits, $1.94.
for
18.1%
Corn's net operating Earnings, be¬
Asked
50
*
Manufacturers,! ;
18.1
V
.
compared' with
sets,
also our power
the nations";
none
erly. What about collecting the
loans, for we must assume we are
not intending to give the money
away—we are hardly in a position
would think we
could
go ; into
another country,
with
our
supervision,' perhaps
equipment, and construct some¬
thing they might or might not
want, and then send them the bill
to
pay. ' Such
an
arrangement
: they
when
—
not
among
have
the
and
own
18.0%
»- .i*
or
stolen
—
retain
That
have been frit¬
completely, sub¬
purposes
away
„
we
Collection
865.16
69.T,
securities-.^?-
tered
verted
996.70 \.
1
and discounts---
-
the
will
■
;
that the
sure
certain countries for pre¬
scribed
•'
20.6 %
Cash
Loans
$54.06
$52.93
.
/
be
we
over
lent will be spent for the
to
lent
16.0
,
-————--—v
shall
How
would
we
But suppose
will not turn
again will say, we
bene¬
prima facie
purposes specified. Someone will
remember that in the past, money
•
i.7o
'
value
similar
of
"
Surplus and
Book
list
prestige
and
comes in:
No sovereign state per¬
proposals are mits another sovereign state to
come into Its jurisdiction and ex¬
made to make these government
and
loans
to
foreign
countries, we ercise sovereign functions,
there is no higher sovereign func¬
shall be told they are for this,
tion than the direction of the ex¬
that, or the other humanitarian
purpose, or for bringing the bless¬ penditure of sovereign funds, as
ings of needed transportation, or these loan funds would be when
for
indispensable port facilities, they gave us their IOU's, and we
or to
increase production so that turned the money over to them.
the
standard of living shall be The public treasury. is the life
raised, and so on through a long blood of every state.' But some
ficial enterprises.
and
us,
and
the
when
moneys
2,055,638,000;
■■
undivided profits to capital__~_y\
1.64
Deposits to capital funds
____—.—.v.
18.8
Earnings assets to capital funds———15.7
Per Share—■
•
A
• •; .•
principle of sovereignty, and
in principle the non-infringement
thereof by others.
:
v
70,257,000
.
admit
we
towards
shame,-and discredit us be¬
fore the whole world. Already we
are being twitted about tne waste¬
ful expenditure, some call it by
a worse name,
of UNRRA funds.
But this is where sovereignty
the
But
64 y2
57
show
to
little nation
us every
world—for
with
I want out of the state¬
is
a
big nations thusly. This
would mean the complete destruc¬
tion
of
international
good will
blush
scandal that will make us
a
be.
such a
set-by-the!
would
treat the
Of
tures, and if we undertake it, we
shall sooner or later be faced with
other countries.
now
say.
the
in
for%
sovereignty,
as
against
ears
ciently to supervise loan expendi¬
Indies, India, the Philippines,
But all
we
of
violation
shall not be able effi¬
we
course,
violation
Our Excuse for Government Loans
Trust (Com.)
58 %
54%
doubt
in
us
and
58%
547/8
—--
___
leave*
beginning,—unless we used
and that
would obviously
But we can do
else,
infringe^
an
upon their sovereignty.
So
would be back to the place of
we
in
moneys
own
our
country.
own
somewhere
it
Presi¬
East
ments
spending
our
Porto
Boer
(Com.)
Low
32%;'
'
55%
February
March
in
as
ment
the right purpose.
Of
course, we have not been too pro¬
ficient ourselves along this
line
Rico, Egyph and the
/South
Africa,
tl(e Dutch
about
whole transaction
for
spent
sovereign
dictum
dent's
57%
;57%
in dilute para¬
Both the Charter and the
^.y-(;'■
''
—.—
Jhe
that would repudiate the
another
problem will be answered
by the affirmation that we will
supervise
the expenditure, we
will see the money
is honestly
by force."
27%
<
27%
26V*
34%.
45 y»
54% Bid
'■-•••
194(j MONTHLY HIGH BIDS
•
T
.Corn Exchange
,
\ Manufacturers
January
■:
;
35%
37
V
"v-A!,;
40
1
28
23%
—
47
'
407/8
~
37%
'
.
43%
49
41
6i% V-
1
lo<±u
Manufacturers Trust
Exchange
Hierh
1S39__'_
Manufacturers has been
This year, however,
margin.
try that would overturn the bor¬
rights and
self-government
to
all peoples
who have been deprived of them
of
return
rowing administration and install
Funds
phrase of the Atlantic Charter:
"We
believe
in
the
eventual
the two stocks were reversed, Corri being
62-64.
,
;
" "
During the six!'yeah period 1939 to 1944, both inclusive, Corn has
invariably sold higher than Manufacturers, and sometimes by a very
21, the relative positions of
63-65V\ and Manufacturers
wide
Supervising Expenditure of Loan
This
deprived 01 mem."
In his Central Park speech,
President declared,
would almost surely precipitate a
revolution in the borrowing coun¬
nation.
rowing
lorcimy
quoted 62 Bid and
Corn Exchange was
1 of this, year,
On Nov.
bor¬
of the
confines
the
reached
(Continued from page 2587)
government under which they will
.Ivc, ana iney wish to see sover¬
eign
rights and self-government
restored to those who have been
Threadneedle Street, E. C. 2
47
Berkeley
Square,JW. 1
Agency arrangements
throughout
with Banks
the U.
S. A.
J
:
.
I
Volume
162
So
the
cure.
out. *
Number
court
•'
In
route
;
theory,
THE COMMERCIAL & FINANCIAL CHRONICLE
4442
seems
-you
into
run
rule
that
between. tort
distin¬
for
example, claims for personal in¬
jury or ; destruction of property,
and ..contract
claims,
including
bond claims.
ercise
claims,
Governments do
diplomatic
<
ex¬
in be-
pressure
half of tort claims, but not usually
contract claims, because the
-
for
latter-are
remedy
supposed
in
the
have
to
courts.
But
a
-
certainly
/- L
are
of
run
ments
existing
are
such
been
warrant
will
their
govern¬
and have not
the years as to
assumption that they
their debts except as
convenience
The
bulk of
bers
are
the
suggest.
may
debtors in
num¬
us.
ury
government
not
unless
to
.
facilities
avoid
to
pay,
payment.
Governments
,
v
but devices
■*:/
:
.
debtor
now
to
us
we
and
each
we
may
be
forward
go
both of these
bases,
on
we
ventional
of
or
in
privately pur¬
bonds by persons
the
: hazard;
it
by Treasury
lendings with taxpayers' money
whether that money be obtained
by further taxation or by the sale
should
our
tions,
no
position to make loans to foreign
may
be
not
done
government
own
by
or
directly by foreign governments,
guaranteed by our own gov¬
but
ernment.
Jas. Brown Sales
of
way
foreign
willing to take
say,
either
are
national
•
further
chased
desirable,
ruinous, I
our
/>
.
financing of
foreign governments is to be done
by dollar lendings should be done j
only by lendings made in the con¬
bonds—neither
of which alternatives is
..
Whatever
stantially raise, not lower our
taxes,' or resume ;our peace-time
deficit
spending—that
is,
float
more
from
governments
funds.
r
nationally to *make Treas¬
loans unless we either sub¬
and many have been
for years, in default. They show
no inclination to pay.
They seek,
now,
.
.
sition
over
an
pay
safe risks for further
now
If you add to this fact the fur-r
ther ones that we are in no po¬
debtor
not such
not
/,•■** Treasury loans from
•
The attitude and conduct of the
-
deeply imbedded
a
international
guishes
:
-
-
f
government
might exercise some diplomatic
pressure to get payment. But here
our
bond obligation can be
a
made/
.
2589
obliga¬
scheme
some
which
be proposed of bonds issued
For Mohawk
Mgr.
Valley Co.
UTICA, N. Y.—James M. Brown
has
become
associated
Mo¬
with
hawk
Valley Investing Company,
Inc., 238 Genesee Street, as Sales
Manager; /* Mr/ Brown
for¬
was
merly in charge of the Utica of¬
fice of the Smaller War Plants.
:
have
just seen how illusory this
remedy might be.
It might be
here
said
that
i
claims,
bond
bottom
of
of
all
claims
the
list
contract
the
at
are
H;,
to
diplo¬
matic intervention. So diplomatic
pressure
is
out.
We : call
this
initial
pressure * unofficial ? good
offices.
••:«/ /./•<;
^
*
-■!. ■''.
*
'•
;
.
i
"If
as
..
■
.
..
■. •
nothing happened from this
the next remedy in or¬
pressure,
der
would
tion.
But
be
formal
representa¬
since
sovereigns would
be involved on both sides,* it is
hardly likely formal representa¬
tions would accomplish anything
where the informal had not.
:
Your next step would be break¬
ing
off diplomatic relations, but
again as sovereigns were di¬
rectly involved, the respective po¬
as
sitions would have been discounted
long before this, and each would
probably stand pat. ;//./
V?
The
foregoing having failed we
ask " for- arbitration;> this
"could
could have been
had
been
party
done earlier if it
considered -by -either
desirable, that / is,' if the
proposing .- it felt it- could
certainly win.;;v//-/,/>c>:i
.
•
party
'
All
of
these
having failed, we
proceed to what are
could
next
called
measures
-
.
of force short of
...
,
;
You could first parade*the fleet
outside one of their ports,, if they
had
one,, to show5 how', big and
powerful we were. They would
probably - have
discountedJ that
long before this stage was reached.
'//If the fleet did not
scare them,
we might put reprisals into effect.
This could be worked out,- if the
debtor were an importer to us of
his goods, by sequestering his dol¬
lar, .credits
them
to
here. and*
repayment
But that would
with
trade
relations
Importers
make
that.*
that
Prussia
in
loan.
and
all
our
and.
try
tried
his
exporters. < would
much fuss, we. would not
so
likely
applying
of
seriously interfere
Great
Britain
against Frederick j of
back in those days,
.
way
connection
loan, but
with
the
Silesiari
,
it up.
gave
5
,
'
"
Then reprisal failing, you might
institute a so-called pacific block-'
,
,:ade
(as
did
The basis onflourishing business de¬
which the whole struc¬
of
pends is often the brain
European
Venezuela at the
powers against
beginning of this century). That
^enterprise caused the framing of
the
Drago doctrine „(Dr.. Drago
[was
an
Argentinean) that force
of
bond
I
The
which
particularly
for
to
forestall
the
eign
in
behalf
[citizen
whom
of
of
his
sover¬
or
sovereign
injuring by violating con¬
rights, another Argentinean,
Dr.
Calvo, formulated a clause,
Since bearing his. name, by which
?;was
tract
the
alien
Covenant
concessionaire
as
granting of
condition
a
to
was
to
the
his
contract, that he
relinguished all right to the pro¬
tection
of his government
nection
with
the
contract
in
con¬
or
any
violation thereof.
But all the foregoing remedies
failing, the final remedy is war.
In the last analysis," that seems
the
only real sanction which
f>e, effectively used-against,
calcitrant
lions
or
lions
of
question
•
debtor.
100
But
millions
debt worth
answers
known
tions
by
in
10
V.
proper
the
tion of any
department of
your
the
Could you
/;/'
business
man
cripple
prepared to
sate
for the loss
—
key
a
can,
it when it is needed.
in
man
however,
pay
underwriter will
a
Business
and will, if you have
.
;
_
fitted
the
to
organization.;
a com¬
LIFE
mine,
S P Ii I \ i; F I l L U
Mutual
gladly discuss with
Life
i
your
compen¬
An experienced Massachuset ts
a
' :.•■/ /;,r;,:• '
immediately find
the death of
organization. It
opera¬
be facing today, if he had died
last week? /.
you
Business Life Insurance cannot pre¬
key man's life? What problems would
lyou
em¬
higher salary that it might cost to
vent
/
the; slender thread of
upon
your
fill the vacancy?
—financial, production^merchandising—
depend
business? Are
your
or even
/Does the continuing successful
re-^
Insurance
requirements
you
program
of
your
'
INSURANCE
M 4 s s A f H
•
COMPANY
II S n t 8
mil¬
bil¬
That
\
•
"V »■'
rela¬
collection
delay in finding the right
of these
long and
.-//v////
~:v
whom
for
and
ployees would work efficiently? Would
men.
safeguards have been provided
[in advance./;..
your
proced¬
international
which
can
a
100
war?
no
a
of readjustment,
process
itself.
So, in fact, there is
ure
is
or
a
be followed by-
may
in whom
one
—
bankers and customers would have full
excuse
a
subject
another
-
few key
by termination of the business, unless
legal
a
interposition
any one
untimely death of
costly
has
ought to mention here that in
order
power, person¬
a
men
since insisted upon.
even
/
debts,—a doctrine
America
confidence,
a
ality and influence of
shall not be used for the collection
-Latin
petent successor
ture
certain
of
,
'
•"
■"
.
'
.
.
■
•
,
.
•
...
■
•
■
Vj.
*"=
,
.
- '
.
*
*
r«v«
:•«
•
r
«
»
,
*
*
k
allow
largest markets, and when
Britain doesn't export, she doesn't
their
perity only as "the United States
willing
to participate more
freely and intelligently in the
As a condition of
participation we should make
it abundantly clear anywhere that
the United States wants the op¬
that
sort of
the controlled
of
posite
trading under which the govern¬
ments of nations have so frequent¬
In pre-war
resources
our
produce food and other essential
consumers items to the production
of war material and the fighting
•
.
Economic
cut down
could also
She
into
go
the
wasteful
use
I suppose,
owners
that
keep
whiskey
have
and a more favor¬
able export position abroad. It is
assumed that such plans will cer¬
something
heard
all
not going to be able
situation realistically
people realize that the
United States cannot accomplish
the task
alone; she must have
emphasize that these exports were
cut during the war to about onethird of what they had been nor¬
v.•
we are
to meet that
unless
our
winning the eco¬ mally. Put in 'another way, and
she required this is what the British business¬
strong allies in winning the fight¬ man sees, she gave up two-thirds
of her overseas customers, and
ing war.
■ -.V-'/.
The only way,to bave strong al¬ most of these were supplied from
Where ten
lies on the economic front is to be the United States.
alert to the necessity for provid¬ million workers had served her
ing
the
conditions
for
strong peacetime civilion needs, she could
growth, not only abroad but at now get along with five million,
Home as well. What happens in in considerable part because of
the United States today
is no our help. That was one of the
longer our concern alone. The cur¬ reasons she could manage to put
rents of prosperity and depression one man or woman out of every
jwhich leave our shores can easily four in the national labor force,
become tidal waves that profound-, into the Armed Forces, and on top
ly affect the well-being of the rest of that one man or woman out of
strong allies in
nomic peace, just as
-
clothing restriction. Rough¬
involve large amounts of
improved machinery,
new
and
better methods and, what is im-?
tainly
than before the war. As of
V-J day that has been still fur¬
ing
portant, the effective use of both
by men and management.
This wasn't too se¬
ther reduced.
years,but as the
/
This is the same kind of plan¬
war stretched out, closets became
thinner and thinner, and more and ning for peace, that nations have
found
vital
to
success
in war.
more
people increasing thread¬
There is nothing inherently inef¬
bare.
I must say, however, that
ficient in Britain. Any such asser¬
a
fairly balanced and well-ad¬
tion must be denied. Some of the
ministered rationing system dis¬
newer plants that the British built
tributed what they had with letrious in the first
tie complaint.
'/
for
:e'\\/,'//;
;
While this curtailment was tak¬
know
jof the world.
every
for
have many times
said, clearly recognize the simple
fact of our overwhelming strength
~T-a strength
at this moment so
greatly in excess of that of any
i We must, as I
three into making weapons
victorious armies, theirs
Put in another way, she
the
and ours.
fighting
able to put in more
was
men
as
put in more material.
we
place there, we and Canada
consuming not less but more
ing
and want in the most
were
and
clothing,
was
for
much shorter.
The
of /household
production
repayment/ but much more so as
bearing on their likelihood of re¬
goods in the UK was drastically
cut.
Floor coverings,- furniture,
kitchen utensils and the like, they
reduced
by
side
our
there
over
crease
than half.
more
gaining a'strong economic
Now it is
.
that
with} these gigantic
faced
problems at home, the British
national have made it clear that they would
other country or any likely group¬ however, Britain could not have emergency, paftly from the same prefer to carry on in peace in the
ing of countries, as to be a matter made the great contribution to pressures that ;we encountered, same cooperative I spirit in which
pf grave concern to the rest of the winning the war which she did largely, however, from enemy ac¬ they did in war. They have taken
world.
j
f.
make, without sharply tightening tion. Millions of homes were dam¬ an active and constructive part in
Europe, Asia, and the Far East her national belt. It has been dif¬ aged or destroyed. Think what it the relief and rehabilitation prob¬
have
suffered
incalculable
dam¬
With all her
outside assistance,
what she did in
ficult to compare
in production facilities, in
housing, in lives., Their standard
this respect with the performance
here and in Canada, but the Com¬
of
bined
fallen
Board
age
living, never up to ours, has
sharply; the means of re¬
couping those losses are unclear
They
cannot
overlook,
and
To
ours.
this
simplify
comparison, it is not I think in¬
accurate to group all the European
and Asiatic world
the
on
First
and we
should not, the sharp dissimilari¬
ties between their economic situa¬
tion
some
Resources
attempt
relative evaluation. Let
made
has
at
an
me
one
side
to
as
ing after six years
Britain they fell roughly between
Here and in Canada
15 and 20%.
actually rose over 10%, a
25% disparity, and a very
-they
20
to
or
impossible
obtain
to
furniture to put into
of
are
during the war,; they have made
further sharp sacrifices in their
as
war
in greater need. Any
objectively to evaluate
their post-war economic policies,
will not fail to give
them this
credit.' ;
"
L"'. /
United
States
on
the
her belt, to re¬
help from
spite of fhe many
things some of us didn't have, we
had more civilian goods in total
events, they
ion
expedients
which from this distance, and in
embarked
have
further. The point
that
large figure in the economy of a
which I want to make now is
In
the
the
of-
ending
atmosphere,
our
here unwise
seem
to
many
and unnecessary.
In
war
v
ployment
is
not
likely
to
cause
those national leaders their sleep¬
less nights.
*
y
i : Now
for
to
turn
dramatic
tioned
credit;
known gold
the United
contrast.
the
reserves
production machine twenty bil¬
lion dollars larger than at the
outbreak of the war; plenty of ma¬
terials
tion
and
of
the
labor
greatest
and
aggrega¬
we
shall
work for all
our
a
be
able
people.
to
find
Is it
any
wonder that the rest of the world
looks at
us with apprehension and
uncertainty? ;For one thing is
quite clear, and that is that Amer¬
ican post-war economic and po¬
litical policy can profoundly af¬
fect, for better or worse, every one
of those
hundreds
lem, because it is
troublesome
difficult of
new
millions
of
of
To
the
British,
in
as
of her most
and
most
one
solution, I apprehend.
has
served
far
Britain
a
particular
example, our economic policies are
mining industry, but
I have* seen, it hasn't
as
ending of the war gave him free¬
dom from those
but not much else.
bright.
...
the
For
debtor
to
-
the
maze
unsatisfactory' performance of
labor
and management
ernment.
Coal
and
gov¬
is
important to
Great Britain, because it has for
a
long time been a large export
item, apd its cost plays a big part
in the efficiency of another
major
item, iron and steel production.
The cost of British coal has dou¬
bled during the war, and at the
same
has
time
fallen
little
the
tonnage produced
sharply. Britain will
coal
to
export
in
the
immediately ahead, and its
cost is
make
nomic.
likely to be
evqn
those
I
so
high
sales
won't take
the
as
to
uneco¬
time
to
^
time,
rest
of
he
the
^
.
from
.was
!
a
world.
It
_
Our
seems
Enterprise
Free
to
me
that this line of
reasoning is not' only unwise, but
dangerous. -At -root the British
are the. same sound liberty-loving
that
people
How
are.
we
work out their-own critically
ficult problems
ness,
own
dif¬
is/their own busi¬
precisely .as we
domestic solutions
iness.
they
I do' not
see
regard our
as our
bus¬
how genuine
friends Of democratic
government
Of -his by the people can take any other
savings through the sale of position and? I -wonder if they do
wonder, for it is
complex
A,
far
-
first
world
a
;
looked
future
The
He .had' lost
of
frightening fears
six years,
that he has carried for
said how it proposes to do it. No
years
Interest
a
notice that it intendts to national¬
have
people.
Our
one
ones
Government
so
seen;
that, our one con¬
by sharp contrast, is whether
not
to talk
The
Industry
stop here for
thing possible will be done to re¬
pair the damaged homes, but that
take years, and new houses
will be few and far between. The
moment
about Britain's coal prob¬
me
even
But with all
or
Coal
'
<
will
ize the coal
standard of living high and capa¬
ble of being raised much higher.
cern,
Let
management
skills the world has
*
British
Unques¬
a
heat to sup¬
plement that.
States
bulk of the
of the world;
oil and gas
any,
a
large
It may not be so large
percentage of our whole na¬
turnover, but it represents
port trade,
a
tional
life
death
or
to • many ..industries
and many areas.
f1
superficial
reduction of
mean a
part
trade to
;
is
trade
must
This
our own.
so
much
go
around and enlarging
one
that, of
country automatically
/•/, L"
reduces that of others.
//'.'It is
to
in
that
other
and
tation
from
come
the limi-*
of
growth
business
port
nations can
our own case
the
on
a
is
Britain
Great
exporting'
In
handle.
of
economy
the export busi¬
and
we
a
world
proportion, and
world
balance
there will be all
ness
of
needs
conditions
such
under
better
think,
wealthier
and
expand
that
the
that
reason
healthier
must
intelligent, I
more
our
ex¬
likely to
more
unwillingness
our
or
inability to accept sufficient off-,
setting imports. '' /'
; •; /,
J
Now
you
may /conclude
that
much of what I have said today
_
only goes to prove that many con¬
tend, namely, that Britain meeds
us all right, but we do not need
and that I arrive a|
lim-<
considerations as only these
that conviction from no such
ited
of
sympathy
real
very
admiration.;
or
for
need
our
No,
i^
strong Britain
a
We, in the United States
today, whether we like it or
one of the greatest forces iri
must carry
a large share of the responsibility
for an orderly world.
No nation
in the
world is more likely to
stand shoulder to shoulder with us
are,
not,
the world, and as such,
responsi--
that almost terrifying
m
We
of
come
he
their
.own
cause
by any
planning of the fu¬
^he must. No pos¬
sibility there, today, for the risks
most
a
certainly compel Britain to
larger degree of
economic isola¬
swinging with her the
inevitable to the working of the neighboring nations in the north
of Europe and as well, of course,
free enterprise system; insfficient
dollar exchange to permit her cit¬ those Dominion areas and others
so-called "sterling bloc."
izens to purchase where they want in the
and insufficient total resources to 1 Then we would certainly find our
tionism,
we
read
have
same
tradition; and in saying
an instant, un¬
the necessity for/ a
ideal and
I do not for
that.
derestimate
sharing
similar
responsibility
of
those other nations of
by all
the
world
likewise concerned with us
in
assured
an
peace
orderly
this
and
international relations. But in
dis¬
relations
today we are only
meeting
cussing
economic
our
Britain and what the
States should do
about
with Great
United
There are, it is true, many
those.
made on usj
to what we
can afford to do, but the problem
of assistance to Britain is with us
other demands being
is
there
and
limit
a
today and it must be settled.
Let us take first things first.
we
have any
4
If
faith in human prog¬
ress/it must include the faith that
Britain will regain her prosperity
and her rightful usefulness in the
world. Therefore, anything we do
help Britain today is not money
away. Jt is a sound in*
in? a business partner,
to
thrown
vestment
have
should
it
and
restrictions.
nesslike
may,
nob hurt
stock,
same
language.; We
the same literature, and we
the
same
background of
the
speak
British.
of
<
Britain.,, I hope that I have made
clear that my pro^
found conviction • is precisely to
it abundantly
we
Two-thirds
precious shipping had been such threats. Tndeed, as Walter
his home costs were high Lippman so aptly pointed out, the
and the job of getting back his one way to assure excessive so¬
cialization in Britain is to with¬
pre-war markets, without which
he simply could not live, was a hold aid that would otherwise be
normally available. It would tend
long and uncertain one.
throw
the control into
the
It was in this atmosphere that to
Britain faced the ending of Lend- hands of extremists; it would al¬
For plan
\
resumption
a
theory that there is only
sunk;
ture.
v..
would follow the.unhappy scarcity
his
Lease and the
>
•
conclusion
frequently met that
of
Britain's
export
numerous
abroad.
•1
•
,
/
The.
■
j
~
Larger British Exports Not
Detrimental to U. S.
.t
be
securities
on
bility than Great Britain and the
In the swift rush of
abroad, to make her greatest con¬
tribution to victory. You know I
could go much
country.
em¬
great emphasis
lay
ployment
the necessity for a substantial ex¬
British Commonwealth of. nations.
doesn't certain-quarters this development
other.
bring these sacrifices to an ap¬ has giyen such cause for concern
!
than ever before;
proaching end for the citizen of that suggestions have been made
They have suffered heavy loss
Britain was cold during the war Britain, as it does for us. He still that we refuse any aid to Britain
of life and property; their assets
doesn't have gasoline for-any con¬ at this
and she still will be this winter.
time on the ground that
are drastically reduced; their pro¬
siderable driving, even if he has it would in effect be a contribu¬
duction facilities are sharply im¬ Each household in the southern
a car; his clothing ration has.ac¬
tion by us to the ultimate destruc¬
paired. They are literally short of part will get up to one and oneeverything. The one thing that is half tons of coal, and for the tually been- cut since the war tion'; of .'our own' system of free
ended; he won't have much more enterprise. ' ' / Z■/''/
not like to be a problem for them
northern and colder part, two and
V/;/
\
•« /A ..-V
food this winter, and I've told -you '-'•v
Is work for their people. Unem¬ a half tons. There will be little,
about his coal. He knows every¬ British Policy Not Destructive of
if
the
and
problem of maximum
of pur
attempt
for
need
foreign markets for our merchan¬
dise. The best analyses I have seen
neighbors
it.
only typical examples
to tighten
her
duce
living standards, to help their
own
or
Britain has done during
what
the
roof
a
Again,
lems of the liberated areas.
of ab¬
so
to his wife or the girl who
waited for him, only to find it
sence,
These
living standards: In
a
to the service man return¬
means
outline that briefly.
uncertain.
and
and
Production
became
Housing
own position in the world market
infinitely more difficult. For we
shall want a place in these same
the contrary,
important to recognize
-V
pre-war.
position
*!"■*}
worldwise.
On
in¬
an
even
was
urgent sort
find a remedy; This is
highly important, not alone from
the narrower. viewpoint of a loan
of way to
period
the
us#
;:/';
production are models of
And the British today
where they are inefficient
war
efficiency.
,
j
Goyernment to certain in¬
at home,
ards
You
ly speaking, the man and woman
in Britain had a third less cloth¬
''''V.//v;'/
brought the -new
proved output, better living stand¬
mentioning.y
worth
was
of the
on
Front
.
to
might take over teresting steps/ In five .areas of
their properties—these and many production, they propose to en¬
more
glaring inefficiencies have courage early action. Tripartite
combined to bring about a situa¬ working groups of four scientif¬
tion in coal3* that has confounded ically
trained - men" .selected' by
British administrations long be¬ government, four representatives
of management, and
four from
fore this one.
labor have been brought -together
Other export items that were
in each of these industries; they
sharply reduced during the war
are directed to frame and put in¬
were machinery, vehicles, textiles,
to effect the best possible rear¬
and
a
great variety of miscel¬
rangements that will assure im¬
laneous items, of which
imports, food in particular, were
v
,
.has
failed
the Government
being provided partly from us un¬
der Lend-Lease and partly from
some
of the Dominions.
Let me
!
i ; But
have
which
pace,
British
day
some
they
.imperative need for a pro¬
of modernization in those
gram
the long-standing fear
of the mine
purchase all
v
industries
part of that,
a
The
.
mech¬
inadequate
as
to
■
Reforming British Industry
detailed reasons; a
of labor and low out¬
put per man;
anization, and
exports, because many of her
her
Must Have Allies
that had been used to
man-power
It is the firm pol¬
forces.
■
a
sible.
icy of the United States to do all
within
its
power
to eliminate
trade barriers and trade restric¬
tions.
available to her,
vitally different program was pos¬
She could now divert that
actually con¬
ducted, :the overseas business of
ly dictated, or even
their nationals.
her import
things she
home and
to others
abroad—made up a most impor¬
tant part of her national life. Dur¬
ing the war, and particularly after
we set-up Lend-Lease and made
times,
and export trade—the
bought for her use at
the
things
she sold
eat.
is
world economy.
significance. We are
of the utmost
(Continued from page 2571)
nomic peace and internal pros¬
them
want./
Britain's Economy
Our Stake in
Thursday, November 29, 1945
CHRONICLE
THE COMMERCIAL & FINANCIAL
2590
sound busi-;
in fairness, ask
This is
will
There
which
concessions
a proper
of the
time to
advance them. We have never
shrewder
than
or
those
these
who
are
discussions
and you
in charge of
from
and I can have
confidence
had
wiser representatives
in) their
sid^,
complete
our
ability
and
judgment.
This
is
one
of ,the costs
ning the peace.
it
as
high, but it is not
the cost of not
of win¬
Some may
think
nearly so high
doing it.
,
Volume
162
THR: COMMERCIAL & FINANCIAL
'
Number 4442
other dentist
The Investment
(Continued from page 2573)
Jication, which are /commonly
y-
considered investment companies;
certain large holding
companies
would therefore be excluded,
It
tv
may be remembered that the
American investment com¬
first
dating back, to the 90s, was
closed-end fund, as were all of
pany,
:' ,a
/.the even older, larger and numer¬
ous English and Scottish Invest¬
ment
Trust
days.
The
Companies
vast
of
majority
those
of the
successful and unsuccessful Amer¬
ican investment companies of the
in for "growth
stocks"; some go in for broad di¬
versity; others believe in rela¬
tively few holdings.
Greatest recent growth has oc¬
curred in the bond and specialty
Here
funds.
chase
investors
*
senior L securities
group have always, until this year,
exceeded those*of the open-end
To day, the closed-end
companies have assets of slightly
group.
under
.
■
.
;
billion
a
dollars
the
and
: f
open-end group of slightly over
*
billion.
/./
a
Closed-End Companies
Exchange
ties exchanges.
or other securi¬
An investor may
kinds
two
of
One
.commons.
kind would be that of
invest¬
an
ment company
debt
pany.
that had no funded
preferred outstanding—in
words, a non-leverage com¬
The other would be the
stock
of
leverage in¬
vestment
company—definitely a
speculative equity in either great
lesser
ing
there
a
never
would
all
Almost
.
-stocks
common
ment—on
the
stocks than
steel
ing
fund based
one
pro
class of share, never¬
shares represent a
such
rata interest in funds of many
varieties.
that
Assets
invest
of
the
primarily in
investment
common
in
funds
"blue-chips";
invest
in
others
of
some
the
.
well
seasoned advice from
hundreds of pertinent sources, are
the
trips,
far
beyond the capacities of indi¬
Yes, honest mis¬
vidual investors.
takes
made
are
by
Investment
managers/just as med¬
and lawyers occasionally
to the wrong conclusions.
company
ical
men
come
has
there
But
country
eration
over
grown
up
in1 this
the period of a gen¬
of /investment
company
managers
who are
knowledgeable and seasoned, and
who
possess
high
professional
ethics and sense of fiduciary re-j"
sponsibility.
■:. •;.? v ' V
Diversification and supervision
—these two principles, likewise,
have great bearing on one of the
a
group
desiderata
of
investment-r
reliability of income. Payments to
investors by/ investment compar
nies are derived from a sufficient
of j carefully
watched
to minimize the probr
ability of the well's-running; dry.
Closed-end investment company
i
securities
for
listed
various
on
the
most part are
securities ex¬
changes; while their activity and
breadth of market is very differ¬
ent from that of market leaders,
nevertheless
have
at
seen
any
The
the
last
few
years
them more active than
time
since
the
last
20s.
repurchase
shares in
stock
half
man-
up
Maj. R. L. O'Brien Jr.
Rejoins Folger Nolan
'•/ WASHINGTON, D. C.
mighUmake, that
provisions
of
companies place their
a
desirably liquid cate¬
to
Robert
American Security
Co.,
partment of the National Savings
& Trust Co. and later with A. S.
high1 Pratt & Sons.
of the Preferred Stock of
holders dated
/
Stock-
September 25, 1945, such Special Meeting was held
office of the Company, 117 Main Street, Fleming-
statutory
Hunterdon County, New Jersey,
on
Monday, November 5,
of voting upon a
1945 at 12:00 o'clock Noon, for the purpose
proposed amendment to the Company's certificate of incorporation by striking out
-v
lieu thereof
secure
'/A" pages
medium the same
guidance as
millionaire,
the
investment
company, in very real degree, rep¬
resents democracy In finance. //
this
through
&
Building. Prior to his association
with Folger, Nolan & Co., in 1937,
he was with the investment de¬
//'/" In accordance with the Notice of Special Meeting of
;
diversity and expert
was
a new
Article Fourth thereof and substituting in*
Exhibit
Article Fourth in the form set forth in
4 to 5 inclusive attached to the Proxy Statement
which
with the said Notice of Special Meeting.
sent to you
a
/■.
-yj
.
\
:
*
,fv; ,'■/.•>/ -i'
<
Investment Companies as
/
/
In
Stockholders
other
years
companies
may
own
a
of
of the Secretary of State of the State of New Jersey on
19, 1945, and thereupon the
;
r
For
u
.
of its
the
'
period of 90 days after such effective date the Preferred
of the following three options:
a
indus¬
an
(a) To surrender to the Company their shares of Preferred
Stock for retirement for $100 per share in cash;
:///.
(b) To convert their shares of Preferred Stock into shares
of Cumulative Redeemable Preferred Stock on a share
'
.:/>/'
for share
large holdings, bring
pressure
to
situation.
•
rectify
to
bear
small
A
November
amendment became effective.
Stockholders may exercise any one
corporation, and believes that
the management of such corpora¬
tion is not operating in the best
interest of stockholders, can, be¬
cause
certificate of amendment was filed in the office
; i v
/
trial
real
each class voting separately.
substan¬
very
tial portion of stock
powers,
The necessary
investment... company
cific,: .an.
which
as
To be spe¬
public stockholders.
voting
have had a
you
of 'investment
,
J
talk before this convention on the
role
At this Special Meeting of Stockholders the amendment was
duly and regularly assented to by'the vote of more than two-thirds
..-in interest of the Preferred and Common Stockholders having
j
*
holder could not.
stock-?
/a i
Today there are some 70 active
open-end and some 40 closed-end
companies.
The assets of both
groups together total over $2 bil¬
lion; shareholders number almost
a million.
: The
operations of in¬
vestment companies today are th$
largest single factor in the stock
,
basis;
To retain their shares of Preferred
(c)
rendering
.
will be
or
designated
as
Stock without
sur¬
and shares so retained
Non-cumulative Non-redeemable
converting the
same
'
.
This
market.
last
calendar
;
000,000.
is
What
the
most
important
single factor about any investment
company?
The answer -forevet
and a day is: "The integrity of the
men
who
run
it.".
The next most
important factor is the ability of
such men/. These two all-important factors stand out like beacon
lights -above some • minor pebble
on
the beach,, such as whether
some
company may
have
If you
a comma
/
■/
desire to exercise either option "a" or "b", you are re¬
quested to forward
Preferred Stock certificate(s) to the
your
Corporate Trust Department of Bank of New York, 48
Street, New York 15, New York, indicating which
options ("a"
*'b")
or
you
assigned in blank, either in the space
side thereof, or by sepa¬
such assignment
must correspond exactly with the name appearing on the face of
the certificate. Such assignment must be guaranteed by a bank
(other th4n a .savings bank) or trust company having an office or
correspondent in The City of -New York or by a firm having
membership in the New York Stock Exchange.
provided for that
the
reverse
stock power. The stockholder's signature to
rate
v
purpose on
If
certificate is registered in the
any
name
of
ciary,
.
furnished. If
any
certificate is registered in.the
ration the
assignment must be accompanied by
or
measurable.
measurable
The first is
means of ascer-f
business reputation
of the men behind a project. And
their ability can clearly be meas¬
ured by management results over
a reasonable period of time.
'.. j
:
by
Along
comes
who
bought
stock
in
guage,
1929.
he tells
a
friend of
ours
us
orthodox
more
only marketability, but reasonable
swears
security.
he
I
"a"
with any man's who
will never go to an¬
' '
you
of New York at $100 per
shares
a corpo¬
copy
of
^./,
;
will receive the check of the said Bank
share for each share of Preferred Stock
surrendered. Under option "b" you will receive
the
same
number
of Cumulative Redeemable Preferred Stock as those
forwarded by you for conversion.
American Ice
he will never
That statement ranks in
intelligence
-
'''
.
of
of
certified
signing
certificate of the election of such officers)
be furnished.
Under option
United
Founders
In colorful lan¬
another investment company
own
must
name
a
abstracts -from the By-Laws authorizing; the
officers to act, and a
the
taining
ad¬
fidu¬
in the name of a decedent, proper evidence ia docu?
form, of the authority of the person signing must be
resolution
are
executor,
or
mentary
of its legal instruments.
tors
an
ministrator, trustee, guardian, receiver, conservator, or other
here or there or elsewhere in one
Such fac4
Wall
of these two
desire to exercise.
Such certificates must be
year
purchase and sales by investment;
companies totaled almost $700,-r
1
Preferred Stock.
Company
/•*"
By Charles C. Small
November 20, 1945.
<
Major
from
and
abroad
Nolan
—
American Ice Company
capital to employ man¬
equal ability.
Because
can
with
in
O'Brien, Jr., has re¬
military
service
has rejoined Folger,
Lee
turned
Investment
To the Holders
ton,
investor
the
Commission
at the
small,
the, investment company
exactly, the same.
1945 is
to the final supervision of State
Securities
together to hire experienced
attend to their
financial
affairs,
whereas .very
few of them individually would
gory, giving them a position com¬
parable to active, listed securities.
Finally,~ the investor wants not
are
themselves
bet¬
management/to
obviously gives more
investment companies/ The
statistics, the investigational field
open-end assets (the largest of all
investment companies is in this
category). Some of these common
more
own¬
set up
open-end
total
with
men
should welcome
availability.
The diversity
obtainable through their securi¬
ties, the experienced supervision
of their portfolios, their necessary
band
directly.
large num¬
a
cation, the second is continuous,
experienced
supervision.
The
layman has no conception of the
extensive management machinery
that I is employed to supervise his
of
stocks
than
funds
stocks
on
protection to an investor than if
ne owned just one
or two even
higher-grade bonds.
If
one
basic
principle of an
investment company is diversifi-?
are
but
only sound securities. The objec¬
individuals identified
tive of most
their
Such
,
ber of bonds
as
securities
insurance or
simply in
of such
one
a
sources
junior
a
from.
-
Or
changed.^.™.;;;.;.; /^/;•;:ri/'.':
of
other
the
things being equal—in own-;
a fund based, - for
a
cross
section of
well-known bank or
> un¬
choice
mine
of
shares of
instance, on
ing
j
a
a
Securities
of any State has a most solemn,
responsibility.
His mission is^o
make as sure as he can that in¬
vestors in
his State are offered
thoughtful
provisions.
reasonable return there¬
investors, in effect,
ceiving
the
number
investor
of
account
ter
of
Capital
theless
its
popularity of investment company
the
other
only
of
question but that the
no
agers
Indeed, the open-end company is
virtually
always
repurchasing
shares
or
issuing
new
shares,
tvhereas the closed-end company's
and
There is
have
other
to
asset value be¬
of the company's agreement
repurchase them at such value.
senior
ministration
that there is less chance of loss—
cause
an
reasonable interpretation and ad¬
just had their fifth straight
baby girl).
No one could deny
relationship
offer
fundamental
day
of
only one or two lev¬
erage companies in the opemend
field.
Yet, even though the openend company does not generally
100
law of aver¬
The
10.
pretty
friends
some
definite
relatively
10 se¬
(al¬
though, amid profanity and tears,
is
ages
and, in a few cases, has/dis¬
pelled.
" .• ' '/-••. -•
•
hat, of course, reminds us of
the most distinguishing character¬
istic of an open-end as against a
closed-end company: viz., the fact
that
the
open-end
company's
remains
theory than
safejr than' one,
are
safer than
discount, however, has
tended to narrow in recent years
a
the
curities
This
shares at all times have
The Commissioner of
aftermath of the 20s.
an
the average man
agementwise.
Assets of invest¬
larger measure of- protection of, ment, companies have increased
over 50% since the passage of the
principal, .reliability of income,
marketability and reasonable op¬ Investment Company Act.
"Investors'
Cooperatives" is a
portunity for appreciation, com¬
bined, than any other
general term today frequently being ap¬
class of security available.
plied to investment companies.
This
is because of
the basic, For they are, literally, a joint ven¬
principles upon which a irue in¬ ture of a group of investors whose
vestment company is built.
The objective is conservation and in¬
crease of their capital—while re¬
first is diversification of invest¬
last
There
as
vehicle yet devised.
ment of any
history' of the investment com-,
n' Investment companies are not
pany movement was the passage;
all equally "good," just as all men
of*the Investment Company Act)
are not equally reputable and able.
of
1940.
Very few institutions
But the majority of the hundred
today are, as strictly regulated, asi
or
so
active ones are so much
are
investment companies.
The:
Act has been workable because of better than the investment that
would seem to offer an investor a
decade—just as most
Of them sold at premiums in the
A
have
Company Act of 1940, brings them
discount below their asset value
i
to
conformation
closed-end companies have sold at
the
and had
a
horse
doctor
pull his tooth.
opportunity for appreciation.
In;
There have been many misnomers
15-years out of the past 19, the
In the early days 'of the invest¬
average
performance of invest-:
ment company movement.
Let us
ment companies was as good or
better than the general market. hope and believe that the char¬
acter
of
present-day
manage¬
From the* middle 20s most com-;
ment, plus the drastic screening
panies in most years have done
of the Investment" Company Act
better
than
recognized
market
of 1940, in addition to the con¬
averages.
Especially is this so in
scientious
supervision
of
State
recent years.' j
•' >'-'//
Securities Commissions, will pre¬
vent
The Investment Company Act
anything
even
remotely
comparable to certain experiences
A milestone, of course, in the
panies are constantly giving
called/'
be
priority for soundness.
A con¬
servatively
captialized,
broadly
diversified, well-managed invest¬
ment company Whose cost to thet
investor is equitable would seem
to be the best medium for invest¬
Persian
securities will depreciate
next depression comes
along, v But the shares of a wellmanaged investment company
some are virtual finance
companies;
some
specialize v in
utility, railroad, petroleum, insur¬
ance, aviation, tobacco, mining, or
other enterprises, /vl-v. /
'
i Generally speaking, the common
stocks of
closed-end companies,
because of leverage and not being
tied
to ,their
asset value, have
fluctuated more widely than the
shares
of
open-end
companies.
'
and
many
are
►
soldier,
a
the
this series of regulations, as well
as the fact that investment com¬
uations";
to
<M■ j' -'
Command
in
securities has increased because of
.
20s.
in
companies for
the investor to choose from.
As
closed-end
companies are
leverage companies.
:///'"• • / / ;
Moreover, these closed-end com¬
panies have different investment
objectives.
The majority of their
portfolios contain a broadly di¬
versified list of junior securities
of American corporations—com¬
bined with a minor proportion of
senior
securities. / Some, '/ how¬
ever, concentrate on "special, sit¬
.
as
-
investment
varied
Most
in
-stocks.' KV
Thus,-
degree; but, as the say¬
"a margin account that
goes,
almost
q
well
as*
Position of Investment Companies
or
cQmmon
or
common
when
-,
purchase debentures combining a
reasonable yield with a high fac¬
tor of safety.
He may purchase
preferred - shares - of
different
grades or he may purchase one
other
some
company
The
The securities of the large ma¬
jority of closed-end companies are
today listed on the New 'York
of
have
proportion of their investment in
because, as
found himself
Gulf
surely as the sun sets, investment
-
^
Stock
con¬
that'always
—funds
1929, the assets of the closed-end
,
pur¬
of various grades,
or
preferreds,
or
low-priced
shares, or steel, automotive, avia¬
tion, utility, rail, bank, insurance
and
other categories
of stocks.
Finally, there is available a selec¬
tion of so-called "balanced funds"
bonds
were
closed-end companies.
While none has been formed since
>' 20s
can
funds
in
interest
an
taining
he
Company in 1945
venturesome and go
2S91
CHRONICLE
Chairman of the Board
'fhursday, November 29, 1945
CHRONICLE
THE COMMERCIAL & FINANCIAL
2592
1922 to 1929, and the curve
years
Thus
War,
char¬
general
of today
of previous wars,
the readjustment period following
hie war was a somewhat lengthy
one, with
some ups and downs,
but ended in 1922.
The period of
readjustment',x immedi¬
or
experienced in the present post¬
period will be, similar to that
of corresponding periods in the
the one follow¬
War, we have
prepared a number of charts deal¬
ing with certaiii economic ^factors.
past, particularly
ing the first World
•
-
;
•
war
and in some cases above
those of the immediately preced-.
;
the
to
/.
.
for
autumn of
continued
then
Assuming that the pattern to be
riods,
*';•
true
years,
seven
1929.
pansion. In each case the expan¬
sion
period
carried ; economic
levels in the United States above
those of all previous prewar pe¬
itself. L,
was
expansion
ately following the war; third, a
considerable period of postwar ex-;
-ing war period
characteristics were
nearly like those
than
Long-Term Trends
fcharts show the trends
The
following the sec¬
Chart I shows that the index of
total
manufacturing
World
of the first World
case
wnose
more
trends ac¬
companying previous major wars
have been first, a high level of
production during the,war; sec¬
ond, a short period of, reconver¬
acteristics of economic
sion,
the
In
three
the
Second
of First and
World War Trends
economic recession.
facturing index more than dou¬
bled during the war, rising from
100 in 1940 to 205 in 1943.
It de¬
2572)
Comparison
were then fol¬
lowed in each case by a period of
periods
pansion
A
levels themselves.
1929.
Transportation Prospects
(Continued from page
though somewhat below the war
through 1922, .1923.; and to
the average of the years 1923 to
runs
pre¬
War
to
rose
first
19%
the
in
level
a
1915, which continued to
1920, with a sharp dip in 1921.
The index reverted to about 120
above
in
1922,
150
on
1923 to
to nearly
the average, in the years
1929.
In the course of the
then
went
up
postwar expansion period, manu¬
attained higher levels
previous year, even
those of the war period itself.
Consider now the correspond-;
facturing
than
ing
in
any
Chart I relating to
on
curve
The years
the second World War.
'
•
Reverting to Chart I, the manu¬
200 in 1944, and
1945, had shown a fur¬
ther decline to 187.
These index
clined slightly to
by June,
numbers
of 1940
are
100.
as
stated
all
in
duction, namely,
be
greater in 1950 than in 1940
perhaps 25%, but lower than
any of the war years from 1941
19^5.
terms
100, to be reached some
time in 1946, after which there
should be a gradual recovery to
perhaps 125 in 1950. ■ This would
be equivalent to an FRB index of
about 160, based on 1935-39 as 100.
Chart II shows that the
minerals
rose
that curve, which is and continued
to. rise to 126 in
solid curve, are in¬
June, 1945.
The later advent of
dicated at the top of the chart.;
VJ-Day, bringing cancellations of
For this curve, -the year 1940 is
war contracts in its train, will be
taken as the index base,, or 100.
reflected in the minerals index
The period from VE-Day in 1945
for the second half of 1945, and
to some date in 1946 is taken as
upper
prospepts with respect to
passenger-miles are less
railroad
,
favorable, although Chart V shows, <
the tremendous effect of the war, j
applying to
the
by
in
to
':
•
The
slowly but steadily
from 100 in 1940 to 120 in 1944,
index
greater in 1950 than in 1929,
was the prewar peak year,
which
The low point may
be close to
that they will be
greater than before the war, but
will not equal the war perform¬
ance.
We expect ton-mileage to
cr
which raised
100
the index from
than 400 in 1944;
A rather heavy passenger movement is anticipated for the bal¬
ance
of 1945, and to about the
*
middle of 1946, growing in part ^
out of extensive transfers of troops *- \
from Atlantic and Pacific ports to
in
1940 to
more
their homes, and in part dependent.
on
the fact that the automotive
industry will not yet have
'
reached
its postwar level of production of
automobiles and busses." Follow¬
probably persist
The expansion! ing 1946, however, we expect ag- following the low. spot may carry; grpgate ' railjoad passenger^miles - ,
pursue these same general lines.
to decrease rather steadily, reach- f
and during, the second World War.; expansion penod will run to at:
the index back to about the 1942
The war period itself is behind us,
The final date shown
ing a level in 1950 above that of
The current postwar period is just; least 1950.
level, which was 110 on the 1940
and, exhibited an.even greater rise
at the top of the chart is the aver¬
1940, but below all of the years
beginning,
and
cannot yet
be
base, and would be about 130 on
-in economic activity than any pre¬
from 1941 to 1949, inclusive. /. Y
age of the years 1947 to 1950.
.
charted in the form of a definite
j the FRB base. - '
vious war. In addition-to the war
curve.
In the case of: manufacturing
The
following table indicates
;
influence, the postwar period will
Chart III shows that agricultural
how the railroad traffic prospects ;;
production, ,and its trend in the;
Five of these charts have been
be affected by certain long-term
production was much less; sensi¬
here outlined compare with past
selected for presentation to you second World War, (the index! in
trends that have persisted in the
tive to
the war stimulus
than
1940 (as in 1915) was above that'
records;" -"V*;
!,;A;
American
economy' over* many today. ' They "deal, respectively,
manufacturing
output, although
of the previous peak, which was
more sensitive
than was agricul¬
years.
All these trends have been with the Federal Reserve Board
PAST AND PROSPECTIVE RAILROAD
attained in 1937. ; The manufac¬
;
TRAFFIC.
•.•■■■
/V.
upward, as befits a country where (FRB), indexes of (1) Manufac¬
ture in the first World War.
The
Railways of Class I .1
;
expansion and growth are still an tures and of (2) Minerals, the De¬ turing curve rose rapidly from index rose steadily from 100 in
100 in 1940 to more* than 200 in
effective force.
Total population partment of Agriculture (DA) in¬
1940 to 124 in 1944, but declined
,(Figures In Billions).
\
Ton-, Passenger-■
has
continued
to grow.
Urban dex of (3) Agricultural Produc¬ 1943, and turned down, to about during the first six months of 1945
200 in 1944.
Miles
Miles
V
:
population has grown at a greater tion, and our own indexes of (4)
to about 116. It will probably drop First World War Peak
The question that confronts us
relative rate than rural popula¬ railroad ton-miles and (5) pas¬
(1918)
403.4
42.7 >
lower, in some month of 1946, to
tion.
Increasing
mechanization senger-miles.
All these indexes with respect to this and the other less than 110, then return to per¬ Interwar Peak:
Ton-miles
(1929)
447.3
charts is the trend the respective
and improved methods of produc¬
are based on physical rather than
haps 110 in 1950.
This would be
"L
The situation
ceding,
likely to
seems
the
first
War
World
ond
♦
the decrease will
and it is assumed that
during and following the
World War, and preceding
readjustment period,
the postwar!
present
well
into
1946.
:
*
.•
.
,
-
.
„
.
...
■
—
the assembly line,
have made it possible to produce
a given amount of goods or serv¬
exhaust the lisf of significant eco¬
ices
nomic
such
tion,
as
a decreasing number of
man-hours of labor. Standards of
wjth
living have risen, with greater in¬
dividual earnings, and more goods
dollar volume.
These five factors
factors.
by no means
They
not,, for
do
include the important
construction, trade,
example,
of
elements
will
curves
follow
1945
from
War
to
DA index of 122,
the 1935-39 base, which would
higher than in any year prior
the war, and higher even than
Will it dip downward, or
in
1940 and 1941.
1950.
Will
curve
parallel the general
the
of
to
Passenger-miles
the
lower-
curve?
upper
first
or
will it follow
some
equivalent to
current
or
on
trend
be
World
a
tors
the 40-year period from
over
1900, the first
of the present
year
ing
our
entrance into the war.
NATIONAL
W '•
I
.
,
'•
PROGRESS:
-
.
T
(
1900-1940
r
•
'
*
■
Per Cent
'
"
.
'
,
.
Increase
73
Population
1'
Rural
force
Civilian
93
-
Manufactures
-
,
282
266
of
power
in
ma
406
facturing
Gross
-
'
Minerals
Utilization
national
product
(1943
<
dollars)
.
254
Railroad mileage:
Mileage
Total
Railroad
owned
trackage
21
operated
57
traffic:
Passenger-miles
48
Ton-miles
lower
165
The
production.
curve
to. the
first
the
World
on
its postwar period.
The
indicated at the bottom of
the chart apply to that curve. The
year 1915 is taken as the first war
year, and is the index base of the
years
curve, or 100.
The year shown to
the left of that date is the year in
the
highest previous level
III is
1940
1944
railroad
and
All
"!'",•
.•
,:
A,
these
on
This
only
tentatively advanced, would (at
existing
freight
and
passenger
fare levels) produce a total oper¬
ating revenue in 1950 of slightly
less than $6 billion.
This would
be below the total of about $6^4
CHART
n
< 1915 AND 1940 «100)
ton-
economic
several
higher levels during the war than
in any previous period.
covers
justment period, consisting of the
three years from 1918 to. 1921. The
postwar
T
period
is
taken
as
the
started
than
higher level in
a
1940
previous year; this
of manufacturing, min¬
any
true
was
eral, and agricultural production.
All of the indexes rose to much
1913
The problem is to
extent of
1913
determine the
the industrial and rail¬
recession that will
place during the readjust¬
ment period, and the date or dates
when
the
several
indexes will
road
s
postwar
SOURCE:
FEDERAL
RESERVE-B0AR0
take
1940.100)
1943-46
at
in
1947-50
:
be postponed in the case
to
1940
1944
the wis¬
restraint
interests
in¬
management, labor,
the
the
—
and
several
general public, and our
and
1939
principal economic
the end of 1946.
Much
intelligence,
legislative
administrative groups—bring
bear
on
the intricate
and dif¬
of wage, price and
other adjustments that lie imme¬
diately ahead of us.
)
ficult problems
,
_i
In
so
dexes of
and
far as
the production in¬
manufacturing, minerals,
agriculture are concerned, we
that the trend from the
believe
1921
low
•923-29
point in 1946 to 1950 will be
generally
upward,
1950 levels will be
and that the
higher than in
BOARD
any
period prior
to the war, al¬
EL.
(1915 AND 1940'KDO )
of the
some
which
CHART
INDEX OF AGRICULTURAL PRODUCTION
again
turn upward.
It looks to us, as of
today, that the turn in the tide
will not come before July 1, 1946,
their low points and
volved
railroad traffic levels here
indicated for 1950, which are
Some of these indexes
ton-miles.
dom,
RESERVE
27.5
fact is
will depend, of course, on
SOURCE:, FEDERAL
65.0
passenger4
!''
the read¬
block of the chart
factors.
factors to
1916
U
500.0
485.0
'
impact of the recent war
and may
1913
!,
87.3
charts indicate the tre-r
the
mendous
effort
railroad
with
respectively,
miles.,
of
1913
The
95.5
665.0
1945
INDEX OF MINERALS
production compiled by the
United States Department of Agri¬
culture.. Charts IV and V deal,
reach
1937
Board.
-
•'
1950
tural
miles
Peak
737.2
1946
index of agricul¬
an
War
,
23.8
particularly
striking in relation to the index
of manufacturing, and the indexes
of railroad
passenger-miles and
attained by the particular
OF TOTAL MANUFACTURING
(1913 AND
Reserve
Federal
the
by
Chart
fac¬
tor.
In this chart dealing with
manufactures, that year was 1913.
Taking the 1915 index of produc¬
tion as 100, that figure was slightly
above the corresponding index of
any previous year, whether in war
or in
peace.
The trend over the
four years of the war, or to 1918,
is plotted on the chart.
The next
CHART
INDEX
:
broken
or
relates
War and
was
71
employment
Production:
manufacturing
which
25
147
Urban
Labor
^
World
(1944)
Prospects for
-
chart
century, to 1940, the year preced¬
Second
46.9
_-
373.3
(1940)
other general
Railroad Traffic Prospects
I shall comment on
employment, and national income. tendency?
;
•
and services available to the aver¬ They do comprise the important these points in a moment.
Chart IV relates to railroad tonage citizen.
These are the out¬
mil^s, and shows that the freight
j elements of production and trans¬
[
Other Economic Factors
( traffic doubled in volume between
standing achievements of the na¬ portation, the trends of which will
tional .economy
in
the
past, largely determine the postwar eco¬ ■Y The other four charts in the se¬ 1940 and 1944. The same general
ries: are prepared along lines sim¬ conclusions seem reasonable as to
achievements which should con¬ nomic pattern.
.
'\,A,
;
tinue into the postwar future.
ilar to those I have described for
■
postwar railroad ton-miles that
Manufacturing Output
Chart I.
