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(jT o m m m ta l & iftn a n c ta l ( j T h r o n i t l t eommttM TED IN » M •VWIU.tAM N. DANA COMPANY, NSW VON*. . SNlW EftAS StCOW tfM W L^ V O L. 149. U H'SSSe£^m'^ mi TRUST COMPANY NEW YORK, NOVEMBER 4 ,1939 ^ ^ pr f e » .7 ’ s George V. McLaughlin President BROOKLYN NEW YORK Member Federal Deposit Insurance Corporation THE CHASE NATIONAL BANK BANK Chartered 1866 O F THE CITY 0 F NEW YORK OF Maintaining effective cor respondent bank service is a traditional policy of the Chase National Bank. NEW Y OR K Broaden your customer service with Chase cor resp o n d en t facilities. Member Federal Dtpoat Insurance Hall gar ten & Co E ita b liih td 18S0 Underwriter NEW YORK London Chicago FUNDAMENTAL INVESTORS INC. NO. 3880. latritsi-ei Distributor D istrib u to r The T he Underwriters of capital issues and dealers, in United States U tility, Railroad, Industrial and other investment securities. S6&T FIR ST BO STO N Harriman Ripley &Co. Incorporated CORPORATION NEW YORK BOSTON CHICAGO : 63 Wadi Street, jfew York THrLAOELpHIA SAN FRANCISCO F H rU M L rH U RRANCISCO a n d o t h e r R R m cirA L c it ie s AND OTHER RRfKCirAL CITIES B oston pjr*tasit*HfiA C hicago Representatives in other leading Cities Prospectus on request from authorized dealers in all prin cipal cities or Fundamental Group Corporation, Jersey City, N . J. n w| i i i >h i N e w Y o r k T k u sT HOMER & CO., In c Com m onw ealth of Pennsylvania IO O BROADW AY Bonds MADISON AVENUE AND 40TH STREET BEAR, STEARNS a CO. ONE EAST 57TH STREET O N E W A L L STREET . N EW YO R K I r ItlKdASWAY NfWYOftK Paris Amsterdam /; European Mapemupettmiion ;.... .■ ; 8 KINO WILLIAM ST. LONDON, E.C 4 22$ TOV%THW&f#P* 6-8. SackvUle St A n Outward Sign of Inner Value million T ODAYona productseyes will see this trade mark made of steel. In household appliance shops, hardware stores, department stores, general stores, you’ll see this U-S-S trade-mark. It means highest quality steel in stoves, refrigerators, washing machines, kitchen cabinets, household utensils . . . in bathtubs, medicine cabinets, pails and garden tools . . . in stainless steel kitchenware ... in farm, lawn and industrial fence ... in steel roofing and siding . . . in ducts for heating and air conditioning . . . in hundreds of other prod ucts. Even when steel is covered with porcelain enamel, or hidden from sight as in the springs of beds, mattresses and furniture, the manufac turer adds the U*S*S mark to his own to tell you the article contains the finest steel. Nor is this trade-mark confined to such fab ricated products. It is also the “mark of value” for structural steel, rails, pipe, tubing, sheets, wire rope, bars, plates, shapes—in fact, for al most every type of steel used by industry. The U*S*S trade-mark is a promise to the buyer that the steel is of the highest quality. And back of this promise is the world’s fore most group of steel technicians and all the great research, metallurgical, engineering and manu facturing facilities of United States Steel Cor poration Subsidiaries. AMERICAN STEEL & WIRE COMPANY • CARNEGIE-ILLINOIS STEEL CORPORATION COLUMBIA STEEL COMPANY • CYCLONE FENCE COMPANY NATIONAL TUBE COMPANY • SCULLY STEEL PRODUCTS COMPANY TENNESSEE COAL, IRON & RAILROAD COMPANY Volume 149 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD — — The oldest house In America specializing in Government Securities C.F. C hilds and Company New Y o r k Kan sas C i t y Bo s to n S a n F ra nc isc o S t. Lo ui s Cl ev el an d Pittsburgh Chicago Cincin nati 2733 Centennial Articles The Second Century____________________________________________________ Birth and Development of an Idea_____________________________________ In Step with Progress___________________________________________________ The M en Who Made the Chronicle____________________________________ A Century of Achievement_____________________________________________ One Hundred Years and Wall Street___________________________________ Banking 1839-1939_______ Index to Advertisers____________________________________________________ page 2737 2738 2740 2743 2746 2790 2810 3012 Editorials The Financial Situation_____________________ American Shipping and the Neutrality Bill_____________________________ California’s Danger_____ _______ 2832 2873 2876 Comment and Review Week on the European Stock Exchanges_______________________________ Foreign Political and Economic Situation________________________________ Foreign Exchange Rates and Comment____ '____________________ 2867 & Course of the Bond M arket____________________________________________ Indications of Business A ctivity________________________________________ Week on the New York Stock Exchange_______________________________ Week on the New York Curb Exchange_______________________________ 2848 2849 2919 2878 2879 2840 2914 News Current Events and Discussions________________________________________ Bank and Trust Company Items_______________________________________ General Corporation and Investment News_____________________________ Dry Goods Trade_______________________________________________________ State and Municipal Department________________________________________ 2894 2914 2959 3002 3003 Stocks and Bonds Foreign Stock Exchange Quotations____________________________ 2923 & Bonds Called and Sinking Fund Notices_______________________________ Dividends Declared_____________________________________________________ Auction Sales_____________________________________________________________ New York Stock Exchange— Stock Quotations__________________________ New York Stock Exchange— Bond Quotations____ _____________ 2926 & New York Curb Exchange— Stock Quotations___________________________ New York Curb Exchange— Bond Quotations__________________________ Other Exchanges— Stock and Bond Quotations___: _____________________ Canadian Markets— Stock and Bond Quotations_________________________ Over-the-Counter Securities— Stock and Bond Quotations______________ 2925 2919 2920 2919 2926 2936 2942 2946 2948 2952 2955 Reports Foreign Bank Statements________________________________________________ 2863 Course of Bank Clearings________________________________________________ 2915 Federal Reserve Bank Statements______________________________ 2894 & 2923 General Corporation and Investment News______________________________ 2959 Commodities Published Every Saturday Morning by the W i l l i a m B. D a n a C o m p a n y , 25 Spruce Street, New York C ity, N . Y . Herbert D . Seibert, Chairman o f the Board and Editor; William Dana Seibert, President and Treasurer; William D . Biggs, Business Manager. Other offices: Chicago— In charge o f Fred H. Gray, Western Representative, 208 South La SaUe Street (Telephone State 0613). London— Edwards & Smith, 1 Drapers’ Gardens, London. E.C . Copyright 1939 by William B. Dana Company. Entered as second-class matter June 23, 1879, at the post office at New York, N . Y ., under the Act o f March 3, 1879. Subscriptions in United States and Possessions, $18.00 per year, $10.00 for 6 months; in Dominion o f Canada, $19.50 per year, $10.75 for 6 months. South and Central America, Spain, Mexico and Cuba, $21.50 per year, $11.75 for 6 months; Great Britain, Continental Europe (except Spain), Asia, Australia and Africa, $23.00 per year, $12.50 for 6 months. Transient display advertising matter, 45 cents per agate line. Contract and card rates on request. NOTE: On account o f the fluctuations in the rates of exchange, remittances for foreign subscriptions and advertisements must be made in New York funds. Volume 149 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD — — MORGAN STANLEY & Incorporated TWO WALL STREET NEW YORK . 2735 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939 2736 — — J. P. MORGAN & CO. WALL STREET, CORNER OF BROAD NEW YORK DREXEL & CO., PHILADELPHIA FIFTEENTH AND WALNUT STREETS MORGAN GRENFELL & CO. LIMITED, LONDON 23, GREAT WINCHESTER STREET MORGAN & C ie, PARIS 14, PLACE VENDOME THE SECOND CENTURY O A PUBLICATION—or perhaps we may be excused if we say an insti tu tio n —as to a sensible individual, age brings not vanity bu t humility and a deep feeling of responsibility. One hundred years ago the founder of the “ M erchants’ Magazine” had his ideals to guide him and his ambition to stimulate him. He and his successors through the en suing decades w rought mightily and wisely. Today the publishers and editors o f the “ Commercial and Financial C hronicle” have illustrious examples to follow , but by the same token they have a great tradition to maintain and a heavy responsibility to meet. T h roughout their existence both the “ Merchants’ Magazine” and the“ Commercial and Financial C hronicle” have kept two main objectives clearly in view —to keep the public as fully informed on all subjects re lating to industry, agriculture, trade and finance as circumstances permitted, and so far as human frailty allowed to stimulate and to guide constructively and wisely the course of human th ou gh t on econom ic and related problems o f the times. At no time during the century have there been w anting critics of the press ready to make sweeping charges of self-seeking. Never have they been more vocal or more highly placed than at present. It is of course a fact that a periodical publication, like any other business enterprise, must make its living, and this simple but in exorable fact inevitably and more fre quently than we could wish limits the am ount o f factual data w hich may be printed and in consequence the extent of the informational service that may be ren dered, but at no time have the editors or publishers of the “ M erchants’ Magazine” or of the “ Commercial and Financial C hron icle felt that it need, or should be per mitted, in any manner to mar the candor o f their editorial utterances or warp or even tinge their own thinking. The “ M erchants’ Magazine” was not de signed to be what has o f late years become known as a “ popular periodical,” but was developed to be o f service to the man of affairs everywhere and to all serious stu T dents of business in all m anifold ramifica tions who felt the desire to hold a worthy place in the com m unity as a leader of thought and action. The “ Commercial and Financial C hronicle” was founded to carry forward the work o f the “ M erchants’ Maga zine” more effectively. One result has been that no need has arisen to over-simplify, to abbreviate in ordinately, to give a dramatic appearance to that w hich is by nature hum-drum, to cater to the passing whims of the multitude, or to discuss intricate questions in terms of meaningless catch-phrases. The audience has always been, in the best sense o f the term, a highly selected one. It has accord ingly been necessary only to speak as one friend to another, or if you will, as one director to another—but always making a sincere effort to give the reader whatever advantage there is in not being too close to trees to see the forest. The “ C hronicle” now enters the second century, first o f all, w ith determination to continue and to enlarge and improve wher ever and whenever possible the service that it has rendered in the past, but also w ith more optimism concerning the future o f the United States and its business affairs, and for that matter the future o f world affairs, perhaps than the outward appearance of things in this dark year 1939 may to some seem to warrant. It and its predecessor during the past one hundred years have passed through many a year when it was difficu lt to visual ize a return to the older rate of progress or a continuance o f the march toward the more abundant and better life, but in each case a way was fou n d to shake o ff the shackles that wars, pestilences, and human blunders had forged about the wrists and ankles o f enterprise. So it will be again. The “ C hronicle” will, to the limit o f the powers of its editors and publishers, co n tinue to point the way, as it sees it, to a realization o f opportunities and to a re sumption o f real progress, all the while recording faithfully and fully as possible all things that take place from week to week so far as they are o f interest or importance to business. 2738 ONE HUNDRED —The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939 — Birth and Development of an Idea When any periodical publication reaches and passes its hundredth year of continuous issue, thus demonstrating beyond question the wisdom of the founder in undertaking it, its readers and friends may well find it of interest to know precisely how and under what circumstances the idea was origi nally conceived and the purposes which the publica tion was intended to serve. In the present instance— “ Hunt’s Merchants’ Magazine,” which after having served its readers under this title from July, 1839, through December, 1870, was merged with the “ Commercial & Financial Chronicle,” which meanwhile had been established by the publisher of “ Hunt’s”—the founder has fortunitely told the story for us in a letter from his pen some years after the appearance of the first issue. From the biography of Freeman Hunt, appearing in Volume III of the “ Memorial Biographies of the New England Historic Genealogical Society,” we take the following extract verbatim from the letter in question: “ It [‘Hunt’s Merchants’ Magazine’] was a long time the subject of much thought and deliberation before any active steps were taken towards carrying it out. In casting the eye around, in the difficult search after some useful but unoccupied corner in the wide field of literature, it seemed to the editor as if every point was already occupied, every branch represented, except one—and that the very im portant one of commerce and the mercantile inter est. On the one hand, the professions—the divine, the lawyer, and the physician— the farmer also, and the mechanic, had each one or more organs and ex ponents in the periodical press. Even the railroad interest, new as it then was, had found a voice through the press; while commerce, more or less connected with all other pursuits, was not repre sented. While the business concerns of commerce filled the huge columns of the daily press with ad vertisements and with shipping intelligence and with matters relating to everyday details of mer chandise on the one hand, there was not a single magazine, of high or low pretensions, either in America or, to the best of our knowledge, in Europe, to represent and to advocate the claims of com merce. There were one or two dictionaries of com merce, and a few works intended for practical pur poses; but a literature of commerce did not exist even in name. The idea and the thing were yet to be developed. In 1839 the “ Merchants’ Magazine and Commercial Review” was established without, we confess, so clear a conception as after experience has furnished of the full import of the term com merce, in its broadest, largest, and truest sense or signification. Every branch of industry, almost every pursuit, may be said to come within its range. The interests of agriculture and manufactures, which produce, are identified with the interests of commerce, which distributes. The great topics of banking and finance, of railroad and canal com munication, of mining, and of navigation by steam and sail, are all involved in the one great topic of (< Continued on page 2826 ) ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Volume 149 — — SPECIALISTS IN UNITED STATES GOVERNMENT SECURITIES GUARANTEED ISSUES OTHER AGENCY ISSUES TERRITORIAL AND MU NI C I P A L B O N D S C. J. DEVINE &CO. IN C. 48 W A LL STREET, NEW Y O R K HAnover 2-2727 CHICAGO* BOSTON* PHILADELPHIA* CINCINNATI* ST. LOUIS* SAN FRANCISCO D irect W ires to a O ll ffices 2739 IN STEP WITH PROGRESS As is the case of “ Hunt’s Merchants’ Magazine,” we are able to present an intimate account of the origin of the idea which was to grow into the “ Com mercial & Financial Chronicle” of today with its numerous supplementary publications, this time not, it is true, from the pen of the founder himself, but in the words of Jacob Seibert, Jr. whose con nection with the Chronicle began but slightly more than five years from its birth and who without ques tion was more intimately acquainted through a longer span of years both with the Chronicle and its founder than any other man living or dead. Upon the occasion of the Chronicle’s semi-centen nial in June 1915 Mr. Seibert in one of his very rare signed articles wrote: “ The first number of the ‘Chronicle’ was issued on July 1, 1865. It owed its inception to the reali zation on the part of the founder of the journal, the late William B. Dana, that with the closing of the Civil War, which had occurred the previous April, the country was about to enter not only upon a long term of peace, but an unexampled era of develop ment and prosperity. . . . “ Possessing undeveloped natural resources of vast extent, and with an energetic population, the mar velous growth here recorded was inevitable when the issue of the Civil War had made it plain that the danger of a divided country had been surmounted. The only thing that could interfere with the coun try’s progress was erroneous economic and financial policies. The founder of the paper foresaw this— foresaw what a marvelous industrial era lay ahead and also recognized that the perils attending the promulgation of false economic doctrines, which had found a fertile field in the financing entailed by the war, must be guarded against if the United States would attain the full measure of the growth which its boundless possibilities ensured. He there fore resolved to establish a well equipped journal— a great organ of public opinion—designed to foster the economic and material interests of the country and bent upon combatting false doctrines and dog mas, a paper whose purpose it would be to inculcate correct principles, champion high national ideals and encourage unquestioned standards of business morality. “ It was not, however, the purpose to provide merely a vehicle for editorial discussions and the expression of correct views for the enlightenment and guidance of the mercantile and financial world. Mr. Dana had it in mind also to create a newspaper which would supply a narrative of all the events, the facts and the information having a bearing upon the industrial and financial situation of the coun try. The editorial announcement in the first num ber of the paper stated this purpose very plainly, saying: ‘Nor will it stop with the advocacy of cor rect principles, but will be in every essential sense a newspaper. All that the economist, the merchant, the banker, the manufacturer, the agriculturist, the shipper, the insurer and the speculator, may need to know in the course of his daily pursuits, will be found duly chronicled in its columns.’ ” In a previous issue (Aug. 28, 1909) the Chronicle, in making announcement of Mr. Dana’s 80th birth day, had said: “ The country was then (in 1865) entering upon a wonderful period of rapidity in business methods. A monthly magazine (such as the ‘Merchants’ Maga zine’ of which Mr. Dana was then the publisher and editor), however great a storehouse of valuable knowledge it might be, could not through its edi torial department wield far-reaching influence in the rush of the business world. “ This fact, speedily realized by Mr. Dana, caused him to project a new publication which should re tain all the best features of the old one and add the necessary vitality to make the paper a living force. During the whole period of the Civil War this plan was ripening in his mind and it bore fruit in July 1865, when the first number of the ‘Commercial and Financial Chronicle’ appeared. “ In developing this new scheme, Mr. Dana took as his model, for form, the London ‘Economist’, bear ing constantly in mind the need of giving to his periodical a very practical side, an everyday appli cation, suited to a conservative high-class clientele, and able to maintain a foremost place in the rapidly moving march of events. It is worthy of note that the first issue of the ‘Chronicle’ contained in em bryo form a suggestion of every one of the subse quent developments which have from time to time been made in the form of additional supplements or sections. “When the first number of the paper appeared, in July 1865, the title page bore testimony to the broad field it meant to occupy. Besides the name ‘The Commercial and Financial Chronicle,’ it had the following subtitles: Bankers’ Gazette, Commercial Times, Railway Monitor and Insurance Journal; a Weekly Newspaper representing the Industrial and Commercial Interests of the United States. Its chief aim as stated in the first number was the ad vocacy of correct principles, but it also aimed in Thomas A. Edison in his Menlo Park Laboratory, every essential sense to be a newspaper.” Inventing the Incandescent Lamp Volume 149 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD — — 2741 EDITORS AND PUBLISHERS DURING A CENTURY PIw ' gJME1jl A\1 %' « > M Krf8 >- • * - -i FREEMAN HUNT Publisher and Editor 1839-1858 THOMAS P. KETTELL ,,,,, Editor 1838-1891 ISAAC SMITH HOMANS Co-Editor 1861-1862 JACOB SEIBERT, JR. C h ief Associate Editor P ublisher and Editor 1H80-1910 1 91 0 -1 9 3 1 WILLIAM DANA SEIBERT President and Treasurer m m m 1931 . . . HERBERT D. SEIBERT h X r ^ : p Chairman and Editor 1 9 3 4 .. . ft 1 The Men Who Made the Chronicle FREEMAN HUNT The best biography of Freeman Hunt is the file of “ Hunt’s Merchants’ Magazine” , which is also his monument, more durable than New England gran ite, marking not his entry into and his departure from his life, but—far more important—his passage through it. Save to the professional genealogist or biogra pher, or perhaps to the historian of American jour nalism, the details of Mr. Hunt’s life prior to his founding of “ Merchants’ Magazine” , or thereafter except as they are reflected in the pages of his mas terpiece, are of secondary interest. Born in Quincy, Mass., on March 21, 1804, descended from a long line of hardy New Englanders, he was left father less at an early age, and thus without opportunity to obtain an extended formal education, although in later years both Harvard and Union Colleges conferred degrees upon him. At the age of 12 he journeyed to Boston and began a career among various publications of that city, several of which he, either alone or in partnership with John Put nam, became publisher. In 1831 he moved to New York City where, after further publishing ventures both in New York City and Boston, he founded his “Merchants’ Magazine” in July, 1839. With the beginning of this magazine he really began his life’s work. Henceforth nothing else dis tracted his attention until the day, almost the hour, of his death in Brooklyn on March 2, 1858. “ The interest and untiring industry which led him to succeed in the ‘Merchants’ Magazine’, his own crea tion, never forsook him,” says his biographer. “For months preceding his death, while lying upon his (C o n tin u e d o n p a g e 2802) WILLIAM B. DANA William B. Dana, for about a decade publisher and editor of “ Hunt’s Merchants’ Magazine” and founder in 1865 of the “ Commercial and Financial Chronicle,” was a modest man. Had the matter been left to his initiative about all that would be available about him and his life would be found in the brief record his Yale Class Historian (Class of 1851) was able after much effort to pry from him in 1893. This notation in Mr. Dana’s own hand-writing, the historian reports, reads as fol lows : “ Sickness has prevented my writing what you wanted me to write. As the slip you send me is so inaccurate, I send you the enclosed: “ Born in Utica in 1829. After graduation, studied law. Was admitted to the bar in 1853. Practised law in Utica until 1861. Moved to New Y'ork in 1861, and became editor and proprietor of ‘Hunt’s Merchants’ Magazine’ same year. In July, 1865, issued first number of the weekly newspaper, ‘The Commercial & Financial Chronicle.’ Have continued publishing and editing that paper since that date. In connection with it, two supplements are issued: one, the ‘Investors’ Supplement,’ 160 pages, containing information about railroads and railroad securities, and the ‘State and City Supple ment,’ 184 pages, containing information about States and cities and their securities.” But achievements such as those of Mr. Dana can not for long be hid under a bushel. The class his torian was not satisfied. He investigated for him self, with the result that he recorded the following notation on his own authority: ( C o n tin u e d , on page 2806) JACOB SEIBERT, Jr. The ambitious plans of William B. Dana probably never could have been brought to full fruition, and certainly not carried forward and further developed after the years had taken their toll from Mr. Dana had Providence not sent Jacob Seibert Jr. at an early age to the offices of “ The Commercial & Financial Chronicle.” The “ Chronicle” was Mr. Seibert’s lifework, as it had been that of Mr. Dana. Throughout the nearly 64 years of his active business life Mr. Seibert never had any outside associations or con nections. His entire time and energy, of which there appeared to be no limit, were devoted to the conduct and management of the paper. Mr. Seibert entered the employ of the “ Chronicle” when a boy 13 years of age, on Aug. 11, 1870, and continued the work he then began until his death on March 14, 1934. He had already passed examina tion for admission to the College of the City of New Yrork when beginning his work, and completed his education by taking the five-year night course in the School of Science at the Cooper Union, from which he was graduated in 1878. An academic course would have suited his requirements better, Mr. Seibert himself testified in later years, but, as he phrased it, he had to take wdiat he could get. He contributed news and statistical matter to the columns of the “ Chronicle” almost from the first day. After having long had exclusive charge of the department of railroad earnings, he began in 1880 his editorial contributions, and from that time until the death in 1910 of William B. Dana he was chief associate editor. From 1895 to 1910 he was also Vice-President of the company. The fact is that (< Continued, on page 2808 ) ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939 2744 — — To the Chronicle Subscribers and Advertisers The following announcement, which appears in the December number of “ Hunt's Merchants' Magazine,” issued this week [December, 1870], explains itself: “ HUNT’ S MERCHANTS’ MAGAZINE” FOR 1871 With the 1st of January we propose to make an important, and as we think, very desirable change in the issue of this Magazine; thus far its publication has been monthly; hereafter it is intended to furnish it to our subscribers as a weekly, by incorporating it with our “ Commercial and Financial Chronicle.” It is known to most of our readers that the first issue of “ Hunt’s Merchants’ Magazine” was in June, 1839. The idea of its projector and editor was to provide business men with a valuable periodical, devoted to the commercial and industrial interests of the Nation, and, so far as might be, of the world. How well that object has been attained is well in dicated by its pecuniary success and the universal favor of its reception among a large class of intelligent readers, it having been from its earliest number up to the present moment a paying investment, and today being favorably known in every important commercial city of the world. These are mere matters of history familiar to the public, But, during the last few years, the increased rapidity of communication between cities and nations, by means of railways and telegraphs has changed into quicker movement all thought and action of individuals and communities. Commercial enterprise has thus developed into a new life, and in place of the ventures which formerly required months to consummate, now a few days or hours or even months include both their inception and completion. Thus it became evident, some time since, to the publishers of the Magazine that the infrequency of its issue (only once a month) prevented its keeping pace with the growing wants and necessities of the community. Its information was too late to be of present use; so also its editorials on national or business policy which when written were at least timely, too frequently had become dead and lifeless The Mississippi River steamboat “ Philadelphia.” famous early-day river steamboat. A through a change of issue when they reached the eye of the reader. Feeling the force of these facts the publishers of the Magazine a few years since began the publication of the “ Commercial and Financial Chronicle,” a weekly journal combining all the advantages of the Magazine with very many others, which enabled it to supply the daily wants of practical business men. We aimed in its editorials also to make it a trust worthy guide of the mercantile, banking, manu facturing and monetary classes. It is hardly necessary to say how well we have succeeded, for the almost immediate and continued prosperity of that journal speaks for it. At the present moment it has a very wide circulation, not only in this country, but throughout Europe, and no publication ever grew in favor more rapidly, or so soon acquired so many warm and ardent friends. In undertaking the publication of the “ Chronicle” we expected it to fill the place which the monthly issue of the Magazine was originally intended to occupy. As it now more than does that, the necessity for the monthly does not exist, and we shall not therefore issue any number of the Magazine in that form after the present. To our entire list of sub scribers, however, the “ Chronicle” will be mailed weekly after the first of January, for one month, without charge to any who at the end of that time desire its discontinuance. Where the time paid for the Magazine has not expired, the “ Chronicle” will be sent in its place until the end of the term for which payment has been made. In thus incorporating the Magazine with the “ Chronicle,” and giving the Magazine a weekly issue instead of a monthly, we have also determined to publish, about the first of March of each year, a volume to be called the “ Commercial and Financial Year Book of Hunt’s Merchants’ Magazine,” which shall contain all the yearly statistics, &c., necessary for bankers’ and merchants’ use, in a form easy of reference, with reports of the different branches of trade, &c. It is also our intention to give in it a brief sketch of the life of the more prominent mer chants and business men who have died during the year— a feature which will lend to it increasing in terest year by year. With, then, the publication of our Year Book each March, and of the “ Chronicle” each week, we think the interests which the Magazine was intended to subserve will be fully provided for; and we shall trust to carry with us into this new field all our old friends, with whom, through so many years, we have been so agreeably and pleasantly connected. “ The Commercial & Financial Chronicle,” December 31, 1870. Volume 149 ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD — — nderwriter an Distributor ■---------------------------- * * * ----------------------------- ‘D e a le r In United States Government Securities State and Municipal Bonds Public Utility, Railroad and Industrial Bonds Canadian and Foreign Dollar Bonds Short Term Bonds and Notes Bankers’Acceptances Bank, Insurance and Preferred Stocks The FIRST BOSTON CORPORATION E xecutive Offices io o B r o a d w a y , N e w Y o r k . i F e d e r a l St r e e t , B o st o n Other Offices BU F F AL O PITTSBUR GH CHICAGO PR OVI DEN CE CLEVELAND HA R T F O RD ST. LOUIS SAN FRANCISCO P H IL AD EL PH IA SPR INGF IEL D R epresentatives ALBANY LOS AN G E L E S R U TL AN D SC RA NT ON BUENOS AIRES, ARGENTINA 2745 A Century of Achievement When Freeman Hunt in July, 1839, presented to the public the first issue of his “Merchants’ Maga zine,” the United States was recovering from one of those periodic depressions which follow eras of excessive speculation, unwise public policies and errors of judgment on the part of the business com munity. Less than five years previous the national debt, which had been a source of much difficulty, had been finally liquidated. Sale of public lands, from which a large part of national revenue was derived, however, assumed large proportions during the year or two following the extinction of the debt at the beginning of 1835, with the result that huge surpluses arose. As strange as it may sound to 1939 ears, these surpluses presented a problem to the Government which apparently expected them to continue more or less indefinitely, and which after much debate found a way to “ distribute” them to the States. Land speculation grew rampant and was in a sense superimposed upon that incident to the rapid industrial growth of the previous decades. Any restraining influence which might have been exerted by the second Bank of the United States was made impossible by the opposition of the Jack sonian group which then was dominant in national politics and which succeeded first in crippling that institution and then in destroying it in 1836 by refusing a renewal of its charter. Trouble was inevitable. The so-called “ specie circular” of July, 1836, difficulties arising out of the process of “ distributing” the surpluses, and various other causes precipitated the “ panic of 1837,” which, followed as it was by a period of de pressed general business conditions, soon turned the customary annual Treasury surplus into a deficit, which in 1837 amounted to $>12,300,000, and in 1838 to $7,500,000. These figures, of course, appear in significant to the present generation accustomed to Treasury statements carrying astronomical sums, but they take on a different appearance when it is recalled that in 1837 total expenditures of the Fed eral Government amounted only to some $37,244,000, and in 1838 to about $33,865,000. For the year 1839 there was again a surplus due to sharp reduction in expenditures and an increase in cus tom receipts, but deficits immediately again became the rule, and it was not until several years had elapsed that the position of the Treasury grew again reasonably comfortable. The first locomotive built in the United States was the “ America,” shown above, constructed in 1828 by John Stephens & Co. Major Controversies The situation as thus very briefly indicated had by 1839 set in motion several major controversies of national interest and significance. One of them concerned the constantly recurring proposal to re establish a National bank to take the place of the institution that Andrew Jackson had managed to destroy, but it was not until the Federal Reserve Act nearly 75 years later found its way to the statute book that the movement bore definite fruit, albeit the National Bank Act of the 1860’s in some respects was designed to meet the same needs. Another was the question of the tariff. From the beginning customs receipts had been the main reli ance of the Federal Government. The Treasury deficits of the late 1830’s, therefore, present a wel come opportunity for the protectionists who could make use of the need for larger receipts to advocate an increase in protective duties. The manner in which public funds should be kept provided another topic of discussion and controversy, since there was no longer any national institution and local banks varied greatly in the wisdom of their management and in the soundness of their condition. On the whole, the year 1839 fell within a distinctly interest ing period in our economic and financial history. There was obviously ample opportunity for such a magazine as Freeman Hunt envisaged in 1839. To understand how ample the opportunity was it is necessary to take note of the state of seriousminded American journalism at that time. So far as relates to such a periodical as the “ Merchants’ Magazine” the state of affairs in this respect can perhaps be best described in the words of Mr. Hunt himself. In later speaking of the state of the peri odical press in 1839 with reference to his own project, he pointed out that the professions, and a number of the trades, had one or more organs de voted in large part to the more technical aspects of their operations, but that “ commerce (to which word he gave a very broad meaning), more or less connected with all other pursuits, was not repre sented. While the business concerns of commerce filled the huge columns of the daily press with advertisemnets and with shipping intelligence and with matters relating to everyday details of mer chandise on the one hand, there was not a single magazine, of high or low pretensions, either in America or, to the best of our knowledge, in Europe, to represent and to advocate the claims of com merce. There were one or two dictionaries of com merce, and a few works intended for practical pur poses; but a literature of commerce did not exist even in name.” It was to fill this void that the “ Merchants’ Maga zine” was founded in 1839. “ The questions which arise in such extended intercourse with the world (as this country had succeeded in developing),” said Mr. Hunt in announcing the appenranee of his first issue, “ are multifarious and diversified. The knowledge and information necessary to guide the adventures to a successful termination is often complex and difficult of solution; the sources whence it is to be obtained are not always acces(C o n tin u e d o n p a g e 2750) Volume 149 ONE HUNDRED —The Commercial & Financial Chronicle YE A R S OLD — 2747 PENNSYLVANIA STATION, New York W h a t e v e r your travel itinerary, Pennsylvania Railroad meets your every need. From Pennsylvania Station, New York, great air-conditioned fleets of trains speed daily . . . westward to Pittsburgh, Chicago, Cleveland, Detroit, Cincinnati and St. Louis; southward to Washington, the Nation’s Capital; Florida, the Gulf Coast and other Southern points; shoreward to Atlantic City and other famous seaside resorts. Over the shortest route to Chicago and St. Louis Pennsylvania Railroad’s fast through trains make convenient connections with leading trains to San Francisco for the Golden Gate International Exposition and all the West. In terio r o f the sm art O b serva tio n L o u n g e Car on Broadway Limited o f th e P en n sy lv a n ia F l e e t o f M o d er n ism . A p le a sa n t p la c e to w h ile a w a y a n e v e n in g h ou r o n s p e e d in g w h eels. O u t s t a n d in g in design and modern appointments are these great air-conditioned trains of the Pennsylvania Fleet of Modernism: The Broadway Limited (all private room train) and The General between New York and Chicago; "Spirit of St. Louis” between New York and St. Louis . . . Washington and St. Louis; Liberty Limited between Washington, Baltimore and Chicago. By Pennsylvania Railroad, the shortest route, and connecting lines, you can go swiftly, comfortably to any place in the United States, Canada and Mexico. G ia n t strea m lin ed electric lo co m o tive s m ake the run f r o m N e w Y ork v ia P h ila d elp h ia to H arris burg, 1 9 5 m iles, a n d to W a s h in g to n , 2 2 6 m i l e s ... A m e r ic a ’s g r e a te s t e x te n t o f electrified trackage. Pennsylvania Railroad Shortest Route Between East and West. . . The Direct Route to New York World’s Fair . . . Station on Fair Grounds 2748 ONE HUNDRED—The Commercial & Financial Chronicle—Y E A R S OLD Nov. 4, 1939 N EW Y O R K : W IL L IA M B. D A N A , P U B L I S H E R A N D P R O P R I E T O R , Nos. £0 W i l l i a m Lo# ook ; Sa m Low, Bom M Si . , 47 L ow *.** H ill , Chronicle Buildings. & Co** #8 E#w, Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD — — ' S 4*0* C* l C ™ ** n/Tr * e* mv o r *** 8 I * CANS, EQUIP ' * 6 2749 ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939 2750 — — H U N T 'S MERCHANTS’ MAGAZINE. No. I. JULY, 1839. A rt . I. — I N T R O D U C T IO N . I n legal phrase, w e would prefer Being judged b y our acts— and in commercial parlance, being credited with our performances— to m aking promises in advance o f our publication. But custom having rendered it necessary, on the appearance o f a new work, to accompany it with some in dication o f the plan upon which it w ill be conducted, and the objects it is intended to subserve, w e com ply with the requisition.. In the first place, as an excuse for its appearance at all, w e m ay say, that such a publication as the present is imperiously demanded by the wants and wishes o f the commercial part o f the community, and w e believe that such a work, conducted upon enlarged and liberal principles, is calculated to be eminently useful, ana w ill prove highly acceptable, not only to the Merchant, but to all who feel an interest in promoting information on sub jects deeply identified with the wealth, the greatness, and the happiness o f our common country. Commerce is not only a business, but a science, extremely intricate m some o f its developments, and calculated to elevate the mind, and enlarge the understanding, when pursued upon legitimate principles, and with high and honorable views. Essentially and practically a trading people, the commerce o f the U ni ted States has been pushed, by the enterprise o f her citizens, to every part o f the habitable globe — her ships penetrate every ocean, and her canvas whitens every sea, bringing home the varied productions o f every soil and climate, and while rewarding individual enterprise and exertion, adding to the store house o f general knowledge, and increasing the prosperity o f the country. The questions which arise in such extended intercourse with the world, are multifarious and diversified. T he knowledge and information neces sary to guide the adventures to a successful termination, is often complex ana difficult o f solution; the sources whence it is to be obtained are not al ways accessible, and operations are often begun in^ a reckless spirit o f spe culation, and end, as might have been anticipated, in defeat, simply because VOL. i. — n o . i. 1 A Century of Achievement (< o n t i n u e d f r o m C page 2746) sible; and operations are often begun in a reckless spirit of speculation, and end, as might have been anticipated, in defeat, simply because some element necessary to success, or some piece of information essential to the adventure had, in the ardor of pur suit, been disregarded. “ One of our prominent objects will be to raise and elevate the commercial character—to point out the requisites necessary to form the thorough and accomplished merchant. An expensive education, and a long course of study, is necessary to form the statesman, the physician, or the common lawyer; but every clerk seems to think he can at once assume the practical merchant, and spring, ready armed and equipped, into the active business of life, like Minerva from the head of Jove; forgetful that as pretenders in one case soon sink into oblivion and disgrace, he cannot expect otherwise than loss and discomfiture, if wanting the elementary information necessary to success. “ We shall, therefore, from time to time point out the headlands in the commercial chart, and en deavor to mark the quicksands where oftentimes shipwreck has been made, not only of property, but of probity, and that high sense of honor, wanting which, however abounding in everything else, a man may assume the name, and be totally deficient in all that forms the high and honorable merchant.” Becoming somewhat more specific, he further assured the public that “ every subject that can be interesting or useful to the merchant will be em braced from time to time; for it is our intention to (< o n t i n u e d , C on page 2755) ONE HUNDRED —The Commercial & Financial Chronicle—YE A R S OLD Volume 149 AN IN THE INEXPENSIVE BUDGET OF 2751 ITEM CIVILIZATION OPPER has served man for some 5500 years replaced the village blacksmith, there you will find — yet today, as never before, the "red metal” copper and its alloys serving economically and well. C is indispensable to civilization. Continuing the trend started sixty years ago when the great Ana conda mines at Butte, Montana began systematic production at the dawn o f our electrical age, copper in abundance is available to foster new achieve ments in raising our standards o f living. Because o f its adaptability to varied requirements . . . because its rustlessness imparts exceptional durability . . . copper is economical indeed. O f all commercial metals, copper and its many useful al loys combine to best advantage the properties o f high electrical and thermal conductivity, worka Copper’s most vital service is o f course rendered bility, strength and resistance to corrosion. to the electrical industry. For without great quan Copper— A Basic Industry tities o f copper, the growth o f electricity would have been immeasurably retarded. Yet the devel Copper is one o f those basic industries through opment o f new alloys and new products has ex whose development America has prospered greatly. tended copper’s applications far beyond its useful Essential though copper is today to every activity ness as a conductor o f electricity. In our homes o f modern man, much is yet to come . . . through and automobiles, in heating, refrigeration and air continued research and constantly im proving conditioning, even in the welding shops that have methods o f fabrication. 39260 AnacondA from mint to consumer A n a c o n d a C o p p e r M in in g C o m pa n y 25 Broadway New York * jankers’ (Sasfttr, (Sommewial JTiraes, jStaitwag iHanitor, and ffantrautt §m ural A W EEK LY NEW SPAPER, REPRESENTING THE INDUSTRIAL AND COMMERCIAL INTERESTS OF THE UNITED STATES. V O I .. NO. SATURDAY, JULY 1, 1865. 1. L restrictions which a energies. It has also with crippled powers survived those forms o f restric tion which unwise legislation has at times imposed. Let the vast improvements which will be sure to follow the gradual removal o f the latter, prove to the partisans of both that the country has hitherto l>een prosperous in spite o f them, The countr\ has bravely survived the C O N T E N T 8. fatal industrial system once placed upon its T H E CHRONICLE. Late Increase ef Foreign Immigra tion ................................................ Political A>|K*cts o f the National IJ.terature......................................... Debt........................................... Foreign Intelligence....................... T he l*roi»i«l«>nt*!* P o lic v ................. t'oiiiinerclal and Miscellaneous T h e Detroit < .invention............... News......................................... Industrial Kehahllitalion o f the South............................................. The Chronicle.............................. THE RANKERS GAZETTE AND COMMERCIAL TIMES. and liot as some think by reason o f them. 12 The Cotton Trade............................ U Ureailstuflh........................................ Prices Current and Tone o f the M arket........................................... 06 Imports and E xports....................... Bank, Railway and Money Market Bankers Price Current................... Mails.................................................. Commercial Epitom e..................... D ry Goods Trade............................ 90 2* |THE R A IL W A Y MONITOR A N D INSURANCE JOURNAL. Railway and Mining News and I Railway Share L ist......................... Markets.......................................... 2 5 1 Insurance Share L ist................. . IN D E X T O ADVERTISEMENTS. Auction N otices.............................. 61 | Bank Announcem ents,etc............ 27 32 difficulty aud doubt to success and certainty. £|)t CljronicU. T h e C o m m e r c i a l a n d F i n a n c i a l C h r o n i c l e is issued every Saturdati m orning with the latest news by mail and telegraph up to mulnight o f F rid a y. A >a i l y B u l l e t in is issued every m orning with all the Commercial and Financial news o f the previous day up to the hour o f publication. I The Chronicle and D a ily Bulletin are delivered to all subscribers in N ew York C ity per year at . . . $12 00 T o all other subscribers The Chronicle is mailed without the D a ily B ulletin at . . ; . . . « • • • which gates of our vast uatural resources to the toiling masses, who now contend against oppression and poverty in less favored lands, it is necessary that the j>oliey o f the country should be based wholly upon her industrial and commercial interests. These have ever pointed the right, way, and will yet, lead us from To secure this great end, to attain the prosperity thus lies within our reach, and to open wide the 10 00 W IL L IA M B. DAH A St O O , Publisher*, 00 W illiam Street, H ew York. It is not overstating the plain truth to aver that these great interests have never yet found a fitting exponent in the newspaper press of this country. The pursuits o f industry have been looked upon too exclusively in their money mak ing aspects—too little in their social and political ones. The great influence which they have always exercised upon the fortunes of our country and which they must always con tinue to exercise, have been forgotten in the strifes o f petty politicians, and in the heat of personal discussion. No com prehensive paper devoted wholly to the great mercantile and commercial interests, has yet appeared. Taking the entire press of the country together we shall find that these inters ests have to a certain extent obtained public recognition; but in no single journal have they received undivided attention. It is to fill this place in the ranks o f the public press, supply this want, that T he C o m m e r c i a l a n d Fm am o r a l Chronicle aspires. Nor will it stop with the advocacy o f correct principles; but will be in every essential sense a news paper. All that the economist, the merchant, the banker, the manufacturer, the agriculturist, the shipper, the insurer, and the speculator, may need to know in the course o f his daily pursuits, will be found duly chronicled in its colum ns. To this great purpose we apply ourselves. L et the pubUo in due time answer whether or not we have iuooeasftilly ac complished It. T IB CHIONICLE. T he cod of the war, through which the country has just pannni, inaugurates an era of peace and prosperity which only needs wise legislation to find encouragement; and with such a stimulus, natural recuperative energies will soon l>e at work, to heal the wounds our civil strife has made, and to lead us once more" into the paths of industry and af fluence. At no time in our history has the knowledge and diffusion o f commercial truths, and the advocacy of the well defined principles which govern the economy of wealth, been so nctidpfl as now. During the war we have seen one false the* cry after another exploded, and all the wild schemes for pro ducing wealth, faster than the measured action of industrial THE POLITICAL ASPECTS OF T IE NATIONAL H I T . laws will permit, come to naught, until all are convinced that M r . J av C ooke, the agent o f the national loan, has issued value only resides in labor and time. Weary, then, of a con a condo ad populism on the advantages o f a N ational D e b t, stant succession of dearly bought experiences, do we now for which he has been called to take d iv a n sm art raps ov er turn to the teachings of the great leaders in political econ the knuckles front the press. omy for wisdom and guidance, The astonishing sucoess which has attended ths N ational Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD — — REVIEW OF A QUARTER CENTURY A REPORT ON THE PURE OIL COMPANY A quarter o f a century ago, the chance discovery o f high-grade crude oil in the little mountain town o f Cabin Creek, W est Virginia, led to the formation o f The Pure O il Company. The past twenty-five years have seen the growth o f this company to a position o f major importance in the petroleum industry. Producing operations, in a care fully planned expansion program, have extended to nine states. A n d so conserva tively have these fields been exploited that Pure O il holds an unusually strong position in crude oil reserves. N or have other phases o f activity in the industry been neglected in Pure O il’s years o f progress. Six modern refineries . . . control laboratories for petroleum research . . . a co-ordinated transportation system with marine, railway, pipe-line, and motor facilities . . . and 15,000 dealers in a well-established marketing organi zation enable Pure O il to control the quality o f its products from oil well to service station. M otorists in thousands o f communities rely on Pure O il dealers and the branded products they handle. Th e blue-and-white Pure Seal on every pump and can has become a seal o f acceptance for quality petroleum products. For modern motoring, as well as modern industry, has learned to "B e Sure . . . with Pure.’ ’ T H E P U R E O I L C O M P A N Y , U. S. A. 2753 ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD Nov. 4, 1939 2754 — — m i L E S I O n E S in H ISTO R V O NE HUNDRED YEARS is a long time — longer than any man's span of memory. We congratulate our friends of the Commercial and Financial Chronicle upon attaining that distinguished age. We ourselves feel comparatively young as we enter upon our Fiftieth year. The Chronicle was halfway along the road leading to the century milestone when in 1890 this bank opened its doors for business. Memory of living man can still reach that far. Time has brought many changes, how ever; and some of them are reflected in the two Statements of Condition compared below: First published Statement of the Citizens Bank: (Organized 1890 — Nationalized 1901) AT E S Ttion EfMthe N T o OF C IT IZ E N S ’ THE Condensed Statement of Condition at close of business October 2, 1939: CON DI- RESOURCES B A N K Cash and Due from Banks........................................ $ 37,704,526.33 United States Obligations, Direct or 36,194,980.99 Fully Guaranteed................................................... State, County, and Municipal Bonds...................... 4,904,549.12 Other Bonds................................................................ 1,676,054.74 Loans and Discounts................................................. 47,002,943.66 Federal Reserve Bank Stock...................................... 246,000.00 Stock in Commercial Fireproof Building Co__ Head Office Building............................................. 348,500.00 Bank Premises, Furniture and Fixtures, and Safe Deposit Vaults (Including Branches)......... 999,132.80 Other Real Estate Owned........................................ 1,467,637.01 Customers' Liability under Letters of Credit 123,679.11 and Acceptances................................................... Earned Interest Receivable...................................... 340,647.89 Other Resources.........................................................________530,174.76 Of Los Angeles, Cal., January 1st, 1891. RESOURCES. Mortgage, loans and bills............... $130,960 00 Due from banks................................ 17,951 7* Premiums paid ............................... 99 00 Furniture and fixtures..................... 80780 Expenses and taxes paid................. 79) 18 Cash on hand................................. 15,634 80 $166,248 56 L IA B IL IT IE S . Capital paid u p ............................... $126,000 00 1,515 53 Undivided profits .......................... Certified checks................................ 129 24 Due depositors.................................. 38,60379 (3eal) $166,248 56 The State of California.County of Los Ange* les. We do solemnly swear that we have (and each o f us has) a personal knowledge of the matters confained in the foregoing state ment, and that every allegation and state ment therein contained is true to the best of our knowledge aDd belief. T. S. C. LO WE, Piesident. F. D. HALL; Assistant Cashier. TO TA L................................................................ $131,538,826.41 LI ABI LI TI ES Subscribed and sworn to before me, this 3rd day of January, 1891. (Seal) FRANK M. KELSEY, 1-5 10 Notary P u b lic. Capital Stock.......................................$5,000,000.00 Surplus................................................. 3,200,000.00 Undivided Profits............................... 1,150,000.00 $ 9,350,000.00 Reserves for Interest, Taxes, Contingencies, Etc.. . 966,399.85 Letters of Credit and Liability as Acceptor or Endorser on Acceptances & Foreign B ills........... 140,293.26 Other Liabilities.......................................................... 10,620.72 Deposits....................................................................... 121,071,512.58 TO TA \................................................................... $131,538,826.41 CITIZENS N TIO A A NL TRUST AND SAVINGS BANK OF LOS ANGELES MEMBER FEDERAL RESERVE SYSTEM AND FEDERAL DEPOSIT INSURANCE CORPORATION Volume 149 ONE HUNDRED —The Commercial Financial Chronicle — YE A R S OLD 2755 Complete Services for Financing Imports and Exports from and to Italy and everywhere BANCO d i NAPO LI T R U S T C O M P A N Y O F N E W Y O R K M E M B E R F E D E R A L D E P O S IT IN S U R A N C E A Century of Achievement ( C o n t in u e d f r o m p a g e 2750) render the “ Merchants’ Magazine and Commercial Review” (this more lengthy title appears to have been used more or less interchangeably with the shorter title the, “ Merchants’ Magazine” ) a stand ard work on the subjects to which it will be devoted, so that it may be referred to with certainty and confidence, for counsel and direction in the various questions arising in commercial affairs. Currency, exchanges, banking, commercial and marine law, partnerships, agencies and statistical information, commercial and manufacturing, will have onr special attention, as well as the domestic trade of the United States; and we are happy at being enabled to say, with confidence, that we have secured able and talented assistance in the various departments of our work, and the whole will be under our immediate supervision.” C O R P O R A T IO N Thus and in these circumstances the enterprise which today publishes the weekly “ Commercial & Financial Chronicle” and its numerous allied vol umes at less frequent intervals was launched. What a different world this was!' How vastly different, and in some respects more difficult, were the prob lems an editor had to face! For us who take the automobile moving on a vast network of improved roads, the airplane, the telegraph and cable, the wireless, and a thousand and one other instruments and devices for granted, to say nothing of modern railroads, steamships, automatic machinery of a thousand varieties, new products from the labora tories of the past century, but particularly of the past two or three decades, almost endless sources of information concerning all these things, it will be informative to pause for a few moments at this point and consider what the United States, and the world, for that matter, was like in 1839. The United States in 1839 The thoughtful reader need not go further than the files of the “ Merchants’ Magazine” for an excel lent bird’s-eye view of this country a hundred years ago. Freeman Hunt felt great and quite justifiable pride in the progress this country had made in the half century that preceded the founding of the pub lication which was to become his monument. He said in introducing his magazine that “ essentially and practically a trading people, the commerce of the United States has been pushed, by the enterprise of her citizens, to every part of the habitable globe—her ships penetrate every ocean, and her canvas whitens every sea, bringing home the varied pro ductions of every soil and climate, and while re warding individual enterprise and exertion, adding to the storehouse of general knowledge, and increas ing the prosperity of the country.” Progress cer tainly had been noteworthy. Charles F. Adams, writing in the very first issue of “Hunt’s” was able to introduce an article on “ The State of the Cur rency” with the following summary statement: “ It is now half a century since the great impulse given by the organization of an efficient system of general government to the commercial energies of the United States was first communicated. The period of time which has elapsed has been full of important public events; many of them by no means favorable to the full development of our prosperity. There have been wars, embargoes, a depreciated paper currency, and an irregular national policy, to contend with, in almost every country with which we have had relations, as well as in our own. Yet notwithstanding all these obstacles the progress of the United States, as a commercial Nation, has been almost uniform. The exports of the country, which in 1790 hardly equaled in value the sum of $20,000,000, have gone on increasing until they now amount to $100,000,000 annually. Our population, which at the former date scarcely numbered 4,000,000 souls, cannot at the present moment be estimated below 16,000,000; while the wealth of the community, if it can be at all measured by the amount of currency it sets in motion, must be allowed to have enlarged even in a greater propor tion still.” (.Continued on page 2756 ) ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD Nov. 4, 1939 2756 — — Pennsylvania Water Power Company H y d r o -S t e a m - E l t c t r i c D e v e l o p m e n t o f P e n n s y lv a n ia W a t e r & P o w e r C o . o n S u s q u e h a n n a R i v e r a t .H o l t w o o d , P a . Generates electricity by water power and steam at its develop ment on the Susquehanna River at Holtwood, Pa. Owns and operates a regional, high tension transmission net work, geographically integrated with public utility systems in terri tory adjacent to its plants, and heavily interconnected by transmission lines with major utility groups on Atlantic Seaboard. Sells entire output in bulk to public utilities in Lancaster, York and Coatesville, Pa., and Baltimore, Md. and, on a regional basis to Pennsylvania Railroad for operation of important sections of its electrified freight and passenger lines. Began operation in 1910. dividend was paid in 1914. Unbroken dividend record since first Pennsylvania Water G Power Company sf HOLTWOOD, PA. A Century of Achievement ( C o n tin u e d , fr o m p a g e 2 7 54) Yet it must be admitted that sucli statements as these, and many more with which the early issues of “ Hunt’s” are crowded, while without question establishing the fact of great progress achieved, serve also to impress the modern mind most forcibly with the fact that there was an almost incredible amount of work still to be done before the world began even to approach the appearance to which we are accustomed— and to the professional jour nalist at least reveal in a striking way the difficul ties with which those early publishers and editors were obliged to contend. Turn first to the vital matter of transportation and intercommunication. Railroads had appeared in this country about a decade prior to the appearance of the first issue of “ Hunt’s,” and had been steadily if not rapidly pro gressing and improving. They had by 1839 reached a stage to cause the generation of that day to swell their chests with pride, and to enable the more for ward-looking to envisage something of what they were destined to do for the country. But judged by 1939 standards what railroads they still were!' Railroads in 1839 An early issue of “Hunt’s” carried a leading article entitled “Railroads of the United States.” As was the custom of the magazine, an obviously well-informed writer was chosen for the task, and space was not withheld from him. In the belief that this exposition at once most admirably por trays the enterprising spirit of that day and most informingly reveals what transportation and travel were like, we extract certain extraordinarily inter esting passages from it herewith: “ Were it to be asked,” the author begins, “ what is the most distinguishing feature which marks our Republic, a ready answer might be given: it is the productive enterprise of the people. Within the period of a little more than half a century of selfgovernment, what monuments has it erected around us T We have indeed no gorgeous temples and gigantic pyramids, no crumbling halls of paintings and statues dim with age, the work of our own hands, no catacombs, the burial places of kings, the date of whose erection is lost in the lapse of ages, and through whose winding labyrinths the hyena prowls and the bat flits in the darkness. But we have, under the fostering hand of the local govern ments of our most important States and individual enterprise, dug through plains, hills and solid locks, in our long lines of canals and railroads, works that have stamped upon the soil a lasting im pression, which, if the Republic were swept away, and all records of its existence blotted out forever, would be viewed by posterity with the same wonder with which we now gaze upon the moldering ruins of Rome, the marble temples of the Acropolis, the pyramids of Egypt, and the track of the Appian Way.” Then follows a lengthy account of the railroad lines already operating or under construction, together with the lines of future development either already planned or certain to be chosen. These latter have now long ago been realized and become commonplace. The status of the development at (Continued from page 2758 ) Volume 149 ONE HUNDRED —The Commercial & Financial Chronicle—Y E A R S OLD P X UBLIC UTILITIES are having their ups and dow ns" you hear. But in the "u p s and dow ns" of 2757 of public con cern , the price of electricity to the people, stands as a resounding "D O W N ". costs and prices, the benefits are , This "D O W N ", today the lowest all in favor of the one interested in history, is contributed to the party uppermost in the minds of people as an econom y of public- private utility management: the minded, experienced and reliable consuming public. private management. In this day The "U P S " is the cost of opera of soaring taxes and high living tion, wages, materials, taxes, and expenses, what else gives you so barriers in duced by legislation. many "extra values' 7 for the same Despite this, the ultimate point or less m oney? The Commonwealth & Southern Corporation MICHIGAN • ILLINOIS • INDIANA • OHIO • PENNSYLVANIA • ALABAM A FLORIDA • GEORGIA • MISSISSIPPI • SO. CAROLINA ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939 2758 — — IMPERIAL BANK OF CANADA HEAD OFFICE: A . E. P h i p p s , President TORONTO H . T . Jaffray, General Manager Branches throughout Canada; banking connections and correspondents in all commercial countries. 29 branch offices in the mining areas of Northern Ontario and Quebec. A Century of Achievement ( C o n tin u e d , fr o m page N am e and TABLE OF THE P R IN C IP A L RAILW AYS IN OPERATION IN THE U N ITED STATES IN 1840 W h en O pened— C o urse— L en g th in M ile s M a in e — Bangor & Orono (1836)_________ From Bangor to Orono__________ 10 ................ ...................... 10 Nashua & Lowell (1838)_________ Nashua to Lowell_______________ 15 Total length in State. N ew H a m p s h ire — Total length in State M a ssa ch u setts— Quincy (1827)__________________ Quincy Quarries to Neponset River Boston & Lowell (1835)_________Boston to Lowell________________ Andover & Wilmington (1836)___Andover to the Boston & Lowell Railroad_____________________ Andover & Haverhill (1838)____ Andover to Haverhill____________ Boston & Providence (1835)-------Boston to Providence___________ Dedham Branch (1835)_________ Boston & Providence R R . to Dedham_____________________ Taunton Branch (1836)_________ Boston & Providence R R . to Taunton_____________________ Boston & Worcester (1835)_____ Boston to Worcester____________ Western R y. (1839)_____________ Worcester to Springfield Worcester & Norwich (1839)____ Worcester to Norwich___________ Eastern R R . (1839)_____________ Boston to Newburyport________ Total length in State________________________________________ R h od e Island— Providence & Stonington (1837).-Providence to Stonington_______ Total length in State________________________________________ C on n ecticu t— Hartford & New Haven (1839)---- Hartford to New Haven________ Housatonic_____________________ Bridgeport to New M ilford______ Total length in State________________________________________ New Y ork— 'M ohawk & Hudson (1832)_______ Between the rivers Mohawk and Hudson______________________ Saratoga & Schenectady (1832)---- Saratoga to Schenectady________ Rochester (1833)________________ Rochester to Carthage__________ Ithaca & Oswego (1 8 3 4 ).. ____ Ithaca to Oswego_______________ Rensselaer & Saratoga (1835)____Troy to Ballston________________ Utica & Schenectady (1836)_____ Utica to Schenectady____________ Buffalo & Niagara (1837)_______ Buffalo to Niagara Falls________ Harlem (1837)__________________ New York to Harlem. Lockport & Niagara (1837)______ Lockport to Niagara Falls Brooklyn & Jamaica (1837)_____ Brooklyn to Jamaica________ Auburn & Syracuse____________ Auburn to Syracuse_________ Catskill & Canajoharie__________ Catskill to Canajoharie______ Hudson & Berkshire_____________Hudson to the boundary of Massachusetts____________ Tonawanda_____________________ Rochester to Attica_______ 15 4 26 71 10 41 2 11 45 54 59 36 295 % 47 47 16 16 Total length in State________________________________________ Virginia— C h esterfield ..._________________ Richmond to Chesterfield coal mines________________________ Petersburg & Roanoke__________ Petersburg to Blakely on the Roanoke_____________________ Winchester & Potom ac__________ Winchester to Harper’s Ferry____ Portsmouth & Roanoke__________ Portsmouth to Weldon_________ Richmond Fredericksburg & Potomac______________________Richmond to Fredericksburg____ Manchester_____________________ Richmond to coal mines________ Total length in State________________________________________ 86 30 34 X 40 59M 249 M 13 59 30 77)4 58 13 250)4 S o u t h C a r o lin a — South Carolina R R . (1833)______ Charleston to Hamburg on the Savannah____________________ Total length in State________________________________________ G e o r g ia — Altamaha & Brunswick_________ Altamaha to Brunswick________ Total length in State_________________________________________ A la b a m a — 136 136 12 12 Tuscumbia & Decatur___________Mussel Shoals, Tennessee R iv e r .. 46 Total length in State_________________________________________ 46 L o u is ia n a — Pontchartrain (1831)____________ New Orleans to Lake Pontchartrain_________________________ Carrollton_______________________New Orleans to Carrollton______ Total length in State_______________________________ 5 6 11 Lexington & Ohio_______________Lexington to Frankfort. Frankfort & Louisville__________ Frankfort to Louisville- 29 50 Total length in State____________________________________ 80 Total length (in miles) in United S ta tes... . . _____________....2 ,2 7 0 16 22 3 29 24)4 77 21 7 24 12 26 68 30 45 Total length in State________________________________________ Pennsylvania— Columbia_______________________ Philadelphia to Columbia_______ Alleghany______________________ Hollidaysburg to Johnstown over the Alleghanies_______________ Mauch Chunk (1828)___________ Mauch Chunk to the coal mines. . Room Run______________________Mauch Chunk to the mines______ Mount Carbon (1830)___________ Mount Carbon to the mines_____ Schuylkill Valley________________Port Carbon to Tuscarora, with numerous branches__________ Schuylkill_______________________________________________________ M ill Creek______________________ Port Carbon to Mill Creek______ Minehill & Schuylkill............................................................................ Pine Grove______________________Pine Grove to coal mines________ Little Schuylkill (1831)__________Port Clinton to Tamaqua_______ Lacka waxen____________________ Lackawaxen Canal to the river 128 Westchester (1832)______________Westchester to Columbia R R ____ Philadelphia & Trenton (1833)___Philadelphia to Trenton________ Philadelphia & Norristown (1837)-Philadelphia to Norristown_____ Central Rjr______________________Pottsville to Danville---------------Philadelphia & Reading_________ Philadelphia to Reading________ Philadelphia & Baltimore________ Philadelphia to Baltimore_______ - Total length in State__________________________________ M aryland— Baltimore & Ohio (1835)________ Completed to Harper’s Ferry, with branches________________ Winchester______________________Harper’s Ferry to Winchester____ Baltimore & Port Deposit_______ Baltimore to Port Deposit______ Baltimore & Washington (1835)..Baltimore to Washington_______ Baltimore & Susquehanna (1837)-Baltimore to York______________ 40 40 404)4 L en g th in M ile s C ourse— K e n t u c k y —- Total length in State________________________________________ New Jersey— Camden & Amboy (1832)_______ Camden to Amboy______________ Paterson (1834)_________________ Paterson to Jersey City_________ New Jersey (1836)______________ Jersey City to New Brunswick___ Morris & Essex_________________ Morristown to Newark_________ Total length in State. O pened— Newcastle & Frenchtown (1 8 3 2 )..Newcastle to Frenchtown. 2756) the time that the “ Merchants’ Magazine” was in its infancy can, we believe, be best portrayed for the present day reader by the following tabulation care fully prepared by the author of the article in ques tion and presented herewith: N am e and W hen D e la w a r e — 61 16 H 31 20 82 36 5 5M 7fi 30 13 7 20 4 23 16)4 9 26 y 2 19 51)4 40)4 93 489 79 LIST OF THE OTHER RAILW AYS NOW IN PROGRESS IN THE U N ITED STATES N am e— C ourse— L en g th in M ile s New Ham pshire— Haverhill & Exeter______________ Haverhill to Exeter______ ______ 18 Newburyport & Portsmouth_____Newburyport to Portsmouth____ 24 M assachusetts— Old Colony______________________Taunton to New Bedford_______ 20 Western_________________________Springfield to New York line____ 63 C on n ecticu t— Western________________________ Hartford to S p rin g fie ld ...._____ 27 New Y o r k Long Island_____________________ Jamaica to Greenport___________ 50 New York & Erie_______________ New York to Lake Erie__________ 505 Saratoga & Washington_________ Saratoga to Whitehall___________ 41 New Jersey— Elizabethtown & Belvidere______ Elizabethtown to Belvidere_____ 60 Burlington & M ount H olly______ Burlington to Mount Holly_____ 7 Pennsylvania— Oxford__________________________ Columbia R R . to Port D ep osit.. 38 Tioga___________________________ Chemung Canal to Tioga coal mines________________________ 40 V irginia— Greensville & Roanoke___________________________________________ 18 S outh C arolina— Charleston & Cincinnati________ Charleston to C in c in n a t i........ 500 G eorgia— Augusta & Athens_______________ Augusta to Athens______________ 100 Macon & Forsyth_______________ M acon to Forsyth______________ 25 Central R R _____________________ Savannah to M acon____________ Alabama— Montgomery & Chattahoochee__________________________________ _ 90 Mississippi— Mississippi R R __________________ Natchez to Canton________ _____ 150 K en tu cky— Bowling Green & Barren River___Bowling Green to Barren R iv e r.. 1H O hio— M ud River & Lake Erie_________ Dayton to Sandusky____________ 153 Sandusky & Monroeville_________Sandusky to Monroeville________ 16 M ichigan— Detroit & St. Joseph____________ Detroit to River St. Joseph_____ 200 200 Total length_________ ________________________________________ 2,346)4 (Continued on page 2760) ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD — Volume 149 — 2759 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ How the Community Benefits from Consolidated Edison’s U l O I - D O U i t - i t - W H TAXES See how New York’s share ($29,200,000 a year) helps to run the City HE MONEY which your utility companies pay out in taxes comes from the public and goes back to the public to help maintain the essential services o f government. It is a substantial part of your regular bill for utility service. T For the year 1938, our taxes were more than $51,000,000, or nearly$l,000,000 a week .. . not including the New York City Sales Tax on the public’ s use o f utility service or pur chase of appliances. Of this tax bill o f $51,000,000, over 55%, or $29,200,000, goes directly to the City of New York. How this great sum contributes to the welfare o f the community, you can * easily see from the familiar examples in the illustrations above.* In the past ten years our taxes have doubled —a 100% increase! In the year 1929, taxes took 11^ of every dollar that our customers spent for electricity, gas or steam. In 1937, this figure had risen to 210, and in 1938 to more than 210. But despite rising costs, the rates paid for our service have continued to come down. Successive reductions are saving our custo mers in New York and Westchester about $49,000,000 this year, compared with what they would have paid at 1929 rates for their present use o f electricity and gas. On top o f the taxes that go to the City o f New York, we also pay State, Federal and other taxes at the rate o f more than $419,000 a week— a total o f $21,800,000 a year. Based on “ The City o f New York Budget fo r 1938 ” mm m m mm i i M t State, Federal, and Other Taxes, Too! i ■ m pm y a *n a y . NEW YORK & QUEENS ELECTRIC U G H T & POWER COMPANY • BROOKLYN EDISON COMPANY, INC. • WESTCHESTER U O H TIN G C O m Pa n THE YONKERS ELECTRIC LIGHT & POWER COMPANY • NEW YORK STEAM CORPORATION i 2760 ONE HUNDRED—The Commercial & Financial Chronicle—Y EAR S OLD Nov. 4, 1939 A Century of Achievement Q C o n tin u e d f r o m r# Visit tropic shores that gleam like gems against the blue Caribbean. Each sunny port presents an endless chain of absorbing interest— gayety, color, variety. Each hour aboard your smart white American Flag liner is as delightful as Great White Fleet hospitality, engaging company can make it . . . with an outside, first class stateroom, outdoor pool . . . a gay orchestra, sound movies and unrivalled menus. * * * * E v e r y S a tu r d a y there’s a cruise from New York to Costa Rica with 2 calls at Havana, and a visit to the Panama Canal Zone (15 Days, $175 up). . . . E v e r y W e d n e s d a y a cruise to Barranquilla and Cartagena, Colombia, S. A ., with 2 calls at Kingston, Jamaica, B. W . I., and a visit to the Panama Canal Zone (15 Days, $175 up). . . . A l t e r n a t e S a tu r d a y s , tours to the Highlands of Guatemala with calls at San page 2753) Some idea of the problem of travel or shipment of goods over considerable distances by use of this disjointed series of railroad lines will readily be obtained from the following account (taken from the same article) of certain lines ont of Boston in the direction of New York City. “ The first section of what we shall denominate the Atlantic RE. line,” says the author, “ extends from Boston to Norwich in the State of Connecticut, and also from the former city to Stonington in the same State. The line of the Boston & Worcester RR. runs through a beautiful though broken coun try, highly cultivated, although not remarkable for its fertility, for the distance of 44 miles to the flour ishing inland town of Worcester. Here it meets the Norwich RR., that extends a distance of 5S miles through a picturesque and broken territory, enlivened by pleasant farm houses, a very large number of manufacturing villages, which are upon its immediate borders, and by numerous waterfalls, which, from the speed of the cars, seem to glance in the sun in continuous succession, like some scene of enchantment. At Norwich the line unites with steamboat navigation, and furnishes a rapid con veyance to the city of New York. The other line to which we have alluded as running from Boston to Stonington combines like advantages, both on account of the directness of the route to the steam boat navigation of Long Island Sound, and from the fact that it passes through some of the most flourishing towns of Massachusetts, including Dedham and Roxbury, to the manufacturing capital of Rhode Island, the city of Providence. Its length to that city is 47 miles, and it furnishes a certain and safe mode of travel and transportation from Boston to New York, through Long Island Sound, which, of course, is always open to navigation, even during the winter. From Stonington a most con venient line of travel will be furnished by the Long Island RR., 27 miles of which are now completed. This track is laid out along the whole extent of that island, and commencing at the South Ferry in Brooklyn, will terminate at Greenport, upon the shore of the Sound.” Railroad Travel Strange as it may sound to modern ears, the railroads in 1S39 were subject to the same fears on the part of the public as the airplane sometimes is today. So much so that the author of the article from which these citations have been taken felt it necessary to give consideration to the safety of em ploying railroads as means of travel. “ The next consideration which naturally comes before the tiago, Cuba, and Puerto Cortes, Honduras, with two weeks mind in measuring the advantages of railroads, com exploring highlands of Guatemala all in the fare (26 days, pared with other means of transportation,” says all expenses, $263 up). Ask about other services from New the author at one point, “ is their danger, contrasted York, Philadelphia and New Orleans. with other roads. To be driven along through plains and valleys, sometimes within three inches S lig h t ly h ig h e r W i n t e r f a r e s e ffe c t iv e D e c . 1 6 A p p l y a n y A u t h o r i z e d T ra v el A g e n t o r U n i t e d of jaggy points of rock, at the rate of 25 miles an F r u i t C o m p a n y , P i e r 3 , N . R . , o r 6 3 2 F i f t h A v e . , hour (but more generally at the rate of 15 miles) N . Y. O f fi c e s a ls o i n C h ic a g o , N e w O r l e a n s , often verging near the borders of deep rivers or P h ila d e lp h ia , B o s to n , a n d W a s h in g t o n , D . C . steep ravines, by the power of strong engines, which, if they should run off of their narrow track, would be as unmanageable as the steed of Mazeppa, and much more terrific in their struggles, is a matter, { •Continued on page 2762 ) 149 ONE HUNDRED —The Commercial & Financial Chronicle—Y EAR S OLD 2761 "W e are going straight 0 'N E might conclude, from hearing people talk, that this country is built, that its opportunities are gone, its resources exploited. Not one word of that is true! U.G.I. believes, in its particular field at least, that the job is far from finished. Opportunities are limited only by fear and hesitation. The future is bright for those who will not permit tem porary inequities of taxation or restriction, temporary business nose-dives to blind their eyes to these facts: We five in a land that is under-populated, under-developed, a land that needs look to no other land for raw materials or markets. We live under a system o f government established by our forefathers on the basis of equalitv. Only in America do the masses constitute the major markets for luxuries as well as necessities. We live with people who are going places. U. G. I. is going straight ahead. It has an under taking— as binding as a written and sealed contract— to reward its stockholders with reasonable earnings, its customers with service, its employees with jobs, the general public with the wide and far-flung benefits of business well-managed, work well done. In a country such as this, it is conservative to be progressive. THE UNITED COMPANY GAS IMPROVEMEN Dedicated to Better Public Service Since ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD Nov. 4, 1939 2762 — The forerunner of the present-day mail order houses that so well supply the rural communities was the peddler, whose visits, before and after the Civil War, became an event in all rural communities. A Century of Achievement (iC o n t i n u e d fro m page 2760) the danger of which is to be well weighed before it is quietly submitted to; and in order to adjudge the risk, we have only to compare it with that of ordinary roads. The common roads, it is well known, cannot be traveled without the chances of accident, attended with injury. For example, the common road is often rough, and filled with ob stacles; the carriage to which the horse is attached may break down or be upset; or the buckles and straps which confine him may give way and affright the animal; or the carriage, placed high upon its axle, may be overturned. On the other hand, the railroad cars, which in England ordinarily travel 25 miles an hour, and in this country 16 miles, are, in the first place, perhaps more dangerous from this very momentum. The boiler may explode, the car run off its track, or a mischievous boy may place an obstacle which will obstruct the passage of the cars, or remove one of the bars; the train may crash against the points of rock that constitute the walls of its tunnels, or rush off one of the steep embank ments which border it. Yet the engines, boiling with ambition, and seemingly with rage, have no latent passions like those of the frightened or mad dened horse; the track is a level track, easily to be coursed by the naked eye, for a long distance, and the engines are usually provided with large shovels, which throw off from the path any obstacle which might oppose its progress. Besides, the engine at full speed can be stopped, at the distance of 200 yards; and even were the cars demolished bv con cussion. the train behind would, if it kept upon the track, sustain only a temporary shock or delay.” Transportation by water had of course made great progress, but still left much to be desired. Extended systems of canals had been constructed in the vari ous States, and the natural waterways were assidu ously plied with vessels many propelled by steam, albeit by the relatively crude application of steam power known and employed in that day. As to trans-Atlantic travel the appearance of the first issue of the “ Merchants’ Magazine” was contempo raneous with the beginning of the use of steam. In an article devoted to the history and the then exist ing status of American steam navigation a writer in the course of an article appearing in Hunt’s in 1841 at one point said: — “ Yet, notwithstanding the voyage of the boat of Mr. Stevens around the coast, in 1807, and that of the Savannah across the ocean, in 1817, the regular and systematic navigation of the ocean was deemed, at best, a doubtful experiment. Even scientific mechanical philosophers, as late as the year 1838, strove to demonstrate the entire impracticability of the project. The crowning triumph of steam was yet to be accomplished. On a vernal morning in the month of April, the Sirius left a British port, and was steered straight across the Atlantic, that steam has contracted to the dimensions of a mill-pond. Fifteen days afterwards, wreaths of curling smoke were perceived moving along the sky above the Nar rows, and passing up the bay, were found to pro ceed from that steamer, bringing fresh news from London. The Great Western, the Royal William, the Liverpool, and the British Queen, followed close upon its track. On the fourth of July, 1839, (a fit ting day), a contract was signed between Mr. Samuel Cunard and the British Admiralty, for the transit of letters from Liverpool to Halifax, and a short time afterwards, the Unicorn, succeeded by the Britannia, the Caledonia, the Acadia, and the Columbia, sailed into the port of Boston, bringing tidings that the ocean thenceforward was to be a short mail-road. Whereupon, the Royal Steam Navi gation Company of Great Britain commenced the hewing of the timbers for a line of steamships for New Orleans, Mexico, and a part of the South Amer ican coast; and our American ship-builders, having completed a steamship for his majesty the Emperor of Russia, and another for the Spanish government, are preparing to lay the keels of four steam-vessels, each to be of two thousand tons burden, and only eight hundred horse power, two hundred greater than the President. Kindled by the enterprises of other nations, the slow-miving French, in the cause of internal improvement, began to bestir themselves, and will soon have a line of steam-packets between New York and Havre. Steam had conquered the ocean. It was thenceforward to be a ferry; not ‘the ancient and accustomed ferry’ of the respected Gov ernor Ogden, between Elizabethtown Point and New York, but the modern and accustomed ferry between New York and London!” These then latest in steamships were, however, obviously not of the modern variety as may well be seen from the following note taken from Hunt’s showing the time they consumed in crossing: Passages of the Steam ] Ships “ We published in the ‘Merchants’ Magazine’ for August, 1839, all the passages of the steam ships ( C o n tin u e d , on page 2764) The “ Empire-Troy” was in 1850 the pride of the steam ship line plying between New York and the now famous industrial up-State city. Volume 149 ONE HUNDRED —The Commercial & Financial Chronicle YE A R S OLD — Felicitations to tne C m e ia a d F a c l C r n le o mrc l n in n ia h o ic On the Occasion of Its Hundredth Anniversary of Accomplishment Public Service Corporation o f New Jersey 2763 ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939 2764 — — PA SSA G E S O F T H E L IV E R P O O L T o N ew Y ork Sailed F eb . 