Chart II deals with the have been outlined respecting pro¬
Indicative
of
these
upward
index of minerals output compiled
Chart I is the index of total
trends of the past, I give below
the percentage increases in certain
economic and transportation fac¬
Prewar
(1920)_*!•
SOURCE: UNITED STATES DEPT. OF
AGRICULTURE
■■t *
1945-46
1947-30
tVolume 162
THE COMMERCIAL
Number 4442
•
321
CHART
this
RAILWAYS OF CLASS I
(1915
-
AND
1940.
a_ general summary of
and postwar factors that
war
*
,
point in mind,
gest
INDEX OF RAILROAD TON-MILES
: "
& FINANCIAL CHRONICLE
sug¬
may
we
the
will
determine and control the nature
100) '
of the economy.
war
The effects of the
as fol¬
be summarized
may
lows:
1947-50
(?) The
left this country with
war
the greatest productive capac¬
ity in its history, and a prob¬
able
surplus of labor with
which to operate. *
(2) The
piled
war
domestic
a
types
up
demand
of
goods
deferred
a
for
many
and
services,
particularly construction
materials, consumers' durable
goods, and producers' durable
goods."
!'•; AV
more
•
(3> The
V
1913
)•
1915
>
hands
*
the
ac-
unprecedent-
liquid assets in
of ■> domestic
con¬
sumers, both individual
V corporate, thus
1981
1918
an
ed amount of
'the
-
''
stimulated
war
cumulation of
-
hAViA
and
creating large
V prospective buying power for
,; post-war products.
•
\ 2. /
(4) The war brought six years of
•
>
SOURCES: BASEO ON
REPORTS OF THE INTERSTATE COMMERCE COMMISSION
"
CHART 3ZT v
A world-wide destruction A This
-
A;0 AAA INDEX OF RAILROAD PASSENGER-MILES
A" a A railways of class i ■
V. •
c:
A: A AAA?/ ••/AvA>bAA < '*'* AND 1940.10 0)/ A -y; A A:A/ • /1:
:
-/.-/
,
>
A
1920
A .A
1940
-
'' •' '••1944
\V A
'A
v
destruction, and the devotion
of the resources of many for¬
•
•; V:-'AAA
eign
A-
1947-50
I945-48-.
an
demand
-
to*
countries
created
*25
has
war,
extensive potential
American goods
for
A V A A'A :A/A A1-A/A'".
V;:--" abroad. '
As the net result of these four
factors, the United States faces
postwar
period
with / the
greatest productive capacity in its
history, and a tremendous poten¬
the
tial market for its goods and ser¬
vices,
The
both
home
abroad.
and
is set for high economic
scene
levels.
at
Added to that is the effect
of
long-term trends of continued
growth, increasing productive ef¬
ficiency, technological improve¬
ments,
greater
earnings,
and
higher standards of living.
:
Public
2593
Utility Securities Re-Election
(Continued from page 2574)
issues would be in the
neighbor¬
hood of $28,000,000;
adding in $100
liquidation value per share would
bring the total requirement to
roughly $75,000,000. On this basis
it would be convenient to
give the
prior preference stocks all the
Philadelphia Company
leaving the $15,000,000
the
$4
preferred
share).
;
common,
cash
(about
/
for
that
the
ar¬
would
years
be
On this basis
be discounted at 65%
ent
total
or
about
rector
Bank
and
of
Class
a
the
"B"
Federal
Reserve
of
Chicago closed on Nov.
resulting in the reelection of
Walter J. Cummings and William
Clarkson Heath to
for three
serve
and
Trust
Chicago has been
a
Reserve
and
of the pres¬
is
a
He
Chi¬
of
is
Class
a
chosen
was
representative
of
still higher
liberal cal¬
of Stand¬
ard's portfolio excluding Philadel¬
phia Co. For example, applying a
"12 times" ratio to system earn¬
gaged in the district in commerce,
agriculture, or some other indus¬
trial pursuit. He has been a di-V
ing equity for the $4 preferred to
$24 a share.
The figure might
then be stretched to
level by
making
culation
of
a
more
the
his election must be actively
value
rector 1 of
ings ex-Philadelphia (including in
each case estimated tax
savings)
would give an indicated value of
$86,000,000, leaving some $26,000,000 for the $4 preferred after
pay¬
ing off the bonds—nearly $35 a
share,.
It
A
;
is
obvious
the
answers
to
stock
its
27
at
(range
to
seems
there
as
the
Federal
as
Reserve
Chicago since 1943.
Stripling
many
and
Luther
TV
■
Humphreys
apparent
outlined above.
with
offices
in
2.
the in
i
stment business.
REPORTS OF
INTERSTATE
COMMERCE
ment
relations,
develop¬
and
greater industrial co¬
operation,
A
COMMISSION
billion of gross earned in 1929, but
would be greater than that of any
of the years from 1930 to 1941,
other
inclusive*
3.
the country's
cost-price relationships, so that
producers are assured a suit¬
able margin of profit in a time
of rising labor, material and
other costs, with prices held to
Adjustment
62% in 1940 and estimated at 63%
Such
would,
however,
produce
considerably
less net earnings than in 1929 be¬
cause of the great increase in wage
rates, prices and taxes since 1929.
a
gross
expected to hold their own with
total
1950.
in
In
)
Total Transportation
mittees, to which I have referred,
have
conducted
studies
of
pros¬
pective
' A.
the
V/
commercial
between
in
.
1940 and 1950 will again
the
That
air.
will
have increased its passenger mile¬
age nearly six times during those
10 years, Thus air passenger traf¬
fic
is
becoming an appreciable
transportation factor, rising from
postwar traffic by those
agencies of transport that most
strongly compete with the rail¬
timated 28%
roads,
expected to handle
4.
tion of
1950.
Busses
public
cated
for
the
railroads, are sum¬
the following table,
in
marized
in which the estimated
percentage
increase, 1950 over 1940, is shown
for each of the principal agencies
commercial
of
transportation
in
PER
1950
CENT
OVER
portion of the total, 28% in 1950
against 30% in 1940.
Railroad
as
passenger traffic will also increase
between 1940 arid 1950, but will
show
a
INCREASE:
1940
decrease
in
relation
mated 55% in 1950.
if
./
the
prospects
here outlined are fulfilled, total
commercial freight and passenger
summary,
traffic will increase between
Ton-
Trucks
Miles
28
Railroads
Passenger-
Miles
Agency
16
27
Busses
21
Pipelines
—-
—
Air
38
100
Water '
All
J—.j—
agencies
572
27
18
27
—
29
The greatest relative increase in
freight traffic from 1940 to 1950,
amounting to 100%, is anticipated
in the air.
handles
the
a
That agency,
very
however,
and
1940
with
respect
of
the
field, the railroads will show
relative loss, busses will lose to
lesser
degree, and the
gain will be in the air.
a
a
principal
small proportion of
General Conclusions
1950/*
Without
there would be
war
Pipeline
postwar
situation
analyze.
The
or
freight traffic 28%, compared with
an increase of 27 % in total
freight
In brief, the railroads are
7.
Maintenance
balance
and
8.
of
a
of
war on
to
study
tremendous
no
and
impact
the economy is the most
important element affecting postwar
levels
and
conditions.
With
more
between
A
is
.....
./A/A.'-/
at
A
V
commerce
V V to
point
where
•
-M-
goods
to provide only
and
services
be
called
over
which
all.
a
premium of $78.23
•
(The Company's premium
desiring
their bonds,
or
to accept
,
this offer must
or
send them by registered
express
insured, to Central Han¬
Bank and Trust
or
Company, Corporate Trust
to
The First National Bank of Chicago,
Street,1 Chicago 90, Illinois.
A, express,
so
,
presented
must
attached and all
panied by
THE
If sent by mail
or
instructions for remitting the proceeds
should accompany
we
In closing, may I express the
hope that this Conference, and all
for
any or ;
Corporate Trust Division, 38 South Dearborn A
-
thoughtful organizations and indi¬
viduals, will cooperate together
for the common good, to the end
that this country of ours, having
fought a good fight against the
foreign foe, shall now fight the
less tangible but nonetheless po¬
tent
foe
of
disunity, discontent
and despair.
If this be done, we
can advance in future, as in past,
to
higher
standards
of
living,
widespread employment at good
wages and an era of prosperity
VA4'vA'AA*
Department, 70 Broadway, New York 15, New A
York,
part of the
a
,
equivalent of A of 1% yield to it.)
Bondholders
mail insured
between nations.
shall
Company)
and including December 24,
up to
December 15, 1945.
A present
other
we
Coke
$1,000 of principal amount and accrued interest
offered is the
At
problems, but
these are outstanding.
In many
instances they are closely inter¬
related.
Lack of skill in handling
these matters may delay our at¬
tainment of high
postwar eco¬
nomic levels, or handicap realiza¬
tion of our opportunities to the
are
and
their principal amount, plus
A per
thus expediting a free flow of
There
time
Light
prepared to anticipate the retirement of
harmonious
Of
/;/
'
all outstanding bonds of the above described issue,
V,
.
even
relations with countries abroad,
/
At any
.
1945, The Peoples Gas Light and Cok& Company
production
consumption.
Achievement
Gas
AAA/'A
might/otherwise sell.
pipeline traffic will make rel¬
ative
gains.
In the passenger
A
de¬
or
1947
/
(Underlying bonds of The Peoples
A"/* /••
Orderly demobilization of the
extraordinary economic con¬
trols acquired by the Government during war years.
-;
upon
and
V/A"'
the resultant
and
principal agencies of transport. In
the competitive race, the railroads
traffic is expected to increase 38%,
truck
traffic
27%
and
railroad
traffic.
all
to
debt
will about hold their relative place
in the freight field but air freight
total
either
1940
1950, and increases will take
place
freight movement,' con¬
siderably less than 1/100th of 1%
in
to
total commercial passenger traffic,
from <>l1/2%" in 1940 to an esti¬
In
the United States:
ESTIMATED
passenger-miles, 1940 to 1950, but
to show a
slightly smaller pro¬
Due November 1,
'//■/ '.A //,7'VVA'A
tax burden.
6.
are
increase in
an
either inflation
flation.:.-//
.
namely, air, highway, in¬
land
waterway
(including
the
Great
Lakes),1 and
pipelines.
Their tentative findings, compared
with the prospects already indi¬
First Mortgage 5% Gold Bonds
5.* Prudent management of a huge
es¬
an
A
of
designated ceilings.;//:A/
Control of prices, and preven¬
agency
2.7% of the total in 1940 to
in
V
passenger
field, the greatest relative increase
be
Four of the 15 railroad subcom¬
agencies, their proportion of
freight traffic being about
$3,621,000 of
\\u.
fof high levels of
ment of
SOURCE; BASED ON
PEOPLES
the bonds. All
coupon
have all unmatured
bonds
coupons A
registered bonds must he
proper
accorn-
A
instruments of assignment.
GAS
the
City Bank Building to engage in
employment and avoidance of
long periods of large-scale un¬
employment.
Improvement in labor-manage¬
1923-29
*
E.
Hum<-
follow^:
Attainment
1.
.)
phreys have formed Stripling and
this\ year)
the
J
A -i
.
SHREVEPORT, LA.—James
To the holders of
of which may be out¬
en¬
Stripling & Humphreys
Farmed in Shreveport
price around
33%-2%
of
■
■ •
that
discount
possibilities
Bank
question, but the
current
prosperity, but prosperity can be
delayed or diluted by failure to
solve certain conditioning prob¬
some
by
the
member banks. Mr.
Heath, Pres¬
ident of the A. O. Smith Corpora¬
tion, Milwaukee, is a Class "B"
director and, as such, may not be
an
officer, director, or employee
of any bank f but at the time of
$24,700,000,
which would increase the remain¬
.
lined
of
director of the
Bank
cago since 1937.
"A" director and
could
National
Company
All these factors spell potential
lems,
a
di¬
16
Federal
the
nearer
arrears
"A"
Bank
payment of preferred arrears
is too optimistic
(in view of rate
cuts and other factors) and that
15
Class
the Continental 'Illinois
estimate
for
mark.
Chicago Reserve
Balloting for the election of
beginning1 ^an. 1, 1946. Both
men
were'unopposed. Mr. Cum¬
mings, Chairman of the Board of
a
,:
10-year
of Dir.
years
$20
However, it might well be
gued
of
LIGHT AND
COKE
COMPANY
George A. Ranney,
Chairman
THE COMMERCIAL & FINANCIAL
2594
CHRONICLE
1945
Thursday, November 29,
•
be
small working body
inessmen exert
Prosperity—Whose Responsibility?
National
interest in rising standards of
(Continued from page 2575)
able abundant
productive employ¬
ment?
last peacetime year,
output of goods and
services was $100 billion. Approx¬
In
;
1940,
our
our
gross
40 million people were
gainfully employed, but we had
substantial unemployment.
In
imately
gross output
billion in terms of 1940
1944, our
was
$lt>u
dollars. In
had
we
have
30
level
prevailing in 1940, we will
satisfactory situation.
It will provide from 53 to 56 mil¬
lion jobs (not including those in
the armed forces), or 7 to 10 mil¬
lion more than we had in 1940.
a
very
Role of Private
of the
problem that lies ahead, we should
face the fact that the overwhelm¬
immediate
employment must
ing proportion of the
expansion
in
private enter¬
in the field of
come
Federal
Historically, .the
prise.
Government has provided approx¬
5 per cent of total em¬
ployment, while state and lo^al
governments have provided an¬
other 5 per cent—a total of 10 per
cent for government at all levels.
No one wants to see this percent¬
increased; in fact, many would
like to see it decreased. There¬
age
fore, consideration must be given
to the development of a program
which will encourage private en¬
terprise to achieve record-break¬
ing levels of production.
Despite the optimistic forecasts
w
hears,
delusion
.
we
should harbor no
to the
as
with which
produc-
ease
this needed expansion in
tion can be attained and main¬
tained. Called for is a free flow of
,
fdeas and willingness on the part
of hundreds of thousands of enter¬
prisers and millions of investors
to risk many billions of dollars.
These investments must run the
market.\Some will
profitable, some unprofit¬
able, and much new as well as old
gauntlet of the
prove
investment will be lost in the proc¬
Incentives muct be provided
ess.
for the risks to be undertaken, be¬
cause
unless
those
risks
sumed,
new
not be
carried out and
are
as¬
production plans will
new
jobs
will not be born,
<
I should like to say with all pos¬
sible vigor that in a free society
no rival has been found in peace¬
as
a
dynamic. It enlists the ingenuity
of millions of people in the search
for products and services for which
customers will part with their dollers. No other incentive has been
so
successful in stimulating the in¬
ventiveness and resourcefulness of
people. A reasonable
hope for profit is essential to
healthy and vigorous free enter¬
prise—the most promising basis
so
many
for the creation of abundant and
varied Opportunities in
jobs.
.
" ■
interests wnen they, too, con¬
;
■
productive
.;
I
repeat, the task of attaining
and maintaining national prosper¬
ity is a tough one, and if we are
to
accomplish it I think as a first
step it is important that we recog¬
nize that no single group or agen¬
cy can assume sole or ultimate re¬
sponsibility for * its accomplish¬
a responsibility shared
by all participants in our econ¬
omy—employers,
labor
leaders,
ment. It is
agriculturists—by government
and by individuals.
Interdependence of Economic
Groups
Next, we should recognize that
in discharging their respective re¬
sponsibilities, all groups and indi¬
viduals are interdependent. All of
the major segments of our econ¬
omy— business, labor, agriculture
and government—have a common
interest in attaining and maintain¬
ing prosperity. Employers, as well
as the self-employed, have a vital
productive ef¬
which high wages
prices depend. Increased
upon
through im¬
proved technology, is essential to
a steady rise in real wages.
Fur¬
thermore, increasing productivity
output
worker,
per
basis of all social progress.
is the
and labor lead¬
of this common
Both employers
pursuit
in
ers,
goal, generally profit in the long
run
by
opposing restrictive poli¬
first step
objectives
which, on the surface, often ap¬
pear to clash. To the extent that
long-run group interests converge
on
high productivity, they coin¬
interest
is, in fact, a
harmonizing
toward
cide with the interests of the com¬
munity
whole.
as a
Agriculturists have
the
in
terest
direct in¬
a
prosperity
of
em¬
ployers and workers, and the re¬
is also true. We cannot have
verse
unless ag¬
prosperous America
riculture fares well.
a
unity of long-term inter¬
ests emphasizes the need for re¬
straint on the part of individuals
This
tempted to turn to
government for special favors or
alleviation
of
short-term
diffi¬
culties.
Artificial
price mainte¬
nance, restrictive trade and labor
practices, subsidies for particular
groups, and other, impairments of
competitive markets generally op¬
erate counter to the public inter¬
est and, in the long run, counter
to the interests
of the class of
which the self-serving individual
or group is a member. Moreover,
they place the free enterprise sys¬
and
groups
tem in
jeopardy.
Businessmen, within the frame¬
work
of
which is
as
stood. In
yet imperfectly under¬
quarters there is a
feeling that government should
undertake the responsibility for
almost
everything. That also
some
close
comes
There
to
being
nonsense.
hold, for
those who
are
ex¬
ample, that the government should
guarantee "jobs for all." A gov¬
ernment of limited powers cannot
fulfill so unlimited a guarantee.
It is
the
type of promise that no
government
of
a
free
people
should
make, because it is an
over-promise. But the government;
our
economy,
opportunities for
y
;
.
<
.
The most vital function of gov¬
stockholders
lic.
and
associates,
workers, and to the pub¬
Since
profits
depend
on
the
loyalty and ability of workers, as
as
on
technical skill in man¬
agement, the businessman should
create in his enterprise conditions
that
encourage
the
maximum
growth and development of the
capabilities of employes. Profits
depend in large part on the abil¬
ity of the business manager to
adapt his operations to changing
market requirements, A business
manager should have ready at all
times intelligent, courageous plans
for
carrying on and expanding
his business—plans developed to
the point where they can be ap¬
plied quickly.
Labor
leaders
are
responsible
for
protecting and advancing the
interests
of the
employes they
represent. In their collective bar¬
gaining activities, however, they
must recognize the joint respon¬
close
to
being non¬
sense. The government,
which is
we, the people, acting in concert,
and especially the Federal Gov¬
ernment,
has
a
most
important
role to play in promoting national
prosperity;
a
role,
by
the
way,
rests
our
upon
co-ordinated
of govern¬
program
ment action,..
•
V
-
,r
•
promote
Committee
Senate
the
fore
on
not
do
;
It too should be
ing the economy.
adequately staffed. It should re- y
ceive reports from the President
with regard to such matters and
should work toward the develop¬
ment of a -coordinated Congres¬
sional policy.
vv-"'v'
!
Recommendation of CED
;
-
^ecause\it is imperative that we
le&rn
quickly
effective
use
to make
the most
the
tools,
these
of
have been devel¬
oped largely with a view to their
impact upon votes. If we are to
have
business ••••. expansion
and,
tax
programs
prosperity, it's their im¬
business expansion that
paramount consid¬
eration. The most damaging fal-:
Employment. This Commis¬
sion should be headed by a repre¬
sentative
of
the
President.
It
Full
have '
I
because
conclusion,
In
be
consistency, and coordination be¬ C$pimittee for Economic Develop¬
ment has recommended the imme¬
imperative. ■ '
■
:
•
We need a complete recast of diate appointmnt of: vy
.
our federal tax system. Up to now;
fl) A President's Commission on
~
pendence. Furthermore, we, the y
people, acting in our individual
capacities, must meet our individ¬
ual
responsibilities. It is going to
courage,
imagination, arid
on
the part of all of us to
take
toil
realize
goal.
our
hence,
pact
on
should be the
Inflation
SI
Psychology Taking Hold
(Continued from, page 2571)
about
Government has developed a
gets strong enough, the controls
taxes is that thp^e is a clear-cut
cannot continue to stand up." y
distinction between taxes on busi-j Weakening of businessmen's sup¬
ness
and
taxes
on
individuals. port of the OPA, whose life must
OPA Disagrees with
Overlooked is
the patent
truth: be i renewed if it is not to expire
lacy in our present thinking
.
.
that
only
Business
those
people
by
paid
are
pay
taxes;
taxes,
collect
can
taxes
can
but
people.
business taxes, it
determine, but this is
certain: Taxes are shared by con¬
Just
who
pays
is another
There
area
in which
Indeed, the OPA can
bey destroyed before next June, if
present trends are accelerated. In
r|ext June.
pointing out this fact, Dr. Gilbert
stated
that
whole
cab not
prices.
community
business
possibly
want
of
[ inflation
controlled
"The
businessmen
price
all
want
should
move h$ritrols ripped off.
We can hold
quickly and with great vigor— the line only if the business com¬
namely, in its planning for com* munity will change its present
petition. Too often in the past, attitude toward prices and pricebusiness and labor, as well as gov¬ cojQtrols and will get behind OPA,
From
ernment, have directed their plan¬ as they did until recently.
ning against competition by price? the selfish standpoint of business
maintenance schemes, freezing of there is every reason why busi¬
the
government
trade
ures.
practices, and similar meas¬
We need realistic policies for
ness
tices,
competition, and for pro-'
moting stability in ways that will
supplement competition and not
restrain or extinguish it.
effective
Of great importance
at the mo¬
ment, from the standpoint of gov¬
ernment
of
new
action, is the promotion
and small business. The
should
government
remove
stacles that interfere with
tablishment
of
new
ob¬
the es¬
business and
the-growth of small business, as
well as afford positive help to the
small businessmen in overcoming
management.
are
just
some
in which government
tendencies-in
our
free enter¬
prise system toward booms and
depressions, government fiscal ond
monetary policies are of primary
importance. The direct effect of
the collection of taxes, of expendi¬
should
course
is
do
so.
.
Any
other
credit,
and
Professor Slichter
;
In
radio broadcast of
a
shortsighted."
OPA Not Hurting Business
v
"Our
hurting
present
controls
business,"
continued.
Dr.
are
F. Fairless of the
Steel Corporation
regard to the steel
industry that actually a lot of
overtime is being worked in the
Mr.; Benjamin
States
with
stated
and it will be many
before steel companies
enough workers to get
back to the normal 40-hour week.
In an interview published in the
"Christian
Science Monitor" of
industry
months yet
can
find
the
same
Gilbert
"Net
profit margins
in general are about twice what
they were in 1939.
While there
are difficulties in all our regula¬
tions—a squeeze on some items or
some firms—in the broad, business
is extremely profitable and in my
:
judgment would really be willing
to; settle for the present situation
for the next generation.
With the
elimination of the
excess profits
tax, reduction of overtime, down-*
grading of workers, etc., durable
consumers-goods industries face
the
greatest profits in history.
With virtually unlimited markets,
even
a
sharp drop in the national
income won't affect their sales:
What management meeds is out-^
put.
"The ratio of corporation
profits
output of in¬
dustry increased from about 7 ¥2%
to
date, Prof. Sumner H.
Harvard ..University
of
Slichter
respects in which the !
situation is better for the
listed
seven
wage
these:
not
the value of the
in 1939 to more than 16% in 1944.
Eliminating from the figures the
data relating to partnerships and
individuals, the ratio was less than
10% m 1939 and more than 20%
in
1944.
Therefore
price
in¬
'
Nov. 13
United
worker than had
public funds, of control of creases, by and large, are not
At this moment
the indirect effect of necessary now.
the whole body of government fis¬ we are for ,the first time really
cal and monetary policies on the up against the danger of infla1If the inflation psychology
confidence of individuals and bus¬ tion.
ture of
/
the
Among
with monopolistic prac*
for extending the area to
dealing
the
comes
country
our
come
bad
This
of
finding a sound answer to the
question of what a government of
a ;free people can and should do to
existing
Next, I want to discuss the responsibilities of government. Fre¬
quently businessmen give me a
of free enterprise, all will be
well; that nothing more is needed.
of all the people/The entire future
*
taining national prosperity is a
tough one and can be achieved
only if all elements in our society
meet' their respective responsibili¬
ties and recognize their interde¬
the
of the areas
policies have
an important bearing ori business
expansion. Unquestionably, from
the
standpoint of counteracting
off
is both intensive and exten¬
sive; and second, that far too lit¬
tle is known as to how govern¬
ment can best serve the interest
ness
,
public debt and
volume of regular:
public expenditures makes gov¬
ernment policy so dominant a fac¬
tor in the economy that clarity,?
of
These
case of the jitters by assert¬
ing that if the shackles are taken
busi¬
the impact of government on
the anticipated
sibility they share with manage-j
their special handicaps.
One of
ment
for
productive efficiency,
these handicaps is a lack of op¬
which the long-range advan¬
tage of workers depends. By far portunity to secure equity capital
(except at high cost) even after
the greatest real gains to labor
have come from increasing the they have given proof of capable
Responsibilities of Government
be, makes inescap¬
First, that
conclusions:
spient so much time talking about
responsibility of government, > I
should like to reiterate a statement I made earlier—namely that
the task of attaining and main¬
pressions. The effect of some gov-!
upon
size of the total pie to be shared.
may
two
able
yet know what tools can
safely used, safely "from the
ernment policies of recent years
standpoint of the impairment of
has been favorable to these objec-i our freedoms, and in too many
tives; of others,- unfavorable. No cases we do not know how to use
clear-cut,
consistent * philosophy them or when; they - should r be
* *
«
>
has been followed. The magnitude used; '
and de¬
that system toward booms
workers, and investors.
to their
though it
Banking and Currency, spoke of
to
establish
conditions
under?: the government having a chest
which a free enterprise
system full of tools which could be used
can
operate most effectively and to combat both inflation arid de¬
to
counteract the
tendencies in: flation. The difficulty is that we
sumers,
their
inter-rela¬
the
of
tionship of government and busi¬
ness which I have given, sketchy
be
be
chosen as representatives of the
general public interest (particu¬
larly economic groups . or
view¬
points can be represented through
advisory groups). The Commis¬
sion should be; serviced by a staff
of the most competent authorities
in the, various
fields. Jt should
make policy recommendations to
the President periodically, begin¬
ning as promptly as possible. Jt
should lay the groundwork for the
development of a continuing aqd
prosperity is
ernment in fostering
operate their businesses profitably.
It is a responsibility they owe to
a
review
This
.
y
to
have
.
a
(2); A Joint Congressional Comthe attainment of an
mittee on Full Employment. Th,is
wise and constructive actions, and: economy of abundant production
and .employment,y y N.-f y■■■?•, Committee should be composed of
few
any
longer ydoubt that the
the ranking members of Senate
Mr.- Harold D. Smith,' Director
policies and actions of the govern-:
and House Committees which now
of the Budget, : in his testimony
ment will be decisive in shaping
deal with major problems affect¬
ori the Full Employment Bill be¬
does have many
is hard
a
composed of the ablest men to
found.
Its
members should
perhaps the great¬
government has , on
leverage
prosperity.
competitive economy,
primary responsibility to
well
time for the profit incentive
their
prices—promote
low
and
imately
one
leaders—di¬
cies. that lower output and raise
costs. Taking a long view of self-
Enterprise
To understand the nature
Workers and labor
rectly concerned with high wages
and low
from
have
part of the savings flowing from
higher productivity in the form of
lower prices .and higher wages.
ficiency
of goods !and services of
to 45 per cent over the
output
served by passing on a
tribute toward the
overall expansion in the
an
whole are best
substantial
ests of business as a
own
over-employment
with
63
milliofy people in our
working-fighting force. In my
opinion, if after reconversion we
1944,
liv¬
ing which permit expanding mar¬
kets for their products. The inter¬
should
est
b.een anticipated.
points were
seven
•
■
„•
I:
•
Payment of overtime has con¬
tinued to a much greater degree
anticipated.
than
Very little
^
.
downgrading of em¬
ployees has occurred.
Many wage increases have
been
the close pf
put into effect since
the
war.
.
..,-y. ;
foregoing,
Dr.
■■■>■
•
.
,
comment on the
When asked to
Gilbert told
the
"Chronicle": "Dr. Slichter is quite
mistaken.
Overtime
eliminated
much
has
more
been
rapidly
anticipated.
Average hours
worked in September were down
to a shade under 41 per week, as
than
.
compared with a level of more .
than 45 hours during the second y
quarter of 1945, [[While substan¬
tial overtime still exists in some
industries, ior example
steel, ap¬
proximately 40% of the overtime ;
payments in the second quarter
of the year are still being paid.
The trend is very clear from "the
average
figures just quoted.
"Downgrading is also proceed¬
ing
rapidly.
the
United
Several -weeks ago
States
Employment
reported that, had the ap¬
plicants for unemployment com¬
pensation accepted the jobs of¬
fered by the USES, it would have
meant a decrease in take-home
Service
pay
men
ranging from 34 to 49% for
and from 49 to about 60%
I
"'J
Volume 162
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4442
for women, as I recall the figures.
.wage rates .are
on a voluntary
basis.
How large these .increases
are
and how general is not yet
„
'i\- "Third, basic
being increased
15%
wage,
increase would
The little dealer in automobiles in the smallest cross roads hamlet in
Securities Salesman's Corner
only about half of the loss
Jin weekly take-home wages which
would .result from the shift from
48 to a
a
40-hour week.
This is
furthermore,
only
for
a
true,
worker who. remains jn the iden¬
job.. The 'downgrading of
,
tical
JBy
DUTTON:
JOHN
rer
store
inerit to lower paying civilian em¬
ployment means that
15%
a
in¬
crease-will .make up less than half
the Out In take-home pay!
of
^
tail Securities Dealer.
has been over these many months, the ever
busy lawyers of the Government agencies go merrily on their, way.
Even though the war
June, there would be real trouble.
is perfectly evident now, in
fact; tiiat June will hot be an
appropriate time to give up vari¬
ous price
controls.
There are a
It
Haakon
Throne
Norway
on
Thei fortieth anniversary of the
accession by /King Haakon to the
Norway was celebrated
at Oslo by brilliant firework dis¬
plays, according
to
Associated
/■'/,■'///'J/.
>
yet clear."
the
If OPA Folds Up
is
'• i 'When testifying before the Sen-
.
ate Banking and Currency Committee- last month
Mr.
Bowles
;
;
described -the Government's
price
policy and predicted what will
happen, should the OPA die next
3lune. * Mr. Bowles stated that the
stabilization
for
the
"the cost
program
transition period iis that
:
Of
Administration's
"The
/a
/
living and "the general level of
prices should be held at the levels
existing last August and that pric¬
for
test
of price
"During the past forty years un¬
Controls
reasonable haiance
between
suspension
;a
supply and demand.1 The aim is
to get back ultimately to a free
competitive
e6onomy, hut this
cannot be done overnight.
One
condition
-
of
free
a
competitive
the Administration be¬
lieves, is collective bargaining be¬
economy,
labor
tween
arid
management.
The /collective/bargaining machin¬
,
ery got rusty duririg the. war, but
/the alternative to collective /bar¬
gaining is undesirable; namely,';to
keep the Government in control.''
:
According to -this economist,
primarily
der your
Majesty's wise guidance,
Norway has gained for herself an
and honorable position
eminent
among
the nations of the world.
of
behalf
On
countrymen,
therefore,- I am very pleased >to
send you heartiest congratulations
my
this particularly significant an¬
niversary of your ascension to the
throne and my best wishes for the
long and happy 'continuation of
on
reign and the speedy recov¬
of Norway from the ravages of
your
ery
a
bureaucracy;
AND
THEY
ARE
what
into
FINALLY
is
now
GETTING
AROUND TO TELLING THE AUTOMOBILE DEALER HOW MUCH
PROFIT HE CAN MAKE. Who would have
thought back in those
days, that in 1945 arrogant bureaucracy Would also wrap its arms
around the neck of the car dealers 4oo?
1
,
But that's the way it goes; Give .a Government agency power,
and ft will continue to expand and use that
power,^'come bell or high
water. Our founding fathers knew this fact
arid they knew that
if we ever delegated unlimited powers to
any group of men, we were
on our way out as a nation. We've
gone a long, long way down that
road. But let's get back to our business and see where we stand.
,
For
throne of
.
as
you may say, has this to do with the future of the small se¬
curities dealer in this country? Well, they started with the securities
industry back in 1933; when our Government changed over from
what was left of a representative
.
Forty Years
Sharp deflation: in the wage and number of commodities which we
salary" bill, has already taken place can see will not be available in
ample supply that soon.
Ex¬ Press .advices from there on Nov.;
and, further reduction is in prosamples are some of "the main 24. President Truman sent the
.; Jpectt
V./!
^
-' "As to
Dr. Slichter's saying building materials: lumber, brick, monarch a message of congratula¬
that / conversion
unemployment possibly/ cast-iron soil pipe, cast- tion which was reported from
has: passed its peak, I wish his iron radiation pipe,plumbing fix¬ Washington in a special dispatch
statement were true;
It is too tures, bathtubs, shingles; asphalt to the New York "Times" as fol-:
lows:
early to know.
The Tacts are not roofing and gypsum laths.
;
HE WILL BE ALLOWED TO MAKE ON THE CARS IIE SELLS.
And
what,
democracy,
The Disorganizing Influence of Further Governmental
Controls Continues to Threaten the Welfare of the Re¬
.
workers., and the inevtiable shift
from higher paying war employ-
2595
America, IS NOW BEING TOLD WHAT PERCENTAGE OF PROFIT
clear.: ,We do know, however, that
a
•V;«v •
one
number of years, our friends in the SEC have been
a
attempt after another to expand their control
dealer
in
securities.
The
Commission
was
over
behind
the
small
that
attempt a
couple of years ago to put over a "minimum capital provision"* via
the NASD.
Then we had the NASD "5% markup" thing.
This
proposal was licked too ;
but if you think the SEC liked the fact
that they had to render a decision against that
proposition
just
go back over the decision and read it for yourself
there are
enough weasels in it to start a menagerie. Now we have "the regis¬
.
.
...
...
tration of salesmen and traders"
NASD.
.
.
.
exclusively for members of -the
Always the NASD bringing these things
up
.
.
;
AND THE
SEC SITS BACK AND HOLDS HEARINGS. The hearing on this one
was held
only one DAY AFTER MANY SECURITIES DEALERS
RECEIVED THEIR NOTICES THAT THE HEARING WOULD BE
HELD.
;•;//•*'• /"" '/"
<Now there is
record
one
" /
■
unofficially.
When
;
..
fellow in the SEC who
always speaks off the
becomes an important,
Government lawyer, HE TALKS THIS WAY. That's because no one
can ipin anything on anybody—he's the trial-balloon "shooter
upper.'*
For the past few years one of these "off-the-record, strictly un¬
official" fellows. has been making speeches about what .he thinks
should be done regarding further regimentation of the retail dealer;
He's got a fancy name for it. HE CALLS IT "FULL DISCLOSURE;'*,
If anybody who is in this business, .and who knows this business, is
.
.
.
or
a
guy
so gullible as to believe that there is ever going
to be any good
'/Having admired the fortitude come aut of a proposition where the securities business, OR ANY
be on :a basis * of full volume
arid courage displayed by the Nor¬ OTHER BUSINESS, is forced to DISCLOSE its GROSS PROFITEER
what the Government has done as
rather than on volume that Will
wegian people-during the 'darkest ITEM ON THE MERCHANDISE IT SELLS, then they are welcome
a. matter of, policy is to turn over
be limited during the changeover
BUT AFTER 20 YFARS OF RETAILING SE¬
period in their history, we now »to .that opinion
to management the duty of resist"
froth war goods to peacetime pro¬
/ WE DONT WANT ANY PART OF IT.
rejoice to see that with God's help CURITIES WE'LL SAY
ing any. unreasonable demands for
duction."
-."v
Norway has emerged with her lib¬ And we ;say if the "full disclosure" philosophy became an accom¬
t/i//// /■/;
wage 'increases.
If one may turn
/; In
Mr.
Bowies'
erties/ restored, and her people plished fact in ail lines of business it would have such a devastating
opinion,: the
.the metaphdr, management is now
<
strengthened
in their faith in effect on our economy that you'd no longer realize that this was still
dropping of all controls next June
fighting such" .demands with', its
America,.: '■
would mean:
their country's future."
back to the ceiling.
The k price
,
(1) An explosive rise in the
We don't want anyone—bureaucrat, lawyer, mother-in-law, or
ceilings
are
the
Government's
?
price
of
Building .materials
customer—to compel us to.disclose the amount of profit we are
prod to keep management fight¬ New! York §tock Exchange
*.
which would endanger, all our
■making'on anything we sell.. We believe .that if you force margins of
ing unreasonable wage demands.
hopes of a quick rise .in home Inherent in the Administration's Weekly Firm Changes
profit down-through any such scheme of profit disclosure
/ . you
The New York Stock: Exchange
building . . .
V
might as well pack up now and go to Russia. That's the Way they;
policy is the principle that there
i
<2) Grave danger of soaring is ample room for some wage in¬ has announced the following firm do things there.
/■•/
^
changes: '
prices for a limited number of creases within the
/
But those bureaucrats are going to keep on requesting us more
price ceilings.
Privilege of William F. Andrews
?.y 'other key Industrial; materials The real issue, as the Adminis¬
and more, until a strong legalized organization, in the securities in¬
;
which even then cannot be pro- tration sees it, is whether organ¬ to act as alternate on the floor of dustry arises with one purpose, and the strength to carry out that
the Exchange for John Carrere
duced rapidly enough to keep ized labor will
push management
purpose.
Such an organization SHOULD PROTECT THE RETAIL'
up with the demand,
t v: ; ., beyond the point where industry will be withdrawn on Nov. 30th. SECURITIES DEALERS FROM FURTHER ENCROACHMENT UPON
Mr.
Andrews
will
retire
from
can operate at prewar profits.
THEIR CIVIL AND CONSTITUTIONAL RIGHTS AS CITIZENS.
JT:!v (3) Serious inflationary rises
partnership in the firm on the
Within
the
<
in the prices of many consumer
general principle
Such an organization composed of even a tnousand retail dealers who
same date.
/
,
outlined above there
durable goods
is in the
'■
Privilege of Peter Morgenstern were determined to put up a court battle from here now on every
(4) Rises in the prices of Government's
policy
a
safety
to act as alternate on the floor of
|V. other cost-of-living items. . . . valve, as where a company in the Exchange for Harry Grabosky, time another one of these smart little lawyers thinks up a new one,
I! V (5) Sweeping
increases
in good faith grants a wage increase Newburger & Hano, was with¬ to drive this business deeper into regulation and control, IS SOME¬
and then, within not less than six
.j! rents in most areas . 4 .
drawn on Nov. 1st.
Mr. Morgen¬ THING THIS INDUSTRY NEEDS, AND NEEDS SO BADLY, THAT.
(6)
another round of months, finds that it cannot ab¬
stern has acquired the Exchange IT SHOULD BE ACCOMPLISHED AS SOON AS POSSIBLE.
;
sorb the increase without dimin¬
!; * price and cost increases: . . .
membership of Thomas R. Cox.
We've been talking to quite a few dealers. We've hea^d some
The boom-and-bust spiral would ishing profits below prewar.
If
Charles B, Crouse and Harold
many such cases developed/ there
be:on.y:';//
interesting suggestions on this whole matter. The idea is not so far
would have to be OPA approval R.
Chapel will withdraw from
away from accomplishment that it couldn't be done , . . quickly and
!■; The OPA Data on Earnings
of many price increases after the partnership in
Crouse, Bennett,
well.
•• >
•:
"
The Administra¬ Smith & Co. on Nov. 30th.
The
OPA's
data
on
business stated interval.
ing of reconversion: products'must
war.
,
.
,
.
.
.
.
■
.
*
;
.
'
.,
.
.
.
...
•
profits before and after taxes /em¬
brace a long list of industries in
manufacturing, mining, services,
transportation and trade.
The
.fables are too detailed for reproduction here.
They report that,
for 1,743 companies in the just
mentioned fields, in 1944 profits
before income taxes were 217.7%
'
.
greater than the average for 1936.39. The profits of .the same com"
^panies before income taxes were
8;6%
of net sales in
10.8%
in
19.7% of
1936-39 and
and /they
1944;
were
net worth in 1936-39 and
;^5;i% in 1944. vVv •V;..;"1
:
; //;
5
>■>'>-
1:;
•
If for
Control,
a
and
assumes
agement, will
outlook
well
hopes that
man¬
know its business
enough to limit its
ministration
1 i cy
above would permit.
With
the
described
p o
labor
situation
what
it is today, the Administration's
policy puts the spotlight, and the
heat, on management. So long as
the
war
customer
were
machine
of
held
was
business
to
the
and
MASS.
will
be
—
Nathaniel
admitted
to
partnership in Hutchins & Park¬
inson, 50 /Congress Street, mem¬
bers of the New York and
no
other
reason
strong be made for OPA's continuance
hfter June 30 next.
A governjnent price economist outside the
QPA- stated to the writer: "It is
abundantly clear That toy next.
June, when OPA's present life
expires, the gap between the supply of and demand for housing
a
very
^will
be
greater than ever,
demobilization
with
tional families.
what
and; addi¬
Rent is political
dynamite already.
The public lias
spoken up much as yet, but
if the
real
estate
lobby succeeded
in killing rent control before next
//
Prospectus upon request
strikes
minimum, thefe
But now labor and
a
behind its back and labor with
Herrick,Waddell & Co., Inc
no
55 LIBERTY STREET, NEW YORK 5, N. Y.
not too
strong.
P. T.
•q-
Bryan Joins Staff
American
Post War
ST.
LOUIS,
MO.—P.
Reinholdt
Locust
Street,
&
^Gardner,
members
New York, Chicago
of
400
the
and :St. Louis
Stock Exchanges. Mr. Bryan, who
has been in the investment bank¬
ing
and
more
brokerage
business
for
than 25 years, was formerly
with I. M. Simon & Co.
study of the opportu¬
capital available
the American people, and an
nities for
Taylor
Bryan, Jr. has become associated
with
Savings and Invest¬
ments—A
of Reinholdt & Gardner
to
Fruit
Growers
Arden Farms Co.,
saved
Fullerton
of the
past
and
Oil Co., Com.
1
'
New
•
.
'
•
prob¬
investments—Laurence H. Sloan-
Harper & Brothers,
City—cloth—$1.75.
Inc., Com.
Pfd. 8C Com.
(
appraisal
able future hazards of savings and
•
; not
Corporation
Common Stock
Stock Exchanges, on Dec. 1st,
no fight.
management are in the ripg again,
management With one band tied
was
Resistoflex
Bostori
holds barred.
Uncle Sam, out¬
;:: side the ropes, watches anxiously
than rent and hopes that management's free
case will hand will be strong enough, yet
.
:i
Parkinson
chief
.
''
To Admit Parkinson
BOSTON,
wage concessions to those the Ad¬
Rent Question Political
VDynamite, ■
*'
,
tion
Wagenseller 8 Durst, Inc.
Members Lob Angeles Stock Exchange
York
626
Tin and Its Uses—A review is¬
sued by the Tin Research Institute
Battelle
Memorial
Institute,
SO. SPRING ST.
;
TRINITY 5761
LOS ANGELES 14
Teletype:,LA 68
—
505 King Avenue,
—paper.
..
Columbus, Ohio
•
making
Market
Quotations and information
on
all California Securities
clothing
As
soon
taken
had
Germans
the
as
country
the
possession ^of
a\)olicy of well-
they inaugurated
orgariized "buying." They began
by
requisitioning against cash-
industry
manufacturing
the
In
depredations were carried on
with renewed assiduity.
Damage
the
ple, and certainly not of persons
entrusted with
leading and or¬
already done to agriculture was ganizing functions in Government
lollowed by
aggravated to an almost national service or in private business. The
copper and tin.
Before long they
calamity by the needless blowing Dutch have always been a people
started "buying" stocks of every
of workers and one may say that,
up of a dyke of one of the great
kind. At the outset, mainly stocks
new:" "Zuiderzee, polders,"
the fortunately, there is nothing which
of foodstuffs such as cheese, but¬
famous Wieringermeer.
Through indicates that they'are going to
ter, cocoa, rice and coffee; further,
the gap in the dyke flowed about lose this reputation.;
luxuries such as tobacco and wine.
Americans who paid a visit to
27
million cubic feet of water,
They soon turned their eyes, how¬
washing out farms, stables and our country-in May a few weeks
ever/ upon more durable goods,
even
whole villages, filling the after the liberation and saw it
such as clothes, leather articles
greatest part of the ditches and again in September were much
from footwear to trunks and at¬
tache
and
cases,
such ap¬
upon
and
pliances as vacuum cleaners
wireless sets.
robbery
liberal customers, it was
of
man
a
of great
that, at the sugges¬
who had been ap¬
value to them
tion
roads.-
pointed President of the Nether¬
Bank (and who has since
committed suicide), the exchange
control
between
Germany and
Holland was lifted.
From that
could
banker
German
every
Reichsmarks
his
change
freely and without any limit into
Dutch
guilders. It was the Nether¬
lands
Bank
that provided him
with these "guilders. In return the
Bank became holder of a Reichs-
imark balance.
After
five years
of occupation this balance appears
in the books of the Bank at a fig¬
of not less than 4,500 million
guilders, but it
ized; from the
real
on
generally real¬
first that its
was
very
would
value
wholly depend
the capacity of a defeated
Ger¬
to fulfill her obligations.
many
This buying method made place
one
of barefaced robbery in
•
for
the
of Jewish property
case
and,
case
agricultural
highly developed
beautiful and from an
of
point
view
The island had
isle of Walcheren.
been fortified
\
military phase of our liberation,
to which we had looked forward
homes
to
such
at
was
no
their clothes and
short
time left
than
more
rescue
few other per¬
a
sonal belongings.
'
As
the
allied
German
came
and
cities
it
as
even
industries
and
and
more
vious,
bombardments
more
of
be¬
effective
gradually became ob¬
to the German leaders
themselves, that they
losing
were
panied
long time,
a
was
other
by many
that about 800,000
It is estimated
and
ous
and
thing they possessed.
new
It
is
not
such
v
de*
to
non-material v losses,
the
scribe
intention
our
the murder and ill-treat¬
as
of
thousands of our
best citizens, the murder of, not
less than 117,000 Dutch Jews, the
injury caused to public health and
so forth.
These cannot easily be
ment
many
in
measured
terms
great psychological "importance, a
Government had been formed,
.make
,
a
est
tions for
the
fact
that
the
national
wealth for 1939 was estimated at
about
29,000
million
guilders,
while the loss in productive power
is now estimated at about 7,700
million
guilders. This gives a .pro¬
portion of damage of 27%.
J Of this sujrri, the loss due to the
struction and evacuation, 20%
shortage
brought
in replacement and repairs.
of
materials
had
.
factories to
our
any use to
them and that it should
therefore
be
placed
at
the
dis¬
operations, de¬
12%
and
to
to
delay
Besides
this,
incurred
been
a
ability to overcome the many
difficulties by which our people
our
and
gold
foreign investment position, esti¬
mated at 2,800 million guilders;
posal of other factories in the Eu¬
of this
"Lebensraum" which, in¬
meant that it should
be given to German factories.
suffered
by investments in the
Netherlands Indies, 500 million by
investments in Central Europe and
ropean
cidentally,
After the battle or Arnhem, the
pillage reached its climax.
Al¬
though
the
Germans
described
Arnhem
as
the Allied Stalingrad,
they realized,
liberation
and
the
of
as
we
the
did, that the
of
rest
ultimate
defeat
Holland
Ger¬
of
300
2,000 million has been
sum
million
by the stocks of gold
and bullion.
Relatively the greatest war dam¬
age has been done to trade (61%),
(53%)
and
industry
In agriculture the damage
20%, a percentage also
transport
(40%).
is
about
many itself was only a question of
time. Their desire to do as much
found
harm
(including furniture).
they
they could to the nations
considered responsible for
as
thbir
failure
World,
made
to
dominate
them
devote
the
the
remaining time to bring about
disorganization
and
destruction
everywhere.
The
of
railways, or¬
Government at the
the
dered
general strike
Netherlands
by
our
request of the Allied
High Com¬
mand, induced them to carry off
nearly all our railroad material,"
even
which
the
they
electric
had
coaches
no
other
Germany than that of
use
for
in
emergency
housing.
At the
same time they destroyed
parts of our transportation
system such as bridges, locks and
!ships; in the harbors of Rotterdam
other
ings,
in
respect of public build¬
of art and housing
works
Amsterdam
quays,
ware¬
its
and
reasonable
tive
and
be
time
■;
the
without
ac¬
assistance
"of
say
of
J,
::
-
not
do
obtained within
material
.
Allies.
We
mistake to think that
a
can
recovery
our
.
Government are faced, it
would be
to
of a na¬
gradu¬
come
ally to a standstill by sheer ex¬
haustion; when factories have to
be closed down after having used
In such
wool.
or
coal, iron
case, the na¬
of
remmants
last
the
a
compared
a serious
illness,* has fallen into a state of
lethargy and can only get out of
tional economy may be
with
this
by his family or friends.
case, the patient has been
recovery
In
our
will
the
ill/ but
very
regain
to
thing
health is there and the only
he needs is assistance in the form
of
raw
materials and replacement
stolen
of
and
once
ful
This
will
normal
life
machinery.
back
him
bring
to
make him
more
use¬
a
partner in international econ¬
*v[./:[
omy.
.
former
our
of
a
V Next;/to i imports of the first
category mentioned such as food,
and the imports of raw materials
such as
coal, iron and timber,
there is urgent need of all kinds
railroad
During
the
war
against
aggression; and
dictator¬
ship and consequently. suffered
heavy losses." The fact that they
came through the ordeal and after
of oppression are now again
they realize
quite well what they owe to the
ing over the oceans,
enormous
war
effort of the great
motorcars,
a
very
glass, or its substitute, cello¬
phane. ' As many'thousands of
of
Dutch
mand
a
exists
to
pay
with everything
for Allied Victory
they had,
had
have
farmers
great and urgent de¬
for agricultural im¬
plements such as ploughs, har¬
rows/mowing and reaping ma¬
chines, sewing machines, combine
harvesters,
tractors
and
even
pitchforks,
Other requirements
are
horses
ships,
fertilizers.
and
;
t
Relations
Trade
Future
sides
have
mentioned
need
a
that,
*
be¬
imports,' there
for
thirst for knowl¬
edge regarding the probable de¬
velopment of trade relations. Now
exists
that
great
a
whole national economy
our
has to be
our
newly planned and that
Government must decide upon
its economic policy in structural
matters, it is obvious that it would
be very useful
if such a policy
could be based
on
established ex¬
There
was
pectations in relation to * the eco¬
wartime but now nomic policy that other countries
that the common cause for which will
adopt and follow. If one could
all Allied nations gave the best be
sure, for instance, that England
they had is coming to an end, we or the United States were pre¬
are happy to know that the com¬
pared to buy from this country
mon
struggle has brought about high quality agricultural products
between the Allied nations a spirit
in
sufficient
quantities /and at
of international cooperation and
prices covering the cost of pro¬
mutual responsibility which will duction,
the Netherlands would
help them not only to win the war be in a much better position to de¬
but also the peace,.
V..
.1!
termine her own economic policy
than she is now.
The existence of this spirit, so
in
clearly demonstrated by many acts
It is obvious that a country like
Allied nations, gives Holland, whose national resources
certainty that the consist mainly in the fertility of
ufacturing industry alone amounts assistance so much needed for our its soil, the technical knowledge
to 1,950 million guilders, of which recovery will not be withheld.
of its
engineers and its highly
some 800
skilled labon, a country produc¬
milliow%*hilders is due
Holland's Need of Assistance
to
depletion of stocks and 450
ing only one important mineral,
million guilders tp requisitioning.'
The need of help from abroad
viz., coal, and of this scarcely
is, in the first place, a need of enough to cover its own wants in
Although the resulting difficul¬
ties are great the Dutch people impqrts and, in the second place, normal times, is so dependent on
are
convinced that they can and a need of assurances as to our the development of international
the
other
almost
us
the
'
should
be
As
overcome.
a
mat¬
ter of
fact, the results already ob¬
tained in this -respect during the
five months which hav& elapsed
since
the
liberation,
have
strengthened this opinion.
It is
true
that
many
in
Holland, just
other, countries,
as
there
in
has
been
to
this
some
talk of
normal
work.
aversion
a
disinclination
Nevertheless,
caused
by
various
future exports.
As
these
bur
•
\ " ;.
trade
imports, some of
needed to bring back to
regards
are
people such material circumphysi¬
stances as will allow them
cally
and
ipentally to return
to
whole
of its economic life must
relations
structure
be radically
that
the
adapted to
offered
by
other
this
reason
other that we
should
possibilities
-
countries.
It
and
for
no
is
for
certain ex-, not claim damages from Germany
against in" the form of annexation or im¬
imminent political dangers.
In ports of German goods, without
this category have to be reckoned at the same- time demanding the
the
to
need
become
for
immune
such items
1
*
food,
as
j
•„
i
Our trade relations
for exports, ex¬
country;
this
to
cept for some quantities of flower
bulbs,: have scarcely been possible;
Moreover,
for the immediate
in our produc¬
future the decrease
capacity will result in a lihrw
ited export capacity.
'
4
This means that of The 3,000
tive
•
guilders which the Nether*
will within the
years
have to . spend
abroad, only a relatively small
percentage can be paid for by ex*
ports during the same period. . v-A
million
lands Government
few
next
to Holland
Loans
Future
.
*
therefore arises
whether and where Holland will
question
The
the other means.. %
be able to find
-..
These
from the liq¬
come,
may
uidation of assets we hold in other
such
countries
instance,
for
as,'
realization of shares in
the
from
in the United States.
concerns
But
they may come also, and probably
this course would be preferable,
abroad.
X
•
v.
such
run
these may
being
credits will
havp
converted into long-term
All too well do we remem*
be
to
we
from
credits, but in the
short-term
long
secure
••••,'
time
the
For
be
to
able
be
which
facilities
credit
might
loans.
financial disaster of Ger¬
banking, in 1931.
/ , ;- ;
ber the
man
...
There
several reasons why
are
improbable that
it is hy no means
foreign investors (Governments or
it
in
is felt
many.
countries that
assisted .in its
be
should
Holland
endeavors
to
restore
But
in
the
life..
/
argu¬
will carry more
ments of solvency
As to these, several points
consideration,
v :.i
weight.
deserve
In
her normal
long run
.
place, it should be
that
the, Netherlands
first
the
observed
enjoyed a good repu¬
debtor.
As distinct
from /all
other - countries,
the
Netherlands-Indies
dollar / loans
have always
tation
a
as
paid in accord¬
have always been
ance
with the
gold-clause.
In the second
place, .it should he
Holland
that
has
right to use Germany as an outlet
»i
V/UiU
•
•
a
highly; trained
andt,.' industrious
population and that before the
war the capital required per head
of the working population showed,,
with. Switzerland, the highest fig¬
ures in Europe.
The fact that we
have the intention of building a
very
modern production apparatus
a high labor productiv¬
promises
ity.
In
may
the
: ;:;
attention
be drawn to the fact that
economic
structure of the
;
.
.
third
the
place,
is highly differen¬
total national income
in 1938 of 4,823 million guilders,
21% was earned by manufacture,
Netherlands
Of
tiated.
a
trade (including hotels
restaurants), 11% by agricul¬
ture and horticulture, 10% by way
Of net rental value of dwellings,
while 9% was derived from Gov¬
ernment sources (including edu¬
14%v by
and
cation), 6% from communication
and transport, 5% from construc¬
tion, 3% from domestic services,
2% from banking, 2% from ship¬
ping, 2% from insurance, 6% from
occupations (including pro¬
fessions), and 5% from income
from foreign investments or bal¬
ances
abroad and the rest from
other
mining,
gas
and electricity, fish¬
bodies.
eries and religious
In
the^ fourth place, it
that
mentioned
iri
should be
the
Holland
habits
pi thrift are known to be
strong^and are responsible for the
the import
normal work and to a
tent
actual export needs;
have until re-f
lation to any
cently been marked by a one-way
flow of food and other, necessities
remembered
We
nations.
victorious
partnership
in relation to
in re-
ports is only acute
economic planning and not
private persons) will be ready to
give us the necessary long-term
urgent need /credits. One of the reasons is that
long list of all kinds of machines
badly wanted in our factories.;'
consequences.
It is evident
material, trucks and
bicycles
and
tires.
It would not be difficult to give a
Holland and the Indies stood firm
a
our
from
is not
for imports
The demand
felt all over the world
that the relationship between the
Allied, nations
should
not
end
with the cessation - of hostilities,
but should have further-reaching
is over, it is
considerable proportion of
agricultural exports. /
\ . ;
that under present
circumstances the question of-ex^
for
is assisted" in his
he
if
state
after
who,
man
a
Allies"; for though the war itself
of
The investment loss in the man¬
■
[and
.
able to breathe the free air blowr.,
further loss has
by
strong will and
a
the
years
Losses of Foreign Investments
standstill served them as a pre¬
text to assert that a great deal of
a
their machinery was no longer of
war
requisitioning
a
the existence of
by
40%, 28% to
household
There is also
the favorable condi¬
speedy recovery lie in
/Althougn
substantial.
to
1945,
-
for the production
tional
of recovery. ■/:
demonstrated
is
needed
are
means
of
of money and
very
substantial
imports
country out of the twilight period
of confusion into the broad light
should not be for-^
rv.;'■:')
long story short,
is
consequences
How
with an earn¬
will and desire to lead their
able men, inspired
never
To
consisting of very
Government
a
;be made good by it.
Such, losses have been suffered^
can'
Other
help restart the wheels of indus¬
try.
To people living in a happy
country-like the U. S. A. it must
be
difficult
to
realize what
it
precisely specified character.
One might say that nearly every¬
thing is needed.
But as both the
means to buy and to transport are
cases
of the Wieringermeer very limited, il is the task of the
Walcheren and, something of Government to determine priority.
people
(9% of the population)
have during the war lost every¬
sion of every nation, viz., its pro¬
ductive capacity/
The fact that
raw
gas
accom¬
reduction of stocks is estimated at
of
there was • once
for people to cook their
the houses were lighted
food,
people's joy of life
vast
the war/German rapacity directed
itself -to the most valuable posses¬
many
more
again by electricity, a number of
factories were supplied with coal
damage caused by the war and its
their
them
was
nearly the whole country
rould again be reached by train.
de¬ Bridges had been provisionally re¬
structions. The southeastern prov¬ paired, harbors had been made
inces
of
our
country, Limburg serviceable again, the inundated
and Guelderland,-have more par¬
parts of the country had been
ticularly suffered in this respect. drained, except in the more seri¬
for such
from
notice that there
Tor
better
more
There
better.
the
for
meals on,
the
need to say that
however, and
gotten.
later stage,
a
ture and other household
gas, no
Scheldt.-,
no
.
electricity, scarcely any
food and practically no traffic; In
September all - this had changed
no
and
There is
,
coal,
In May there had been no
by the Germans for
the defense of the estuary of the
in that of furni¬
property
of families Who, often without any
military necessity> - were forced
at
Extent of Rehabilitation
thing happened
same
by the military ac¬
tion of the Allied Powers—to our
lands
moment
!