6 A pr. 20 June 13 A u g. 1 Sept. 21 N o v . 16 Alexander Graham Bell, seated, inventor of the tele phone, opens the first New York-to-Chicago line in 1892. Arrived Feb. 25 M ay 7 June 30 A u g. 18 O ct. 7 D e c. 5 T o L iv e r p o o lJ Days 18H 16% 16 % 17 16 18% Sailed M ar. 9 M ay 18 July 6 A u g. 24 O ct. 19 D e c. 15 Arrived M ar. 25 June 1 July 20 Sept. 8 N ov. 6 Days 16 14Ji 13 V, a 14M 17J4 “ The Liverpool has 18 hours’ steaming farther to go than either the Great Western or the British Queen. “ The passages to New York averaged 17 days and four hours each. The longest was made in 18 days and 12 hours, and the shortest in 16 days. “ Those to Liverpool averaged 15 days and 16 hours. The shortest was made in 13 days and threequarters, and the longest in 17 days and 12 hours. “ The fact of the matter is, however, that the vast bulk of the transportation both of goods and pas sengers was still done by the sailing vessels. How speedily they crossed the ocean may be seen from the following table appearing in the first issue of Hunt’s : Navigation L iv e r p o o l P a c k e t s — A C o m p a r a t i v e T a b l e o f t h e P a s s a g e s o f t h e D i f f e r e n t S h ip s o f t h e S e v e r a l L in e s o f L i v e r p o o l P a c k e t s O LD L IN E P A C K E T O u tw a r d P assa ges A Century of Achievement ( C o n tin u e d fr o m page 2762) Great Western, Liverpool, and Royal William, show ing the time of their departure from, and arrival at, each port, beginning with April, 1838; we now give, from Bennett’s ‘Herald’, all the passages of the Great Western, British Queen, and Liverpool, for the year 1839: PASSAGES O F T H E G R E A T W E S T E R N T o B r is t o l T o N ew Y ork Sailed Jan. 28 M ar. 23 M ay IS July 6 A ug. 24 O ct. 19 Arrived Feb. 16 Apr. 14 M ay 31 July 22 Sept. 10 N ov. 2 Days 18 21% 13 15^ 16H 14^ Sailed Feb. 25 A pr. 22 June 13 A u g. 1 Sept. 21 N o v . 16 Arrived M ar. 12 M ay 7 June 27 A ug. 13 O ct. 4 N o v . 30 Days 15 14^ 12« 12M 13 13H “ The passages from England average 16 days and a half each, and the whole time occupied in making six western passages was 99 days and a quarter. The shortest was made in 13 days, and the longest in 21 and a half. “ The passages hence to Bristol averaged 13 days and nine hours each. The longest was in 15 days, and the shortest in 12 and a quarter. The six eastera passages were made in 80 days and 12 hours. “ By two of the passages, passengers and des patches reached Paris, by the way of England, on the 15th day after leaving New York. They also arrived in London and Liverpool on the 13tli day. PASSAGES O F T H E B R IT IS H Q U E EN T o P ortsm ou th T o N ew Y ork Sailed July 12 Sept. 3 N ov. 3 Arrived July 27 S ept. 20 N ov . 23 Daus ay* 17 20 M Sailed Aug. 1 O ct. 1 D ec. 2 Arrived Aug. 14 O ct. 15 D ec. 25 Days 18% 13« 22% “ The shortest passage from England was made in 11 days and 21 hours; the longest in 20 days and nine hours. The shortest passage hence was per formed in 13 days and a half, and the longest in 22 and a half. If we calculate the time, however, when she arrived off Portsmouth, the passage was made in 21 days and 11 hours. “ The western passage averaged 17 days and eight hours each. Those made to the eastward, 16 days and 11 hours. “ On her first voyage she arrived here on the 27th of July, discharged about 1,000 packages of goods, besides baggage, reloaded cargo, took in 755 tons of coal, stores for 113 passengers, and was ready for sea on the 31st of the same month—four days’ work. From 1st N o v . 1837 to 1st N o v . 1838 Sailed Arrived Days England_________N o v . 1 N o v . 17 16 Orpheus_________ N o v . 16 D e c. 4 17 C a m b rid ge_____ D e c. 3 D e c. 22 19 O xford__________ D e c. 16 Jan. 4 19 N orth A m e rica ..J a n . 2 Jan. 27 25 27 Europe_____ ____ Jan. 16 Feb. 12 Colum bus______ F eb . 1 Feb. 26 25 South A m e rica ..F e b . 17 M ar. 7 18 England________ M ar. 3 M ar. 24 21 Orpheus________ M ar. 19 A p r. 9 21 C a m b rid ge_____ Apr. 2 A pr. 24 22 O xford__________A pr. 16 M ay 10 25 N orth A m e r ic a ..M a y 1 M a y 24 23 Europe_________ M a y 16 June 9 24 Colum bus______ June 2 June 20 18 South A m erica..Ju n e 16 July 7 21 England________ July 2 July 21 19 18 Orpheus________ July 19 A u g. 6 C a m b ridge_____ A ug. 1 A ug. 21 20 O xford_________ A u g. 20 Sept. 11 22 North A m erica..S ep t. 1 Sept. 27 26 Europe_________ Sept. 19 O ct. 15 26 C olum bus______ O ct. 1 O ct. 19 18 South A m e rica .-O ct. 20 N o v . 8 19 H o m ew a rd P assa ges Sailed England_______ D ec. 17 Orpheus_______ Jan. 2 C a m b rid g e____ Jan. 16 O xlord ________ .Feb. 1 N orth America..Feb. 16 Europe________ .M a r. 1 Colum bus_____ .M a r. 18 South A m erica.A pr. 3 England____ __ .A pr. 20 O rpheus.. . . . .M a y 2 C a m b rid ge___ .M a y 16 O xford________ June 2 N orth America..June 16 Europe________ .July 2 Colum bus_____ .July 19 South A m erica.A ug. 4 E n g la n d .. ___ -Aug. 20 Orpheus______ .Sept. 7 C a m b rid g e___ .Sept. 19 O xford________ .O ct. 8 N orth America..O ct. 22 Europe_____ . N o v . 12 C olum bus_____ .N o v . 20 South America .D e c. 8 Arrived Days Jan. 25 39 M a r. 8 65 M ar. 5 48 M a r. 9 36 M ar. 19 31 Apr. 1 31 A p r. 16 29 M ay 2 29 M ay 11 20 M ay 30 28 26 June 11 32 July 4 39 July 25 A ug. 11 40 32 A ug. 20 32 Sept. 5 S e p t.22 33 O ct. 14 37 N ov. 1 43 N o v . 10 33 43 D e c. 4 47 D e c. 29 39 D e c. 29 32 Jan. 9 “Average passage out, a fraction over 21 days. The shortest passage out is by the England, in 16 days; and the longest by the Europe, in 27 days. “Average homeward time, 36 days. The shortest passage homeward is by the England, in 20 days; and the longest by the Orpheus, in 65 days. The shortest average of the three voyages is by the Eng land, both out and home.” (Similar data for other lines follow in the original, but we omit them here, since those given seem to serve the purpose in hand.) Manufacturing in 1839 More effectively than statistical tables the follow ing extracted from an article appearing in Hunt’s (1811) five years after the magazine was begun should show the general character and state of ad vancement of American industry in those early days: “ The rapid improvement of the arts may help to account for the reduction of price, as to many articles of manufacture, and especially in some that are usually ranked among the necessaries of life. Shirtings, for instance, which cost, 30 years ago, 62 cents per yard, is now bought for 11 or 12 cents, and equally as good. “Hosiery is now made in the United States with astonishing rapidity, by the aid of the power weav ing loom, an American invention, which has not yet been introduced into England. While; there, it is a full day’s work to knit by hand two pairs of drawers, a girl, here, at $2.50 per week, will make, by the power-loom, 20 pairs in the same time. A (iC o n t i n u e d on page 2766) ONE HUNDRED —The Commercial & Financial Chronicle Y E A R S OLD Volume 149 2765 — Pacific Gas and Electric Company SAN FRANCISCO, CALIFORNIA The properties of the Company and its subsidiaries constitute an interconnected system, located entirely within the State of California and operated by a single management. For more than twenty-seven years operations have been subject to regulation by the California State Rail road Commission. The Company operates electric generating plants having an installed capacity of 1,676,902 horsepower and is one of the largest producers and distributors of electricity in the United States. It also ranks among the major distributors of natural gas in the country. On June 30, 1939, electric customers numbered 877,555, gas customers 614,295 and water and steam customers 12,112. In the year ended June 30, 1939, 70.7% of operating revenues were derived from sales of electric energy, 28.1% from sales of gas, and 1.2% from minor activities. The well diversified character of the Company’s business tends to stabilize earnings and also to permit of economical operation. SUMMARY OF CONSOLIDATED INCOME AND DIVIDENDS ON CAPITAL STOCKS 12 M o n t h s t o J u n e 3 0 , 1939 12 M o n t h s t o J u n e 30, 1938 Gross Revenue, including Miscellaneous Income . . . . . . $104,821,816 Operating Expenses, Taxes (except Federal income taxes) and Provision for Depreciation,Insurance,Casualties,Uncollectible Accounts and Pensions 62,773,371 $101,502,327 Gross Income . . . . . . . . . . Bond and Other Interest, Discount and Other Income Deductions $ 42,048,445 12,305,541 $ 39,961,920 12,168,290 $ 29,742,904 4,633,442 $ 27,793,630 3,786,735 Net Income before Provision for Federal Income Tax Provision for Federal Income Tax . . . . . . . . 61,540,407 . . Net Income to Surplus . . . . . . . . Dividends of Subsidiaries on Capital Stocks held by Public, etc. . $ 25,109,462 83,138 $ 24,006,895 245,868 Remainder— Applicable to Pacific Gas and Electric Company Dividends on Preferred Stock . . . . . . . . . $ 25,026,324 7,809,159 $ 23,761,027 7,708,492 Remainder— Applicable to Common Stock . . . . . Number of Full Shares of Common Stock outstanding at end of period Earned per Share of Common Stock . . . . . . . . $ 17,217,165 6,261,270 $2.74 $ 16,052,535 6,261,270 $2.56 R E C O R D OF R E C E N T G ross O p e r a t in g R evenue Y ear E n ded D e c . 31 1931 1932 1933 1934 1935 1936 1937 1938 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . San Francisco San Francisco J o h n P . C o g h l a n , San Francisco W . W . C r o c k e k , San Francisco P . M . D o w n i n g , San Francisco James B . B lack , A l l e n L . C h ic k e b in g , S a le s o f E le c t r ic ity K .W . H . S a le s o f G as C u b ic F e e t N um ber o f S to c k h o ld e r * 3,351,310,000 2,932,003,000 2,940,605,000 3,269,116,000 3,303,312,000 3,696,378,000 3,935,803,000 3,906,866,000 . $ 87,630,661 . 85,058,617 . 84,596,084 87,555,480 92,084,934 . 95,333,336 . 100,443,116 . 101,424,595 BOARD GROWTH 29,431,022,000 34,594,302,000 39,802,857,000 41,074,683,000 48,686,774,000 53,439,510,000 59,531,331,000 62,477,013,000 84,705 95,483 96,824 96,225 92,670 90,263 92,704 95,985 OF D I R E C T O R S New York, San Francisco H e r b e r t C F r e e m a n , New York N o r m a n B . L i v e r m o r e , San Francisco C h a s . K . M c I n t o s h , San Francisco James F . F ogarty, D . H . F oote, San Francisco San Francisco H e n r y D . N i c h o l s , San Francisco S i l a s H . P a l m e r , San Francisco A . E m o r y W i s h o n , San Francisco J ohn D . M cK e e , C . O . G . M il l e r , C o p i e s o f A n n u a l R e p o r t m a y h e o b ta in e d , o n a p p l i c a t i o n to D . H . F o o t e , V i c e - P r e s i d e n t a n d S e c r e t a r y - T r e a s u r e r , Z lt b M a r k e t S t r e e t , S a n F r a n c i s c o , C a l i f o r n i a ONE HUNDRED The Commercial & F i n a n c i a l Chronicle—YE A R S OLD 2766 — A Century of Achievement (.C o n t in u e d , f r o m page 2764) piece, 28 inches in width, and one inch long, can be knit in one minute, thus reducing the expense of manufacturing this article one-tenth of the former method by the hand-looms. The importance of this improvement may be estimated from the fact that the quantity of hosiery used in the United States is valued at $2,500,000; and the stockings, woven shirts and drawers, made in this country, at $500,000. Hooks and Eyes is another illustration of the progress of inventive industry. Thirty years ago, the price was $1.50 per gross; now, the same quan tity may be purchased, from 15 to 20 cents. At one establishment in New Britain, Connecticut, 80,000 to 100,000 pairs per day are made and plated by a galvanic battery, on the cold silver process. The value of this article, consumed annually in the United States, is estimated at $750,000. “Horseshoes furnishes a similar proof of the bear ing of the progress of inventions. An improved kind of horseshoes, made at Troy, New York, for some time past, is now sold at the price of only five cents per pound, ready prepared, to be used in shoe ing the animal. At a factory, recently erected, 50 tons of these are now turned out, per day; and, it is believed, they can be made and sent to Europe at as good a profit as is derived from American clocks, which have handsomely remunerated the exporter. “ Leather—The improvement in the manufacture and making up this article, has also greatly reduced the price of shoes. By further inventions to render leather water-proof, likewise, much has been done to protect the health, and promote economy. ‘Those who have not turned their attention to this subject, may be surprised to learn that leather, made water proof in the best manner, will last at least one-third longer than other kinds.’ Allowing, therefore, $3 per head for each person in the United States, for N o v . 4, 1939 shoes, the cost of the whole article in the country would be $50,000,000, one-third of which, sold, would be over $16,000,000. “Sugar—By a process of sugar-making, invented by Professor Mapes, at the sugar-works of Messrs. Tyler and Mapes, 15,000 to 20,000 pounds of sugar are manufactured per day, from common West India molasses, and generally of a quality superior to that made from the cane in Louisiana. Molasses, which has become sour, is often used for this purpose with good effect. “Pins—The progress made in the United States, in the manufacture of this article of universal use, within a few years, is truly astonishing. A manu factory, near Derby, Connecticut, has a contrivance for sticking pins in paper which is quite marvellous. It takes, in England, 60 females to stick in one day, by sunlight, 90 packs, consisting of 302,460 pins. The same operation is performed here, in the same time, by one woman. Her sole occupation is to pour them, a gallon at a time, into a hopper, from whence they come out all neatly arranged upon their several papers. The mechanism, by which the labor of 59 persons is daily saved, yet remains a mystery to all but the inventor; and no person, but the single woman who attends to it, is, upon any pretext what ever, allowed to enter the room where it operates.” Morse invented the magnetic telegraph in 1832, but it was not until 1844 that it was publicly oper ated, and it was not until 1846 that Hunt’s was able to present the following table of its extension in the United States. E XT E N SIO N OF THE M A G N E TIC TELEGRAPH From New York to New Haven, Hartford, Springfield and Boston___ From New York to Albany, Utica, Auburn, Syracuse, Rochester, Lockport and Buffalo____________________________________________ From New York to Philadelphia, Baltimore and Washington_______ From Philadelphia to Harrisburg___________________________________ From Boston to Lowell__________ From Boston to Portland (110 miles— half finished)_________________ From Ithaca to Auburn____________________________________________ From Troy to Saratoga___ _________________ M ile s 265 507 240 105 20 55 40 31 Two decades and more were to pass before the first Transatlantic cable became a reality. (C o n tin u e d o n p a g e 2768) One of the greatest events in the development of American commerce and transportation was the union of the Union Pacific and the Central Pacific railroads, which took place May 10, 1869. Leland Stanford and others who forever will be remembered in the development of transportation, took part in the ceremony of the driving of the golden spike which gave a clear road to the Iron Horse from the Atlantic to the Pacific. Volume 149 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD — — 2767 POWER F o r th e F A R M Electrically ! jyTILLIO N S of visitors to the New York World’s Fair saw the model electrified farm erected by the electric utilities. This exhibit typified the work that has been done by the electrical industry to bring electricity to the farms. To visit all the 145,450 rural customers served by the affiliated com panies in the American Gas and Electric system would make it necessary to traverse the 16,031 miles of rural distribution lines that we have constructed. For many years the line crews of the affiliated companies have been busily engaged in extending service to these rural customers. Rural folks receive a service equal to that enjoyed by city dwellers. The rates are the same as those paid by customers in the largest communities. The only difference is that the farmer agrees to take a minimum amount of electricity. Our city customers will commend this policy of low rates for farmers, realizing that an efficient, prosperous countryside is the surest guarantee of busy industry and prosperity in the cities. AMERICAN GAS & ELECTRIC SERVICE CORP. Principal Affiliates Appalachian Electric Power Company Atlantic City Electric Company Indiana & Michigan Electric Company Indiana General Service Company Kentucky and West Virginia Power Company, Inc. Kingsport Utilities, Incorporated The Ohio Power Company The Scranton Electric Company Wheeling Electric Company ONE HUNDRED —The Commercial & Financial Chronicle— Y EAR S OLD 2768 A Century of Achievement (C o n tin u e d fr o m page For 2766) STATE M E N T OF AM OU N T OF STOCKS AN D BONDS ISSUED AND AU THORIZED TO BE ISSUED B Y THE SEVERAL STATES, G IV IN G Y E A R IN W H ICH EACH STATE COM M EN CED ISSUING STOCK, THE OBJECT FOR W H ICH ISSUED AND THE RATE OF IN TEREST W h a t O b je c t I s s u e d — A m o u n t fo r E a c h O b je c t T otal------------------------------------------------------------ $554,976 Total------------------------------------------------------------ T otal________________________ P e n n s y lv a n ia (1 8 2 1 )— $4,200,000 5, 5J£, 6 6 5 5 43^, 5 5 5 5 $18,262,406 $16,576,527 4,964,484 2,595,992 3,166,787 Total________________ 5 5 5 5 $27,306,790 M a r y l a n d (1 8 2 4 )— Medical University____ Penitentiary__________ Tobacco inspection____ For railroads__________ For canals____________ Washington Monument Expense of riots_______ $30,000 97,947 78,000 5,500,000 5,700,000 10,000 77,033 5 5 5 5, 6 5, 6 5 5 $11,492,980 V i r g i n i a (1 8 2 0 )— For For For For For canals and river navigation. railroads__________________ turnpikes__________________ revolutionary debt________ war debt of 1814__________ Total_____________________ S o u t h C a r o l i n a (1820) — Public improvements___________ T o Mrs. Randolph______________ Cincinnati & Charleston Railroad. To rebuild Charleston__________ Revolutionary debt_____________ Total______________________ A l a b a m a (1 8 2 3 )— 3,835,3501 5, 2,128,900 5, 354,800 5, 24,039 319,000 5 'A , 5 A . 5 A , 6 7 .-$8,662,089 $1,550,000 10,000 2.000,000 2,000,000 193,770 5, 6 6 5 5 3 $5,753,770 For banking________ For railroads_______ $7,800,000 3,000,000 Total__________ 5 5 $10,800,000 L o u i s i a n a (1 8 2 4 )— For banking_____________ For railroads_____________ New Orleans Draining Co. Heirs of Jefferson________ Charity Hospital_________ State House_____________ $22,950,000 500,000 50,000 10,000 125,000 100,000 Total________________ 5 6 5 6 5 5 $23,735,000 T e n n e s s e e (1 8 3 3 )— $3,000,000 118,166 3,730,000 300,000 For banking___________ For turnpikes__________ Railroads and turnpikes. Improving rivers______ 5, 6 5, 6 5 5 $7,148,166 T otal_____________ K e n t u c k y (1 8 3 4 )— For banking__________________ Improving rivers by locks, &c_. Turnpike and M ac Adam roads Railroads_____________________ Total____________________ O h i o (1 8 2 5 )— $2,000,000 2,169,000 2,400,000 350,000 5 5 5 5 $7,369,000 For canals______ $6,101,000 T otal______ $6,101,000 For banking______________ For canals________________ For railroads_____________ M e Adam turnpike-----------River navigation-------------- $1,390,000 6,700,000 2,600,000 1,150,000 50,000 Total________________ 6 5 5 5 5 5 $11,800,000 5 $4,200,000 $548,000 11,968,674 800,000 3,787,700 10,000 586,532 561,500 For canals_______________ For railroads_____________ For turnpikes and bridges. Miscellaneous____________ I n d i a n a (1 8 3 2 )— $554,976 Loans to railroads_______________________________ For canals________________________ For canals________________________ Loan to Hudson & Delaware Canal. Loans to railroads_________________ To river navigation_______________ General funded debt______________ Astor stock_______________________ R a te P er Cent M a in e (1 8 3 0 )— Ins. hospitals, primary schools, bounty on wheat and general expenditures____________________ M a s s a c h u s e t t s (1 8 3 7 )— R a le P er Cent N e w Y o r k (1 8 2 3 )— The extent to which the various States had in debted themselves and the variety of purposes for which these obligations were incurred, matters which were of considerable concern during the first few years of the life of the “ Merchants’ Magazine” , may be observed from the following, which has been excerpted from an article, “ Debts of the Several States” , appearing in the second issue of “ Hunt’s” : “ In May, 1938, after the passage of the General Banking law, authorizing the Comptroller to issue circulating bank notes, on a pledge of the evidences of public debt of the several States, Mr. Flagg sent a circular to the financial officer of each State, soliciting information in regard to the amount of stock created, the rate of interest and when payable, the mode of transferring the stock, whether specific funds were pledged for the payment of interest, and whether the interest in all cases was paid by the State. Full answers were received to these in quiries, except in two or three cases. And the amount of stock actually issued, previous to the time of giving the information (say June, 1838), was stated in the Comptroller’s annual report of 1839, page 89, at $23,703,750.11. “ The following tables show the total amount of stock issued, and authorized to be issued, by each of the 18 States which have resorted to this mode of raising money. Where the returns from the financial officer did not afford all the information which was desired, the State laws have been ex amined to ascertain the extent of the authorized loans. The operations of many of the States have been so extensive and varied that it is not an easy matter to get at the precise amount of stock issued and authorized to be issued. It is probable, how ever, that the aggregate amount of stock authorized by all the States is even greater than the amount stated in the tables” : For W h a t O b je c t I s s u e d — N ov . 4, 1939 A m o u n t fo r E a c h O b je c t I l l i n o i s (1 8 3 1 )— banking______________ railroads_____________ canals________________ payment of State debt river navigation, &c_ _ $3,000,000 7,400,000 500,000 100,000 600,000 Total________________ For For For For For $11,600,000 M is s o u r i (1 8 3 7 )— For banking________ $2,500,000 T otal__________ 6 6 6 6 6 $2,500,000 M is s is s ip p i (1831)-— $7,000,000 For banking__________ 5 5 $7,000,000 Total_____________ A r k a n s a s (1 8 3 6 )— For banking_________ $3,000,000 Total___________ $3,000,000 5 M i c h i g a n (1 8 3 6 )— • Controversy with Ohio___________________________ Internal improvements___________________________ Loaned to railroads_______________________________ State Penitentiary________________________________ University_______________________________________ A meeting of historical significance. Cyrus Field, standing second from right, at a meeting of the men who financed him in the laying of the Atlantic Cable, including Moses Taylor, President of the City Bank, Peter Cooper, David Dudley Field, Samuel F. B. Morse, who painted this picture, Marshall O. Roberts, Wilson G. Hunt, and others. $100,000 5,000,000 120,000 20,000 100,000 T otal________________________________________ $5,340,000 Whole amount_______________________________ $170,806,179 I f to the above be added the amount deposited by the United States in the treasuries o f the several States for safe keeping_________________________ 28,101,644 It makes the aggregate debt o f all the States, existing and authorized______________________ $198,907,824 (Continued on page 2270 ) 6 6 6 6 6 Volume 149 ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD — — The story of modern dairy industry reads like a busi ness romance. Through the wholehearted cooperation of the great dairy industry and the millions of dairy farmers, there have been achieved: » • a system of processing and distributing dairy products which is acknowledged by all as the best in the world. > • a consistent improvement in the purity and goodness of milk and milk products. » • an effective sales promotion program which by main taining milk and milk product consumption has con tributed to the health of the nation. H E R E ’S T H E accomplishments, milk has proved to be a more stable source of farm income. RECORD: In the aggregate, consumption of milk and milk products, per person, has shown a larger increase in recent years than any other major food— with one exception. Today milk and milk products form more than one-quarter of all the food consumed by the nation's 30 million families. Since 1930, milk production has been maintained at relatively higher levels than other major farm com modities. Despite that increased volume, the prices farmers have re ceived for milk have been compara tively higher than those they have averaged for other major farm com modities . . . and through these two ★ ★ ★ These achievements are a tribute to the efficiency with which milk and dairy product companies have processed and merchandised their products. National Dairy Products Corpora tion is proud to have shared the leadership in this forward march of the dairy industry. We pledge our efforts to seek still greater consump tion of milk and milk products . . . in order to increase farm income, which is so important in our economic sys tem . . . and in order to build a sturdier, healthier people, which is the real wealth of our nation. NATIONAL DAIRY PRODUCTS CORP. 75 E. 4 5 t h STREET N EW 11939 Y O R K C IT Y 2769 ONE HUNDRED—The Commercial & Financial Chronicle—YEARS OLD Nov. 4, 1939 2770 One of the early railroad trains passing one of the buildings of the Mechanics Bank in New York. A Century of Achievement (C o n tin u e d fr o m page 2768) A cro ss T h re e D ecad es It was into such a world that Freeman Hunt in July, 1839, launched his “Merchants’ Magazine.” About two years had elapsed since the “ Panic of 1837,” with its suspension of specie payments, and all the rest. The fiscal position of the Federal Gov ernment was an unenviable one. Since the main source of revenue at that time was customs receipts, the tariff question was already to the fore, and was destined to be debated heatedly until 1842, when a distinctly protective tariff was enacted as a result of the support the protectionists were able to mar shal in the name of the needs of the Treasury. Pro posals for the establishment of a new National bank to take the place of the one Jackson had succeeded in destroying, the so-called “ independent Treasury” system, fears of repudiation on the part of the States of some of their over-extended debt, Treas ury borrowing, and the various developments which gradually through the few years immediately subse quent to 1839 restored the country to a state of prosperity and progress were the main topics of the day. To all such questions as these, as well as to the ordinary course of business events from month to month the early issues of “ Hunt’s” were largely devoted. Articles obviously the result of careful inquiry dealing with all manner of subjects of con cern to the business man in almost every branch featured the magazine from the beginning. Labori ously compiled tabulations appear bringing together vast amounts of information not otherwise avail able to the general public. Reports on the course of industry, trade, agriculture and finance begin with the first issue. Banking, both as to its then exist ing status, and as to the nature of its proper func tions and practice, early received special attention. Foreign trade with all parts of the world was a source of great pride to the editor. Thus from the first the “ Merchants’ Magazine” became a store house of information and enlightenment, as it has remained today a source book for the economic historian. It was not very long after the “ Merchants’ Maga zine” was founded that prosperity was fully re stored, and a “ free trade” tariff enacted in 1846, followed by still further reductions in duties in 1857. The Mexican War intervened, but was not of long duration and did not interrupt the upward course of general business. “ The period from 1846 to 1857,” says Davis Rich Dewey, financial historian of the United States, “ was one of great industrial prosperity. Besides the war with Mexico, with its abnormal expenditures, business and public finance were affected by the discovery of gold in California, by the revolutionary disturbances on the Continent, by the famine in Ireland, and by the extension of railroads in the West. In 1845 the number of immi grants to this country was 114,000; in 1947, 225,000; and in each of the five years after 1849 it was more than 350,000. More immigrants, in fact, came be tween 1845 and 1855 than in the preceding 25 years. The statistics of railroad construction also tell a wonderful story; in 1846 there were about 5,000 miles in operation; but after 1848 the annual gain in construction was over 1,000 miles until we come to the war period of 1861. The famine in Ireland not only sent out thousands of laborers, it also cre ated a great demand for American wheat and, of course, increased our purchasing power. An im portant change was also made in commercial con ditions by the reduction and abolition of import duties in England which began in 1842. With the removal of these duties and the rapid extension of manufacturing industries in England there was a great increase in exports (principally cotton and food products) from the United States. The ad dition of the large territory ceded by Mexico in creased importations and hence the revenue, and the extraordinary development in California had a stimulating influence upon the whole Nation. The country possessed resources only partially devel oped, yet open to ready conquest through the appli cation of railways and new machinery. It was in deed, as Secretary Walker with glowing optimism repeatedly affirmed in his annual reports, ‘a new commercial era’.” Thirty-seven Volumes It was in early March, 1858, that Freeman Hunt died. Upon the occasion of his death the magazine that he had founded and developed undertook to give an accounting of its labors. The history of the first two decades of the “ Merchants’ Magagine” are here given more thoroughly and more authorita tively than any mere historian could hope to do. We accordingly reproduce the larger part of it herewith: “ The 37 volumes of the work show at a glance how rapidly its scope, tolerably broad at the start, has widened with growing experience, and with the growth of the Nation. No narrow spirit ever pre sided over its pages; nor is there wanting another quality, scarcely less important than clear insight, a wise plan, or valuable matter; for without a care ful arrangement and classification of subjects, a work of this kind loses half its value, and is the more confusing from the variety and richness of its material. But by means of a rigid classification the series of the ‘Merchants’ Magazine’ is made to present, with something of the method of an encyclo pedia, in leading articles and under appropriate heads, Commercial History, Doctrine, and Opinion, Mercantile Law, the monthly movement of Trade and Finance, Marine Regulations, the Statistics of Railroads, Canals, and Population, Banking and Currency; in short, the trade of the country and the age, discussed in its theory, developed in prae(C o n tin u e d o n p a g e 2772) Volume 149 ONE HUN DRED—The Commercial < Financial Chronicle— YEARS OLD ? The General Foods fa m ily 2771 o f products reports to its rea l boss: the American Family J eR APS you don’t know us by our T H family name—General Foods. But you undoubtedly do know some of the products that make up our family. Maybe you had Post Toasties and Max well House Coffee for breakfast, this morning. Maybe you had a Birds Eye dinner, and a cake made with Swans Down Cake Flour, last night. Anyway, our success depends upon you. We can continue to progress only if you continue to buy our products. We’d like you to know more about us. a pound. Today it costs you about 38<t a pound. Nor is General Foods resting on its oars. In its laboratories, researchers are working to find new ways of improving General Foods products—new ways to make them still easier to use—new ways to help you save more food-dollars in the family budget. Each year our Consumer Service sup plies millions of housewives with recipes. W h a t W e ’re Doing fo r O u r Em ployes W h a t W e ’re Doing fo r th e Consum er It is our policy in our plants and offices to pay wages as good as, or better than, those prevailing for similar work under similar conditions in communities in which we operate. We have set up vari ous plans to help our employes. For in stance, our co-operative retirement plan helps protect them against economic dependence in their old age. Special retirement allowances do the same for those too old to be eligible for this plan. Group life insurance gives protection to an employe’s dependents, in case he dies. A benefit plan gives protection against loss of income during accident and sickness. A termination allowance plan helps tide employes and their families over, when employment is dis continued. And avacation plan provides rest and recreation—with pay. Since 1932 the number of our em ployes has increased 54%. Since 1929, nearly every product of General Foods has been improved in some way: For instance, you now pre pare a Jell-O dessert in half the time it used to take; Minute Tapioca cooks in five minutes instead of fifteen. And while quality was going up, our prices were coming down. For example, Sanka Coffee, when it joined the General Foods family in 1928, was priced at $1 Every third retail store in this country sells food products. And nearly all of these food stores—a total of approxi mately 500,000—sell General Foods products. We believe these retailers are entitled to a profit, and we have tried hard to help them. We supply them with This is W h a t W e A re General Foods is a family of food prod ucts. Most members of the G.F. family, like Log Cabin Syrup, Postum, and Grape-Nuts, have been household friends for more than a generation. These products were banded together into General Foods because the busi nesses that produced them felt that in such union there was strength for the workers who made the products, for the people who had invested in them, and, most of all, for you, the consumer. For these businesses knew that if, by getting together, they could conduct better re search and effect economies in produc ing, selling, and management, they in turn could give you better values for your money. Let’s see how it has worked out. W h a t W e ’re Doing fo r th e R etailer quality products which have consumer acceptance, and we continuously sup port these products with vigorous ad vertising and other merchandising helps. Instead of selling just one prod uct, nearly every one of our salesmen sells our entire line and covers a small territory thoroughly. In this way, we save the dealer a lot of time. And be cause our salesmen are better-trained, the dealer gets more help from them. He gets ideas on displaying and pro moting his goods, and on being the kind of merchant who can serve you better. W h a t W e ’re Doing fo r th e Investor General Foods is literally owned by the public. Today, the company has 67,894 stock holders, which means that, counting their families, some 270,000 persons share directly in General Foods divi dends. Since its formation, General Foods has paid 71 consecutive dividends. On an average, 80% of its annual net profits has been paid as dividends; the re mainder has been used principally for expansion. W h a t W e H ope to Do in th e Future We want the farmers from whom we buy to get a fair price for their produce. We want the people who work for us to get a good wage and considerate treatment. We want the grocer to make a profit from handling our goods. We want the investors, who have entrusted their money to us, to get a decent return for their faith in us. And finally, we want to give you, the American Consumer, at the lowest pos sible price, the best food products that can be produced. C o p y r ig h t , 1939, G e n e r a l F o o d s C o r p . General Foods manufactures and sells (l) many products whi ch consumers buy through retail stores; (2) many products which are consumed in restaurants, hotels, hospitals, and other institutions; and (3) many products which are sold in bulk to other manufacturers. Among the General Foods products which consumers buy in retail stores are the following: Bluepoint O ysters Calumet Ba k in g Powder Certo D ia m o n d Crystal Salt D-Z erta 4 o-Fa t h o m Fish Fr anklin Baker s Co co n u t G rape-N uts G rape-N uts Flakes H uskies I n st a n t Postum Jell-O Jell-O Freezing M ix Jell-O I ce Cream Powder Jell-O Puddings K affee H ag La France Log Cabin Syrup M axwell h ouse Coffee M inute T apioca p o s t -O Post s 4 o % Br an Flakes Post s W hole Br an Shreds Post T oasties Cereal Sa n k a Coffee Sa t in a Seafresh Fish Sealshipt O ysters SURE-jELL Sw ans D o w n Cake Flour W alter Baker s Chocolate W alter Baker s Chocolate Bars W alter Baker s Co coa po st u m BIRDS EYE FROSTED FOODS—fruits—vegetables—meats—poultry—sea foods " ONE HUNDRED—The Commercial & Financial Chronicle—Y EAR S OLD 2772 A Century of Achievement (C o n t i n u e d , fro m page 2770) tice, and journalized into books of lasting useful ness for the library shelf and counting-house desk. “ The rich field of Commercial Literature, in which Mr. Hunt industriously worked, never wore a more attractive aspect, never promised richer results, than at the moment of his leaving it. “ Since the ‘Merchants’ Magazine’ was established, 27 years ago, the population of the United States has increased from 17,000,000 to 28,000,000, in round numbers; its territory from 2,000,000 to 3,000,000 square miles; the coinage from $60,000,000 to nearly $600,000,000; the tonnage from 2,000,000 to 5,000,000 tons, making our mercantile marine the largest in the world; ocean steam navigation, dur ing this period, has come into existence; the electric telegraph has come into existence; the entire terri tory of the Union has been brought under organized State or territorial government.; a reciprocal free trade with the Canadas has been established; Eng land has proclaimed freedom of trade and naviga tion, and the United States has become for the first time a regular grain-exporting Nation; some 60 ocean steam companies, not one of which, that we are aware, existed 20 years ago, employing about 350 steamers, have been established in Europe and America; California and Australian gold has built up two great communities of our race on the Pacific and at the Antipodes; and railroad enterprise has, in this country, done in 20 years the work of 100. Indeed, the growth of trade has been the con trolling movement of the world in the present gen eration, which all influences in politics and science have united to push forward. Japan expeditions, African explorations, gold discoveries, Chinese wars, all have trade for their keynote. Science and invention, which, until our day, devoted their most brilliant discoveries and ingenious contrivances to increasing the productiveness of industry, have done more within the last 30 years than in all the cen turies which went before, to multiply means of com munication and transportation, facilities not for production, but for the exchange of products; in short, for the development, on the grandest scale, of trade and commerce, by land and water, domestic and foreign. The facts and figures we have briefly noticed show plainly enough that the United States, one of the first among producing nations, and cer tainly the greatest of consumers, has felt the fullest force of this commercial movement. And the growth of our trade is not more striking than the new directions it has taken, and the vehicles it employs. Exports to the East go W est; the morning newspaper reports in New York news by telegraph of the arrival at New Olerans the day before of a steamer from Havana, bringing news of the arrival there of a steamer from Aspinwall, bring ing news of the arrival at Panama of a steamer which left San Francisco with $2,000,000 in gold two weeks before. Such a paragraph in the first, or in the one hundred and first, number of ‘Hunt’s Merchants’ Magazine’ would have been simply unin telligible. Where was Aspinwall? Where was the gold? Where was ocean steam navigation, or the electric telegraph, 20 years ago? Freight cars will soon be fetching and carrying the goods of England and China across this continent on a Pacific track, and railroads bid fair to reassert, in our day, for N ov. 4, 1939 land traffic, the importance which belonged to it in early times, when hardly a tytlie of the carrying of the world was done in ships. Broad Policies “ Nor has there been material growth alone. Commerce has other and higher relations, which the readers of ‘Hunt’s Merchants’ Magazine’ need not be told—have never been lost sight of in these pages. Never have the relations of trade to Morality and Religion, Literature, Science, and Public Economy been so fully recognized as of late years. The moral responsibilities of the mercantile calling have be come the frequent theme of the press, the pulpit, and of public addresses. Poetry sees in the locomo tive and telegraph realities transcending fiction. The most popular novel of the day in Germany, of which there are two English translations, is a story of commercial life. It has come to be fully under stood that literature, which should reflect life, must be defective indeed if trade, which, on a larger or lesser scale involves the interests of all, is lost sight of. The censuses and annual reports of trade published by the leading commercial nations were never so full as now of material of the highest pub lic interest, only requiring to be popularized and made accessible in the pages of a ‘Merchants’ Maga zine’. The old question, which yet is ever new, of Protection and Free Trade, which is now in a position to be discussed with more fairness and less passion than ever before; the relations of Labor and Capital; our Public Land Policy; the Factory Sys tem ; the Condition of Seamen; Banking and Finan cial Reform, and the lessons of times of crisis; the questions of a National Paper Currency; the Credit System and the Legal Sactions and Remedies for debt; the law of Insolvency and Bankruptcy, and the system of Assignments for the benefit of Credi tors in its bearings upon trade; Stock Companies and Corporations, and the law of Stock Transfers, with reference to the protection of shareholders against fraud; Railroad, Steamship and Telegraph ( C o n t in u e d o n p a g e 2774.) The invention that revolutionised communication. First practical telegraph instrument invented and used by Samuel F. B. Morse. Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD — — 2773 orizons . . . Industry is looking forward to new and better products through synthetic organic chemistry. By uniting carbon, hydrogen, oxygen, and other elements in thousands o f combinations, Carbide and Carbon Chemicals Corporation has developed and now produces over 150 syn thetic organic chemicals. Once rare and costly chemical curi osities with valuable properties have been made into important commercial products. Among these are solvents for surface coatings or lacquers . . . intermediates for making new products or for eliminating steps in present syntheses . . . emulsifying agents for acidic or basic preparations . . . wetting agents for textile, leather, or other aqueous processes . . . coupling agents for rayon oils or dry-cleaning soaps . . . plasticizers for resins or printing inks . .. anti-freeze compounds for automobile engines or brewery cooling systems .. . and "Vinylite” resins for safety glass, plastic articles, or synthetic fibers. In fact, Carbide and Carbon Chemicals Corporation has a synthetic organic chemical for almost every industrial requirement. In the past few years, over 60 new chemicals were introduced in antici pation o f the future requirements o f industry. So new that no collective name has as yet been found for them, they are called "Fine Chemicals” and are already finding an ever-widening horizon of new uses. These syn thetic organic chemicals are a few of the many new products which give American Industry its dynamic character and its potentialities for creating new markets and new industries. Inquiries are cordially invited. C arbi d e and Carbon Chemicals Co r po ra t io n Unit of Union Carbide and Carbon Corporation 30 East 42nd Street PRODUCERS OF |l|^^ SYNTHETIC New York, N. Y. ORGANI C The word Vinylite” is a registered trade-mark of Carbide and Carbon Chemicals Corporation. CHEMI CAL S 2774 ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939 — — A Century of Achievement (iC o n t i n u e d fro m page 2772) enterprise; the prospects and growth of our young American cities; Marine Architecture, in reference to the material, capacity and safety of ships; Insur ance—its principles, practice and applicability to all the risks of life; Immigration; Geographical ex plorations, and the new openings for trade which they disclose; Labor-saving Machinery— its actual and possible applications, and its influence on society, and the condition of the laboring classes;— such are a few of the topics which invite the pen of him who would illustrate, in its freshness and life, the Commercial Literature of the day. “ The sneer that merchants read nothing but their day-books and ledgers loses all semblance of truth and fades into shallowness before the brilliancy of the names which, in every age, have adorned the mercantile profession, and shows a poor apprecia tion of the intelligence of a class which could pro duce men like Gresham and Roscoe. In our day when, under the influence of our Mercantile Library Associations, a body of merchants is growing up, partaking in a more than ordinary degree the gen eral culture of the age, it is simply absurd. Our younger merchants will find it hard to believe that while almost every other science and profession, while agriculture, the mechanic arts, law, medicine, divinity, and even special industries, have long had a representative in our periodical literature, com merce had no ‘organ’ except the newspaper press, until the ‘Merchants’ Magazine’ was established. If such a work was needed 20 years ago, it is indis pensable now. “We may add that the facilities at command for making ‘Hunt’s Merchants’ Magazine’ an adequate exponent of commerce in all its immense develop ments were never so great as now, and we feel that it can be made to fill a place hitherto unoccupied in our literature. With regular contributors, whose names do honor to Letters and the Science of Wealth, the magazine counts among its correspond ents men of ability, themselves merchants, who find welcome admission into its pages, and whose experi ence and practical sagacity outweigh the merely literary graces.” For a brief period after the death of Mr. Hunt the “Merchants’ Magazine” was published under the proprietorship of George W. and John A. Wood. During these years from May, 1858, until the spring of 1861, it was under the editorial direction of Thomas P. Kettell, an able writer long associated with and greatly trusted and admired by Freeman Hunt. It accordingly lost none of its standing; in deed, continued to grow in influence and in the service it rendered. General conditions favored its further development. “ The depression of 1857,” says the historian Davis Rich Dewey, “ was but tem porary in its industrial effects; the development of railroad construction and shipping was speedily resumed; crops were abundant and prices remunera tive. The cotton crop of 1860 reached 4,675,770 bales, nearly a million bales more than in any previ ous year; great gains had been made in the crops of wheat, corn and other cereals; the production of anthracite coal in Pennsylvania was nearly 800,000 tons greater than in any preceding year; the output of pig iron was 913,000 tons, or 130,000 tons more than the average of the six preceding years; exports, including the precious metals, had reached the high est point then known, $400,000,000 (of which $316,000,000 was domestic merchandise), or $43,000,000 more than in any other previous year. The consum ing powers of the people had never been so high, as was proved in particular by the unprecedented de mand for sugar and tea; there was but little pauper ism, and wealth on the whole was evenly distrib uted. One hundred and seventy-nine thousand im migrants landed in 1860, or 58,000 in excess of the preceding year. The tonnage of American shipping was greater than ever before or since (1928), and two-thirds of our imports and exports were carried in vessels having an American register.” The Chronicle The Civil War, although of course not fully fore seen in all its stark tragedy, had begun by 1860 to cast its shadow before it, and in 1861, when Mr. Ket tell surrendered his editorship to Isaac Smith Ho mans (whom Mr. Dana brought with him as co editor for a short period) and William B. Dana, the country was on the very verge of that devastating four-year struggle. The war exacted an extraordi narily heavy toll of the magazine, but reserves had been laid aside for such contingencies, and it had no great difficulty in surviving the storm. By late 1865 it was issuing larger and better numbers than ever. But Mr. Dana had by that time formulated and developed plans for entering the weekly field, and in July, 1865, issued the first number of “ The Commercial & Financial Chronicle” , into which, ac cording to plan, he caused the “ Merchants’ Maga zine” to be merged at the end of 1870. The “ Chron icle” thus came into being at a time in our history when extraordinarily difficult problems arising out of the Civil War faced the country, but when, viewed over a longer period, opportunity never beckoned more plainly or more vigorously. Only in retrospect is it possible to grasp the vision which Mr. Dana must have been able to summon before his eyes in 1865. If astounding progress had been made during the three decades of the life of the “ Merchants’ Maga zine” , the accomplishments in the three-quarters of a century since the “ Chronicle” was founded are almost incredible. So far have we traveled during this span of years, despite various forms of inepti tude on the part of the politicians, and notwith standing excesses and often recklessness in the management of our industrial affairs, that the present generation has great difficulty in envisag ing the general state of affairs existing in 1865. Yet the record is relatively complete. Only a com paratively brief and cursory survey of the columns of the “ Merchants’ Magazine” and the first issues of the “ Chronicle” easily furnish the broad outlines of the picture. The magnetic telegraph was in use, but facilities existed in the form of largely dis jointed segments and did not begin to cover the country like a blanket as is the case today. It was not until the second volume of the “ Chronicle” was being published that it was able to report the com(Continued on page 2776 ) Volume 149 ONE HUNDRED —The Commercial & Financial Chronicle YE A R S OLD — 2775 A T H O U S A N D Y E A R S OF P R O G R E S S / -ue a. v c a r c e l y more than 40 years ago the first motor car S chugged its way along a dusty highway. It was an un comfortable ride, judged by today’s standards. Slow, noisy, uncertain, it provided an ideal target for critics o f the day. Yet, this modest ride was the start o f a new industry, and one might say, a new civilization. Something great, and new, and different began in the world that day. Since then, as if by the touch o f a magic wand, the country roads o f our nation have widened into great highways, automo biles and trucks have displaced the horse and buggy, and people everywhere have benefited. Today, more than six million people directly and indi rectly derive their livelihood from the automobile industry. Today, more than twenty-six million American families ride in a style unmatched by any other country in the world. Today, with an annual production o f three to four mil lion cars a year, automobile prices start at only a few hun dred dollars as compared with thousands a few years ago. H ow was this accomplished? PLYMOUTH Passenger and Commercial Cars • DODGE Modern manufacturing, engineering, and distribution meth ods have played the largest part in making these almost unbelievable benefits possible. Engineering research. New machinery. Better distribution methods. Reduced costs. All o f these have resulted in the quality vehicles o f today. Chrysler Corporation is proud to have played a part in developing this great industry. In the last fourteen years Chrysler C orp o ra tio n has bu ilt and sold m ore than 7,000,000 Plymouth, Dodge, D e Soto, and Chrysler pas senger cars and trucks. Through the engineering, manu facturing and selling o f these products it has provided an income, directly or indirectly, for more than 1,000,000 people. Today, more than ever before, Chrysler Corporation is constantly striving to improve its engineering, manufac turing, and distribution methods in order to be better able to continue to provide the maximum in quality trans portation. . YOU GET THE GOOD THINGS FIRST . FROM CHRYSLER CORPORATION • D E SOTO Passenger Cars and Trucks C H R Y S L E R MA RINE AN D IN D U S T R I A L E N G IN E S • A IR T EM P — AIR C O N D I T I O N I N G • CHRYSLER ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939 — 2776 — Local transportation was immeasurably improved by the invention of Stephen Dudley Field, known as the Father of the Trolley Car. His was the first elec trically-propelled vehicle to run successfully. He demonstrated his first trolley car at his home in Stockbridge, Mass., in 1880. A Century of Achievement C o n tin u e d C fro m page 2774) pletion of the first really successful laying of a telegraphic cable across the Atlantic Ocean, and in cidentally at once to call attention to the feasibility of connecting then existing rather disjointed links of telegraph lines to make possible the transmission of messages around the entire globe, and to begin within a very few weeks to publish reports cabled from London on the previous day. Gas and elec tricity in their modern applications were, of course, unknown. More than a dozen years were to elapse before Edison was to invent the incandescent lamp. The country was to wait a decade before Bell in vented the telephone. Three decades passed before the first crude automobile appeared, and almost as long before Edison’s motion picture machine was presented to a startled world. Kerosene, even in its earlier crude form, was hardly more than a novelty, or at best a luxury available only to the very weal thy. Railroad construction had been actively under way for some years, and the consolidation move ment which built large systems of transportation for the convenience of the public had begun. So also had the need of standardization of track and equipment become apparent, and considerable prog ress had been made in meeting this need. The East and West coasts, however, had not yet been joined bv railroad ties, and generally speaking railroad transportation was still in its infancy. The gen eral state of transportation then existing is aptly depicted in the following account published in the October, 1865, issue of the “ Merchants’ Magazine” under the title “ The Great Continental Railroad” : “ The visit to this country of a numerous party of English capitalists who have already expended very large sums in opening one of our most important railways is an event of much interest. By many it has been thought that their presence among us is in part, at least, for the purpose of looking after the interests of the road they have been so largely in strumental in building. This line now forms one great national highway, being a uniform gauge from New York to the city of St. Louis, a distance of nearly 1,200 miles; so that the car that receives its freight in one city discharges it in the other. “ The Erie, the Atlantic & Great Western, and the Ohio & Mississippi are the three lines of which this great line is composed. The middle link, extending from the Erie to Cincinnati, is the one constructed by Mr. McHenry and his associates. They had the sagacity to see that a line forming the connections it now does could not fail to participate in the ad vantages enjoyed by the connecting links, while to unite them would be a vast addition to their value and importance as local works. The result has fully justified the action, for both extremes are now earn ing nearly three times as much per month as they did previous to the completion of the Atlantic and Great Western RR. “ The Erie Railway is too well known to require description.. The Atlantic and Great Western leaves it at Salamanca Station, and proceeds by a direct route to Cincinnati, a distance of about 350 miles. In its course it crosses and renders tribu tary to it nearly all the important railroads of Ohio, by which means it maintains intimate rela tions with all the leading points in the West. At Cincinnati commences the Ohio & Mississippi RR., extending thence to St. Louis, a distance of 340 miles. This is a work of first rate importance, whether considered in reference to its local busi ness, or its connections with other thoroughfares, or its identity with great routes of commerce and travel. At Cincinnati concentrate the great trunk roads starting from the cities of New York, Phila delphia and Baltimore. From Cincinnati the busi ness of all these roads is carried forward over one line to St. Louis. There is, consequently, no rail road in the country to which so many important lines are directly tributary. It is, at the same time, by virtue of its directness, the almost sole avenue between two great cities of the West, each contain ing 200,000 inhabitants, each being the local point of great lines of railroad, and each increasing with unexampled rapidity in population and commercial importance. It has also a local traffic equal to that of a first-class Western railroad. “ Another fact adding greatly to the importance of the Ohio & Mississippi RR. and its Eastern con necting lines is the rapid progress of the State of Missouri, consequent upon the abolition of slavery, which has removed the last obstacle to the proper development of the wonderful resources of that great State. Northern emigration, with its capital and enterprise, is now for the first time free to flow into it, and there is nothing that can prevent it from speedily taking rank with Ohio and Illinois, nor, in fact, from becoming the leading State in the Mississippi Valley. “ From St. Louis west a new system of railroads commences. Among the more important of its lines are the Pacific and the North Missouri. The Pacific RR. extends to the Kansas boundary, where it is carried forward some 60 miles by the Union Pacific Railway, E. D., now making rapid progress with ample means furnished by the United States. Upon the route of this road exists a commerce already (Continued on page 2778) Volume 149 ONE HUNDRED The Commercial & Financial Chronicle—Y E A R S OLD — Progress N EW AIR BRA K E E Q U IP M E N T A V I T A L CONT R I B UT I NG F A C T O R We are Justly Proud of Our Fifty Years of Indispensable Service to Railway Progress T h e N e w York A ir Brake Com pany 420 Lexington Ave., New York City Plant: Watertown, New York 2777 ONE HUNDRED —The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939 2778 — A Century of Achievement (C o n tin u e d f r o m page 2776) exceeding the capacity of a first-class road. This commerce is increasing wonderfully in value each year. It is now ascertained that the whole line of the Rocky Mountain range, embracing an area of 500,000 square miles, is as rich in the precious met als as was California. The States and Territories into which this immense area is now divided are filling up as rapidly as did that State upon the first discoveries of gold in it. The railroads of Missouri and Kansas, as well as those connecting with the East, are largely profiting by this tide of emigra tion and commerce, and none more so than the Ohio & Mississippi and its connecting railroads. “ One great advantage now enjoyed by many of our Western roads is their low cost, compared with prices at which they could now be built. This secures them from all danger of competing lines. In the meanwhile their traffics are increasing so rapidly that their earnings are doubled every five years. It is this increase that has worked such a revolution in the market value of railroad shares. Take, for example, the Chicago & Alton RR., the stock of which, as well as its bonds, were, a few years ago, regarded as almost worthless. The road was earning less than $1,000,000, a sum hardly suf ficient to pay running expenses. It was reorganized and is now earning at the rate of nearly $4,000,000. or about 40% gross upon its cost. Its common stock is in active demand above par. This road may be taken as an example of what many Western rail roads will accomplish whose stocks are now selling at one-third their nominal value. All well-situated Western railroads are certain to become highly pro ductive on their cost; and their stocks when largely depreciated offer excellent opportunities for invest ment, the lower they are the greater will be the profit to the purchaser. Our whole system of rail roads is yearly becoming intimately identified with the great interests of the country, and laying more broadly the foundations of a permanent and sub stantial value. “ These facts are conclusive. The income of the great line from New York to St. Louis is three-fold greater now than it was four years ago. There is not a section in the West, as before stated, that does not double its railroad business every five years. This rate of increase must continue for an indefinite period to come. The necessity of the country tapped by the Great Continental RR. is not business, but the means for its accommodation. A double track is now wanted from the city of New York to the Mississippi. That of the Erie Railway is pretty nearly completed. The owners of the Great Western are making preparations for a similar improvement on their line, which Sir Mor ton Peto, in some remarks he recently made at St. Louis, declared to be an absolute necessity. With a double track and uniform gauge for the whole dis tance it would be hardly possible to set any limits to the traffic and revenues of this magnificent line. “As the different links of this great road have identical interests, we learn that it is the design of the companies controlling them to unite in the most intimate relations, if not to consolidate the whole under one common head. As such union must add greatly to the value of all the lines, its accomplish ment may be regarded as an almost foregone con clusion. Such union has been long felt to be indis pensable by the managers of the Great Western, and even if they should not obtain control of the Erie, there is little doubt of their obtaining that of the Ohio & Mississippi— a result which must greatly enhance the value of that important line.” Manufacturing was, of course, of a piece with transportation. The then next preceding census figures (1860), which were becoming available in detail when the “ Chronicle” came into existence, reported 140,433 manufacturing establishments, in cluding hand and heighborhood industries and each plant with yearly products valued at $500 or more, which gave employment to some 1,311,246 persons whose wages amounted to $378,878,966. The value of finished products was reported at $1,885,861,676. In 1914, with hand and neighborhood industries ex cluded, the number of establishments was 272,518, the number of persons employed 7,023,685, wages paid $4,067,718,740, and the value of products $24,216,514,573, while in 1935, really a depression year, the figures reported (with hand and neighborhood industries and establishments with annual products valued at less than $5,000 excluded) were: number of establishments, 169,111; wage earners, 7,378,845; wages, $7,544,338,434; value of products, $45,759,763,062. The country in 1869 was, however, pre dominantly agricultural, and the following figures will make clear how far there was yet to go in reaching the present state of farm productivity. In 1860 the value of all farm property was set down at $7,980,493,063. In 1910 the figure was $40,991,449,090, and in 1930, $57,245,544,269. In 1860 there were 163,110,720 acres of improved farm land in the United States. By 1910 the figure had reached 478,451,750 acres, and in 1935, 1,031,814,370 acres. The Nation, moreover, faced the gigantic task of repairing the damage inflicted by four long years of internecine strife. Problems of this origin were to be observed on all sides, but nowhere more strik ingly than in the state of the finances of the National Government. Mr. Dewey, the financial historian, gives this account of the public debt in 1865: “ The public debt reached its highest point Sept. 1, 1865, when it stood at $2,846,000,000, less $88,000,000 in the Treasury, leaving a net debt of $2,758,000,000. Of this vast indebtedness less than one-half was funded; $433,160,000 was in United States legal tender notes, $26,344,000 in fractional currency, and the remainder consisted of various forms of short-time paper or temporary securities, a large part of which was due before 1868, and a considerable amount was maturing daily. For ex ample, a temporary loan of $107,000,000 was pay able at 10 days’ notice on the part of the holder; there were $830,000,000 seven-thirty notes; com pound interest notes amounted to $217,700,600, and certificates of indebtedness to $85,000,000. On June 30, 1866, the interest-bearing debt consisted of loans bearing five different rates of interest and maturing at 19 different periods of time. On a part of the loans the interest was payable in coin, and on part in currency (then greatly depreciated). Of the 6% bonds and notes there were 12 different kinds; of the 5% loans five different issues, and of the seven-thirty notes at least five, some convertr (Continued ori'page 2780) Volume 149 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD — — 2779 T h is m a ch in e a u to m a tic a lly p r e p a r e s fin is h e d r e p o r ts fro m p u n c h e d ca rd s. A ccuracy and G reater Speed in o ta in b in g th Facts y u req ire e o u T h e In te r n a tio n a l P r o o f M a c h in e E x e c u t i v e s a n d T r u s t O f f i c e r s in te r e s te d in k e e p in g w ell a h e a d o f th e in cr e a s in g d em a n d s fo r d e ta ile d in fo r m a t io n s h o u ld in v e s tig a te th e a d v a n ta g es w h ich I n te r n a tio n a l B u sin ess M a ch in es n o w o ffe r . D a n k T h r o u g h th e m ed ium o f p u n c h e d ca rd s, I n te r n a tio n a l E le ctric A c c o u n t in g M a ch in es p rep a re, a u to m a tica lly , at^high sp eed , th e m a n y r e p o rts a n d sc h e d u le s re q u ire d . T h is m od ern m e th o d e lim in a tes d u p lic a t e p o s tin g s , as w ell as th e k e e p in g o f m a n y sep a ra te r e co r d s . It p ro vides su m m arized in fo r m a tio n in m inim um tim e— an d at m inim um c o s t. T h e I n te r n a tio n a l P r o o f M a ch in e o ffe rs a m eans o f q u ic k ly a n d a c c u r a te ly c o n t r o llin g th e th o u s a n d s o f c h e c k s w h ich are rece iv e d d a ily . It a u to m a tica lly sorts, lists, a n d p roves. I n te r n a ti o n a l A t te n d a n c e Tim e R e c o r d e r I n te r n a tio n a l T im e R e c o rd e rs a n d E le ctric T im e System s assu re a c c u r a te p a y r o ll r e co r d s a n d h e lp to c o o r d in a te th e w ork o f all d e p a rtm e n ts. T h e fe a t h e r -lig h t t o u c h o f th e In te r n a tio n a l A ll-e le c tr ic W r itin g M a ch in e in crea ses ty p in g sp eed as m u ch as 5 0 % . T h is m a ch in e b r in g s a ttr a c tiv e , u n ifo r m ty p in g re su lts a n d w ill p ro v id e as m any as 20 d is t in c t ca r b o n c o p ie s . W rite fo r d e ta ile d in fo r m a tio n . INTERNATIONAL BUSINESS MACHINES CORPORATION World Headquarters Building 590 MADISON AVENUE, NEW YORK, N.Y. jjfl/llta Branch Offices IN PRINCIPAL CITIES OF THE WORLD T h e I n t e r n a t i o n a l A ll-e le c tr ic W r itin g M a c h in e ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939 2780 — A Century of Achievement {C o n tin u e d , fr o m , p a g e 2778) ible at the option of the Government and some at the option of the holder. Bonds of some issues were exchangeable for others. A large portion of the five-twenty bonds caused uneasiness to investors, because of a contingency clause by which the Gov ernment might redeem them within five years of date of issue, that is, in 1867. Of the total debt only one-nintli ran in any contingency longer than two years. ‘Eight-ninths of it consisted of transient — forms issued under laws made up to a great extent of incompreliensive verbiage giving unlimited direc tion over the mass to one man and expressing in the aggregate nearly 100 contingencies of duration, option conversion, extension, renewal, &c.’ It was indeed difficult, as Senator Sherman remarked, for the people of the United States to understand any save two or three of the loans, and none but a suc cessful investor engaged in the sale and purchase of stock could tell the various differences in value of the several securities, and the reasons therefor.” Across Three-Quarters of a Century It was into such a world as this that “ The Com mercial and Financial Chronicle” was born in July, 1865. A great future law ahead, but it required optimism and imagination to envisage it. Great problems lay all around, and it required courage to face them. The country was destined to face other difficult situations, and only cool intelligence and courageous candor could enable any editor to point the way through the troubled times existing and to come, and to dash cold water upon the overexuberances and mad-cap public policies which at various times during the next three-quarters of a century were to appear. More than a decade was to elapse before specie payments were resumed, and in that interval there never was a time when the matter was not being heatedly debated, and nowhere was the subject more regularly and enlighteningly discussed than in the columns of the “ Chronicle.” Meanwhile, banking was a subject of difficulty, and the work of developing the national banking system according to the National Banking Act of 1863, as later amended, had to be done. The perennial tariff question was again and again agitated, public lands in large amounts still existed, currency questions, particularly as regards silver, would not down, and the development of a taxation policy (so far as we have ever developed anything that might be so termed) was unfinished business, and still is, for that matter. Meanwhile, with the almost incredibly swift de velopment of the West and the large influx of for eign populations with vastly different background, so far as governmental philosophy is concerned, from that of the original settlers of the Eastern sea board, there arose what is sometimes termed “ the radical movement” which has laid its impress upon the whole structure and functioning of the Amer ican Government. This development had begun to cast its shadow before it years prior to the Civil War. The leading article in the “Merchants’ Maga zine” in February, 1846, with prophetic vision, called attention to what was in store for the United States in this particular. “ The most important political subject before the American people at the present time,” its author remarked, “ is the approaching change in the geo graphical center of power in the country. While we are intent upon minor interests, we are giving little heed to the fact that in a very brief period the seat of the growing power in these States will be completely changed. Neither the annexation of Texas nor the formal possession of Oregon can be compared, in its influence upon the Atlantic States, with that numerical superiority which, at the very next census, will make the West the dominant por tion of the Republic. “ Let no one suppose that this change will be rather nominal than real— a change in the place of power, and not in the governing influences. Most important changes must take place, and these it behooves the people of the East well and early to consider.” Continuing the subject, the author at a later point remarks: “We are inclined to think that the extreme democracy of the West will be very discernible in Congress after the next census. With institutions somewhat more democratical than ours, the spirit of that section of the country is decidedly in ad vance of us in this particular. There is, there, abso lutely no counteracting force. Wealth is, with us, much more unequally distributed; social distinc tions more marked. Constant intercourse with the Old World has a perceptible influence over the A t lantic towns; and there still remain some remi niscences, faint and fleeting though they be, of family, and family connections. At the West, the ‘spirit of the age’ is so completely the ruling spirit that very little concern is felt about the spirit of past ages; and precedents are discarded, the rather because somebody has tried them before. When this Western characteristic gives a tone to Congress the people of the East will find they have some lessons to learn, with whatever grace they can muster. The great proportion of foreigners in the population of the new States, following the law of reaction, forms an ultra and democratic element, which will be as difficult to manage as a newly-released prisoner after his first draught of fresh air and other intoxi cating fluids.” In the business field were to come the great com bination movements which were to give rise to enor mous, relatively self-sufficient enterprises. The railroad systems of today were to be built, partly by original construction and partly by amalgamating smaller and isolated units actually then in opera tion. The public utility industry virtually in its entirety was to be founded and developed to the stage now existing. Discovery after discovery in the sciences were to be applied to business opera tions and to the production of myriads of products of which the generation of 1865, or for that matter often of 1895, never heard or dreamed. The socalled labor movement in its modern form was yet to develop. These and a thousand other events were to give rise to a thousand thousand problems, not only of industry, trade, agriculture and finance, but of social organization and self-government. The 0Continued on page 2782 ) Volume 149 ONE HUNDRED The Commercial & Financial Chronicle—-YE A R S OLD 2781 — Now ...Talking Pictures for the H m ! oe with New De Luxe 'f y t w H o m e Movie Cameras! ONLY $ E n c a s e d in B e a u t i f u l W a l n u t C a b i n e t s ! S - O - U - N - D is t h e n e x t s t e p i n m o v i e s f o r t h e h o m e . A n d h e r e it is , p e r fe c t e d f o r y o u b y B e ll & H o w e ll, f o r o v e r 32 y e a r s m a k e r s o f H o l l y w o o d ’ s p r o f e s s i o n a l m o v ie e q u i p m e n t . PA LM -SIZE • f Projecto w 4950 P a l m -s i z e F i l m o 8 m a k e s n e w s r e e l l e n g t h m o v ie s c e n e s f o r l e s s t h a n t h e cost of sn a p sh o ts! M akes color m o v ie s , t o o , i n d o o r s a n d o u t , e v e n i n s l o w m o t i o n . A l l y o u d o is p r e s s a b u t t o n , a n d what you see, you get! O n l y $ 4 9 .5 0 . O t h e r 8 m m . F ilm o s to $140. T h is n e w F ilm o s o u n d , e n c a s e d in b e a u t i f u l w a ln u t , p r o je c t s s o u n d - o n -f i l m r e e ls j u s t lik e t h e a t e r p r o je c t o r s . M o v ie s a re o f th e sa m e b r illia n c e . V o ic e a n d m u s ic are e q u a l in t o n a l p e r fe c tio n ! I m a g in e w h a t g r a n d t im e s y o u r f a m ily w ill h a v e e n jo y i n g H o l l y w o o d h i t s at home! A n d t h i s F i l m o s o u n d i s s o p o w e r f u l y o u c a n u s e it a t y o u r c h u r c h o r c l u b . O t h e r m o d e ls a re a v a il a b le f o r la r g e a u d it o r iu m s a n d fo r c o m m e r c ia l u s e . W r i t e B e l l & H o w e l l C o m p a n y , 1 8 1 9 L a r c h m o n t A v e ., C h i c a g o ; N ew Y o r k ; H o lly w o o d ; L o n d o n . Established 1907. Projects B o t h S o u n d an d S ile n t F ilm s W it h th is n e w F ilm o s o u n d , y o u s i l e n t m o v ie s y o u m a k e y o u r s e lf! m ay a ls o sh ow th e 16 m m . A d d M u sic to Y o u r S ile n t Movies N E W “ SHELLO A D IN G " B y a d d in g a p h o n o g r a p h t u r n ta b le a n d m ic r o p h o n e , y o u c a n a c c o m p a n y s ile n t film s w ith m u s ic a l b a c k g r o u n d s a n d a d d y o u r o w n r u n n in g co m m e n ts. Unlim ited Film Supply F i lm o 1 4 1 is a v e r s a t i l e 1 6 m m . c a m e ra w h ic h lo a d s w ith p r e th r e a d e d film m a g a z in e s . P e r m its c h a n g in g f r o m c o lo r t o b l a c k - a n d - w h i t e f i l m in m id r e e l w i t h o u t s p o ila g e . H as n e w e r r o r -p r o o f v ie w fin d e r . O n ly $ 1 1 5 . O t h e r 16 m m . F ilm o s t o $ 1 1 5 5 . F IL M O S O U N D L I B R A R Y o ffe r s th o u s a n d s o f film s fo r r e n t or p u r c h a s e . . . H o lly w o o d h it s , c a r t o o n s , c o m e d ie s , n e w s r e e ls , tr a v e lo g s , s p o r ts , m u s ic , e tc . Beautiful W a ln u t Cabinets M a tc h y o u r fin e h o m e fu r n is h in g s . PRECISION-MADE E asy to carry. BY BELL & HOWELL ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939 — 2782 — A Century of Achievement (C o n tin u e d fr o m page 2780) “ Chronicle” from the first conceived it to be its function to record the changes as they occurred, to keep its readers informed as to their significance, and to do all that within it lay to guide public thinking throughout into constructive and safe channels. A Half-Century As to the first half-century of the life and work of the “ Chronicle” , we are fortunate in having available a rather full account of its objectives and its accomplishments in this world of change and achievement from the pen of Jacob Seibert Jr., who more than any other man living or dead, unless it be Mr. Dana himself, was responsible for that rec ord. Upon the occasion of the completion of the 50year period Mr. Seibert prepared and published in the June 26,1915, issue of the “ Chronicle” a history of the publication, from which we take the following: ■ ‘Possessing undeveloped natural resources of vast extent, and with an energetic population, the mar velous growth here recorded was inevitable when the issue of the Civil War had made it plain that the danger of a divided country had been sur mounted. The only thing that could interfere with the country’s progress was erroneous economic and financial policies. The founder of the paper fore saw this— foresaw what a marvelous industrial era lay ahead and also recognized that the perils attend ing the promulgation of false economic doctrines, which had found a fertile field in the financing en tailed by the war, must be guarded against if the United States would attain the full measure of the growth which its boundless possibilities ensured. He therefore resolved to establish a well-equipped journal— a great organ of public opinion—designed to foster the economic and material interests of the country and bent upon combating false doctrines and dogmas, a paper whose purpose it would be to inculcate correct principles, champion high national ideals and encourage unquestioned standards of business morality. “ It was not, however, the purpose to provide merely a vehicle for editorial discussions and the expression of correct views for the enlightenment and guidance of the mercantile and financial world. Mr. Dana had it in mind also to create a newspaper, which would supply a narrative of all the events, the facts and the information having a bearing upon the industrial and financial situation of the coun try. The editorial announcement in the first num ber of the paper stated this purpose very plainly, saying: ‘Nor will it stop with the advocacy of cor rect principles, but will be in every essential sense a newspaper. All that the economist, the merchant, the banker, the manufacturer, the agriculturist, the shipper, the insurer and the speculator, may need to know in the course of his daily pursuits, will be found duly chronicled in its columns.’ “ How well this latter purpose has been fulfilled the storehouse of facts and statistics contained in the 100 semi-annual volumes that have been issued during the last 50 years abundantly testify. We think we are keeping strictly within the truth when we say that no such repository of information and statistics concerning the transportation, the finan cial and the industrial affairs of the United States can be found anywhere else in the world. And the paper very early acquired a reputation for accuracy and reliability, which it retains to the present day. It has always been the desire to have the reader feel that he could depend absolutely upon every statement that should appear in its columns—not alone in the ‘Chronicle’, but in any of the numerous extra publications issued as supplements during the course of every year. Subject to the liability to error, which human mortals cannot escape, the re quirements of truthfulness and reliability have been faithfully met, though not without the conscious ness of many shortcomings in that respect. Typo graphical and other blunders have on more than one occasion served as reminders that perfection, how ever fervently desired, was far from being realized. But with general recognition on the part of its readers that unusual precautions were being taken ( C o n tin u e d , on page 2784) The first World’s Fair in the United States was held at 42nd Street between Fifth and Sixth Avenues, in a elaborate building known as the Crystal Palace. Built in 1853 by Theodore Sedgwick, 3rd, of Stockbridge, Mass., the building was one of the wonders of the continent until its destruction by fire in 1858. Volume 149 ONE HUNDRED —The Commercial & Financial Chronicle—Y E A R S OLD TH E NEW YORK COTTON EXCHANGE E b ed 1 7 sta lish 8 0 Congratulates The Commercial and Financial Chronicle on Its Completion of O N E HUNDRED YEARS OF SERVICE to American Business NEW YORK COTTON EXCHANGE 2783 ONE HUNDRED—The Commercial & Financial Chronicle— YEARS OLD Nov. 4, 1939 2784 the one meant the advancement of the other. In brief, it has never been a class journal seeking the advantage of any particular interest. Nor has it ever advocated any views out of a desire to com mand public favor, either for the time being or in the long run. It has never yielded to popular clamor, but aimed simply to be right, and always expressed its honest convictions. A Broad Basis The car that revolutionized America. First horseless carriage built by Henry Ford, father of the present-day mass-production system that makes it possible for everyone with a job to own an automobile. A Century of Achievement {C o n tin u e d f r o m page 2782) to guard against the possibility of unintentional error, a reputation for general accuracy lias been built up which is prized as among the paper’s most distinctive possessions and certainly constitutes a very valuable asset. “ The esteem the paper has acquired in that re spect is indicated by the fact that it is often referred to as (Tlie Bible of Wall Street’, meaning that in Wall Street faith in it is as strong as the common faith in the Bible. The expression ‘Wall Street’ may be taken as standing for the great financial interests located in New York, and we have reason to believe that this confidence in its reliability, its soberness of judgment, and its rectitude of purpose extends to the whole circle of its readers. “ We should regret if its influence was circum scribed within so narrow a limit as the Wall Street district or the interests centered there. The ‘Chron icle’ has never been the organ of Wall Street or of any one trade or class. It serves Wall Street only so far as it serves the financial and industrial inter ests of the entire country. It happens that the in terests of the country’s monetary center are synon ymous with those of the community at large, and that in helping the one it necessarily helps the other. But this journal does not aim to cater to Wall Street per se. Its title is broadly comprehen sive of its purpose, and it should be noted that the name is not ‘The Financial Chronicle’, by which it is generally known, but ‘The Commercial & Finan cial Chronicle’. “ For many years the title page bore the descrip tive definition: ‘A weekly newspaper representing the industrial and commercial interests of the United States,’ and also the words ‘Bankers’ Gazette’, ‘Commercial Times’, ‘Railway Monitor’, &c. It was founded on a broad and comprehensive basis, with many separate departments, and it has sought to serve all these departments to the best of human ability. Nevertheless in the editorial expressions of views it has not aspired to be the special cham pion of any of these as distinct units or segments, but has aimed to treat them in their relation to the welfare of the whole country. In other words, if it has advocated any line of policy with reference to the interests represented by any one of its depart ments, it has been because such policy seemed not only calculated to help these particular interests but to benefit the entire community, or because the interrelationship was such that the advancement of “ After the lapse of half a century the broad basis upon which the paper was planned in the mind of the founder commands unqualified admiration. Practically all the departments to be found in the paper today were contained in the original issue. It has not been necessary to add any others. What might appear as new departments are simply sub divisions of original departments which 50 years ago had not advanced sufficiently to demand sepa rate treatment. For instance, under ‘Investment News’ it was long the practice to carry everything of an investment character. This was because the investment field in this country had not yet be come very large or extensive, making it possible within the compass of a few pages to cover every thing relating to municipal obligations, to street railway securities and to the stocks and bonds of steam railroads. As for the big industrial combina tions, with their mass of securities, these were wholly unknown, in the sense that they exist today. In the 50 years since then, population has grown so fast, the number of municipalities has been so enormously increased, and civic bond issues are being put out on such a scale and within so wide an area, from one end of the country to another, that an entirely separate branch of the investment department or section, designated the ‘State and City Department’, has had to be created in order to deal adequately with this branch of the investment field. Again, railway investments have had to be put in a branch by themselves. Furthermore, with the appearance on the public security markets of the great industrial and manufacturing corpora tions still another investment group had to be established for dealing with this new line of appeal to the banking and investment capital of the country. “ We refer to these facts because they show so clearly that in its general outlines the paper was a perfect conception from the start. So broad and comprehensive was the basis on which it was founded that all that has been necessary has been to develop along the lines originally laid down. And the way the paper has been developed has been no less noteworthy than the original scheme or design. This development, of course, may be ex pected to continue indefinitely into the future, in keeping with the progressive spirit which has been the keynote of the paper’s policy throughout. For many years after the paper was founded the weekly issue consisted of merely 32 pages. Today’s issue is 112 pages, and on occasions the number of pages has gone even higher. Even with this increase in the size of the weekly issue it has been found im possible to meet in full the requirements of the various departments under the prodigious growth of the country and the expansion of its trade and commerce. Accordingly, very early the practice was {Continued on page 27 ! 