-
.
impressed by what had been ac¬
complished in the interval.
«
*
of
by so-called purchase,
play the role of fair and
trying to
bridges,
—in this
carrying out their policy
In
destroying locks,
pumping
stations
and
canals with mud,
About the
German Depredations
foreign
of
and
cranes-
motorcars,
payment
quantity
newspapers and
periodicals, and
docks were reasons of a partly physical and in
general all- those- items which
blown up and added greatly to the partly psychological character has
together form a minimum level
never
taken possession of more
picture of devastation. ■' • .
required for the maintenance of a
than a small minority of the peo¬
houses,
(Continued from page 2570)
the
To
belong cigarettes, films,
certain
a
footwear.
and
same class
Holland's Position and Prospects
ure
Thursday, .November 29,
THE COMMERCIAL & FINANCIAL CHRONICLE
£596
fact
that
constitute
in
a
this
country savings
larger percentage
the national income than
of
in many
other countries.
Then there
after
are
the Dutch East
from which we
Indies
a
trust that,
frank. discussion between
'the Netherlands Government
;
* •/..
nr'A.v I".'
J.>>'r
and.
.Volume
Number 4442
162
the representatives
THE COMMERCIAL & FINANCIAL
of Indonesian
peoples, the greatest proportion of
whom are loyal, they will remain
a
valuable part of the Kingdom
as a whole.
:
;
And, finally, we might mention
here our claims on Germany (con¬
sisting in a claim for restoration
and a holding
of 4,500 million
Walter
.•.' (The
answer
we
will
Traders, with a yen for a specu¬
lative
turn,
who thought they
had things pretty well figured out
tions, for
as
to
Government intends
our
spend
the
sterling,
dollars,
francs, or whatever foreign ex¬
change will be placed at their dis-
Sosal, in those countries where
'olland
able to
credit
was
facilities. "
secure
N
One
of* the
dominating factors
Dutch
the
national
economy
of the
of
futpre will be the existence
large foreign debt.
Holland
a
will have to, be looked upon as a
debtor
country.
'-Consequently,
this country, formerly pledged to
free trade, as creditor countries
should be, will now be
a
country
balance of payment must
be carefully watched. 777:7. '"'/V/
whose
Studies
tral
published by the Cen¬
Bureau
Statistics
of
have
shown that, after the country has-
annually,
This would allow
us
to pay interest on a debt of
3,000
million
guilders
and
to
amortize part of the foreign debt;
.
the same time it would prob¬
ably allow us to pay for some im¬
ports. It is evident, however, that
such a transfer capacity can only
at
be reached
if
tries, such
creditor
coun¬
the U. S. A., open
frontiers
to
our
exports.
a
creditor country which
its debtors the opportunity
their
Only
gives
to
the
as
by means of exports of
and services, the foreign
earn,
goods
Most
debts,
them to
fulfill their engagements.
7 This
is the law of the. Medes and Per¬
sians
expect
international
in
also
-and
can
economics
of
conclusion
a
every
logical reasoning.
were
of
the
which
roads
subject to approval of the
Interstate Commerce Commission,
culties
would be most unlikely.
Consequently most such plans
called for the elimination of old
equity
which
securities
meant,
of course, that stockholders had
part in the
no
As
setups.
new
:
matter of
fact, the majority
of the
reorganization
proposals
were
set up on the basis of de¬
pression earnings. If the ICC has
its way, new capitalizations will
a
remain
that
But
it
such
;
Congress has before
now
bill
a
way.
for review
calling
reorganizations
posing
them
that
be
and
redrawn
find
roads
sult
of
of
pro¬
welfare
and
world
country always
our
.
of sheer necessity.
\
'
Only by rendering such liberal
assistance to our country that this
necessity falls away will it be pos¬
sible to give private enterprise
chance.
another
are
of
in 1. the
circles
anxious
to
re-,
their colleagues
countries.
In this con¬
other
nection
they welcome the
agreements
tary
matter
a
trade with
sume
in
As
business
course,
Netherlands
mone¬
concluded
with
Belgium and recently with Great
Britain, both of which provide for
1
Government-controlled
be-!
trade
private /individuals.'.
That
.an
agreement does not yet
exist" between Holland and the
tween
such
United States is felt
as
a
/which should ere long
blemish
be^elim-
If the trade relations be¬
mated.
tween the two countries could
be
normalized
dollars
of
would
themselves
high-income
many
as
re¬
a
and
debt
The
of
aim
is
course
v
to
give
stockholders of the defunct roads
in
voice
some
panies
proposals
thing
the
of
com¬
These
traders
gave
think
to
new
possible.
where
some¬
the
about
and
and
bonds
stocks
of
in
deal
the
ucts.
and
herself
for
i
•
the
shortage
Holland
consider
prodalways been
There
our
a
American
have
close ties of blood
between
the
and friendship
people and
that of
United States and the events
of the last few years have aroused
in
the. Dutch
admiration
people
feelings
of
fpr the American war
of
way
"hedging"
in progress against eventu¬
alities.
"
(7 "
^
;77V77 New Issues Nil
v
This is the second straight week
which it appears that the cor¬
in
porate issue
dormant, no
to
come
market*-will remain
new offerings, having
hand
after
similar
a
ex¬
perience last week,
There
v
ever,
at
is
possibility, how¬
that next week may bring
least
this
a
one
stops;: their value
and application. Some of the
type was pied when it ap¬
ularly true during an up¬ I
try to estimate a level at
swing. For it is then that which
support will appear,
In. the past few days you optimism reaches heights Thdn
using that level I figure
which can
saw
how
carry
prices. fca a price under which I will not
stops
and Dow
Theories -work and how the dangerous levels. '
j''
! < hold a stock. ' For example,
former can be beneficial in
using the reader's question,
a
nervous
market while the
So far as stops were con¬ Western Union was advised
latter
can
throw you com- cerned their practical
valup at 51V2-52V2, stop 50. Theo¬
ket trader.
;
-
*
*
1
>,
%
*
in t#e
retically it is a buy anywhere
few days.
Some time under 52 Y2. But its attractive¬
ago I advised the purchase of ness is gone once it breaks 50.
A. M/Byers and Paramount
Naturally it would be nice to
Pictures. From week to week
buy at the bottom eighth. But
I raised their stops in order to that is a matter of luck and I
safeguard profits if an unex¬ don't toss coins to see which
pected reaction occurred. You way I'll jump. To limit a loss
But
offering.
new
it is to be noted, will
past
Investment Business
dealer
in corporate and
securities,**. under the
Roger Evans Company,
from ;: offices
in
the Mercantile
Bank
Building.
Mr. Evans has
ness
as
municipal
of
name
know
investment business
Texas since 1920.
During the
last five
he has been
years
asso¬
municipal and corporate issues.
Methods of
were
With Rescinding
of WPB Orders
^
7 John D. Small, Administrator of
Civilian
Production, Washington,
D. C., will discuss methods of se¬
curing raw materials, the date on
which all WPB orders will be
re¬
scinded, and the status of business
on Dec. 31, when the Second War
Powers Act expires, at a meeting
of
the
Commerce
Association
of
and
New
Industry
York
in
the
Hotel
since
vital
to the reconversion
day,
The latter agency has announced
plans to offer for competitive bids
479,000 no par shares of Amer¬
all
ican
ciation.
tomorrow
afternoon
.*
to
mechanics of the sale,
s
discuss
■V
'Zv/r
More
Stock
Loan Drive.
Electric
-1
Bond
these
matters
are
so
plans of
industry, the meeting will be
open
to non-members of the Asso¬
& Electric Co. rather than offer
to
heed
exchange
the
shares
for
7;
*
into
at
*
ideal in market
list.
30; and
52, stop 50.
stop
was over
lied Mills broke its 33
a
resulted.
loss
hand
other
More next
stop 33; Lock¬ 7
Al¬
figure
On
Western
7
[The
time
Thursday..
expressed
views
do
not
coincide
Chronicle.
They
Union
distance
some
-from its stop
long as any of
away
So
figure.
.
these issues hold at
or
the
LAMBORN & CO.
99 WALL
positions
levels,
stop
should be held.
7/"77777
7;
*
*
y
* /•••'''
■
the
comes
y7-'
SUGAR
•
question:
Exports—Imports—F utures
Why last week's late sell-off ?
The answer is that the public,
DIgby 4-2727
its
Pacific Coast
Share Co.
is
the
Established
v77;' 7
v,
;■
Orders
fentire
Executed
.
H. Hentz & Co.
on
Members
Pacific
Coast Exchanges
Stock
mutual interest of both
Holland today is
wounded
by the
a
be
to
the
countries.
country badly
war.
In survey¬
ing its present situation, however,
one should not
forget that in, the
background of the picture there
stands a people of a good mental¬
ity, great energy and a determined
will
to achieve
of its
former
a
speedy recovery
prosperity.
Consolidated Edison
'
York
Consolidated Edison Co. of New
York, Inc., came under the scru¬
tiny of investment bankers again
upon news of its plans to spend
some
$120,000,000 for expansion
and' betterments
V
years.
The
'
company
in
7
the
next
Schwabacher & Co.
:
has
Stock
York
Board of
77
Inc.
Trade
Cotton Exchange
other
Exchanges;
i,
(Associate)
New York 5, N. Y.
Wall Street
COrtlandt 7-4150
of
Trade
five
■
Board
Orleans
And
Exchange
Exchange,
Chicago
Exchange
York Curb Exchange
Chicago
Exchange
Cotton
Commodity
New
Members
New
New
14
7
already
York
New
Exchange
Curb
York
New
New
:
1856
Securities
issue, though it
is only 32,500 shares.
means
only
7
above
i
•
can
STREET
V NEW YORK 5, N. Y.
preferred.
own
considering plans to sell
outright its 846,985
shares of
This
presented as
only. 1
are
those of the author
the
now
effort.
this
in
necessarily at any
with those of the
got down to 50 and held it,
while Lockheed is still
Teletype NY 1-928
N. Y.
Cotton
NEW
Exchange Bldg.
YORK 4, N. Y.
'
au¬
thorized
an
outlay of $22,500,000
for "work
on
its Waterwise electric
generating station to complete a
project begun in 1935.
'
:
Private Wires to Principal Offices
San Francisco
Monterey
—
Santa
Oakland
—
"
Fresno
—
Barbara
Sacramento
CHICAGO
•.
—Walter Whyte
V
article
t'-V--7•
.v-*
v
Allied
the
3272,
-
.
stocks
Before the week
so
I advise
exist.
three
Western Union at
Now
stock of American Gas
*
week
Mills at 34 V2,
.
common
.-''7..
came
Deals
/
&
taken. But readers had
Last,
And
Electric
Power
&
Light
Corp. of the Bond & Share group,
is expected to file a registration
Two large potential stock deals
J statement next month for sale at
have been added to the list of
competitive bidding^of its hold¬
public offerings shaping up to
ings of common stock in Dallas
follow
the" end
of
the Victory
Railway & Terminal Co., which
Two
The to a fraction would be ideal.
stops But I have yet to find the
profits to console them and
Securing Raw
Materials
that
Potash
&
Chemical
Corp.,
comprising 90%' of that company's
Two banking groups are
known to be prepared to bid for
thfe stock. A meeting is slated for
happened.
trading. When
buying I also have to
ciated/with Rauscher, Pierce & not
abstract theories about be
prepared for losses. One
Co., specializing in 4;he origination inflation.
.7;7 7. 7 • 777:/: 77.7::
without the other just doesn't
of
in
Property Custodian.
shares.
what
market sold off and the
in .the
been
Agency, the Office of the Alien
be originated by a Government
re-demonstrated
was
Roger Evans Reopens
Commodore at 2 p.m., Fri¬
Nov.'30. Thomas Jefferson
Miley, Secretary, has announced
one,
only
overcome,.
prove
market
able
.
into de¬
went
about
DALLAS, TEX.— Roger Evans
was
out
».
Last week I
tail
fore, is not bearish, except in
its% formative stage. But once:
the lines are drawn, the ima
contrary sign was given. It plicatioris;7 are, if anything,
was
on the
basis of such a bullish.' Hut
jthe public, see-'
confirmation that scores of
ing its'Worst f fears realized,
new
buyers appeared. But, in acts on these/fears and sells.:
retrospect, most of the recent So long as such selling is held;
buying was done at or about within bounds it need not be
the tops. So despite this con¬
disturbing. The danger is that
firmation the majority of new the
public may become pan¬
buyers have losses today. It icky and if that happens then
was this fear of
buying close all the fundamentals in the
to highs that led me to rec¬
world won't stop a decline/
ommend' buying at
specific Prices will break until they
prices. In some cases these reach a level where they are
such companies indicated a good
.
„
selling by re¬
buyers, guided by emo¬
tion, can upset everything.
has resumed his investment busi¬
reduction during the war.
action
pathy. We support the idea of a
gradually expanding economy and,
being a country of individualistic
traditions, we place a high value
on the methods of private enterprise.
77; 'V
/;7
At present the general impov¬
erishment which we all hope is
only of a temporary character, in
many cases puts a curb on private
enterprise.
This has but little to
"do with socialism as by far the
'greater part of the controls was
introduced and is only retained
r
indiscriminate
cent
reflect the
to
some
changed position in which
been welcomed with sincere sym¬
,
psychology
of
least
at
trade, world
freace has in
♦
7
scare
con¬
were
some
points under the sold out.
It is against such
peared in print but I think nriarket. But I felt, and still danger that stops were used.
looking toward the reestablishment of their properties as going you got the
*
*
*
general idea. I feel, that unless some safe¬
concerns. /
;7i7?7' ^ /V77;7Vv. alsd discussed the movements guards are, thrown around
A reader asks why I don't
The
ICC, however, has in¬
of the averages as interpreted new purchases the danger of
recommend buying at a level
sisted that such plans whittle
by the Dow Theory and how losses is all out of proportion closer to the stop point. Rea¬
capital and fixed charges of the
and why its practical applica¬ to the potential profits that
bankrupt roads down to a point
son
is that there is nothing
where recurrence of their diffi¬
tion seldom helped the mar¬ might accrue.:;This is partic¬
automatic about the markets
International cooperation, to the
mutual benefit of all by world
'
Whyte
broke prices last week." Mar¬
ket
still
looks
higher but
went
plans
exchangeJthey need for paying off
their
securities of the so-
"reorganization" rails
into'receivership in the course of
the depression -have worked out
may
ers
the
as
concerned, found themselves in a
bit of unexpected mist recently in
consequence of developments
in
Washington.
• ■r v: ':
•. '>?
77-7,
recovered from
war damage, one
reckon upon a transfer ca¬
pacity of about 250 million guild¬
far
called
"-'vV' v'■ "7
-./> /•'■'> •'
Problem of Balance of Payments
in
.
Public
This
move.
firmation meant that the bull
market was still in force until
—By WALTER WHYTE—
to the question of
be able to obtain
necessary
belated confirma¬
a
earlier rail
'S
credit will be, of
great importance for the future
development of our trade rela¬
the
saw
tion
/
which is in this market with
both feet, is
guided almost
wholly by the headlines. * A
by. the industrials of the strike, as I mentioned be¬
you
Markets
2597
pletely if applied to daily
trading. A few weeks ago
Tomorrow's
guilders Reichsmarks), our gold,
a^i.d our foreign exchange position.
where
CHRONICLE
DETROIT
GENEVA,
PITTSBURGH
SWITZERLAND
THE COMMERCIAL &
2598
Thursday, November 29, 194S
FINANCIAL CHRONICLE
ment statisticians
ics, they
nomics."
end, would be the following:
page)
"there is no eco¬
say,
is a gospel of de¬
featism. It is cynical agnosticism.
Of course, this
Money rates would tighten, mark¬
ing the end of the easy-money
policy
and
bond prices would
show a sizable decline. (2) Wages
No, is the stinking materialism of
the tribe of Karl Marx. These fel¬
tarred with'the same
lows are ail
they know
The only thing
stick.
(1)
weaken,
especially wages.
(3) The ab¬
normally low price average of the
prices would
farm
and
semi-manufactured group of com¬
modities would rise, including, for
want to run things,
nobody knows how, the jexample, the price of copper:,.
"I am sure there will be no end
only way to run''things is dicta¬
to the inflation until the prevalent
torship!'
that they
is
and when
•
about national income as
notions
of economic
parity
farm
prices, about wages paid to create
this doctrine of economic agnosti¬
purchasing power, and about the
cism. As a long-time' and thor¬
duty of Government-to give jobs
oughly trained student of the so¬
to all,
are exploded
and aban¬
cial science of economics, I want
doned."
■.
to assert, first, that there are valid
How do I know this? Exactly
•laws of economics, and, second,
in the same way that I, along with
that they can be known. I know
other sound economists, knew cer¬
some
of them. (Later on, I will
tain things in 1928 and in 1933.
hope'to sell you gentlemen on the
Economic laws are complex and
idea
that it is high time that
Prevails
Economic Law
■
V. I
got to¬
start the study and
teaching of those laws which gov¬
ern American business.)
Back in 1928 and 1929 I was re^
businessmen
American
to
gether
■
columns
peatedly on record in the
Hearst
the
of
"Iron
in
papers,,
Age;" in the "Textile World," and
in the "North American Review,"
to the effect that great inflation
existed in real estate and in the
stock, market. I repeatedly and
publicly predicted a great reces¬
sion; Again in 1933, at the bottom
of the depression, when the New
Dealers and social planners were
beginning, their campaign to
dicted
that prices
conditions- were such
much. The demand
was not strong,
it
could not rise
time
that
supply
and
demand
potentials,
at
raise
to' the 1926 level, I pre¬
that, despite inflationary
prices
desires were
1929, that pur¬
being, apparent that
less intense than in
controlling
a
challenge
here today to
come
difficult to formulate,
sometimes
but
there
no
are
they
and
them,
cause
about
conditions,
exceptionsto
can
not be vio¬
'• :/v/<;'//
Exists
lated."
Inflation
outstanding
immediately
The
governing the economic situa¬
tion today is not that prices have
or have not risen. It is the! fact of
fact
the
inflation
vast
fact of the
excess
Simply
have more money
know what to do with.
expressed,
than
potential, the
supply of cur¬
and liquid savings.
rency
we
We have
sibly
a
current level of
at the
"
-
Once
than we can pos¬
more
use
prices.
we
•
"■p.t'-'...
,
year,
at least, it is a good
idea to take up a
Federal Reserve
statement, and see how the
Bank
significant items have moved in
the
last
twelve
months.. (This
should not be done too often; for
then one becomes numb from the
shock of billions of dollars, and
thus loses one's appreciation of
the enormity of the currency in¬
tential has had nc effect On prices.
"ef¬
fective" in different price fields.
In 1919, after World War I, it was
effective in wholesale commodity
At different times inflation is
markets.
But /in* 1929
commodity
while in¬
expression
markets were declining,
found fantastic
flation
prices of stocks, apartment
hotels, and the like. Now, in 1945,
the chief manifestation of "effec¬
tive
inflation" is found
in the
in the
price of labor, although as usual,
real estate and farm land prices
would: be limited.
On. the supply
side, I found that costs of produc¬
tion
declining, and that the
were
holding
power
of
sellers was
small, because of their weakened
financial
circulation
retarded
would
Finally,*' the
positions.
the
of
by
currency
and
fear,
become
not
was
inflation
effective
ex¬
fear basis.
There is a true forecast, proving
cept
on a
Apparently
largest
single
securi¬
held, which increased by <5.4
ties
dollars.
billion
But
about equal,
is the rise in note and deposit
lia¬
bilities, Federal Reserve notes in¬
creasing by 3.97 billion dollars and
deposits by 2.1 billion dollars, a
total increase of about 6.1 billion
dollars.
("Money
increased
4.2
analysis. And it applies
today, exactly in reverse. Condi¬
tions in 1945 are nearly the oppo¬
site of those in 1933. Prices did
not rise much then. They will rise
Today, the demand is
not weak; it is strong. Desires are
not less intense; they are more in¬
tense, Purchasing
power
is not
down; it is up. Costs of production
are not; declining; they are rising.
Industry is not in a weakened fi¬
nancial position; but in a strong
in
circulation"
billion
dollars.)
Meanwhile,
be reduced.
sound
a
more
one.
now.
And the circulation of money
is just beginning to emerge from
the shadow of fear into a state of
optimism.
A
Now I
am
the following, statement: "For an¬
other month or so, a continuation
of
the
business,
reaction
minor
current
which results from
in
the
the
year
was
the increase of 5.2
billion dollars in U. S. bonds held
by the banks. In addition, more¬
over, it should be noted that bank
loans for carrying and purchasing
government securities rose
568
million dollars. Thus member bank
based on the public debt
by nearly 6 billion dollars.
only other point of special
significance at this time is thej in*-
rose
The
in
demand
deposits, which
rose 3.4 billion dollars. If you add
this increase in deposit currency
(available for checking out) to the
crease
increase in Federal Reserve notes
issued,
reconversion, diffi¬
demand
has
been
culties have been relatively slight.
Thereafter, I expect
boom. In¬
deed; if it were not for strikes
and labor difficulties-,. I would pre¬
dict a- rise forthwith; Of course,
a
during this intermediate period
prices will be irregular or mixedi
"Probably the boom period that
I think lies ahead will last until
leading
glance at the statement for
"reporting member
banks"
shows closely related movements.
About the biggest change during
Yet. the nation lost gold, and the
I expect to be
mild" and short, as the1 pick-up of
the
A
the
very
further recession,
rapid,, while
dropped to 43.2 per cent, so that
the old legal requirements had to
idea of
the
total
currency
expansion,
amounting to aboiit 7.5 billion dol¬
lars in a single year.
termination of war contracts. The
civilian
the "gold certificate
reserve" declined by over 1 bil¬
lion dollars. The "reserve ratio"
credit
Prediction
again making predic¬
tions in the light of economic law.
The other day at the Boston Conference on Distribution I ventured
,
/
the
change is the rise in U. S.
characteristic mani¬
the present inflated
festations
of
condition
cease
to
exist.
Among
the most notable symptoms of the
volume
you
of
get 0} rough
industrial
production
heavier
as
In
cotton,, hides, and
to such an extent that
equalled
I know that' this malad¬
through
ernment
money"—a "monetization of the
public debt."
,
But while I thus emphasize the
control
(4) The need of adjusting
(3) The need of adjusting pro¬
to consumption
at high
This can -be
done
only
capital value of any sure income
inflated, as a result
of the low basis of capitalization
found in money rates.
(I need
through stimulating production by
allowing, prices to rise.;-,'//;,/"/
v: Probably
the most
seductive
labor turns out. In
hardly mention
tax-exempt
bonds.) And the prices of gold and
silver are enormously inflated—at
schemes of the social planners and
to
product that;:
quantity of the
one
way or an-
there must be
./'•'
•;
ment.
the
defend
,
labor.
other,
...
used
now
wages
with the prices of the products
It is not warranted by
son
the
theory
gov¬
the productivity of labor. The *
price of labor is today highly in¬
flated. It is too high in compari¬
of war inflation and
post-war boom bd* completed. ;
cycle
of
obviously inflated. Today, the
no
them.
to
There
a
.
readjust-; )
several ways in which
are
labor can make wage
adaptations
that will adjust the employer's
government's
pay roll expense to existing price ;
least the gold would be if you war powers until supply. catches levels, and to other expenses, as::
up with demand.
./> /■/;
could buy any.
'
4 •
follows:;/
'^■/v^;;/:p/': ••
»
^
,
It is argued that prices must be
/
(a). The "cost of living" may V
Seven Maladjustments Must Be
fixed and held down, until the
decline; l d u e / allowance • being. ■
.//:;// ■*"Corrected'
quantity of goods available be¬ made for
quality of goods, so that
As a result of the vast inflation comes so large that prices can't
food, clothes and rent will cost *
•
■ ■/_/>■■■/
in our currency; and the ill-ad- rise.
less. To this extent, money wage
argument
is
plausible, rates could, be reduced' without
vised government "controls" that // This
however, only because it makes real hurt to labor. Certainly lahave accompanied it, we find to¬
day
seven - obvious
maladjust¬ four big assumptions. There are bor's taxes, excises,: and duties-,.f
ments. These now cry for remedy. four big "ifs," which are ignored can be much reduced.
■
/i ..
I will therefore refer to them as by men like Bowles and Snyder.
(b) To some extent, labor's war/',
(It is much like urging that we standard
the seven great" needs, The first
of living can be modi¬
must put salt on a bird's tail in
one is—
1
fied without harm. Some- of the,
(I) The need of adjusting goods order to catch him, or that the dog more luxurious items of dress, fort.'
OPAers, is the argument that we
the
continue
must
,
.
•
-
to money
at higher prices. Two
outstanding facts are the shortage
will catch the rabbit if he doesn't
stop running after it.)
These "ifs" are as follows:
the surplus of money.
Surely there can be no question
but that the cases of commodity
down
and
laws;
of goods and
scarcity
are
numerous
more
important than are the cases of
surplus. Among the objects which
are
admittedly scarce today are
the following: Tin, sugar, rubber-,
edible-fats and oils, drying oils,
rosin and
turpentine, paper, lum¬
situation will become easier before
very
long, there is no question of
(a)
materials should be classed as ex¬
isting in surplus or even in abun¬
dance.
These
may
include
some
a
by government price-fixing
.'
**
--
.
1
••
money;
^
.'/•/
.
of machinery.
:
..
high prices.
V
a
bureaucracy
i
from
of them is
argument falls to
the
where the fixed
prices have
actually enforced (quality
There is in effect only one gen¬
considered)^they have* become
eral surplus, and that is the sur¬
mere
nominal
quotations.
(You
plus of money. This surplus is es¬
can't get the goods at the publicly
pecially significant,-since it is in;
quoted prices.) ;///''. v
/;•
terms of money that all prices are
Second, many
goods
are
so
expressed. Accordingly, the sur¬
scarce
and cost so much to pro¬
plus of money,/which of course
tends to put the value of money duce, that, in view of the vast sup¬
down, by the same token tends to plies of currency and "liquid sav¬
ings" now on hand, and the cur¬
put the prices of other goods up;
Like surpluses of other goods, rent high national income, prices
be allowed
to rise.
We
the surplus of money is definite, should
should
be
allowed^ to use our
only when we assume some given
money for buying: goods.
level of prices. The only way to
Third, production will never in¬
relieve the surplus of money is to
crease much unless and until
the
allow the prices of goods to rise.
This would
require the use of prospect is for higher prices—
prices which will increase
the
more money to
move any given
quantity of goods, and would thus probability of good profits on ex¬
panded outputs.
:;;•/,
/
;
reduce the surplus of money»
keep in
mind, is that money is not wanted
for itself; that money is no good
unless it is spent,
and that a sur¬
plus of money (inflation)
through demand for goods.
It. follows from these
works
points that
the vast surpluses of currency
to¬
day,. call them what you: will,
must, in this country,, be used'for
buying goods, thus implementing
the unsatisfied desires that have
accumulated for five long, years. ;
rous
metals, leather,, cotton yarn
cause
no
worker, and bring maximum out*,
■/•;/ /"■
"/' •'
put.
•. '(e)
Less
high-paid ' overtime/;
may well be accepted.
/ *
j;,/.
an
less each and everyone
cases
great fact to
week
■/■ (f) Labor wili have" fo accept-.,
economist who has had'
more
differentials in pay—wider
experience in such mat-'
differences between high and low
ters, I know, that none of these
"ifs" cam be overcome. But, un¬ pay for different ability in the
As
been:
one
in
hours
>
chemicals, fuel oil; zinc, and raw
:
far as I know,; the ground.
/ First,
the/real ^prices actually
the
outstanding cases, although
some
of you might add govern¬ paid have not been, held down.. In
The
' h
should
longer
of 48 hours work,
injury to the
trades upwards
cotton. These are, so
employes.
and
can
accept
cases
'
.
much
overcome,,
ment
;
weelt.:It has been pretty defh/>
nitely ascertained that in ordinary
/(d) IF it would not take so long
time,'and require so much gov¬
ernment control, that the nation
and debt more than it would
Labor
4
per
.
a
from*
(d)
some
substitution,
be less
There would
/
.
suffer
reduction
wage:' rate,: and labor's annual "in*#,
come
would' thus
be* sustained!;./;
.
(c) IF, without higher prices,
production WOULD increase so as
to overcome all shortages; •
;
would
employment by; accepting/
in the, basic hourly,;
steady
held
be
could
example, do no particular good. *y
(c)
Labor
can
secure
more
*
(b) IF prices SHOULD be kept
low, in a period of scarcity of
goods and vast surpluses of
'*
surplus...;••;
••.'
c >/••
Only a fewf of the more basic
prices
IF
*
Fourth,
if by some com¬
even
pulsion enterprisers and investors
could
be induced
to expand pro¬
duction without rising prices,
the
would be so irregular and
that meanwhile we would
process
slow
suffer more harm than good.
Gov¬
spending and1 debt would
be maintained. For example, sub¬
sidies, and: controls would have to
ernment
be
paid for—
-
.
(
trouble with: the waitfor-production-to-increase- notion;
is;that it does not consider the mo¬
currency expansion and either re¬
(2) The need of adjusting one
tives and attitudes of the individ¬
serves or industrial requirements;
price group- to another, notably ual
producers, who-must make the
The
figures
presented
suggest semi-manufacturedL goods to raw
supplies. It is assumed, that some¬
that the- main relationship is bew
materials and finished goodsi
how or other supplies will
in¬
tween the growing
public debt Among what you are apt to call
crease rapidly in the face of fixed
and the* currency. They
suggest basic raw materials, are many
that the debt is being turned- into
prices- and rising, wages.
commodities such as the non-fer¬
declined. Thus it is apparent that
there is little relation, between the
supply, and
can
levels.
is enormously
These;/
Today, they all point .toward
higher prices. ,/'■/://.;
•/
price of semi-finished goods, and
that then, and not until then, will
the
and
demand
higher average
a
any
the fundamental conditions of
are
justment will have to be correct¬
ed. I believe that it will be cor¬
rected
at
desire-to-sell of the sellers.
I doubt it has ever been
in history.
de¬
supply can equal de-/
price level, high or
low. What price level SHOULD
BE, all depends upon (1) the de-\
sires and the purchasing power of
the buyers, and (2) the costs and1
raw
steel scrap,
by
fact,
mand
material prices such
raw
ores,
required
as
mand.
duction*
are
reduced
ber, brick and tile, cast-iron pipe,
by unemployment and lower farm
steel; sheets,
jute
and
burlap,
incomes,, that foreign demand was flation that goes on while we
hides and leather, and, for a while,
low, and that consumption, being sleep.) As of Sept. 19, 1945; one
lead. In general, labor^ is- short.
changes
limited- largely to necessities, the will find the following
While in some of these "cases the
tendency of demand to expand from a year ago:
chasing power had been
production,
semi-manu¬
semi¬
finished products/lies one of the
great price maladjustments of the
potential inflation and the infla¬
tion of the currency,, it is by no day. As a group, they are too low.
They are out of line with the
means true thaf this inflation po¬
What's Ahead for Business?
(Continued from first
as
factured products. In these
One big
Thus
it ignores^
the function of
trade.
same
"
-
(5) The need of adjusting inter.r
est
the costs of saving and
to
vestment./.
••
■
debt-ridden
Our-
to the
has listened
in-:
:/:
government
specious doc¬
the
trines of Lord Keynes, and on
wings of the easy-money policy,
sought to maintain a perma¬
has
nent system- of deficit financing.
Money rates have been reduced
nearly to zero.
As a* result, we,
have
had
both
of
men.
The
unparalleled quantities
money and of idle
typical normal individ-!
idle
ual will not invest without
est" that
tion
to
.supervision,
volVed.
inter^i
in proporthe costs of waiting and.
somewhat
is
the
and
So. funds have
risks
in-.
been held
liquid, which means idle or unin¬
vested. As a result, there has been
a lack of venture capital. The cap¬
ital-goods
backward
normal
industries
for
over
a
have
beeji
decade. Ab-;
unemployment' is thus al¬
ways just around the corner. Un¬
less and until interest rates are al- ;
lowed
to rise
so
as
to express an
equilibrium between the demand
for capital and the supply thereof,
these conditions will continue tp
prevail.
■./,"-c;'-.
Incidentally, the government is
never going to be able1 to get
its
debt out of the banks and into; the
hands of individual investors un¬
til its- bonds
give
a
higher yield.
need of adjusting: the •
nation's, debt, to its. income—or,?
(6)
if you
The
please-. the need- of lighten¬
ing the: burden, of the- public debt.
The nation has about got to the
1
point where it can not possibly
its way. It is insolvent. Mdre
than that; it is on the way/toward
bankruptcy. There is nqj definite
proposition
for
balarfcing
the
pay
pig iron, and steel bars, prices in a free^ economy. That
budget within any definite1 period
which are classed by the: govern¬ function is to stimulate or retard
:
;•,/'■ ..
•;
■"
V
■1
'' / ■'
and cloth,
Volume
Number 4442
162
of time, I doubt that it
done/
unless
and
we
be
well
go
can ever
until
THE COMMERCIAL & FINANCIAL CHRONICLE
I know of
through a period of great inflation
with rising prices and expanding
national money income. Always
when a debt becomes impossible,
the debtor wants to lighten its
burden by depreciating the cur¬
rency in which it is payable. But
national debt has
become
now
impossible. The inevitable conclu¬
sion;, must
follow. With annual
carrying charges of upwards of 6
billion dollars, with a greatly in¬
creased annual cost of military es¬
tablishments,'world' relief, vast
increases
!
out
is
national money
.
income of 150 bil-
lion dollars. Such
ate
income
an
we
going to have, unless
under conditions of inflation.
■,
never
*
(7)
The
basic need is of
final
adjusting
to
our;: money
some
standard of value. For all practical
purposes, in the present state, of
our
knowledge, this means ad¬
justing our money to the nation's
gjold reserve, or going on a gold
standard.
.
;
;/,*Yv,
-Economic- democracy is founded
standard of value.
r 7
The ideal of economic democ¬
upon a
"
is that each individual should
racy
be
rewarded;
according vto the
value of what he produces, as de¬
termined in competitive markets.
£>uch rewards are the only ones
which
free
regard
men
as
eco¬
nomically just; for they are gov-^
e'rned by values which result from
their own free choices.
<*'' '
Economic democracy is a'edi¬
tion in which we individual buy¬
•
vote
ers
duced,
which
what
for
by
we
we van t
rvices
tvc
cf
means
pro¬
offer to pry c* t cf rur
On
the
rtucr
incomes.
earned
hand, the sellers,
as
it
have
were,
to run for office of supplying to
buyers the products we want,
us
on
the bas;s of their efficiencies and
costs. Thus
the price system may
approximate the idea$*of individ¬
ual freedom and democracy,m Such a price system can exist
>
only where there is
an
objective
^standard of value. Where the poli/ticians manufacture, money at will,
they
seek
control
to
values,
and
to fix
prices,which is a system of
autocracy.
>:> •.;■/.
Inevitably, in«all nations and in
times,, when the politicians
.
all
who
constitute
undertake to
nomic
life,
the
run
we
government
the nation's
find
them
eco¬
even¬
turning to,; the old army
game of usmg the public debt as
currency. Early in the 18th cen¬
tury,
the : eminent Scotch New
Dealer, John Law, summed up the
idea when he said that money is
tually
-
the
to
these
correct
seven
\» •
j
.
.
,
,t
;
-
..
-
t
f
This
brings
fto
me
final
my
Nor
case;
do
know
you
where to find out. When the
ex¬
perts
an
atomic
called together and in
were
time the atomic bomb
coming. When you want to pre¬
vent the disruption of reconver¬
sion and seek
call
in
have
a
because we
accepted economic theory.
.
You
can set up all the collective
bargaining schemes in the world,
but you
will never have them
work
smoothly-unless you have
gome
accepted criteria of what
constitutes a fair bargain—a fair
wage.
V./
So it is with interest Apparent¬
ly nobody remembers the theory
of
"time
preference," and
the
basic idea that in abstaining from
consumption, i n v e st men t and
waiting for returns, costs are in¬
•!
*
that have to be rewarded.
curred
The uncertainties of time
dis¬
are
regarded, And since there is now
no
body of scientific economists
to
turn
to,
you
take
zero
interest
i
rates,lying down.
Or, again,
consider the profits
situation. For nearly a generation,
,-v;
an
increasing number of academic
economists
have
been; teaching
that profits tend to disappear, and
that they exist only in conditions
of
imperfect competition. In this
doctrine
the seeds of destruc¬
are
tion for enterprise and profits. Do
know
you
anything: about
condition?
Have
done
you
thing about it? The
answer
this
any¬
is,
no.
other than his
the
-,v;--
[Plainly, however, if debt, is to be
money,
debt
there is
or
to
no
money.
limit either to
The only hope
that the nations will
to
ever
return
economic
sanity, and balance
budgets, lies in the hope
that they will restore those limita¬
tions on their spending and their
note issues which can exist only
when they adhere to some mone¬
tary standard. I know full well
that mere talk about the gold
standard does no good; but I also
their
know that if
im truth
were
a
nation in deed and
to limit its
and note issues to
a
spending
normal rela¬
tion to its gold reserves, the gold
standard
would
always be effec¬
tive, and the nation would remain
solvent. "
to
explain,
when
I
explain the
necessity of profits and justify the
existence
differential
of
is, profits which
margin and high
are
profits,
low at
where
perior-entrepreneurial
su¬
ability
is
exercised.
I
Free private enterprise is never
going
to
be
safe
until
you
free
private enterprisers
and
intelligent
nomic
ory
show a
interest in
fair
eco¬
theory, including the the¬
of profits.
Finally, there is the whole sub¬
ject of money, which is the root of
all evil in economic theory. Prob¬
ably some of you have said "no¬
body understands money." Cer¬
tainly
you
have
talked
about
money being "just a medium of
exchange," or at one time or an¬
other
have
questioned the neces¬
sity of having any objective stand¬
ard
for
money
such
as
the
gold
on
000
of
business
new
was
created by virtue of the bond is¬
approved by the voters at the
sues
Nov. 6 elections.
It should be
re¬
debt limits.
It
bonds
of
than
factual statistic
a
bonds that may reach the
V'v:
;V'
democracy
choice
or
freedom
unless
it
of
be
vice
event, as previously in¬
the fallacy of accepting
prospective sales
literally
in
attempting to
of
calendar of
assess
the
pects,
is
the
market's
future
that
city
other
bat and offset the propaganda
$1,000,000
the
the
to refund the high coupon road
and
whose
judgment
.
offering of
as the larg¬
item, two
I
sidered
the
that
each
company
delegate " to the most
competent of its officials the duty
of devoting not part of their time
but their entire time to organizing
the resistance, and to developing
propose
among
an
you
value. You must
of
above
have the advice
economists
trained
suspicion of bias
dice. You
studies,
must aid
who
or
are
nomics
dowed
wisely en¬
"chairs"—more
effective
needs
more
publications to encourage the sci¬
entific study of the forces of de¬
mand and supply.
"The situation in this .respect is
action
of
the
which
is
to the idea of
science, and has a
the possibility of
basing economic life upon a sys¬
tem of free individual choice. Too
many of our leading colleges and
universities are dominated by the
same group, while in government
quarters most of the "economists"
as
mind
a
to
distinctly on the radical side,
i
At the present time, all I will
say is that I can see no reason
pledge
a
of
and
unit
Commis¬
share
substantial
a
amount
The
district, it is
noted, has made sharp inroads in
debt
bonded
its
in
recent
of
tax
a
years
and
presently enjoys an unex¬
hausted bonding capacity of about
$40,000,000. '.j.-
This latter
contained
pledge, incidentally,
in
tne
constitutional
amendment approved by
in
November,
the elec¬
under,
1942,
which the State Board of Admin¬
istration
was
sponsibility
for
all
clothed with the re¬
Minnesota Portfolio Sale
$6,983,000 bonds by the Minnesota
State Board of Investment.
This
transaction differsrfrom most, if
all, of the many simijlar un¬
dertakings in recent years in that
it consists exclusively of various
State bonds, rather than of bonds
of both States and lower levels of
as
trustee
and
bridge
of acting
country
road
July
district bonds issued prior to
1, 1931.
The
amendment, in effect, placed
SBA the au¬
in the hands of the
to
thority
without
the
assure
delay,
payment,
of both principal
and interest on all obligations of
that nature.
At the same time, it
greatly strengthen the
served
to
entire
Florida
structure.
municipal
bond
*'
not
government.
'
,
Dealers in
VIRGINIA—WEST VIRGINIA
NORTH/and SOUTH
.
are
why in the
tice
there
faculty of
on
State
name of truth and jus¬
should not be on the
make you free.
Arkansas,
of the
of
MUNICIPAL BONDS
$925,000
California, $60,000 of New York,
000
/
of
the
State
of
West
-F. W.-
$1,-
,698,000 of Tennessee and $270,Vir-
CRAIGIE&CO.
ginia.
Like
the radical side.
The truth shall
of
$863,000 of South Carolina,
every
But first you must find it!
CAROLINA
The Minnesota Board offering
includes $3,167,000 bonds
of
the
which
RICHMOND,
its
predecessors, the bulk
bonds
bear
interest
,
,
of
bonds in order to meet construc¬
costs.
of
gallpn on sales of
or
from Jan. 1, 1943.
years
torate
on
faith,
full
the
taxing power of the
involved, as well as an
credit
the
my
opposed
economics
closed
by
secured
are
other like products
of petroleum, for a period of 50
$18,000,000, suggests that
the district will shortly call for
bids
the
known,
generally
Administration
additional pledge of the county's
opinion, the Comprises $6,983,000 Bonds
American
Economic
Association, of Sister States
and its organ, "The American Eco¬
Something of an innovation in
nomic Review/' are dominated by
portfolio offerings is afforded in
an
essentially
radical
element, the scheduled sale on Dec, 5 of
In
lamentable.
is
As
mated at
tion
normal
whose
bonds issued by the State Board
of
is
preju¬
Eco¬
houses
nicipal market.
Chicago Sanitary
District, 111., in negotiating a $10,386,125 contract for a sewer proj¬
ect, the final cost of which is esti¬
and, above all, in main¬
the development of science.
bond
from
Early Market Candidate
of
of
sphere of Interest is far removed
from activities in the Florida mu¬
two cents per
Recent
State
the
be noted,
how¬
ever,
that the various offerings
by the SBA usually elicit bids
distributive
sioners
orig¬
State's
the
in
It should
Florida.
gasoline
them in their
taining the research and publica¬
tions which are so important in
17.
Dec.
on
issues
by
located
dealers
Chicago Sanitary District
effective counterattack.
plemented by a broad, true, so¬
cial-minded theory of economic
Stockton,
by
3, and $1,750,000
Calif.,
with
the
award to be made
But this you
will never do un¬
less and until your efforts are im¬
Dec.
floated
^ ■
According to Mr. Larson, ap¬
proximately $11,000,000 of refund¬
ing securities have thus far been
issued by the SBA, and of those
offered
to
the
public approxi70% were purchased by banks and
more
the
on
bridge ,.bond
taxing units.
.
or
in
which the State Board
on
inally
system of free private enterprise.
those who seek to overthrow
list
of
Illustrative
favorable
may
were made to
past week.
They
consist of $1,950,000
by Boston,
Mass., for which bids will be con¬
pressure-group
results,
merely
progressively
were
additions to the list of
new
foregoing
are
the
It
Aside from the Tulsa
and
activity
of
County Special Road and
Districts, 1.70s, due 1958;
$440,000 St. Johns County iy2S,
due 1947-1952, and $33,000 Marion
County 1 %s, due 1961.
Bridge
they
delay.
the 19th.
So I propose that you industri¬
alists take intelligent steps to com¬
.
000 Polk
of Administration has been able
in
founded upon an objective stand¬
ard of value.
"Chronicle" of Monday, Nov/ 26:
$100,000 Alachua County Special
Road
and
Bridge District IMjs,
due
1954-1955;
$17,000
Hardee
County 2.20s, due 1961; $85,000
Hillsborough County Special Road
and Bridge
Districts, 1.90s, due
1963; $60,000 Pinellas County, St.
Petersburg
Special
Road
and
Bridge District, 2s, due 1966; $52,-
basis
place,
,
of the
13
following issues, complete details
of which were given in detail in
the municipal news section of the
the
Dec. 11
on
specifically
Nov.
on
the
California
of
deal
awards
ot
as
doing by the ad¬
those
the
to
of
prospect.
In second
according to size, is $2,900,000 by State of Louisiana on
Dec. 18, followed
b,y the $2,840,000
Richmond, Va., undertaking on
demonstrated in
thd; city of Tulsa,
of
Florida."
course,
However, the present calendar
coming events still shows the
est
behalf of several Florida
on
counties, stated that the "interest
rates being obtained are the low¬
est for obligations of this nature
in
the
history of the State of
marketing
of
so
$15,000,000
again
case
in
of
State
pros¬
sued
The
suggests,
est consideration.
In any
too
inci¬
Ed¬
J.
Treasurer
who is also Treasurer
Board of Administra¬
tion, in calling attention to the
recent sales of $787,000 of SBA
refunding, bonds; {which were is¬
author¬
in such matters merits the high-
dicated,
the
agreed
are
without
guided
-v
are
economic
things,
be assumed also that
mar¬
nomic
eco¬
other
desirability
of
vides
be
voters
bonds
ket in the immediate peacetime
years.
due
time in im¬
the
by
officials
no
1 part of the potential supply of
'
Tulsa,
no
program
ized
authorized
this month constitutes
1 early
of
plementing the
follows, therefore, that the
price for your lack of interest and
intelligent
understanding. As I
can
decision
dentally, to lose
among
amount
equipment,
V
—
have said, there never
.monetary standard is that it pro¬
a basis for limiting the ex¬
tension of government credit, as
The
incur indebtedness without voters'
tutional
and
1949-1951, incl.
approval, with the limitation on
volume being subject to consti-t
a
One of the main arguments for
warehouse
membered, naturally, that many
governmental units are able to
great university
at least as many economists who
take the Liberal point of view,
which I represent here, as there
standard. Now you are paying the
offering, according to Mr.
Smith,
includes
the
following
bonds, all dated Jan. 1, 1949-1966:
$3,000,000 limited access facilities,
due on Jan. 1, 1949-1966; $3,000,000 waterworks improvement, due
1949-1966; $300,000 public parks
improvement,
due
1949-1961;
$300,000 sewer extension and im¬
provements,
due
in
1949-1961;
$187,000 fire station and equip¬
ment, due 1949-1956; $43,000 traf¬
fic signal, due 1949-1951; $20,000
detention
home, due 1949-1951;
and
$20,000
street
department
mate¬
State
win Larson,
of the State
Mr. Larson referred
The
mu¬
alone
by this de¬
City Auditor S.
Smith, undier date of
from
Nov. 23.
created
restrictions
received
was
Maxwell
,
In addition, there is the knowl¬
edge that approximately $200,000,-
wage formula, you
vain, This is
no
details
rials and manpower.
forth¬
was
of
obligations, it should be
only approved by the
on Nov.
20, and notice
were
partment
plant
because
on
of the sale date and various other
con¬
normal
Dec. 11
asking for
an offering
electorate
improvements, not
to mention various new projects,
more
bomb
obvious
an
undertake
to
ments
nicipal
na¬
tion
needed
These
during the
War period by reason of the ina¬
bility of States and local govern¬
private en¬
terprise. Call it what you will, it
is all based upon the ideal of free
individual choices, [both in pro¬
duction and in consumption.
,vj Consider the wages-price situa¬
tion today/ The futility of the
Whole discussion is apparent when
jyou reflect that nobody has any
fdea what wages ought to be.
Some take, cost of living, some
take profits, some take wages in
a past period. Nobody has a true
theory of wages which is applic¬
able as a practical guide to deter¬
mining what wages ought to be
jn the steel industry, the automo¬
bile industry, or in any other par¬
ticular
than
more
is
$7,000,000 bonds.
noted,
something less than of
was
creditv needs
free
that
•
no
groups in American
politics, in order that we may pre¬
serve 'what
you
call Capitalism
I call
to
that
at
clusion, of course, particularly in
light
of the huge
backlog
of
fight against radicalism
what
according
events
of
materially broadened on
relatively short notice.
This was
and pressure
and
of
which
bids until
would be
plea to you businessmen to or¬
a
the
substantial proportions, there was
point, and my main reason for be¬
ing here today. I want to make a
ganize
while
issues scheduled to
market,
calendar
time,
that
Oklahoma,
always the possibility that the list
without relation to any standard
"
the
new
the
reach
; Radicalism With Truth
;
observed
was
volume of
Organization Needed to Fight
*
Yet you are the enterprisers. You
are the ones whose function I seek
of cash).
it
tj
.
Municipals Selling
Florida
In last Thursday's commentary
[
allowing the
prices of most commodities to rise
and be measured in an objective
standard of value.
j
f
At Record Low Interest Rates'
by
sovereign's credit, and that
the sovereign should give credit
and not receive it—that is,
the
sovereign should issue his notes
w;th
no
special
security,
and
generosity (or need
Florida
today
great
need
great
our
sum,
maladjustments
of the
question to .cut
:
the annual. Federal: expenditure
much if any below say 30 billion
dollars. But on the general theory
that the nation will not normally
stand a. government which takes
much more than 20 per cent of its
'<■
income, an annual expenditure of
,30 billion dollars would require a
In
I..
20-year paper.
on
elect.
elect and
and
pensions, and the like, and a large
expansion / in social security, ' It
seems
yields of slightly more than 1%
desire to stay in
power, and as long as they have
access
to the printing presses or
banks, they will spend and spend,
in -;veterans' "' bonuses,
.
kinds of credit.
other basis. As long
no
politicians
as
•
our
other
all
as
2599
rates
long antedate present-day
BeU
VIRGINIA
System Teletype:
RH 83 A 84
Telephone E-9131
THE COMMERCIAL & FINANCIAL
2600
$1
Challenge to Construction Industry
1946
dwell
build
need
I
not
require¬
ments for your products are enor-j
(Continued from page 2570)
mous in these rural areas.
construction; that the forms and tion activity, because of the vast
Total
opportunities
for your
market which faces you in the
economic philosophies which are
own industry, covering both new
repair and remodeling field.
our
true American heritage and
construction and repair, were very
New construction forecasts by
tradition—be undisturbed.
Clearly set forth in Ernest T.
the Market Analysis Committee of
Trigg's article, released on Oct. 31.
t
Heritage and tradition, particu¬
the
Producers'
Council are as
Your National President stated:
larly among those persons who follows: ''
,v77 - • yyy' ; 7;y;■
had
"When one takes into consider¬
none,
seemh to have been
Total new construction:
ation the possibilities for our in¬
given unfortuna^! connotation. It
1946
"$7,400,000,000
has become
fashionable to ridicule 1947_.._„_ jJ— 10,400,006,000 dustry in the years immediately
tradition.
And '^heritage is con¬
ahead, it is not hard to under¬
1948.
13,700,000,000
stand why I have predicted that
fused, in many minds, with some¬
1949-1951
*15,000,000,000
/some year within the first five
thing that a stiffen income tax
Residential construction: 7
would "redistribute."
s
;
years after the war is over our
1946_
425,000 units
industry's volume will reach a
Last December, Bernard M. Ba1947.
u
' 620,000
billion dollars.' **
/■'.
/.
ruch gave a truly modern and
1948
870,000
" « ; I am sure that we are all agreed
effective testimonial to our tradi¬
1949-1951- f1,045,000 ; "
that no question exists in any¬
tional, • American
way
of; life
one's mind about the tremendous
Industrial construction:
when he- said:
y
1946A
$$1,000,000,000 pent-up need for" a vast volume
■<*: "The- system
of individual; ef¬
1947—A-Jl
$ 1,000,000,000 of construction. This is true with
fort which we call the capitalistic
1948————
600,000,000 respect to both the new construc¬
System is the best in the world.
tion and maintenance fields.
It
• 1575,000,000
It has proved itself so in peace
is unnecessary, therefore, tq be¬
Utility construction:
: 777.;
and in war.
I believe in trying
labor the point with further ar¬
1948—-a$$1,600,000,000
to better that system instead of
gument. ~:
»;>, 7 7'' 7;y;77-7'-;7
*
Average per year.
tearing it down.
I believe that
$Average.
it rests upon the elements that $Peak. ;•
7 ; : / - *7.77 ;7 7 77 Time Required for New
,
I have named and that the pro¬
Construction
v„,Vr.;When
total
new
construction r'.';77;'■. '
tection of these essentials leads
We; must recognize, however,
reaches an annual level of $15,- i
to
certain social .and economic
000,000,000, our industry will ac¬ that in new construction, there
levels
which promise
progress.
is a difference between "existing
count for about' 11% of our na¬
We must proclaim the lessons we
and
"effective demand."
tional income and will provide need";
learn—that we live by the sweat
about 12% of all jobs, a total of There seems to be no fixed limit
of our brow, that helpfulness to
7,000,000
on-site
and - off-site to the former while the latter is
others is helpfulness to ourselves,
workers.
*
•
dependent upon a number of fac¬
;
that these are the measures of
tors, the most vital of which is
social
consciousness
which we
that of "timing."
The Remodeling Market
It requires time
freely accept and enact, rejecting
to prepare for new construction,
It has been much more difficult
a
pauperizing, strength-destroy¬
including the site selection, de¬
to prepare intelligent forecasts on
ing form of statism against which
sign and blueprinting, financing
the volume of our post-war repair
the whole spirit of America is
and the letting of actual contracts.
and remodeling market. Estimates
committed.""
7"
have^varied from $32/2 to $5 bil¬ To cite just one example, in the
Fortunately, we can talk about
residential field
there is ample
lion per year during the period
the future of construction with
evidence of the immediate, exist¬
while new
construction is ap¬
much more assurance and confi¬
need
for
several
million
proaching its peak. We all appre¬ ing
dence than was possible even a
homes; but from the standpoint
ciate fully, I am sure, the vital
lew weeks ago, in spite of some
of practicability, vast as our facil¬
importance of this repair market
remaining confusion resulting
ities may be, we can hardly ex¬
as the result of
past experience,
from
a
number
of pricing and
During depressed construction pe¬ pect preliminary planning to be
labor uncertainties.
On Nov. 1,
riods,
repairs
and
remodeling completed ' before next spring.
John W.
Snyder assured us in
And it will be quite an accom¬
have enabled many of us to hold
Washington that the Administra¬
plishment if we can actually con¬
our organizations together and to
tion was not inclined to recom¬
struct next year 425,000 or pos¬
maintain
some
semblance
of
mend to Congress the expanding
sibly
450,000 new home
units.
"break-even" or slightly profit¬
of Government controls on con¬
Even those anticipated objectives
able operations.
struction. He stated "further that
are dependent upon the availabil¬
It is most encouraging to know
more expeditious action could be
ity of adequate materials and the
expected from existing Federal that one of the major objectives necessary number of skilled work¬
agencies, particularly with respect of John L/Haynes, Chief of the men in the major building trades.
established
Construction
to
pricing
bottlenecks
against newly
May I emphasize again, how¬
Division of the U. S. Department
production.
ever, that tl\ese-time limitations
of Commerce, is to provide data
do
not
necessarily constitute a
Forthcoming Construction Volume with respect to this very impor¬
serious obstacle to those segments
The easing or actual elimina¬ tant segment of our market. Such
.
194—195-
,
~
-
—_
A—_
but every
A
_
A
A -
ries, for it follows that the paint
.
A
_
A
wartime
shackles,
—
however, does not mean that we
can expect a record-breaking vol¬
of
ume
the
year or even
construction
reach
construction
new
its
year
will
New
probably
post-war
least three
after.
next
not
for
peak
at
Architects
gradually
rebuild their organizations I which
more
years.
contractors
and
must
virtually dismembered dur¬
ing the war. Much of the needed
were
construction
blueprinted
has
not
been
yet
reached the actual
or
in
of inestimable value
will be
data
determining
merchandis¬
our
sales promotional pro¬
grams for the effective develop¬
ment of the repair and remodel¬
ing
and
within
ing markets
gions
specific
re¬
of
industry which are organ¬
our
ized
capitalize on the tremen¬
to
repair,
dous,
immediate
nance
and modernization
The
varnish
paint,
industry is
and
market.
lacquer
the only published
repair and moderni¬
zation opportunities which I have
been able to locate in the resi¬
By organization, I refer to such
of
elements as production, distribu¬
tion and financing. I am not quali¬
fied to speak authoritatively on
dential field are from the U. S.
the subject of production within
Department of Labor. The esti¬ your industry but I do know that
mate
for
deferred
repair
and you have left no stone unturned
maintenance to existing dwellings to
provide the maximum possible
is $40.00 per unit on the average,
quantity of finished products; that
,
planning
will
home
owners
what
post-war
Utility
much
of
their
are
of
clearly
wait
homes
companies
the trends
potential
Mdny
stage.
to
see
will: cost.
cannot
start
construction
until
development
apparent.
Farmers,
building plans to
see
how
the agricultural outlook develops.
In spite of these anticipated de¬
lays,
there are two specific ad¬
vantages
which should not
be
.
overlooked.
benefit
as
a
still
of
First, to the ultimate
whole,
be
national
our
new
economy
construction will
climbing when
the
first
heavy demand for automobiles,
radios,
washing
machines
and
other
consumer
durables has been
filled.
Thus, the construction in¬
dustry
may
of
well
be
the
means
prolonging
duction and
providing
than
past.
we
a high level of pro¬
employment, thereby
a more
have
stable economy
ever
known in the
,
Remodeling and New Construction
a
reached
In
Second, your particular segment
our
industry need not suffer
from any delay in new construe-?
of
$1,400,000,000 an¬
This
peak
should
be
at an,early date.
the
commercial
field,
mod¬
have exercised extreme in¬
genuity in the development of
satisfactory substitutes for raw
ingredients which became war¬
time
casualties; that you have
taken full advantage of war tech¬
you
-
ernization is
expected to provide
expenditures at/ the .rate of
$750,000,000 per year, as soon as
material and labor shortages are
for
?
overcome
with
a
probable
later
peak of $850,000,000 per year. 7
nology for the vast improvement
and serviceability of your prod¬
ucts.
Fortunately, too, your in¬
dustry was
not required to con¬
production and prob¬
ably, therefore, you are not faced
We. know, also,, that the farnr
with
any
serious
reconversion
market provides ivast opportuni¬
problems in your plants.
ties for necessary-and immediate
Neither would I presume to dic¬
repair, maintenance and moderni¬ tate or even suggest just what
zation. Assuming an expenditure
methods might be used to improve
of only $100.00 per farm for re¬
and broaden your distribution.
I
Farm
pairs
the
a
U.
and
market
S.
vert to
Construction
maintenance
opportunity
of
in
1946,
would represent
$600,000,000.
The
Department of Agriculture
reported to the Senate Committee
Appropriations last May that
$20,000,000,000 would have, to be
spent by farmers in the next five
on
years
of
total
nually.
urban
also, are likely to hold back much
of their
for
to restore
plant to its
our
national farm
level.
From
that any estimate for farm maintenance under,
this
you
"Cotton"
R.
and
friend,
Northup,
Secre¬
tary of the National Retail Lum¬
ber Dealers Association. 7 In his
3i
Oct.
in part
he stated
article
follows;; 7777.7. / y 7 V
as
7 "The
If
7'' .7*
■.
7
<•:
•
'
manu¬
facturers,
architects,. engineers,
dealers,
contractors,.. mortgage
bankers, realtors and labor, do not
cooperate at the local level to
"hold the line," we face one of
just two alternatives.
Either the
will shackle our in¬
with controls which will
strangle private, competitive en¬
terprise, or we shall encounter
dustry
resistance
consumer
of
the
will
upon
industry.
As
combination of paint man¬
form
which
effect
same
very
the
in
strike
buyers'
a
have
our
plishment of
lumber
the
the
toward
means
a
ufacturers';
ingenuity
and
the
dealers' dire necessity to
•
the -industry,
in
we
construction
in
increases
Government
endorsed also by my good
H.
a
a
been' substantiated
has
It
something
have
accom¬
objective,
our
Council
Producers'
sell
to
be
may
we
in
strongly
organization -of local
Industry Advisory
the
urge
for the present-day
lumber dealers^ receptivity to the
ideaTof7 actually v merchandising
Construction
paint.;""-,7fy/7v'y 7777V;
"roof"
responsible
nation-wide
recent
"A
y'
survey
of the lum¬
shows that over .75%
prewar
can
see
feel
recently
lumber
dealers
cluding
addressed
and
on
a
group
of
building materials
advantages of in¬
the
paint in their merchan¬
dising operations. He stated:
"The
paint manufacturer is, anxious Jo
country
plan
yards. This re¬
instances not
only includes modern yard layout
and methods of handling material,
but also includes larger and bet¬
to remodel their
modeling ,in
most
display rooms; Although lum¬
tide to
wharf or railroad siding in or¬
ter
ber dealers are inevitably
a
der
heavy
handle
to
materials
economically, their plans for re¬
modeling and merchandising con¬
template in many cases the open¬
ing of a downtown display store
merchan¬
where over-the-counter
dise
Over-the-coun¬
paint and
easily carried home
be sold.
can
ter merchandise means
items
other
by the customer. /■y7-//777 v:v">
"Although 76% of the lumber
dealers in the United States are
products
paint
selling
already
the counter, the above-men¬
over
apparent
putting
themselves in a position to mer¬
chandise rather than merely han¬
tioned facilities make it
dealers
lumber
that
paint." 7
dle
v;
are
;.7. >7,7,
v
.
'
'7;;;7:;:77 Financing Repairs
In the field of
Councils.
We
are
so
organized at
the national level now, under
of
U.
the
S.
financing repair,
the National Chamber.
tion
can
pay
has
possible during the re¬
been
such
as
ficult
the
ties.
particularly for
problems,
12 crucial months,
next
until
provide some substantial
supply in the face of the over¬
whelming -demand. We shall be
called upon to exercise a super¬
abundance
of patience,
courage
can
we
I know of
wisdom.
and
than
months
the
in
coming
these
during
guidance
words
simple little prayer:
Oh Lord,
77:
bet-*
no
to express a creed for our
ter way
give
of
7 7
a
C
the pat':ence
me
endure the things I cannot
to
,'77> change.
Give
me
7: 7'77,-77.
y
;/■■./>.
the courage to change
change,
give me the
know the differ¬
the things I ought to
wisdom
i
all,
above
And,
to
ence.
<i"
Baum, Bernheimer
Underwrite New
Baltimore
f
Clothing Co.
1016
City,
Mo., will underwite the preferred
Baum,
Bernheimer
Co.,
Avenue, Kansas
issue
stock
the
of
new
Palace
in the decade of the 'thir¬
And I want also to clarify
Clothing
Company
of
Topeka.
This offering of $200,000 of 5%
which I may have
preferred stock will be the first
public
offering of any Palace
stock, it was announced by Arthtar
Guettel,
President
of
Palace
Clothing. Public offering at $100
point
one
as
it is in the interest of the
general public welfare. •
7
In conclusion, we shall encoun¬
ter other very serious and dif¬
long
ute
years
of "collusion"
form
a
cent
ing services which they provided
to us during those very difficult
resort
Sherman Act to
under the
to
Palace
past.
'
.
Right here, I want to pay trib¬
to the FHA on the outstand¬
also
These groups
are working with various organi¬
zations locally, including Cham¬
bers of Commerce, Building Con¬
gresses and similar construction
industry associations., I am cer¬
tain that we require no immunity
larger cities.
cash for re¬
painting and redecorating their
properties; (2) the liberalization
of "Regulation W" which will per¬
mit FHA financing insurance on
a much more favorable basis than
has
in quite a number
effected
our
accumulated funds
savings with which
wartime
of
Organiza¬
level
the 7 local
at
been
of
dous amount of
consumers
of
Construction. Department
the
modernization
activities, you have two outstand¬
ing advantages: (1) the tremen¬
in
the
Chamber
Commerce, working closely with
and
maintenance
been
on
in
misunderstood
my
pre¬
against con¬
expanding govern¬
We in private
vious violent protests
tinuing
the
controls.
mental
enterprise have asked that we be
a
share will be made shortly after ;
given public policies by our Gov¬ approval of the offering has been
ernment vwhich
will
encourage obtained from the Missouri and
and assist construction rather than Kansas securities commissions. Athinder it.
The FHA plan of in¬ torneys of the company are now
;
,
preparing to file a letter of no¬
proved itself so tification of the issue with the •
...
'.v.,; ,7.
7:
' 7
will continue so SEC..
; The new
company, incorporated *
in the post-war period.
It.is not
month,
purchased* all
the
a
control and it is not a subsidy last
but an actual and quite effective physical assets of the Topeka re-is
surance
in
the
aid
example of such as¬
an
It
sistance.
has
past and
I do not want to
out
ized
conclude with¬
emphasizing the vital impor¬
of our most serious chal¬
tance
lenge
a
as
the necessity
tail store from the Palace Clothing
Company of Kansas City. Author¬
construction/
Line Against Inflation
The
-
.
private enterprise financ¬
to
ing for private
war
justified, however,- in
quoting from authorities who are
qualified to speak on this subject.
L. L. Anderson,
Sales Manager
of Lowe Bros. Co., Dayton, Ohio,
do
this
in
dealers
ber
mainte¬
undoubtedly an out¬
standing example within this par¬
ticular segment of construction.
Currently,
forecasts
as
and
"practicable concept"
"sound selling view."
ther;
costs.; "
•
,
many
association
national
own
_ _
!
of
his
department will benefit with the
dealer's expanding business." This
nas
been characterized by your
.
tion
of
only in the paint line
other line that he car¬
.
-
,
all
of
dealers—not
fact. that
the
on
business
the
extremely
is
And
in
billion
conservative.
Thursday, November 29, 1945
CHRONICLE
long-range problem,
of "holding the line"
consists of the pre¬
$150,000 of comOf the latter, $101,500 has
subscribed; the remainder
capital
ferred stock and
mon.
been
will not be issued at this time.
About 74% of the common stock
is
owned
by the Palace Clothing
Company of Kansas City, and the
excessive inflation. Al¬
balance by the management of
ready we are faced with consid¬
the company, who are also princi¬
erable inflation. The cost of liv¬
pal stockholders of the parent and
ing definitely has risen since 1940.
against
The cost of
from 30%
the
fact
items
jpuilding has increased
in the last five
to 40%
But let
years.
.
that
many
far in excess
in
us
not overlook
other consumer
increases have been
of those figures.
challenge now is to
Our
prevent fur¬
affiliated companies.
of
the
new
Total assets
company
are
about
$300,000.
The
Topeka store has been
in
continuous operation at the same
location
and
under
ownership since 1888.
the
same
-
s^irla
,Volume 162
Number
ffOur
4442
m^K. at PU <
,,
^w^&VAai*w^
.THE COMMERCIAL & FINANCIAL
CHRONICLE
Reporter
Bowles Sees Serious
Governments"
on
The
•
Government
'
market
OPA Administrator Tells National Association of
Real
That at Year's End 3,400,000 Families Will Need
turned
strong last week and
highs under the leadership of the longer partially
jnoved up to new
exempt securities.
obligations that can
j
bond
be
bought by the commercial banks, it
criminatory Rent Control and Bases His Refusal
only
was
From Control
om
involved, in order to get the larger tax-free income that is avail¬
these securities, compared with similar maturities of the taxI ables.
Although the recent rise in the partially exempts has
r: narrowed this spread,V it is still considered large enough under
>
.
present
.
and
indicated
future
longest maturities of these
i buyers.
v.
.
,
.
market conditions to
mone.y
bonds
attractive
to
-
/:/
,
make
l
AAA ■////;■.:•■' A/AA-A tion
24
the
plaints of the
eligible taxables have again broken into
alltime
new
by the 2*4s due 9/15/67/72, and the June and
.- Offerings of the.2s that came into the
readily absorbed, largely through Pacific Coast bank
■December 2s-of 1952/54.
were
to make progress on
,ander
the upside
.
builders
on
tee
dential
;aa
called
OF SUPPLY
he
upon
members
Chester
Bowles
A AyAA
the impact
of
the association
■';/
/
an
unprecedented
of
housing demand and to cooperate
in averting its inflationary men¬
of this
ace."
is
bond
tutional
they
the
available for
holders
are
A' the future, v.
The
not
are
that
sure
.
//
.
It is indicated that
.
.
large insti¬
of
these
bonds
will
offered
be
to
them
2*4% due 9/15/67/72 is not
large issue, and with the
a
banks owning about half of this bond
issue, and a
part of the remainder in strong hands, it is believed
that this obligation will still seek higher prices.
/;;
...
RESTRICTEDS POPULAR
J
.
.
.
.
to
be among the attractive issues in this group, and it is indic-ated that a sizable switch order out of this security has been com¬
seem
pleted.
.
.
-
.
Undoubtedly
-
.
'
-
contributing factor to the recent strength in the
Government securities markets was the
Treasury's announcement that
•the maturing %% notes, and the called 2*4%
partially exempt bonds,
...
a
Loth of which will
certificates.
followed
.
.
in
be retired
This
.
is
the
the past and
This
refunding operation
debt
burden
whenever
obligations that
doubt continue
no
is
that
the
coupon
in
the
future.
Treasury
so,
be bought by the commercial banks.
can
>
f
.
will cut the
and there will be no
intermediate and long-term
possible to do
of high
V-LOAN SUCCESS ASSURED
:
15, would be refunded with %%
policy that the Government has
indicates
it
increase in the amount
Dec.
same
will
.
|
.
.
gjfj
0,
Another development that is
having a/favorable effect on the
^market is the indication that the Victory Loan totals will be at least
$18 billion, with some opinions that it may go as high as $20
(billion.
r;. ■ AA/ \
- ''
.
.
.
2*4%
due
although there
with
of
some
"A obligation.
.
.
12/15/67/72
are
the
who
many
large
still
is
like
the
the
1
/
,
The
•
most
>
-
-
.
favored
2*4% due
corporations inclined
.
issue,
12/15/59/62, Aj
toward
the
latter
v
"This
.
still
put,the
they will also take
on
bulk
some
calls
for
serious, sober
and
farsighted approach to the
housing
problem,"
Mr.
Bowles
a
their
of
of the 2*/4s.
.
.
.
subscriptions
I
into
the
2*4s
>
.
commitment
,
fair
and
now
who
will
the
to
these
occupy
rental units."
new
ly
the necessity for
the
eviction
three
six
to
extension
notice
period
oi
from
months
pointing out
the alarming increase in evictions
resulting from sales and the se¬
first
the
Commission
representative
living quarters
new
/ "The
action
after long and
was
taken
only
careful examina-1
tion
of
the
housing
situation
throughout the United States anc,
thorough appreciation of the im-„
pact
advices
from
of
demobilization
heim
the
on
three
tensive
occasions and,
hearings
after
each
association
time
conditions
ex¬
—
members
at
had
did
not
longer period."
,'
pro¬
where
•
require
indicated
at the present time that these banks
will use
of their subscriptions for the 2*4s, with the
2*4s coming
Not so long ago the ratio was about
90%
and 10%, respectively, for these
subscriptions.
:
~
about 80%
in
for
the
balance.
.
.
The
-
»'/■
•
are
premium
point
one
2
•
for
the
immediately,
new
with
bonds
the
.
will
belief
will sell close to 102, and the
2*4s at
in the open market.
available
.
probably be at least
quite general that the
1933
the Securities Exchange
for the protection of
and
A<ft of
1934
investors
direct and
give the Commission a
primary interest in the
field of privately financial foreign
loans and investments, these in¬
clude
requirements
closure
of
tors in
as
in
102*4 shortly after they
connection with
v
The
realization
for funds; and that future
fined
largely
to
low
great demand for the drive
for
the
indicated
premium
the conclusion of the loan.
short-term
bonds.
that
.
,
these
.
obligations, is creating a
.dqraand is responsible
obligations will
command
at
'. Although there will be
purchases of
quick profits, it will not be nearly as important
during the war loans.
Even with
individuals, who in
the past have turned over drive purchases after short
periods of
holding, because they knew tihahthey could buy these bonds again
Sn the next loan, there is a changed attitude.
.
.
these securities for
;i'S
it
was
A
,
mestic.
The Commission also
ognizes
the
v
Most of these buyers
.
going to be quite permanent holders
Y°f the drive bonds since they also feel that it may be a long
time before they will again be allowed to
purchase the longterm 2*is and £*/4s.
.
.
be
contributory to the sound ex¬
pansion of world trade, and wishes
to lend
whatever assistance it
to the solution of the
cident
thereto.
DEBT RETIREMENT SEEN
Because
of the
aa
indicated
Loan, which will give the
a/
\
heavy oversubscription of the Victory
Treasury large cash balances,1 and the
Because
-
can
problems in¬
of
its
peculiar experience in the admin¬
istration of the securities laws, the
Commission is in a
position" to
make
worthwhile
a
in this field.
,
Louchheim
serve
as
resentative
contribution
-"
will
continue
the Commission's rep¬
on
inter-departmental
committees concerned with inter¬
national economic and financial
<.
-
offices be further
Bowles
said
that
extended
he
had
al¬
ready gone further in lodging full
authority to act over a wide scope
validity and equity of the rent
regulations. In the only instance
of
cited
in
the
association's
recapitulation
of
recent
complaints,
the
court later vacated its order under
which it previously had directed
an adjustment for
housing renting
for over $100 in New York; City.
"Last
Spring," Mr. Bowles said,
"your Association argued before
the Banking and Currency Com¬
much the
same
that
me
vein
rent
letter
as your
cities
rental
statement
units
in
to
the
than
con¬
Gov¬
operation permits,
ernment
other
Fur¬
any
ther
decentralization, he indicated
would jeopardize the unity of the
stabilization
"With
program.
/
concluded, "I have,
on a numbei
occasions, publicly announced
our policy and the
Rent, Industry
of
Advisory Committee for Housing
has been furnished copies of mem¬
oranda issued to our field person¬
tions to follow in making surveys
70
over
of
committee.
a
The
giving
criteria
and
recommendations.
and
know,
our
program
rent control
as
soon
instruc¬
As
is to
as
In ccooperation with the
Trading and Exchange Division,
he will also assist in
carrying out
the
Commission's
control
has
"been
fair
and
been
generally
discriminatory."
equitable
has
and
you
remove
it become:
apparent that the necessity for
continuing control has passed."
not
Replying
to
the
association's
proposal that new construction be
exempted from rent control, Mr.
said
that
estimate
a
units
new
of
000 families
the end of
the
most
new
opti¬
construc¬
maximum of 475,in
the
next
15
more
than 3,000,-
living doubled
up
by
Bowles
said.
that
refuse
to
"To
the
will
housing
With Mackubin,
to
conditions affecting the
offering of foreign securities and
dealings therein, and related mat¬
ters."
AV.A
A, '■':/
ence
The Commission also states
that,
Harvard
a
and
&
22
Co.,
Louchheim
Light Street, members
imply
nation's
supply
as
you
builders
new
rental
Exchange,
cently discharged from the United
resumed his as¬
sociation with the firm.
H.
Gresham
partner
in
Poe,
Jenkins,
also
become
returning veterans,
j firm
for example, unless they are per- | ment.
formerly
a
&
Whedbee
associated
the staff
1934 and
lessening needs
in
of
some
the
Government
quarters
that
the
with
the
in the investment1 departfunds
for
Treasury
the
in
future,
is
it
part of its
partially exempt obliga¬
may
use
'
was
some
of these funds could be used for debt retirement.
1
.
Direc¬
adviser to the United States dele¬
His tieadauarters are in
gation.
the
Commission's Washington of¬
fice. /
,.■•■
,
-A.-A,vAA.A;--
.
.
A
Albert
called attention
Goldman
Nov. 16 to the
on
desirability of early mailing of
Christmas gifts and cards to civil¬
ians
said:
abroad.
...
In
his
:;v/r,, !A;.. •"
advices
'
,•//
....
he
.-
The Christmas
Holiday period is
approaching and the quan¬
tity of mail for foreign destina¬
fast
tions
will
increase
in
materially.
certain
countries,
together with lack of transporta¬
facilities, require the early
mailing of Christmas gifts and
tion
cards, particularly those destined
to distant
countries.
Letters Should
of
the
left hand
plainly
bear
sender
corner
/
be
the
in
and
and
return
the
upper
be full pre¬
paid. Parcels should be properly
packed in order to avoid damage
or
pointed out that the Treasury will not have the same
need for large working balances, as during the war
period, so
that
Assistant
an
fully raddressed,
cash to pay off some of the high coupon
tions that will be callable next year. . . , -
It
as
tor of the
Trading and Exchange
Division since June, 1941. He rep¬
resented
the Commission at \ the
Bretton Woods Conference'as an
card
believed
been
on
Conditions
Poe, and J, Kenneth Bates, have
for
has
of the Commission since
has served
A Postmaster
Major Philip O. Rogers, re¬
that
graduate
Mailing Urged
Legg
Mackubin, Legg
of the New York Stock
University
formerly active in the invest¬
banking industry, Mr.
ment
Early Xmas
BALTIMORE, MD.—Announce¬
ment is made by
States Army, has
1946.
"Obviously no balance between
supply and demand is remotely
possible in the near future," Mr
have
Roe, Rogers & Bates
,;./■/■
;<
responsibility
for surveillance of the U. S.
capi¬
tal markets with particular refer¬
•
respect to decontrol," he
time
same
filed in the form
were
offices
rent
area
nel
the results of extensive studies by
OPA
of
the
operation of over
200,000
trol
the
been
control has
At the
in
matters
are
.
rec¬
importance of devel¬
oping a long-range program of in¬
ternational investment that will
the
-
Moreover, the courts have re¬
peatedly tested and sustained the
...
.....
pub¬
cedures.
months, leaving
This
new
offerings of securities as well
Exchange listing, of and trading
securities, both foreign and do¬
local
mistic
wi.ljjpe the last big drive
financing of smaller deficits will be con¬
coupon
inves¬
Mr.
000
that the Victory Loan
dis¬
the
to
significant change.
tion calls for
STRONG INCENTIVE
for
information
matters, advising on the formula¬
tion of policies and
operating pro¬
Bowles
...
of
of
and
Regarding the request that dis¬
cretionary /authority
of
OPA'.'
.
.
interests
the
opportunity to testify—^rent
provisions were renewed without
full
rent
is
with
investors
results of these surveys show that
It
Commission
Provisions of the Securities Act Of
to
variation
the
private
banking and financial institutions.
for
local
the
made
institutions
private
vided
was
in
agencies
in recognition of
importance of for¬
eign loans and investments, both
private and public, and the neces¬
sity for the correlation of policies
adopted -by government lending
has been before Congress
Mr.
its
/
."■
appointment of Mr./Louch¬
was.
pointed out that the rent
program
discriminatory,
as
■,,
A "Mr.
control
rent
act
to
other executive
departments .and
Ample discretion
that
and
to
field of international finance.- The
tified.
been
Bowles
which
that it had appointed Walter C.
Louchheim, Jr., to be its Adviser
Foreign Investments, to advise
housing market," Mr. Bowles said.
"I believe it to be
thoroughly jus¬
complaint
has
on
consequences
of
forcing
thousands of families in crowded
to seek
on
on
lic
Mr. Bowles also reviewed brief¬
a
Answering first the association's
discriminatory.
,
the
rious
to
deposits, who can
purchase limited amounts of the drive issues, seem to be
showing
more interest in the 2*/4s than
previously.
Although these insti¬
will
started
get
tenants
areas
more
new
mittee of the Senate and House in
The out-of-town commercial banks with time
tutions
pointed out that by
December
said.
.
.
giving
advance
an
for im¬
way
by
.
than
/ The restricted bonds
continue to advance with the
opinion quite
/prevalent that these obligations will go through previous highs when
the Victory drive is over.
Non-bank investors are taking ad¬
vantage of the higher yield available in these securities, and it was
reported that sizable purchases were recently made in the 2*4s due
6/15/62/67, and the 2*/4s due 6/15/59/62.
The 2y4s of 1956/59
■
of
end
3,400.000
t
substantial
,
the
the
the maximum
families, an esti¬
mated 2,900,000 of them veterans'
families, will need housing.
in
commercial
V
/
Mr. Bowles
going to let out the 2*4% obligations until
more
.
sale.'
clears
building
—fair to the builder who wants to
."to help meet
opinion of many money-market followers that there
will be very little, if any; increase in the near
future, in the amount
It
on
rents that they
charge.
"The plan is fair and
practical
rent
'
,
and
may
control,
.
QUESTION
1939
sub-commit¬
the/longest
es¬
new
increased construction costs since
mediate
resi¬
re¬
units, Mr. Bowles explained
that it provides due allowance for
Sum¬
on
of
Exchange
Nov. 26
and
the increasing
«,
rental
association's
bank /eligible,/ the 2V2S due
9/15/67/72, it is being advised that this bond be purchased at present
prices. ... Any addition to the floating supply should be very quickly
taken out of the market.
aaaaa* ;.
v
unwar¬
industry."
construction
.
.
AA/fl
...
a
mer, Chair¬
man/ of
the
A. A commitments at these
levels, since it is possible that the floating
supply may be increased during the waning days of the Victory
>
drive or shortly thereafter.
to
In
proposed
letter to Alex-
Nevertheless, there is still a feeling of caution among some
of the trading fraternity
concerning the 2s at present prices.
They believe that it may be advisable to withhold a part of ones
reference
the
on
tablishing ceilings in advance
of
Estate
Boards.
...
buying, apd these bonds continued
With
slur
housing
an
Calling attention to OPA's
cently announced program of
"Heal
Jhigh ground,,paced
.market,
the
sociation
"
bank
exploit
ranted
com¬
Securities
Commission, announced
"The
National As¬
HIGHER AND HIGHER
The
to
shortage to the hilt is
control
AAA/
YAA
mitted
answered
Fereigei IhvisEeneni
The
state:
Nov.<5>-
on-
the major rent
institutional
certain
Exempt New Houses
on
Pointing out that this country is facing its tightest housing situa¬
tion, Administrator Chester Bowles of the Office of Price Administra-
able in
.
to
Denies Dis¬
<
Ground That Not More Than
470,000 New Units Can
Be Provided in Next 15 Months.
A/A-.A,--- A"
matter of time before the
longer partially exempts would be taken
on by institutions who
were in a position to assume the large
premia
..
Estate Boards
Housing.
Because of the growing scarcity of long-term
...
Loschheim SEG Adviser
Housing Shortage
By JOHN T. CHIPPENDALE, JR.
i
2601
^possible loss of contents while
in transit.
The use of good qual¬
ity wrapping paper and tying with
strong twine is recommended/A
:
Thursday, November 29, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
2602
Witb-efforts how being
production and
with the assistance of loans which
have already been granted, it is
recovery.
(Continued from page 2576),
the world if it is based upon
of
principle of balanced expan¬
sion.
This means that the enor¬
mous
capacity of our country to
the
produce, to consume, and to save
result, in the post-war pe¬
must
exports, exten¬
imports, and 'extensive for¬
riod, in extensive
sive
eign investments.
>
extensive for¬
eign investments by the United
States will have important bene¬
fits both to the United States and
to the rest of the world.
The
scarcity of capital in undeveloped
the
"After
war
regions and in countries devas¬
tated by the war will provide a
American
large opportunity for
investments.
If loans
made
are
productive basis, both the
lending nation and the borrowing
nations will benefit from the re¬
a
on
sulting industrial expansion. The
United States will benefit from
which foreign loans
investments provide for ex¬
the stimulus
and
which
ports, and from the returns
we
for¬
will later receive on our
eign investments. Other countries
vWill benefit from an increase in
productivity made possible
their
by more rapid industrial develop¬
ment.
At the same time, the re¬
sensitive to changes in the
commodi-
for particular
demand
less
world
them
make
will
economies
their
of
diversification
sulting
'
ties.:£„?•.■■;?
■' •
/>
"Past experience
provides no
support for the view that indusv.-
_
the
world Will destroy
our
export
markets.
We may expect, rather,
that as the incomes of other coun¬
tries are increased by develop¬
/: totalization
ment
.
in¬
will likewise
countries
•these
to
exports
our
programs,
of
rest
the
of
goods in practically all
of Europe.
Millions of
sumer
countries
people in the liberated and oc¬
cupied countries are inadequately
housed, inadequately clothed and
without sufficient fuel to face the
that
the Committee
believes
international ^conference
an
should be called as sooq as prac¬
pol¬
ticable to establish a general
icy of reducing barriers. The im¬
mediate establishment of such- a
policy would be of enormous as¬
sistance to businessmen both at
home and "abroad in making post¬
The conference should
not
only? reduction of
plans.
war
consider
tariffs, but also such trade con¬
trols as import quotas, export sub¬
exchange
sidies,
\
tween countries.
order
.
structures
to
there
where
Even
supplies
are
adequate
the farming
in
food
of
of
areas
country, lack of trans¬
a
portation prevents this food from
being carried to the cities,- with
the result that the people in the
large
cities
tions.
Coal
have inadequate ra¬
production, while con¬
siderably below normal, is ahead
of the possibility of transporta¬
tion during the immediate future.
This disruption applies not only
to railroads but to waterways and
shipping.
The highways
in better shape but there is a
this fall.
The Committee,
accompanied by the staff director,
Dr. W. Y. Elliott, of Harvard, for¬
mer
Vice-Chairman of the War
rope
Board,
Mr. Far-
and
Department,
State
the
of
spent eight weeks in Europe and
the Middle East.
The principal
countries
were
ences
were
adors
and
goods needed to support their own?
populations,- / The procurement, of
a relatively limited amount of raw
materials, such as coal and cot¬
ton by Italy, for example, would
go far toward supplying the Ital¬
ian population not only with the
necessary imports but with means
of payment by the laborers in
Italy for the goods they need. As
long as the resumption of indus¬
try is held back, the need for re¬
is no
lief continues because there
in. the
coastal
purchasing
are
hands of individuals and no means
placed
power
satisfying the needs of those
great shortage of motor transport.
for
Progress is being made in most
countries in restoring damage to
the railroads but there is a short¬
individuals with consumer goods.
age
of rolling stock. To meet this
the Committee recom¬
situation
that
mended
should
there
be
a
centra^- transportation coordinat¬
to handle existing
equipment and to allocate the new
ing
authority
equipment where it can do the
most good.
It also suggested that
every
effort be made to speed
spiral of inflation which this
scarcity economy sets in leads to
the need for continued relief. The
The
problem of setting up sound bank¬
ing institutions uhdeh;thesb;coiiditions presents grave difficulties.
The essential, however, is to re¬
/ production - of
consumer
goods and goods for export. Un¬
der these conditions the Commit¬
tee
feels
that productive
loans
could be justified to break bottle¬
necks
through.. the financings of
sume
-
France, Belgium and also in Ger¬
many.
The Committee pointed
out the necessity of eliminating
the administrative barriers which
raw-material purchases, transpor-
freedom of pas¬
sage
on
some
of the principa
waterways.
Many of the surplus
trucks which our Army has in Eu¬
rope
could be used to ease the
highway situation and they should,
Bank
operate against
be allocated to the countries most
Likewise
them.
of
in need
tatiop eqi^ipment,•and fuel.,
Such loans have already, been
visted and confer¬
held with
the
Ambas-
our
the Em¬
staffs of
granted £ by
siderable
by banks or two
Private loans
credits by business
be justified
in
three year
concerns
would
cases.-
some
con¬
assistance.
'
some
being
are
These should be of con¬
sidered.
or
Export-Import
the
.
others
and
conferences
cases
with
heads
the
ments,
including
Attlee
and
were
held
the
govern¬
Prime
Minister
of
Gereralissimo
Stalin.
The Committee held long discus¬
sions
economic
German
the
on
situation
with
General
Eisen¬
hower, General Clay and members
of
their
staffs.
The
Committee
has just submitted a report on
its
findings to Congress.
I will attempt to summarize the
conditions which we found and
some
of the conclusions
af which
the Committee
arrived, with par¬
ticular reference to the part which
this country should play in the
rehabilitation of Europe.
Immediate Problems in Europe
Due to
struction
the
resulting from the
conditions
and
there
exhaustion and
are
are
far
from
many
de¬
tain
countries, and surplus small
Fuel
in
coastal
and
shipping.
•
will
There
■
v
■
.
..
.
need '
be
also
Next
to
which
is
the
in
Poland,
furnish
parts of Europe. The coal
production in all these sections is
below
restrictions, and also to adopt the
Bretton
Woods / Agreement.
As
soon
as
international affairs be¬
normal
due
to
lack
of
more
stable, private lending
should again become an important
factor.
//??
;;
^
h"
Countries
Individual
v
;
j
the situa¬
While this represents
tion in general in Europe, the con¬
ditions
vary
considerably,
of
the
to
resumption of full economic
life. There is a great lack of con-
in the different
course,
being made
in these
countries but production is rising
at a slow rate.
It will probably
be necessary to continue to send
to increase the production
coal from
this
country next year
to assist industry until their coal
production can be increased fur¬
ther. v,??
?.
Until
industry can be started,
unemployment" and the lack of
production will impose many bur*
dens
on
the financial structure of
each
country
and increase
need for relief. Production of
goods,
sumer
avoid
so
the
badly needed
to
inflation and to reduce the
sist
in
In Italy relief, is
and there is an in¬
flationary trend at present. Its in¬
that
this country do to as¬
immediate
country. /
also necessary
dustry, however, is almost
and the indications are
Holland
situation?
>
rirst, of course, appropriations to
.
able
to
r
return
are
conditions
but
Committee
the
there
not visited by
was
to finance?pot
they will be able
only the fpod and other essentials
which they have always imported
but also the machinery and mate¬
rials
badly needed in the con¬
so
struction of houses and in the re¬
and
modernization
It will be necessary
to impose severe import restric¬
tions on other goods, particularly
luxuries, during this transitional
construction
industry.
of
'£■•/;' .'
period.
;•-; >>?.;.$£'£
;•
vitally
country,? is
This
inter"-
•
understood to be much worse
intact
that, if the
The food situation for
the total of France
is only about
15% below normal but, as
other
countries,
is
there
in the
insuf¬
There is
ficient food in the cities.
France;.there is
market and
an
active black
prices are very high.
Lack of fuel and raw materials
are
■■
holding
3 -t
■
:t
back
V
industrial
the
'•
.1
.A
Any¬
other nation.
thing which this country can do
to facilitate; recovery in? England;'
lead to- mo
will
,
countries!and will pro¬
world stability and. recovery.
two
the
mote
This country
ward ;its
could contribute to¬
by advancing
recovery
long-term loans to Great Britain
but
as
the Colmer Committee ?
points out there should be assur¬
ances given
that steps would be
tqken by Britain to remove re¬
strictions
on * trade, within 1 the
sterling areas and to encourage
world trade in general. This prob¬
ably will involve a scaling
arid' refunding ot long-term
gations of large
sterling debts
which England now owes to many
been an important factor, in
foreign trade and its businessmen
are now keenly
interested in de¬
bloc.
ways
The
veloping the post-war trade.
financial structure is sound
and
officials f: and
governmental
the
businessmen
able.
The three countries which pre¬
principal problems in the
economic recovery of Europe are
sent the
England, Russia, and Germany^-
with the principal
ministers in the Government and
with some of the leading business¬
After talking
one? cannot help but ? be
men,
the
with
pressed
ability
im¬
of the
in control and with
their moderate views.
'They are
who
men
countries
the
the sterling
in
the
Another prerequisite for
loans
large-scale
of
granting
removalof tariff
preferences, quotas, and exchange
controls, and of the temporary imshould
port
the
be
:,
.
-
Restrictions.
Russia
■
~•
-'* ■
• ■
-
the
As
in
stated
'**:
"v".
,
■','
are
seriously concerned with the diffi¬
cult problems England is facing
and they are attempting to solve
it-
•
Committee has
Colmer
its report, there
would
to be real economic oppor¬
seem
tunity for extensive trade
United Kingdom
??•'•.
of
down
obli¬
very
them in
a
the United States
Committee
Russia
was
between
and Russia. The
informed : that
and
needs/ immediately
-
during the next few years a wide
variety of goods produced in this
country, such as locomotives, rout¬
ing £ stock, £ transportation equip¬
of all kinds,
ment
.
machine topis,
construction equipment and mapy
of capital goods.
the other hand, Russia can
other types
On
sup^-
courageous,
their economic conditions are
ferent from ours.
living of the average man in
try
as
dif¬
The standard of
Eng¬
below that of this country.
is the fact that indus¬
reason
on the whole is not as
it is in this cbuntry.
efficient
On the
other hand; Government is more
efficient than here and there is a
better coordination between
Gov¬
especially
in foreign trade.
It seems to be
the attitude of the present Gov^
ernment to give an industry full
opportunity to improve its effi¬
ciency and increase production and
wages, but if the industry does
not deliver within reasonable time
the
Government
will
probably
ernment
business,
and
take action.
:
-
^
f
England be¬
unfavorable
trade but this was met
As is well known,
fore the
war
had
an
r.
1>
caviar.
-
.
y't
,
tremendous de¬
struction in Russia and at least
40% of industrial capacity in Rus¬
sia was at one time under German
domination. The? coal mines in the
There has been
were largely wrecked
industrial area around
Don
Basin
and
the
Stalingrad was reduced to
ruins.
-
together with the
of men and the
effects of the scorched earth pol-
This destruction,
loss
of
millions
icy on their farm lands, have
duced the standard of living of
considerably
people
which
level,
prewar
was
re¬
the
below the
high, ?of
never
,'fl|.
Russia.
The Committee
points out in its
report that whether the possibility
of expansion can be realized for
the benefit of both countries de*
pends not only on the possibility
obtaining
productive
income received from.? over¬ of Russia
loans from the United States, but
seas investments, income for ship*balance of
by
ping,
insurance, and other serv¬
the' war she was
a
substantial pro¬
ices.'?' During
forced to sell
portion of her investments and she
debts4n the form of
also incurred
blocked sterling to the extent of
$12,000,000,000. Her ^income from
within a reasonable time resume shipping and the/other services
has also been greatly reduced. On
production on a scale which would
the other hand, she faces the prob¬
prevent the necessity for further
relief. :.
■?■;•?• '{•.•>?/ \
' j .• lem of repairing and replacing the
France is relatively better off homes which were damaged- dur¬
than most of the other liberated ing the war and making up the
countries.
than with any.
the war.
Its
standard of living is the highest
in Europe. ; The country has al¬
during
Sweden
in
be assisted in ob¬
materials, Italy? could
raw
ested; iri?the? British Vsituatiphrbe^?
cause in the past • our trade with
Great
Britain has' been greater
than in either Belgium or France.
Business has been very active
country could
taining
in
this
estab¬
time be¬
fore conditions will be normal in
be some
great shortage of consumer goods
Relief
can
currency
new
a
It will
lished.
■
con¬
need for relief, depends upon the
rapid availability of coal and basic
raw
materials, such as cotton,
wool, minerals and lumber.
What
Greece and
be
should
trade
rapidly to normal.
One
coal
to other
far
portation^ are the factors which
are now holding, back, recovery
As soon as more coal can be ob¬
tained, its industry and foreign
land is
and
also
Czechoslovakia
predominant type for the first
Committee feels
that they' should be conditioned
upon the willingness of the coun¬
tries to reduce trade barriers and
come
capable. Coal and-trans¬
ficials are
few; years—the
transportation,,
now
concerned—and these will be
are
of¬
Government
the
and
sound
situation £ is
financial
the
aged;
the
Materials
Raw
shortage of coal and raw mate¬
rials is the greatest obstacle to the
resumption of industrial produc¬
tion.
France, ^Belgium, Luxem¬
burg and Holland are all depen¬
dent upon the Ruhr and the Saar
areas
for coal.
German Silesia,
war,
normal
obstacles
in Europe.
of the countries
for industry and for
repairs to houses damaged by fhe
bombing.
Thus their problem! is
to build up exports quickly so tfiat
democratic
ply this ccountry with . minerals
manner. In appraising the methods
such as
magnesium, chromium,
for which they will use, the American
asbestos/platinum, and timber arid
the businessmen should realize? that various wood products, furs, arid
countries.
bassies, with the finance and pro¬ manpower and to transportation In Greece, for instance, need for
difficulties.
The coal production
duction ministers of each coun¬
relief is great.
Inflation has al¬
in England is also way short of
try, and with business men.
In
ready gone the whole way in
the needs. Efforts are
some
most
than
self-contained
nearly
,
of the
what
these principles could be
applied at this time, seven mem¬
bers of the Committee visited Eu¬
riss,
responsible for relief, until indus¬
try can be revived and food and
clothing becomes availably Much
'
extent
Production
no
and building
■
craft used
."
„
determine
to
is
surplus ships, Liberty ships longer-term loans to assist
and particularly, could be used to meet general reconstruction and recov¬
the shortage in shipping in cer¬
ery. •As far as governmental loans
controls,
with the movement of goods be¬
In
There
question about the need for; expected that in a comparatively
relief in the liberated areas and short time France will be well on
the
way
to industrial recovery
in other-countries such as Italy
France
has,' always
been more
and Austria for which UNRRA is
UNRRA must be continued.
State interference
other forms of
increase
It still
has large holdings abroad of gold
are strained
and there are infla¬
and ?; investments
but ;; most ob¬
tionary trends in several coun¬ of the surplus property which we
servers feel that before its finan¬
tries.
Black markets and barter now have in Europe can be used
cial house can be put on a sounc
for relief purposes .as a part of
are looked upon as normal condi¬
this
tions of trade.
country's j contribution
to basis, the franc must be devalued
? • v,
from
its present level.
France
UNRRA.
should soon become an important
/
;; ' Transportation
■'•?;■• '■"•%??.;?•?'■:?.■' Loans
factor in the foreign trade -pf this
The
disruption of the"? whole
While recognizing the need for
country,. both as to exports and
transportation system in the liber¬ immediate relief, ? the Colmer
imports.
'
*
ated and the occupied countries is
Committee points out in its re¬
Belgium :has
probably made
probably the most serious factor port that the need can be much
greater progress toward recovery
delaying recovery. The transpor¬ better met by productive loans to
than aiiy other country in Europe
tation system is functioning con¬ enable the countries to begin to
Its industry-was not badly .dam¬
siderably below 50% of normal. manufacture and to exchange the
financial
The
winter..
crease.'?;.. "'/?"/Vv.-\\S-!V i'-fV■••
"As a means of relaxing restric¬ up production of transportation
tions upon trade throughout the equipment in - countries like
world,
to
made
lit
upon
the full cooperation of;
two countries in working out
the
the ?••
conditions for repayment of loans
equal
thought
;hat the granting of loans should
rie dependent upon the clarifica¬
tion of the several points: (1) the
full and frank disclosure o'f Rus-*
sian production statistics and an
opportunity to scrutinize the facts
and
working??, together
terms;
on
The 'Committee
which they are based, and
proportion of Russian prodeficit incurred in the war years, duction will continue to be de¬
voted to armament; (2) the dis¬
when no houses were built.
We
closure
of
terms
of the trade
were told that over 200,000 houses
had
been
totally destroyed and treaties made with eastern Eu¬
that 3,000,000
others had been ropean countries under their con¬
damaged.
New machinery was trol; (3) opportunity for business¬
men and journalists to travel more
not provided for industry during
freely within Russia and right ?of
the war, to the extent that it was
entry of planes into Russia; (4)
in this country, and large sums
...
......
— 0_
the protection of American propwill be needed for new machinery
upon
what
.
,
*
.
!.
*v
Volume
Number 4442
162
1, *4
THE COMMERCIAL & FINANCIAL
CHRONICLE
260?
erty rights and the right to> dis¬
tribute papers, books, etc., in the
the responsibility to prevent seri¬
ous unrest in their
occupied zones.
ble to financial solutions. And for
Eastern
fitted.
un¬
Failure in any respect to meet this
these
factor
responsibility increases and pro¬
longs the necessity for large num¬
tions at hand—institutions of test¬
ed and proven capacity. For the
The second error of the '20s was
the over-loading of the economic
bers of American occupying forces
beyond normal needs.
restoration
countries
der
its
in
Europe
Another
control.-
which must be considered is how
much gold
Willing
to
loans.
this country would be
take in payment of
\-'p; \;V.. 7/
/tr:l Reconstruction in
'7' :Vc
"The
■
To quote from the Colmer Com¬
mittee report: ' 7 v
V.-'vv
^
tories
basic to
the
the
of other
recovery
of
impose
United
relief
on
powers^ principally
States, if widespread
medium
of
of
and
it
suscepti¬
found
institu¬
international
an
exchange, it had the
cooperative
system
of
national
markets, captained by their
respective and collaborating cen¬
Germany would be
of
problems
solutions
money
for the ordinary
burden
a
western
the
convinced
is
Germany of the fac¬
necessary
industries
to
;
7 "The reconstruction of Germany
is
Committee
that to strip
Germany
financial
tral
banks; for relief and rehabili¬
tation, it had the institution of in¬
ternational banking, with its long
1 constructive
achieve¬
ment in the direction of
capital
record ' of
The
answer
that
was
it
never
machinery
siduals.
with
The
of
program
uneconomic
aftermath
of
finance
war
re¬
every
involves
considerable amount of shifting
and in that instance, the
a
of costs;
settlements
of
the
Interallied
Debts and the Reparations were
efforts
ing of
known in the '20s; and completely
ignored.
at
international
an
war costs.
There
shift¬
was
never
•
Present Situation
/So far this paper has been
phrased in the past tense. Unfor¬
tunately Europe's financial needs
are in the present
tense, and some
observations on the present are no
longer escapajple; indeed, two are
implicit in the preceding remarks.
The first concerns the disposi¬
tion of
residuals. The
war
Inter¬
any doubt of the validity of the
allied debts from the previous war
dangerous condi¬
Interallied Debts; the terms were still exist in a state of technical
tions; to ; the public health are to movements. "
77
"
1 denominated in the
bond, and the default; and the still larger debts
be avoided in all Europe,
;7'-7^7
settlement was far easier than the of Lend-Lease from
the
recent
; Present Role of International
"Germany before the war was
bond. While the original Repara¬
war. I do not see how the financial
the
Finance
most
important
industrial
tions claims were exaggerated, the needs of
achieved from what it saw of the
Europe can be seriously
If this underlying faith in. the eventual
country of Europe and the largest
unbelievable ruin created Orr the'
dispositions represented considered
unti^ these have been
importer as well as exporter on financial solution of all economic international
German cities and centers of pro¬
agreement.
Yet erased from the slate.
the Continent. 7The. industrieSiOf: problems was
strong in the '20s,1 within less than a decade both
duction." "
Second, I would raise the ques¬
countries7 surrounding Germany it is scarcely weaker in the '40s. settlements had been abandoned tion whether
the immediate needs
;v7<The^Committee
depended ,;in large measure on The first international plans to be and are now
that all the major cities in Ger¬
forgotten. The world of Europe can best be met by
Germany for parts, machine tools, discussed in anticipation of the
many had been largely destroyed
economy had never supported the
loans.' The loan is a familiar de¬
and components, as well as on her
end of hostilities looked to the residual
ajnd
there are only
over-load; the finance vice of international finance, and
two cities
coal, potash and other fertilizers. restoration
of
an
which escaped with less than 50%
international' mechanism had
momentarily the gift is not; but we should at
To destroy .these basic German medium of
exchange; and these made it seem supportable. To least raise
destruction of housing.
the
7 7/
question
as
to
industries would; be to immobilize were
presently suppleihented With' quote William Adams Brown, it which is the most appropriate—
While a considerable part of the
jnany other industries dependent pla ns for th e creation of an inter¬ had "created a facade that masked the most "economic" medium for
machinery in Germany was not
upon them.'
national
bank for
77-'s •
!I <
longer term the true nature of economic prob¬ meeting the immediate financial
completely destroyed, steps are
;
"The simplest analysis shows loans. As
provided in the Brettort lem^. It promised escape from rad¬ needs of Europe.
fceing taken to remove the warthe dependence
of.. the
indus¬ Woods 'arrangement, the Fund is ical economic
making industries. As long as the tries
The papers in the morning ses¬
readjustments by
of all the other countries
functionally the successor of the making .7 hard
control of Germany continues and
and
intractable
sion gave a vivid picture of Eu¬
surrounding .Germany upon Ger¬ international money market; and
the destruction of the war-making
problems appear transitory and rope's needs—food, fuel., shelter,
man
raw
materials and German its board of directors is the
industries is
suc¬
transitional. It was a false sign¬
thoroughly carried manufactures.
transportation. To a great extent
To go beyond the cessor of the
cooperative organi- post that made dangerous ways these
=out, as is now being done, there
urgent
needs
cannot,
by
limits of -destroying the war-mak¬ zation
of central bankers. Some seem safe." The fault was not that
is no possibility of Germany's be¬
their nature, be met from abroad
ing power of Germany is to de¬ slieh; institutional innovation
our- claims -for
was
coming a danger to the peace of
repayment were —they are matters of internal so¬
press the whole standard of living
logically required for two familiar unjust, or that the Allied claims cial, economic, and political or¬
the world*
Every one, is agreed of
Europe and, £ through it, of reasons: the former international for
that this control should, be con¬
Preparations were unjust, or ganization. Yet until this internal
world
recovery. ,7 It follows,
of money market can no longer
tinued.
that this or that one of the aggre¬
The Committee pointed
oper¬
organization can reach the condi¬
out that the only foreseeable dan¬ course, that our own foreign trade ate in the presence of rigid money
tion of a "going concern"
gate of loans was imprudent. The
(and
with Europe would suffer in
pro¬
rates; and as the paramount func¬ fault was that the whole struc¬ many areas of
ger that Germany presents is that
Europe are not go¬
portion."
;
A"
77
she might become a source of in¬
-7 V: tion: of central banking is the ture was unsound; and the solemn ing concerns), it does not seem to
The Committee quoted General
maintenance, of Ihe national pat¬ conferences, the
fection foif the health and eco¬
ingenious plans, me that their financial needs can
Eisenhower as saying:
•;"7 *' —: tern of money rates, the central the
nomic and social life of all Eu¬
glowing
prospectuses
were
properly be met by loans in any
"We want a lean Germany but banker
can not resume his former
rope if the cities in Germany are
only the sequences of a charade. accepted use of that word.
7
'
not* a hungry, Germany. A hungry
not
international functions. The Inter¬ This is not to
maintained on a minimum
To a degree, and only a limited
say that the pro¬
Germany is a dangerous people." national
Bank, provided at Bret- gram accomplished nothing; it is degree, they can be met by giftsbpsis of health for the population: ; Thus the picture in Europe is ton
Woods, is the logical supple¬ to affirm that it could have ac¬ gifts which eventually may make
7w I would like to quote from the not a
very bright one.
Progress ment of the Fund, and function¬
complished more at a fraction of Europe able to qualify for loans.
Committee's report its conclusion however is
being made toward re¬ ally is the successor of the inter¬ the cost if the
uneconomic or anti- The word gift is a hard word, but
regarding Germany:''■ i ,• 7
'' covery .in most countries.
As¬ national bankers.
'
! ; economic nature of war
residuals it is an honest word. But on what
the judgment of the Com¬ sistance in the
form of relief and
7"' It is currently rathe*' fashion¬ had been acknowledged.
'7777 grounds can we'consider Europe
mittee, a complete stopping of productive loans are needed from
able to reduce qhestibns of func¬
The third fundamental error de¬ a claimant for our gifts?
>
■".»
Germany's productive capacity in the United States. Immediate aid
tional institutions to the
rived from political timidity. The / If the object of the war was to
argumenany
zone
will impose a severe will
greatly facilitate the resump¬ tum ad hominem. The interna¬
records of the period indicate that
smash Hitler, that end has been
burden upon the rest of
Germany tion of production and trade so tional financial
institutions with warnings were not entirely lack¬ attained and the war is won. But
to maintain sufficient production
that further relief will not be nec¬ which we
are concerned
were, in
ing. Some were shouted down; if the object of the war was to
of a peacetime character to
pre¬
essary.
Productive loans and^a the '20s, in the hands of
more were ignored.
persons
vent widespread disease and un¬
Others, more save .the integrity of Europe and
sound
cooperative § relationship called "private
individuals"; un¬ influentially
rest in Germany and, as a conse¬
placed, were
dis¬ of * European
civilization,
that
should result in improved trade
der current proposals, the succes¬ missed, as
"politically impossible." end has not been attained, and the
quence, in the rest of Europe. The of the world and
thereby con¬ sor institutions will be in the This
proposal
would
offend war is not won. As I see it, the
Allied Nations have undertaken tribute to a
European countries
and
through
it world recovery.
'. The Com¬
mittee was in full agreement that
the destruction of Germany as
aj
war-making
country
had • been
.
starvation
and
.
,
-
,
-
.
.
,
•
stable peace.
*
hands
of
make
Europe's Financial Needs
bbth
in
public and private agencies
country devoted to it a
nancial; and in the field of
this
great
amount, of
nomic
intelli¬
energy,
ing
■
This premise was historically
logical. The early years of the 20th
century had seen the flowering of
.
and
way
another, the
various
brought to what
were
called solutions; and
then,
almost af the-moment of
seeming
success,7 the whole laborious fa¬
bric tumbled in ruins. Something
were
the money economy into a
highly
developed phase of finance capi¬
talism; and the war had demon¬
strated
bly wrong—about our earnest and
costly efforts. Certainly, we wish
tQ avoid the mistakes that led to
anticipations
such catastrophe. The first ques¬
tion
is:
What, precisely, were
tlie mistakes of the '20s? /' 77:'v7;
71
propose to
sideration
my
ent
clear
even
a
that
we
we
have
idea
some
those mistakes were; and
know,
never
as
our
my
me
the
never
of
un¬
was
what
we
neces¬
a
alchemists': dreams;
the art, not,
finance
indeed, of trans¬
muting base metals into gold, but
of
transmuting paper .into ,the
shall
international
program develops, .whether we
would of
long war
could
not
be financed;
actually
finance 7 proved
-a
facilitating
mechanism for extending military
magnitudes to unprecedented di¬
mensions.;: To '-economists^ ^finan¬
ciers, statesmen and people gen¬
erally, it seemed the realization of
differ¬
shall
academi¬
limiting factor of
war
sity be brief because
insist that
avoid the mistakes of the '20s
less
would prove the
your con¬
would give quite
either
or
war—that the
version of the mis¬
list, I do not
of
wealth of nations. It is small won¬
der .that the economic problems of
are
repeating or avoiding the mistakes
of the '20s, unless we provide our¬
selves with some criteria of judg¬
primarily but exclusively in terms
ment.
of finance;
the
been
rope's
that in
some
are,
respects
similar
generation ago.
time
.Europe's.
were
assumed
our
to he
needs
primarily fi-
the
have
they
due to faults in the
were
ing premises
acting.
underly¬
which they were
on
Fundamental
Errors
,
Since I believe that this failure
was
not
primarily
viduals
or
a
of
even
fault of indi¬
institutions, I
••First, an exclusive preoccupafinance; or perhaps, more
bluntly, a confidence in the loan
as
the
universal
economic
ills;
for
panacea
There
I
was,
all
be¬
lieve, a failure to appreciate what
a
complex and delicate mechan¬
ism the political
economy of pre1914 had
been; how many intan¬
gible values had been destroyed
by a war in which physical de¬
struction
concentrated
was
narrow zone.
in
a
In the preoccupation
simplicities
banking."
•
The
been
re¬
"money
and
"
world
economic
of
the
'20s
saw
problems essentially
-. "?j.
all
as
often
must
secretly
someone
its
not
regarded
its mere
acceptance but
publication as "politically inex¬
pedient." By. what peculiar in¬
sight do negotiators recognize this
or
that suggestion as "politically
impossible" without submitting it
to the
responsible political author¬
ity? To a degree, the international
financial
conferences
conducted in
were
the
'20s
world of
a
of
con¬
The fourth mistake of the '20s
been
versally recognized; yet little or
nothing was done to correct it. As
every school boy knows—literally
international loan is
—an
appraise
world in which
to
were
be
the
was
kind
a
of
tjiose mechanisms
applied,
institutions
which
nancial mechanisms
were
plement. It
a
was
not
the
to
fi¬
sup¬
question of
was
good
question
or
was,
bad
in
whether
itself;
it
the
fitted.
a
pre¬
payment of goods. The borrower
buys present goods with the loan,
the lender buys future goods. This
simple fact
ditions.
presupposes
The
borrower
two
con¬
must
be
capable of producing at a specific
sired
there
acknowledged
culiarity. In the '20s it was known
to be a mistake; the fault was uni¬
what seemed to be tried and
to
often
so
that it would hardly be necessary
to mention it, except for one pe¬
upon
whether the financial mechanism
of
conferences,
future time
nomic
have
national
finance, and in the reliance
mechanisms,
which it disliked,
this
because Hitier denied
with
proven
failure
eco¬
European state. It entered the
scious make-believe.
with
an
war
has
enumerate four.
had
that
damental
Of these I shall
'
nomic ideology
the
not enter
did
Hitler
or
offer for your consideration what
I consider to have been its fun¬
errors.
world
because
its
buried because
attribut¬
are
the
should
has a surplus of wisdom at
disposal;
but
the
historian,
leafing over the records of inter¬
overseas
war
never
mistakes of the '20s
able to the personal
shortcomings
of the actors; I believe that
eco¬
into the happy mathemat¬
France, and that would antagon¬
ize
England,
the
other
"could
never get by Congress." The world
be dismayed to discover how much
of
this
scanty store is
and
ical
a
Certainly at that
economic
should
soluble not only
as
to
changed political, social, and
solved
premises
to; those of
regarded
in
economics
topic of this paper: "Eu¬
Financial Needs,"
shows
today
world
"public
seems
difference
and that the formerly
mysterious and dismal subject of
,
The
postwar
this
some
the
butes depending on general intel¬
lectual propensities. But I do not
believe that what proved to be the
of
financiers. In 1914, it had
been widely believed that finance
.
Lam / entirely satisfied with
own catalog. But it seems to
quite
cians
'20s. No doubt other
takes of the
persons
offer for
capacity
a
the credit
.mechanism to transmute capital
into income and income into
capi¬
tal, in a measure f&r beyond the
had evidently been wrong—terri¬
Mistakes of the '20s
eco¬
complete
reliance was placed upon institu¬
tional finance.
and goodwill, to say noth¬
of vast sums of money. One
gence,
problems
reconstruction,
To
all
world — the
difference
between
goodness and badness; with the lo¬
cation of these respective attri¬
(Continued from first page)
-
-
called
persons
officials."
such
goods
quantities. The
successful
desire
imports
in
essence
foreign
for
and
of
such
every
loan has
the
but the
not
spe¬
borrower
well known that I blush to
peat
tegrity of Europe and the unity of
European culture; because in at¬
tacking European civilization he
attacked every people who were
spiritual partners in that civiliza¬
tion.