6 ) Volume 149 ONE HUNDRED —The Commercial & Financial Chronicle—Y E A R S OLD CEPTANCE C OR P ORATION Tj T T IT T C is engaged prim arily in facilitatin g wholesale distribution and retail sales of th e follow ing M otors C o r p o r a t io n an d its prod ucts of G e n e r a l w orld - w ide affiliates: C A D IL LA C , LA SALLE, B U I C K , OLDSMOBILE, PO NT IA C , CHEVROLET a u tom obiles; f r ig id a ir e eration a n d air con dition ing; h eatin g e q u ip m en t; GMC OPEL, B L I T Z — foreign delco trucks; m ade appliances for refrig lig h tin g , pow er and BEDFORD, vauxhall, a u to m o tiv e v eh icle s. The business consists of investments in self-liquidating credits, widely diversified as to region and enterprise, capital employed being in excess of $ 8 0 , 0 0 0 , 0 0 0 . In obtaining short term accommodation, one standard form of note. issues GMAC This obligation it offers to banks and institutions, in convenient maturities and denominations at current discount rates. GENERAL MOTORS INSTALMENT P L A N These notes , are available in limited amounts , upon request. EXECUTIVE OFFICE NEW YORK BRANCHES IN PRINCIPAL CITIES 2785 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939 — 2786 — What might be termed the cradle of the public utilities in America was this first house in New York to be lighted by artificial gas. It was the home of Samuel Leggett, first President of the New York Gas Co., at 7 Cherry Street. A Century of Achievement (C o n tin u e d , f r o m page 2784) begun of supplementing the weekly numbers by the printing of extra publications issued at stated inter vals throughout the year. One new supplement after another has thus been added, and many of these are now larger in size than the paper itself. “ Owing to the regulations of the Post Office De partment, these extra publications are called sec tions instead of bearing their right designation as supplements. The earliest of these supplements ap peared on April 3, 1875, and was termed ‘The In vestors’ Supplement’. It contained descriptions and tabular statements regarding the finances and obligations and revenues of steam railways, of street railways, and of municipalities. The printing of that supplement grew out of the practice previously existing of devoting three or four pages a month in the weekly issue to the presentation of this class of statistics. The space in the weekly issue for the purpose had been gradually enlarged and finally the demands for space in this way grew to be so excessive that no option was left but to publish a special supplement given over entirely to that par ticular need. The ‘Investors’ Supplement’, origi nally only 32 pages, had itself to be enlarged with the course of time, and finally there occurred the necessity for some of the subdivisions already re ferred to. Municipal Supplement “ It was decided to take municipal securities out of that supplement and to establish an entirely new supplement, devoted wholly to municipal obliga tions. Accordingly, on Oct. 31, 1891, the first num ber of our ‘State and City Supplement’, or ‘Section’, appeared. This supplement has been issued regu larly twice a year since then, and is a bulky publi cation, the last number, dated May 29, 1915, com prising 216 pages besides the cover. In 1895 the process of subdivision was carried a step further, and street railway securities were also taken out of the ‘Investors’ Supplement’ and a new supple ment, called ‘The Street Kailway Supplement’ or ‘Section’ created, for the purpose of dealing more comprehensively with this class of investments. The first number of the ‘ Street Railway Supple ment’ bore date March 9, 1895. In February, 1908, with the electrification of practically all the street railways in the country and the development of suburban and interurban trolley roads all over the United States, the name of this publication was changed to ‘Electric Railway Supplement’, and it is easy to foresee still another change in the not re mote future to ‘Public Utility Section’ or ‘ Supple ment’, owing to the importance which the light and power concerns and the various water power devel opments are assuming. The ‘Electric Railway Sec tion’ now appears three times a year, and the May, 1915, issued contained 136 pages. “ In October, 1903, the name ‘Investors’ Supple ment’ was abandoned as being too general and vague to be descriptive of the contents of the publication, since both municipal investments and street rail way investments no longer appeared therein. The title of ‘Railway & Industrial Section’ was adopted instead, meaning that this supplement was now de voted to the securities of steam railroads and those of industrial and manufacturing concerns. The ‘Railway & Industrial Section’ appears three times a year, a new number going out to our subscribers today. It contains 184 pages in addition to the cover. “ From the first the ‘Chronicle’ has devoted much space to records of stocks and bond prices. The experience here has been the same as in the case of all other departments. The demands for space became too large to be taken care of entirely in the weekly issue, and another supplement had to be established. For many years it had been our cus tom to publish elaborate tables of stock and bond prices as part of the weekly paper on a stated Satur day each month. Now, however, with the multipli cation of new security issues this no longer answered, and on May 11, 1895, we began the print ing of our ‘Quotation Supplement’, now called the ‘Bank & Quotation Section’. This supplement has appeared regularly month by month since then. In size it is 64 pages. In addition, nine pages of the weekly issue are given over each week to records of stock and bond prices on the leading exchanges. “ We have long made a specialty of weekly and' monthly reports of railroad earnings, and when the Interstate Commerce Commission began to require monthly reports of earnings and expenses of the steam railroads and comparisons with the preceding year became available, we added in February, 1909, yet another supplement, ‘Railway Earnings’, de voted in its entirety to a presentation of these monthly returns and embracing every railroad in the United States that is obliged to furnish returns to the Commission. This supplement consists of 32 (Continued on page 2788 ) Volume 149 ONE HUNDRED T h e — Com m ercial & Financial Chronicle — T H IS L A B E L Y E A R S OLD 2787 helps us fight cancer Thousands o f anxious people, every year, are directed through New York City Cancer Committee courtesy cards to hospitals where their cases are diagnosed and treated . . . either free, or in proportion to their ability to pay. Help save these lives! Your dollar will do this. In addition, you will receive a supply o f Package Labels, and our Quar terly Review giving you the latest information on cancer. p in a d olla r bill to this c o u p o n _________________________________ ___________________________ NEW YORK CITY CANCER COMMITTEE o f the American Society for the Control of Cancer 1 3 0 East Sixty-sixth Street New York, New York For $1 enclosed, please send me a supply of your Package Labels. I understand that in addition you will send me your Quarterly Review. Name--------------------------------------------------------------------------Street C ity - State Persons living outside N ew York C ity and L on g Island m ay w ritefor local information to headquarters: American S ociety f o r the Control o f Cancer, 3 5 0 M adison A v e.,N . Y. ONE HUNDRED T h e — 2788 Com m ercial & Financial Chronicle— Y EAR S OLD Nov. 4, 1919 The Chronicle . . . 100 Years of Service As we approach our own 50th Anniversary, we c o n g r a tu la te THE C O M M E R C IA L & F IN A N C IA L CHRONICLE upon completing a century o f service. It is an achievem ent to be the ou tstan d in g organization in its field. J. S. B ache & Co. E sta b lish ed 1892 MEMBERS LEADING NEW YORK STOCK STOCK AND EXCHANGE COMM ODITY 4 2 Broadway AND OTHER EXCHANGES New York Branch Offices and Correspondents in Principal Cities Complete Brokerage Service— Inquiries Invited A Century of Achievement (< o n t i n u e d f r o m C page 2786) pages and appears about the loth or 20th of each month. The first automobile show. In Madison Square Garden in 1901 was held what was known as the first horseless carriage exhibition. To prove how easily the new con trivance would run and could be steered, a daring exhibitor dodged various obstacles and barriers in a turn about the hall. Thirty-two Publications “Altogether, therefore, no less than 32 extra pub lications of this kind are given to subscribers each year (two numbers of the ‘State & City’, three of the ‘Railway & Industrial’, three of the ‘Electric Railway’, 12 of ‘Bank & Quotation’, and 12 of ‘Rail way Earnings’ ), besides which our ‘Bankers’ Con vention Section’, devoted to reporting the proceed ings of the annual convention of the American Bankers Association, appears annually in Septem ber or October. , . . “ The commercial departments of the paper— the ‘Commercial Epitome’, the ‘ Cotton Department’, the ‘Breadstuffs Market’ and the ‘Dry Goods Market’— remain as at the start and retain their character as valuable adjuncts. The ‘Cotton Department’ is the department which always had the special care of the founder of the paper from the day it was started. Fifty years ago the railroads of the United States were still in their infancy, and the country had not yet attained a large measure of industrial growth. Nor had the vast new sections of the West yet been opened up for settlement or the country attained the prominence in grain production to which it subse quently advanced. The cotton crop of the South overshadowed everything else, and it accordingly was made a distinctive feature of the paper. Owing to the importance of accurate knowledge regarding the progress of the crop and its movement, provision was made for weekly weather reports from leading points in the South, not in the very first number, but soon thereafter, and statistics were also col(Continued on page 2828) Volume 149 ONE HUNDRED T h e — Y E A R S OLD Com m ercial & Financial Chronicle — F your customers bought this way, they might save a few pennies per pound, but they would spend far more for meat. Whether a housewife wants a tenderloin steak, a rib roast, or some hamburger, she naturally takes advantage of your services as an immediate source of supply for any meat product. I Neither her icebox nor her means permit her to buy meat on a wholesale basis. And you justify your slight profit many times over in service, con venience, and careful buying which safeguards the customer’s pocketbook and health. When the retail meat dealer buys insurance from the experienced agent or broker of a stock insur ance company, he does not say, “ $50 worth of insurance, please.” He asks for and gets the advice and full services of an expert purchasing agent in the complex insurance field, like himself an expert 2789 middleman. No worries about uncovered risks that might wreck a business. * * * Because we believe so thoroughly in the services of an expert middleman whether wholesale or retail meat dealer, insurance agent or broker, we refuse to accept business direct because it is not in the interest of the Company or the assured to do so. Wh cn you buy National Surety F id e lity Bonds, Surety Bonds, B urglary or Forgery Insurance through your local insurance agent or broker, you deal w ith a customer and friend who is a fellow member and supporter of the American Business System. • This is a r e p r in t o f a n a d v e r t is e m e n t of a sto ck in s u r a n c e c o m p a n y d ire c te d to th e in d e p e n d e n t b u sin e ss m e n in the m e a t b u sin e ss in y o u r c ity . national Surety corporation V IN C E N T C U L L E N , President ONE HUNDRED YEARS ★ and ★ WALL STREET HEN “ Hunt’s Merchants’ Magazine” , the predecessor to “ The Commercial & Financial Chronicle” , was founded in 1839, in the rear of a building at 142 Fulton Street, the population of the entire United States was only a little over 17,000,000. There were only 26 States, the youngest, Michigan, having been admitted in 1837. The population of New York City was 312,547. No building in Wall Street was more than four stories tall. Many were still occupied as residences, and it was not an un common sight on summer evenings, even two dec ades later, to see families sitting on the brownstone stoops for a breath of air. The south side of Wall Street had suffered greatly in the fire of 1835, which consumed 700 of the city’s buildings in all at a loss of $17,000,000, but in 1839 had been largely rebuilt, although the Merchants’ Exchange, one of the finest buildings in the city and destined to become the home of the Stock Exchange, was still far from completed. Late work in banks and brokerage offices was done largely by candle-light. By driving madly without stops for rests at taverns the stage coach trip from New York to Boston had been reduced to 40 hours. The fare was $11. The depression following the panic of 1837 was still on, but American inventive genius and enter prise were not to be halted. Professor Samuel F. B. Morse of New York had invented a practical mag netic telegraph. A line between Governor’s Island and the Battery in New York was successfully tested in 1842, after which Congress appropriated $30,000 for the establishment of a telegraph line between Washington and Baltimore. But it was a long while before the telegraph came into general use in Wall Street. Much later still did bankers and brokers enjoy the advantage of the telephone. Adding was done with pencil and paper. Writing was done with a quill pen and every man wrote his own let ters. The secretary or stenographer, and especially the female stenographer, were still very far away. In fact, the first women stenographers did not enter Wall Street life until the ’90’s, and were extremely scarce until the turn of the century. Customs and methods change with the times, but th e pur poses of Wall Street and all that the name comprises have always been the same— to obtain and pro- W M o s t o f t h e W a ll S t r e e t lea d e rs r o d e t o b u s in e s s in th e ir p r iv a te ca rr ia g es a n d f o u n d th e m m u ch m o re p le a s a n t a n d r e lia b le th a n th e e a r ly a u to m o b ile s . vide the money fo r the ad- Vancement Of b y Arnold Hofmann enterprises and worthy inventions. It is an in spiration to us to contemplate that as a recorder and chronicler we have over this century had a part in noting the work of banks, investment bank ers, and brokers in building the commerce and in dustry of this country to its present proportions, in helping to develop epoch-making inventions to a point where they are a benefit to all mankind and furnish employment to millions. The reaper, the harvester, the telegraph, the sew ing machine, the telephone, the incandescent light, th e phono graph, the x-ray, the vul canization o f r ub b e r , the pneumatic tire, wireless teleg r aphy, the radio, the gaso line engine, the automobile, the typewriter, the air brake, the Tim e w as w h e n e v e r y b a n k e r a n d b r o k e r airplane --- a ll w r o te h is o w n l e t t e r s , a n d w ith a q u i l l p e n these and many to°" more world-revolutionizing inventions have taken place during the 100 years of our existence and have been built up by the enterprise of indus trial leaders backed by the resources of Wall Street. When business, carried away by its own enthusiasm, beats the drum of progress too vigorously, panics follow, but thus far at least it has always been found that, after the smoke of disaster cleared, the country was another step ahead. From the time of its inception in the good old Dutch days of Peter Stuyvesant, Wall Street has been America’s most conspicuous street. Built of palisades, the wall from which the street took its name was put there to keep out the Indians. The first pool to finance an operation was made at that time and all those who considered the wall a good investment contributed toward its erection. It was not an entirely profitable investment, for after a time the British came and took the little city away from the Dutch, wall and all. But Wall Street remained important and became the choice residential street of the new owners. Then, in turn, the British lost the city to the new republic called the United States, and Wall Street had the distinc tion of becoming the scene of the inauguration of Washington as first President. Congress met in Fed eral Hall, at the corner of Wall and Nassau Streets, and Alexander Hamilton, who lived across the street, Jefferson, Adams, Knox and all the outstand ing leaders of the Revolution and founders of the Nation trod cobbled pavement of old Wall Street. (C ontinued on page 2792) Volume 149 ONE HUNDRED The Commercial & Financial Chronicle—Y E A R S OLD 2791 — BANKING SCOPE T HE Chase National Bank serves a varied and exten sive list o f customers w h o represent, collectively a cross-section o f the econ om ic life o f the U nited States Business m en the country over utilize, directly or through their ow n banks, the national and international banking services of the Chase and capitalize on its k n ow led ge o f markets and financial conditions to facilitate their dom es tic dealings and to speed their goods to other countries. THE CHASE NATIONAL BANK OF THE CITY OF NEW YORK Member Federal Deposit Insurance Corporation -V sC ' " 2792 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939 — Tlie first city directory published in 1786 lists besides the fashionable and notable residents of AVall Street one apothecary, three auctioneers, one grocer, six merchants, two tailors, one clock maker, one printer and bookseller, one snuff and tobacco manufacturer, one owner of a vendue and commis sion store, one tavern keeper, one owner of a “ porter house,” one milliner, one school teacher and an upholsterer. On May 28, 1786, Richard Varick, Recorder of the city and later Mayor, moved into 52 AVall Street, a house previously occupied by Colonel AV. S. Living ston. During the same month Edward Fogarty announced that attendance hours at his school at 46 A rall Street would be from 9 to 12 a. m. and A 2 to 5 p. m. each day. In 1786 stables occupied the site now known as 55 AVall Street, head office of the National City Bank. The owner advertised them in the New York “ Gazeteer” of that years as follow s: “ Four or five stables in AVall Street to let, opposite Colonel AVilliam Livingston’s, with stalls for from two to four horses, rooms for carriages and large lofts for hay.” AVilliam Livingston was a political leader of his day and became the first Governor of New Jersey. His daughter, Kitty, close friend of Mrs. Alexander Hamilton, was a famous belle. In 1709 the first established slave market was erected at the foot of AVall Street, occupying the site of the ancient half-moon fortification and block house of the Dutch era. This market was also used in after years as a meal market, by which name it was commonly known, although it still continued as the established place “ where slaves stood for hire.” In 1686 the mail arrangements were as follows: Arrivals, from New England and Albany, on AVednesdays and Saturdays at 7 p. m. in the winter, and on Tuesdays, Thursdays and Saturdays at 8 p. m. in summer. From the South, on Saturdays and AVednesdays at 10 a. m. in the winter, and on Mondays, Wednesdays and Fridays in the summer. The departures were on intervening days. The value of property in the street began to in crease rapidly before the beginning of the nine teenth century. Some idea of its relative value during the eighteenth century may be gathered from sales at different intervals. In 1700 a house and a lot on the southeast corner of Wall and Broad Streets, 16x30, sold for $815. In 1706 a house and a lot on the north side of AVall Street, 25x116, sold for $580. In 1737 a house and — lot on the north side of AVall Street, 62x102, sold for $550. In 1793 the dwelling and lot of General Alexander Hamilton on the south side of AVall Street, 42x108, sold for $12,000. In 1794 a house and lot, 44x51, sold for $12,550. Among the notable features in AVall Street, prior to the Revolution was the Pitt Statue, which on Friday, Sept. 7, 1770, was fixed upon its pedestal at the junction of AVall and AVilliam Streets amid the acclamations of a great number of the inhabit ants. The statue was of fine white marble, having a Roman habit, the right hand holding a scroll whereon was the sentence “ Articuli Magnae Cliartae Libertatum.” The left hand was extended, the fig ure being in the attitude of one delivering an ora tion. On the south of the pedestal was the inscrip tion, “ The statue of the Right Honorable AVilliam Pitt, Earl of Chatham, was erected as a public testimony of the grateful sense the colony of New York retains of the many eminent services he ren dered America, particularly in promoting the repeal of the Stamp Act.” When the first United States Congress met in AVall Street it was necessary to find lodgings for the Senators and Representatives of the 13 States as well as for President A rashington and ViceA President John Adams. The President leased the home of Samuel Osgood, later President of the City Bank at No. 1 Cherry Street. Mr. Adams went to live at the Richmond Hill Mansion, near what is now Varick and Van Dam Streets. The others, according to the Congressional Directory of the Congress of 1789, took up their abode as follow s: Senators New Hampshire: John Langdon, 37 Broad Street; Paine AVingate, 47 Broad Street. Massachusetts: Tristam Dalton, 37 Broad Street; Caleb Strong, 15 Great Dock Street. Connecticut: AATlliam Samuel Johnson, at the College; Oliver Ellsworth, 193 AVater Street. New Jersey: Johnathan Elmer, 48 Grout, 47 Broad Street; George Leonard, 15 Great Dock Street. Pennsylvania: William Maclay, at Mr. Vandolsen’s, near the Bear Market; Robert Morris, 39 Great Dock Street. Delaware: Richard Bassett, 15 AVall Street; George Read, 15 Wall Street. Maryland: Charles Carroll, 52 Smith Street; John Henry, 27 Queen Street. Virginia: William Grayson, 57 Maiden Lane; Richard Henry Lee, at Greenwich. South Carolina: Pierce Butler, 37 Great Dock Street; Richard Izard, in Broadway, opposite the French Ambassador’s. Georgia: Wil- A n i n t e r e s t in g o ld view o f t h e fin a n c ia l d is tr ic t s h o w in g t h e n o r th sid e o f W a ll S tr e e t b e tw e e n W illiam a n d P ea rl S tr e e ts in tw o s e c ti o n s drau co m es t h e U n ite d S ta te s M o r tg a g e C o m p a n y a n d n e x t t o th a t th e C ity B a n k a n d th e N ew Y o rk L ife I n s u r a n c e a n d T ru st C o m p a n y . A b o v e th is Mos N ew Y o rk F ire I n s u r a n c e C o m p a n y a n d G e o rg e A . E va n s, d e a ler in iro n a n d s t e e l ra ils o n t h e s ite n o w o c c u p i e d b y t h e S ea m en ’ s B a n k fo r Saving Volume 149 ONE HUNDRED—T h e Com m ercial & Financial Chronicle— YEARS iam Few (second President of tlie City Bank), 90 William Street; James Gndd, 34 Broadway. Representatives New Hampshire: Nicholas Gilman, corner Smith md Wall Streets; Samuel Livermore, 37 Broad Street; Benjamin West, 37 Broad Street. Massa chusetts: Fisher Ames, 15 Great Dock Street; Elbridge Gerry, corner Broadway and Thames Street; Benjamin Goodhue, 47 Broad Street; Johnathan Grout, 47 Broad Street; George Leonard, 15 Great Dock Street; George Partridge, 15 Great Dock Street; George Thatcher, 47 Broad Street; Theo dore Sedgwick, 15 Great Dock Street. Connecticut: Benjamin Huntingdon, 59 Water Street; Roger Sherman, 59 Water Street; Johnathan Sturgis, 47 Broad Street; Johnathan Trumbull, 195 Water Street; Jeremiah Wadsworth, 195 Water Street. New Y ork: Egbert Benson, corner King and Nassau Streets; William Floyd, 27 Queen Street; John Hathorn, at Strong’s near Albany Pier; Jeremiah Van Rensselaer, at Strong’s near the Albany Pier; John Lawrence, 14 Wall Street; Peter Sylvester, 45 Maiden Lane. New Jersey: Elias Boudinot, 12 Wall Street; Lambert Cadwallader; 15 Wall Street; James Schureman, 47 Little Dock Street; Thomas Sinnickson, 47 Little Dock Street. Penn sylvania: George Clymer, at Mr. Anderson’s, Pearl Street; Thomas Fitzsimmons, at Mr. Anderson’s, Pearl Street; Thomas Hartley, 19 Maiden Lane; Daniel Heistes, 19 Maiden Lane; F. A. Muhlenberg, Speaker, at Rev. Mr. Kunzie’s, 24 Chatham Row; Peter Muhlenberg, at Rev. Mr. Kunzie’s, 24 Chat ham Row; Thomas Scott, at Mr. Huck’s, corner Smith and Wall Streets; Henry Wynkoop, at Mr. Vandolsen’s, near Bear Market. Delaware: John Mining, 19 Wall Street. Maryland: Daniel Carroll, 52 Smith Street; Benjamin Sontee, 15 Wall Street; George Gale, 52 Smith Street; Joshua Seney, 15 Wall Street ;William Smith, 52 Smith Street; Michael Jenifer Stone, 15 Wall Street. Virginia: Theodore Bland, 57 Maiden Lane; John Brown, 19 Maiden Lane; Isaac Coles, 58 Maiden Lane; Samuel Griffin, at the White Conduit House, near the Hospital; Richard Bland Lee, 15 Wall Street; James Madison Jr., 19 Maiden Lane; Andrew Moore, 15 Wall Street; John Page, 19 Maiden Lane; Alexander White, 19 Maiden Lane; Josiah Parker, 57 Maiden Lane. South Carolina: Edanus Burke, at Mr. Huck’s, Wall Street; Daniel Huger, at Mr. Huck’s, Wall Street; William Smith, in Broadway, next the Spanish Minister’s; Thomas Sumter, 40 OLD 2793 Wall Street; Thomas Tucler Tucker, at Mr. Huck’s. corner Smith and Wall Streets. Georgia: Abraham Baldwin, 193 Water Street; James Jackson, 53 Broadway; George Matthews, 53 Broadway. With the departure of Congress to Philadelphia, and later to Washington, Wall Street lost its politi cal brilliance but rapidly became again a power as the financial heart of the Nation. The great era of railroad building was under way by 1835. The Harlem RR. stock went up from 64 to 100 in five months; Mohawk Utica & Harlem, New Jersey RR. & Transport Co., and Providence & Boston RR. were in great demand for investment and in 1838, Wall Street handled $40,000,000 in rail road stocks. Foreign capital fairly flowed into the country for railroad investments, and it is esti mated that $400,000,000 of European money went into the building of American railroads in the first 50 years. But the issues of transportation stock in that year were surpassed by $60,000,000 in bank shares and $50,000,000 in canals, in which the Erie Canal, the Delaware and Hudson, and the Morris Canal of New Jersey were leaders. In 1840 many new projects were supported by the Exchange; 23 insurance companies, capitalized at $6,000,000,000; 33 banks, capitalized at $ 12,000,000. By 1845 the railroad mileage of the country reached a total of 4,000 miles, which meant that more rails had been laid in the United States than in all of the Continental countries combined. As an outgrowth of the increased transportation facili ties, there came new industries, thus creating new cities needing public utilities, and all affording attractive opportunities for investment. American industry in 1850 had a capitalization of half a billion dollars, practically all of which was the direct or indirect outgrowth of New York Stock Exchange activities. The years between 1859 and 1873 were the golden harvest times of great American fortunes. The Civil War boomed all stock. There was an ascending mar ket to 1873. Michigan Central, Michigan Southern, Cleveland & Pittsburgh, Rock Island Chicago & Burlington, and Pacific Mail were mounting with the country’s westward expansion. Erie went up to 126 in 1864 and Harlem to 285. Then came the great panic of 1873. The market slumped for over seven years, but in 1881 and 1882 it revived and then surpassed all former activity. The price of a seat on the Exchange rose to $32,000. During (Continued on page 2796) an artist in 1879. A t the extreme left is the site o f the present Bank o f America building, next to it is th e old Bank o f New York building. Next president o f the City Bank, carried on his own business. Other businesses listed on the street are the M anhattan Fire Insurance Com pany, th e quaint carriages and om nibuses and also the little steam locomotive drawing the elevated train. ONE HUNDRED T h e — 2794 Com m ercial & Financial Chronicle — YE A R S OLD Nov. 4, 1939 st a t e E sta b lish ed . 1812 and M UNICIPAL BONDS M EM BER FED ERAL IN S U R A N C E D E P O SIT C O R P O R A T IO N ♦ Municipal Bond Department H ead 55 W O ffic e : all St r eet N ew Y ork C it y The National City Bank of N ew York Volume 149 ONE HUNDRED — T h e Com m ercial & Financial Chronicle — Y E A R S OLD TIMELY SERVICE for Exporters and Importers In the months to come, foreign trade with some parts of the world is likely to show substantial increase. On the other hand, shipments to and from other countries may be subjected to various restrictions. Manufacturers Trust Company, with a large and highly trained Foreign Department personnel at its principal office, and with correspondents in all parts of the world, is in a position to render valuable service to manufacturers and merchants engaged in overseas trade. TO EXPO R TER S we furnish our "Exporters Handbook,” which contains current information on exchange regulations in foreign countries. This book of over 100 pages is in looseleaf form, and is kept up to date by our revision service. T O IM P O R T E R S we make available the extensive facilities of our Commercial Letter of Credit Division, which is recognized as one of the best organized in this city, and which can be of considerable assist ance in working out import problems. T O E X P O R T E R S A N D IM P O R T E R S doing business in foreign currencies, we offer the services of our active Foreign Exchange Trading Division, which continues to execute a large volume of business on both sides of the market despite rapidly changing conditions. We cordially invite inquiries fro m companies engaged in foreign trade Manufacturers Trust Company Principal Office and Foreign Department: 5 5 Broad Street, New York European Representative Office: 1, Cornhill, London, E. C. 3 • Member Federal Reserve System Member New York Clearing House Association Member Federal Deposit Insurance Corporation 2795 2796 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD — 1882 transactions valued at $7,000,000,000 were consummated on the floor of the Exchange. In 1899, with the ending of the Spanish War, the United States awoke to its reality as an empire, with great new responsibilities in the Caribbean and the Pacific. Interests in Far Eastern com merce quickened the imaginations of great pro moters as they once had those of the merchant princes of the old China trade. It is estimated that 90% of the stocks listed on the Exchange advanced. As many as 1,500,000 shares a day changed hands in Wall Street. By 1900, 199,000 miles of railroad had been constructed and the value of our manufactures was $11,000,000,000. With the new century came the great financial impetus to industrial consolidation engineered by the magnates of Wall Street. Such colossal com panies as the American Sugar Refining Co., the American Tobacco Co, the American Car & Foundry Co., and the International Paper Co. were capital ized at hundreds of millions. The prosperity of the country verified faith in the future. Vast fortunes were reaped by the great capitalists behind the con solidation movement. During the Civil War the Exchange had been housed on the corner of Wall and Beaver Streets. In 1865 it was established in the first constructed portion of its present beautiful building at 10 Broad Street, designed by James Renwick, the architect of St. Patrick’s Cathedral and Grace Church. In 1923 the original Exchange building was greatly enlarged by the addition of its exten sion to Wall Street. When Cyrus W. Field completed his great cable in 1867, and Europe and America spoke to each other over the deep sea cables of the Atlantic, the New York Stock Exchange was empowered to sell securities in European markets on the same day they were selling in New York. With the first arbitrage deals the Stock Exchange assumed the international character which has made it the prime agency of international finance in this country. From the early days of Captain Kidd, who was a respected resident of Wall Street before he turned pirate, the Street has never been without its colorful figures, great organizers, daring plungers and gay spenders, good losers. Two famous early-day speculators of this type in Wall Street were Jacob Barker and Jacob Little. Jacob Barker was a vigorous figure. He succeeded Nathaniel Prime as the most potent banker of the Street. His notes were Wall Street’s currency, even when he was losing heavily, for the Exchange felt confident Jacob Barker would make another fortune and honor them. An old history tells us that so interested was Jacob in his affairs that he would not go home to dinner. He challenged David Rogers to a duel because he got ahead of him in starting a bank. He owned many ships, and saved pilotage on them when they left New York ~ harbor by steering them out himself. During the War of 1812 he assisted Going downtown from i4 th the Government to the S tr e e t t o W all S tr e e t w as q u it e extent Of $100,000 by piira n a d v e n tu r e in t h e h o r s e c a r . ,. , , „ d a ys, e x p e c ia lly fo r a la d y . CliaSlllg that amOUllt Of — Nov. 4, 1939 its securities. Jacob Little was called the “ Napoleon” of W a l l Street. He had come from Newburyport and opened an office in a Wall Street basement, following an appren ticeship in Jacob Bar ker’s store. He made and lost three fortunes in railroad i n v e s t ments, but his sus pended p a p e r s considered better A ll b o o k k e e p i n g Was d o n e by the checks of h a n d a n d in t h e la te w in te r a f t e r n o o n s b y k e r o s e n e la m p o r c a n d le men. The Civil lig h t. swept away his fortune. The man who was seen daily on the Ex change for years died saying: “ I am going up. Who will go with me?” Cornelius Vanderbilt was rated “ among bears the most bearish; among bulls the most bullish.” It was his policy to buy the controlling interest in a company and lock up the stock. In this way he secured for himself the mastery of Eastern trans portation. His greatest rival was Daniel Drew, the “ Great Bear” of Wall Street, who continued to operate on the Exchange at the ago of 72. Both he and Commodore Vanderbilt operated through brokers and never appeared on the Exchange floor themselves. “Uncle” Daniel, as his contemporaries called him, had been a barefoot cattle boy who made his original fortune as tavern keeper at Bull’s Head. He first appeared in Wall Street in 1836. His cus tom was to buy a million dollars’ worth of stock at a time. He was often a heavy but gallant loser. He lost $500,000 in a corner on Harlem RR. If he set out to crush an opponent by bulling or bearing the market, he had the power to do it. It was said of him : “ His touch is death.” However, Daniel Drew was an ardent churchman, and at his death left part of his fortune to found Drew Theological Seminary. Thomas R. Agnew was celebrated for his “ Midas touch” because of the persistent good luck that characterized his Exchange deals. In 1845 Henry Brevoort was another daring operator in the Street, dubbed by his colleagues “ the millionaire.” The career of Henry N. Gifford, a lawyer conspicu ous on ’Change in 1845, was, according to his biog raphers, meteoric. He made his fame as a broker in Wall Street, “ where he operated to an extent to justify his most sanguine expectations.” The foun dation for the fortune of Leonard Jerome was laid in the panic of 1857. The ostentatious wealth of this king of finance made him a popular fellow as a patron of actors and owner of race horses. But at a single drop in the Exchange he lost $800,000, and finally all of his great fortune of $6,000,000 went by the board. James Fisk Jr., or “ Jubilee Jim” as he was called, came to Wall Street as assistant to Daniel Drew. As a manipulator of railroads Van derbilt alone was his peer. The climax of his un scrupulous methods came in the Black Friday of 1869, when he and Jay Gould attempted to corner the gold market. His instinct for coining money was well illustrated when he bought the Grand Opera House, moved in the Erie Railroad’s general 0Continued on page 2798) Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD — — Corn Exchange Bank Trust Co. ESTABLISHED 1853 A Bank Statement that any M a n or W om an can Understand Condensed Statement as at Close of Business September 30th, 1939 Due Individuals, Firms, Corporations and Banks . $329,420,341.29 To meet this indebtedness we have: Cash in Vaults and Due from B a n k s....................... $136,209,114.30 Cash Items in Process of C o lle c t io n ..................... 15,465,034.91 U. S. Government S e c u r it ie s ................................ 119,336,598.65 (Direct and fully guaranteed, including $3,051,000 pledged to secure deposits and for other pur poses as required by law.) Canadian Government S ecu rities.......................... State, County and Municipal Bonds . . . . Other Tax Exempt B o n d s ..................................... Railroad B on d s.......................................................... Public Utility B o n d s ............................................... Industrial and Other B o n d s ................................ 18,000 Shares Federal Reserve Bank of N . Y . . . 2,499 Shares of Discount Corp. of N . Y . at cost . . 9,990 Shares of Corn Exchange Safe Deposit Co. . Sundry S ecu rities..................................................... Secured Demand L o a n s .......................................... Secured Time L o a n s ............................................... Moans and Discounts U n s e c u r e d .......................... *First M o r t g a g e s .................................................... Customers’ Liability on Acceptances..................... *Banking Houses Owned ..................................... *Other Real Estate O w n e d ..................................... Accrued Interest R e c e i v a b l e ............................... Other Assets............................................................... 4,978,312.34 3,949,336.41 5,785,235.96 5,673,756.93 7,361,634.67 2,925,146.46 900,000.00 299,880.00 824,000.00 387,735.00 14,817,093.34 1,994,164.72 9,935,871.40 17,945,685.86 864,671.91 12,055,118.92 1,955,575.45 1,124,412.62 148,676.12 Total to Meet Indebtedness..................................$364,937,055.97 This l e a v e s ................................................................... $35,516,714.68 * Less Reserves. Capital $15,000,000.00; Surplus and Undivided Profits, $20,516,714.68 We can act as your Executor or Trustee, issue Letters o f Credit, Travelers’ Checks and Drafts on Foreign Countries and provide every Banking and Trust Service 74 Branches located in all Parts o f the City of New York. Member Federal Deposit Insurance Corporation. 