:'■/;;7^-'7 7;7:7 7
The death of Hitler did not undo
his work of destruction, and
until
Europe has been restored our re¬
not ended. I do
should-approach
responsibility in a spirit of
bargaining. There are times for
international bargaining, for hag¬
gling, for horse-trading. But you
sponsibility
not
has
believe
we
this
cannot trade horses with
a
fellow
who has no horse; and at this time
Europe has nothing to trade, and,
I think, little that it can candidly
even promise.
^
:7
For the immediate future, I be¬
lieve
that
the
financial
needs
of
Europe should be regarded as war
needs, and met as the war needs
were
met, in the spirit of lendlease. The letter of lend-lease ex¬
pired by statute when the shoot¬
ing-war stopped; but I believe the
spirit of lend-lease shows the eco¬
nomic approach to Europe's finan¬
cial needs for
*■'
some
time to
'
come.
7
it.
But
it
was
Wiley Bros. Inc. Is
Formed in Nashville
NASHVILLE,
been
imports—and
general,
products
in
was
capable of producing. This fact is
so
or
the in¬
by the lender, and the lender
desire
cific
war on
surplus of goods de¬
a
at that specified time contracts to
the
because he made
re¬
equally well
TENN.
—
Wiley
Bros., Inc., has been formed with
offices
to
in
engage
ness.
the
in
Stahlman
an
President
David W.
Building
investment busi¬
of
the
firm
Wiley,-formerly
ficer of Jack M. Bass & Co.
■
..
•.:/■■-•
7';
an
is
of-*
<
Thursday, November 29,-1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
•L—.
A
Fraud in Sale of Securities
place the purchaser of secur¬
ities in such a position where he
not
(Continued from page 2577)
police power, nave enacted
laws regulating the sale of secur¬
>:
their
Blue
ities.
the
in
foundation
have
laws
Sky.
To more
to a case
require that securities
might exist in the sale.
where
1
we
of
refer
I
particularize,
are
be sold by means
the
the
other
conflict
—
| the application of Blue Sky stat¬
Weak.
acts,
utes
The sale of
aggrieved pur¬
chaser, who has been defrauded.
Civil Actions Against Fraud
*.
';
principally to civil actions
against sellers of securities where
fraud has been alleged as an in¬
ducement for the purchase.
; Under
the Common Law, the
rected
:
following elements must
to constitute actual fraud:
1. That the
-
representations made
!Z..
'/
*
/In most cases,
the
That
2.
claimed
to
o,.
•
to
a
did not
matter of opin¬
future promises.
v,
♦,
material existing fact and
constitute
ion
or
That
3.
mere
a
making the
could
by
some
the
party
representations
have
means
or
manner
tionship to the purchaser.
>
ascer¬
tained that it was untrue.
be relied upon,
v
w
That the
"
was
It
is
damaged
statements
as a
/''Z/vi/''V
difficult, sometimes,
very
determine
whether
and
or
the
not
representations
made
by
false.
The most flagrant of
the
seller
true
are
or
frauds
are couched in language where it
is impossible to find any single
statement
distinct
representation
or
assertion
which
or
a
is
false,
intended
impression
wrong inference
yet the whole set-up is
to create
and
to
an erroneous
leave
which
tends
fraud
a
the
to
deceive
and
de¬
purchaser.
This
has
been particularly true of secur¬
ities sold by means of a prospec¬
tus.
The Supreme Court of the
under¬
under the Ohio law with¬
taken
out
license and in most cases by
a
only
perfunctory filing in. the
,■'TZ
'Z /.':*
a
The
their
it
make
securities.
who
those
regular business to
Unlike the first
the
selling and consequently are
speak that truth to the purchaser
at all times and nothing else.
harm upon the investing
public, the second class of sellers
are
considered to
be expert in
the securities business with an or¬
ganization-trained
of
the
in
art
The second class are
^Blue Sky Laws require
not only that the
dealer be li¬
censed, but that each salesman
working for him also be licensed.
selling.
dealers.
The
licensed
dealer
commission
always re¬
for selling,
the amount of which
commission
ceives
a
is
regulated in rhost states having
Sky Laws, even though he
may
have no pecuniary interest
in the corporate issue.
The sell¬
ing of securities is his business
Blue
and
his
eged
tent
The
livelihood.
denotes
he
such
a
high
those who sell secur¬
upon
ities
under Blue Sky Laws, inno¬
cent
misrepresentations,\in some
whether
actionable
not
or
there
proof of an intent to deceive
or
defraud upon the part of the
seller.
All statements and repre¬
sentations made by sellers of se¬
was
curities ardmsually
made with the
the part of the seller
they be relied upon by the
intent upon
that
purchaser
and
conversely
and
likewise, the purchaser is pre¬
sumed to and does rely upon the
representations of
However, proof of re¬
liance by the seller is always im¬
portant and may be fatal to re¬
covery, if omitted.
" ' S '
statements and
the
seller.
The Assessment of Damages
The
question
of
damages
presents a unique situation in
suits where fraud is alleged
in the sale of
proven
What
the
is
measure
civil
and
of damages
What is
cases?
in such
.;
also
securities.
the yard¬
stick that should be used in meas¬
uring damages? The rule of law as
laid down by the Supreme Court
in Ohio in civil suits in fixing
standard
a
the
for
of
measure
in
personal property, is
^
damages where fraud is alleged
the
of
sale,
follows:
as
"The
.
sulting, from
a
damages
of
measure
vendor's fraudulent
representation
tual
value of
re¬
sale induced by a
privil¬
law, for
impo¬
be
held to
been
have
instances,
is the difference between
the ac¬
the property
at the
time of the
purchase and its value
had it been
as
nar
not
im¬
duty
license
he- is
license
could
is
the
under
person
and
that
the
of
Because
great
without
prospectus
ascertaining the truth with refer¬
ence
to the security sold and to
presumed not to be able to inflict
260,
a
is
class,: who are not skilled in
itself
"That
class
second
United States has held, in the case
of Wiser vs. Lawler, 189 U. S.
to-wit:
selling
so-called amateurs, may be
art of
party relying upon
direct result thereof.
.
pro¬
may
and without a
trained
selling
organization.
Transactions of this character by
for
sion
sell
representations were
representations
to
<■
,
in fact relied upon.
6.
securities
■
Division.
representations were
made with the intention that they
by a statute a legal duty to
exercise reasonable
diligence in
,,,
perly be divided into two classes;
First—the officers of small, closed
4. That the
5. That the
of
Sellers
represented." (Mol-
Beriswell—122- Ohio State
vs.
produce upon an ordinary mind."
legally ap¬
proach the purchaser and make a. 348.) /^.Z^Zz//
'/
:Z.,Z':z
sale.
A higher degree of duty is,
The application of this rule to
therefore, imposed upon licensed all cases where securities were
Fraud is both insidious and
dealers
circulated
as
inducement
an
to
take
be
stock in enterprises, should
interpreted by the effect it will
and like the
deadly and
subtle,
venemous
copperhead, it will strike in the
dark and kill Without
The
;
.
In
Use
the
of
warning.
Prospectus
administration
of
our
which always confronts us, is
how
we
tect
are
the
can
who
of
securities
Sky Laws than
the
under
upon
others
legally permitted to sell
are
securities without
a
license.
best
serve
and
investing public.
instances where
a
pro¬
There
civil action
in
the
sale, the Courts should look
the background of the seller
to
determine, among
other
things, the character and
status of the seller. Is the seller,
by reason of his license, a su¬
perior person where a so-called
into
in
order
for recovery
in the sale of secur¬ confidential relationship between
by the aggrieved purchaser, him and the purchaser might ex¬
where there is fraud in the
If such a confidential rela¬
sale, ist?
is highly
desirable and accom- [ tionship does exist, is what might
plishes much more good than, a be termed "puffing" a misrepre¬
ities
criminal prosecution by the state.' sentation
In
the registration of
securities Does
the
under our Blue Sky laws, I think
as
to
material
a
fact?
purchaser rely more
strongly upon the statements and
should bear this fact in mind,
that in certain cases we should
we
representations of
er
than
upon
a
sold
under
would
misrepresentation
fix the date of
generally
the sale
the time for the meas¬
as
urement of the damages,
If there exists alleged fraud
the
Blue Sky laws, the paramount is¬
sue,
Blue
licensed deal¬
the statements
the
out
quote
ciation.
:
and
policy, mergers, refinancing
reorganization.
;
- 1
>/
4.
To become familiar with the
practices of the securities markets!
5.
To acquire the vocabulary
of finance.
"We believe that the man who
enters Investment Banking, needs
j
tions
thing /above all else—charac¬
Lacking this,- nothing else
counts for much. Next, he must
mixed
intelligence,
have
of
plain
common
with
sense.
and
securities
the
bonds and were
although
have
been
purchased for in¬
may
and laid aside
in addition
thereto, a fictitious market may
have
been
maintained
by
the
seller for a considerable period of
vestment purposes
for
that
use.
And,
a
must know more
ment
business."
this
in
The
/■•/■
to
■■/_;/'ZZzZv
f:'
,
v.
in
Chicago, Wednesday of this week,
with 51/registered students from
32
member
organizations.. This
course is
being conducted by the
was
Commerce
of
opened
one
seven
in
our
a
business.
„
which
learn
To
1.
kinds
the
nature
opinion
in
securities
of
a
case
involving
by
misrepresentations of
following is a partt
after
the
until
the
issue
sale
made or
finally dis¬
was
was
84;
159
and
N.
N. Y.
rendered an
Company. (247
E.
807)
which
be
presided
selected
the
i
'
selection
enter* but we are not
importance, of
reminding the investing public of
the dangers of fraudulent and uh<?
intelligent transactions, especially
in periods of great market activity,
such as we are now experiencing.
I am aware that your Associa-*
tion has also devoted its attention Z
ing
the business,
unmindful
and
the
the
of
the
of education, and I
have offered a J
to us which we will-*
ingly accept in a spirit of full co*
operation. It seems apparent that
paid and the value of what he re-;
if your Association and ours, con¬
ceived when put to the use con-,
tinue to pursue the problem of
templated by the parties,"
;
■
education in our separate spheres;
As we have already indicated,
that the results are certain to bq
there is a difference between the
of great benefit
to the nation's
character of sellers of securities,
economy, particularly, to the pri-i f
as
there is also a inference be¬
vate investor. ' /•/;/
Z' -// /:/
to the program
in
doing
challenge
proximately caused
by the defendant's fraud is the
difference between the price he
"The
*
loss
character of various
which
difference
is
recognized in the appli¬
of our Blue Sky Laws.
the
tween
clearly
cation
a
a
hand,
are
continue our efforts to
which
completes
satisfactory transaction with a
well
informed
seller
well informed buyer.
characteristics of
investment
securities
than
do
shares of common stock. The latter
are
usually more speculative. In¬
vestment securities,'on the other
more
you
attain that idealistic state in
Bonds, by their very nature, par¬
take
so,
We will
securities,
Z "1■
of the
Gerstley, Sunstein to
Be NYSE Members
E
not always subjected to
PHILADELPHIA, PA.—William
regula¬
prohibition in their sale Gerstley, II, will acquire the New,
York Stock Exchange membership
as
are
speculative
securities.
Whether or not a security is pur¬ of A. Richard Frank and the firnW
will become Exchange members
chased for speculative purposes to
Partners in
be
sold
in •• a
bull market on effective Dec. 6th.
the firm, which is located at 213.
whether or not it was purchased
South Broad Street, are Leon C.
for investment purposes and laid
away
in a
safety deposit box, Sunstein, Isaac Gerstley and Wil#r
/
\
' i(/v
without regard to market quota¬ liam Gerstley, II.
the
same
tion
are
,
and
tion,
rule of Blue Skv
•
subjects whjclvour courts
consider in fix¬
should weigh and
•
Froelich Resumes as;:
ing the measure of daipages. Cer¬
tainly, Blue Sky Laws should not
be excluded in fixing!the measure
Pershing Go. Partner
in casesjinvolving the
Louis B. Froelich, member NewZ
sale of securities.
h>V.
York Stock Exchange, has rejoined
We have attempted here to dis¬
Pershing & Co., 120 Broadway,/
of damages
cuss
fraud in
sale of securities
_
Leach
in
We have discussed the
fraudulent
which
: v
and training of young men
interpretation of such state-
sale
•;»,
Caution to Investing Public
of the
construction
i
discussion
of
will
by
,
of securities.
statement
series
a
which
leaders
fields of study.
over
To understand the general
principles and practices of finan¬
the
•
feature
has
sessions
L/ 2.
cial
*
major financial
of the course
attracted considerable
A
arranged
Univer¬
sity, which was recently circulated
among our members, "describes its
objectives as follows:
-;
various
?
interest, is that in addition to reg*
ular classroom lectures, we have
v
Northwestern
by
-;'
■
other training schools
centers.
An outline of the course as pre¬
sented
•
will be located in
section devoted to Fed¬
eral and State regulation—a sub¬
ject which is of great and con¬
tinuing importance to everyone
topics,
V>,;''V:^//Zn'Z
Securities
Needs.
North¬
of
•-
-
Read Financial
During 1946, it seems likely that
there will be established at least
University, and includes
of its important
study
western
as
V'«
Special Financial Problems of
the Corporation Z/ZZ
The Marketing of Securities, In*
eluding organization, distribu/
tion, regulation and markets.
And, ;/Security
Buyers
and
Their
,
School
;>
State-#;
Z ^Z/ vZZ:ZZZZ:'?:- /"•'Z'Z4;
Analysis of Major Classes - of
established by
be
Association,
Invest- Z
of
of Investment
Instruments
Banking
"
the
ments
comprehensive train¬
first
school
our
Functions
Banking;??
How to
First School Established
ing
by
study of:
a
in¬
*
•
covered
'
client knows
himself. That is the combination
that is most likely to bring suc¬
-'<■*
influence
selection of
the
Economic
of the client than the
cess
in
subjects
include
course,
The
; ■
which
needs
and
The
all about the
selling, and he
about the needs
is
he
(/: ZZ*;Z
."v
vestments.
salesman must know
securities
1
appreciate the considera¬
investors
civil actions in the
from a Blue Sky
standpoint. We believe a better
posed of, which did not reflect the understanding upon the oart of
true value of the securities at or
the lawyers and courts of this im¬
near the time of the sale.
portant subject will be extremely
The
Supreme Court of. New helpful not only iq the admini¬
York, approaching this legal prop¬ stration of our Blue Sky laws but
osition from a Blue Sky stand¬ In the "protection of the investing
point, in the case of Hotaling vs. public, which should always be»'
time
To
6.
ter.
lot
//
dend
as
a
by our Asso¬
..V
of policy
v
of
corporations that investors com¬
monly discuss in connection with
their investments, such as divi¬
r
regarded
be
well
might
the
know
To
3.
paragraph from
booklet
which
a
\ vocational
statement
;
:
"
practices
poration securities. '
in
particularly
country,
will
I
our
The
the
There is imposed upon
him.
by
posed
The Dealers' Position
<ir
feel
investment banking.-Z
,
or
him
V
-
■
related
false
be
Sky sta¬
and their rela¬
sellers
the
of
tus
the seller
ing such security offered for sale
us
character and legal Blue
;
'
.
edge of any matter of fact concern¬
Z//Z//'
Corporations who sell its securi¬
representations ties as issuers without a commis¬
false..
were
appear
Blue
we
important vocational field in
the financial enterprise through¬
ap¬
party making the representations
shall be deemed to have knowl¬
examine our
Sky laws to determine the
let
does not
emptor"
ply.K-
promises, statements of opinion,
puffing, etc., by sellers of secur¬
ities? To
fully understand this
proposition,
be di¬
Our discussion here will
cause
and
"
"caveat
of
in many here will admit that the prospect
states, the Legislatures have pro¬ tus is a perfect, silent salesman.
vided a civil remedy, as well, in
Now, what constitutes represen¬
the nature of a remedial statute
tations as to existing and material
containing an indemnity bond for facts as distinguished from future
the benefit of the
that a
purchaser of securities "does not
stand
at
arms
length with the
seller" and the common law rule
statutes,* but
criminal
securities,
alleged in the sale,
the courts universally hold
securities in viola¬ phasizes the weakness of the use
tion of the Blue Sky Laws is pe¬ of a prospectus in the sale of se¬
nalized, and fraud in the sale is curities which tends to disarm the
always illegal and severely con¬ purchaser rather than benefit him
demned.
Fraud in ; the sale not in case there exist fraudulent mis¬
Certainly no one
only involves a penalty under the representations.
'*
in
transactions
to
where fraud is
;./.•> Z-
by informed buyers of cor- '
ments
service, be¬
there is a large
military
from
one
they exist under
Blue Sky Law of that
particular state where the action
is brought. •
-. •* ■
.
.
Under Blue Sky Laws and in
the present
yet the purchaser is
estopped from proceeding against
him. This example sometimes em¬
ulent
...It is the age-old
The Strong vs. The
person.
relationships
the
of the parties as
Although the seller may be able
financially to pay for his fraud¬
prevent imposition — where one
person 1 might impose upon;; an¬
consider
should
upon
which
which is to
.sale, the purpose of
should look behind the scenes and
which he relies and
induce the sale,' are oral.
tations
of
definition
law
common
securities, where fraud is alleged,
most material and false represen¬
prior registration of
security sold,' surround the
because
oL securities
sale
fraud, but also in the light of Blue
Sky legal authorities and: prac¬
tices.
Our courts, in the sale of
,
the
the
in
Program of Education
(Continued from page 2577)
leased
should be determinedmot alone by
of a prospectus.
the time of the sale,
high and advancing civilization.
a
It is the sale of the security that may have the purchaser sign
waiver
of his
right to recover
is the basis for all Blue Sky regu¬
upon the ground that all repre¬
lation under the Ohio law as well
sentations made to him are whol¬
as
the laws of her sister states.
contained/ in the prospectus
The sale of a security is the hub ly
of
the law.
Legal prohibitions, when, / asv a matter: of fact, the
as
important
is
fraud,
fraud
The seller, at
such
official of
who is not
issuing company,
licensed by the state?
The an¬
swer to all of these questions, in
the determination of the existence
action
law.
common
clearly statutory enact¬
ments, enacted to fulfill the needs
and meet the requirements of a
They
an
the
estopped from bringing a civil
for recovery where fraud
is
no
of
representations
profound duty and
sponsibility.
our
New York City, as a
ner.
general part¬
Mr. Froelich has served as a
Lieutenant in the U. S. N. R.
Two With Peter Morgan
Ppfer Morf^n & Co., 31 Nassau,
Street, New York City,
announce'
*^.6ssoc'«t.inn with them ofLieut,
McDonnell, USAAF, and
1L, N. Parker.:
;
■' *
• /
great re- John R.
.
for
the past three years.
>
^Volume 162
THE
Number 4442
/
COMMERCIAL & FINANCIAL CHRONICLE
to
was
The Stock ] Exchange's Place in Finance
(Continued from page 2579) /
or deal in securities in
,r
respective States.,,
your
,
The
•
Chicago Stock ' Exchange
certainly
welcomes
the, oppor¬
tunity to submit itself, its organi¬
zation
for
and
its
techniques to
you
thus' purpose:
We want you
to examine not only these tech¬
niques and our organization, but
we want to point out our function
in
the
hopes
;
financial
for
public
deal
have
the
Those
our
"to
West
Ex¬
our
on
the
who
of you
who may
Chicago Stock
inearlier years and
known
Exchange
the
familiar
were
and
service
Middle
securities
change.
v.
future
in
in
world
with
its
problems
will recognize the revolution that
has taken place in our business.
;/ A story is
mountaineer
familiar
told of
who
with
proverbial
a
the
far
back
his homeland.
where
jspot
recently
in
He
too
luxuries
many
of civilization and who
dering
not
was
wan-
was
the
came
hills
across
tourists
some
of
a
had
camped.
Rummaging
he found a mir¬
around the camp
which
ror
had
and which
him. / He
the
behind
entirely strange to
was
took
mirror
'
left
been
long
a
and
in
look
into
astonishment
exclaimed, "Well, if it ain't a picture of my old pappy! / I never
knowed he had his picture took."
He carried the mirror home apd
cautiously stole into the attic and
hid it under a pile of old clothes
and odds and ends.
His actions,
however, aroused the suspicions
of his wife and that night, while
he was asleep, she slipped up to
the attic to
find
it
what
out
was
customers'
ing,
fair and equitable basis.
membership. Generally speak¬
these requirements are
a
clean business reputation, a record
of
financial
responsibility
and
integrity, experience, and an or¬
ganization equipped to do the
particular type of business it in¬
regulations on the books
Exchange would mean very
little j if the - Chicago Stock Ex¬
change :did; not employ a capable
and adequate staff of officials and
to
themselves
of their
have
change
the
of the reflections that
would
show
Chicago Stock Exchange.
>
The
a
mir¬
if turned^ on
.
the
•
•
Chicago Stock Exchange
and
the
Exchange
industrial,
to
point out to
leaders
banking
I want
and
all
the
regulations
detailed
the
of
of
Chicago
in
form
present
our
of
some
our
in
a
direct
and
open
market in competition with others
who also wish to buy or sell those
I
securities.
want
to
also
point
out
change is not
True, the floor
particularly
that
the
Ex¬
on
are
basis
that
tained
The
bers/but membership
delivered
change
is
person,
firm
can
meet
open
the
or
to
any
the Ex¬
reputable
corporation
who
rigid requirements
prescribed
readily
smallest
ascer¬
customer.
Exchange prescribes how bids
how
on
be
can
by the
private club.
is private to all
but members and trading on the
floor takes place through mem¬
a
definitely
a
Exchange
and
offers
shall
transactions
be
shall
actual
made,
be
certificates
how
cleared,
tions,
tried
and
to
tective
settle
has,
erect
shall
over
to
the
assure
the
steps
complete the transac¬
thorough and
as
is
hu¬
occurs
on
pro-;
that
could
one
official of
an
hardly
stock
a
ex¬
change for 16 years without rec¬
ognizing the many definite places
in
finance
occupied
cago Stock
-
by
Exchange.
the
Chi¬
/
a
corporation
the stock
on
exchange establishes
the credit oi
that
particular company in the
capita] markets of the territory
served
by
the
Exchange;
the
"capital market" being the
accu¬
mulated
surplus funds of all po¬
tential buyers of securities in that
lic appraisal
holders.
is
available to
the-counter market.
Exchange markets
the
over-
The fact that
are centered in
one
place,: openly recorded and
transactions reflected in published
aids in more firmly es¬
tablishing the credit standing of a
particular listed corporation in the
reports,
capital
markets
served
by
of
the
territory
Exchange.
While
the
America's
the
appraisal
of
the
equity
corporation and records what the
the
contracts
are
very
care¬
fully planned steps to clear, settle
complete
the
transaction.
latter part of the Exchange
is very seldom taken into conand
This
;
sideratiom when its real functions
are
discussed, but is a part that
a large contribution to the
things of its possibilities
and probabilities for a successful
earning and asset record.
If a
corporation's shares currently sell
at
$10 and the corporation has
100,000 shares outstanding, it is
logical to
of
the
that the equity
assume
stockholders
common
of
that
corporation is worth some¬
where
in
the
neighborhood of
$1,000,000.
to the
mean
ing out
It
Now
a
has shown
certain
does
this
the
securities
Exchange system
operations are firmly tipd
together in a well integrated unit
by more than 19,000 share¬
holders.Many corporations fol¬
lowed
venture
some
the
public
willingness to
for
amount
of
that
the
pay
pro
corporation
apparently no ?owner was
willing to sell his shares for less
than
that price.
It would nat¬
urally follow that the corporation
would be. able to easily obtain;
further
equity capital if it of¬
fered the stockholders the
oppor¬
to. additional
that
near
lished price.
publicly
One
estab¬
hardly'dis¬
by the
can
sional bids and offers together at
to influence
one point on the floor of the Ex-r
change so that those buyers and
all.
sellers have the advantages of di¬
rect and open dealing with each
those
other at the.
equity of that corporation.
Now let me give, you an actual
In addition to the
the
regulation of
securities
that
are
made available for
Exchange
ards i of*
trading on the
are subjected to stand¬
legality, ; going: concern
the
purpose
the other
served
On
hand, factors which tend
prices
obvious to.
An over-supply of sellers or
an
over-supply of
securities
accurate
are
to buy
distort the
money
will
normal
appraisal of the
illustration of how the machinery
of the Exchange was
used not
mission
tration
quired for listing
but
prescribed by
Exchange Com¬
in connection with
regis¬
of
the
securities
is
re¬
contracts
on
the Exchange
made
are
with
the
Exchange that cover many uni¬
form corporate procedures such as
mechanical checks on the issuance
of
certificates
lished
by
which
contracts
dependent
agents and
are
between
in¬
corporate
fiduciary
the Exchange.
The
listing of securities does not
that
estab¬
mean
corporation is going to be
but there is a clear
implication from listing that the
a
successful,
corporation, at the time it comes
to
the
Exchange, is free from
fraud
and
legal
pitfalls which
might
deprive
stockholders
Of
otherwise
assumed
that there has
onstration
of
agement to
been
rights
a
clear
and
dem¬
the
run
ability of man¬
the company.
Prior
of
told
to stockholders alone.
Contribution
you
what the
Ex¬
your
to
^
War
Financing
You may not realize it but
you
listening to the how and why
are
America
has just won the great¬
victory of all history.
The
Chicago Stock Exchange and the
entire securities industry is justly
est
proud of its part in this contribu¬
tion
to
victory.
Our American
system of financing needs no de¬
fense
in
Our
view
these
of
is
system
rules
and
functions
and
directed
results.
still
being
regulations, our
hopes are all
providing
the
toward
our
serviceable markets possible
the
on
Chicago Stock Exchange
buyers and sellers of securi¬
ties residing in the Middle
West
thus increase the reservoir of
and
capital
for
Middle
Western
and
national
industries.
The accep¬
tance of the Chicago Stock Ex¬
change as a medium for pl'acirtg
venture
capital
The
well
as
is
investment
as
increasing
number
of
day.
every
members
of
the
Chicago Stock Exchange
increased
and
also
our
membership
.140 well* .capital¬
organized firms and
consists
now
of
ized and well
corporations who do business with
and for the public.
A geographic
expansion has also taken place in
recent
firms
with
years
and
' substantial
corporations
in
Wis¬
consin, Minnesota, Nebraska. Colo¬
rado, Missouri and Pennsylvania
small but
entire,
there
nation.
five
were
well-established
manu¬
.
we
have
history/? You
our
should
be
had
ever
in
commissioners
intensely interested in
efforts because these efforts to
our
promote just and equitable prin-,
ciples of trade will inevitably de¬
facturing companies in the Middle
crease
West whose securities
burdens
lems.
were
listed
on
the Chicago Stock Exchange.
The.. trading in th& securities of
those five companies closely fol¬
lowed the corporations' progress
and
their
stature
shares
in
each
attained
market.
Each* of
companies, having suc¬
cessfully established its credit in
our
capital market, was recapi¬
talized through the issuance of
rights
to
its/-Stockholders.
A
the
point
was
talization
five
reached
able
price,
of
were
recapi¬
compar¬
earningswise,
marketwise
on
asset-
the Chi¬
these
an
pany
companies
exchange of shares and
and
prob¬
and
your
con¬
structive comments.
Maj. Falk Resumes
as
/
Active Partner at Samuel
Ralph
E.
SamuelCo.,
Broadway, New York City,
bers
New
York
115
mem¬
Stock
Exchange,
that
Major Myron S.
Jr., A. U. S., has been re¬
announce
Falk,
from
leased
resumed his
the
service
position
partner in the firm.
and
as a
has
general
/
resulted
and
this
on
whose shares
were
the Exchange.
The
scope
of the operations
consolidated
stockholders
and,
H. I.
Josey Opens Firm
a
OKLAHOMA
Harold
I.
CITY,
OKLA.
—
Josey has formed H. I.
Co.
with, offices in
Josey
&
First
National
gage
in
Building
to
the
en¬
company
eventually called for additional
capital.
The
company went
to
President. its
cooperation
your
A merger
was effected
very substantial consolidated com¬
of
your
That is why we invite you
to look at us closely and give us
Stock Exchange.
cago
by
in the
where the shares of all
companies
wise and
of
our
five
size
change is and something of what
The job
it does in general terms.
I undertook for
the
1928
to
also listed
Its Place in Finance
have
of
public than
subse¬
markets
the Securities and
for
extent
West/but has led to -the
a
to stockholders.
Not only the in¬
some
recently becoming members of the
Exchange
We now have more
substantial
firms and corporate
members doing business with the
of
quent establishment of the credit
of that corporation in the capital
material
and
thus establish the credit
particular corporation in the
capital markets of our own Middle
only to
probabilities and definite require¬
ments for uniformity in
reporting
formative
of
capital;
financing industry
over
$1,000,000,through the issuance of rights
the
000
a-
rata
is
that
Exchange in this connection.
members,
investment
not—but
during the
two
of 1928 and 1929 the Chi¬
Stock Exchange was used as
medium
a
availing*
reservoir
successful
were
were
years
by
this
today.
that
machinery, voluntarily designed
to. bring all public and profes¬
Listing Requirements
pattern
of
and
least
a
pute
prices.
this
themselves
basic
of trading is an intricate piece of
same
assets
whose
used
proper
of
whose
$137,000,000 apd
owned
This
tunity to subscribe
The
than
more
corporation in carry¬
of financing?
program
at
means
what
shares
conduct
particular
public
makes
business.
industrial
that
of
corporation
a
verbal
of
greatest
be¬
one
purchased outright
by using' shares of stock which
were
being currently appraised
on
the Chicago Stock
Exchange
by these publicly recorded trans¬
actions.
The picture today is that
to
public
of that
only the
expansion of
activities
only
accurate
stock
common
company were
cago
of
pub¬
During the
year
additional operating
which supplemented
subsidiaries
ordinarly the Exchange market is
in small units of
trading, it is the
method
the
on
as a
was
the
corporations.
total
Exchange
of
following 11
of
the
on
of its
This
ginning
tered
not. only
stock
equity, the company raised an
additional $11,000,000 throhgh the
issuance, of •-rights to its share¬
territory.
Through
our
many
firms, that capital market is cen¬
but also
of its
Chicago Stock jExchange
of
Listing and trading the securi¬
ties of
market, price
for
floor
be
years,
but
as
I
am
most
transac¬
feasible
nancier,
nor
that
I
every
measure
such
fi¬
economist
represented
by
the number of
shares purchased.
It also means
-
to
am
a
an
share
for
and by members of the
transaction
as
Ex¬
Exchange repre¬
sents
only the beginning of a
transaction,
while •„ behindV the
purposes.
,,
and
purpose
supervision
manly possible.
What
the
discuss
.
the
a
complete
.
ments
that
had
tion also receive
any
the standard of eligiblity
membership on the Exchange
is strict and entails meeting not
only standards of experience, rep¬
utation and business integrity but
sets well defined capital require¬
go
em¬
after
First,
for
to
necessary to
government. / But, I would like to
outline
ac¬
member
ployees
Federal
of
and
a
the floor members and their
of
of those agencies that we
of
on' the floor of the
Exchange during the trading ses¬
sion yesterday, I can assure
you
that, while your impressions may
have been confused, each move¬
ment, each sign, each shout by
rules
bureaucracy than
a
methods
records
both
,
tation
numerous
more
in
If any of you ladies and gentle¬
men took advantage of our invi¬
regulations Of
the
Federal
Government and you would prob¬
ably conclude that the Exchange
is
business
changes
these men are invariably
they won't leave the Ex¬
change and take over the recon¬
struction'job themselves.
be as confused as I
would
be
reading the detailed
regulations of OPA, WPB, WEB
agencies
vigilance, but at the
suggested
firm,
would
the
the public:
asked if
Stock Exchange to you I am sure
you
business with
counting
Exchange and
promotes its interest and welfare.
membership that are
M am going to assume that you fa r above those of any othet regu¬
have mever heard of the Chicago latory body.: t You can readily see
Stock Exchange. (Although good¬
the necessity for this as the orders
ness knows we have made
every1; and proposed contracts of people
effort' to keep that from happen¬ from all walks of life are handled
ing.)* To prove to you that there on the floor of the Exchange.
In
is indeed much misunderstanding
order to strain out those of ille¬
about stock exchanges by people,
gitimate and irresponsible inten-r
I cite some answers from polls
tions, the funneling process must
which indicate what the public
be narrowed: to those who must
really thinks a stock exchange take the responsibility for the acts
does.
Opinions expressed ranged of their principals.
The legal
from, "a place where livestock is foundations of partnerships and
led
to
slaughter" to "a place corporate members are scrutinized
where bundles of certificates are
and subjected to approval by the
taken to the floor and dumped in
Exchange.
Employment of mem¬
the laps of people who scramble
ber associates and salesmen, of--.
to buy them."
Surprising as it fice arrangements,, private wire
connections
with
may seem, this latter opinion has
non-members,
been
expressed by peoplewho the conduct of accounts, financial
have actually used the facilities of transactions which have even an
the Exchange.
Of course, neither indirect result on ability to prop¬
is correct, although some of our
erly protect equities of money or
critics
have tried to find some
securities belonging to others are
similarity to the stock yards pro¬ closely examined and regulated
cedure
of
sheep
When you do
being led to by the Exchange.
business with a member of the
slaughter by
the
Judas
goats.
Seriously/however, the most com¬ Exchange,
therefore,
you •;> are
mon
misconception that prevails doing business with a firm who
in many minds is that a stock ex¬
not only has voluntarily
pledgec|
change itself buys and sells se¬ itself to abide by these regula¬
curities.
I want to definitely cor¬
tions, but is i''prepared to sacrifice
rect this misconception above all
its business: life if it errs.
It also
others.
The Exchange is a meet¬
has an organization
to observe
ing
place
where
the
public, and command'^ compliance with
through
individual
and
firm these regulations through its vigi¬
members, may freely bid and offer lance. Transactions made through
securities
the
you
regulations of the
read
members
our
to
with
staff which enforces the rules and
I
of
trans¬
time education and thorough
explanation of Exchange policies
and practices is one of the most
important functions of our audit¬
ing staff.
After many a routine
inspection of our member's office,
that all these
men are charged with the direc¬
tion of the policies of the Chi¬
cago Stock Exchange and exercise
powers of business life pr death
over the
membership of the Ex¬
change through a
non-member
£f
the
on
same
are
circles of the Middle West.
each
stitute .for
four ad¬
and
/investigators to make
develop their instincts for
detecting irregularities.
The Ex¬
change believes there is no sub¬
are
The present
visors of the
in
but
Ex¬
year
each
who
the
these
are among the most
capable brokerage accountants in
the country. These men go
through
a rigorous
training to develop not
only this accounting knowledge
govern¬
with
a
Our auditors
independent advisors to
board.
other
ror
connection
chosen as
or
some
who do
the
no
the
Eventually, she found
and carefully exam¬
ined it in the light of the bright
mountain moon. • She, too,
was
astounded
and
exclaimed,
"So
that's the old hag he's been run¬
ning around with!"
;
:i:;
•:[ Instead of giving each of you a
mirror and causing similar con¬
fusion among you as to what you
might see, I would like to describe
actions! of
Stock
I
serve
of all
presence
audits* .and /checks
Exchange is formed
along the democratic principles of
ihe election of the board by the
membership.: Outside advice and
guidance is sought from men of
unimpeachable
reputation
who
all about.
mirror
accountant
behalf
on
The
customers.
of
ment
but
on
of the
Members of
the Exchange must, as a voluntary
act,
bind
themselves and their
organizations to follow prescribed
rules and regulations laid down
by the Board of Governors re¬
garding transactions not only be¬
tween
are
rules and
in.
engage
transactions
mere
"The
not
for
The
describe
change's Place in Finance."
tends
Jbuy, sell
2605
using
the
He
Gas
was
the
securities
business.
formerly with Oklahoma
& Electric
Company.
their way down
were
Post-War Supervision
element from
brokerage business.
To date
and the undesirable
the
dealers' association, the
the largest
Securities
National Association of
will
the
4.
5.
regulation of their-
■
*
business.
States with few
exceptions find it
expedient to maintain member¬
ship in a trade association as a re¬
sult of the Maloney Act.
The Maloney Act, among other
things, provides a vehicle for selfgovernment by members of an in¬
association.
trade
vestment
,>,.V
..
There is
lem
from
one
effective
adequate treaty.
:
It
is
recdmmended. that
convention consider seriously
problem
opportunity to clear
The
State has
an
thinks
twice
also
reau
collaborates
with
the
and
Government
States
These laws
launching
successfully
flood the United States with aval¬
of
spurious
apparently with a feeling
perfect safety.
' " 1
..
This menace to the investors of
United
the
States |
:.
forcefully
brought
be
should
the atten¬
It is almost
the Cqngress
to
principal
police
departments
throughout the country. Through
tion of the Congress.
this service known swindlers may
would act to meet this situation
be identified easily and
Securities
accurately.
Exchange
Commission maintains an efficient
The
and
Utilize it and sup¬
fraud bureau.
that
certainty
a
the full facts
are
if
made known to
representatives. It would seem
inconsistent for the; Congress to
our
go
to the, length it has in protect¬
ply the SEC bureau with vital in¬
formation promptly. s 1
-
ing
members.
But the privilege of
self-government carries a solemn
policy in dealing with
swindlers
is
recommended., It
should
be remembered that the
but by failure to act, permit the
same
swindlers to proceed unre-:
obligation
certainty of
dealers'
in
association
trade
the
recent years of small volume has
shown the ability to supervise its
The
and
situation
harsh
a
penalty.
similar
is
to
A
stern
punishment and not
investors in the United
the
Statesi
strained
swindlers
domestic
from
over an
international bor¬
derline.
.
the
investment
dealers'
were
associations
and
In Business Leaders?
(Continued from page 2584)
I have
kers' and
in
This
is
Today the bro¬
agents' swindle is rare.
remarkable
a
establish
in
the
record1 to
Golden
of the leading
spirits
the War Advertising Council 1
seen
know that I do not have to prove
them
to
that
in
public relations
once known as a
paradise for in¬ there is no such thing as a one¬
vestment swindlers.
way street.
There are, however,
The questions now to be an¬ many people who don't know this,
swered are:
y-v
"y."
and when they are reminded of it,
Will prosperity consume all the prefer not to believe it. Washing¬
dealer's time?
ton is full of lobbyists who in in-*
Will a big volume and increased ternational
trade
want
to
sell
profits drug the dealer's sense of without buying, to export without
the
State,
responsibility
contemplated
Maloney Act?
under the
Will
the
freedom
dealer
the
surrender
of
self-government for
regulation by the State in order to
pursue
the prospective profits of
bull market?
The
;
dealer
proven
visor.
-
to be
an
;
-
a
association
has
admirable super¬
The
system of free enter¬
demands that this efficient
prise
self-government be maintained.
Supervision
From
to
premise:
consider
;
the
second
of
dealers
Supervision
from the Government administra¬
tor's viewpoint.
,
The judicious securities admin¬
istrator will assist
in
promoting
regulation.
State agency, if
any
event
recurrence
marked the
when
the
government
for
prepare
regulating bro¬
must
not
conditions
be
In
a
are
so
If that
in defending
case for the
vital interests of
States
in
negotiation
with foreign
governments, but in
arguing with their colleagues, and
with men professing to represent
the public, to let them have a case
to
advocate
really
does
and
and
defend
represent
vital
the
interests
by
men
the world they are
on
liv¬
ing in, the character of the age to
which they belong, and the best
that is being thought and said.
If
anyone thinks I am exaggerating
the necessity of all this, let me
remind him that whereas 50 years
ago, even
which
25
we
the system
years ago,
call free enterprise was
economically
developed >; countries,
today the
United States is the only big in¬
dustrial country now committed
to the perpetuation of free enter¬
universal among all
prise.
?■:*
their
and
severest
I do not for
mo¬
a
underestimate
to
mean
force
the
the
Anyone, therefore, is deluding
dangerously if he imagines
that the businessmen who lead
himself
the
same
sort of
dark,
are
turbulent
cer¬
and
not strongly led
who take seriously,
and
that, all
there
•
is
is
tigerj every
';;;■ (y. :y...
a
When- you
-
sparrow is a vul¬
ture.
.y
V
remember
that
the
:
economically
the most powerful,
technologically the most pro¬
gressive on earth, that it has just
emerged triumphantly from the
and
test of war, and that the people of
this'country know and all
la¬
man¬
kind knows how great have been
its achievements—when you think
of
air that,
it really is annoying >
the ''American businessportrayed to himself and ad¬
to; have
man
vertised to the world
as
a
lit¬
poor
tle
helpless frightened
quaking in his boots. '
creature
h
Business Needs Confident Leaders
Of
course, • businessmen
have
troubles. ? But anyone who
their
expects to live ah active; life witihr
out trouble should have
that he
in
other
some
this
period
I
one.
think
of
5
to" it
seen
somewhere
born
was
else
history ;
it
is
community dismissed
dig^
nity, undermine their confidence,
impugn their self-respect, and in
There
be
can
competitive
no
the
virtues. Let the captains of indus¬
such now
that
try be captains indeed, and go
forward unafraid into the days to
doubt
system
as
has formidable rivals and compet¬
itors. The system of private com¬
Come. Let them send back to. the
all those who would mother
petitive enterprise is no longer, as
rear
it was in the Nineteenth Century,
them,
the accepted, and natural,
the unr
challenged order of things in all
them until they are so softened up
with false sympathy and fear that
countries.
they lose their nerve.yx.y^V;.
They have to live and deal with
economically advanced
for as long a time
ahead as any of us can see, we
shall be living side by side with
Today,
and
be trading' with and
seeking i to maintain
with, countries which
apd:.; shall
shaft
for the most
different
paijt organized
principle
from
on
our
system now has such strong rivals,
it is precisely because it will call
for the highest kind of statesman¬
ship to make the mutual adjust¬
ments, that we must above all
that
sure
American
is led by men who are cool,
calm, and collected. For you, for
work
which
is
yours to do,
the;:beginning of everything, the
primary condition of success, is
that there shall be no panic, no
scare-mongering
and
hysteria.
Just because the* world we are
living in is turbulent, difficult,
and
dangerous, it is peculiarly
necessary that the business com¬
munity be unfrightened, confident
•
is not to have
bor
leaders.
will
have
called discip¬
morale, and it is when
toughest that discipline
and morals are most needed.
v
are
have
of
spoken
business.
friends'of
the
Let
unwise
me
de¬
does
You
for
can
is
not
learn.
to
true of everyone
do
the
lot
a
know
But
and
that jis
else.
4=;*
y.
greater service
no
businessmen
and
the
for
American economic order than to
attack-. this
inferiority complex,
whether it expresses itself
rational fear
the
man
or
as
a
as
irv
pretense that
who has it already knows
everything and has nothing
ther to learn.
furT
V..
-
If
you can
do that, you will
have broken down the inner core
of obstruction and distortion in
the public relations of the Amer¬
no
and
There
businessman
ican
I
com¬
government
officials, politi¬
cians, newspaper editors and re¬
porters, college professors and lav
ly against false alarms, stampedes.
things
inferiority
an
plex about it. The men who mahT
age American industry have jrio
reason whatsoever to feel inferior
and that it should set itself firm¬
line
over
.
governments, with labor unions,
with popular movements, and the only way to live in such a world; 1
busi¬
ness
the
worry
to
-
make
baby ' them,
business
community. I have
doubt you can do it if you be¬
convinced that it must < be
come
done.
-N
"i—i
Frank
.<
{ y
Filip Forms Own
Firm in Cedar
Rapids
I t-
enlightened public policy
a
part of the business
being directors and managers
is scientific and technological
picture. They are to be found in
politics, on public platforms, on
the radio and in 'the ..press, and
Filip & Co. with offices in the
Higley Building to engage in an
publishers of confidential
sheets which profess to give the
inside dope, the low-down, and
the dirt. At the lower end of the
has
-•
he
conducted
demagogues who
conduct what is in the exact sense
of the word a racket. They prey
Cedar
as
of
as
an
much
financing
research,
production,
and merchandising.
;
imagines that
public policy can
If any one of them
consideration of
be
treated
lightly,
improvised
settled
study and con¬
saying the hell with
Deal, the hell with the
unions, the hell with the
by
labor
Russians, the hell with the Brit¬
ish, the hell with all foreigners,
who do
not
roll, they
theorists
professors,
politicians,
have
are
exactly
like
classes
who
to meet
a
pay¬
talking and acting
all
other
governing
throughout
history
;
the people who impair their
scribe them to you, not by name,
ering
;
time
American free enterprise can sur¬
vive successfully without consid¬
without prolonged
of
Britain,
businessmen
sweep of the tide
which
throughout the world is
running towards socialism and one their
everlasting
whining
and
from or another of government wailing seem to have forgotten,
management and direction of in¬ that a businessman is first of all
vestment, production, and trade. a man, and must have the manly
In the Army this is
Public Policy
An Enlightened
sultation and self-examination, or
such that their future is
tragic if they
advice
the New
You have to do the
be
regularly, honest and wise
which
thing.
You could not get out of
doing it even if you wanted to.
For the position of the business¬
men
(who are your clients) is
to
take
legiti¬
United States.
tain
doctrine
and
United
now
ruled the field of finance.
there
noble
of these people, responsible
legitimate
the
which
faire
Because
too
con-*
a
public men, spend at least as much
of their time, and the better part
opening of the century,
laissez
being
are
we
words.
many
mate
time this
industry fail.
there
of
-
same
wise, will
to enforce the law
kers should the
wholeheartedly
self
At the
cession
make
we
of their energy, not
and advocating the
Government
Standpoint
Now,
importing, who want to cooperate
with foreign governments if they
will always agree with us, who
feel that when foreigners make a
concession that is only our right
and the least we are entitled to,
I but that when
;
•
unwise
If Is precisely because our own
member brokers.
the
the business
ment
a
competent to cope with fraud
punish
member
and
non-
is
conspiracy, persecution, and mor¬
tal peril.;:Every dog that barks
they describe as a wolf, every cat
;
system
our
their
from
than
Own.
they
Russia,
fessors,
about
In saying this
banking
proved
community
is attacked by the government,
the labor unions, the college pro¬
it
than
are
business organized under the N. I.
R. A. in California, self-governing
business
all sides by enemies, that
on
critics and their ardent opponents.
our
From the minute the better ele¬
of
and
fear- from
the*, peace
citizenship.
ment
to
friends
.
shares
businessmen
more
_
anche after avalanche of
j
oL private enterprise do not have
a
v
and
power.
I often wonder whether Ameri¬
can
type of swindler may
across
the
international
line
their
retain
to
.
same
walk
order
Unwise Friends of Business
stock-selling swindle from within
The
beset
period' of
the
Nothing that has ever been said,
seems to me, is so pertinent to
the peculiar position of American
businessmen in the years that lie
ahead of them. They will need to
take it to heart. But they will be
able to take it to heart only if
they use their heads.
\ ■
- ^
*j
professional
today 5 usually
before
French aristocracy
it
The
swindler
stock
inquiry into the reasons
an
onic Wars, the
in
rigidly enforced.
The Con¬
has gone to great lengths in
an
effort to safeguard the inter¬
ests of the investor and the widow
orphan.
to
leges whenever that was necessary
are
The Central Fraud Bu¬
United
this
this
gress
and
belonged
Tocqueville, that the French aris¬
tocrats - clung : so
grimly
and
stupidly to their privileges that
they lost their power, whereas the
British aristocrats gave up privi¬
an
steps to urge that the Congress
immediately act to halt the flood
of spurious mining shares into this
country. In the United States the
securities
brokerage business is
circumscribed by a multitude of
laws and restrictions.
himself
They make it out that the
American
Britain's American economy is in weight of ,V
greatest influence and prosperity, productive power about half the
Thedifference
was,: says } de
economy of the world," that it is
take i appropriate
and
boundary
important division of this De¬
partment is the Central Fraud Bu¬
reau.
Through this Bureau every
law enforcement
agency
in the
be
would
solution
Frenchman, de Tocque-
why, during the revolutionary pe¬
riod before and after the Napole¬
through
it. I
epi¬
mining stock emanating
of our neighbors.- One
Sam has the power ;to solve
refer to the illegal selling
demic of
■
aristocracy not only survived but
let the British; nation
into and
facing securities administra¬
in the United States.
Uncle
tors
;
power, except in fash¬
ionable society; while the British
vexing dealer prob¬
one
world.
on
;
fell, from
Stocks
Mining
Canadian
the United States,
records.
Government
brokers in the United
Investment
fraud.
An
premise—
dealer's
own
With this in mind and in
made
of
growth
the
halting
and
yv
the old aristocracy of France, once
rent.
quickly
out.
ville,who
the surest proven crime deter¬
Therein is a master key for
is
way
A wise
always the severity of the penalty
anticipation of post-war activity,
the California Legislature in 1945
created a Department of Justice.
the
relish
men
common¬
as
cution.
V-'P°int v-:'/.'I;
Few
the
to
.
Supervision From Dealer's Standfirst
dividends
"hope springs eternal in
the
human breast,"
so
love of
quick profits springs eternal in the
promoter's chestT"
In dealing effectively witti fraud,
prevention is preferable to\prosethat
^
the
;
facili¬
swindles. It should be remembered
majority of dealers, large »and
small, decline to assume and ef¬
fectively discharge the obligation
which the privilege of self-gov¬
ernment imposes.
'
1
to
the
legitimate business pro¬
duces a large volume of securities
sales, the Wallingfords will surely
try to sandwich in their nefarious
self-governing asso¬
ciation fail, it is almost a fore¬
gone conclusion that more Gov¬
ernment
regulation will follow.
The failure will occur only if the
Return
repu¬
Once
Should the
supervision from
viewpoint. -'
•
of
wealth, the investors, the dealers
and the department.
f
I
the securities business
in eliminating much asserted bur¬
densome Government regulation.
•
utilize
all
Above
some
in assisting
•:-•
support
other Government
law enforcement agencies. V/
r
This policy has been carried out
successfully in California for.more
than a decade.
It has paid hand¬
severe
a
the
..»
>
ties offered by
self-government theory
face
Enlist
r'y,V.',jr'
promptly
and
cases.
table brokers and businessmen.
test.
If the
dealers' association is equal to the
occasion the theory of self-gov¬
ernment is definitely vindicated.
Such vindication
should go xar
Will
/•/:<
firmly
with fraud
Should this hap¬
occur.
Deal
3.
that the United States
is entering upon an era of unusual
business expansion similar to that
which followed World War I. It is
equally likely that a comparable
expansion in the securities busi¬
It appears
pen
,
lent schemes.
Dealers, has functioned well.
ness
total
occur
of the industry
on
their
of Securities Dealers
regimentation
would follow.
■
The steps for the Government
agent to take are obvious.
1. Tune up the fraud prevention
machinery in the securities de¬
partment.
;
-v
r
2. Keep on the alert for fraudu¬
should
(Continued from page 2577)
This self-government of
the investment industry has done
much to date to eliminate fraud
Itself.
Thursday, November 29, 1945
CHRONICLE
THE COMMERCIAL & FINANCIAL
2606
but
in
form
the
of
a
composite
among
scale„ they
upon
are
the most innocent and gulli¬
ble of the businessmen, and their
racket consists first in scaring the
life out of their victims
and then
setting themselves up as the stal¬
wart defenders of the business¬
men
more
men,
against
they
can
enemies.
the more their own
lar business
a
The
frighten business¬
their
wholly
particu¬
flourishes. They paint
false
picture
of
the
RAPIDS, IOWA.^i
Filip has formed Frank
CEDAR
Frank
investment
business.
Mr.
Filip
recently
been
with
Lynn
Swaney & Co. in charge of the
municipal department. In the past
his
own
firm / in
Rapids.
Maj. W» P. Kinsey Rejoins
J. Arthur Warner in PhilaJ
PHILADELPHIA,
W.
Patton
Kinsey,
PA. —Major
recently ire-
turned from service with the Air
Corps, has joined J. Arthur War¬
ner &
Co., 1421 Chestnut Street.
He was formerly associated with
David Jester, Jr., present Man¬
ager of J. Arthur Warner & Co.'s
Philadelphia office.
; v
Volume 162
Number 4442
-THE COMMERCIAL & FINANCIAL CHRONICLE
Peacetime Problems and Fiscal
TT f (Continued from page 2575);-
Tips is the
victories
treated
-are
by old
and
all;
of
to
an
ever
no
exemptions whatso¬
for: dependents.
Under the
for consumers' goods and services
and to dam it up until we have
of
new
Revenue
goods
Rormal tax and surtax.
provisions under which this coun¬
try's recognition will be accorded
the
existing regime, Associated
Press Washington advices stated
we
increased
our
production
allowed
tire
was
to
achievement
of.
standards
and
ments of which
our (system
enterprise is capable.
///
of free
R/7/a,
haps, to overdrafts
These
What War Taught As to Economy
.
-v ^The war.
has taught jus two/ im^
portant /things "about
our
own
In / the first % place, /it
has shown us that,: when the peo¬
ple and the Government of the
United States-want to do. a thing
economy..
and
;
consider
sufficient
it of
im-
portance that it
be
done, the
whole resources of the country
mobilized
be
can
plishment \ if '
time.
This
accom¬
have
the
was
its
for
we
enough
with the
case
Winning the war was right¬
fully considered to be all-impor
war.v
tant.
So
did
we
service
into
material
opr
best to call
human
every
which the
resource
the
effort
war
of
nance
we
for the mainte¬
or
civilian
the
economy.
be thankful that once
may
again fortune allowed us to bor
some
time,
althoughv the
row-C
period was scarcely, suffi¬
cient. /R /Vh/R/V'/
grace
'
time
and
evidence
of
war, but was a
condition for our
what
full
waging tr'?.l
our
desirable
very
We saw
people.
employment
can
do to
klfeviate suffering; We /saw Whit
full employment can do by "-ay
of1 increasing ^purchasing power,
arid
how
people with jobs j ean
up" most of our so-called
surpluses.1 *
*
The second thing which the war
has
taughti,J us about our- own
economy is its tremendous, pro¬
ductivity.
Our
gross
-national
product increased from $89,000,*eat
000,000 in 1939 to $199,000,000,000
irf 1944.
Some of'this, of course,
represented -an increase in prices;
but the product of the country,
expressed in real terms, increased
by about 75%. -J •
>/' ■
R We must now possess the intel¬
ligence, industry, and purpose to
apply these primary lessons of the
war
to
our
peacetime/ economy.
These lessons simply are that our
economy under the free enterprise
system has a tremendous poten¬
tial
productivity and that this
productivity can be realized when
we are of a mind to do it.
*
1
During
the
peak
of
our
eco¬
nearly
were being
nomic mobilization for war,
half of
our
applied
to
resources
the/single
task .of
During the fis¬
cal year 1945, the.;'United States
Government
spent
$91,000,000,achieving victory.
000 for
war
:
purposes;
-Vet,
so great
Was the increase in our aggregate
our civilian popug
lation enjoyed a higher and more
production, that
standard of liv¬
ing than ever before in the history
of the country. ' j
/,/ J,,/'
; Most of the nearly half'of our
Widely
diffused
,
which
resources,
recently
were so
devoted, to the' single
purpose
Of
uct
which
arid should
of the
that the people
mean
United States have
an
op¬
portunity to enjoy a much higher
standard
fore.
of living-than
/
.
,
ever
•
..
be¬
Of course, we cannot arid should
not
expect
peacetime
methods by
to
maintain
under
conditions all of the
which production
was
encour¬
I On
.
the
:/ As
side
the
of
the
armed
the
to
men
expect
to
during the
time
differences
well
and
forces
labor
adds
force,
more
we
may
consumers'
see
more
as
mass
production.
Under
conditions it will be more
those
important than
ever to
I have believed in for
a
have, what
long time,
thorough modernization of
a
tax
structure.
For
our
/•
the present
and immediate
future, our problem is not the
provision of adequate markets for
consumers'
goods.
Our problem
war pe¬
is
between
peacetime
to
desirable to remove impedi.ments
to : mass
consumption, as
rather
that
of
expediting the
production
of
these
goods
and
holding back the expenditure of
pur
surplus
purchasing / power,
///R
The
our
more
which
developments
of
goods
plentiful.
As this
it will become more and
become
been devised and the fundamental
have occurred
facilities
war¬
peacetime conditions of
production are many and complex,
but they must not be allowed to
obscure the basic fact that our
Our
reserve
either in
war
der to realize this
,
and
the
public debt,
my jurisdiction
Secretary of the Treasury... ?;
particularly under
as
Modernization
of Tax
Structure
The modernization of our ,-tax
structure,/in. my opinion,; is -the
foundation of
for
our
maintaining
and full
entire program
full
production
to
peacetime
prosperity.
As you
two
are
'/
know, it is designed to do
things; and these two things
complementary to one another;
InRhe j first place, it
:
to
the
raise
funds
is designed
necessary
to
the Government through the
demobilization period.
It is nec¬
essary//to iraise'the
money
to
carry
bring the bulk of the armed forces
War period, ■ ■•/• /'j:;R r'v; home, to demobilize them, to prowide them
with
necessary
hos¬
; The Revenue Act of 1945, ap¬
proved thi$ month, is a significant pitalization,/ to /furnish ttheir
step in the right direction. It does mustering-out pay, and to meet
our obligations under the G.
I. Bill
two things of the utmost, impor¬
of Rights. It is necessary to settle
tance.
L&R
employment in the post-
First,/; it
the
Repeals
the
-/ excess
tax. :ioThis puts business
planning ancU«>business initiative
on
a
peacetime basis and makes
it possible for jbusinessmen to plan
programs of expansion with more
confidence. -3ftR makes
it more
profits
,
worthwhile
seek
for
businessmen
to
economies of operation,
and
for lower prices,.
important that the re¬
the
way
of the excess profits tax
makes it possible for small busi¬
to grow on a basis of com¬
moval
nesses
petitive
equality with old
'whed. enterprises with
profits credits.
.
estab-
^liberal
ex¬
.
objective
war
contracts and to place the
economy
on
peacetime
a
basis.
And,
finally, it is necessary
maintain occupation forces in
countries
enemy
may
job
be
for
necessary
which
have
we
to
the
long as
finish the
as
to
undertaken;
must not abandon the Victory
that we so dearly won.
we
Government
!
Expenditures
Re-
duced
In
and
services
to
match
it.
achieving; this
objective, the
individual goal of $4,000,000,000
is of even greater importane than
the total goal of $11,000,000,000.
Individual
varies with
ability to subscribe
family responsibilities
factors; but I am
and many other
sure
that the people of the United
States,
whole, can equal and
goal.
In doing so,
they will make a major contribu¬
tion to
easing our problems of
as
exceed
a
this
transition
from
a
wartime
to
a
peacetime economy.
With
-
of
end of the
Victory
shall have concluded the
finance, and will have
war
entered into that of transition and
I be¬
lieve that we will be entering this
period with the debt in such shape
that it can play its part in the
flexible fiscal policy which will
be necessary to maintain full pro¬
duction
and
Second, the Revenue Act of 1945
has stricken from the income tax
in October, they were under
$6,000,000,000; and they will continue
rolls millions of taxpayers whose
to
incomes in relation to tneir family
mainder
at
a
of
rapid rate for the
the
fiscal
year.
re¬
But,
provisional government of
Albania, under
Col. Gen. Enver
Hoxha, President of the Council
Ministers, received from the
United States notice of the three
Nov.
on
visions
have
full
10.
is
One
that
tunity to
these
of
of
pro¬
would
reporters
be assured
to
an
oppor¬
forthcoming elec¬
following Constitu¬
Assembly; the others 'are,
cover
tions and the
ent
first
that
held
,on
with
the
ballot
"shall
free
with
and
be
basis,
no
intimidations," and the
or
that
dividuals
elections
genuinely
a
secret
threats
second
the
we
"all
democratic
and/groups
in
in¬
Albania
shall enjoy freedom of speech and
the
right lawwfully to present
arid support their
Great
candidates."
Britain
is
said
also
to
have announced its recognition of
Premier Hoxha's regime with the
understanding that free elections
would
The
held
be
situation
employment in
the post-war period.
77 7/7/7//
plicated
The interest burden or carrying
charge on the debt is well within
the ability of the economy to bear;
but it is large and it should serve
Greeks
her
at
is
for
early date.
an
said
to
Britain
be
com¬
because
friendship with Greece,
have
claim
laid
of
the
as
the
to
territory of northern Epirus and
protested against British recogni¬
tion of Hoxa on the ground the
claim would be prejudiced.
as a constant reminder to us that
The news freedom requirement,
the burden of the debt will be far
greater if we permit our national the Associated Press continued,
is one of the most definite diplo¬
income to fall.
It should be re¬
membered also that the burden
matic steps taken by the United
would be much greater if the level
States in its efforts to negotiate
of interest rates were only slightly
friendly relations with another
higher. ,/>:7-7/■;/■// .V-V. J•■'/.; j country/ although Secretary of
r
State
Policy
of Low Interest Rates
policy of low interest rates
clearly benefits the/taxpayer by
making
a lower level of
expenditures
and,
a
lower; level
of
possible for
the home-buyer to get more house
value for each dollar of monthly
payment; for State and local tax¬
payers to get
more
schools and
more hospitals for their tax dol¬
lars; and for industrial concerns
and public utility
companies to
get more plant for every dollar of
their fixed charges.
I
conscious that I have just
am
scratched
the
ing
to you
concert our
surface
in
today
.how
social
and
indicat¬
we
can
economic
that they will converge
on the goal of full
production. I
have touched upon taxes and the
public
debt
lightly,
and
upon
policies
other
as
so
matters—including the im¬
fields of monopoly and
many;
possible
possible
Government
Byrnes has for months fol¬
lowed the
A
policy of trying to get
American reporters as
into the Sovibt-controlled
Balkans.
.
7
.
j Albania, iwhich
Mussolini/ took
April 7, 1939, has been
under Hoxha to get bigPower
recognition
for
a
long
time. .The State Department said
over
on
trying
it
understood
that
Russia
also
making recognition offers.
was
/
Report On Bill To
A
Agricul¬
report by the House
ture
Coriimittee
on
bill
a
intro¬
duced
by Representative Stephen
Pace (D.-Ga.) favors revising the
farm parity price formula as rec¬
ommended in this
legislation, the.
"Wall Street Journal" stated in its
Washington advices, Nov. 3. The
prepared by Representa¬
report,
tive
Pace, the
"Journal" contin¬
ued, stated that agricultural labor
constitutes 32% of the cost of pro-
portant
during
and
that this cost be added to the par¬
competition, social security;
and foreign trade—not at all; All
of these must play their part in
building the economy of tomor¬
row.
Weaving
together all of these
into a consistent fabric
will require a great deal of hard
policies
work.
And
these
are
not
all
of
the
many problems ahead.
Not
only do we have the problems of
finding and carrying out the ways
and means to full production, full
employment, and high national
income, but also we have numer¬
ous political and economic prob¬
lems among all of the nations of
the world, the resolution of which
is essential to a lasting, prosper¬
ous
peace../z1''/; /-"'//■";■/^7 j// .."/ //;/
Under the drama of war—labor,
a
ity formula
be paid for
United
we
must have
war—all
of
N'ations
fought to¬
gether in unity and in strength.
Now that drama is gone. But still
some
cohesive cata¬
lyst to live together in unity and
in peace. That cohesion and
unity
can
and
come
from the
purpose
every man
faith, courage,
within the breast of
throughout the world,
whatever his place or station may
be.
their
of
wages
puted by the Bureau of Agricul¬
tural
Economics,
/
at 345%
(1910-14).
stood
The effect of this provision of
the
parity
formula,
the
report
said, according to the 'I'Wall Street
Journal", would be to increase the
parity price of affected commodi¬
ties
by approximately
Under
the
Pace
one-third.
the
formula
parity price of wheat
on
Sept, 15,
1945, would have been $2.02
bushel
as
bushel
of
farmers will
that
the
of the base period
per
compared with $1.54 per
formula.
drama
so
proposes
workers, family labor, and
farm operators. >As of October 1
the farm wage rate index, as com¬
Under
the
" The bill
crop.
hired
industry and agriculture pulled
together in unity and in strength.
the
Government
expenditures
are
being reduced just as rapidly as
is, consistent with
getting these
things done.
In July, the total
expenditures of the Government
amounted to SV2 billion dollars;
tali
The
the
of
purchasing power consequently,
should be used to provide jobs
taxation than would otherwise be
and
markets
tomorrow,
rather possible.
More
important,
low
than wasting itself in driving
up
interest rates will be a stimulating
prices today.
.
force in the economy generally,
There is no contradiction be¬ as they will make it
wartime
matters
two
it.
count on
can
Victory Loan is to draw surplus
purchasing power off the market
of
produce prodigiously
or in peace.
In or¬
potential today,
it is'necessary that we integrate
tween this and what I have just
our
social and economic • policies
said about creating larger markets
zp that they converge on the goal
later on, for .flexibility must be
of a high level of production, em¬
the keynote of all sound policy.
ployment, and national income,
There is also no contradiction be¬
just as during the war we inte¬
tween this objective and the Rev¬
grated all our policies to converge
enue" Act ' which
we
have
just
on the goal of victory.
•
;
The policies which must be in¬ passed, for the basic objective of
that Act is to
encourage a rapid
tegrated to converge on this goal
reconversion
with
its
increased
include those relating to taxation;
civilian production and so help
small business; Competition; labor,
to redress the current unbalance
management, and wages; foreign
between supply and demand. This
trade; social security; agriculture;
Revenue Act, then, is
primarily a
public works and construction, reconversion
measure.
and fiscal policy. I cannot hope to
The Victory Loan is also an im¬
touch brp hlL af; the$e".hereiiandT Z
step on our path from
shall comment only, upon taxes portant
economy can
we
second
post-war debt management.
reconversion
production is carried nearer to
completion and the demobilization
of
that
The
Loan,
the
physical
*■
opposite
know
era
ledger from those methods which
increased
the
national
product
during the war years, but which
Will disappear in ■ time t of peace,
must be placed the possibilities of
applying to peacetime production
the new techniques which have
cess
..
most important
Production
occurs,
It is also
re¬
can
we
Remove Impediments to Mass
!
would
Goal, A High Level of Production
industry.. The return of these
to civilian production
sacrifice
their
make possible.
so paves
sources
re¬
further,
have. /
can
period in order to bring
overwhelming force to bear on
Such source^ are out
of place,-however', in a peacetime
economy; for they can be obtained
only at the sacrifice of values,
such
as
health/ education,
and
home life, which are more impor¬
tant,
under
normal
conditions,
than the increase in physical prod¬
war,/are now being re¬
turned to the service of peacetime
waging
system
agement which business enterprise
the enemy;
more
seeking work.- This was not only
ah
,
an
happened
the labor market.
jobs than people
,
tax
our
itself,Rhe
the
greatest possible product into the
-shortest
riod.
in
compress
,
keep in mind the twin
objectives/of encouraging busi¬
ness
enterprise
and
promoting
mass
consumption—which is, in
buying
trying to
a
it becomes possible to
| As
during
were,
we
en¬
should
■'
necessary'
were
scientific
were
;'R.//
'
for the
that it will reflect true ability
'
-
vise
natural
take
now
income
taken
to pay..
of increased pro¬
war—when
'One of the tangible evidences
of4 our total mobilization was what
There
R/'//
sources
ductivity/
the
on our
we
tax, both
In this,
major step to¬
streamlining the income tax
have
so
and
coun¬
tryhad at its J command, and to
put it to use -either directly for
And
,/'/.
resources.
individual
ward
special intensity of effort which is
appropriate'only to a wartime pe¬
riod/Another part was due, per¬
show, both to > ourselves
.world, the accomplish¬
and to the
Act,
dependency
account "Of
overtime work and to the
to
the misnamed "normal" tax
cause
•
riew
Albanian Recognition
tional emergency.
These persons
were
on
the tax rolls solely be¬
due
advance to
opportunity to
U. S. Terms Outlined for
of
the
United States, victory in this war.
tnust be taken as a/challenge and
aS
in
decline
housewives who, under
normal conditions, would be tend¬
ing to their homes,, and old people
who,
under j normal
conditions,
would have retired. - Another part
life, victory does not.mean
challenge
of
expenditures,
the
money from the Victory Loan is
necessary to finish the job/and I
responsibilities justified taxation
only under the stress of great na¬
colleges;
Relaxation.v It is in itself .the greatnest
Policy
rate
during the war period was due to
drawing into the labor force stu¬
dents who, under normal condi¬
tions, would be in our schools and
and
declining countries',"with old and
declining ways of life.
But to a young country, such as
burs, with a young arid vigorous
way of
despite the
Government
increased during the war. Part of
the j increase
in our : production
in which foreign
.way
2607
under
the
Corn
present parity
would
have
been
bushel
as
compared with
$1.12, rice, $1.86
as
compared with
$1.47
per
$1.41; flaxseed, $3.87 as compared
with
$2.94; cotton, 28.40 cents as
compared with 21.58 cents; hogs,
$16.60
per
cwt.,
as
compared with
$12.60; beef cattle, $12.40 per cwt.
against $9.43; wool, 41.9 cents per
pound against 31.8 cents.
2608
along whose de¬
looks worthwhile the
great corporation can put money
into its development and cha*rge
idea comes
new
2576)
(Continued from page
velopment
of
profit to the investors, as pro¬
ducers of needed
goods* for the
nation's economy and as providers
thereby and
its cost into expense,
profitable
employment for
thousands of employees.
Tnese new undertakings were
started in many different ways,
of
burden
tax
relieving itself of
extent
that
to
many
Tax Saving
Development Capital
The Problem of
corresponding re¬
by
profits.
If the. un¬
dertaking does not prove satisfac¬
but typically by young men with
tory the advantage of the tax re¬
energy
and ideas who obtained
duction remains and the. loss is
the backing
of local capital in
minimized to a small percentage
amounts ranging from a few tens
of the funds actually invested. On
to a few hundreds of thousands
the other hand, should the devel¬
of dollars. .With this start these
opment turn out well, the big cor¬
undertakings grew by reinvesting
poration has that added volume
their earnings and eventually be¬
of profitable operations. The whole
came
solidly and profitably es¬
result
has
been
to
put heavy
tablished.
V
brakes
on
the
development of
It was seldom that the initial
new industry and to give greater
capitalization was supplied
by
advantage
to
the; growth
and
men of
great wealth or by large
financial institutions.; Under the strengthening of large corpora¬
duction in its
I
grasped
at
am
formed..
f.
Tax Rates
the
of
of, investment
number
and
over
would
spread
sufficient
a
of new
variety
un¬
wipe out. losses in
some
against
larger
gains
in
others.
Under wise management
dertakings
to
'
1946
Income
Net
Short-Term
.
•
Applicable to Cdpital Gains
Net
Income
Net
25
12.5
Long-'
20.90
14.5
Net
\
Short-Term
Long-Term
29
$2,000-4,000
$4,000-6,000
$10,000-12,000.
$16,000-18,000 r
$18,000-20,000
$22,000-26,000- 1
$44,000-50,000
$90,000-100,000 ••
$150,000-200,000
over $200,000
responsible and suc¬
most
cessful of this groups There
be required in any case a
1945
•
Exemptions
capital
of the
5%
with
done
Brackets of
Income After
"
.
the Revenue Acts applicable
upon
| to 1945 and 1946:
capital gains based
net long-term
themselves.
suggest
Why should not a comparatively
small percentage of other types of
fiduciary funds be similarly freed?
What about the funds in the hands
of investment trusts? - Much could
be
short-term and I
net
of
rates
tax
the way other
With this to point
possibilities
Opportunities
(Continued from page 2583)
present unin¬
•'
■ .A; 'v.
24.70
10.45
.
12.33
41
20.5
53
*25.0
56
25.0
*50.35
*25.00
25.0
56.05
25.00
25.0
68.40
25.00
25.0
82.65
25.00
93
25.0
85.50
25.00
94
25.0
86.45
25.00
62
75
•
90
36.10
18.05
,:
47,50;;
23.75
.
to the first
world war, before the income tax
had become the colossus which it
is to day as a result of two world
wars and one great depression, a
conditions existing up
except
paltry local and State taxes.
try set out to do, but this is what
it did.
The result, I am sure you
will
enterprise was
attractive because the earnings of
the enterprise itself were earnings
free of heavy taxation. They could
Investment in new
building up
directed into the
toward
directed
be
the company or
;
investment
new
world wars
severely burned in the spec¬
ulative spree of the late '20s and
in the ensuing liquidation and de¬
very
pression of the '30s.
It was nec¬
essary
that the lessons learned
during that period should be taken
to
heart and that proper safe¬
attractive.
to the
to prevent the serious
abuses which had been current.
Has not the time now come, how¬
ever,
when the situation should
were
public,
whether means
cannot be found for reviving the
Recognition
The
of Risk"'
'.-.v
realization
these
duced to the
for
fn! c!riflc
522^.+;?-risks
:
tion to the; necessary
Take,' volved. the necessary means
to I believe that
investor
the
by
diminished
vanishing point.
the case of a
instance,
who
well
would
fixed
from
indeed
If that
timation..
in
popular es-
man
had income
though
that
new
undertaking should return clear to
him as a stockholder, after it had
paid
its
own
Federal tax,
an
amount
large as 10 % on the
investment (and this is practically
impossible)
the man with the
$100,000 would find this new in¬
come
coming out of brackets so
high that he could realize no more
than 0.6% on the money he had
put into the undertaking.
If he
..were a man with a $200,000 in¬
come
as
the return
investment
on
would
the successful
be
He could
meager.
more
'
still
more
for
hope
than 4/10ths of
no
1%;;^
this within the limit set by the
|.^te S°yernnients.
I
As
From this drying up of the pos¬
sibilities of adequate returns in
new undertaking and the
still
greater barrier put to the realiza¬
a
of
part
of
resulted
the
investor
use
of
his
own
considerable
returns, there has
these
a
for
any
condition in which
new
undertakings for the first time in
the history of this country ceased
to be attractive to the diminishing
number of
men
who
might be
con¬
vinced of their intrinsic worth.
Parallel
with
a
clue to the solution of this
problem,
attention might be
passed by the Leg¬
your
called to
law
a
islature of Connecticut early this
this has gone
This law provides that 5%
the admitted assets of a life
increasing incentive to old-estab¬
intrinsic
value.
f
able for
initiating still
enterprises; and
thus
volume involved might
serve as a
the bottom.
from
The Impediment of Regulations
As stated at the
beginning I am
fully informed as to what
regulations
and
administrative
not
practices would interfere with an
undertaking of this sort.
If this,
similar nature and
are
devel¬
oped, I do urge that you gentle¬
men give them sympathetic treat¬
or
projects of
similar
a
as
such
Now there
two
three in¬
or
this
about
first
The
removes
are
things
teresting
thing
that it
a small
is
the limitations on
of the total ad¬
Even though there<
mitted assets.
should be? a considerable amount
of loss in this unrestricted invest¬
,
to
be
may
it
would
the
not
enough to
stability : of
be
financial
subject
both
to
such
which
skill¬
and such
minute public scrutiny that their
investment policies as a whole can
be depended upon to be safe and
conservative.
the
^
industrial
longer
no
maturity
with
hold
deavored
expect
belief.
this
to
show
and
the
I
As
freedom "for
generations ago.
Meanwhile
vanish-
;ng aggregate of smaller personal
the
primary source of
investment. The proposal to
free
as
5%
room,
make
if
such
of
the
funds
of
directors
service.
which
that
As
to
the
Federal
I
opportunity
*
find
is .beSng.
Reserve
Bank of Boston,
in a spot
of new op¬
to my attention.
sitting
myself
fiduciary
great num¬
for
possibilities
new
in¬
vestment. We have various means
attractive
possibilities and for spreading the
for
■
the most
selecting
risk
on
Does not
selected.
those
this furnish
sound business basis
a
trying new methods of apply¬
ing development capital? V'
American
business,
American
for
the
and
employment,
prosperity
of the citizens of the country as a
portunities
whole
Our
ideas
but
come
country is boiling with new
and I am the recipient of
minute fraction
a
of them.
Importance of New Ideas
ideas at least a
be discarded without a
Of these many
half
can
Of those remain¬
little thought would indi¬
second glance.
a
cate
not
that
more
than
half
a
of investigation.
Of
remaining number, possibly
a
half on thorough investigation
would
seem
to
warrant invest¬
ment.
Of those invested in per¬
are
worthy
that
cess
than one-half would
out successfully, but the suc¬
of that remaining small per¬
no more
of
centage
should
be
the
and
original
total
be
suffi¬
would
ciently great to far more than pay
up the cost of screening and the
losses
*
on
Private
the failures.
individual funds
,
have
large dividend has been
declared, but not paid, disposal of
should
stock
the
considered
be
through sale just prior to the exdividend
such
date
the
on
basis
that
security usually declines by
a
the amount of the dividend
the
ex-dividend
dividend
date,' In
would
after
effect,
received
be
there
less
be
is
A,;...'44
days.
(9) Since taxes this year will
be higher than next year, capital
losses taken this year may result
benefits than in
postponement of
establishing profits, particularly
short-term
profits,
until
1946
would be advantageous from a tax
in
greater tax
Likewise
1946.
standpoint.
sented
the
old < big indus¬
securities of equal
establishing a long-term
than
new
strength,
from below.
ability
We need to marry some
loss
transactions, intrinsic merit of the;
individual security should be con¬
sidered first and the tax saving
opportunity second.
ty
(12) Tax Selling is likely to bet
heaviest in issues showing great j :
est price declines during the past
six months, but in view of the fa¬
vorable long-term outlook for the
general
market
offsetting
an
desire of tax
sellers to reestablish positions im¬
factor
will
the
be
buying
Tax
mediately.
may
be
urgent in those issues which
selling near the year's highs
and which at the same time har¬
most
are
bor large
mand
to
other
speculative de¬
short positions—in
words, a year-end
cover
outstanding short;
positions, most of which at present
levels show losses which presum¬
ably can be used to
advantage.
David Means Resumes
•
MAINE —David
BANGOR,
U
G.
Means has resumed his investment
from
offices
at
He has recently been
6
State
serving
«i;\
in the U. S. Navy.;,
A
small part
fiduciary re¬
ideas which
are
seeking support.
The purpose of this paper is to
urge that you gentlemen within
your own important sphere of re¬
the
long-term
a
;.;,V7'
(11) In contemplating security
enormous
to
loss
would be advisable.
St.
our
or
short-term
a
than
rather
business
sources
short-term gain
a
establishing
expansion of our
tries alone. We need
of
pre¬
among
merit,
ly for an indefinite t time on
and
,
is
choice
a
indefinitely as¬
healthy infants in our business
cannot depend safe¬
energy
/
Where
(10)
free enterprise un¬
a
continuous birth
under
sured
of
cannot
structure. We
The
turn
to
■
have this
of
where large numbers
these
extent
,:i
we
have the
We
of
ber
the
lack of
loss which could
scarce, but
accumulation
funds.
to
hopeful ideas for new
enterprises. As President of the
haps
companies so desire, to
experiments in
no
carry-over
great
the
and
new
allows
full-scale
,
is
there
a
become
In the
that existed two
hope for profit
should
be reviewed in order not to over¬
look
tax law for 1946 this pressure
sufficiently
:
security auctioneers or
advertising ■ or through
offering to the issuing company.
(5) Last year's records should
en¬
measure of
investment and
pri
than six months
more
a
rather
through
through
brought upon us by the deadening
of high taxation.
before
Preferably such se¬
be
disposed of
with friends.
curities
terprise do not arise from any in¬
ternal
decay.
They have been
pressure
loss
a
(4)If there is no free market for
securities of dubious worth, trans¬
actions should not be entered into
that the brakes on new en¬
sure
be desirable to sell in
establish
to
became worthless.
I feel
earlier,
may
they become worthless and there¬
by prevent argument and delay
with the Treasury Department as
to.t whether
such securities are
worthless and, if so, when they
this nation has
effect that
it
so,
order
'
vital
growth of new enterprise that
has been the energizing source of
our progress
in generations past.
Some have even pressed this point
so strongly as to lead to the sus¬
picion that they are really fearful
that we are approaching senility
rather than maturity.
I cannot
can
ing
*
Another interesting thing is that
the great body of fiduciary funds
has taken the place of the
in
necessary
Much has been said of late years
reached
ful internal management
new
practical.
4..
4
(3) If securities are virtually
worthless, but not legally declared
recommen¬
ects of this sort.
new
percentage only
funds
Likewise an ex¬
of long-term gains should be
offset to the extent feasible and
cess
State laws to permit the op¬
your
which
brief
short term losses.
purposes
'make
and
held for
which may prove
a continuous revivify¬
ing of American business by new
growth
,
recognized. .A;/. V
>y
Summarizing, we present below through the higher sales price and
some
total
the
applied against 1945 capital
gains or income.
V
t;/'
A (6) In the case of a security ;
practical suggestions would be taxed to the extent of
helpful in min¬ only 50%, whereas the dividend,
imizing the tax burden for secur¬ if actually received, would be tax¬
able at 100%. rVty.;'ity holders, viz: v;'A tyA;;
(7) The last date for recording
(1) As an initial step classify
all
security holdings into their losses is Dec. 31 but the last date
for recording profits (except by;
proper short-term
or long-term
'
category.
; v-AA cash sale) is Dec. 27.
(8) A security sold to establish
(2)
If transactions completed
thus far this year show an excess a profit may be repurchased im¬
of
net
short
term
gain, these mediately without penalty, but a
security sold to establish a loss
should be offset, where practical,
by establishing losses, preferably may not be repurchased ' for ; 30
more new
catalyst in
lifted
affect
is
ized from the sales becomes avail¬
be
the
of the actual long-term loss
50%
real¬
The money
small
lic
their
as
soon
some
ment
capital loss results in a greater
tax saving since 100% of the loss
is taken into account whereas only
they had come to the
point where they stood on their
own feet as securities of proven
as
a
parent that capital losses may re¬
sult
in
greater tax benefits if
taken
this year rather than in
1946,
Furthermore, a short-term
revolving fund by the
a
a
from
of public, sale of the se¬
curities in the new undertakings
been
dertakings
integral part of
large.,operations. ..When a
turn into
; pos¬
Such an in¬
naturally
process
give
"aising the birthrate of new en¬
terprises. The opportunity at least
s there for rendering a great pub¬
an
interesting
long-term gain instead
short-term gain ;is obvious
the foregoing. It is also ap¬
taking
-ty of
applies to net long-term capital gains. " ;
advantage in
extent of the
The
would
fund
has
shall be freed
from all legal limitations as to the
character of investment allowed.
lished and well-financed firms to
absorb the new ideas and new un¬
as
another
of
insurance company
idea.
^Maximum rate of 25%
is
sea¬
-
sibility is involved.
new
msurance
an
Still
'•
year.
are
personal
5
these insurance companies,
Drying Up of Adequate Returns
tion
in¬
can
found to do
and
Even
venture.
be found and must be
very,
dividends; of
$100,000 a year and sought additional income by putting money
into a new undertaking, he got
no
return from it to justify his
wages
|
man
considered
be
on
returns was re-
equities..
vestment
and
evidences
eration of all well conceived proj¬
•
.
.
personal'
time the
larger
than
investor
.
*n raising this question we do
*]av,e to recognize that new tinby renegotiation. This means that dertakings involve risk. The probinvestment in new undertakings ^em 1S to recognize the risk as a
has very greatly decreased in at-. necessary element m a progrestractiveness
v ;
;sive, industrial economy, while
same
debt
dations
a
At the
soned
ment
80% of the
position to take 80% of the;
earnings of successful corporations .
in addition to the sums it realized j
in
of
for
Government is
taxes, the Federal
turns
public?
with the re¬
the excess profits
the second war, even
the
to
possible from the diminishing re*;
develop¬
ments,.; while still. affording all
proper protection to the investing
Particularly during this period of
bates allowed on
return
financial support of new
indebtedness.
the
of
concomitant
so as
be reviewed to see
and carried
an
increasingly heavy burden of
income
taxes
as
the
inevitable
heights
of
around
guards should be set up
the offering of securities
ing of the great depression raised
the Federal indebtedness to un¬
dreamed
which
field of respon¬
The general public was
sibilities.
generation
a
major deterrent to
the
undertakings, l am assuming
within "your
lie
very dif¬
later. Two
and the deficit spend¬
conditions
The
ferent
in the-public
;.y"
7
that there have been others
abundant and
was
-
the income tax situation
been
new
in-
Under these conditions
vestable funds were
:
While
has
pockets of the stockholders, de¬
pending on the business judgment
of the owners and the manage¬
ment.
is not
agree,
interest.;
man's income was his own,
for
is not what the coun¬
This
tions.
the net result ought to be a
H. F. Miller in Rochester J
new
.
F.
ROCHESTER, N. Y.—Hermann
Miller is
ities
Merchants
consider the over¬
importance of this birth of
engaging in a secur¬
busines^ from offices at 798
Road.
'
•
'
sponsibilities
all
undertakings;
new
and that you
allow
enough free¬
endeavor
dom
so
that wise and
endeavors
run
to
in
this
farsighted
field will not
into unwise legal
restraints.
i
D. C. Compton
WINFIELD,
Compton is engaging
ities
business
West 9th St.
.jJ: r.
Opens
KANS.
—
D.
C.
in a secur¬
from offices at
106
?
.Volume, 162
TUB'('nwwcpnAT
Number 4442
PTNANTTAT
A
tj-ol of the corporation.
Port-War Problems of
to say,
nied.
Security Commissions
problems
of
the
securities
com¬
missioner, suddenly enhanced by
new developments?
They will be
discussed subsequently, but first
let
look at
us
.; ditions.
few
a
general
con-
ft/A,";.
'77v";'7
,
During
the
war
the
earning
the people increased tre¬
power of
moters
Many pro¬
busy with war work
were
matter into court and had the sale
,
>
to
Many
money
in the armed forces.
or
Therefore,
large
to take
as
care
incentive
to
invest,
in
opportunity to
unsound
securities
largely avoided.
was
i
and
tial portion
.will be
pie who have invested their sur¬
plus in war bonds will be urged to
,
cash them in and invest in
ities of
have
moters
-
7
war
work
The
1
secur¬
speculative nature.
a
been
wolves
Pro-
released
from
the armed forces;
and
will
be
looking for
their prey.
Here is a danger that
can
only be brought home by
proper educational and publicity
work on the part of the commissioners and law enforcing bodies;
Our
association
has
heretofore
of funds necessary to
preferred
take
stock
own
state
of the
situation in
his
lost
the
federal
indictment for
us¬
to
cash, however, for the payment of
dividends many companies
duty
our
as
commissioners
cies
made
effort to retain this cash
an
operation and to elimi¬
nate the dividend delinquency by
issuing debentures.
These offers
varied to an extent limited only
by the plans of the officers of the
company.
To arrive at an equit¬
able solution of such a problem
the ; securities
the
various
exercise
The
commissioners
have
While
be put into
effect,
which
present
have
the
are
use
fraudulent
through
Jt
.,
.
.
„
from
commissioner
One
think
would
that
the
"fate of the state hung in the balance
if this or
that 7 particular
icies
should
;
schemes
carried
of these
salescarried
are
in
foreign
lands.
New plants and industries will be
established in war torn Europe, in
the
Orient
these
you
.
need
to
tell any
of
how to
We have to
you
handle this situation.
keep ourselves immune from such
,
bring
the
countries.
can
capital, in whole
As
commissioners
called upon to
of
Latin
Many
of
enterprises will seek Ameri'
or
in part,
will
we
encourage progress.
In closing I scarcely need again
to remind you that we are human
and, of
or
chance for the public
no
realize von
to
investment,
the
Other offerings will be legitimate ■
the honest efforts of honest men
to
make
There
start
a
of
decide the fairness
issues, and to do so we
adequate knowledge of
operations in .foreign
countries,
mean
additional
the part
commissioner."
the
of
re-
busy
transfer¬
the
on
home of the dollar equivalent
ence
rough, as it
certainly will, take time out and
indulge in your favorite hobby.
You will return to your problem
with renewed vision and strength
to
stand
by
your
convictions.
.
From my
own knowledge of the
congregated here I know
that you will approach all prob¬
lems in a spirit of fairness and
that your decisions will be just.
men
in
a
small
way.
invention will be successful or
not, but he must see that the publie has a fair run for its money,
AtomiCKbomb
rocket
planes
revolutions
in
developments
Will
and
great
and our
cause
industry
mode of living, ; Sale of stock in
"Trips to Mars, Incorporated," may
become a reality, but probably
sift the chaff from the wheat and
most
course,
decide what is fair to the public.
Reorganizations
v
A
the
•
'
vital problem is bound to be
ascertainment
of
the
proper
basis for reorganization or recapitalization
us
before
terms
this
solve
to
*7
of
I
As
ted
have
of
some
to
the
will
serve;
our
upon
will
not
under light of day. They
of
companies Where remind me somewhat of the story
necessity appears.
During 0f the man who was reported to
the war, when most business was have made a strike.
He was met
confined to war work, many enby a friend soon thereafter, and
terprises not engaged in war ac- ;the
following conversation
entivity found it difficult to meet sued*
^
*
/;
dividend
requirements.
Some,
Friend: Well, I see you made
companies, however, which had
$100,000 out of oil in Oklahoma. j
prior to 1942 been unable to meet
The Man:
Well, you are sub¬
cumulative dividends found that
it was not possible to build up a stantially correct, except that it
such
a
surplus from
market into which
increasing flood of
money. Restaurants, hotels, stores,
transportation companies, ware¬
houses, apartments and buildings
Was
poured
could
be
a
an
so
classified.
It
is true
that ceiling prices were made
fective,
hotels, it
ef¬
in the case of
found that an 85%
suddenly had.a 100%
but,
as
was
occupancy
occupancy. Restaurants had great¬
ly enhanced business. Stores
bought out. Transportation
were
corn-
(Wasnt in Oklahoma, but in Pennsy/vama~71*' Yas, leaci instead of
011
Forces
and 1 lost
iri
dollars.
he desires, the
de¬
make
to
facts?
One
in
story
the
shall
I
appreciate
greatly
any
information
both
yoju can supply me,
these specific questions
on
and
the
general subject, so
long as the disclosure will not in¬
terfere with the military security
on:
of the United States. ,;
7777;
- *
;
>
Yours sincerely,
v
miums;
soldier
in
de¬
dollars.
purchase war
insurance pre¬
these transactions
pay
of
carried
are
or
to
all
in
out
States
United
United States troops sta¬
THEODORE FRANCIS GREEN.
Department's reply to
the
above letter,
made through
John W. Martyn, Executive As¬
sistant to Secretary Patterson fol¬
I
-
Honorable Theodore Francis Green
States
Senate
Senator
Green:
United
Dear
In
Oct.
pay
marks.
Prior
one
of
was
the
enjoy
chasing
rally they wished
to retain
con-
a
power
of
his
paid
for
for
ber
of
months
many
over a
marks.
.'
you
into United
States
to
currency
7 refer
is
Allied
the
being used by the United States,
British, French and Soviet forces
in
their
respective
occupation
avoid
monetary
Germany.
considered
various
order
desirable
occupying
uniform
a
In
to
problems which
otherwise arisen, it
have
for
the
to
use
powers
7* military
currency
throughout Germany. None of the
occupying powers is committed to
redeem Allied Military Mark cur-,
v;;;.-;7-7--.•
rency.;-
■
77;''
This Allied
was
rency
Military Mark
printed in both
United States and the U. S.
the
Soviet
of
cates
the
Government
plates in
States
United
privilege
the
a
Soviet
.V
guaranteed
local currency,
AM
into
mark,
dollar
checks
as pay
instrumentalities
money orders
as
home, through regular mili¬
in
use
order
to
forces.
the
S. R.
in the
insure
the
In
able
We have is¬
sued directives to all theaters de¬
signed
restrict
to
all
from*
large num¬
a
In
addition
field,
offi¬
to
within
limits.
these
undoubtedly
on
of
a
very
small
by
difference
the faco of the notes.
As
in
the pay
all
of the world,
and allowances of mem¬
parts
abroad
U.
S.
to
into
S.
R.
Accord¬
and
are
^
American
through
troops
exchanges
post
S.
S.
from
marks
marks and Reichsof personal
the sale
property to Russian soldiers and
in various other ways.
While it
possible for our soldiers
is always
to
evade
to
some
extent
regula¬
remittances to
regulations
continuously being reviewed
perfected
to
prevent
the
tions
restricting
the United States, the
and
into, dollars
conversion
AM
marks;
unspent
his
made
of
into dol¬
individual soldier to
the
more
bursed
re¬
question.
your
hestitate
be
of
effect
Please
call
on
not
do
if
me
I
can
v"
7:.
With kind
JOHN W.
'
.
:
*
regards,
Sincerely yours,
MARTYN,
f
-
Administrative Assistant.
Rejects Demands for
Higher Prices on Gars
Price Administrator Chester
Bowles told
that
he
is
Congress
rejecting
on Nov. 13
demands of
automobile dealers for higher re¬
tail prices on new cars 'and bit¬
terly denounced, "government by
pressure," according to Associated
Press. advices from
Washington
on the same
day, which also ha&
the following to say; Mr. Bowles
OPA
said
would,
Appearing
Small
OPA
the
announce
prices Thursday.
'J;-;-
before
the
•
/.
Committee,
Business
;
House
the
estimated members of
chief
Congress have received more than
telegrams protesting against
5000
OPA's auto price plans.
Describing this
single
"the greatest
operation
Mr.
as
group
pressure
OPA
established,"
was
V/ 7
declared:
and
half
one
years
/;.■
in
Washington has made, me some¬
thing of an expert on pressure
groups,
lobbyists
and
pressure
group tactics. I have been alarmed
at ; the tendency on the part of
some
to feel that Congress and
governmental officials should base
their
of
decisions, not on the validity
particular issue but on the
of pressure which could
focused at any given point.
a
measure
be
"This
idea
pressure'
our
is
times.
of
an
It
democratic
'government
ominous
is
rights
sign
of
all
of
to
the
the
threat
a
by
in¬
little people of
America."
marks
to
savings
is being
effort
being offered by
these troops.
these
,
further service in this,
any
matter."
in¬
or
Every
appropriated
to
articulate,
prevent the eventuality
to
•
.
portions of his pay
family
to
Soviet
amongst
foregoing infor¬
mation will satisfactorily answer
not
Maying it difficult
lars, withotff
for
of either
Reichsmarks
conversion
for
eligible
or
and
I trust that the
"Two
acquired AM
R.
troops.
Bowles
true
finance offices than had been dis¬
marks
the
available
that
is
the United States troops to
AM
fa¬
same
reconversion
willing to offer unnaturally high
prices in marks for various personal type
articles.
This is es¬
pecially true of the luxury and
semi-luxury type goods readily
United States soldiers have
It
some
States
printed
for
to
since
distinguish be¬
tween Soviet printed and United
are
to
having large quantities of marks
in
their
possession, the - Soviet
remittances
foreign "areas
cur¬
dupli¬
States Army finance
or
tary finance offices.
mit
United
acquired
•;
of
the
at
and al¬
derived from legally
or
acquired
uniformity between the AM marks
the
a
such
are•
The United States made available
to
If
United States dollars applies only
to amounts originally drawn by
,
in
was
he
:
the AM marks.
7 This
dollars
which
at
rate
same
(
Military Mark which is currently
might
pur¬
from
The /occupation
or
Accordingly,
year.
they have received
and
pay
lowances
which
of
allowances
in AM marks than he requires, he
may -reconvert such excess back
more
tion
and has asked me
to provide you with the following
answers to your questions on the
Ger¬
members
satisfactory
in Germany.
military personnel
currency,
AM
in
in
considered
that
assurance
looked into the matter of occupa¬
subject/
invasion
the
factors
many
means
r»tu-
to
of the United States Armed Forces
promoters
b"t
been
even
In fixing this military rate,
exactly
the scheme.
paid
are
stationed
Investigations have
re¬
vealed, however, that many Rus-,
sian troops
now
there had not
dollar, the pound sterling and the
ruble.
The
in
troops
while
many.
agreement was* consummated to
utilize
the
AM marks
and
the
vest
money
Soviet
marks
Germany, American-Anglo-Soviet
cers
in¬
for local
draw any portion of
and allowances in AM
including
your
Mr.
29th,
their
conversion from
letter of
Patterson
has
to
response
•
.
purchases,
soldier decides that he has drawn
The War
7
tioned in Germany may,
would
7
marks
tnese
aside, in a special account
at the Treasury. In this way ex¬
penditures of; the United States
Army in Germany are confined
to Expenditures which have been,
duly authorized by Congress. '[
and other Army sources and com¬
paratively in short supply in the
-Recently we had an application
to sell $1,000,000 worth of stock
in a purely speculative venture.
own
equivalent of
set
U.
and
stitutions.
to
aoiiar
is
bonds
to
their
expenditures in that country,
the appropriate War Department
appropriation is charged and the
posits accounts, to
used by the British and American
proposed
the United
States Army in Germany to meet
its
Soviet soldiers are partic¬
ularly desirous of spending the
AM marks which they receive for
United
forces and the AM marks used by
$1,000 of
quantities of AM marks
their pay and allowances
States
special
a
Treasury."
made available to
are
back
calculated
are
Many of the schemes proposed
out
when
subjected
to
searching investigation.
fade
When
the
ingly,
pendency allowances, to make de¬
posits in bank accounts in the
zones
been pointing out,
propositions submit-
the commissioner
stand up
out
being called
mystery.
in
rubles and the remittance of funds
of occupation money in the hands
of G. I.'s abroad.
What are the
lows:"
-
legitimate
promoters as well as the other
kind. All in all, it is the duty and
problem of the commissioner to
are,
make mistakes.
course, we
When the going gets
Whatever portion
soldier
may
use
restrictions
these
(about the establishment or at¬
New Inventions
I
tempted establishment of many
small businesses, some of which
New inventions will undoubtedwill entail the offering of secur- ' ly call for new promotions.
The
ities to the public.
Some of these commissioner will not be called
will
be
pure
promotions
with upon to decide whether the new
little
enough to
bers of the United States. Armed
be
must have
influences, but
doing so takes
time, and at times a good deal of This will
fact.
v1 \
;
jsearch on
Postwar development will
in
and
American
If
direct, they have others wire, telephone or call.
Of course, I don't
unable to get at
elastic
porting that for the month of Oc¬
tober only the Army was easing
developments
they
are
be
its
beyond the confines of
your
own
state
by
solicitation
through mail or telephone, a good
scheme should be disapproved.
.
have
*
.
stacles to the development of your
state.
should
vision, and his administrative pol¬
(Continued from page 2572)
.
<
evils
War Department Official
,
a
nation and one suf¬
of depression.
prosperous
_
,
com¬
activ¬
be the difference between
tary purposes set aside in
account
cilities
from
Gn
take all necessary
of
postwar
dollars equivalent to mark dis¬
bursements for United States mili¬
Army does not have the
"Stars and
Stripes" stated that our troops in
steps to protect the people.
Berlin were sending home much
i
**
example,'of course/being the so- more money than they were re¬
pressure. Groups
licitation of American citizens by ceiving as pay. Can you give me
One of4he greatest problems is promoters located in Canada.
statistics
covering
our
; these
pressure.
Different
groups ; at-.
r ! ;
r ;
f forces in Berlin and showing how
tempt to sway your judgment one
Foreign Issues
much they were paid and how
: Way or the other; If you disagree
J The change from war to peace much they have sent home since
; With
them, you are raising ob- is apt to bring about many new they entered that city?
and
flow
i
commis¬
always been
of discretion
high-pressure
i Some
adminis¬
as an
problems 'of the
sioner
men.
17
certain
the
to
will
states
m
on
*
^ f i
/
restrictions must
'
all.
not
impede legitimate
We must not put the
Increased
may
The
should
to
in
great degree of care,
a
cooperate with all other agen¬
charged with like duties. Co¬
operation helps the efficiency of
for future
and
The commissioner should
juris¬
this venture. However,
promoters are now
on
of
It is
>
shareholders. Instead of using this
combating unfavorable stock
structures, misleading advertising,
tinued.
our
investors
Interstate Cooperation
meet dividends due the
lie
and
and
substan¬
or a
done much in
educating the pubregarding unsound securities,
this good work should be con-
sales,"
ing the mails to defraud.
«', / these
Soon, however, war bond drives
a thing of the past.
Peo-
;
of all
:
oyster beds
within
not
diction.
meet
preferred
requirements, resulting
accumulations, suddenly
that their surplus was such
unable
the
."land
as
;
therefore
Under these circumstances some
;
companies which had theretofore
been
in
interest
an
defined
-
"
the
ity
a
of
restrictions
as
upon
fering
found
7. legitimate securities.
pro¬
disapproved of our restric¬
regulations, they took the
invested
other
the
brake
merce.
moters
some
or
When
the
tive
they found j difficulty in op¬
erating.
Apartments and office
buildings
were
greatly
over¬
crowded.
7
under
bonds
Ocean.
of
such
that
dividend
war
tidelands
these
be
enterprises.
panies had such a flow of traffic
in
in
involving
beds
being
these
the
on
Pacific
mendously. Much of the surplus
living needs and taxe$ was
over
securities
beds,
situated
(Continued from page 2579)
trative policy in order to prevent
fraud and provide full disclosure,
yet
oyster
26.0$
de¬
was
the * problem' of
had
of
sale
&
Needless
their application
have
We
the
CHPONin
funds
Army
The only
available
conversions
are
to
the
silent,
Mr. Bowles told the committee,
in
the
presence
of
auto dealers gathered
caucus
room,
hundreds
of
in the House
that under the OPA
price schedules for new automo¬
bile^ the
have
1946."
dealers
their
best
"are
profit
likely
to
year
in
Thursday, November 29, 1945
COMMERCIAL & FINANCIAL CHRONICLE
THE
zm
lomat puzzles people
Wants Investment
According to Plan
Profits Paid
tion to the Board of Governors of the National Association
"'".7'
"''
Extra Dividends
as
Commissioners' Committee
Securities
As to
employees and traders, those registrants who are
in the actual employ of NASD
numbers, do they have a
choice?
Can they refuse to register, and refuse to signify
their willingness to ahide by the Association's by-laws and
This Will Avoid
rules of fair
'
Now
Hold
Investment Companies
on
,':;7 77
7j,7;
.
Clearly the answer Js no, for the
choice would leave them without a job,
7;
7■
exercise of such a
since under the reg¬
of the by-laws the member firms
the employment only of registrants.
By what right does the NASD impose these restraints
the employment of the prospective registrant? Can
30,0Q0 individuals be legally registered without their
upon
some
being
consulted?
such
Can
termed "self-regulation"?
regimentation
properly
be
The pamphlet goes on to say:
v
r
.
Such
assumption does violence to the facts. Illegally im¬
posed restraints enhance nothing, and are not providers of
The unanimity of the Board of Governors is
j prestige.
mean¬
ingless in the light of th$ failure to consult the very indi¬
viduals who are being regimented.
These forced require¬
ments on so vast a scale deprive the over-the-counter field
of dignity.
The addressees
are
further told:
,
"So
;
7
?<k
long as the instrument of regulations, NASD,
fully observes its obligations to the public and its own
membership, regulation of a more restrictive and less
sympathetic character can be resisted."
'
*
,
We remind the NASD that the instant
regulation and
regimentation is not of its members, but of those entirely
alien who enjoy none of the privileges of membership and,
therefore, should have none of its obligations.
The veiled threat of
j
ulation is
an
unsympathetic and restrictive
reg¬
old gag, constituting an attempt to force a choice
Goodness knows that NASD and
of the lesser of two evils.
instances, been completely
We need only
turn to the recent NASD by-law amendments providing for
registration, and empowering the Board of Governors of the
NASD to submit by-laws defining what are "unreasonable
profits, unreasonable commissions, and other charges," for a
striking example of lack of sympathy and understanding.
SEC
regulation .have, in
many
bereft of all sympathy and understanding.
The controls of the securities field imposed by the regu¬
latory agencies find the public and securities dealers and
brokers continuously ground between the upper and the
V
nether millstones.
/
Consistently enough, although the NASD designated the
as one,
nothing is said in this pamphlet
concerning "unreasonable profits, unreasonable commis¬
sions, and other charges."
.
1
'
,
convention in
nual
It dealt mainly with the tendency
Chicago.
of
the amount of dividends paid in past
periods regardless of whether or not a large part of these payments
merely represented capital gains. - The full text of the Committee's
report follows:
The
a
such dividends do not represent
two-day
7
Commissioners
states
a
the
attendance,
special
Association-
of
There
discussion
was
Investment
an
shall not for the pur¬
7 of ; this -1/ regulation
be
the year
pose
deemed
V
be from other than
to
investment
income merely be¬
the particular period
for
cause
extend¬
specialty funds,
on
of
principal. 1
"Regular quarterly or semi¬
annual dividends paid during
or
present. We met with
committee of the Na¬
were
Companies
to
discuss " investor
problems arising from the present
war
and steps which might be
taken for the protection of new
ed
*
other
nine
of
.
realized capital gains, or
by those members of the
in
earnings on their investment
represent a distribution of
other¬
wise as the case may be, and
therefore should be regarded by
them as distributions of capital
but
addition to the three states repre¬
Committee
J the amount thereof
exceed
may
.
Many
a
call for help and of dismay will be heard when
teeth into its new powers. >
the NASD seeks to put
We
prophesy that the current registration statement is
True, it may only contain three questions and
the subdivisions of them.
nary
However, it would be extraordi¬
if the NASD did not become
first dose
more
being taken agreeably.
ambitious upon the
There will be amended
In
more
our
.
>TiV
;
77,-
7;
opinion future statements will be longer and
As the NASD feels its oats, its appetite
annoying.
will continue to become
more
ravenous.
Wage Rises Permit
Revenue Bureau
Tax Deductions
mendations.
The National War Labor Board
announced
increases
on
Nov.
granted
7
that
without
wage
Gov¬
ernment
approval after Aug. 18,
will not be liable to dis¬
allowance as business costs for
1945,
income tax purposes, Washington
Associated Press
advices stated,
and
continued:
Pay increases
lacking Govern¬
ment approval prior to Aug. 18
It
on
disallowance
the Internal
WLB
recom¬
one
was
used to prevent manpower
means
pirat¬
ing by indiscriminate wage rises
during
the
shortage.
President
wartime
manpower
turn
Truman
changed the
Aug.
aries
18, so that wages and sal¬
could be raised without the
Government's consent.
first
WLB.
decreases still
are
However,
subject to
gold
Foreign
as
concern
standard.
But
is to maintain friends
ly relations with the United
not
does
<
Secretary,? his
throw
in
States/
his
full
weight to prevent the deal, even
though he would probably be se¬
cretly relieved if the negotiations
failed through no fault of the Brit./
ish. Mr. Morrison, too, is reluctant
to support the plan, largely be¬
cause he believes, in strengthening
Empire links rather thin
weakening them. Mr. Greenwood,
;
whose
attitude was indicated by
much-quoted- reference", to V
pounds, shellings and pence being
but meaningless symbols, is alSo
opposed; so is Mr. Shinwell who,
before assuming office, was one of j
the most determined opponents qf
his
-
not, a substantial decline in mar¬
ket levels is bound to be followed
by keen disappointment on the
part of investors who labored un¬
der the : illusion that they were
getting an 8% or 10% yield and
who suddenly find themselves ob¬
taining 4 % or less.
and
suggestion has been madet
believe it merits further
we
serious
consideration
by
securi¬
ties commissioners, that the sale
of shares of an investment com¬
permitted in their
(a)
it pays such
special distributions arising from
capital gains only in the form of
extra dividends and only at the
be
pany
of
end
not
unless
the
year,
and
the
vestor,
in
the
bution.
at all
(b)
being,
of the in¬
of principal or
capital distri¬
standpoint
a return
nature of
a
A proposed
having
Dollar Loan
is
obtain-
"Dividends
(Continued from first page)
the eventual discontinuation
of bilateral and regional pacts.
It
'
reasonable
to
-
suppose,
that Lord Keynes and
his colleagues, having swallowed
the camels, will not find it unduly
difficult to swallow the gnats of
therefore,
unimportant
interest
cape
rate
clause.
As far as
is
only
or
from sources
near
or
the American terms long
he had not received in¬
structions from London to hold
firm on some points. In an exas¬
the end of each fiscal
and should be ear-marked
The stock¬
holders should be informed that
as
such dividends.
quickly.
ish
Unfortunately,
also with the Brit¬
Government,
which
makes
much more difficult." He
is subject to much criticism on
this side, on account of surrender¬
ing vital points too easily; that he
should be regarded in the United
things
States
gerous
as
personifying
the
dan¬
Machiavellian British dip¬
Opposition
benches,],
the num.-?
likely to op¬
pose the pact is known to be quite
negligible. At a recent private
meeting of the Finance Commit-^
tee of; the Parliamentary Labor ,
Party, the Chairman, Mr. George
Benson, came out strongly ir^ its
favor, and was supported by Mr.
Durbin, Parliamentary Secretary
to Mr. Dalton, and Mr. Gaitskell.
one
of Mr. Dalton's confidential
advisors. The resolution favoring
.
concerned, he Would have ac¬
I have to deal
other
ber of those who are
details such as the
the so-called es¬
cepted
ago if
be settled
while;
Exchequer to
of Bretton
As to the Labor Party,
the agreement was
paid
current
utmost
Many
favor from the
or
7 77. 77;77;>-;'.? 777
Lord Keynes himself
•
the
Conservatives are,
hand, strongly in.
favor of the agreement, judging,
by Mr. Lyttelton's advocacy of Ar¬
ticle 7 of the Lend-Lease Pact*
but if the official Party decision
will be to oppose it, there Vvill be ;
only isolated voices raised in its?
and
seems
his
adoption
the
on
perated
message
to a London
regulation on friend, he is understood to have
other
accumulated
investment
income
(i. e.,
net
income derived from, dividends
and
interest received)
should
be declared as extra dividends
securities
of
the
Woods.
Seen From London
follows:
as
done
Chancellor
as
used some words to the effect that
"If I had to deal with the U. S.
put of net
Government only, the matter could
profit derived from the sale of
this point
year,
wage
the
to
since,
-
than
Government wage policy, effective
known to
They include
agreements^
from
had been subject td
as
a
cost item by
are
those investment com¬
time describes the same as
"
are
con¬
►
are
state
registration statements.
of
the investment income, if
all the Bretton Woods agreement on
7 the regular dividends paid dur¬ the ground that it would outlaw
panies which provide a number
ing the year do not exceed in bilateral and regional
of
different
funds
under
one
sponsorship, and also on the gen¬ 7 the aggregate the income de¬
Government Supporters of Plait *
rived from investments during
eral problem of switching for the
the entire year, including any
'? It would not be easy to name
purpose of commissions. 7 An in¬
undistributed balance of such any member of the Cabinet who
terim report was submitted by our
investment ' income ? that
may
is strongly in favor of the plan.
Committee following that meet¬
have been left over from the
But Mr. Hugh Dalton, the Chan¬
ing.
preceding year.* :
7 cellor of the Exchequer, with an
The attention of the Committee
7; "No sales literature or reports eye on the foreign exchange posi-7
was
directed to the tendency of
7 shall be used which are incon¬ tion, which is his immediate re-'
investment companies in prepar¬
sistent with the foregoing."
sponsibility,
and
Sir
Stafford.
ing sales literature to stress the
The
foregoing
matters were Cripps, who as President of the
amount of dividends paid in past
scheduled for discussion at the Board of Trade has shown signs
periods without clearly pointing
open meeting of the Committee at of favoring multilateral trade,, are
out, in every case wheye distribu¬
this. annual convention, as were believed to be supporting it.
As
tions were made of capital gains,
certain other items including the for Mr. Attlee, his great concern
that such distributions were a re¬
requested modification of regula¬ is to avoid a breakdown which,turn of capital and not income.
tions
existing in certain states apart from causing bad feeling;
To further encourage the investor
between the two countries, would:
to
regard such distributions as prohibiting the purchase by in¬
vestment companies of securities lead to a temporary decline in the
regular income,
there is some
where the issuing company has standard of living in Britain, and
tendency to pay capital gains dis¬
been : in existence less than three
might interfere with the success
tributions quarterly or semi-an¬
years.
It has been proposed that of his Socialist experiment. 7//H
nually without knowing whether
investment companies be permit¬
It now seems that opposition to i
the net result for the year from
ted to invest up to 5% of their the ratification of the
agreement
the sale of securities may be a
assets in such securities. 7rf v
>
is likely to be much less fierce
profit or loss.
An investment
The Committee notes with par¬
than
was
expected.
It will be
company,
especially in a rising
market, can easily establish capi¬ ticular regret the resignation, ef¬ confined almost entirely to the
fective Oct. 6, of Paul Bartholet
Conservative Party. Whether Mr..
tal gains by selling a few of its
ah
securities to that end if it is so as Executive Director of the Na¬ Churchill himself will take
minded.
These gains must be dis¬ tional Association of Investment active part remains to be seeou
tributed
to
investors
to., avoid Companies, and the resignation of But if not, the fight is expected J:
his 7 assistant,
Lucile Tomlinson, to be led very ably by Mr. Ralph
Federal income tax thereon. When
and expresses its appreciation for Assheton, Chairman of the Con¬
distributed
: semi - annually 7 or
quarterly, they are very apt to be their able counsel and coopera¬ servative Party and former Fi¬
nancial Secretary to the Treasury,
regarded by the investor as "reg¬ tion on problems of mutual inter¬
est during the past year.
who had relinquished that post
ular dividends" indicating a high
because
he found himself in a
;'7,- Respectfully submitted,
yield.
It is then much easier for
John F. Hueni, Chairman, Mich¬ minority of one at the Treasury as
the dealer to sell the investment
company's shares.
It is of the igan; Harold Johnson, Nebraska; an opponent of Bretton Woods.
utmost importance, therefore, for Edward J. Samp. Wisconsin; John His former chief, Sir John Ander¬
Wilson,
Georgia; Simon M. son, himself is expected to show
investors to realize the nature of B.
some
lukewarm resistance, after *
these distributions.
If they do Sheldon, New Hampshire.
which
The
not the end.
eve
the Foreign Secretary, Mr.
Bevin,
who is strongly opposed to a re¬
,
recent amendments
the
•
regional conference in Chicago on
May 23 and 24 of this year.
In
sented
negotiations
on
clusion, the attitude of, various
political circles towards it is be- :
coming clearer. Several members
he
'V'v.>V):1'/
Committee held
investors.
"It seems reasonable to assume that by enhancing the
prestige of the over-the-counter market, the new registration requirements will act as a stimulant to the mar¬
ket and thus promote the interests of members and their
employees."
•/
.
v.
The Investment Company Committee of the National Association
Commissioners issued its report on Nov. 16 at the an¬
7
tional
"
j The enormity of this invasion of private rights is stag¬
gering and beggars belief.
.
the
be against the plan.
of Securities
are
HERE IS COMPULSION IN ITS MOST NAKED FORM,
y
Deceiving Investor Regarding Income Return.
v
istration provisions
limited to
here beyond
'7: ,71' 7. > '•■„ ' •; • '■ 7 :y''
of the Government
investment companies to stress
practice?
.
that
believed to be
(Continued from page 2571)
of Securities Dealers.
Company
measure.
.
overwhelming
it.
m a
passed with an
j o ri t y; there
only two votes cast
were
In all
agaihst
probability there will be
a dozen Socialists
against ratification
when it comes before the House.
less
than
half
who will vote
Thus, the acceptance of the agree¬
ment by the British Parliament
by
an
overwhelming majority may
be considered
sion.
a
foregone conclu¬
.
.
yolume 162
THE COMMERCIAL & FINANCIAL
Number 4442
CHRONICLE
261 f
lr-;
(Special to' THE FiNANcur'CHnoNicLE)
J. Arthur Warner & Co.,
Building,
(Continued from page 2575)
jY, (Special to The Financial
'
(Special
Chronicle)
to
to
The
Financial
Glenn
has
&
Co.,
Building, after
I}.: S. Army.
I
W.
serving
R.
Biggs
to
LOS
is
Y\;v:
;
The
Chronicle)
Financial
lins &
CALIF.
with G. Brashears
510 South
j
-
&
Sons, Inc., after serving in
(Special
CINCINNATI, OHIO — John O.
Fuerbacher has rejoined the staff
Walter, Woody ; & r Ileimerdihger, Dixie Terminal Building,
H.
fornia
Lary
Co.,
is
PORTLAND,
with
650
to The Financial
Arnold
ME. —Gilman
has rejoined the
of Timberlake
&
after three years' service
in the U. S. Navy.
■
Spring- St.
.
(Special
j
Financial
McGuire
has
become
Horner
Savings Build¬
Sdn: Diego, Calif.
He was
formerly with Witherspoon & Co.
affiliated
Financial
Chronicle)
POFtTLANDX ME.—Magnus
C. Krams is with Hope & Co.,
ing,
E.
Nib
(SpeciaJ/to
San Diego Trust &
Chronicle)
O. —Donald
Chronicle).,,.,
Financial
LOS ANGELES, CALIF.-^Syd-
ney
The
to The
is
againN with
Warner & Co.,
after
J,
H.
Arthur
Chapman Building,
in' the U. S. >Air
Force for the p£st four years.
.
serving
with Otis &
Co., Terminal Tower
Mr, McGuire" prior to
Building.'
serving in the
armed
with Otis & Co.
forces
'-
•
(Special
!
to
The
CALIF.—John
Slayton & Co.,
C. Schulte is with
Inc.
'< - 7
(Special
LOS ANGELES,
was
-
Chronicle)
Financial
(Special to The Financial
Chronicle)
(Special to The'
I COLUMBUS,
OHIO—Frank C.
Thomas has rejoined the staff of
the
First
Bank
financial-
Corporation,
Building, after
ated
with
to
The
Financial
Chronicle)
Edgerton,
(Special
f
Fetters
Thomas
Brown
•1
'
has
become
been
in
the
U.
S.
ville
COLO.
—
James
to
The
Financtal
DETROIT,
Welzen-
with
West
210
C '
'•
-
to
the
to
McRae,
449
The Financial
LOUIS,
is
Chronicle)
y
with
Living¬
Y-.yYyY
Financial
MO.—Edward
with
John
R.
L.
Kauff-
Co., 506 Olive Street.
^IHancIal Chronicle) ' ^
-(Special to The
V
nected with
Landreth
Scherck, Richter Co.,
Building,
with
was
Rohan
Mr.
firm
the
has
Harris
past;
serving in
in
the
been
the U, S. Army.
(Special
;; ST.
to The Financial
LOUIS,
Johnson
'-Y
.
George D. Hansen, and Ronald H.
Ross
with Slayton & Co., Inc.
are
Financial
mond W.
Building.
&
to
Wilson
the, staff
of
has
J.
has
become
M.
associated
(Special to The Financial
:
ST.
chroniclei
LOUIS, MO.—Margaret E.
(Special
to
The
Financial
MILWAUKEE,
Frissell
has
staff
Slayton
of
been
Pine.
added
^
\.
,,
'■
to
(Special
Pillsbury
Lewis
is
again- associ-,
to
The
Financial
...
,
ST.
PAUL,
MINN.—Keith R.
has rejoined the staff of
Gilmore
&
Co.,
"
Inc.,
Endicptt
R
-
(Special
to The
Financial
(Special
to
The
Financial
(Special
•
to
FRESNO,
Wright
&
is
Financial
:V
(Special, to The Financial Chronicle)
j
CALIF.—William
connected
with
F.
The
Financial
with
St.
Rohert
Coburn
&
She
y'v
C.
& Co.,
formerly
Buell
&
Co.
chael ?
of
The
Financial
U.
>•
Chronicle)
to
The
&
■
HARTFORD,
Chronicle)
CONN.
—
Marcus
N«. Mitchell has rejoined the staff
of Putnam & Co., 6 Central Row.
land
A.
Darling
Ileagerty
months
the
after
hostilities
in;; the
holds
nearly
under
ounces
construction
Re¬
the
Corporation
than 400,The silver is used
more
ounces.
bars located
bus
475,000,000
and
Finance
slightly
000,000
and
lease
magnesium
after
to
in
aluminum
through¬
in the War
out the country and
Department's atomic bomb plant
in-Tennessee.
Y
-
the
For
(Special
reasons
to
...
,
stated
The
above,
Chronicle)
Financtal
FRANCISCO,
CALIF. —
Lansing and James F.
C.
have
Financial
in the
become
North
affiliated
Securities
American
with
H.
Co.,
W.
(Special to The
to The Financial
Chronicle)
Mr. Lansing
Financial
Chronicle)
was
,
san y
the
with Daniel
F.
,
.
to The Financial
(Special
to
The
Financial
Chronicle)
-HARTFORD,
CONN.—Alexander
T.
Rydel
has rejoined
the
staff of Brainard, Judd & Co., 75
Pearl Street.
PASADENA,
Chronicle)
K.
Cook
Co.,
'
Y
-
East
Montgomery St.
to The Financial
SAN
calif.
FRANCISCO, CALIF.
Riley, Jr. has joined the
staff of Greenwood-Raggio & Co.,
Russ Building. He was formerly
with
k
John
(Special
D.
Stern
SAN
*
ron
&
&
Co.,
Chronicle)
Ray¬
Green St.
to
The
Financial
FRANCISCO,
JOS^!,
CALIF.
—
:
to The Financial
FRANCISCO,
W.
Jr.,
Chronicle)
CALIF.—
Buechner,
Donald
Paul
H,
B.
SCOTTSBLUFF, NEB.—J. Mcthe
staff of Boettcher &
Seventeenth
Co., 828
St., Denver, Colo.
Chronicle)
WIS. —Richard
O.
Ballschneider
has
rejoined
Heronymus & Co., Second Na¬
tional
Bank
P.
to
Building.
The
Financial
Chronicle)
TAMPA, FLA.—Thomas D. Rol¬
lins is with Herrick, Waddell &
Co., Inc.
Y;y;k.:>k •
•
-.'--Y'
Coyne,
and Eugene H. Ratto have become
(Special to The Financial
.
associated with Walston, Hoffman
&
Goodwin, 265 Montgomery St.
Coyne was previously with
Barbour, Smith & Co.; Mr. Ratto
Mr.
Bankamerica
Chronicle).
to The Financial
dlebrook, 49 Pearl Street.
Wilcox Building.
Northwest
Co.,
TAMPA, FLA.—Henry C. MacDonald
has
to
the
staff
Herrick, Waddell &
Co.,
55
of
SAN
ing.
FRANCISCO,
A.
Lomasney
Chronicle)
CALIF.
is
been
added
Liberty Street, New York City.
(Special
(Special
Wulff-Hansen &
Pacific
Co.
Chronicle)
PORTLAND,
the
also
The
from
to
The
Financial
Chronicle)
OHIO —Guerdon D.
joined the staff of Col¬
TOLEDO,
—
with
Co., Russ Build¬
Smith has
lin,
Norton
Avenue,
&
after
armed force?.
of
The
an¬
Christmas
the
said:
'
Christmas
of
use
■
<
Club
checks this year shows a decrease
of
2%
be applied to Victory
permanent
savings
and
urged,
anti-infla¬
tionary purposes. A recent cross
section survey indicates the esti¬
to
Bonds,
Government
mated fund of
$550,000,000, will be
by the recipients approxi¬
mately as follows:
; ■ 1
:
• ;
used
.
25%
savings—.
Bonds
Victory
$137,500,000
'
'
99,000,00®
11%
premiums
retirement
60,500,000
10%
8%
55,000,000
44,000,000
27%
148,500,000
—-
Taxes--
;■;.
Christmas purchases.—
Unclassified
1%
5,500,000
100%
.7'
$550,000,000
In the distribution of Christmas
this year,
funds
Club
New York
with
States
$152,000,000;,the estimates
Pennsylvania
$62,000,000;
$54,000,000; for
are
for Massachusetts
New
of
Chronicle)
CALIF. —Lee
Gilvrey Powell has been added to
(Special
(Special
SAN
Myron
CONN.—Richard
Club
increase
an
over a year ago.
nouncement
$42,00,000;
Jersey
New
York's Metropolitan area will re¬
ceive about $94,000,000. The Bank
Building.
SHEBOYGAN,
Chronicle)
Co., De Young Building.
with
HARTFORD,
Chronicle)
shows
year
600,000
for
&• Co.
to The Financial
Llewellyn J. Reese is with Wald-
with
(Special
Financial
year.
this
—
(Special to The Financial Chronicle)
Chronicle)
T.
T. Meskell is with Coburn & Mid¬
The
last
compared with $70
The total number of
as
individual members participating
America
N.
&
T.
A.
S.
Co., '508
serving
Madison
in
the
has
$9,500,000 for almost 100,000 mem¬
in
rolled
New
The
California.
000,000
(Special
ORE.—Robert J.
Albrich, formerly with Ferris &
Hardgrove, has become associated
(Special to
per-member
average
mately $72
the Manhattan Company has
Rice
mond B. Jarecki has become as¬
sociated with Reagan & Co., Inc.,
575
The
distribution increased to approxi¬
bers
300
Frederick
—
day.
about
been added
Waldron
of
staff
has
(Special to The Financial
CALIF.
for¬
.
CALIF.
and represents a high
the year of the bank holi¬
year
; '
1
•
last
since
Co., First National Bank Building.
Co.
Granbery,
Yy
francisco,
Christ-
corporation.
The
total distribution is 10% ahead of
—
(Special to The Financial Chronicle)
Francis
ap¬
a
State leads the other
(Special to The Financial
Co.,
Edgerton, Bourne &
■
; /• r;' /
is
Club,
'
FRANCISCO,. CALIF.
to the staff of Schwabacher &
connected with
&
mast
Edward M. Jones has been added
to
FRANCISCO,
members by
founder and President of
Debt
H.
Theatre
about
Puncochar is with H. Irving Lee &
Co., Roney Plaza Hotel, Miami,
(Special
with
slated for dis¬
7,600,000
was
proximately 5,000 banking and
savings institutions and other or¬
ganizations during National Pros¬
perity Week, starting Nov. 26, ac¬
cording to an estimate given out
on
Nov. 7 by Herbert F. Rawll,
Insurance
BEACH, FLA.—William
Barber
Fla.
is
Florida
$550,000,000
in the past was with Bankamerica
SAN
j
Beginning Nov. 26
Permanent
Co., Russ Building.
SAN
CALIF. —William
now
Make Distributions
fornia
West
55
Christmas Club To
,
with
De Young
(Special
Earl
The
&
ad¬
report to
Geo. D. Roberts is with First Cali¬
Chronicle)
serving
■
plants
has. rejoined
(Special to The Financial Chronicle)
J
&
six
of
FLA.—Le-
Building.
S.
-%: •;;i ■
PALM
Financial
U.
CONN.—Mi¬
.
Stephenson,
Leydecker
1404 Franklin St.
He
Co.
Street, after
serving in the U. S. Army. /
Y;
Financial
Company,
Street
(Special
merly
Pearl
outstanding and .which will
terminate
cessation
'
BRITAIN,
OAKLAND,
;
Real has rejoined Kennedy-Peter-
(Special to The
the
S. Navy.
soh,
75
in
He
t
G. ; Varhol
Sweeney
Main
and
Middlebrook.
.HARTFORD, CONN.—Bruce H.
Inc.,
staff
Chicago, 111.
been
H. Purcell is
*'(Special to
the
PETERSBURG,
SAN
(Special
Chronicle)
was
Salle Street,
NEW
Madden is with Fahnestock
Pearl
rejoined
Blyth
HARTFORD, CONN.—Helen F.
75
has
recently
Army. '
Co., Inc., Rowell Building.
(Special to
ST.
MILWAUKEE, WIS.—Albert W.
!
Master
has
Chronicle)
now
600 Market St.
Holley, Dayton & Gernon; 105 So.
The
necessary, of two leases which are
(Special to The Financial Chronicle)
La
'
.
Co., 144 Endicott Arcade.
'
1
*
,
and
reconversion
production and, accordingly, au¬
thority for the Treasury to sell
silver to industry would greatly
assist in the adjustment from a
wartime to a peacetime economy.
With respect to leases the Bill
would
permit the. extension, if
ST.
Chronicle)
DETROIT,
MICH. — Alfred
Towns has been added to the staff
of Wm. C. Roney
&
Co., Buhl
Building.
■
with
Chronicle)
waukee
firm.
.»
!
this
of
to
nold,
been
Sincerely yours,
FRED M. VINSON,
Secretary of the Treasury,
Company and Edgerton, Bourne &
Co.rk-- Y: ;;-7;:',/. •••
1
*'
enacted. )
Committee.
Club
Horace
PAUL, minn.—Karl D. Ar¬
having completed military
service,
has rejoined
the
Mil¬
with the
to
,
Chronicle)
ated with J. P. Lewis & Company,
735 North Water Street. Prior to
was
submission
your
Christmas
!'•••••-•
be
en¬
408
military service he
vpETROITy MICH.^-Joseph Tirri
Bill will
1508
imports of silver will
sufficient
McCone
John
—
the
'k
of the
S
tribution
the
Inc.,
Co.,
&
1
Chronicle)
WIS.
that
Department has
vised by the Bureau Of The Budg¬
et that there is no objection to
satisfy the de¬
mands of industry for a consider¬
able period of time.; A shortage
of silver for industrial use would
•
Kalmati
Co., 807 Marquette Ave.
to
Treasury to continue
selling silver to American indus¬
try for manufacturing uses.
It is
unlikely that domestic production
be
mends
recom¬
the
in
added
Goldsbury
made
States."
Enactment
formerly serving in the U. S.
Navy.
•
•
*
■;
:
Building.
IS with Slay ton & Co.,
Inc., Ill No.
Fourth Street.
United
holds
—Ray¬
been
is
Oct.
of
26, 1945 re¬
report of S 1508 a Bill
a
:—i—*
—
Treasury Department
The
"to authorize the'use by
industry
of silver held or owned
by the
ment
Chronicle)
MO.—Francis
Chronicle)
W.
Secretary Vinson's
reference
letter
SAN
The
to
! MINNEAPOLIS, MINN.
E.
to The Financial Chronicle)
Further
your
able
—
Green follows:
My dear Mr. Chairman:
v
with Fulz-Schmelzle & Company,
Boatmen's
Bank
Building.
He
| LOS ANGELES, 'CALIFGeo.
(Special
serv¬
Sen.
present war.
As proclaimed by
the President the War Depart¬
was
Chronicle)
25, p.<S>
the maintenance of high levels of
R ST. LOUIS, MO.—Berney Har¬
ris and Joseph E. Rohan are son-
CALIF.—Ed¬
k:;r—
The
to
McKeon
mann
Mr.
Earl W. Mel¬
associated
Ernst has been added to the staff
Morel and
&
Co.,
Penobscot
| (Special
:
H. Andersen, Geo. W. Briggs, Jr.,
David H. Cook, Victor H. Gould,
of
He was formerly
ing in the U. S. Army.
'
v
-
■
Co.,
&
ANGELES,
are
(Special
Chronicle)
MICH. —Fred
added
E.
-;.//■
■<
•
T.
Building.
(Special
M.
become Affiliated
Lester & Co.
Causey
has
become
associated
with Peters, Writer &
Christcnsen,
U. S. National Bank
Y
Anne
Ke'mp
r ;
(Special, to The Financtal Chronicle)
'DENVER,
been
Lincoln
(Special
ST.
i-;
Chronicle!
stone & CoY; 639 South Spring St;
Mr. Melville in the past was with
1
'
and
ward D. Hurst and
Army Air
Force for the past four
years,
has
St.
.~,YY Y:.
Financial
(Special to IThb Financial Chronicle)i
LOSk
J.
associated
with Charles J. Rice &
Company,
First National Bank
Building. He
has
of
;
:
The
Seventh St.
(Special to Th» Financial Chronicle)
DENVER, j COLO.—Robert
to
bach have
Building, after serving in
Navy for the past three
years,..; ^
:; -A.;r ■;>; ---i\ ■
Connell
&
Angeles, .calif.—John
los
J.
the U. S.
i*
Wykoff
'"
Corp.
./.%?
7y ;k
-DENVER,
COLO. —Glen
B.
Clark has rejoined
Sidlo, Simons,
Roberts
&
Co.;
First
National
Bank
■
Chronicle);',V
Co., 620 South Spring St. He was
previously with Boston Common:,
wealth
(Special
,
Chronicle)
MAINE —Nestor
Oct.
and
interfere
S.
Main
LOS ANGELES, CALIF.—Frank
D. McNaughton has become-affili¬
serving in the armed forces.
j
Financial
f
Cleveland
Huntington
text of
letter to
of silver and
staff
vj*
The
ROCKLAND,
1 '
1
to
2425
p.
the
The
questing
after serving in the armed forces.
to
22,
1952.)
L.
staff
Co., 191 Middle
Street,
Cali¬
First
South
Jr.
Chronicle) vV.
of
.CLEVELAND,
public a letter written to him by Secretary
Treasury Fred M. Vinson endorsing the Green Bill (S. 1508) which
period of Treasury selling of silver to industry be¬
yond the period limited under the present law, known as the Green
Act, which expires at the end of the year.
(See the "Chronicle,"
would extend the
Nov.
Co.,
Spring St.y'
LOS ANGELES, CALIF.—Flor¬
ence
WASHINGTON, Nov. 28.—Senator Theodore F. Green, Democrat,
^
of Rhode Island, has made
of
the armed forces.
—
i (Special to The Financial Chronicle)
.;
>
"A (Special
Treasury Secretary Writes Sponsor of Measure to Extend
Period of Silver Sales to Satisfy Industrial Needs.
:
,
PORTLAND, ME. —Robert H.
Gremley has rejoined E. H. Rol¬
the
'f
after
forces.
(Special to The Financial Chronicle)
witi^ Blair F.
ANGELES,
filiated
Trust
in
armed
Gerald P. Loomis has become af¬
Edward
Union
Chronicle)
Claybaugh & Co.
Chronicle)
rejoined
Rrockhaus
Financial
JACKSONVILLE, FLA.—Theo¬
dore
(Special
CINCINNATI, OHIO—Paul
The
Vinson OK's Green's Silver Bill
Chapman
serving in the
'
CINCINNATI, OHIO—Herman
Brumme is with A. E. Aub & Co.,
Union Trust Building.
Y,
(Special
Chronicle)
PORTLAND, ME. — James S.
Cousens has rejoined the staff of
Putnam & Co., 6 Central Row.
Personnel Items
f,
to The Financial
(Special
HARTFORD, CONN.—Albert T,
Putnam has rejoined the staff of
60,000
for
49
in
York.
$5,-
members
offices
in
en¬
Greater
Seamen's
The
of
Bank
Bank
for Savings
in New York City has
an
approximate total of $4,200,000; The Dime Savings Bank of
Brooklyn. $2,860,000; The Howard
Savings Institution of Newark,
N. J., $2,400,000; the Trust Com¬
pany* of New Jersey
$2,000,000.
About
15%
of the entire fund of
$550,000,000 will be distributed by
41 banks, each of which has more
than $1,000,000.
E. A.
Stephenson Has Y
Rejoined Chase Bank
Col.
Lt.
who
was
A.
Edwin
with
the
Stephenson,
Fourth
Corps
Headquarters in Italy, part of the
Fifth
Oct.
duties
Army,
18,
as
and
was
has
discharged
on
resumed
his
assistant manager of the
bond department
of the Chase Na¬
tional Bank of New York.
THE COMMERCIAL
>2612
No. of
Portfolios
Investment Company
(Continued from page 2575)J
Corporation, Commonwealth
Edison
Engineers
Public
Service,
the
preferred
stocks of Electric Bond & Share,
and Electric Power & Light $6
and $7 preferred.
Selectivity of
buying, however, was indicated
by the fact that five public utility
preferred and compo.Qn stocks and
bonds are included in the list of
securities in jyhich£S^es
inated: North American,
predom¬
co's
new
;
>
'
■
,
Third Quarter Sales
considerably
A
of
unanimity
4,700
19,200
3
-3;
degree
greater
action
of
3
parent on the sale side than on
the purchase side.
Deere & Co.
was sold by seven funds and pur-
■J.
i
-
!
3
3
f
by
•
;
.
Socony-Vacuum y: 3
3 •
purchased by
none,
and
Electric
Auto-Lite, Vw
Firestone Tire, General Motors,
^ 3^v. v
Greyhound and U. S. Rubber were
each sold by five funds and no
Chased
was
7,200 :
-1,700 :
2,500
1,700 6,500
: $400,000 -?
44,000
^
3
T
14,800
'•
3
ap¬
was
one;
T
sold by six and
.
| Mills preferred issue, and three
No. Of Funds
j
Holding
r
.
!/>!•!
21
•
19
Chrysler Corporation _!,!
Kennecott Copper
18
General Motors
19
-•
—
—
—_
--
E. I. duPont de Nemours
i,>17
Sears
16
Roebuck
16
International Nickel
15
Commonwealth & Southern $6 Pfd._
—
—
•
13
-
'Buying
.5
-
5
4
4
6,050'
73,000
3,700
41,100
3
5,400
:
4
.
,
■
3
34,500
3
3
2,900
9,500
3
'
3
*
'!
2,033
3
3
11,700
13,800
3
22,000
'
'
'
3
3
3
3
2,600
2,700
f 16,100
6,700
$350,000
13,600
3
.3
3
3
•
Johns-Manville 3Pfd.__
Johns-Manville Common
—
United Light & Railways.
•—
General Mills 3%% Pfd.—
Middle West Corp.———
C. I. T. Financial Corp_^——
Commonwealth Edison—!
j
American Tobacco "B"_———_ —_
Engineers Public ServicedKennecott Copper
Youngstown Sheet & Tube
R. J. Reynolds Tobacco $3.60: Pfd—
Crown Cork & Seal__
!
.
Dresser Industries
————
Emerson Electric
;!
Louisville & Nashville R. R._..
American Cyanamid ——_
'\'t
.
Allied Stores—
Continental
r
Funds
Shs.
American Viscose
11
Armstrong
11
—
Ohio Oil
10
1
,1
V
.
-
Standard
10
National
10
Phillips
Brands
Bank
City
Sold
,
7
■
6
,5
5
5
:
5
5
;v
4
4
'
4
4
20,000
6,300
21,300
1,202
10,800
14,100
4,900
a
4
13,600
.3
7,100
r3
•
3
3
•3
.
.
3
3
~
6,600
19,200
14,000
15,400
33,900
$439,000
...
-
Buying
September
8
15,200
General Motors..
♦
Chicago, Rock Island
4.3
4.9
1.2
4.9
! 4.3
'3.3
3.0
1.5
3.4,
5.6
13.8
0.7:
3.7
1.4
*
6,000
2
tute
....
.
_
Held
-
^$10,731,000
...
10,056,000
6,195,000
4,500,000
System
—
Hartford System.——
11,955,000
5,346,000
—j—■
745,000
& Pacific System——
7,600,000
823,000
733,000
;
I I.
*
tute
-
1
500
I®
2
2,300
2,400
5,500
10,400
Register...
Chrysler Corporation
3
United States Steel Corporation..
3
Montgomery Ward...
4
Foundries...!.
National City Bank of N. Y.__
Niagara Hudson Power.
Philadelphia Electric
F. W. Woolworth Co.
Pure Oil Corporation
Amer. & For. Pwr. (var. issues)..
...
.
...
u
of
Combined assets of
80%
amount to about $1,283,000,000 and consti¬
total assets of all broadly diversified investment
•
' \ '
■
•'
■' '
.
■!•.!•
30 companies
the
companies amount io about $1,283,000,000 and constl-.
the total assets of all broadly diversified investment
the 30
of
companies amount to about $1,283,000,000
the total assets of all broadly diversified
Combined assets of the 30
approximately! 80%
of
and consti¬
investment
Since the
30
and
curities,
bonds
might
in
policy of
funds included
study all follow a
investing
chiefly
in
stocks
other
common
equity-type se¬
the most widely held
September 30 were, as
be ; expected, ! mainly
on
those
of, reorganization railroads.
Twelve funds held Missouri Pa¬
cific
action are included.
the 50 stocks,
lists
II
Table
bonds with a
face amount of $10,731,000.
System
total
Also
•
(common
or
preferred)" which
were most widely held by the 30
-
Companies on September 30, 1945..
Table III lists the most widely /
held
bonds.
These have
been
grouped to include all
in the same System.
bonds with!
For exam¬
ple, the face amounts of bonds of
New York, New Haven & Hart- ■ :
ford System held by the 30 funds
includes also bonds of New Eng¬
land Railroad,
Railway
land
Central New Eng- >
and
Housatonic
..
?
,
Qualifications as to the inter¬
pretation of the statistics are always important. They do not necessarily reflect current manage- !
jnent opinion in regard to the se-curities mentioned; nor is it pos¬
sible to reflect in such composite
statistics the complete policies of , ;
the portfolios analyzed. The ma- /
jority
of
investment- company *
transactions take place in a wide >
list of issues which one or two
funds may buy or sell but which
do
not appear
in a tabulation
based upon composite action. The r,
50
stocks most widely held on
accounted for
the
31.2% of the total assets qf
30 funds on which the tables
based.
New York
included
held
in
were
the
10
most
widely
bonds of St. Louis-San
Chicago, Mil¬
waukee, St. Paul & Pacific Sys¬
tem, Baltimore & Ohio, New York,
New Haven &
Hartford System
Francisco
and
System,
Chicago, Rock Island & Pa¬
cific System.
Public utilities were
Associated Gas &
System, Cities Service,
represented by
Electric
/
Stock Exchange
Weekly Firm Changes
The New
announced
has
J
/
York Stock Exchange /
following
the
changes:
■
;7
.
•
Bertrand J. Fpley ^
to act as alternate for Harold W.
Scott of Dean Witter & Co. was •
withdrawn Nov, 10th.
;
: • .!!; !) •
Privilege of Edward B. Schnell to act as alternate for Joseph A. .
Meehan of M. J. Meehan & Co,
was withdrawn on Nov. 14th.
,
! Privilege *of
_
Privilege of Ramond J. Bechdol
to act as alternate for Geo. M. La
was
C.
& Co.
10th. Mr.
partnership
withdrawn on Nov.
Bechdol retired from
in the firm on
companies.
this
,
of companies which
number
Branche, Jr. of La Branche
companies.
_j.l!
Cash
80%
■
approximately
.
J,'
v^,
Combined assets 6f the
approximately
predominated. The
is
which selling
Face Amount
V
.:■>//
Light Company...
Electric Power & Light Company...
companies!
issues)!®..
Pittston Co
Paramount Pictures
12.1
American Power &
5
tute
Oil
American Steel
1.5 i
3.2
_
Elec. Power & Light (var.
Hudson Bay Mining
International Nickel
Philco
National
9.0
1.6
Cities Service Company.
5
United States Rubber
Sinclair
York, New Haven &
New
6
__
5.3
: 4.5
Francisco System
8
;
10.5
30, 1945
System
Chicago, Milwaukee, St. Paul & Pacific
Baltimore & Ohio Railroad———
Associated Gas & Electric System
10
./
took the same
1.1
•
8
....
companies of that type.
Table I shows separately those
securities in which buying and in
!
are
St. Louis-San
3,900
.
investments
portfolio 1 tabulations 1
prepared / by ' this
Association. C.
They are based upon an analysis
v
bf holdings on September 30, 1945,
and
changes, made
during the ;
third quarter of 1945, by the 30.
largest broadly diversified invest-: >
ment companies. Total assets of >
the 30 funds amounted to about/ ;
80% of the total assets of all in- .
only
10
Bought
Statistics v
attached tables are a con-»!
company
3.5
61.5
.
10
Shs. of
Par Value
Funds
'
-
1
Chesapeake & Ohio Rwy,.._
—
Socony-Vacuum Oil Co.—
North American Co
3
Electric Auto-Lite
Firestone Tire & Rubber...__
/
III
Missouri Pacific System—
Greyhound Corporation
$97,000
14,400
4
or
Third Quarter Portfolio
September 30, 1945,
TABLE
12
No
T
"•
Deere & Co
4,600
5
~
Security
^
62,800
6
4
'
ac~»
4.7
2.9
6.9
3,989,050
3,975,025
88,400
79,900
,
Name of Company or
1945,
0.6 'i
:>
Widely Held by 30 Investment Companies* on
Bond Issues Most
September 30,
pounted for only 31.2% of the to-*;
tal
assets of the 30
funds oh,
which the study is based.
'
bought or sold, rather than the
total number of shares bought or v
sold.
Only securities in which
three or more out of the 30 funds
,
—
*
Holding
26,000
36,800
90,500
20,200
5,400
4,100
16,100
6-
5
v
of
Petroleum.
*
The 50 stocks most widely v
on
determining factor in this case
4,401,938
No. of Funds
'
' Par Value
;
Selling
456,000
64,600
117,000
138,100
—>
York
New
400
10
288,610
111,900
Commonwealth Edison...
10
1,900
1,500
$161,000
13,000
/ 99,000
10
1,000
2,400
14,000
1,000
yvide list of securities which indi- I
yidually are neither held by a /
number of companies!
nor bought or sold during a short
period by enough companies to
appear in such composite tqbula!;
sufficient
Railroad..
— 42,300
10
.
10
.15,000
„
4.9
6,754,000
5,128,703
3,961,850
3,742,963
3,464,175
2,273,625
1,782,000;
.8,153,233
7,693,125
7,296,000
4,861,150
4,855,500
II 56,100
---
i...
Pepsi-Cola
...
Philip Morris^
...——
Middle West Corporation.f
United States Steel Corp..!
10
:
the
the
!
-
11
Which Sales Predominated
"
or
/
—
;>;!!
No. of
Railway
Cork
complete policies, of
the
1.6
1.5
11
11
tics
portfolio analyzed.
The major
part of investment company hol^-r
ings and transactions "are jn\ a
1.3
3.2
Pfd.
J j 122,800
Chesapeake & Ohio Ry.—
91,380
Hudson Bay-Minings
' ; 134,300
Sherwin-Williams
27,700
11
*
ppinion in regard to the securities fnentioned, nor is it possible to ?
reflect in such*'composite' statis-'
vestment
r
11.4
6,231,530
5,908,750
5,710,100
4,936,750
3,225,200
3,108,875
"■v.!
__
.
114,340
163,100
63,800
Ale—_
73,300
Corporation
f/ 119,000
Northern
Great
5.3
6,706,700
Canada Dry Ginger
11
1.9
6.7 >
8,591,000'
; 151,900
Greyhound
12,000
,
1.1
6,747,563
;
Oil
12
—
6.3
5.7
79,500
International Harvester...
12
V
1.3
! 187,600
12
4,400
f: 2.2
&
Electric
12
""200
>
&
—
12 :
PART B
Securities in
$5
\
•
C. I. T. Financial Corp.—
12
■
1,900
16,085
~
Manufacturers Trust Co. of N. Y._
1
Southern Railway.!—
! 1
Baltimore & Ohio R. R.(var. issues)
2
Allied Stores::
;
3
,
•'
Lt.
Westinghouse
Mfg.
V
Sold
158,200
'
~
Hercules Powder
1
Pan American Airways...!
J 1
Elec. Bond & Share $5 & $6 Pfd._
1
Elec. Power & Light $6 & $7 Pfd..
1
.
3
v-'
Par Value
136,200
$6 Pfd.
<
12
0.4
/V
435,550
Railways.
&
Pr.
Amer.
12
-
Funds
Selling
Eastman Kodak!
11,850
Deere & Company..
Shs. of
No. of
—
6,200
''
4,600 !
2,000
3 I
s
"
7,000
./>
B. F. Goodrich
Predominated:
Security
6,700
3,900
24,000
United Light &
12
u>
Bought
9
:4
i
Hercules Powder.....^
:
•
the
tinuation of previous
:
! 0.6 '
8,209,238
5,867,400
,4,888,350
>9,146,550
;
8,989,200
6,921,250/
169,700
92,400
.'!45,900
!._._;
General
Firestone Tire & Rubber..
12
Investment Companies*
•
Par Value > ♦.•"-.!•••
Electric
13
13
part a
Shs. or
JPunds
/
14
390,800
Johns-Manville
12
Third Quarter Portfolio Changes of 30
Securities in Which Purchases
No. of
142,000
14
I;®® v..table i
I; ,,/>!
Goodyear Tire & Rubber.;
,
y
sarily reflect current management
The
1.7
-
■!! 174,600
Company
Socony-Vacuum Oil—
•
and
Light.,•*
results
of
'
76,600
& $7 Pfd.
Elec. Pr. & Lt. $6
Texas
14
13
•
American Radiator & S. S.,
99,000
Pictures
Paramount
Light
&
Power
releasing
study, the Association emphasized
that the statistics do not neces¬
.
0.7
3.1
<
169,900
117,700
197,600
Oil
Gulf
14
'
6,750,975;
254,550
United States Rubber.
14
16,762,638
7,693,725
! 12,809,400
11,451,100
17,906,000
93,800
;
.
/Union Carbide & Carbon. :
15
5.5
19,950,000
11,666,550
41,800
289,500
.!
& Electric.:
Gas
15
-
15.1%
$35,296,925
10,271,100
9,959,269
9,590,625
:
J." 9,429,450
8,136,013
7,706,400
"i 10,532,500
® 9,341,100
6,203,950
;
5,810,200
5,138,625
$6 Pfd—
ern
:
American
15
285,000
189,700
133,700
;
182,100
173,100
i 61,400
127,900
183,700
93,800
-
In
*
Montgomery Ward .——.;
285,000
Standard Oil (N. J.)„.—i
189,700
Chrysler Corp. !_
« ! 133,700
Kennecott Copper
!
182,100
General Motors Corp
K 173,100
E. I. duPont de Nemours..!
61,400
Sears Roebuck..————! % 127,900
International Nickel
183,700
Commonwealth & South- !.
15
1,295,300
of Shares Held
1,295,300
North American Company;
standing
Stock Held
Market Value
!■ No. of
Shares Held
:
leld
% of Out¬
!
of Stock
Name
Holding
Electric
&
Power
American
ions.
y
.
. '
■ •• - ;
Held by 30 Investment Companies on
■
No. of Funds
Held
-
f " 2,800
n
September.30, 1945'!^:!! >!
"y'<
\v
of Stock
.
■'
-
No. of Shares
""
Montgomery Ward
1
Standard Oil (N. J.)„—
22
M-*'
■ :y
,
50 Stocks Most Widely
15
'•
North American Company—
22
;
Name
•!'
Stock
f-C'.j
!!-!!
: -V
:
;
..!:TABLE
,
Shs. of
.
'Par Value
!! American Light & Traction.!-..!.: • 2
!
were scattered among various in¬
\0:P22
bought; on balance, while sales
dustries, including steels, metals
-22
predominated in Chesapeake &
and oils. ®I"/!®®!/:!
21
Ohio common; which was sold by
19
six funds with no purchases re¬ ;
Securities Most Widely:Held
;
.'•19
corded, Southern Pacific common
The list of stocks held by the
and Northern Pacific bonds.
;
18
greatest
number of investment ':
17
! Nine funds bought the new pre¬
companies has not changed mate¬
: :
16
ferred
stock of Johns-Manville, rially in the past year. As of Sep¬
16
30 the
10 stocks most
four funds added the new General tember
15
widely held were the following:
•
1
3,000
V
•
.
Secuijity
Buying
Bought"
Anchor Hocking Glass.!.....—_ _. ;; ' ...—
Zenith Radio—i——
—
•
•
Armstrong Cork——
1
2,000
Lockheed Aircraft..—_. T V
10,000
Loew's, Inc.—!—!--tr——
1
4,000
Southern Pacific.-!
——* I V ~ 10,000
Twentieth Century-Fox Film.—.1
: 21,000
Continental OiL
1 /;
1,500
Goodyear Tire & Rubber.!—l.... .2,
2,200
Sears, Roebuck
—2
5,000
;Westinghouse Air Brake..!——.
2
3,500
Northern Pacific (var. issues)—!
2
$260,000
Buffalo, Niag.- & East. Pwr. $1.60- * ,'
;
2
13,000
'
.
9,500
1,500
3 ;
!
Electric
bonds, Niagara
Hudson Power, Philalphia Elec¬
tric, American & Foreign Power
bonds, and Buffalo, Niagara & purchases were recorded.
{
Sales predominated during the
Pastern Power preferred stock.
Louisville *&
Nashville
and third quarter in seven of the ten
securities which were most wide¬
Southern Railway common and
Baltimore
& Ohio bonds
were ly held on June 30. Other sales
Light
&
power
3
1
'
/
^0. Of -;
Funds;
'
:
Sold
:■
-
*
3
:
preferred. ■"
Par Value
.
3
purchased R. J. Reynolds Tobac¬
West
Middle
;
\.
Shs. or
.
Funds
Selling,
Thursday,? November 29, 1945
FINANCIAL CHRONICLE
&
Lee Todd retired from
L. Richard Kinnard
on
Oct. 31st.
ceased
in McGough
as
of Oct. 31.
,
retired from
Noel
:
M. Mc-
.
& Scl^uman
k
Interest of the late Anna
Gough
part¬
Boston,
partnership in Van Alstyne,
& Co.
,
~
the same date.
nership in Moors & Cabot,
Mass., on Nov. 15th.
-
Vo'.j'tne
THE COMMERCIAL & FINANCIAL CHRONICLE
Number .4442
•
2613
V,.
Significance of Labor-Management Conference
The labor-management conference
r
j Ss attempting to, fill
a very
in session in Wasmngton
now
ANACONDA
pressing need in the economic life of the
'
-
relations have changed
,
framework
nor
rapidly in. recent
the administrative^/",
..
•\ meet the new
.•
Trust
t
;
conditions has been
states the Guaranty
developed,
Co.
"The
of
in this country
and abroad,-pub¬
y
/
/
;
for
,
meeting is free
imposed time re¬
strictions, its deliberations could
hardly fail to be affected by the
'V
"Although the
•"■
critical situation
1.
to
in
ists at present in the field of industrial relations.The prospect
'
.
'
..
;
"Active
Its
chief
!
significance
lies
moment
the
.Federal
in
growing
tions.
its
different
another.
Shall provision be made
facilities and personnel to per¬
mit quick settlement of grievances
at the level" where they occur?
:. Shall both parties adhere to a
policy of responsibility for living
up to the letter and spirit of all
collective agreements and effec¬
tive
measures
to carry it out?
v'failed?
'
; ;
Essential Conditions of
!
■
*
;
that
structure,
treated
be
cannot
of
matter
Peace
"The questions of responsibility
for enforcement and of orderly
; a
-
if it
as
were
conference.
a
carried
reasonable
meeting
made
degree of success in
this
it will
need,
contribution
a
have
of outstand¬
and
if
scale that
strife
that
to labor
will
public
itself
will
occurs
in
be
interest
through
satisfactory
difficult to
legislation
the
collective
nomic
or
to
j
that
OFFICE
L.
board
Power
-
one
Treasurer:
of
been
business
November
will
books
be
not
23,
Company
(Wisconsin), at a meeting held
20,
1945, declared a dividend "of
one-quarter per cent (Wvc/c)
on
the
Stocic
of
the
Company, payable .bir
December
1,
1945,
to stockholders
of
the
of
as
for
1945,
1945.
A quarterly
7
dividend of 50 cents
C.
I.
T.
record at
on
per
business
November
ending
November
H.
BUCKSTAFP,
Treasurer,
PREFERRED STOCK
share in
FINANCIAL CORPORATION,
,
I,7 1946,
the close of
to
January 2, 1946 to stockholders of
stockholders oi
business December 10,
;
'
on
December 20, 1945.
; ;
record
r -
,
Year-end dividend of $.50 (fifty
/'
share
•
•
Stock
Common
the
on
cents)
has
a
been
declared, payable December 20, 1945,
share
to
of
will
.
COMMON STOCK
.
JOHN I. SNYDER, Treasurer.
November 21, 1945.
has been declared, payable
share
per
;1945. The transfer books will not close. Checks
.
cents)
Initial dividend of $.76 (seventy-six
the Common Stock
payable
Checks
of
quarter
"$4 CUMULATIVE
stockholders
of record
on
December
10,1945.
M. F.
BALCOM, Treasurer.
SYLVANIA ELECTRIC PRODUCTS INC.
be
Salem, Massachusetts
"■
r,
close
the
"
•••>..
v
Transfer
1945.
closed.
mailed.
.
>
States
Northern
and
5, 1945, to stockholders of rec¬
of the uncalled shares at the close of
ord,
of
DIVIDEND NOTICE
value
par
STATES
(WISCONSIN)
Preferred
Common Stock Dividend
i/- .;
:
will be mailed.
declared
NORTHERN
directors
November
on
NOET2EL
i.-i
OF
COMPANY
POWER
The
■
?formerly
•; iw. e. hawkinson,
"Secretary-Treasurer.
November^ 13, 1945,/
November 28,1945
}.
E. I. du Pont de Nemours
& Company
Wilmington, Delaware: November 19, 1945
AILIS-CHALMERS
;
G
regular
cents
teen
making
per
($0.15)
total
a
has
24,
fifty-five
of
Stock,
company,
cember
dividend
been
1945
declared,
:
-
13,
1945
A dividend of 50^ per share
cent on
value,
payable
on
De¬
The
record
23,
Board
oi
par
value, and
or two
teny
of
Cor-
($ .25)
:
share
per
stock
cember
31.
on"
payable
1945,
to
was
the shares
books will remain open.
dividend ot Twenty-five !
cents
capita
L. H. Lindeman
its
I
Treasurer
De-
stock-
.
%: holders of record at the close
of business December 8.1945.
PREFERRED
NUMBER
DIVIDEND
A
At
,
a meetinq of the Board of Directors
held November 26, 1945, a dividend of
one
dollar (51)
per
share
was
WOOD ALL
M. C. Roop, Secretary
39
X
Baltimore, Md.
INDUSTRIES, INC.
A dividend of 15c per share on
Common Stock has been
November 16, 1945
the
declared,
15, 1945,
declared
the Cumulative Preferred Stock
Convertible 4% Series A of (he Com¬
on
pany,
payable
business
THE DAVISON.CHEMICAL CORP.
February 1, 1946,
stockholders of record
at
to
the close of
record
;
payable
December
stockholders of
to
December 8,
■
M.
1945.
;
'
E.
January 4, 1946. Checks will
W. M. O'CONNOR
November 26,1945
Secretary
AMERICAN? LOCOMOTIVE COMPANY,
American Woolen
that
.
..
..
New York 8,
30 Church Street
N.Y.,
incorporated
PREFERRED DIVIDEND No. 150
225 Fourth
Ave.,New York 3,N. Y.
COMMON DIVIDEND Nos. 80 and 81
ATrectors of the American Woolen
a.meeting of the Board of Di¬
validity
of
.,
met by voluntary agree-
Preferred "Stock,
thirty five,
Stock and also
year
a
dividend
the Preferred Stock of $8.00
on account of arrears was
a
on
share
one
declared,
agreements
Americans
Dividends of
Company held today,
payable December 24, 1945
•
to stock¬
holders of record December 10, 1945.
Transfer books will not Close. Checks
will be mailed by
Guaranty Trust
Co.
of
agent,
N.
'
share
on
a
dollar seventy five cents ($1.75) per share on
on
(35^)
December
y., dividend disbursing
per
share
on
to
(25'*)
per
Company have been declared
holders of record
10, 1945.
the
the Common
end dividend of twenty five cents
the Common Stock of this
payable January 1, 1946,
ness
cents
Transfer
books
at
the close of busi¬
will
not
be closed.
•.'
F. S,
November 28, 1945.
CONNETT,
Treasurer.
November 27, 194S
CARL A.
1
GRIFFIN,
KSecretary-Treasurer. : *
be mailed.'
judicial interpre¬
practical
pef
dividend
an extra
both
poratiqn has dec ared a quar-
\
THE ATLANTIC REFINING CO.
Directors
Chemica
The Davison
1945.
Secretary-Treasurer.
,
Company and its
predecessor.
-
declared November 16, 1941
of The Texas Company,
payable on January 2,1946, to stock¬
holders of record as shown by the books
of the company at the close of business on
November 27, 1945. The stock transfer
w. E. HAWKINSON,
,
The Texas
<$0.55).,
Transfer books will not be closed. Checks
be mailed.
o/iV' .-V •
November
W. F. RASKOB, Secretary
"
;
will
;
173rd Consecutive Dividend paid
by
of 504 per share or two per cent on par
stockholders of
to
at the close of business November
COMPANY
share,
per
cents
:
the issued and outstanding'
without par value, of this
per share, upon
Common
/
dividend of forty
share, plus an extra fif¬
quarterly
<$0,401
10, 1946; also $1.50.a share, as the
end dividend for 1945, on the outstandng Common Stock, payable December 14, 1945;
.d stockholders of record at the close of business
on November 26,1945.
V
year
COMMON DIVIDEND NO. 86
A
THE TEXAS
a
of
Preferred
January
MFG. CO
cents
declared this day
$1.12-J4 a share on. the outstanding
Stock, payable January 25, 1946, to
stockholders of record at the close of business on
dividend
and
essenbal needs of the situation
discourage the use of this remedy. I can be
In the absence of marked changes ment."
"
December
neither
enforce,
bargaining
freedom
...
as
stockholders
of business
to
close
December 5, 1945.
may
unions, the
such
1945,
the
at
measures
to management,
nor
be
tation,
obvious.
been
Stock, $100
has
78
No.
21, 1945
$1.50 pet-
of
Commercial Investment Trust Corporation
7, 1945.
dollar ($1.00) per
one
Preferred
company,
that will be repugnant to the eco-
where
have
record
;
dividend of
Dividend
C.I.T. FINANCIAL CORPORATION
W. C. KING, Secretary
the
O
-
the
on
to be threat¬
now seems
the
ened,
assert
In
the few
employers have
through
legal
actions
recovered
December 20,
of
the
at
>
JNovember
quhrtferlyv dividend
,
the capital stock
Company, payable
on
Borden
record
public welfare; If it fails, and
industrial
long periods desire: For the sake of all con¬
of years
occupied by the pro-' cerned, it is to be hoped that the
ceedings and the amounts finally
,.
against
declared
The
Fifty Cents ($1.50)
stockholders of record
B.
City, Missouri
reguiar
on
ing importance to industrial peace
unions through
representatives or in their common names can be instituted only
in some States, while in others
the employer and the union have
no
rights of enforcement against
each other, and suits by employers
must be brought against individ¬
ual employees. The impracticabil¬
ity of such a procedure in most
is
If the meeting attains
r-referred,'TSerlds
COMPANY
LIGHT
&
,
20,
30,
November 27, 1945
;
concern:
requires of the labor-management
ployer. Although such agreements
are held to be valid and enforce¬
able contracts in most jurisdic¬
instances
of
Secretary.
PREFERRED DIVIDEND NO.
A
treasurer'-
record at ' the close of business!
December. 14, 1945. *
*
"
All persons holding stock of the company are
requested to transfer on or before December 14,
1945, such stock to the persons who are entitled
to receive the dividends.
r '»
H, C. DAVIS, Assistant Secretary
Corporation
a
ing adequate effect to this princi¬
ple are what the public interest
procedures for peaceful settle¬
ment are particularly crucial, for
it is in these matters that law
and administration
have lagged
farthest behind the needs of the
cases
OSBORN,
FOWER
CITY
N.
this
pro¬
"Agreements and proposals giv¬
tions, suits against
-
been
'
this
of
Allied Chemical & Dye Corporation
has declared quarterly dividend No. 99
I
'
,
stockholders--of
143
61 Broadway, New York
:
,
.
non
ROGER HACKNEY,
check
on
so
are
only to the
labor and management units that
are parties to it.
Industrial
Both legally and practi¬
cally, the enforcement of collective
bargaining
agreements is very
difficult, especially for the em¬
1
J.
Allied Chemical & Dye
.
calamity. When an industry em¬
ploys hundreds of thousands of
workers, and when those workers
are subject to a single labor lead¬
ership, so that the entire industry,
along with others dependent upon
it, can be paralyzed for indefinite
periods, a dispute in that industry
times.
:
stock
has
MFG. CO.
a
.
.
capital
share
a
No.
;
payable January
to
industries
December 1, 1945,
J
The final dividend for the
year 1945 :
of sixty cents (60<z) per share has
;l"
COMPANY
AIIIS-CHAIMERS
longed suspension of their opera¬
tions would constitute a public
needed to con¬
trol the actions of union members
and management representatives
who show tendencies to violate
J
Other
economic
What measures are
agreements?
DIVIDEND
of
of
large, so highly centralized," or so
strategically placed in the general
for
;
close
E.
::
,
dividend V
a
Stock pay¬
holders of record
able December 10. 1945, to
business
PETERS, Secretary
The Board of Directors has
tary arbitration when negotiations
for the renewal of a contract have
of
Cam
the Firht'Preferred, Series "6", Stocic
of
the Kansas City Power & Light Company
has been declared pqyabl^January 1V--T946,'to
'November 27, 1945
_
,
)
"
B.
cash has been declared
public- interest in indus¬
relations, however, f is not
confined to the railway and pub¬
lic utility fields. Some industries
are
so
essential to public health
and welfare that, as a matter of
practical necessity, they must be
kept operating in one way or
adjured for other purposes
the agreement is in force?
provision be made for the
early use of conciliation, media¬
tion and, where necessary, volun¬
>
close
the
.
Tne
(Tt®
DOLLAR
the
HERVEY
trial
Shall
*
the
"The
agreement
while
j
at
Kansas
Company, payable. December 22, 1945, to stock¬
holders of record at the close of business on
10, 1945.
The stock transfer books
of the Company will not be closed.
■
>
.
The Board of Directors- declared
.of $1.25 per share on the
First
Protecting the Public Interest /
but
,
SALT
ONE
on
/V:;;
.
an
at
close of business December
ho-lockout
of
of
declared
to common
lic utilities/
agreements—that is,
$hall the strike and the lockout be
reserved as weapons of last resort
Corporation
DIVIDEND
has
company
share
share on the Common Stock of the
Company, payable December 20, 1945,
industrial
relations in the field of vital pub¬
approach
this
"
of
be;
may
of
KANSAS
per
,
'there
holders
of
record
December ^, 1945."
December
a
that
Stock
payable January I, ia»o, and a
dividend of 80c per share upon the outstanding
$25 par value Common Stock of this Company
has been declared payable January 1,
1946, to
SOUTHERN
COMPANY
of record
1945.
of One Dollar and
Act, which
special procedure to
be followed in: the settlement of
railway
labor
disputes.
It
is
recognized also in the program
for the present conference, which
declares
Preferred
ui-ciareu
WM.
Avenue, New York 17, N. Y.
dividend
the
of
btcu
MORAN, Secretary
the
reflection
standing
J. J- MAHER, Secretary
INTERNATIONAL
475 Fifth
A
been
this
at"
recognition
Anaconda
GREAT
6,
;
That; interest is recognized
prescribes
-
making
December
V
in the Railway Labor
strike very close
to the heart of the industrial re¬
flations problem as it exists today.
What procedure shall be followed
v in the adjustment of disputes and
grievances during the - life of < a
contract and in the negotiation
:
©f a succeeding contract?
Shall
contracts
include no-strike and
^unquestionably
the
ALABAMA
public interest in industrial rela¬
"
in
business
$
-
EaKLE
to stockholders
1945,
proposed legislation has been post¬
poned until after the conference.
Conciliation Service,"
"The Survey" continues.;i
r
If
f "Some of the questions proposed
*
A
in¬
of
the
dividend of
close of
business December 6, 1945
dividend of $4.50 per share on the
Ordinary
has been declared payable December 24
the
health,
consideration
'
150
oi
i
Johns-Manville;
'
Racine, Wis., November 27, 1945.
$1.75 per share upon the out¬
A
Stock
per¬
deemed
1945
York, N. Y., November 27, 1945. I
of $4.50 per share on the Pre¬
ferred Stock of The Alabama Great Southern
Railroad Company
has been declared payable
December 24, 1945, to stockholders of record at
Railway Labor Board, to aid
settlement
of industrial
are
Directors
Company
(Incorporated)
November"21,
Y.,
RAILROAD
agency," modeled
the pattern of
that
N.
of
on
dispensable
to
public
safety or welfare.-" * V. ~
Case
dividend
the
and services
wide differences of
opinion revealed by the; deliber¬
ations, there still appears to be
some
prospect that constructive
results may be achieved, partic¬
ularly in the fields of Voluntary
arbitration, >.. fact-finding
procedures and a strengthening of the
the
despite
a
disputes. The proposal, however,
goes
considerably V+. beyond
the
Railway Labor Act in that it pro¬
vides for compulsory arbitration
of disputes in cases where an in¬
terruption of supply would cause
severe
hardship to a! substantial
number of persons. This provision
would
be
applicable to public
utility services, essential
foods
such as milk, essential fuels such
as coal or
oil, and other supplies
permanently beneficial results
might have been greater if the
J conference could have taken place
in an atmosphere of less tension
and urgency. Yet there was rea¬
son to suppose that the pressing
r heed
for
agreement might call
forth broader concessions in the
interests of industrial peace than
X. would otherwise be made; and,
«
extent
some
the
that clearly ex¬
of
*
Federal
manent
from purposely
of
establishment
I.
DIVIDEND NOTICES
New
,
A
Relations
the
J.
'
Mining
THE
'
proposed Federal Indus¬
Act, now in the
hands of a Senate committee, calls
trial
Board
and
members
4,
C.
"The
.'?
biisiness and financial conditions
lished Nov. 27.'
their
over
representatives.
Guaranty
review of
monthly
Survey," "its
control
in the
York
of New
issue
current
CO.
Company has declared a dividend
of One Dollar
($1.00) per share on Its
capital stocic of the par vaiue of $50 per share
payao.e December HO. 19io, to nomers of such
shares of record at the close of business at 12
o'ciock Noon on December i,
~
:
,
,
.
MINING
DIVIDEND NO.
;
The
and neither the legal
" '
I -—r-—
years,
York
Copper
must rest primarily upon the voluntary assumption of responsibil¬
ity by the parties and upon their
hiachinery apparently needed to
■
.
;
poorly equipped to deal with the industrial disputes that are sure to
occur at such a time., Some of the basic factors governing industrial
5
New
COPPER
25 Broadway
-
.
'
The United States has entered the critical transition period
nation.
;
DIVIDEND NOTICES
DIVIDEND NOTICES
SLlSDBERG, Secretary
,2614
Calendar
price
Offering—The
be
NEW FILINGS
heads
whose
registration
filed less than twenty
statements were
,.'5
ISO.
•
YELLOWKNIFE GOLD MINES,
LTD., on Nov. 13 filed a registration state¬
ment for 1,000,000 shares of common stock,
par $1.
•
,
Details—See issue of Nov. 22.
Offering—The price to the public is 30
share.
Underwriters—John
Langs
principal underwriter. /*;,////'
named
.
is
1
issuance
for
served
rants.
,
•
.
of common re¬
exercise of war¬
shares
40,000
and
rants
upon
,
22.
Offering-1—The offering price to the pub¬
lic will be $30 per unit, a unit consisting
of one share of preferred and one share
issue of Nov.
Details—See
of
stock.
common
Tellier, doing
business under the firm name of Tellier &
Co.,- New York, is named principal underUnderwriters—Walter
writer.
F„
/'/ /\,X, '
'
CO. on Nov.
statement for $2,200,000 first mortgage and collateral trust
bonds due Oct. 1, 1975.
The interest rate
will be filed by amendment.
r>
>.
•
registration
a
22.
issue of Nov.
Details—See
.'
,
V
bonds- are
INC.,
lative
WASHINGTON GAS LIGHT
without par
Details—See
CO. on Nov.
change.
22.'//
$5
one
at
share
preferred stock pn basis
plus $1.10 for one share
through underwriters
share.
Company proposes to
unexchanged stock.
new
Unexchanged
$104
per
redeem
any
Sons;
&
Brown
Underwriters—Alex.
underwriting
the
group.
/ >■
!
&n Nov, 19 Tiled &
statement for 30,000 shares
cumulative preferred stock, no par
$4.50
WARREN CO.
-'/7";1 •"
"*''7 "■
value.
22.
of Nov.
issue
Details—See
will be
-/I///7 77/7'■
Offering—The price to the public
Corporation
Boston
heads the underwriting
& Co;, Inc.; Robert C. Jones &
and Robinson, Rohrbaugh & Lukens.
TUESDAY, DEC. 4
INSURANCE
Nov.
on
CO.
filed
15
OF
NORTH AMERICA
statement
stock, par $10.
registration
a
for 300,000 shares of capital
Details—See issue of Nov.
22.
Offering—The company is offering to its
record Nov. 30, 1945, sub¬
„
stockholders of
scription warrants to subscribe at $40 per
share on the basis of one new share for
each four shares held.
STORES
HOWARD
CORP.
15
Nov.
on
for 31,525
stock, par
$100 and 75,000 shares of common stock,
par $1.
The common stock fs being sold
by certain stockholders.
filed
statement
registration
a
shares
cumulative
of
Details—See
preferred
of Nov.
issue
22.
is offering the
holders of its 31,525 shares of outstanding
5Vi%
cumulative preferred stock the op¬
Offering—The
company
portunity to exchange their shares of old
preferred for the new preferred stock on a
share-for-share basis plus cash payment.
The initial public offering prices will be
filed
Becker &
G.
heads the underwriting
Co., Inc./
grouD.
7
A,
series
par
$50.
Building/ Pitts¬
Koppers
;7/'
burgh, Pa. 7
Offering—The
MARY
LEE
CANDIES, INC.,
registration
a
shares
of
common
on
statement
stock,
offering
4V2%
of
business
Subscription
on
before Dec.
The under¬
or
share.
purchase from the company
preferred stock as are not
; and
will offer them to the
will
writers
of
share
such
subscribed
1945.
10,
Dec.
on
rights are exercisable
21, 1945, at $50 per
for
public at $50 per share.
■
.
,.////,..;/
Proceeds—The net proceeds estimated at
a
maximum amount of $4,172,126 will be
funds of the company
the following pur¬
poses:
In order to diversify its products
the company intends to manufacture and
sell
domestic appliances such
as electric
stoves, refrigerators, and air-conditioning
equipment.
The manufacture of such ap¬
pliances will be located at the Hegewisch,
Chicago, III, plant.
In connection with
such intended manufacture the board has
already
authorized
the
expenditure
of
$785,000.
It is estimated an
additional
expenditure of $1,500,000 will be required
used
in
Nov. 15
79,228
The
$1.
shares
are issued and outstanding and are
being sold by certain stockholders.
Details—See issue
Offering—The
$7.87Va
per
of Nov.
price
The company anticipates
some rearranging of and additions to the
equipment of the McKees Rocks plant will
take place.
The board has already author¬
ized
expenditure
of
$185,000 1 for
such
for this purpose.
purposes,
$500,000
$900,000
and
estimates
an
additional
will be required.
Approximately
of the proceeds will be used in
to replenish the company's cash for
expenditure on Sept. 24, 1945, to re¬
the
then ^outstanding
$895,700 of
part
the
deem
the
to
public
is
Waddell
&
is headed by
Inc., New York.
group
Co.,
the underwriting
ALLEGHANY
registration
common
CORP.
statement
stock,
par
on
Nov.
for
16
filed
a
issued and outstanding and are being sold
by certain stockholders. These stockholders
are
W.
Allan P. Kirby, 600,000 shares; Walter
Foskett, 50,000, and Eunice M. Oakes,
50.000
shares.
Details—Bee issue of Nov.
22.
Offering—The price to the public will be
filed
by amendment.
Underwriters—The underwriting group is
headed by Otis & Co.
.
HAMMERMILL
PAPER
CO.
on
.
1.9
shares
stock.
Each
by amendment.
subscribe to
entitled to
each
for
The
share
underwriters
outstanding
offer to the
of
will
minority stockholders of the four trans¬
feror mills participating in the Maine Mills
plan.
The First Boston Corp. and Coffin &
Burr, Inc.,
together own individually
a
majority of the capital stock of Bates as
well as of the following four mills: An¬
droscoggin Mills, Edwards Manufacturing
has filed
Bill Manufacturing Co.
and
York
Manufacturing Co.
The First Boston and
Coffin & Burr are offering an undetermined
number of shares of common stock out of
the
Nov.
16
shares
have
agreed
to
pany
certain
dividend
rate
in
by
from the com¬
stockholders of the
above
the
plan
Bates
they
purchase
to
named
mills
underwriters
as
the minority
mills
ticipating
tion
which
Maine
which
mills
are
par¬
plan.
The
provides for the acquisi¬
or
its
sub¬
wholly-owned
sidiary, Bates Company, of the plants and
other
named.
Under
tractors
or
assets
the
of
the
plan the
underwriters
will
four
mills
original con¬
offer
to
ex¬
at
record
of
no
;
.
' '
.
v
filed
to
on
close
the
of
business
,
,
,
Federal
Btreet,
Address—1405/ Lbcyst
'■;/
proceeds
redeem
1,
Feb.
on
A-i.
1946,
(n-26-45).
O'SULLIVAN
>
used to
$1,897,800 of the
will
DAIRY
/
CORP.
PRODUCTS
N,
a
Y.
Business
the issuance of
stockholders. / /.
to
7://* ;>V^
■:///;;/!;/
be
registration
a
;;;• 7,
RUBBER
of
for
63,000
cumulative preferred,
5%
has
CORP.
statement
of common without par value,
processing,
of
lines
manufacture
or
distribution of diversified
Philadelphia Rapid Transit Co.
6%
bonds. - 'The total required, including
premiums where payable, but exclusive of
accrued interest, is $8,703,900. The balance
will be supplied from company funds.
(
and
dairy
Underwriters—Drexel
proceeds are to be
used,
together
with
company's treasury
funds, to redeem, at 105 V2 and accrued in¬
terest, the corporation's 3(4% debentures
due I960, of which $50,600,000 is outstand¬
ing.
The total redemption price of the
debentures, exclusive of " accrued interest,
Proceeds—The
& Co.
is
the prin¬
Underwriter, /.u
,,..r- ■/■ •
»
;-j
Registration Statement No. 2-6019. Form
cipal
S-l.
(11-21-45)..
POWER
CENTRAL
LIGHT
&
has
CO.
registration statement for 100,000
shares of preferred stock, par $100.
The
dividend rate will be filed by amendment.
filed
a
North
Address-~-120
Street,
Chaparral
Christi, Texas.
Corpus
Co.
and Lehman Brothers head the underwrit¬
'X^^X-jXXiiX
Offering—Central Power & Light' Co.,
Mass., proposes to offer the holders of its
Business—Public
-
-
,
\
^
utility.
include more than
and
6%
preferred
stock an oppor¬
:0'XX /7;7'7;/ /7;//7 l'/c
tunity to exchange their shares for shares
Registration Statement No. 2-6014. Form
will
which
group,
100
underwriters.
(11-20-45)*
'
of
the
registration statement for common
without par value, the number of
to be filed by amendment.
7/:';7
Address—North Chicago, 111. 7/■/"■'
Business—Development
and
refinement
a
shares
of
77->
metals.
rare
h
to
record
by
at the re¬
outstanding preferred
of
shares
demption price of $103 per share, and the
balance will be added to the general funds
the
of
be ap¬
These funds will
company.
possible acquisition of the
plant and facilities
now
leased by its
wholly owned subsidiary, Tantalum De¬
fense Corporation, or the construction of
additional plant facilities.
'
' .
Underwriters—Hallgarten & Co., is the
to
plied
the
r
7/7//
underwriter.
principal
s-l.
(I1-20-45).
filed
statement
registration
a
shares of common stock, par
of which 150,000 shares are to
offered through an underwriter.
Address—Northwestern Terminal,
apolis,
Minn.
and
1
Minne¬
.
Business—Line
cooling, heating,
of
ven¬
tilating, air-conditioning and related equip¬
ment. .'7■'
Offering—The price to the public is $4.50
share.
Application has been made by
corporation to list on the New York
Curb Exchange 350,000 shares of its com¬
mon
stock which is presently issued and
been made
additional
this prospectus.
underwriter
the
the
exercises
in full, the net proceeds to the
will be $562,500 less expenses not
exceed $15,000.
Of the proceeds approx¬
of
shares
new
pre¬
are to be
together with
treasury funds, to the redemption of the
outstanding shares of old preferred as shall
not be exchanged for shares of new pre¬
the
by
exchange,
in
issued
not
applied
>/;••//';*.//-,7V'/under
sale
Commission's
the
competi¬
and the names of under¬
amendment.
tive bidding rule,
writers will be filed by
Registration Statement No.
S-l.
2-6020. Form
(11-23-45).
CADMIUM
BATTERY
statement for 35,-
filed
CORP.
shares of capital
a
stock, par $10.
Address—Easthampton, Mass.
Business—Corporation was incorporated
In Delaware on Nov. 8, 1944 to manufac¬
ture and sell electric storage batteries.
Offering—The price to the public is $10
per share./;•/.' \
Proceeds—Of
the 35,000
shares regis¬
tered,
10,000 represent the
shares held
under option by six individuals, and the
company is offering the remaining 25,000
shares to its present shareholders and to
a
limited number of
others at $10 per
the
The company stated it
to
expect
sale
of
to
receive
the
has no rea¬
proceeds of
shares held under
option in the immediate future, so that the
gross
proceeds
will not exceed $250,000..
The
net
proceeds will be added to the
general funds of the company.
./ Underwriters—None.
The securities are
the
10,000
company
being offered by the corporation.
Registration Statement No. 2-6021. Form
to
S-12.
his option
imately $425,000 will be used for the pur¬
or to build a
factory and or office
etc., and the remainder will be
working capital.
The company
successor to
the United States Air
(11-23-45).
WELCH
chase
GRAPE. JUICE
building,
registration
added
of
is
to
the
Conditioning Corporation which primarily
engaged in fans and blowers resigned Jor
ventilating and cooling of theaters.
/
Underwriter
—
George
Breen,
.
-
F.
York, is named underwriter.
S-2.
(11-21-45).
New
.,■»
:
MANUFACTURING
BRUNNER
filed
a
shares
total
registration
of
common
CO.
statement for 100,000
par $1.
Of the
stock,
shares are to be sold
and 84,996 shares to be
15,004
company
certain
-7 /
stockholders.
Address—1821 Broad Street,
Business—Commercial
densing units
has
by the
sold by
,
Utica, N. Y.
refrigeration con¬
and air compressors,
.Offering—The price to the
share.
public is $7.75
per
Proceeds—Company will use -its portion
the proceeds for general corporate pur¬
poses.
The remaining proceeds will go to
the selling stockholders.
Valley Investing
Cooley & Co.; Inc.,
Inc.,
George
and Cohu &
R,
statement
CO.
has filed
for 20,392.8
of
-'■■/
22,
Sept.
on
1945/to
/
acquire
Rubber
assets of The O'Sullivan
the
Co., Inc., a Delaware corporation.
// ;
Offering—The price to the public will be >/■•'
filed
The underwriter will
securities at the following /
by amendment.
purchase
the
prices/ bonds at 95%, preferred stock at
$92 per share and common stock at $4.50
-// z;/
/':/"■•:/,/ :■/■; /.i/'//'././/
per 'Share. /
Proceeds—The
company
will
apply
Its
proceeds as follows: for the retirement,
at
with accrued interest of first mort¬
bonds issued by the Delaware com•
pany $249,000; for the retirement, at par
and
accrued
dividends, of 6%
preferred
stock of the Delaware company $125,000;
for plant additions and improvements in
Winchester,
$380,000,
and
for
working'?"*/
capital $295,500.
The net proceeds of the
sale of securities by Victor, amounting,;to
$261,000 will be used to increase its work¬
104,
gage
X.'.'-'X-:
capital.
ing
,
Underwriters—The
is C.
F.
underwriter ?
principal
Cassell &
Co., Charlottesville, Va.
The underwriter has agreed
to purchase
from the company 5,000 shares of commpn,
6,000 shares of preferred and $500,000 of
4%
first mortgage bonds,
and has als<j
entered into an agreement to purchase 58,000 shares of common from Victor Products
Corp.
v-
Registration Statement No. 2-6024. Form
S-l.
(11-26-45).
...
.
^
,
16
SUNDAY, DEC.
.
WOODALL
INDUSTRIES, INC. has reg¬
istered
100,000 shares of 5%
cumulative
convertible preferred shares, par $25. / ♦
Address—7565 East McNichols Road,
De¬
- ■ /
ac*i 7
company's pre-war busi*
primarily in the manufac¬
troit, Mich.
.
a
consisted
ness
assembly and sale of interior panfels
truck cabs and auto¬
trailers.
The company is in the
ture,
for automobile bodies,
mobile
reconverting
process
of
Monroe
plants
operations.
its
the
following
borrowed
;
1
/
,
the'public
by amendment..;
Proceeds—Net proceeds
sums
and
peace-time
•
Offering—The price to
for
Detroit
normal
its
for
■
filed
will be
/i-7 //"/•,'■ '.•{/itft/j
will be applied
(or to pay * off
purposes
such purposes
for
reim-»
for such
or
burse treasury for funds expended
$680,000 for acquisition of all
the
outstanding capital stock of Board
Fabricators, Inc., $438,400 for acquisition
purposes):
of
certain
merly
assets
owned
of
and
for¬
business
the
Industries,
Service
by
<
Inc..
$260,000 to organize a subsidiary to acquire
all of the business and assets of Service
Products Co.,
$220,000 to acquire buildings,
certain patents and
acquisition of all the capital
stock of Industrial Fabricators, Inc.
Any
balance will be added to working capital.
Underwriters—Paul H.
Davis <fe
Co.jis
named principal underwriter.; /
7
Registration Statement No. 2-6025. Form
acquire
$200,000
to
$305,150
for
S-l.
.7 /•//;,/.
(11-27-45). ■./■ ./
shares
DATES OF OFFERING
*
UNDETERMINED
.
20,392.8 shares of second
preferred tcre being offered to the holders
of common stock, at the rate of two shares
;
Offering—The
We
below
present
a
lisi
of
issues
whose registration statements were filed
15 shares of
common held,
at $100 per share,
Navajo
Corporation has agreed to purchase all of
the
unsubscribed shares at $100 without
second
preferred for each
twenty
days
dates
offering
mined or
discount or commission.
Navajo states
it will purchase the unsubscribed shares
for investment, and not for distribution to
the public.
or
are
but whose
been deter¬
more
have
ago,
not
to us.
unknown
any
proceeds will be« utilized
plant improvement/ tentatively pro¬
posed as follows: Grape Juice cold storage,
tanks and building $850,000, refrigerating
and processing equipment $450,000, equip¬
Proceeds—The
for
ment-to
than
process
grgpes
tomatoes- gnd fruits other
$300,000,
and
ALASKA
filed
improvement $400,000.
Underwriters—None
a
shares
Details—See
-
INC.
on
Oct.
31
100,900
issue
of
Nov,
*'"7
8.
Offering—to be filed by amendment. /
Underwriters—To
be
filed'
by
amend¬
ment.
AMERICAN BANTAM
18 filed
mentioned.
shares
Registration Statement No. 2-6022. Form
S-2.
AIRLINES,
registration statement fOr
common stock
(p^r $1).
of
general plant
(11-23-45).
a
of
CAR CQ. on Oct.
registration statement for 83,547
prior preferred stock, par $10,
and 375,971
shares of common, par $1.
Details—See issue of Oct. 25,
.
,7
;tha
Offering—Under an exchange offer
of
convertible
preference stock;
SATURDAY, DEC. 15
holders
Torrey.
Registration Statement No. 2-6017. Form
(11-21-45).
S-2.
Virginia
...
STATE
:
:
the company under: the name
Harrar &
Chamberlin.
The
was organized under the laws
of
Laing,
preferred stock, par $100.
Address—Westfield,
N. Y.
Business—Grape juice, jams and jellies,
etc.'
•
.'//
Underwriters—Mohawk
Co.,
purchase and wholesale dis¬
machinery, equipment and sup-
of
division
of
■
of
;
soling
second
of
2-6016. Form
Registration Statement No.
soles and
Business—The
registration
NICKEL
'
^
Underwriters—The shares will be offered
for
sold
77
' )/
.
plies used in the operation of shoe repair
shops, which business is conducted as' a
company,
ferred.
sons
sold under
of
underwriters
ferred
share.
to be
Feb.
preferred..
.
.
<
>
Purpose—The net proceeds to - be re¬
ceived by the old company from the sale
to
the
shares
not exchanged will be re¬
1, 1946, at $120 per share
stock
on
dividends, in the case of the
7% preferred, and at $110 per share and
accrued dividends in the case of the 6%
per
outstanding and application has
tolist
on
the
Curb
150,000
for
accrued
000
500,000
cents,
10
be
has
preferred
has
CONDITIONING
AIR
STATES
UNITED
CORP.
for
share
exchange offer will be in effect for about
ten days and that the
shares of the old
/;77/77/y:'-VV-£]
MONDAY, DEC. 10
a
competitive bidding.- It is expected the
at
-
Registration Statement No. 2-6015. Form
on
plus
new
deemed
subscribe to new common stock,
date, ratio and price all to be
amendment.
'*7/777/
Proceeds—Of the net proceeds, $648,076
will be used
to redeem all of the 6,292
right
the
concern
cash.
The dividend rate
preferred will be specified by
underwriters in connection with the sale
the
on
■-
Offering—Holders of record of the out¬
standing common stock will be given the
filed
Texas
new
basis
share
FANSTEEL METALLURGICAL CORP. has
heels,
>
;
'
also
tribution
all
WEDNESDAY, DEC. 12
will
ing
Business—Rubber
corporation
;
/
Address—Winchester, Va.
material,
Of the
58,000 shares are
outstanding and are being
of
net
be $53,383,000.
■ 7/7//I"///'/;./
Underwriters—Goldman,
Sachs
&
stock registered,
and
by Victor Products Corp.
$6,367,000
products.
Offering—The price to the public will be
filed by amendment.
issued
v",
pap $100 and
common
bonds;
filed
shades
6,000 shares
$500,000 4%.first mortgage bonds;.
Purchase,
—
7
Registration Statement No. 2-6023. Form
,
.
by amendment.
filed
Underwriters—None.
price
Offering—The
1945,
through
purchase warrants
24,
stock
transportation system.
to the public will
Business—Street
be
T-'
v
■
Business—Open-erid, diversified manage¬
investment company. '•'■/v/7
Offering —- Initial offering
of
123,411
shares expected to be made on or about
Dec.
Philadel¬
7
Street,
.•
• ;
—.
Boston,
/''!'/:////,/:, ::;.//
ment
000,000 first and refunding mortgage bonds
series B due Dec.
1,. 1970.
The interest
rate will be filed by amendment.
phia, Pa.
Dec.
on
Aug.
Address—140
Mass. ' ■;
statement for $7,~
registration
a
common
22, 1944, to' be registered
permit the re-sale thereof ' when i and
reacquired issuer.
> •/*',/
/ i/
as
PHILADELPHIA TRANSPORTATION CO.
has
par
In addition 34,113 shares already
15, 1945.
issued
first and refunding mortgage
to redeem on March 1, 1946,
$115,000 Philadelphia
Rapid Transit Co..
5% bonds and to redeem on March 1, 1946,
registration statement for $50,000,000 2%% debentures due Dec. 1, 1970.
Address—230
Park Avenue, New York,
Co.,
preferred
Me.
public at $25 per share all of the 256,500
shares not subscribed for by stockholders,
except
as
to
certain shares
offered by
tive
by amendment.
Details—See issue of Nov. 22.
Lewiston,
Woven
at a price to be filed
Dec.
The
—
Offering—The new shares are being of¬
fered first to the company's stockholders
Maine
stock.
Street,
bedspreads,
drapes,
drapery fabrics, upholstering cloth, etc, / /
registration statement for $5,000,000
3% sinking fund debentures due
1, 1965 and 15,000 shares of cumula¬
a
20-year
Will be filed
CO. has filed
registration statement for 256,500 shares
common stock,
par $10, t
/<
of
company's
SUNDAY, DEC. 9
NATIONAL
Proceeds—If
BATES MANUFACTURING
of
four
filed
777/7
/
•
Registration Statement No. 2-6012. Form
(11-19-45).
\,7
7
, ;
j)
.
S-l.
Minne¬
Building,
(additional)
stock purchase warrants entitl¬
and
4%
to
700,000 shares
The shares are
$1.
group.
&
$11-21-45).
,
Statement No. 2-6013. Form
(11-19-45).
First Boston Corp. and Coffin & Burr, Inc.,
WEDNESDAY, DEC. 5
of
/1/*'- ;/•/7/
Co. heads
5% debentures.
Underwriters—Kuhn, Loeb
15-year
shareholder will be
"
share.
Underwriters—The
Herrick,
22.,
for
part
A-l.
Proceeds—The
•>
•
Registration
to
stock
common
Address—Canal
for
par
group.
\7':
.
is
company
the 85,955
preferred at the rate of
one share of preferred for each 11
shares
of common held of record at the close of
its
of
holders
Roanoke
apolis, Minn. 7//:'
V:;:/":•
Business—Open-end investment company
of. the-management type, 7 /
///.J
—
Inc., head the underwriting
stock,
stock,
Business
filed
of
Coffin & Burr,
filed
a
by amendment.
Underwriters—A.
assets
as
indebtedness.
Any balance will be
working capital.
Underwriters
First Boston Corp. and
a
and
Exnicios
part "consideration
those companies, and tb
York
has
INC.,
CO.,
added to the general
Parker & Redpath; Johnston,
Rolger, Nolan & Co., Inc.;
Goodwyn & Olds; Mackall & Coe; Ferris,
Co.,
the
registration statement for 85,955
shares of 4y2% cumulative convertible pre¬
filed
Lemon
Co.;
and
Edwards
group.
CAR
STEEL
PRESSED
Auchincloss,
&
able
A-2.
by amendment.
Underwriters—First
filed
•
new
cumulative
of
of
eld.
-7/777'
Underwriters—E. H. Rollins & Sons, Inc.,
heads
company
the
of
:*
-
shares
is offering 40,preferred stock to
the holders of its outstanding 40,000 shares
shares
pany's
addition, holders making the
'
:
issue of Nov.
Offering—The
C00
to Bates;
as
a
loan to com¬
subsidiary, Bates Company,: to en¬
the iatte^to.,make ..cash payment to
companies
change
preferred stock,
value.
gations of Bates to pay cash to Androscog¬
gin and Hill as a part of the consideration
for the assets
to be transferred by those
20,202
exchange will
receive a cash payment.
The underwriters
will purchase any shares of new preferred
not issued in the exchange and the shares
of
4>/2%
preferred not required for ex¬
stock,
ing the bearers to subscribe in the aggre¬
gate to said
123,411 shares of common
stock, to be given to issuer's stockholders
„
S-l.
to the holders of the outstanding
shares of 7% and 6%
cumulative
preferred stocks on the basis of one share
of new for each share of 7% preferred and
one
share of new preferred and $7.50 in
cash for each share of 6% preferred.
In
Address—200
shares
411
a
placement,
T".? 7 ■■'•// ■
$1,600,000 serial notes and $3,000,000 //'Offering—At market.
Prpceeds—For investment.
•
debentures which are not being offered by
Syndicate, Min¬
the prospectus. The aggregate net proceeds ../Underwriter—Investors
neapolis, Minn. /'• V /. X':X:XX. ,/-•/■/X -XXX.-V!;;
from sale of the stock, notes and deben¬
tures will be utilized to discharge the obli¬
Registration Statement No. 2-6018. Form
private
through
company,
is offering 20,preferred in ex¬
new
INC., has filed
MUTUAL,
INVESTORS
of
'
,
22.
Nov.
.
registration statement for 3,000,000 shares
capital stock, no par value.
of
of
company
company
the
of
shares
202
$100.
par
of
issue
Address—2500
registration statement for 40,000
$4.25 cumulative
the
PAPER
&
the
by
sale
256,500 shares is a part of the plan
financing which includes the issue by
ferred
v7; ;/;/•
by amendment.
14 filed a
stock,
preferred
Offering—The
minority holdings of stock in the
- /..
!;
pay off
used as
Nov.
on
.
to be of¬
fered for sale at competitive bidding and
the names of the underwriters will be filed
shares of
'
19 filed a registration
statement for 25,000 shares of 4V2% cumu¬
w
will be
Offering—The price to the public
filed by amendment.
Underwriters—The
BAG
ADVANCE
SOUTHERN
-
registration
SERVICE
PUBLIC
filed
of
for
s. D.
MAINE
Co,,
V';;//?.//
•"
MONDAY, DEC. 3
14
&
Evans
SATURDAY, DEC. 8
Details—See
CORP. on
Nov. 13 filed a registration statement for
40,000 shares 6 % preferred stock, $25 par,
and 40,000 shares of common stock, $1 par,
and 40,000 common stock purchase war¬
71
•
group.///////
Inc., Atlanta, Ga. heads the
CREDIT
MANUFACTURERS
/
A.
Underwriters—Clement
to. the
price
plus a cash payment.
The
public is $103 per share.
CO.,
per
William
/
Offering—The
company
is offering., to
holders of its $5 cumulative preferred stock
and
$7
cumulative preferred
the oppor¬
tunity to exchange their shares for the
new
shares on a
share for share basis,
CABOT
cents
22.
of-Nov.
issue
Details—See
SATURDAY, DEC. 1
'
on
registration
a
certain number of shares of Bates
mills.
Proceeds—The
CORP.
SERVICE
LINEN
statement Tor
30,000' shares of 4>/2% cumulative con¬
vertible preferred stock par $100 per share.
1
,
four
underwriting group.
filed
16
Nov.
f, -
■■
.
stock
Co., Inc.,
a
for
change
the
ago,
7
the
NATIONAL
grouped according to dates
on
which registration statements will
in normal course become effective, un¬
less accelerated at the discretion of the
days
will
Issues
of
Lift
public
the
to
filed
by amendment.
Underwriters—A. G. Becker &
•3^3=-
of New Security Flotations
STREET
INVESTMENT
has filed a registration statement
CORP.
for 123,-
will be offered
convertible
the privilege
of exchanging
preference for common on
the
Volume 162
basis
of
4Va
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4442
*
shares
of
for
common
stock
each
of
sh^re of convertible preference under Op¬
will
tion
shares
A.
Under
Option B they may ex¬
change
convertible
preference
for
prior
preferred and common stock on the. basis
of
share
one
,
shares
of
vertible
of
preferred
prior
each
for
common
and
share
In
V3
mentioned.
'
,
AMPAL-AMERICAN
CORP.
Oct.
on
;
filed
statement for 400,000 shares of 4%
ative preferred non-voting shares.
:
Details—See issue of Oct. 11.
priced, to
1
of
the
is
:
taken
not
by
its
>f
OIL
BANK
savings
CO.
ELECTRIC
ori Nov.
9
filed a
registration statement
$50,929,000 first mortgage bonds duet
1, 1975.
The interest rate will be
fixed by the successful bidder and filed
by' amendment.
'V>'" v;,
Details—See issue: of::':Nov..
for
Nov.
7.
June
'
Offering-—The
be
price
public
the
to
will
by amendment. •:
Underwriters—The bonds
will
be
sold at
competitive bidding, and the names ot un¬
derwriters will be filed by amendment.
CAMDEN
FORGE
CO.
-/
oered.
itock being
The shares regis¬
shares owned by
the
outstanding common shares
12 owned by -directors.
'..
of Nov.
issue
amendment,
curities
selected
be
to
except
[
a
registration
issue
of
Offering—Toronto
has
entered
into
registration
11
'
should
statement
sus¬
the SEC.
pending before
now
be
'
I,iiz
$1,25
per
holders.
Price
Canadian
will
is
offered
be
Should
the
expressed
in
Shares not
generally
to
money.
option
Mines Finance, Ltd.,
will make the offering,
Toronto
itself
The
cials
and
employees.
Oct,
31
liled
-
of
share
Nov.
,.
due 1975; 38,000 shares
preferred stock,
par
$100,
of common stock, par
shares
The
interest and
issue
Offering—The
filed
will
by
be
25
filed
of
D.
;
jt
heads
Co.
for
par,
and
par
$1.
The
ferred
OSAGE
VALLEY
filed
the
CORP.
convertible
class
of
OIL
stock
Oct
on
and
issued
upon
and
Offering—The price to
be: filed by amendment.
derwriting group.
filed
28
000
■:
-
behalf
registration
a
shares
of
issue
stock,
of
for
to
Underwriters—General
public
•
if
;■
Finance
Co.,
At¬
CO.
Sept.
28 filed a registration statement for 95,544
shares of capital stock, par $5.
;■
Details—See issue of Oct. 4,1 that
announced
on
Nov.
20,180
20 -company
would
shares
be
offered to stockholders at $10.25 per share;
shares
unsubscribed
time
within
3,364
shares
sold
be
may
at
any
at $10.50.
Additional
offered-in exchange for all
year
outstanding
stock
Proctor
assets
of
Inc.
u
Co.,
and
B.
A.
24
fpp-v
•;.
of
CO. on
-
public
¬
it
*ff
■.
165
Gil-
is
Broadway
LAKE
RED
filed
MINES, LTD.
registration
a
of
on
for
statement
capital
stock,
$1
par
fff
a
is
60Va
issue
United
cents
of
Aug.
States
Canadian
2.
E.
Barnside
&
filed
a
AIR
LINES,/INC.,
Oct. 29
on
registration statement for
determinate
number
of
an in¬
shares,
common
$1.
par
of Nov.
issue
i
'
8.
•
i
certain number of shares,
to be supplied by amendment
offered to stockholders through
subscription warrants, the price and ratio
.
the
figure
are
being
to
supplied by amendment.
The shares
purchased through subscription war¬
be
not
rants
will
ficers
directors
the
public
share.
per
shares
for
-of
at
sale
at
Employees'
$16.50 'per
Stock
the
of¬
corporation
offering price
total of 76,310
officers
share
Purchase
Stock
to
the
the
In addition, a
being offered to
are
employees
offered
be
and
and/or
that
Purchase
and
under
Plan
an
and
a
Plan.
the
is
will
issue
not
be
contemplated
underwritten.
Registrations Revoked
by certain stockholders.
price
$5.75 per share.
Underwriters—Van
heads
f
the
on
ment
filed
9
Noel
&
TELEGRAPH
&
registration
state¬
40-year 2%%
1985.
names
will be
amendment.
The company
to offer the boijds for sale at
poses
bidding
Boom
fore
2315,
11:30
will
and
•r'•
The
de¬
receive
Kressly
common
com¬
at
bids
195 Broadway, New York,
on Dec.
10, 1945,
24
POWER
registered
stock,
no
par
scription
warrants
purchase such sto'„k
Details—See
of
Myron
,
F.
*
>
Converse, President,
of the
Executive Committee;
Officio
Ex-
R.
H.
Templeton, VicePresident, of the Cleveland Trust
Company, Cleveland, Ohio; Myron
F. Converse, President, Worcester
Five
Cents
Savings
Bank,
Worcester; Fred F. Spellissy, Ex¬
ecutive
Vice-President,
of
the
Market St. National
Bank, Phila¬
delphia.
n Term expiring 1946—Mervin B.
France, First Vice-President, of
the Society for Savings, Cleve¬
land, Ohio; Mills B. Lane, Jr.,
First Vice-President, the Citizens
,
Southern
and
National
Bank,
issue
&
LIGHT
1,818,719
and
CO.
shares
1,818,700
sub¬
entitling' holders
at
of
$10
Sept.
a
all
of
the
of
to
share.
27.
/'
outstanding
,
as
common
of
represented as
"a decent home
at¬
for
every
5% down payment.
The method by which the legis¬
lation would accomplish this pur¬
would
pose
be
by
raising
the
amount of government loan insur¬
80
from
ance
90%
or
dent
the
of
Savings
Portland
Bank,
Trust
Portland,
and
Ore.;
the
registrations
Campbell,
of
;
Seattle,
for
violations
of
the
Se¬
J.
Reed Morss, Vice-President of the
Boston Five Cents Savings Bank,
Boston,-:,-'Mass. '?■
v v.,-,/.'
Term expiring 1948—Rowland
R.
McElvare,
Executive / Vice-
v
President, Bank for Savings, New
York, N. Y.; A. W. Sands, Presi¬
dent of the Western State Bank,
St. Paul, Minn.; J. A. Terrill, Sec¬
retary and Treasurer of the New
Hampshire Savings Bank, Con¬
cord, N. H.
to
95%
of
unification
services
of
the
of
the
armed
United States is
essential to the
security of the na¬
tion
and
preservation of world
peace.
The general declared that
era
of
atomic
for
consolidation
Commission
stated
that
it
ment"
that
found
the*
from February 1940
1941,
had
national
Inc.,
as
sold
were
firms,
through June
shares
Metals
which
two
of
Inter¬
Development,
not
registered
required by the Securities Act.
of the measure,
$500,000,000
to
get "urban redevelop¬
projects started; a four-
designed to provide
year program
about
500,000 additional units of
low-rent public housing; low-in¬
terest loans "to enable farm fam¬
ilies of very low income to obtain
decent housing," and provision for
sale
a
of
government-owned
rent homes.
on
priation
a
new
appro¬
of
$1,350,000,000 be au¬
thorized to help continue the work
United Nations
of the
Rehabilitation
Relief and
Administration
in
Europe and Apia, Associated Press
Washington i advices stated. The
President
stated
UNRRA
flow
;that
supplies
current
funds
will' be exhausted
by the end of 1945 and that "the
of
these
funds
purchased with
cannot
-
•
last
beyond
early spring."
v
The new authorization, if grant¬
ed, would match an orginal au¬
thorization by Congress on March
28, 1944, of which $550,000,000
still remains to be appropriated,
the House having approved the
in
action
with
sum
the
Senate
pending.
had
already
Disagreement
started in Congress on Nov. 12,
according to Associated Press re¬
ports, over the proposal for new
funds for UNRRA. Minority lead¬
their
indicated
have
tion
inten¬
authorization of
funds only which are deemed ab¬
solutely necessary. Both sides have
to
support
evinced
the
readiness
a
legislation
tification
of
scrutinize
to
President
sage
jus¬
carefully for
! amounts
the
Truman
and
for han¬
regulatory amendments
dling the funds.
his
in
mes¬
pointed out, according to the
Associated
Press, that the new
needed to finance re¬
war
housing to communities for low-
to both Houses of
Nov. 13, President
message
Truman asked that
money was
lief in
China, Korea and Formosa
East, and Italy, Austria,
Russia and the Ukraine,
Poland, Czechoslovakia, Yugo¬
slavia, Greece and Albania in Eu¬
.;
in the Far
White
Commerce
Dept. Sees
60% Bldg. Gain in '46
rope.
"China," Mr. Truman said, "pre¬
States,
the largest of all relief re¬
sponsibilities which UNRRA now
reach
faces."
New construction in the
United
public and private, will
$7,300,000,000 in 1946 and
additional expenditures on repair
sents
A
'••
-
"limited"
of aid is
and maintenance ; will boost the planned for the Soviet republics
total by at least another $5,000,- of White Russia and the Ukraine,
000,000, according to revised es¬ he said. These areas, he added,
timates issued by the Construe^ constituted the principal battle¬
tion
.Division,::. Department
of fields in the struggle between
' ■;'v
Commerce.
ty
■
Theannouncement
Nov.
issued!,,
continued:
2
■
>.:i\
Statistics
■■
Unit,
construction
in 1946 should be 60% better than
in
1945,
are
fulfilled.
"The
if
real
present
will
be
Shaw
we
at
a
a
however, for
good year is that
of expansion,"
"By the end of
year
said.
can,
an
expectations
,;
reason,
and should, be builds
rate of better
annual
$12,000,000,000 by 1927
and, we hope, well on the way to
sustained high employment."
Mr. Shaw said that this "rosy
view" requires one qualification—
tljat the anticipated goals will not
achieved
be
unless
Germany.
Savs. Bank
;
manufactur¬
dealers, builders, management
labor all work together to
keep costs within reason.
ers,
and
Deposits
In N. Y. Gain in Oct.
While
gains
in both savings
deposits for the 131
savings banks of New York State
continued during October, the rate
accounts and
at a lower rate than
of
gain
in
October, 1944, it is announced
was
by Robert M. Catharine, President
Savings Banks Association
of the
goal of
least
at
and
on
••'According to William H. Shaw,
chief of the Division's Construc¬
tion
Russia
program
The
York.
New
of
State
the
of
net
gain in accounts was 9,201 and
in
deposits
$74,655,114
as
com¬
pared with 23,768 and $87,050,301,
respectively,
ago.
.
"This
in^ October a year
-
■
was
not
unexpected," Mr.
"in view of
weapons"
job shifting and temporary unem¬
makes such unification
impera¬ J"
"Buyers
resistance
and
eco¬
tive. Not only is "unity of con¬
ployment. While this represents a
nomic uncertainties might cause
cept, indoctrination and training a loss of as much as half a bil¬ reversal in the trend which has
more
necessary
than ever," he lion dollars in-1946 ' construction
been in effect since the middle of
told the Committee, according to
volume," Mr. Shaw warned. "Our 1942, it is too early to determine
Associated Press Washington ad¬
forecast assumes reasonable costs
how permanent it will be. It is
vises; but "only through a single
—close to present levels— and it
department can coordinated de¬
interesting to note in this regard
assumes the internal cooperation
velopment of new weapons be as¬
of all segments of the industry as that new savings in October ex-,
sured." Congressional supporters
well as a minimum of material ceeded
by more than 20% those of
of
the
proposed
legislation
to
and labor bottlenecks. In short, it
October
1944.
Withdrawals, on
merge the armed
forces into a
assumes that
Construction in¬ the other hand .increased
single department the Associated
63^,*
dustry will do :|ts/share of recon¬
Press reports, asserted on Nov. 11
thus causing the decrease in the
version and do/it; well."
that
they believed they would
Mr. Shaw said that one "strik¬ net gain."
have President Truman's active
"the
Mr.
The
features
for five-year Federal loans to lo¬
calities
In
Congress
ers
Other
;
ing
tor,
■
years. The
on insured
to 4%."
include Provision for
1946
Eisenhower,
appearing before the Senate Mili¬
tary Affairs Committee on Nov.
16, expressed it as his conviction
Press
loans would be reduced from 5%
Mr.
General Dwight D.
that
32
to
than $9,000,000,000 with a
backing for the merger. As
'
,
years
maximum interest rate
it
Military Merger
Associated
could be increased from
25
or
labelling 1946
change Act.
v
20
the
cost,
of
Atlanta, Ga.; L. A. Tobie, Presi¬
dent; of "y the
Meriden
Savings
Bank, Meriden, Conn.
Term expiring 1947—George S.
Eccles, President of the First " Se¬
curity Bank of Utah N. A., Ogden,
Utah; Charles H. Stewart, Presi¬
curities Act and the Securities Ex¬
be¬
'Offering—National Power & Light Co.
holder
Exchange
revoked
Wash., and Paul W. Judd, Tacoma,
Wash,
pro¬
next year are:.
was
tainment
Truman
of
a sena¬
on
record
the
armed
was
ing feature" of the 1946 estimate
was
the
forces. The President is faced with
a
definite
cabinet
split
over
talked to
him
on
cently feel that he
the
may
subject
re¬
make pub¬
lic his views before Christmas.
"almost three-fourths of
"Not only is this a complete re¬
versal
you
to
of
the last
few
years,
but
have to go all the way back
1929
before
Catharine
Total
October
observed,
deposits
were
the number of
at
the
it
can
cated," Mr. Shaw said.
be
dupli¬
other
special
Savings
York
bank
of
and
accounts 6,648,776,
Clubs and
purpose
deposits
crossed the $8
for the first time in
this year.
end
$8,077,509,203
exclusive of Christmas
ly financed."
the
proposal, but legislators who have
that
total, $5,200,000,000, is private¬
a.m.
PENNSYLVANIA
Sept.
&
and
has;
fur¬
had
oh
Securities
Corhmission
broker-dealer
nished by
petitive
is
Co;;"
$75,000,000
due-Dec.
1,
Underwriting—The
;
a
.
public
group.
TELEPHONE
Nov.
for
bentures
the
Alstyne,
underwriting
PACIFIC
CO.
to
organization
Division for the
Savings
Eisenhower Urges
Co.
York.
statement for 100,000 shares
of .common stock, par $1/
The shares are
issued and outstanding and are being sold
t Offering—Tile
the
centi
funds.
Underwriters—Willis
New
55
or
registration
jS Details—See Issue of Nov. 22. \v;yv:
The officers of the
of
Offering—The offering price to the pub¬
lic
•
9 filed
Nov.
Foun¬
^p r
;
underwriter
Texas,
Underwriters—It
THE PANTASOTE
od
Y.
shares
Management
*
named.
Underwriters—None
Gilcrease
(Canadian).
-
filed
the
issued
sold
Offering—A
MANUFACTURING
amendment-
Co.
N.
Details—See
lanta.' Ga., is fiscal agent.
■In
Oil
YorK.
WESTERN
'• ^-V/ y
.
by
are
$5.
par
the
,
200,-
shares
sold
Aug. 16.
to
the
price
share.
per
VIRGINIA
4.
Oct.
:Offering—The'price
New
Sept
on
statement
common
$7.50. per. share.
"•'•-i':.*.;'"-5--
CORP.
of
Issue
Underwriters—The
heads the un¬
WvA
13
143,659
the
being
are
Thomas
Aug.
for
shares
and
offering—The
June
will
the
Details—See
SECURITIES
Details—See
GRAY
of
Details—See
220,000
public
the
Underwriters—Burr & Co.
GENERAL
filed
dation.
outstanding 'anc"
being sold by certain stockholders.
^Details—See issue of Nov, I.-
■
com¬
be
on
Of
being
are
30,191
outstanding
CO.
stock,
113,468
preferrea
conversion* oj
160,000 shares of com¬
The
is
the
will
statement
A
registered
crease
issuance
preferred.
mon
will
securities
under
names
registration
a
shares
$12.50
for
public
The
sale
Underwriters—The
registered includes 100,000 shares
common
reserved
22.
the
outstanding and owned by Iowa Public
Service Co., controlled by Sioux City.
260,000
be
to
y
are
shares of common
dividend rate on the pre¬
filed by amendment.
Tht
will
on
stock includes 34,068 shares which
registrant
-
registration statement for 60.00C
a
rate
v
p.jtcrrcc
Cerf
INSTRUMENT
$20
Nov.
prices
amendment.
offered
common
statement
$15 per ""it
,
cumulative
shares
dividend
bidding rule of the Securities and
Exchange Commission.
The offering of
and
GENERAL
for
collateral
and
series
Details—See
be
INC.,
8.
at
common
Underwriters—Floyd
group.
Inc.,
St.
statement
mortgage
~
the
Co.,
by amendment.
of
consisting of one sr.are
one
Nordman
preferred will be filed by amendment,
;! Offering—The stock will be offered in
units
bonds
153,000
$12.50.
150,000
shares
6%. cumulative
pre¬
ferred stock,''par $10, and 150,000 shares of
and
Cunningham,
registration
a
first
cumulative
and
be
lor
common, par $1.
Details—See issue
„
petitive
CO.,
registration
a
filed
9
trust
of
-
TOBACCO
FLEMING-HALL
on
Nov.
of
to
K.
102.
given
is
.
<
$8,000,000
acquired
the public.
are
■
John
and
to
99
public
the
SIOUX CITY GAS & ELECTRIC CO. on
so
shares
to
v
Mo.
jouis.
from
ranges
price
Underwriters—S.
the company geologist/ offi¬
purchased by
>
195,000
remaining
series
average
Pittsburgh,
exercised by
the company
as aforesaid.
be
not
terms
July
on
%
100.47.
as
to
Ltd. (Canadian companies) at
share,
and to
Eureka stock¬
Mines,
COMPANY
registration statement for $500,•
a
different
The
Ltd.,
commitment
purchase
480,000
shares
at
$1.23 -per
share, and has an
option
on
1,920,000
shares at the same price.
The offering
Is' to be made among the shareholders of
Ventures, Ltd., Frobisher,
Ltd.,
and La
'*
filed
Offering—The price to the public of the
'
Finance,
firm
Committee.
v :
equipment -trust certifi¬
-0
Details—See Issue' of July 19., ''J-v y'; ;'y
2,595,000
4.
Oct.
Mines
a
is
Press advices
Nov. 14. The goal of tfre
on
measure
the loan
-1.
Inc.. Dallas. Texas.
000' serial AVa
cates.
of common,
Details—See
'
for
in the division or¬
the " Savings Text
Associated
stated
Vice-President, of the Market St.
National
Bank, of Philadelphia,
Pa„ Vice-President; J. R. Dunkefley, Deputy Manager, American
Bankers Association, New York,
Secretary.
The following are the members
<fe
ROBERTS TOWING
Se¬
Sept. 28 filed
on
statement
par $1.
an¬
-
5%, Wash¬
as
pointed out, these advises added.
;:"The period for repayment of
by
Union
9
ington
little
as
ings Bank, Worcester, Mass.j Pres¬
ident; Fred F. Spellissy, Executive
of
''V'.;:
•'.
•f1 UUREKA CORP., LTD.,
shares
by
Corp.
down
the
pended
filed
be
a
of the Worcester Five Cents Sav¬
Bennett & Co..
1.
will
piece of legislation designed to
possible the purchase of
make
modest priced homes with
Co., Inc., in exchange
to Bennett
*
-Underwriters—Names
ganization
registered have heretofore been
,
Details—See
Nov.
on
committee appointments.
New this year
Bennett & Co.,
Stop Order Hearings—Stop order hear¬
ings to determine whether the effectiveness>
Upion Securities Corp., and constitute all
of
have combined to write
tor various obligations of the registrant.
Underwriters
—
Principal
underwrite!
a
registration statement for 177,318 shares of
coinmon-8toeit;~par $1.
tered
are
outstanding
Asso¬
Ellender
American family," permit¬
ting a family to acquire a home
costing up to about $5,300 with the
Converse
nounced
the sole underwriter as to * an ad¬
100,000 shares of common regisThe balance of 530,823 shares ol
is
'ssued
filed
Oct. 29
on
Inc.,
ditional
Bankers
J.
dent
a
the
of Federal's stock.
all
American
Allen
payment of
registered will be issued to stockholders of
Federal Steel Products Corp. in exchange
for
liled
the
A.
Funds for UNRRA
Wagner
Taft
(R.¬
ciation, according to Myron F.
Converse, President of the Di¬
vision, who is also President, of
the Worcester Five Cents Savings
Bank, of Worcester, Mass. Presi¬
acquisition of 54'%
of the outstanding stock of Seatex Oil Co.,
Inc.
In
addition, 150,000 of the shares
with
connection
*1946
among
F.
Robert
and
(D.-La.)
be
of
990,793 shares
V\'. ;
for
of
filed
Ohio)
a
will
objectives of the Savings Division
Offering—Of the shares registered BenCo., Inc., parent Of Red Bank, will
receive 209,970 shares in return for a like
number of shares loaned to the registrant
In
ex¬
.'!
"
CORP.
and
President Seeks New
Housing
Robert
(D.-N.Y.),
panded work in the field of thrift
aett &
NIAGARA
bank, services
of
Senators
education
.'/'•'
31
May
on
(par $1).
issue
merchandising
\
statement
stock
common
Details—See
;„-
the
promote
National
to take
remaining
in
•/
vegistration
sold
and
"
BUFFALO
Proposed in Senate
Savings Oivision
Increased activity on projects to
and National has agreed
shares
RED
C
corporation.
&
Power
Underwriters—None.
V
;■■
^Underwriters—The shares will be
through the efforts of the directors
employees
holdings
common
stockholders.
'V
public
the
its
che
cumul¬
"
Offering—The
$5.So■ per share,
stock on the basis of
Low-Cost
ABA
to
common
(46.56%)
registration
a
right
Pennsylvania
new
Announce Officers of
1,818,700
the
take the number of shares proportionate
to
TRAD¬
PALESTINE
3
of.
to
National will
common.
stockholders
for each one share of Na¬
tional
Power
& Light
Co. common stock
held. Electric Bond & Share Co. has agreed
to
ING
new
its
the mgw
to
share
Light
con¬
preference,
^Underwriters—None
the
offer
turn
subscribe
to
entitled
of
subscribe
two
of
Pennsylvania Power & Light Co.
be
2615
accounts.
in New
billion mark
September of
Thursday,, November 29/ 1945
2616
Sonnett Asst. Att. General
Holland-Swiss Pact
index
'
Foreign Tiade Bankers
Advocate British Loan
Foreign Trade Issue Statement of Policy Adopt¬
ed at Recent Convention.
Urges Congress to Provide Assistance lo
British as Being Vital to Transition and World Reconstruction.
The following statement of policy regarding financial aid to
Great Britain, adopted by the Bankers Association tor Foreign Trade,
which met in Hershey, Pa., on Nov. 15-16, was made public on
Nov. 26:
• j'V; ■•■-'.i'. •-Y. .'Y;:
British-United States Financial and Trade Relationship
Bankers Association for
has caused the United Kingdom to impose
many
trade and exchange: con-^
——— —
United Nations r-and, indeed,, a
trols,.notwithstanding the fact that
determined arid aggressive policy
British standards of living have
of the United States—is the es¬
been lowe£fcd, that foreign invest¬
tablishment of world conditions
ments have been sacrificed and
under which business and finance,
that blocked sterling debts have
among all peoples, may be free of
Prosecution of the war
i
accumulated in many areas.
Page
Bank and Insurance Stocks
2588
Broker-Dealer Personnel Items... .2575
Business Man's Bookshelf......... .2595
Calendar of New Security Flotatlons.2614
Canadian
Securities
.2582
.
Dealer
,
Funds
Notes
NSTA
,
Our
Our
Reporter
Railroad
Real
Estate
Securities
Says
and
perial
and American tariff rates, so
there
Huge! funds of free exchange
will be required to eliminate the
large imports.
sterling area block and to unfreeze
the blocked sterling owed to Brit¬
urges
Dominions
nations
and Colonies and
of the Western
Europe, Africa and
Asia to permit these territories to
make large imports for rehabili¬
tation, reconstruction and restock¬
ing. Economic stability in the in¬
Hemisphere,
ternational field
of:
(a) Maintaining a firm dollar-
return to
Swiss
must be repaid in gold.
The
agreement will continue in force
Kaiser-Frazer
;
/
•
■
•
M. S.WIEN & Co.
ESTABLISHED
Members N.
Africa
ment
of
take
will
credit
Hemisphere, Europe,
Asia to purchase es¬
thus
enlarging employment and trade
throughout the world, and
sential rehabilitation imports,
sterling relationship and the free
convertibility of the pound ster-
(d)
J
and
Modifying
1919
Security Dealers Ass'n
Teletyoe
Y.
N.
HA. 2-8780
1-1397
;
commercial
a
'»' Sardik's Inc.
50,000,000, Swiss francs
YY
with Swiss banks.
Y
%
"
Haile Mines Inc.
Telecommunications
Finch
Interstate
Mining
Airplane & Marine Instruments
Schoellkopf Hutton & Pomeroy
Int'l Resist. 6%
Pfd. & Com.
Ironrite Ironer Com. & Pfd.
Bendix Helicopter
Lear Inc.
Bendix Home
Majestic Radio & Television
Appliances
'■"•'
Waltham Watch Co.
Oklahoma
Globe Aircraft
& Pfd.
„.
Keyes Fibre Co.
.
Baltimore Porcelain Steel
RALPH F. CARR & CO.
BOSTON
Clyde Porcelain Steel
Do Mont Laboratories
9,
MASS.
Boston
New Tork
Teletype
Hubbard 6442
Telecoin Corporation ./
Hanorer 2-7913
BS 328
Wilcox & Gay
We
specialize in all
Insurance and Bank Stocks
by the
and
Y.
Exchange PI., N. Y. 5
40
] In order to bridge the recovery
period the Netherlands Govern¬
Amalgamated Sugar
Kobbe, Gearhart & Company
huge blocked sterling debts;
(c) Permitting the United King¬
dom, British Dominions and Col¬
onies and other nations of
the
Western
!
Finishing
established
with the
< (b) Dealing adequately
trade strangulation caused
;
foreign exchange rates is the prior
a firm dollar-pound
objective of the
;
/
Mutual
guilders.
pound sterling relationship, with
convertibility of sterling; "
attainment of
An outstanding
■'
objective
U. S.
Trading Markets in
Artcraft Mfg. Com.
Cargo Transport
Majestic Radio
free
private
trade
severely
handicapped unless governmental
restrictions, here and abroad, can
be greatly modified and relaxed.
A
prerequisite to establishment
of
the
International
Monetary
Fund and the stabilization of all
-
the four-fold
-V.
complish
normal
ling.
to ac¬
sion, at home and abroad,
will be danger¬
ously impaired and the
therefore,
that Congress provide ap¬
propriate financial assistance to
the
United Kingdom, as being
vital to transition and reconver¬
Air
The of¬
162.69
Appliances
Du Mont Laboratories
'
traffic be¬
for three years.
■
Association,
This
,
:
to
25,000,000
Swiss
15,000,000 guilders. If
is exceeded the bal¬
credit
,
ance
that
be negotiated »a great
may
tariff rates'to en¬
of United States
100
been
the
discriminations
preference
be
per
has
francs and
British Im¬
decreasing
Such
■■■
will
rate
credit
free
V
various
ficial
v........2597
amounting
trols
and
England Public Service
com¬
concerns
payment
francs
Markets—Walter Whyte
....
an
Attorney General.
Bendix Home
1
agreement
tween the two countries.
Corner....;. .2595
Salesman's
..,,...i
New
:
Swiss franc.
The
mercial
Securities............7595
,
ish
:
.......2584
Securities
Tomorrow's
;
a
Governments... .2601
on
Utility Securities............2574
Public
Berne
at
cies at 61.6 Netherlands cents for
Report.............2597
Reporter's
agreement
monetary
change between the two curren¬
.2579.
.v.......;....,
Assistant
today which fixed the rate of ex¬
.2580
............
F. Sonnett of New York to be
"Journal of Com¬
Holland and Switzerland signed
a
Municipal News and Notes.....;. .2599
Mutual
York
| The U. S; Senate on Oct. 18
confirmed the nomination of John
31
in
merce" said:
designed
and
trade.
the New
Literature.,..... .2578
and
The
Hague,
Oct.
(ANETA), advices published
From
Recom-
Investment
Broker
-
emendations
series
of
discrimination, with great reduc¬ new
reciprocal .trade
to conserve
tions of trade barriers,; of mutual Agreements
under
the
new
exchange re¬
and equal benefit.
Implementa¬ stronger authority granted this
sources, have resulted in trade and
tion, of such policies—to unleash
financial
discrimination against
year by the United States Con¬
the constructive forces of world
the United States and the forma¬
1
economy—requires the modifica¬ gress.
tion
of
a
sterling area;, block,
tion and relaxation of British Im¬
highly prejudicial to the orderly
perial tariff and trade preferences
development of American foreign
and restrictions and the reduction
measures,
dollars
I
,
Investment Trust Issues
INCORPORATED
Members
45
New
NASSAU
Security
5
YORK
NEW
Teletype
Bell
telephone
Enterprise C015
2-3600
Public Utility Stocks and Bonds
TEXTILE SECURITIES * V;In¬
Association
Dealers
STREET,
philadelphia
telephone
REctor
York
y
Industrial Issues
y
new
york
securities with
a
New Eng. Market
1-576
Frederick C. Adams & Co.
Specialists in
relaxing
trade, financial and exchange con-
A Market Place for
.
England Unlisted Securities
New
24 FEDERAL STREET,
BOSTON 10
Established In 1922
Low Priced Unlisted Securities
Tel. HANcock 8715
Admiralty Alaska Gold
Lava Cap Gold '
Petroleum Conversion
Holding
Kellett Aircraft
/ y.
Elk Horn Coal
1-971
r.ARL MARKS & P.O. iNCe
Retail food and
Shawnee Pottery
Asphalt
Haile Mines
;^
chandise stores,
general wholesale and
bing business.
a
SPECIALISTS
.
.
New York 4, N.Y.
50 Broad Street
HAnover
AFFILIATE: CARL MARKS & CO. Inc.
2-0050
CHICAGO
Morris Stein & Co.
///'V''..?•••.
Established 1924
50 BROAD
Y;Y
ST., N. Y. 4
pasteuriz¬
also does
ing plant, bakeries!
Vacuum Concrete
\,
Telephone
general mer¬
theatre, Ice¬
plant, milk
cream
Southwest Gas Producing
.
Happiness Candy
FOREIGN SECURITIES
TYBOR STORES
:
Reiter Foster Oil
Federal
Teletype
NY
Jardine Mining
Differential Wheel
MARKETS
Investors
Copper Canyon Mining
Cuba Co.
Foreign Securities
Huron
British Type
Tele. BOston 22
-
y
,
.
'
.
***
in each year
incorporation.
Manage¬
ment prominent.
/
A low-priced speculation, y
since
HANOVER 2-4341
.
For Dealers
V
Only:
•.***
■'
Recent
Missouri State Life Insurance Co.
,
/y:.
■
Write
—
Sold
Quoted
—
.
y-y',l-;'iV,...
Price.,........
'
Bought
earnings,
sales and
Expanding
dividend payments
'
TELETYPE—-N. Y. 1-2886
job¬
.
•
-
***
..
/;'•/;/
or call for recent
'analysis TS.' / '/■ •'.
? .2
I/5'''';,'
;
"
Specializing in Unlisted Securities
<
.r j
•
&
Teletype:
,
Est.
19S>„
f
.j
•
f
* .#•!
m
•
.
BANK
.....
Telephone:
120 BROADWAY, NEW YORK 5
\1-1288
INSURANCE
148 -State
Members N. Y. Security Dealers Ass'n
2^-yf 1-1287
—
; •
RE. 2-8700
PUBLIC UTILITY
—
INDUSTRIAL
—
REAL ESTATE
Tel. -CAP.
St.,
0425
Boston 9, Mass.
:
:
Teletype BS 259
N^Y^Telephcn^
LUMBER & TIMBER
Columbus Auto
SHOE RATIONING OFF
Parts
Sunshine Consolidated
Griess-Pfleger Tanning Co.
Pressurelube, Inc.
BONDS, PREFERRED AND
COMMON STOCKS
WANTED
Common Stock
;
U. S.
Radiator, Pfd.
Smith
&
EARNINGS PER COMMON SHARE
Wesson
1944__._$4.01
1941—
2.78
W. T. BONN & CO.
120
Broadway
New York 5
Telephone COrtlandt 7-0744
Bell
Teletype NY 1-886
-
208 So. La
4.41
Circular Upon Request
Amos Treat & Co.
40 Wall
—
SOLD
—
QUOTED
Blocks
REMER, MITCHELL t REITZEL,
1942___$2.66
1943-—
BOUGHT
of Securities
INC.
Salle St., Chicago 4
RANdolph 3736
WESTERN
UNION
TELEPRINTER
BELL
SYSTEM TELETYPE
CG-989
I, Thompson & Co., Inc.
Markets and
120
St., New York 5, N. Y.
BO
9-4613
Situations for Dealers
"WUX"
Broadway, New
Tel. REctor 2-2020
York 5
Tele. NY 1-2660
@FedFRASER