2797 2798 ONE HUNDRED —The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939 offices for good publicity, and continued to run the theater at a large profit every night. Then also there were the great builders of for tunes and enterprises. John Jacob Actor, who arrived from Germany in the steerage with seven flutes as his only worldly possession, changed his musical instruments for a few fur pelts, which became the foundation of the greatest fortune of his day, $50,000,000, acquired by his pioneer imagination and lifelong industry. Across a continent of wilderness he opened trading posts on the Northwest Coast. He sent his ships across the Pacific, and they sailed home around the Horn, coming into New York harbor laden with tea and silks from China, where they had sold their furs. He made shrewd investments in real estate in New York. In his old age it was estimated that John Jacob Astor’s financial assets brought him $2,000,000 a year. Stephen Whitney, well-known as a cotton specula tor, was regarded, next to Astor, as the richest man in New York. His fortune, $10,000,000 in 1845, was made in real estate. William Bayard Jr., President of the Chamber of Commerce and a trustee of Sailors’ Snug Harbor, owned the Tontine Coffee House, the first office building in the city, and by his business concentration accumulated quite a fortune. The Aspinwall brothers, Gilbert and John, who had made their wealth in shipping and jobbing, were among the first directors of the Second Bank of the United States. John Watts, with a personal fortune of $300,000, was active in financing the building of the Merchants’ Exchange, which was to enhance all the business life of New York. Among the wealthy men of New York City who subscribed thousands to the Federal loan of 1813-14 to finance our “ second war of independence” were Benjamin Bailey, Philip Brasher, Isaac Clason, H. C. deRhom, Robert Chesebrough, James Thomas, Douglas Alonson, L. Bleecker and Peter Schenck. Peter Schenck’s indomitable “ business as usual” principle caused him, during the blockade, to have cotton carted overland 900 miles from South Caro lina to Fishkill Landing, N. Y. John Wilkes, long associated with the Bank of New York, and eventually its President, was sent to London in 1822 to negotiate a loan of £200,000 with the famous firm of Baring Bros., which he con cluded at 5% for eight years, thus inaugurating the era of New York’s international transactions in finance. James McBride, from Armagh, Ireland, chandler and founder of The Friendly Sons of St. Patrick, was interested in many early banks and insurance companies. Jacob Lydig, whose family fortune originated in his father’s business of supply ing ship-biscuit to vessels spreading sails for far sea journeys, was for half a century a director in every new banking and insurance company in the city. Robert Lenox, one of the five richest men in New York, out of his financial experience furnished advice to Nicholas Biddle, President of the Second Bank of the United States. George Griswold, a great merchant shipper and an expert on marine insurance, gave lavishly of his fortune to the people of the suffering city during the yellow fever plague of 1822. Other names to be found on many boards of directors of new financial institutions were Henry Eckford, Richard Harrison, Walter Bowne, — Peter Remsen and Eleazer Lord, who wrote an excel lent treatise on banking. Faith in the magnificent enterprise of developing a new country dominated men of New York, whose imagination and capital made possible the era of na tional expansion measured by the 75 years between 1825 and 1900. With ceaseless energy they were the promoters of the Nation’s trade, railroads, cities and industries. The unique economic opportunities of a young country called forth their power to com bine the creation of personal fortunes with their work for the prosperity of the United States. They made their city the financial capital of the Nation. The pioneer enterprise of opening up the conti nent had been begun by that famous old merchant, John Jacob Astor, who blazed the trail westward against the odds of treachery in his own company. After him came, in the next generation, the railroad financiers, who built the great steel highways over which civilization crossed frontier after frontier. Between 1860 and 1870 the railroad mileage of the country increased from 30,635 to 52,914 miles. By the next decade it had reached 93,296 miles. Cornelius Vanderbilt developed the New York Central RR., and by clever manipulation of the stock market acquired control of the first system of railroads. His competitor was Jay Gould, who launched the Erie enterprise. Moses Taylor, Presi dent of the National City Bank, with his wealth backed the feeble Delaware & Lackawanna and made it a success. Frank Stuart Bond spent 43 years on the Stock Exchange financing railroads, among them the Philadelphia & Reading. Roswell P. Flower engineered the Chicago Rock Island & Pacific stocks into popularity. Henry Keep dis covered the value of railroads in the Northwest, and made a fortune over the famous blind pool of North western stock. It was in this road that Jay Cooke sank his fortunes. James J. Hill bought a railroad that was “ two streaks of rust running into the desert,” and from the wreckage developed his transcontinental sys tem, the Great Northern. Collis P. Huntington par alleled Hill’s pioneer lines to the Coast. Henry Keep launched the promising Northern Pacific RR. stock, and his colleague, Rufus Hatch, made known to Americans the wonders of Yellowstone Park by his far-reaching project of making the railroad an open sesame to the country’s beauty, as well as to its commercial resources. With the same imagina tive grasp of the future, Mr. Hatch became an energetic promoter of the Panama railroad that united the oceans before the day of the Panama Canal. Russell Sage financed 5,000 miles of rail road and was identified with 40 roads. The follow ing capitalists were also prominent in railroad financing: Charles L. Colby, Samuel Marsh, John M c A nerney, Jonathan Stur1 , _ ges, Austin Corbin, Alfred Sully and Sid ney Dillon. In like man ner Wall Street energy a n d money put life T h e a g e o f ra ilro a d b u ild in g b r o u g h t into the Amer- n e w era o f p r o s p e r i ty a n d e x p a n s io n . (< Continued on page 2800) Volume 149 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD — — 2799 Latest News v i a ss I n 1839, the year the Commercial & Financial Chronicle was founded, New York newspapers often published "extras” to announce the arri val of a ship from abroad. The "British Queen,” pictured above as she entered New York harbor on September 20, 1839, carried "highly impor tant news” from Europe—news that took 18 days to reach America. Undoubtedly, she also carried goods whose shipment was financed by the Bank of New York. The America of 1839 was far different from the America of today. There were then only 26 states in the Union. The country was strug gling out of the worst panic it had ever suf fered, and specie payments had been resumed B an k 48 UPTOWN Established 1 7 8 4 of only the previous year. The securities traded on the New York Stock Exchange were chiefly those of canal companies, railroads, banks and insurance companies. Industrial America was still a thing of the future. By 1839, however, the Bank of New York had already rendered 55 years of service to American business and finance. Founded by Alexander Hamilton in 1784, before the British troops had evacuated the City, this Bank played a leading part in the development of America’s early trade and finance. It helped to establish many sound banking principles and practices that have successfully stood the test of the past century and a half. N ew Y ork W all Street — N ew York OFFICE: MADISON AVENUE AT 63RD STREET Persotial Trusts Since 1 8 3 0 2800 ONE HUNDRED —The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939 ican steamships both coast wise a nd transoceanic. From a little Staten Island market boat, Commodore Cornelius Vanderbilt evolved his Atlantic passenger ships. Daniel Drew promoted the Hudson Steamboat Co. on our interior waters. Rufus Hatch financed the opera Early telephoning Was tion of the Pacific Mail such a patience-trying Steamship Line and founded p ro ced u re th a t m ost bankers and brokers pre the Iron Steamboat Co. of ferred to use messengers. New York. The great Webb Lines of steamships were launched on both oceans. When Cyrus W. Field was seeking capital for his experiment in laying a cable across the Atlantic, he received from Moses Taylor, O. S. Wood, Corrin Squire, and the men whom their enthusiasm had convinced, the money to make possible his miracle of communication that transformed the relations of the world. Among those who were thus persuaded, and later generously rewarded, were: Peter Cooper, David Dudley Field, Chandler White, Marshall 0. Roberts, Samuel F. B. Morse, Moses Taylor, Daniel Huntington and Wilson G. Hunt. When the Civil War broke over the country in 1861 the practical feature of financing the conflict was shaped in Wall Street. The money was raised through the sale of Government bonds. Jay Cooke carried on a national advertising campaign with agents in every hamlet of every State. The firm of Fisk & Hatch became the most widely known bond house in the country through its able handling of Government securities. At Lincoln’s call, John A. Stewart left the United States Trust Co., which he had helped to organize, and served as Assistant Treasurer of the United States. Richard Henry Winslow, Moses Taylor, Henry Clews and a score of other well-known bankers and brokers undertook the onerous task of turning Government bonds into cash to arm, feed and clothe the Union Army during the four hideous years of the Civil War. The trust movement, which became a recognized phenomenon of American industry in the nineties, was primarily promoted through Wall Street, where the transfer of stock in huge blocks gave individual capitalists and syndicates control of whole fields of American labor, productions and merchandising. Of the new type of trust magnate, J. P. Morgan was a leading example. The financial genius of J. Pierpont Morgan brought into his control more wealth than was possessed by all of the American Colonies at the time of the Declaration of Independence. Mr. Mor gan first became a conspicuous figure in Wall Street when, in 1873, he took over the Government business of Jay Cooke when the failure of that house precipitated the great panic. With Levi P. Morton, he assisted in negotiating the refunding of $700,000,000 worth of United States bonds between 1876 and 1878, thus reviving European faith in United States securities. In 1895 Mr. Morgan agreed with President Cleveland to furnish $62,000,000 worth of gold to break the gold famine fol lowing the panic of 1893. When the railroad boom broke in the early nineties, due to the great over expansion of construction, and half of the railroads of the country went into the hands of receivers, Mr. — Morgan was the one man who could engineer the capital to rehabilitate them. He reorganized the Big Four System, the Southern RR., the Reading, the Erie, and the Northern Pacific, underwriting their liabilities and restoring them to a paying basis. With a sure hand he initiated the era of rail road consolidation. The first of his many inter national negotiations was floating the British war loan for $50,000,000 in 1901, the first foreign war loan ever offered in the United States. In 1903 the Roosevelt Government arranged with him for the $40,000,000 with which to purchase the French rights in the Panama Canal. The supreme accom plishment of his brilliant skill in managing vast financial projects was his creation of the United States Steel Corp. in 1901. This was the biggest combine ever attempted, a billion dollar consolida tion, including industrial plants, railroads and banks by the score. He and his syndicate bought out Andrew Cargenie’s steel interests for $447,000,000, the greatest sale in the history of the world. The steel merger controlled interests in the Illinois Steel Co., Federal Steel Co., American Steel & Wire Co., and the American Steel & Tinplate Co. Both the Rockefeller and Morgan millions were merged in this great trust. Former Judge Elbert Gary, as their corporation counsel, drafted its charter and constitution. In the panic of 1907 Mr. Morgan came to the rescue of the Knickerbocker Trust Co. when it was undergoing an unprecedented run to the extent of $34,000,000. In that year, to save a famous Wall Street firm from bankruptcy, he bought the Tennessee Coal, Iron & RR. Co., chief competitor of the United States Steel Corp., for $30,000,000 in bonds. These mighty operations of the great captain of American capital made him the most spectacular figure the financial world has produced. The one man who rivaled J. P. Morgan as a rail road organizer was Edward H. Harriman. Start ing with the New York New Haven & Hartford as a nucleus, Mr. Harriman, by daring strategy in the stock market, secured control of a railroad empire of 75,000 miles. He was a brilliant figure in the Northern Securities Holding Co., where he came first into competition, and then into combination, with the Hill interests. He bought the run-down Union Pacific, paid the United States $45,000,000 in cash for it, and created a market for its stock, until the road across “ the great American desert” became rich enough to act as its own bank. He was at the height of his ambition as a master of trans portation when he died in 1909. Since 1882 “ 26 Broadway” h a s not only been the center of the pe troleum industry of the country, but the c e n t e r also of the great reservoir of capi tal developed by the Standard Oil Co. The t h r e e men who made this phenomenal ^ was not . corporation were until the turn o f the cen tu ry that th e “ lady stenographer” made h er b o w in w a ii s t r e e t . ('Continued on page 2802 ) Volume 149 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD — — 2801 2802 ONE HUNDRED— T h e Com m ercial & Financial C hronicle — YEARS OLD Nov. 4, 1939 John D. Rockefeller, Henry M. Flagler and Henry H. Rogers. Almost every field of American production has had its wheel horse of finance. The name of Henry H. Rogers is associated with the famous stock of the Anaconda Copper Mine, known as “ Amalgamated Copper,” which Mr. Rogers intro duced to the New York Stock Exchange. Andrew Carnegie, Henry M. Frick and Charles M. Schwab controlled an empire of steel which had its origin in the Pennsylvania Homestead plant pur chased in 1880 by Andrew Carnegie. The era of industrial consolidation inaugurated by Rockefeller and Carnegie was carried on by the creation of such typical trusts as the International Harvester Co., organized by George W. Perkins; the Amer ican Tinplate Co., the National Biscuit Co., spon sored by William Henry Moore, and by the merger of all the lighting companies in New York City brought about by William C. Whitney. In the field of Oriental finance, opened by the Spanish War, Jacob Schiff of Kuhn, Loeb & Co., was one of the pioneers, when his company handled the Japanese w'ar loan of 1904. The flow of American capital into Chinese railroads brought forward another group of Wall Street financers. Freeman Hunt Building the Hoosac Tunnel (North Adams, Mass.), November, 1873. This country*s first long-distance railway tunnel— 4 3 a miles long, built at a cost of / to claim it. But, shall we confess it? (and it is, per haps, for one of those dry statisticians, whom popu lar opinion is apt to set down as beings devoid of feeling, and dealing in no figures but the numerals, something of a confession) the feeling that influ ences us on the occasion is somewhat of the senti mental kind. “ The motive which leads friend to send to friend the likeness of features which the intercourse of years and old associations have rendered interest ing, is as natural as it is proper. The intercourse which, during the last 10 years, has existed between the editor of the ‘Merchants’ Magazine’ and his numerous readers, the silent intercourse of mind with mind, springing out of a common interest, on his part as editor—on theirs, as readers on the same important topics, is not of precisely the same kind as that of friend with friend. We shall not, there fore, presume to speak for the many readers or friends (if they will allow us to call them so) in New York and throughout the United States, cisat lantic and transatlantic, and we may say in the four quarters of the ‘Great Globe itself,’ for whom we have labored during the last 10 years. What may be their feelings towards the humble individual who has, in this work, put forth his best energies to supply a want long felt, and to furnish to a most enlightened class of readers, at once, an organ for their views, and a magazine of information for their use, it is not for him to guess. But for himself he can say that, as he has advanced with his work, every year gaining larger views and a clearer con ception of the extent, the length, and the breadth of the great field of mercantile science, which it has been his business and his pleasure to explore; as his information and sources of information have increased and multiplied; as, in short, his knowl edge of his subject, and with it his love of his sub ject, have grown and strengthened, a kindly near ness of feeling has at the same time grown up in his own mind towards the large and increasing circle of readers for whom he has labored, and many of whom have accompanied him with their approval and support from the beginning of the work. “ The difficulties which attended that beginning, the labors that had to be performed, and the obsta cles to be surmounted before the work could be established upon a broad and safe basis, are known best to him who is least willing to speak of them— the editor himself. But this much we may say, that the idea of the ‘Merchants’ Magazine’ was no sudden thought, was not suggested by mere acci dent. It was a long time the subject of much $ 12, 000 , 000 . (Continued on page 2804 ) (Continued from page 2743) bed, prostrated by a painful disease, he would dic tate and arrange work on hand, and direct his secre tary, who sat by a table placed at the foot of his bed. The numbers were issued regularly, and the last number, that of March, 1858 (that is, the last number edited by Mr. Hunt), he worked on with his customary assiduity, though with great physical pain. A sense of relief came to him the day before his death, March 1, when the March number of his magazine was put into his hand completed. He looked over it and said, with a smile, to a friend at his bedside: ‘This work has been my hobby in life and my hobby in death/ ” But no other person could hope so clearly and so authoritatively to portray his interest in and his attitude toward his masterpiece as the editor him self. Upon the appearance of the first issue of the twenty-first volume of his “ Merchants’ Magazine” he presented his own apologia pro vita sua under the title “ The Editor to His Friends and Patrons,” in the following words: “ We feel that we are taking a sort of liberty (a liberty, however, for which we shall offer no apol ogy) in sending to our readers, with the present number of the ‘Merchants’ Magazine and Commer cial Review’, the first of the twenty-first volume, and of its second decade, a portrait of the editor. Some authors deem themselves privileged or licensed to prefix their counterfeit presentment to their first book, when their name is as litle familiar as their features, and their features derive no additional in terest from their name. Our 10 years’ labors, our 20 volumes, viginti LIBRORUM lucubrationes, might perhaps entitle us to an equal right had we any itch for the digito monstrarier, and felt disposed Volume 149 ONE HUNDRED — The T h e Com m ercial & Financial C hronicle — YEARS OLD D im e S a v in g s o f B ro o k ly n D a n k BROOKLYN, N Y . Incorporated 1859 OFFICERS _______ _ _President PHILIP A. BENSON_________________________ FREDERICK W. ROW E_____________________ Vice-President _ _ Vice-President W ALTER H A M M ITT ________________________ ___ __ _ _ Treasurer GEORGE C. JOHNSON______________________ _Secretary ROBERT L. FERN ALD______________________ AUSTIN C. CHESHIRE______________________ _ __Comptroller ___ Assistant Treasurer JOHN D. GRAHAM__________________________ A. EDW ARD SCHERR, J R __________________ _Assistant Treasurer EUGENE R. SHOTWELL____________________ _Assistant Secretary CLINTON L. M ILL E R ______________________ _ Assistant Secretary RAY C. SHEPHERD________________________ -Assistant Secretary ALFRED R. MARCKS________________________ __ _Mortgage Officer CLINTON W. P ARK ER _____________________ _ Assistant Secretary ROBERT D. B AR K E R _______________________ Real Estate Officer EDWIN H. BIED ERM A N _____ _____________ _Assistant Secretary GUY L. GOULD_____________________________ _ _ -Assistant Secretary GEORGE N. M AUGER______________________ Assistant Comptroller GUSTAV T. ANDREN ---------- Asst. Mortgage Officer HELEN R. F E IL_____________________________ _____ __ Assistant Secretary Albert Hutton Arthur C. Weymann__ _ _ __ _ _ Counsel _ _Solicitor TRUSTEES FREDERICK W. ROWE WALTER HAM M ITT FREDERICK L. CRANFORD W. J. WASON, JR. EDW ARD C. BLUM THOMAS H. ROULSTON JOHN F. BERMINGHAM PHILIP A. BENSON ARTHUR L. J. SMITH JOSEPH K. SMITH WILLIAM W. WALSH ALBERT HUTTON FRANK F. JACKSON HENRY A. INGRAHAM GEORGE C. JOHNSON ROBERT L. FERNALD CHARLES R. GAY DE W ITT A. FORWARD RESOURCES over_____________ __ $232,000,000 DEPOSITORS over____________ 204,500 SURPLUS over________________ __ $ 33,500,000 2803 2804 ONE HUNDRED—The Commercial & Financial Chronicle YEARS OLD — Freeman Hunt 0Concluded, from page 2802) Nov. 4, 1939 purposes of the ‘Merchants’ Magazine.’ The editor regards it as not the least of the happy results of the labors and studies to which his taste and his duty have led him in conducting this magazine, that they have strengthened and confirmed the dispo sition to look upon all men as brethren, and to regard with favor all measures which tend to unite them together in the unity of peace, and to promote the reform of ancient abuses, however venerable. “ If the labors of the editor in this broad field have availed anything, if in particular he has done aught to direct literary effort into the hitherto neglected department of commerce, to promote the study of it as a science, and to establish something worthy of the name of the literature of commerce, he will deem it a matter for rejoicing, but not boast ing. Our thanks for the past we need not repeat. Our promise for the future is best guaranteed by past performance, and on commencing the twentyfirst volume, and second decennium, the editor feels that, in the true cosmopolitan spirit towards all mankind, without mental reservation of any caste or creed, but with, perhaps, a little heightened emo tion towards the readers and patrons of the ‘Mer chants’ Magazine’, he can subscribe himself, “ With great regard, your friend, “FREEMAN HUNT.” thought and deliberation before any active steps were taken towards carrying it out. In casting the eye around in the difficult search after some useful, but unoccupied, corner in the wide field of litera ture, it seemed to the editor as if every point was already occupied, every branch represented, except one, and that the very important subject of com merce and the mercantile interest. On the one hand the professions, the divine, the lawyer, and the phy sician, the farmer also, and the mechanic, had each, one or more organs and exponents in the periodical press. Even the railroad interest, new as it then was, had found a voice through the press; while commerce, more or less connected with all other pur suits, was unrepresented. While the business con cerns of commerce filled the huge columns of the daily press with advertisements, and with shipping intelligence, and with matter relating to the every day details of merchandise, on the one hand, there was not a single magazine, of high or low preten sions, either in America or, to the best of our knowledge, in Europe, to represent and to advocate the claims of commerce. Those who have seen how much has been done within the last 10 years, who have profited by the learned labors of McCulloch and Macgregor, of Taylor, Tucker, Cary, Kettell, The April, 1858, issue of the “ Merchants’ Maga and Seaman, and have noted how rapidly the class zine” recorded the passing of Mr. Hunt in the fol of periodicals devoted more or less directly to mer lowing sentences: cantile subjects has increased, have but an inade “ The sad record of the death of Freeman Hunt quate idea how little had been previously done. finds fit place in the pages of the ‘Merchants’ There were one or two dictionaries of commerce, Magazine’, of which he was the projector, and the and a few works intended for practical purposes. sole editor and proprietor, from the first day of But a Literature of Commerce did not exist even in July, 1839, when the first number appeared, until name. The idea, and the thing itself, were yet to the second of March, 1858, when he died; to which, be developed. In 1839 the ‘Merchants’ Magazine during the best 20 years of his life, he gave all his and Commercial Review’ was established, without, business energies, his vigorous intellect, a compre we confess, so clear a conception, as after experi hensive view of his subject, marked tact and skill ence has furnished, of the full import of the term in selection and arrangement, and a large experi commerce, in its broadest, largest, and truest sense ence as publisher and editor, and which is therefore or signification. Every branch of industry, almost the truest and fairest memorial of what he was and every pursuit may be said to come within its range. what he did. But we are not writing his eulogy. The interest of agriculture and manufactures, which We shall early take occasion to pay that tribute to produce, are identified with the interests of com his worth which he always had ready for the excel merce, which distributes. The great topics of lence and eminence of others. banking and finance, of railroad and canal com “ Of the 225 numbers of the magazine, this is the munication, of mining, and of navigation by steam first that comes to the reader without having and sail, are all involved in the one great topic of received his personal supervision, although for commerce. A large part of the legislation of States many months, during his last illness, the chief edi and nations is devoted to the regulation of com torial duties were confided to friends, who have mercial operations. Courts of law and equity are contributed for years to the pages of the magazine, daily deciding points in mercantile jurisprudence, and who are entirely familiar with his editorial growing out of the constantly varying circum views and wishes. To many of our subscribers in stances of commercial enterprise. How liberalizing foreign lands this number may bring the first news and expanding are the pursuits of commerce, thus of our loss. There can be, therefore, no impropriety, understood, in their effect upon the mind is obvi now that he is gone, in saying that by all our read ous, and is often remarked. The wants and the ers his name will be mentioned, his loss regretted, necessities of all nations, of all races of men, form as that of one honorably identified with the litera elements in the calculations of the true merchant. ture of commerce; and both at home and abroad— He studies the condition and finds out the wants at Sydney and Hongkong, at Honolulu, Valparaiso, of all to relieve them. It is his interest, it becomes and Rio de Janeiro, as well as London, Vienna, also his pleasure to do so. He learns to look upon Paris, and Constantinople, and wherever else all nations as knit together by the ties of mutual ‘Hunt’s Merchants’ Magazine’ has regular subscrib dependence, to regard all men as kindred. The mer ers and readers, it will be acknowledged to have not cantile student learns the same lesson. To teach unfaithfully represented the trade of America and that lesson has been, and shall be, one of the great the world.” ONE HUNDRED — V olu m e 149 T h e C o m m e rc ia l & F in a n c ia l C h r o n ic le — YE A R S OLD 2805 P h ila d e lp h ia ’s La rg e s t a n d O ld e s t B a n k Congratulates The Commercial and Financial Chronicle The Philadelphia National Bank began business one hundred and thirty-six years ago, and enjoys the distinction of being one of the largest as well as one of the oldest banks in the country. To have survived the crises and changes of more than a century is an indication of sound management and efficient service consistently maintained. Age means something other than mere will to survive; greatness, more than an accumulation of figures. sound not because they are old. Institutions, like precepts, are They are old because they are sound. THE PHILADELPHIA NATIONAL BANK Organized 1803 PHILADELPHIA, PA. Capital, Surplus and Undivided Profits - - - - $41,000,000 Member of Federal Deposit Insurance Corporation O EH N R D N UDE 2806 — The Commercial & Financial Chronicle — YE R O D AS L Nov. 4, 1939 to him, that he was being praised beyond his desserts.” (< o n c l u d e d f r o m p a g e 2743) C The tribute from which this extract has been taken was published upon the occasion of Mr. Dana “ Three untoward influences have conspired to prevent our classmate Dana appearing here in a having completed his eightieth year. “ On Thursday of this week,” the tribute begins, “ Mr. William B. paper which would have done him justice. “ First, his modesty; we know how great that was Dana, founder, editor, publisher and owner of the when we were in college. But it has grown with ‘Chronicle,’ completed his eightieth year. His edi his years and his merits. He has been very reluc torial and office staff signalized the event by con veying to him an expression of their esteem, love tant to write anything of himself. “ In May, 1893, I made a personal call upon him and admiration, and by testifying their appreciation in his editorial sanctum, and he encouraged me to of his services to the community. The anniversary believe that he would comply with the desire of his was really a double one, for in the latter part of classmates as soon as he got through the rush of 1859 Mr. Dana began his career as publisher and business, consequent upon an extended tour for rest editor, so that he is now completing his fiftieth year in South California. But I had hardly left him in the publication business. Mr. Dana has always before he was taken severely ill, and for a consid been extremely averse to personal mention of any erable time was unable to attend to business of kind, but members of his staff felt that such an occa any kind. Then came on the long-to-be-remembered sion should not go unnoticed. “ In like manner those responsible for the conduct financial disturbance in 1893. And this brings me to say that Dana is our great financial high priest. of the paper during his absence feel that the readers “ He early devoted himself to journalism and of the ‘Chronicle’ and the general public should not made a study of finance. The result has been that be kept in ignorance of the event. They think that he has established the great financial paper of the for this once they are justified in disregarding Mr. country, ‘The Commercial & Financial Review,’ at Dana’s personal inclinations and desires. Besides, 102 William Street, New York City. A classmate when an editor and his journal have served the com has told me that millions of dollars are daily nego munity for such a long term, according to high tiated upon the authority of that paper. Business standards and ideals, the public has a certain claim men have come to look to it for wise and safe esti upon him which cannot altogether be ignored. Mr. mates of the business condition of the country and Dana conceived the ‘Chronicle’, developed it in con cautious judgment of what is to be expected in the sonance with broad and comprehensive ideas, and near or remote future. The truth about silver coin has made it a power and influence in the world.” In October of the following year (1910) Mr. Dana age, tariff reform, and sound banking is the great demand of the time. I suppose, therefore, that he died in the eighty-second year of his age. “ Through can be excused for not taking even an hour from his the “ Chronicle” , wrote Jacob Seibert Jr., his suc cessor as publisher and editor of “The Commercial over-burdened time to write his life. “ In private life Dana has made his home a shelter and Financial Chronicle” , up this occasion “ he (Mr. for those who needed it, and also could bring joy Dana) wielded power and influence to an extent into it. In his church relations he has been a de greater than that possessed by most of the men who voted lay worker, and multitudes could testify to have been prominent in the public eye. And this his power for good. In personal appearance he is influence has been continuously exerted through the very much what his brother, the Yale professor, was whole period of the existence of the paper, for the editorial policy has been conducted in accordance in our day. with such high ideals that the paper never at any “ He took the M.A. in course. “ I have pursued Dana for a picture till I was time lost the respect of the community. Men might differ with its views, but the honesty of its purpose almost ashamed of myself, but all in vain.” In view of this truthful and yet very human has never been questioned.” The files of the “ Chronicle” are at once his biog account of Mr. Dana in the flesh, his historian is to raphy and his monument. be excused for such relatively minor inaccuracies as that of referring to “ The Commercial & Financial Chronicle” as “ The Commercial and Financial Re view” ! The fact is, however, that, as the “ Chronicle” itself said editorially in its issue of Aug. 28, 1909, “ the history of the ‘Chronicle’ is the history of Mr. Dana’s life. The success which has attended the paper throughout its entire existence is evidence of his skill and ability. The dignity and high tone maintained in its conduct are indications of his character and of the lofty aims pursued. And the progress and development of the paper are marks of his genius. We think the reader will agree with this, even if Mr. Dana does not, and protests, as he An early railroad train such as this served to open the did when the ‘Chronicle’ staff presented the tribute great and fertile empire of the west. William B. Dana V olu m e 149 ONE HUNDRED— The Commercial & Financial YEAR S OLD 2807 ^Z^Z^Z^Z^Z^Z^Z^Z^Z^Z^Z^Z^Z^Z^ZTZ^Z^Z^Z^Z^Z^Z^Z^Z^Z^ZTZ^ O F U N D E D I N for 8 1 2 purpose o f insuring lives and 1 the , granting annuities, the original corporate title o f this Company has never been changed. In 1836 the C om m on wealth o f Pennsylvania granted a supplement to the Company’s charter permitting it to engage in the banking business and to extend its activities to the management o f trusts and estates. In 1 8 7 2 the initial purpose for which the Company was founded, that o f insurances on lives and granting annuities, was discontinued. Since then the Company has operated exclusively as a trust company, carrying on a general banking, trust and safe deposit business. M e r c h a n t s C o ffee H o u s e , So . Se c o n d St ., P h il a d e l p h ia B ir t h p l a c e o f T h e P e n n s y l v a n i a C o m p a n y THE PENNSYLVANIA COMPANY fo r Insurances on fives and (granting Annuities Philadelphia MEMBER FEDERAL MEMBER DEPOSIT INSURANCE FEDERAL RESERVE CORPORATION SY STEM RESOURCES MORE THAN $ 2 5 0 ,0 0 0 ,0 0 0 2808 ONE HUNDRED—The Commercial & Financial Chronicle— YE A R S The start of one of America’ s greatest industries. The first oil well to he drilled in the United States. It was in Titusville, Pennsylvania, in 1859. Jacob Seibert Jr. (■ o n c l u d e d f r o m , p a g e C 2743) Mr. Dana very early placed a large measure of re sponsibility upon him, leaving him, for instance, in entire charge of the editorial columns during his (Mr. Dana’s) tour of Europe in 1881, when Mr. Sei bert was only 24 years of age. During all this time, too, he directed a number of the paper’s important departments. He thus became as completely identi fied with the paper as was Mr. Dana himself. He imbibed Mr. Dana’s ideas and was, of course, at all times in harmony with his policies, and, indeed, was Mr. Dana’s chief instrument in carrying them out, becoming thoroughly ingrained with his pur poses and views. During the later years of Mr. Dana’s life the entire direction of the paper de volved upon Mr. Seibert. Upon the death of Mr. Dana in 1910 Mr. Seibert assumed undivided control of the company, owner ship of which he assumed within a short period of time. Because of his extraordinary vision, he fore saw the ultimate effect of current trends in eco nomic life. Through his editorial comments he was instrumental in focusing public attention upon mat ters having a vital, and many times harmful, influ ence upon world affairs. In numerous instances he stood momentarily alone in his convictions; he was not without his critics, but he was staunch in the attitude he took, and time and again brought to his way of thinking those who at first opposed him. Of the many who looked upon Mr. Seibert as an authority in his writings, it is of interest to record that Paul M. Warburg, in his voluminous book analyzing the Federal Reserve System, quoted ex tensively from the views expressed by Mr. Seibert in his many editorials on the Reserve Act. Numer ous, too, were the times when he was consulted by other financiers, eminent newspaper writers, and members of various congressional and other legis lative bodies. OLD Nov. 4, 1939 Trained from his youth in an office whose jour nalistic standards were high and exacting, Mr. Sei bert remained throughout his long career loyal to the traditions in which he had grown up, while at the same time devoting himself to the expansion of the scope of the paper and the increase of its usefulness as a record of events and an organ of opinion. Its field, as he saw it, was not limited to commerce and finance, but properly included all branches of industry, domestic and international politics, and such general matters as appealed to an intelligent public. At the same time he labored un ceasingly to maintain its standing as a full and authoritative record in the special fields of stock market and exchange transactions, banking and cur rency, railway and industrial finance, and the move ments of the cotton market. He lived to see the “ Chronicle” become in these directions, as in the domains of politics and current events generally, the most comprehensive weekly journal in the English language. By temperament and training Mr. Seibert was conservative, but his sympathy went out to such liberal ideas or movements as seemed to him to harmonize with sound economic and political prin ciples. He was an uncompromising defender of the gold standard, and opponent of high protective tar iffs and Government interference in business and industry, and a stern critic of the unbridled specu lation which precipitated the crisis of 1929. He was at all times an unremitting and vigorous defender of the traditionally American doctrine of avoiding foreign entanglements— a line of policy now much in need of the kind of support he was able to give it. His views on public policy sometimes brought him into sharp opposition to the political party in power or to some prominent agitation of the moment, but he buttressed his clear statements of what he re garded as the sounder policy with facts as well as logic, and refused to admit to his pages any attacks upon the motives or sincerity of those whom on principle he opposed. Mr. Seibert’s aversion to personal publicity led him to shun membership in associations or clubs, and although frequently sought as a speaker on pub lic occasions, he invariably declined. His personal acquaintance, on the other hand, was extraordi narily wide. For years a veritable stream of finan cial and business leaders, Government officials, pub lic men, foreign visitors and newspaper correspond ents came to the “ Chronicle” office, while a heavy correspondence from all over the world brought a welcome though largely unsolicited contribution of important information or requests for advice or edi torial support. Blessed with a remarkable knowl edge of financial and business questions and a for midable memory for details, his intellectual keen ness and clarity, instinctive sympathy and gracious courtesy made a lasting impression upon those who knew him. With his editorial, business and print ing staff his relations were simple, friendly and cor dial, and to all who were privileged to work with him his memory is a treasured possession. Upon his death in 1934 his mantle was donned by his two sons, Herbert D. Seibert, who is now Chair man of the Board and Editor, and William Dana Seibert, who is President and Treasurer, both of whom have been identified with the “ Chronicle” for a long period of years. Volume 149 ONE H U N D R E DT h e - Com m ercial & Financial Chronicle — YE A R S OLD -------------------------------------------- -------------------- The UnionT rust Company o f Pittsburgh OBSERVES ITS F IF T IE T H A N N I V E R S A R Y T h e U nion T r u s t Company o Pittsb u r g h f M E M B E R FE D E R A L D EPO SIT I N S U R A N C E C O R P O R A T I O N Statement at the Close o f Business, September jo, ipjp RESOURCES Cash on Hand and in B a n k s..........................$ 74,520,065.47 U. S. Government S e c u r i t i e s ..................... 143,548,725.86 Loans and I n v e s tm e n ts ............................... 142,547,510.54 O v e r d r a f t s .................................................... 153.17 Real Estate and V a u lt .................................... 3,900,000.00 Miscellaneous A s s e t s .................................... 1,449,221.67 Letters of Credit (Customers’ Liability) . 32,613.50 $365,998,290.21 LIABILITIES C a p ita l.................................................... S u r p l u s .............................................. $ 1,500,000.00 81,500,000.00 Undivided P r o f i t s ............................... 3,045,620.60 R e s e r v e s .............................................. 14,013,158.52 Due D ep o sito rs.................................... 265,816,386.43 Other L i a b i l i t i e s ............................... 90,511.16 Letters of C r e d i t ............................... 32,613.50 $365,998,290.21 D IR E C T O R S J . FREDERIC BYERS G E O R G E D. L O C K H A R T A R T H U R V . DAVIS J . E. M CHILDS FRICK W I L L I A M L. M E L L O N C H A R L E S A. R O W A N R O Y A. H U N T RI CH A R D K. M E L L O N W IL L IA M W ATSON SM ITH B E N J A M I N F. J O N E S , 3RD PAUL MELLON CLARANCE STANLEY ac C L O S K F . Y , JR. DAVID A. RE ED W I L L I A M C. R O BI N SO N L E W I S A. P A R K Fifty years ago a small group o f Pittsburghers formed The Union Transfer and Trust Company w ith a capital o f $ 2 5 0 , 0 0 0 . 0 0 . H ead in g the group as President was a shy and retiring man, Andrew W . Mellon . . .Today, the epochal growth o f The Union Trust Company o f Pittsburgh is forcefully told by the simple figures in the September 3 0 , 1 9 3 9 statement. 2809 B A N K IN G The history of industry and trade in this coun try during the past 100 years, technologically and managerially considered, is a story of almost in credible achievement, so vast and deep-going have been both the achievements and the improvement in the efficiency with which goods are created and dis tributed to the great rank and file of the people, and so indefatigable and so successful have been the engineers and other inventors in making practical application of the almost innumerable discoveries of science during the 100 years that have just elapsed. Mechanically, much the same is to be said of bank ing in this country during the same course of years. Banking facilities have multiplied until practically everyone now lives at no great distance from a bank which gladly accepts his funds for safe keeping and provides convenient means for him to use the funds so deposited in making payments far and near, and to such a bank any worthy borrower may apply for accommodation with assurance. Banking units have in size kept pace with the growth of individual enterprises, so that no half-billion dollar corpora tion, or for that matter no billion dollar enterprise, need fear being unable to find lending institutions large enough to meet its requirements. If this amazing development and perfection ol individual enterprises has not in the same degree been able to give assurance of evenness in the flow of goods from raw materials to consumer, but still falls short of preventing or even of mitigating the severity of what in recent years have become known as business cycles, that fact is doubtless partly due to the interference, often blundering even when de signed to be helpful, on the part of government, and partly a result of the fact that the business mechan ism has grown infinitely more complex as the years have passed until it is now in a degree perhaps never before known a machine so delicately attuned that relatively little is required to cause serious func tional difficulties, but it is likewise without ques tion also an outgrowth of the circumstance that we, no more than the rest of the world, have as yet come to a thorough understanding of the nature and proper functioning of banks, but, on the con- 1 8 3 9 -1 9 3 9 trary, in one way or another are still given to the practice of continually, sometimes unconsciously, sometimes deliberately, injecting an unstabling influence into the general situation by means of unwise banking policies and banking practices. Banking Ideas In 1839 Precisely what degree of progress we have made since 1839 in understanding credit and banking in their larger and more important aspects, it would be difficult if not impossible to determine. The country 100 years ago was not wanting individuals who revealed a clear insight into such matters, and who could say, as did a writer in one of the very early issues of the “ Merchants’ Magazine” , that “ banks should be confined to strict business paper. It is not our design to attempt to designate the greatest length of credit discounted paper ought to run. This will vary in different countries, and in different branches of business, according to circum stances. A general principle may be laid down, however, which will furnish the true test; and that is, not to discount paper on very long credit, got up for the purpose of supplying capital as the foundation for business. When business is done on credit, it should be furnished by private capitalists, and loaned in such a way as not to mix with the currency of the country. A paper currency, by furnishing facilities for business, will aid capitalists in making such loans to those friends in whom they confide; and in this way alone should banks furnish any such facilities. That system of making long loans out of the ordinary course of banking, to the direc tors themselves or their favorites, to speculate upon, should be entirely broken up. If the credit assets of a bank consist of short business paper, the bank has them under its control, and can at any time contract its business when occasion requires. There is, in principle, the same objection to long accommodation paper that there is to bills of credit issued by government with a view to furnish a per manent currency, or to a land bank upon Mr. Law’s scheme. The bank will not have its business suf ficiently under control. Individuals getting these long accommodations will be tempted to indulge in wild speculations, to the injury of the bank, and their own ruin. Without some such effective regu lation we are satisfied all other restrictions will prove abortive.” Today the country does not lack those who would follow Mr. Keynes’s (and John Law, although not admitting or possibly without even realizing it) and make extensive and continuous use of banking and credit to stimulate or to retard business as they in their wisdom think the circumstances sug gest. Nor are those who reason in this way with out influence as attest any a great number of state ments issued in recent years, both during and prior to the New Deal regime, by responsible public officials, some of whom are now charged with the responsibility of “ managing” our credit system, and for that matter by a good many others in positions Manufacturing and railroading were working in close of influence in the business and financial world. A cooperation when this lithograph of Frederick Jones hundred years ago we had intelligent observers who & Co.'s shoe factory, of Plymouth, Mass., was made in 1861. (<C o n t i n u e d o n p a g e 2812) Volume 149 ONE HUNDRED T h e — Com m ercial & Financial Chronicle — Y E A R S OLD The First National Bank o f Chicago Statement o f Condition October 2 , 1 9 3 9 ASSETS Cash and Due from B a n k s , ........................................ $444,959,555.05 United States O bligations— Direct and fully Guaranteed, Unpledged................................................ $298,899,740.44 Pledged—To Secure Public Deposits, • 30,914,111.28 To Secure Trust Deposits, • 33,801,551.80 Under Trust Act of Illinois, 550,000.00 364,165,403.52 Other Bonds and S e c u r i t i e s , ........................................ Loans and D i s c o u n t s ,....................................................... Real Estate (Bank B u i l d i n g ) , ........................................ Other Real E s t a t e , ....................................................... Federal Reserve Bank S t o c k , ........................................ Customers’ Liability A ccou n t o f A cceptances, . . Interest Earned, n ot C o l l e c t e d , ................................ Other Assets, ............................................................... 72,715,202.43 251,563,176.08 5,941,630.73 1,262,481.42 1,875,000.00 1,881.911.79 3,855,084.42 370,700.50 $1,148,590,145.94 LIABILITIES Capital S tock— C o m m o n ,......................................................$30,000,000.00 Surplus F u n d , ............................................................... 32,500,000.00 Other Undivided P r o f i t s , ............................................... 5,180,452.81 D iscount C ollected bu t n ot Earned, . . . . 650,527.99 2,350,482.15 Reserve for Taxes, e t c . , ............................................... Liability A ccou n t of A c c e p t a n c e s ,................................ 2,357,003.75 Time Deposits, ................................$178,462,479.38 Demand D e p o s i t s , ................................ 806,320,201.37 Deposits o f P ublic Funds, . . . 90,767,695.12 1,075,550,375.87 Liabilities other than those above stated, . . . 1,303.37 $1,148,590,145.94 MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION 2811 2812 ONE HUNDRED — T h e Com m ercial & Financial C hronicle — YE A R S OLD Nov. 4, 1939 Credit Abuse at All Times First Elevated Railroad. Charles T. Harvey, President of the first Elevated Railroad, the West Side and Yonkers Patented RR., which later became the Ninth Avenue Railroad, New York, demonstrating that a car would not fall off the track in 1868. Banking 1839-1939 (.Continued from page 2810) clearly saw that “the greatest abuses to which credit has been applied in this, and in almost every other country, have grown out of the confusion which has been generally made of the interests of the sovereign power with those of commerce,” as a writer in an early issue of “ Hunt’s” phrased it. This student, whose words are quite well worth noting 100 years later, further pointed out that “ the violation of private credit has, it is very true, been frequently made the instrument of injury to an industrial community— but against this the indi vidual citizen finds, in the sense of injury received, a sufficient warning ever after. The instances of extensive and permanent ruin from this cause are few, compared with those which have taken their origin from the connection of political passions with public credit. The Government of a country never can be, in the nature of things, a fit originator of all the credit which may be put in the place of coin in the community, for the reason that it ordinarily acts under a set of motives wholly different, and partially at war, with those which regulate the movements of commerce. The administration of public affairs embraces a very wide circle of duties, and is operated upon by almost every event of im portance in the world. An act of foreign aggres sion may in an instant throw it upon the verge of war, or a domestic disturbance may unhinge it from its place, and wholly obstruct its movement. The temptation in such cases is generally very strong to resort to credit for support. But credit is at the very same moment in the greatest danger. It is impossible to dictate to men what they shall think, or to persuade them that performance is most likely to follow promise, when the facts all tend to prove the direct opposite. When a government is most embarrassed is not the best time for resorting to new promises nor for redeeming old ones. Yet it is generally the one when it is itself most inclined to the first measure, whilst it is called upon by the public to adopt the last.” Today the doctrine that government should either itself issue or directly and completely control the credit needed at all times is probably as widely held as it ever was in our his tory, if not more so. Yet, of course, it is also true that individuals, and influential ones, have existed at all periods in our history who would have committed all or nearly all the credit crimes that man has ever devised, and of course today we have many among us who know sound banking when they see it, a considerable num ber of them engaged in sound banking so far as the tinkering of government permits such a course. Politically speaking, and as regards their influence upon the thinking of the rank and file of the people, they are, however, today far from in the ascend ency. During the past century thousands of vol umes have been written upon the nature of credit and upon the proper course to pursue in the man agement of it, and all the rest. Times have changed, and the application of tested principles is different from what it was in 1839. Theoretically and aca demically speaking, there has been some progress, and some retrogression, too, in the understanding of all these matters. There is also today vastly more information available upon which to base a sound credit analysis of most applicants. Whether we as a Nation haye made great progress during this period in the matter of understanding the role that banks should play in economic life, and in the application of such understanding, is a debatable one, to say the least. But with this much said with all candor, we may now turn to the brighter side of the picture. Nei ther the number of banks in operation nor their total deposits and circulation, even if these figures are reduced to per capita basis, give any accurate measure of bank accommodation available. The location of the institutions, the need for accommo dation, and various other factors enter the picture. It is nonetheless interesting to note the growth that has taken place in these amounts during the past century. In 1839 the editor of “ Hunt’s” obtained from the Secretary of the Treasury and published in one of the issues of the first volume of that magazine a summary statement of all the banks of the country. There were 663 of them. The follow ing tabie shows the more important items combined for all of them: C O M PAR AT IVE V IE W OF T H E C O N D IT IO N OF ALL T H E B A N K S N E A R TH E C O M M E N C E M E N T OF 1838 Capital paid in_______________________________________________ $317 636,778 Loans and discounts_________________________________________ 485 631,687 Stocks_____________________________________ . __________________ _ 33 908,604 Real estate___________________________________________________ 19 075,731 Other investments___________________________________________ 24 194,117 Due from other banks_______________________________________ 58 ,195,153 Notes of other banks on hand_______________________________ 24 ,964,257 Specie funds__________________________________________________ 904,006 Specie________________________________________________________ 35 ,184,112 Circulation___________________________________________________ 116 ,138,910 Deposits______________________________________________________ 84 ,691,184 Due other banks_____________________________________________ 61 015,692 Other liabilities______________________________________________ 59 995,679 Aggregate of bank accounts__________________________________ 1,321 535,910 Aggregate of investments supposed to yield income_________ 561 760,319 Excess of such investments above amount of capital paid in. . 243 ,180,261 Aggregate of deposits and circulation______ • ________________ 200 820,094 Aggregate of deposits, circulation and sums due to other banks 261 ,845,686 Aggregate of specie, specie funds, notes of other banks and sums due by other banks__________________________________ 119,247,428 Excess of immediate liabilities beyond immediate means____ 142,598,258 Total of means of all kinds___________________________________ 704,358,577 Total of liabilities, exclusive of those to stockholders________ 321,823,365 Total of liabilities of the banks to one another_______________ 144,175,002 Total of liabilities to all, except other banks and stockholders 260,825,773 Net circulation_______________________________________________ 91,174,653 The figures are almost certainly not complete by an appreciable margin, as the editor of “ Hunt’s” points out, since there were banks from which it was difficult if not impossible at that time to obtain reports, but the table affords a substantially accu rate picture of the order of magnitude of the bank ing system 100 years ago. (Continued on page 2814) Volume 149 ONE HUNDRED — T h e Com m ercial & Financial Chronicle — YE A R S OLD 2813 NINETY YEARS OF BANKING B E G IN N IN G M A R C H residing as far north as Grand Circus Park, lived “ out in the country” in 1849. That was the year the first plank road was built between Detroit and Pontiac, the first plate glass windows ap peared in a Detroit store, and Jefferson Avenue was laid with cobblestones to be come the city’ s first paved street. e t r o it e r s D But far more important than any o f these to the future business life of the city was the opening o f The Detroit Savings Fund Institute on March 5 ,1 8 49 . Later to become known as The Detroit Savings Bank and known since 1935 as The Detroit Bank, this institution has enjoyed the longest continu ous existence o f any bank chartered in Michigan. The founders o f The D etroit B ank—a group of prominent men headed by Elon Farnsworth, first Chancellor o f the State of Michigan—established a few principles of safe banking practice. T H E 5, 1849 This sound conservatism has always guided and dominated the bank’s policies. The bank has never engaged in other than bank ing activities. It has never had any ambition for mere size—has never consolidated with any other bank. Yet The Detroit Bank is now the forty-fourth largest among the nation’ s 14,650 commercial banks. It is one of the one hundred largest in the English-speaking world. Throughout its ninety year history, The Detroit Bank has been known as “ a commu nity institution.” Its progress has been inte gral with the development and success of the community in which it plays an important part. D uring The D etroit Bank’ s long history, the names o f individuals and busi ness concerns which have appeared on its books, figured prominently in the achieve ments which have made Detroit the nation’ s fourth city and one o f the world’s leading industrial centers. D E T R O I T B A N K M a in O ffice • G risw old at State • D etro it, M ich igan 2 9 Branch Offices Throughout the City M E M B E R O F F E D E R A L D E P O S IT IN SU R A N C E C O R P O R A T IO N M EM R ER FEDERAL RESERVE SYSTEM ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939 — 2814 — They were subject to few restrictions of importance in many instances, by failure either of law or of Below we append for comparative purposes a enforcement. One of their prime functions, if not roughly comparable set of figures set forth in the the prime function, was that of issuing circulating latest statement of the United States Comptroller notes which were poorly secured and at varying dis counts. The so-called Safety Fund plan of New of the Currency: York State had not proved particularly successful, P R E L IM IN A R Y STATE M E N T O F ’ ASSETS A N D L IA BILITIE S OF ALL BAN KS, D E C . 31, 1938 and the so-called system of “ free banking,” that is, T o ta l A l l B a n k s a system such as that now existing under which Number o f banks_______________________________________ 15.265 individuals, subject to a general banking statute, A s sets— Loans on real estate_____________________________________ $8,816,692,000 Other loans, including overdrafts_________________________ 12,718,714,000 might organize banks at will, was just getting under Total loans--------------------$21,535,406,000 way. Banking may be said to have been in a dis United States Government securities: tinctly chaotic state in this country at that time. Direct obligations__________________________________ ...$15,070,400,000 Guaranteed obligations_______________________________ 2,931,642,000 The, road by which we have traveled to reach Obligations o f States and political subdivisions (including warrants)--------------------------------------------------------------------- 3,810,494,000 the now existing banking system, as serious as are Other bonds, notes and debentures______________________ 5,076,094,000 Corporate stocks, including stock o f Federal Reservelbanks. 777,667,000 its defects, is a long, tortuous and punishing route. Total investments-------------------------------------------------------- $27,666,297,000 “ Experience . . . with the Second Bank of the Cash, balances with other banks, including reservelbalance_$l8,373,644,000 United States,” says H. Parker Willis in his “ The Bank premises owned, furniture and fixtures______________ 1,293,782,000 Real estate owned other than bank premises_____________ 1,185,750,000 ory and Practice of Central Banking,” “ as with that Investments and other assets indirectly representing bank M premises or other real estate___________________________ 160,359,000 Customers’ liability on acceptances______________________ 169,004,000 of the First Bank, had demonstrated to American Other assets-------------------------------------------------------------------449,357,000 observers the necessity of assuring the performance Total assets. $70,833,599,000 of, at least, certain of the basic central banking L ia b ilitie s — Deposits o f individuals, partnerships and corporations: duties. . . . Those whose utility, not to say Demand______________________________________________ $24,460,659,000 Time_________________________________________________ 24,731,208,000 necessity, may be considered to have been demon United States Government and postal savings deposits____ 969.804.000 Deposits o f States and political subdivisions_______________ 3.645.351.000 strated during the life of the First and Second Deposits o f banks_______________________________________ 7.479.886.000 Other deposits (certified and cashiers’ checks, & c.)________ 620.853.000 United States Banks may be enumerated as fol Total deposits. $61,907,761,000 lows : Bills payable, rediscounts and other liabilities for borrowed “ (1) The establishment of a supervisory control m oney-------------------------------------------------------------$36,612,000 Acceptances executed by or for account of reporting ba n k s.. 189,148,000 Other liabilities_________________________________________ 491,150,000 of banks in general for the purpose of subjecting Total liabilities----------------------------------------------------------- $62,624,671,000 them to the obligation of redemption, which meant C a p ita l A c c o u n ts — the obligation of liquidity. Capital notes and debentures____________________________ $162,856,000 Preferred stock______________________________________ 436 110 000 “ (2) The maintenance of an institution for the Common sto ck .-------------- ------------------------------------------------ 2,593,527^000 Surplus -------------- ----------------------- ----------- — ......... 3,648.631,000 oversight or control of public funds, whose object it Undivided profits________________________________________ 799,517,000 Reserves and retirement account for preferred stock and should be to keep such funds constantly convertible capital notes and debentures___________________________ 568,287,000 into cash upon demand, in order that the Govern Total capital accounts______ ____ ______________________$8,208,928,000 ment might at no time have to incur the risk of Total liabilities and capital accounts___________________ $70,833,599,000 It is unfortunately impossible to present con becoming a creditor of insolvent or incapacitated cisely any account of the comparative degree in State banks, and might, moreover, have at its com{ C o n t i n w e d o n p a g e 2816) which the institutions in existence at these two dates were distributed in relation to population, but it is a fact of common knowledge that at the earlier date banks were for the most part concentrated in the larger centers, and that a large proportion of J u T V ... *- -.. * : B x *' the people of the country had no practical access W/'1 H r *— a -A *~r ^ ” T" r/~ ~ ■ A ? I— ji i r to the banks at all. Today, despite the fact that failures from 1920 through the first two months of ClCAftlNC. l CUMi NC IP E IP PP IE 1933 left many small towns and rural areas with out banking facilities, the distribution of banking facilities throughout the country today, together with the immensely improved roads and wide own ership of automobiles, is such that there are rela tively few communities in the United States which are in any practical sense far removed from the facilities and the services that the modern bank offers. Banking 1839-1939 0C o n t i n u e d , fro m page 2812) Other Contrasts There are other contrasts equally as striking and equally as important. In 1839 there was no central banking mechanism of any kind in the country, and, of course, no system of National banks subject to uniform requirements or regulation. Jacksonian democracy had destroyed the second Bank of the United States some years before that date, and the National Banking System was not even legislatively projected until 1863. The banks of that day were State banks, largely specially chartered, owned sometimes privately, sometimes by the States, and sometimes partly by the States and by individuals. A c e n t r a l h e a t i n g s y s t e m f o r p u b l i c b u i ld in g s a n d h o m e s w a s i n v e n t e d in A m e r i c a . T h is is o n e o f t h e f i r s t — a h o t air f u r n a c e l o c a t e d in t h e c e lla r a n d s u p p l y i n g w a r m , f r e s h air t o a ll r o o m s in t h e h o u s e . Volume 149 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD — — 2815 Jim e-Savincf Directness Busy men appreciate the time-saving directness with which business is handled at The Commercial National of New York. It is easy to meet and to establish personal and confidential contact with the official personnel —and there is an established conviction that your business is always important business to us. COMMERCIAL NATIONAL BANK and TRUST COMPANY o f NEW YORK H6e Jiffy -six W all Street Member: Federal Deposit Insurance Corporation 2816 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939 — T/ie O M lS vin a utua a gsB nfi — VH ESDOKLYN SAVINGS BANK C TO & PIERREPONT STS. LIN N ESTABLISH ED 1827 ■ ■ {jitsp Britraiife: ■■ Banking 1839-1939 (C o n t i n u e d , fro m page 2814) mand an institution capable of performing the duties of a fiscal agency— especially since, before 1846, no institution corresponding to tlie SubTreasury system had been established. “ (3) The maintenance of stability and regularity in exchange costs as between different sections of the country; an attitude which meant the mainte nance of a national currency of uniform value free of the danger of local deprecation and irregularity. “ (4) The establishment of reasonable and fairly stable rates of discount and interest, with the pur pose of insuring something like similarity in the conditions of credit extension in the different parts of the United States. “ (5) The assurance of satisfactory conditions of clearance and transfer not only among the banks themselves, but also between the different States and regions into which the United States was divided.” Plain Lessons Although such lessons as these were unquestion ably to be read from the experience that the Amer ican people had had with the institutions in ques tion, and although these truths were evident at the time to uncommonly gifted men, including a num ber of writers in “ Hunt’s” and later in the “ Chron icle” , they certainly were not clear and convincing to the great rank and file, as Hr. Willis himself in effect, with his accustomed candor, plainly admits in later pages of this standard work. The truth of the matter was that the whole question was de :y - deviled with animosities that President Jackson and his followers had aroused, by a rampant spirit of localism which prevailed for decades after the period to which we refer, and by the illusion of creating wealth by means of bank notes, which John Jay Knox, in “A History of Banking in the United States,” says “ was the great heresy of the period between 1811 and 1861, as the creation of wealth by Government issues and fiat has been the chief financial heresy since that date.” Such ideas as these, at any rate, dominated the discussions of the period from 1839 to the Civil War, a period barren for the most part of construc tive achievement in banking except the slow im provement in the conditions under which banking was carried on in the different States under State laws. There was, however, this latter type of prog ress, and in important sections of the country im provement in actual conditions was quite substan tial. Referring to the period from 1811 to 1861, John Jay Knox adequately characterized the situa tion as follows: “ The early State banks of the Eastern States were organized and managed generally on sound business principles. There was real wealth and a thriving commerce which rendered them a necessity. Having something of a monopoly, their profits were large. But their success was warped into the service of those whose ideas were less sound, and was cited as proof that all that was necessary under the primi tive conditions existing in the newer settled States was a liberal issue of bank paper. In the lack of individual moneyed capital, banks were started based on capital created by the State, by the issue ( C o n tin u e d o n p a g e 2818) Volume 149 ONE HUNDRED -—The Commercial & Financial Chronicle— Y E A R S OLD 2817 1 EMIGRANT INDUSTRIAL SAVINGS BANK 5 East 42nd Street 51 Chambers Street More than 293,000 Depositors . Assets over $506,000,000 • OFFICERS | R B T L H G ET O ER . O U P resident FR C T. B G AN IS ER AN V ice-P resident JA E A. C U MS O LTER Assistant V ice-P resident W ILLIAM C R B TSO . O ER N Secretary-T reasurer JO N J. M O M K H cC R IC A ppraiser JO N J. H H AYD EN Assistant B ranch M ager an W ALTER H B N . EN ETT C hairm of the B an oard JA E A. FIN MS N V ice-P resident JO P H PR SE H . AETZ V ice-P resident G R E W HAG ERTY EO G . G Assistant V ice-P resident TH M J. R EY O AS AN C ptroller om LLO A. SM YD ITH R E eal state O fficer BOARD JOSEPH P. GRACE JAMES CLARKE ROBERT L. HOGUET E DW ARD P. M cM ANUS ROBERT J. CU D D IH Y W ALTE R H. BE N N E TT D A N IE L P. HIGGINS M S J. TIERNEY YLE Senior V ice-P resident D AVID J. G O E R DN V ice-P resident LIN O S. H SSIO C LN E N Assistant V ice-P resident JA E J. R O EY MS O N Auditor H W O ARD G G EG EO H AN Loan O fficer JO P R B E N SE H . R N AN Assistant B ranch M ager an OF T R U S T E E S P E TE R J. C A R E Y P A T R IC K E . CROW LEY M YLES J. T IE R N E Y BASIL HARRIS W ILLIA M P . HEIDE W ILLIA M V. GRIPFIN M ICH AEL A . M ORRISSEY CORNELIUS F. K ELLEY ROBERT F. LOREE THOM AS I. PARK INSON j a m e s f . M cD o n n e l l JOHN THOMAS SM ITH F R ED ER IC J. FULLER T h is b a n k is a mem her o f t h e F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n ------------------------------------------------------------------------------------- Lamson Br o s . & Go. Established 1874 This 65 year old firm is engaged solely in the commission business, exe cuting orders on all se curity and commodity ex changes. Statistical De partments are maintained for the convenience of customers. I n q u ir ie s The First Savings Bank in the State of New York In v ite d M M E S O LEAD G SECU E BR F IN RITY and CO M D M O ITY EXCH G AN ES 50 Broadway NEW YORK 141 West Jackson Blvd. CHICAGO 280 Fo u rth Avenue 1201 T h ird Avenue Cor. 22nd Street, New York Cor. 70th Street, New York 2818 ONE HUNDRED — The Commercial & Financial Chronicle — One of the greatest achievements in communication was the completion of the first transcontinental tele graph system in 1861 by Hiram Sibley, who for 17 years was the President of the Western Union Telegraph Co. Banking 1839-1939 0C o n t i n u e d f r o m page 2816) of bonds, or upon land, which was abundant and cheap. To start a bank and issue notes, with little or no regard for their redemption in cash, was so easy a way of acquiring the property of others that even honest men became sharpers, and dishonest men invented every conceivable method of mislead ing the public with, banking devices. The Legisla tures sought to control this tendency, but were fre quently led by crude ideas to make matters worse. Even the protective laws they did enact were hard to enforce. The idea that credit money, instead of being an instrument of wealth, was in very truth wealth itself, had taken a strong hold of the minds of the public, and legislators could not get over the notion that by chartering banks, with capital cre ated by the State, or permitting individuals to start banks on capital which was only capital by cour tesy, they were increasing the wealth of the public by the exact amount of the bank notes issued. The inevitable results followed, and the disasters of suc cessive financial crises gradually taught the public something of the dangers of uncontrolled banking issues. The older States, having had much experi ence in their colonial existence, were the first to learn how to control the management of banking capital. Among so many States and Territories there were always some where the laws were loose and ineffective, and there was room in those for the bank expert to exercise his dangerous knowledge of the credulity of the public and its desire of apparent gain.” Greenbacks Then came the Civil War and the chaos wrought by its legal tender note financing. It is one of those strange ironies of history, however, that the same financial difficulties of the Federal Government which were responsible for the legal tender notes probably made it politically possible to formulate and place upon the statute book the National Cur YE A R S OLD Nov. 4, 1939 rency Act (the title being later changed to the National Bank A ct), which in limited degree was destined, as later amended, to meet certain of the requirements of a truly national system of banking. Emphasis when the Act was originally adopted, as when the earlier amendments were added, was upon the currency aspect of banking, but gradually as time passed and as the use of checks on demand de posits grew in importance relative to the employ ment of actual currency and as wiser counsels pre vailed, the realization spread that what the country needed was not merely notes fully secured (albeit largely with bonds) but for sound and liquid bank ing. Then it was that increasing care was exer cised both in legislation and through more effective administration in the matter of the entire assets of National banks. In more recent years, as everyone knows, there has come a progressive relaxation in these matters that have to do with the portfolios of National banks, but even to this day there can be but little question that as a rule National banks are held to stricter accountability than are those institutions operating under State charters, al though, of course, it is also common knowledge that many of the State institutions, by reason of Federal Reserve membership, clearing house regulations, and above all the clear-headed and firm management of their officers and directors, are fully as sound and liquid in all particulars as any National bank. That the National Banking System, although affording a substantial gain, was still far from meeting the full requirements of the country was, indeed, at an early date fully realized and clearly stated by the more thoughtful student of financial affairs, as is indicated by the following editorial on the subject appearing in the Sept. 29, 1866, issue of the “ Chronicle” , under the title, “ Defects of Our Banking System” : “ It cannot be denied that our National Banking System has, up to this time, worked better, has kept the financial movements of the country more steady, and has done less harm and more good than was believed possible by that large class of persons who advocated its passage as the least of two evils. In all probability it has saved us from one of the most formidable dangers of an era of paper money— that, namely, of unlimited issues of the notes of ill-regu lated, irresponsible State banks. The mischievous privileges granted to these old institutions to issue currency were apparently too firmly rooted to be curtailed, and too profitable to be given up. The banking interest in most of the States was so pow erful as not to be made war upon with impunity. It did seem, therefore, as if we were doomed to have a currency defying all attempts to regulate its amount, and thus to control its value. Early in the history of our greenback system these difficulties were anxiously pondered, and the result was the elaboration of a banking scheme which provided for the absorption of the old banks, and the suppres sion of all currency-issuing privileges, except under the most strict conditions. It provides that the notes shall be secured by gold-bearing bonds to an amount equal to 10% more than their face value. These bonds are held in the Department at Wash ington, and are so endorsed that they cannot be stolen or misappropriated by any dishonest officer of the Government. Hence there is an ample pro(Continued on page 2820) V olu m e 149 ONE HUN DRED T h e — C o m m e rc ia l & F in a n c ia l C h r o n ic le E S T A B L IS H E D — YE A R S OLD 2819 184 8 EAST RIVER SAVINGS RANK CONVENIENT OFFICES MAIN OFFICE: 26 CORTLANDT STREET, NEW YORK 291 BROADWAY •60 SPRING STREET • 41 ROCKEFELLER PLAZA -743 AMSTERDAM AVENUE MEMBER FEDERAL DEPOSI T INSURANCE CORPORATION "N DRY DOCK SAVI NGS INSTITUTION Founded 1848 • Over 160,000 Depositors UPTOWN: 59th St. and Lexington Ave. * DOWNTOWN: 341 Bowery at 3rd St. ----------------------------------------------- “ fio ti M Lf T GRANDPA, DID YOU KNOW THAT Jf THE DRY DO CK IS OVER NINETY YEARS OLD? YES, SON * ^ If ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD 2820 — — THE IF D Q i (A x J T \ kD J\ Y O U w ill find in this strong institution launched 110 years ago a warm welcome to join our 136,000 Depositors ★ ★ ★ Nov. 4, 1939 W A L L STREET N E W YORK. C IT Y Y O U may do your banking by mail from any part of the W ’orld. Safe D eposit Boxes from $3.50. Deposits over $145,000,000. ★ ★ A f u n d i n th is h a n k i s a b etter r e li a n c e i n s ic k n e s s o r o ld a g e th a n th e g o o d w ill o f f r i e n d s Banking 1839-1939 ( C o n t in u e d f r o m p a g e 2818) vision for the ultimate payment of tlie note, should the bank fail which has issued it. For it is clear that broken-bank notes are sure to be eventually paid in full so long as the securities which will be sold for that purpose are worth as much as 90c. on the dollar. This method of securing a circulation of bank notes is infinitely to be preferred to the vicious plan, which obtained in some of the States, of allow ing a bank to issue notes to more than double the amount of its capital, and this, in some cases, with out exacting any adequate security. It is even bet ter than the plan adopted for the Bank of England, for beyond the aggregate of £16,000,000 sterling its notes are not represented by Government securities at all. Here, then, is one of the most excellent fea tures of our banking system. It controls and regu lates the currency, by making it certain of ultimate payment in full. “ But this is not enough. A note which is sure to be eventually paid is not fit to perform the func tions of money, except the holder can get full pay ment for its face anywhere, at any time, and in any commodities he needs in the market. He must be sure that it will be accepted freely in liquidation of his debts. Bank notes, to be perfect as an internal currency, must be kept at par in every village and hamlet over the whole country. Prior to the war we never had in this country a paper currency which was everywhere equal in value and negotiable with out discount. These advantages we first enjoyed when greenbacks were issued, and the people prized them so highly that they will never again consent to be without them. If the National banks are unable to give us such a currency, they will place themselves under the necessity of giving up their functions as banks of issue altogether. “But, we think, the National banks are able to keep all their notes at par. Experience shows us that if the notes are redeemable in New York, and are thus kept at par here, they will be at par every where else. But, on the other hand, if the notes are not redeemable here they will be sometimes at a discount, as, indeed, was the case a few weeks ago. At this point it is that we find the most important defect in our system. The existing law’ does not provide for compulsory metropolitan redemption here. Fortunately for the system a large propor tion of the banks do redeem here. But they are not obliged to do so. And as it is more profitable for a speculative bank in an obscure far-off locality not to redeem here, lest its notes should come back to it too freely, there is a very large number of banks that do not redeem here nor (wiiat is in effect the equivalent) in Philadelphia or Boston. As these institutions can keep out their notes longer than the redeeming banks, it is obvious that they obtain an unfair advantage—that our currency will have a tendency to become vitiated, by coming more and more from weak banks, and that the system naturally offers a premium to the non-redeeming institutions. Mr. Hooper, as is w^ell known, intro duced a bill into Congress last session, which was intended to remedy this fault, and in spite of the opposition with W ’hich it has met it will no doubt 0 Continued on page 2822) Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD -— — C'r SSSS/SSSSSSS//S/SS/SSSS///SS/S/S/SSS///S/S/Sf//S/SS//SSSfSS/S/jr /SSSSS/S////SJSSSSJr S/j'////////S//SS/S/S//////fSSSS//SSfS/S/J, /SSS//SjrSSj' fSir S S S I nvestment Advisory F A C IL IT IE S service T h is Deposit Accounts Subject to Check Time Deposits Foreign Exchange Commercial Loans and Discounts Commercial Letters of Credit Travelers Letters of Credit BANK, for many years, has ren Investment Advisory Service dered Investment Advisory Service Care and Servicing of Securities Orders for Purchase and Sale of Securities Executed on Commission Transfer Agent and Registrar Financial Agents on a fee basis to individual in vestors, trustees and institutions. W e w ill gladly send a copy of a booklet which describes this service. BROWN BROTHERS HARRIMAN & CO. 59 W ALL STREET, N E W Y O R K P R IV A T E B A N K E R S BANKING O BUSINESS ESTABLISHED 1818 Licensed as Private Bankers under Article I V o f the Banking Law o f the State o f N ew York. Subject to Pennsylvania Department o f Banking Code. rS/Sjr SSSZjr Sir/jr SjV/S/Sj'S/SSSSZSSf/tVSS/SS//>r S S / S //Sf/SS//S/SS/SS/SS/SSSS/ZS//S//SSSSSSSfSSSSS/S/S/SSS///f//SSSSSS////f/S/Z/S/SSZfS////f/////Zj ^GREENWICH SAVINGS BANK Established 106 years ago for the purpose of encouraging thrift and the habit of saving. TWO OFFICES Broadway at 36th Street • Sixth Ave. at 16th Street N E W Y O R K , N . Y. 2821 2822 ONE HUNDRED — T h e Com m ercial & Financial C hronicle — Banking 1839-1939 (C o n tin u e d f r o m p a g e 2820) be passed next session. We find tlie following very judicious remarks on the subject in yesterday’s issue of a morning journal: ‘It is denied that the Western banks object to any system of par redemption for their notes, “they only object to being compelled to redeem in New York.” This is a distinction without a difference. Of course each bank stands ready to redeem its notes when offered at its coun ter; but neither that nor an arrangement for redemption in any Western city can make the notes at par throughout the country; and this fact is as well known in Chicago as it is in New York. The talk in this connection about “paying tribute” to this city is perfectly ridiculous; interior banks which do not redeem at par here are exacting tribute of New York, and this, too, when the privileges connected with their circulation will afford ample compensation with out the levy of such a tax. There can be no system of par redemption, unless it secures the holders of the notes against their depreciation at the financial center. To ob ject, therefore, to a par redemption at New York is to object to any system of par redemption, for no other arrangement will answer this purpose. If the issues in question were disbursed in legitimate business at the points where the several banks were located, and simply followed the law of financial gravitation to New York, there would be a sufficient reason why they should be redeemed here at par on their arrival by the banks which had received all the beneiit of the circulation. The notes could then be taken home and again set afloat to renew their course. But it is still more the duty of the banks to provide against a possible redundancy of their issues when the notes are brought in whole packages and paid out here, and unless provided for at par are liable at once to become a charge upon this community. In urging the establishment of such a system we are consulting as much the well-being of all sound banks, wherever located, as any local interest. Un less this is done there can be no healthful circulation of the national currency; and this principle, if not soon accepted, will vindicate itself ere long in the unavoidable experience of those most concerned.’ “ As yet we have been regarding the banks as being simply banks of issue. But they are also banks of deposit and discount. They are the reser voirs of capital. To them our people lend their dis engaged funds, and from them they borrow in time of need. It is easy to see how important it is that institutions which thus deal in credit should be placed ever under the scrutiny of the public. Such disgraceful failures as the Pennsylvania banks, or the Merchants’ Bank at Washington, ought to be [ i Y E A R S OLD Nov. 4, 1939 made impossible. Our system should be so arranged that an unsound bank should not be able to get the confidence of the people. If a bank depart from the rules of legitimate business, if it endanger its own stability and the security of funds entrusted to its care, if it fails to maintain a due proportion between its liabilities and its available reserve, if it engages in speculation in stocks or produce—the public ought to have the means of discovering the fact. And as one of the means of informing the people, sworn statements of the bank’s affairs should be published at very frequent intervals. Publicity is a safeguard against many of the evils of unsound banking, because it affords a means of quickly detecting them. The official examiner of the Bank Department has lately gone through the books of several of the banks of this city. But the fact has been enshrouded with a very unnecessary mystery, as if it were some Government secret. Such official reports should be published, so far at least that the people may form their own judgment as to which are the soundest institutions and which are less worthy of trust. This question of increased publicity we would suggest to Mr. Hooper as emi nently worthy of attention in the new law which he is to report early next session. Necessary Reserves “ Keference was made just now to the necessity for ample reserves. The provision of the present National Currency Act requires every bank to keep a reserve of cash on hand equal in amount to 25% of the aggregate of its circulation and deposits. A more sound and conservative arrangement it is im possible to contrive, and to its enforcement is in part due the stability and elastic promptitude with which our banking system has been able to respond to the emergency, whenever a panic or severe pressure has convulsed and thrown into temporary confusion the monetary relations of the country. Another circumstance which has contributed to this stability is the virtual union of the banks into one organized, complex whole. This union, however, has its dangers, and being of so intimate and vital a nature, it imposes the obligation on every sound bank to discourage the unsound ones, and to favor (C o n tin u e d o n p a g e 2824) O n e o f t h e v e r y f i r s t f l i g h t s o f t h e W r i g h t b r o t h e r s in a s o r t o f g lo r i r i e d b o x k i t e , d e s t i n e d t o r e v o l u t i o n i z e t r a n s p o r t a t i o n a n d b r id g e t h e o c e a n s w it h a s t r e a k o f s p e e d , is w i t n e s s e d h e r e b y a n a d v e n t u r o u s e a r l y a u to m o b ile c r e w . Volume 149 ONE HUNDRED —The Commercial & Financial Chronicle Y E A R S OLD — 2823 ^Ttnrtnnnrtnnrtnrairsinnnnrtrtnnnnrtnnnnnrtnnsinnnnrtrtnnr^^ Second N ational T he Bank of Boston FOUNDED 1832 111[FRANKLIN ST. and HOTEL STATLER BLDG. BOSTON Capital $2,000,000 Undivided Profits $767,711.87 Surplus $4,000,000 OFFICERS THOM AS P . BEAL, P r e s id e n t R . M . DeCORM IS, V i c e - P r e s i d e n t ROBERT B A LD W IN , V i c e - P r e s i d e n t M E RT O N E . OBER, V i c e - P r e s i d e n t H E R B E R T E . STONE, V i c e - P r e s i d e n t R A YM O N D C. D E X T E R , HAROLD A. C AH ALIN , V i c e -P r e s i d e n t a n d C a s h ie r ALFR E D S. W OODW O RTH, A s s t , V ic e -P r e s id e n t F R E D E R IC K W . B U RN H AM , H A R R Y H . BRIGGS, A s s i s t a n t C a s h i e r LESLIE N . ROW E, A s s i s t a n t C a s h i e r FR AN K W . B R Y A N T , A s s i s t a n t C a s h i e r L. E. STOVER, A s s t . C a s h i e r a n d M a n a g e r V ic e -P r e s id e n t H E N R Y L . PEARCE, A s s t . C a s h i e r a n d A u d i t o r B E R TR A N D R . SYM ONDS, A s s i s t a n t C a s h i e r JAMES R . D E N N IN G , A s s i s t a n t C a s h i e r H E R B E R T H. P Y N E , A s s i s t a n t A u d i t o r F o reig n D e p t. F R E D E R IC K R . H A M ILTO N , B. C. JONES, A sst. A s s t . V ic e -P r e s id e n t A s s is ta n t A u d ito r JOHN A. B A R R Y , T r u s t O f f i c e r CLARENCE B . HIGGINS, A s s t . C a s h i e r a n d A s s t . T r u s t O f f i c e r JAMES A . STEVENSON, A s s i s t a n t T r u s t O f f i c e r H. CLIFFORD BOSHAN, A s s t . T r u s t O f f i c e r N A TH A N IEL R . CUTLE R , A s s t . T r u s t O ffic e r T r u s t O ffic e r DIRECTORS THOMAS P. BEAL, P r e s id e n t J. W H ITN E Y BOW EN, General Cotton Corp., President & Treasurer A N DREW M ARSH ALL, Hutchins & Wheeler A RTH U R B. NEW H ALL, Talon, Inc., Vice-President E D W A R D H. OSGOOD, Massachusetts Hospital Life Ins. C o., Pres. & Treas. FRED ER IC P A R K E R . Hanson & Parker ELW Y N G. PRESTON, S. S. Pierce C o., Treasurer ROBERT PROCTOR, Choate, Hall & Stewart R IC H A R D SALTONSTALL, State Street Investment Corporation, Vice-President E. K E N T SWIFT, Whitin Machine Works, President and Treasurer JOHN F. TIN SLE Y , Crompton & Knowles Loom Works, President GEORGE H. B U R N E TT, Joseph Burnett C o., Treasurer W . H. CLAFLIN , Jr., Harvard College, Treasurer CHARLES A. COOLIDGE, Ropes, Gray, Boyden & Perkins R . M . DeCORM IS, V i c e - P r e s i d e n t R A YM O N D EM ERSON, J. M . Forbes & Co. H a r v e y p . h o o d , 2nd, H. P. Hood & Sons, Inc., President W IL L IA M E . JONES, Hallowell, Jones & Donald JOHN S. LAW R E N C E , Trustee M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N o o o o o o g-O-Q-g.o a a a aJLPJLQ.o.Q.gJta-A-g.a_g.a O-gJLflJLa a s c s ju u m f i f l 0 g 0 0 Pppp9 g 0 Q 0 Q O 0 o o o o o o o o o nffffff ONE OF THE OLDEST BANKS IN THE UNITED STATES . ESTABLISHED 1823 THE M E C H A N IC S NA TIO NAL BANK OF PROVIDENCE 34 Dorrance Street, . . . PROVIDENCE, R. I. OFFERING MODERN BANKING SERVICE WITH OLD TIME COURTESY LOANS . C O L L E C T IO N S . D IS C O U N T S C e r tific a te s o f D e p o s it C h e c k in g A c c o u n ts . F o r eig n E x c h a n g e . S a v in g s A c c o u n t s ONE HUNDRED—The 2824 C o m m ercia l & Financial Chronicle—YE A R S OLD N ov. 4, 1939 Banking 1839-1939 ( C o n tin u e d f r o m CITIZENS SAVING BANK P R O V ID E N C E , R H O D E IS L A N D Founded 1871 C harles A. P ost President E d w in O. C hase Vice President W illiam A. H a t h a w a y Vice President Treasurer R oger W . C ooke C harles H . Jackson Assistant Treasurer P hillips R. W e at h er b ee Assistant Treasurer L ero y B. L undblad Assistant Treasurer Statistician L ouis E . G r o v e r , Jr . W EBSTER a n d ATLAS N A TIO N A L BA N K OF BOSTON 199 W A S H IN G T O N STREET, BOSTON, MASS. E s t a b l i s h e d 1833 ★ This bank— conducted in a broadly conservative manner for over a cen tury— offers every advantage in service and every consideration consistent with sound banking. A banking connection with us should be of mutual advantage and satis faction. ★ # R aym on d B . Cox, E d w a rd M o tle y , President Vice-President H a r r is o n G . R e y n o l d s , F rank B . B u tts, Vice-President Cashier ★ M ember F ederal D eposit I nsurance C orporation page 2822) every arrangement which, like the redemption of the notes, or the enforcement of ample reserves, tends to give strength and stability to the whole organized system.” The history of American banking from 1863 for ward for several decades, at least so far as public policy and legislation were concerned, is a history of a futile effort to make an inadequate system of banking plus the so-called sub-treasury system work satisfactorily. During these years individual banks rose to positions of great strength and position. Banking facilities multiplied, and in general bank ing practice was gradually brought to a higher standard more or less throughout the Nation. In deed, the achievements of these careful, conserva tive yet vigorous institutions are seen in retrospect to be remarkable. Yet recurring panics and other financial disturbances traceable to a want of coor dination and elasticity in the banking system kept the public, or at least the more thoughtful elements in it, reminded of the shortcomings of the American banking system as a whole. Prejudice and resulting political considerations, however, resulted in a stub born refusal to look the facts in the face, and a persistent effort somehow to obtain the advantages of a sound central banking system without estab lishing such a system. National Monetary Commission The panic of 1893, 30 years after the passage of the original National Currency Act, precipitated once more this whole question of currency and bank ing, but confusion of counsel was the dominant characteristic of attempts made the following year to legislate on the subject. The old greenbacks, the Treasury notes of 1890, and the silver question, which had by that time pushed itself violently to the center of the political stage, seemed to render any constructive action out of the question. It remained for the panic of 1907 to bring the matter definitely to a head, and in the following year to place upon the statute book the so-called AldrichVreeland Act. This Act, however, was directed rather narrowly at the currency difficulties that had been encountered, and gave no general satisfac tion, or at least was not regarded as having gone to the root of a situation which could not longer be tolerated. Accordingly the National Monetary Commission was appointed almost at once to study the entire subject and to recommend a program of rectification. This Commission spent three years in investigation of a most extended and thorough sort, and finally in 1912 submitted a plan to Con gress. No action was taken, however, at that ses sion of Congress, and in the fall of 1912 the Demo cratic party, under the leadership of Woodrow W il son, was successful in placing itself in control at Washington. One of its first undertakings was banking legis lation, later to be known as the Federal Reserve Act. The history of this measure and its general content are well known to the readers of the “ Chron icle” , and hardly need exposition here. Suffice it to say that concessions had to be made to the more radical elements in the Democratic party, and the law as it reached the statute book contained flaws which the original sponsors probably felt as reluc0C o n t i n u e d on page 2826) Volume 149 ONE HUNDRED The — Commercial & Financial Chronicle— YE A R S OLD 2825 ROBERT GARRETT & SONS Established 1840 Investment Bankers BALTIMORE, - - - MARYLAND IN THE Nation’s Capital A proper banking connection in Washington can be much more than a convenience to you and your customers . . . Our location, our facilities and our 100 years of emphasis on serv ice are important advantages to our clients. TH E RIGGS NATIO NAL BANK of W A SH IN G TO N , D. C. E stablished 1836 Resources over $100,000,000 M E M B E R FED E RA L DEPOSIT INSURANCE CORPORATION One Hundred and Six Years of Savings Hank Service SUFFOLK SAVINGS BANK FOR SEAMEN AND OTHERS Incorporated, 1883 B oston, Massachusetts O F F IC E R S BOARD P r e s id e n t O F IN V E S T M E N T T h e r o n A . A p o llo n io T h e r o n A . A p o llo n io E x e c u tiv e V ic e -P r e s id e n t H e rb e rt M . S ears T h om a s W . Sym ons T rea su rer A rth u r B. B rook s R oger F. H ooper J o h n P. C h ase K e n n e t h L . Isa a cs L e o F . D a le y F ir s t V ic e -P r e s id e n t H en ry B. Saw yer A rth u r O . Yeam es A s s is ta n t T rea su rers Sh erm an H . P ep p a rd D a n ie l J . S a v a g e R o b e rt N . S p o ffo r d Assets Over $60,000,000 ONE HUNDRED— The Commercial & Financial Chronicle—YEARS OLD 2826 Adoption of the horseless carriage by the fashionable set helped to encourage the development of the great industry into which the automobile business has grown. Here is George Gould and his sons at Saratoga inspecting and perhaps later riding in their car of 1903. Banking 1839-1939 (iC o n c lu d e d , fro m page 2824) tant to accept as many other careful students of banking. Precisely how the system would have operated had the World War not come before it had had opportunity to demonstrate its nature will never be known. The fact is that war influences from the very first (even before we became in volved) began to make themselves felt, and after our entry into the war and at intervals ever since alterations in the Act, almost invariably to its detriment, have been frequent. The system without question, even in its original form, was open to serious abuse of an inflationary sort, and advantage was quickly taken of that fact. Politics, moreover, from the first played havoc with any chance it might otherwise have had to function as originally intended— so much so that Senator Carter Glass has on numerous occasions complained that the sys tem had been converted into a sort of “ door-mat for the Treasury,” the more so as a result of the pressure upon the Treasury for funds with which to conduct the war once we were engaged in that struggle. What is even more important, and what must in the long run prove even more devastating to stabil ity and soundness in our banking and credit system, is the fact that it afforded the New Deal amateurs now in control of national affairs with the nucleus of an almost perfect system for their manipulation of currency, credit, and banking. So intensively have they cultivated their opportunities that at the end of the century that has expired since 1839 we find ourselves not only with a bond-secured cur rency, but with bond-secured deposits and a system of banks, including the Federal Reserve institutions, whose assets consist primarily of bond holdings. Those now in charge of national affairs have, more over, revived in essence all the old fallacies of 100 years or more ago about the creation of wealth by the issue of currency, or what is the equivalent, the enlarging of bank deposits, and have added a body of fine-spun, superficially plausible, but wholly un sound theorizing to the cruder variety existing in the earlier period. In this sense we end the century no better off, to say the least, than we began it. To make the matter worse, we have record-breaking stocks of gold on hand, in part due to past tinkering with the theoretical gold value of the dollar and in part to circumstances over which we have no con N ov. 4, 1939 trol. This hoard of the yellow metal, to say nothing of the accompanying mountain of silver, presents a real problem which would tax the abilities of our best financial statesmen. The Reserve System has, however, succeeded ad mirably in establishing a national clearing and col lection system without which the banks of the coun try would find it difficult to get along. It is this system, indeed, which on more than one occasion has prevented withdrawals from the Reserve System on the part of ably managed institutions which otherwise would prefer to operate outside of any such system as now exists. We have a uniform cur rency and, so to speak, a uniform demand deposit system; that is to say, the funds of one part of the country can be transferred to any other part with a minimum of delay and expense. We have likewise in the Federal Deposit Insurance Corporation a sys tem of partial deposit insurance reminiscent of the discredited Safety Fund system in New York State a century or more ago. The century has brought substantial gains in banking as regards certain matters, and it evidently has left us much where we stood in the beginning in others. We as a people still face the task of gaining a working grasp of the principles of sound banking, and a resolute will to abide by them. Such an understanding and such a will once existed in rather remarkable degree in England, yet, as strange as it may seem, the ultra-modern urge to make use of credit for essentially alien purposes seems to have reached this country from certain of the English credit theorists. Despite the meanderings of the past 100 years, and notwithstanding the fearful way that we have gone astray during the past two decades, particularly during the past six or eight years, we shall some day work out our salvation in banking and apply it, but the task re mains for the future. The Birth and Development of an\Idea ( C o n clu d e d o n p a g e 2738) commerce. A large part of the legislation of States and nations is devoted to the regulation of com mercial operations. Courts of law and equity are daily deciding points in mercantile jurisprudence, growing out of the constantly varying circumstances of commercial enterprise. How liberalizing and ex panding are the pursuits of commerce, thus under stood, in their effect upon the mind, is obvious and often remarked. The wants and necessities of all nations, of all races of men, form elements in the calculations of the true merchant. He studies the condition and finds out the wants of all, to relieve them. It is his interest, it becomes also his pleas ure to do so. He learns to look upon all nations as knit together by the tie of mutual dependence, to regard all men as kindred. The mercantile stu dent learns the same lesson. To teach that lesson has been and shall be one of the greatest purposes of the ‘Merchants’ Magazine’. “ The editor regards it as not the least of the happy results of the labors and studies to which his taste and his duty have led him in conducting this maga zine, that they have strengthened and confirmed the disposition to look upon all men as brethren, to regard with favor all measures which tend to unite them together in the unity of peace, and to promote the reforms of ancient abuses, however venerable.” Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD — — Close Contact with the Majority of Michigan’s Important Industries ☆ NATIONAL BANK OF DETROIT DETROIT, MICHIGAN MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION DIRECTORS T h i s b t a k e s t i o n a m o d e r b a a n e s s o n n k i • k ALEX D O W President, Detroit Edison Company • u n d e r v e r y f u n c c ia t e d w i t h c o m m e r c i a l n g . GEORGE R . FINK President, National Steel Corporation m EDSEL B. FORD President, Ford M o to r Company • S H E R W IN A . HILL Hill, Hamblen, Essery £sf Lewis • CHARLES A. K A N T E R Senior Vice President, Manufacturers National Bank • CLIFFORD B. L O N G L E Y Bodman, Longley, Bogle, Middleton and Farley • M U R R A Y W . SALES President, M urray W . Sales £sf Company • H E N R Y H. SANGER President, Manufacturers National Bank • W ESSON SEYBURN Manufacturer TH E M A N U FA C T U R ER S N A T IO N A L B A N K OF D ETR O IT M em ber Federal Deposit Insurance Corporation 2827 ONE HUNDRED—The Commercial & Financial Chronicle YEARS OLD 2828 — N ov. 4, 1939 CONDENSED STATEMENT FIRST NATIONAL BANK IN SAINT LOUIS At the Close of Business, October 2, 1939. RESOURCES Loans and Discounts United States Government Securities Other Securities guaranteed by U. S. Government Other Bonds and Stocks Stock in Federal Reserve Bank Banking House, Improvements, Furniture and Fixtures Other Real Estate Owned - - - Customers’ Liability a/c Letters of Credit, Acceptances, Accrued Interest Receivable - - - Overdrafts - - - - - Other Resources - - - - Cash and Due from Banks - - - - 61,249,199.96 53,418,751.08 29,663,310.12 8,883,416.95 411,000.00 580,518.88 - 1,780,482.39 etc 586,365.10 - 686,444.99 - 17,256.19 - 6,552.75 - - 125,728,724.65 - - $283,012,023.06 LIABILITIES Capital— Common $ 10,200,000.00 Surplus and Profits 8,903,846.38 Dividend Declared Payable November 30, 1939 240,000.00 Reserve Unallocated 1,000,000.00 Reserve for Taxes, Interest, etc. 574,803.03 Unearned Discount - 217,055.71 Liability a/c Letters of Credit, Acceptances, etc. 596,329.92 Other Liabilities 6,226.72 Individual Deposits $129,358,465.45 Savings Deposits - - - 32,964,944.56 Bank Deposits 97,483,297.50 City of St. Louis and Other Public Funds 1,467,053.79 ................................ 261,273,761.30 Total Deposits $283,012,023.06 M em b er F ed era l D ep o sit In s u r a n c e C o rp o ra tio n A Century of Achievement 0C o n t i n u e d fro m page 2788) lected with great care concerning the movement of the crop. “Later, cablegrams from Europe regarding stocks, visible supply, &c., were added as a further charac teristic. So much time and labor was bestowed upon these reports of weather and crop movements and so much assiduity displayed in the gathering of the statistics, every bale of cotton being traced from point of production to its final destination, that the ‘Chronicle’ immediately became an author ity concerning cotton all over the world. And this distinction it has not lost up to the present day. The system of reports then inaugurated and the It was Pascal B. Smith who in 1827 discovered the formula for making marine varnishes. This discovery, which grew into an enormous industry, was made in an old apple orchard on the former Stuyvesant farm, on the East River, New York, near what is now Sixth Street methods of tracing the movement of the crop furn ished the foundation for the later work of other investigators in the same field. The weekly com pilation of the visible supply of cotton of the world for a long time remained the only thing of its kind. And Mr. Dana’s interest in this part of the paper never flagged. Up to the time of his death he in sisted on personally passing upon the text of the annual ‘Cotton Crop Report’ and the annual ‘Cotton Acreage Report’, and until the later years of his life contributed a considerable portion of the text matter himself. The task of compiling the statis tics passed into the hands of a trained specialist a long time ago, but the form of the ‘Crop Report’ as originally devised by Mr. Dana has never been changed, though certain new features have been added from time to time to make it more compre hensive and to add to its value. “Mr. Dana had some journalistic experience be fore he undertook the publication of the ‘Chron icle’. As was related in our issue of Aug. 28, 1909— at the time of the eightieth anniversary of his birth— Mr. Dana, after having practiced law in Utica, the place of his birth, from 1853 to 1859, came to New York in the latter year and the next year purchased ‘Hunt’s Merchants’ Magazine’, a monthly periodical whose existence dated back to 1839. This monthly had a high standing. Mr. Dana made a number of improvements in it and continued to publish it up to January, 1871, when it was merged in the ‘Chronicle’. It should also be said that in connection with the ‘Chronicle’ there was likewise started a ‘Daily Bulletin’ ‘issued every morning (C o n t i n u e d , on pa ge -83C) Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD — — FROM ONE OLD-TIMER TO ANOTHER To "The Commercial and Financial Chronicle,” upon its centennial, this bank, now in its 88th year, extends congratulations. Bankers to Western Business Since 1852 Wells Fargo Bank UnionTrust Co. & H e l p in g SAN F R A N C I S C O y o u to BUILD BUSINESS You aim to please your customers because you recognize their good will as a major factor in the growth of your bank. When they have business in Tennessee, THIRD NATIONAL’S co-operation will help you to give them the kind of service they like. Nashville’s Fastest Growing Bank T hird National Bank IN NASHVILLE—N a sh ville, Tennessee MEMBER FEDERAL RESERVE SYSTEM Member Federal Deposit Insurance Corporation 2829 2830 £ # 1 ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD — A Century of Achievement (< o n tin u e d , C fro m page 2828) with all the commercial and financial news of the previous day up to the hour of publication.’ For a while, therefore, Mr. Dana had a weekly, a monthly and a daily on his hands. The daily was not large, being only a little larger than circular size. And yet, after he disposed of his interest in it, it devel oped into an important daily paper, the ‘Commer cial Bulletin’, which many years later absorbed the ‘Journal of Commerce’, and today is the powerful ‘Journal of Commerce and Commercial Bulletin’. “ In establishing the ‘Chronicle’ Mr. Dana en gaged in pioneer work as far as the United States was concerned, there being no other journal of the same class to use as a guide. But in Europe the ‘London Economist’ had existed for many years and had attained important distinction. That publica tion he took as his model for form. No outside par ties have ever had any interest in the paper. Mr. Dana always held dominant control. From 1865 up to 1894 the paper was published by the firm of William B. Dana & Co., the ‘company’ being John G. Floyd, his wife’s brother. The two men were well fitted to supplement each other’s gifts, though Mr. Floyd was lacking in the sanguine temperament which is a prime requisite of success in a country of such boundless opportunities as the United States. Mr. Floyd looked after the business end and after the railroad news department. In 1894 Mr. Floyd determined to retire, and Mr. Dana purchased his interest. The business was then incorporated in the name of the William B. Dana Co., and Mr. Dana admitted to part control some near relatives and the writer. “ In his tribute to Mr. Dana in the issue of the ‘Chronicle’ of Oct. 15, 1910, written at the time of Mr. Dana’s death, the writer took occasion to lay emphasis upon Mr. Dana’s complete identification with the paper and also dwelt upon the part played by the paper in influencing public opinion and pro moting sound views. Since the close of the Civil War, as was there said, there have been three great movements threatening the national welfare which this paper has opposed with all its energy. Its aid was first rendered in combating greenbackism; a lit tle later came the free silver fallacy, and more re cently have come the attacks upon wealth, upon the rights of property, upon the railroads, and upon cor porations generally. This is a young country, and its experience is in accord with its youth. For that reason error flourishes here more readily than in the civilized countries of the Old World. — Nov. 4, 1939 “ In looking back now at the introductory article in the first issue of the paper, one is struck by the fact that the problems then confronting the coun try, in the prevalence of economic error and the ex ploiting of pernicious doctrines, were much like those which our people are contending at the pres ent time. For instance, special emphasis was then laid upon the necessity of ‘wise legislation’, and the statement was made that ‘at no time in our history has the knowledge and diffusion of commercial truths, and the advocacy of well-defined principles which govern the economy of wealth, been so needed as now’. That was half a century ago. We have overcome the dangers which then threatened, and there can be no doubt that we will in like manner overcome the dangers of the same type that are be setting us at the present time, particularly dema gogic legislation, in which the last Congress was so fruitful, and which, if persisted in, must under mine the foundations of business. The ‘Chronicle’ will do its part towards insuring such a result, for it is the expectation that his paper will prove as enduring as time itself.” Further Expansion As a matter of fact, the “ Chronicle” , under the sole direction of Mr. Seibert after the death of Mr. Dana in 1910, had by 1915 added very substantially to the volume of material carried designed to make it a newspaper as well as a vehicle of editorial ex pression and a recorder of markets, and the like. In January, 1918, this type of material was gath ered together and given the status of a department or section of the paper carrying the title “'Current Events and Discussions” , which it still carries. Meanwhile the volume of current data, both statis tical and other, reflecting the current state of busi ness in practically all branches of American indus try, had grown so great that in January, 1923, another department or section was introduced, and into it assembled the current reports of this nature. It was given the title “ Indications of Business A c tivity” , which it still carries. We are confident that our readers will agree that the usefulness of the regular weekly issues of the “ Chronicle” have been immeasurably enhanced by these additions. The issue of June 26, 1915, contained 112 pages; the weekly issues now average over 160 pages, and not infrequently run substantially larger than that, so greatly has it been found necessary to enlarge the scope of the contents of its pages to serve the public adequately these recent years. In 1934 cer(C o n t i n u e d , on page 2831) ^ A f t e r m a n y d i s c o u r a g e m e n t s , G e o r g e P u llm a n s u c c e e d e d in c o n s t r u c t i n g h is f i r s t s l e e p i n g c a r in 1 8 5 9 . tL T h is v e h i c l e , s h o w n a b o v e , r e v o l u t i o n i z e d r a ilw a y t r a n s p o r t a t i o n , m a d e a f o r t u n e f o r M r . P u ll m a n , a n d s o o t h e d t h e n e r v e s o f m a n y t h o u s a n d tr a v e le r s . Volume 149 ONE HUNDRED — T h e Com m ercial & Financial C hronicle — Y E A R S OLD 2831 United States Trust Company of New York 45 Wall Street, New York C h a r t e r e d 1953 Condensed Statement as of September 3 0 , 1939 RESOURCES Cash in Banks_____________________________ $ 59,301,363.23 Loans__________ 23,193,778.27 Bills Purchased____________________________ 6,936,700.00 United States Treasury Notes, due 1939 to 1944 16,517,750.00 United States Treasury Bonds, due 1941 to 1947 9,525,000.00 Other Bonds_______________________________ 9,129,000.00 840,000.00 Stock in Federal Reserve Bank______________ Bonds and Mortgages______________________ 5,865,923.94 Real Estate________________________________ 2,000,000.00 Accrued Interest Receivable________________ 344,417.34 LIABILITIES Capital____ _______________________________ $ 2,000,000.00 Surplus___________________________________ 26,000,000.00 Undivided Profits__________________________ 2,812,919.23 $133,653,932.78 $133,653,932.78 Deposits___________________________________ Interest Accrued on Deposits_______________ Reserved for Taxes and Expenses____________ Unearned Discount________________________ Dividend Payable October 2, 1939___________ $ 30,812,919.23 101,498,186.83 315,532.06 718,669.99 8,624.67 300,000.00 United States Government and other securities carried at $355,000 are pledged to secure public deposits and for other purposes required bylaw. TRUSTEES W I L L I A M M. K I N G S L E Y , W ILLIA M SO N PELL, President Chairm an JOHN SLOANE F R A N K L. P O L K J O H N P. W I L S O N BARKLIE H ENRY G EO RG E de FOREST LORD J O H N J. P H E L P S A R T H U R C U RTISS JAMES C O R N E L I U S N. B L I S S VINCENT A ST O R M E M B E R F E D E R A L D E P O SIT IN SU R A N C E Bangor Hat Trade The Bangor “ Whig” says there is an estab lishment in Bangor which manufactures 1,800 tarpaulin hats of excellent quality a month, and employs in the business about 40 persons, many of them females, who are enabled to maintain their children com fortably and give them the benefit of a good education. HUNT’S MERCHANTS’ MAGAZINE, September, 1843 A Century of Achievement (< o n c l u d e d f r o m C page 2830) tain rearrangements of materials was inaugurated in the belief that the convenience of the reader would be served by such a change, and a table of contents added for the same purpose. The supple ments have in several instances since 1915 been re titled and, as occasion required, rearranged. They now have the status of separate publications. Otherwise they remain much as they were in 1915. We now come to the end of the first 100 years. “ The past is secure, as far as the ‘Chronicle’ is con cerned,” to quote Mr. Seibert in 1915. “ The future . . . has been provided for, as far as lies within the power of human agency, but is neverthe less in the making. A half century hence a new generation will in any event have appeared on the scene, and will have to account for its acts. No effort will be spared to make the retrospect at the end of the second half century as satisfying as is that which is now being contemplated at the end of the first half century.” R O L A N D L. R E D M O N D HAM ILTON HADLEY F R A N C I S T . P. P L I M P T O N BENJAMIN S T R O N G C O R P O R A T IO N Transportation of Milk on the Erie RR. The following statement of the revenues ensuing from the transportation of the sin gle article of milk, for the four years ending Dec. 31, 1845, is derived from the books of the New York and Erie Railroad Company: 1812 $3,430.72 1843 $18,497.46 1844 $28,055.08 1845 $30,694.20 HUNT’S MERCHANTS’ MAGAZINE, August, 1846 We need only add that neither will effort be spared, so far as those now living can assure it, to make the retrospect at the end of the second century as satisfying as human effort can make it. O n e o f t h e g r e a t f o r c e s in s h o r t e n i n g tim e a n d d is t a n c e o f c o m m u n i c a t i o n w a s t h e s u c c e s s f u l la y in g o f t h e A t l a n t i c C a b le b y C y r u s F ie ld . T h is s h o w s t h e la n d in g o f t h e c a b l e a t H e a r F s C o n t e n t B a y , N e w l F o u n d la n d . .... T h e F in a n cia l S itu ation HE long-drawn-out debate over the so-called Congress whether or not it would prefer to avoid com neutrality bill is over. When these lines reach mitments during an election year, and there are many the reader a new enactment touching this bedeviled others which ought to receive careful study and con question will either already be upon the statute book structive action. If the situation is allowed to drift or about to be entered there, and members of Con along as it has been doing of late, whatever Congress gress on their way home or ready to start on that does next year is likely to be haphazard and impulsive, journey. The new measure is, of course, not pre rather than carefully planned, and more than one cisely what the public supposes it to be, if the rank issue more or less certain to be avoided entirely. and file have gained their impressions of it from the Now for Reduced Expenditures! headlines. It has been repeatedly referred to as a One of the first things that needs to be done is to bill to repeal the arms embargo provisions of the law let Washington know in no as it stood when the Presi uncertain tones that a dent called the special ses “Little Pieces of Ideologies” sharp reduction in expend sion of Congress into being It is this importation of European ideolo itures is expected with several weeks ago, but the gies that ought to concern us even more than out further delay or eva the current European war. They fly over the fact of the matter is that, ocean with every gust of propagandistic wind. sion. .The turn of events although this was one of First it was Marxian Socialism; then it was since mid-summer, partic the purposes of the meas Stalinist Communism; then it was Mussolini’s Fascism; and now it is Hitler’s Nazism. And ularly since early Septem ure, there are other provi that is not all. There are all sorts of frac ber, presents an excellent sions of a most sweeping tional ideas— little pieces of ideologies; tiny microbes that break off from the poisoned opportunity for making a variety, whose effect in masses.— Howard Coonley, President of the real beginning in paring actual operation will not National Association of Manufacturers, to the Chamber of Commerce of the State of New be fully known pending outlays. Slack business, York. unemployment andthe con considerable experience The greatest danger lies in “little pieces of sequent neediness, real or ideologies,” which, when taken in the aggre with them. Even any ad gate, constitute the American variants of the imagined, of large groups vance appraisal of their re “ ideologies” which, when given their Euro in the population have for sults must await a careful pean names or when recognized by Americans for what they really are, gain foothold with years on end been the stock study of the texts of the difficulty on our shores. excuse for profligacy at the various provisions embod We, or many of us, have a habit of saying that Europe is years ahead of us in this or National Capital. Business ied in the measure as that “social welfare movement,” or in the de is now no longer slack. The finally adopted and signed velopment of policies or mechanisms for re stricting or managing private enterprise, as if Federal Reserve index of in by the President. Many the mere fact that Europe has long ago dustrial production for Sep of its terms are evidently adopted such procedures places that conti tember stood at 110, or nent “ahead” of us. extremely drastic, particu Many of us do not stop to realize that these seven points above August, larly as regards American “movements” are frequently but part and par when it had already regis shipping, going far beyond cel of these very “ideologies” , socialistic, com munistic, fascistic or nazistic, that we profess tered substantial gains. anything that the ordinary so much to detest and to fear, or else they are The upturn apparently rules of international law “ little pieces” of these “ideologies” which have broken off from the poisoned masses in continued in October. “ In require of us. It remains countries devoted to these ideologies and to be seen whether the pro many industries,” says so have become rooted in other European coun tries which profess, as do we, to distrust in careful and qualified an tection it affords us, if any, the “ideologies” from which they spring. observer as the National will be worth the price that Thus we have a New Deal Administration must be paid for its en City Bank, “ November which is as susceptible to these “ tiny microbes that break off from the poisoned masses” in output will exceed October forcement. Europe or anywhere else as children are to and the seasonal slackening It is a good thing, how the measles, solemnly at work denouncing and even spending substantial sums of money toward the end of the year ever, that the protracted combating groups or organizations of foreign debate is no longer absorb will be less than usual. ers alleged to be at work in this country try ing to convert us directly into adherents of ing the whole attention of This points to a level of in “ ideologies” to which the New Deal is in dustrial production higher the people so far as na debted for many of its programs. It is important that we, as a people, come to tional governmental affairs than the peak of 1936-37, realize where the real danger lies in all this. and possibly equal to the are concerned. So long as this issue was monopolizing high of 1929, which was the spotlight it was impossible, apparently, to persuade 125 in June, according to the Federal Reserve index the public to give thought to numerous subjects con (1923-25 equal 100).” cerning which there ought to be Congressional action Although certain industries, notably steel, have when the regular session gets under way after the moved ahead faster than others, the upward move first of the year. We now have approximately two ment of business activity is really quite general. The months to prepare for next winter’s session of Con facts of the situation are admirably brought together gress, and, as any thoughtful observer of experience in terse form in the current issue of the November well knows, unless such preparation is carefully and monthly bank letter of the National City Bank of vigorously made during that period of time, it will New York, appearing within the past few days. prove difficult if not impossible to obtain any sys “ New railway equipment orders have reached the tematic and constructive endeavor from Congress highest levels since 1936, at least. It seems likely next year. There are a number of questions, such, that total freight cars ordered in 1939 will be around for example, as the annual budget with all its many 65,000, most of the orders having been placed since ramifications, which must receive the attention of Sept. 1. Tron Age’ estimates orders for rails at T Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD — — 2833 “ Th a t loan w ill put my business on a better basis” L ife is B E T T E R because o f banks The services and the resources of banks have helped to make possible America’s rise from humble beginnings. They have helped in the development of industry, helped to produce goods at less cost, helped to make life more enjoyable. than could be done without the loan, are activities which create more jobs. better for the family Bank loans have permitted many families to m od ernize homes, making long wanted improvements or needed repairs. They are assisting men and women to meet medical expenses, educational costs, and better for business men emergencies o f all kinds. Customers o f this Bank are continually using loans to operate their businesses more profitably. better for citizens generally Loans permit them to take advantage o f cash dis Through supplying credit to municipalities, states counts, to modernize equipment, to turn over capital and the nation, this Bank has always had a part in more often. the growth and development o f our country. better for employees for your betterment Loans advanced by this Bank are making jobs Perhaps this Bank can help you in some o f the because the credit extended enables a business to ways outlined above, or through other services. You expand its operations. Buying more raw materials, are invited to talk things over at any one o f its con replenishing stocks o f goods, handling larger orders venient offices. B a n k of the M a n h a t t a n C o m p a n y Catee 19 hr r d 79 The Bank o f Yesterday, Today and Tomorrow Member Federal Deposit Insurance Corporation ONE HUNDRED— The Commercial & Financial Chronicle— YEARS OLD 2834 B R O O K L Y N TRUST COMPANY MAIN OFFICE: 177 M ontague Street B rooklyn , N. Y . (§( 0 7 / M z) NEW Y O R K OFFICE: 26 Broad Street New Y ork * Y- Summary of Statement at Close of Business— September 30,1939 R E SO U R C E S Cash on Hand and Due from Federal Reserve Bank and Other Banks .$46,626,336.48 U. S. Government Securities . . . 43,277,688.01 State and Municipal Bonds . . . 5,086,099.79 Other S e c u r i t i e s ................................. 7,927,736.88 Call Loans and Bankers’ Acceptances 7,258,936.02 Demand Loans Secured by Collateral 7,073,968.66 $117,250,765.84 Time Loans Secured by C o l l a t e r a l ............................ Bills P u r c h a s e d ............................................................ Loans on Bonds and M o r t g a g e s ................................. Bank B u i l d i n g s ............................................................ Other Real E state............................................................ Customers’ Liability on A c c e p t a n c e s ...................... Other R e s o u r c e s ............................................................ 3,169,826.43 10,735,942.26 2,570,088.86 5,386,076.20 923,715.78 8,534.12 659,996.57 $140,704,946.06 L IA B IL IT IE S C a p i t a l ............................................................................. S u r p l u s ............................................................................. Undivided P r o fit s ............................................................ Reserves ............................................................................. D e p o sits............................................................................. Outstanding A c c e p t a n c e s ............................................ Other Liabilities, Reserve for Taxes, E tc...................... $8,200,000.00 4,350,000.00 1,384,979.46 973,551.10 125,387,420.61 8,534.12 400,460.77 $140,704,946.06 As required by law, IT. S. Government and State and Municipal Bonds carried at $6,162,900.94 are pledged to secure Public Deposits and for other purposes. One of the Oldest Trust Companies in the Lnited States M EM BER FED ERAL RESE RV E SY STEM A N D F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N Nov. 4, 1939 approximately a million tons, and total purchases of railway steel to be shipped before next spring at the equivalent of 2,400,000 tons of ingo ts.,, Turning to some of the other branches of industry, the bank says that “ mill consumption of cotton in October possibly has reached 700,000 bales, which is close to the biggest month on record. Many woolen mills are at capacity on spring fabrics, with heavy orders on hand. Automobile output has been held back by the Chrysler strike, but even without one of the three largest producers the industry has been turning out 75.000 or more cars a week, all quickly taken by dealers whose re tail sales are encouragingly greater than in the model introduction period a year ago. An increase to 100.000 a week or higher is expected when the strike ends. Paper and glass manufacturers have stepped up production. Mining operations have expanded not only in coal but in the non-ferrous metals, re sponding to unfilled orders, al though current sales have slack ened. “ Retail trade improved in the latter part of September, and has held its gains in October. Depart ment store dollar sales are within 3% of the 1937 peak, according to The Adventurous Spirit ofjAmerican Commerce A late number of the London “ Daily News” graphically portrays the adventurous spirit of our American commerce, after this manner: “ We own to a cordial admiration of the spirit of American commerce, in its adventurous aspect. To watch it is to witness some of the finest romance of our time. No idea can be formed of our own older, quieter, more traditional way of setting to work. It was an American who first thought of carrying ice to India. Instead of going out in ballast, as was often done then, with dollars to buy some oriental cargo to exchange from place to place, coming home with something very rich indeed, he took out a cargo of ice from a familiar Massachusetts pond. A fourth of the cargo melted while the people in Calcutta were learn ing what it meant, and the rest sold for six cents the pound. The next time plenty of buyers were on the lookout; scarcely any ice had time to melt, and the price was nearly doubled; since which time it has been a good speculation to send ice 12,000 miles, and thrust saltpetre out of the market. It was an American who first saw the beauty of Manila hemp, though it was not unknown to us. He carried home a few bales, and in ten years the importation rose to 20,000 bales. The Americans were on excellent terms with the Chinese long before we could make anything of them. In Salem— well named the City of Peace from its civilizing commerce— the highest order of mercantile spirit is found— a spirit which reminds the traveler of old Venice and the Hanse towns. The particular dignity coveted at Salem is membership in its museum; and to be a member it is requisite to have doubled both Capes and to have brought something remarkable from far lands. There a young man’s education finishes with his being sent, not to his travels, but his voyage; and a father, uncle or friend makes him supercargo of a good freight and sends him to China, or Borneo, or Madagascar. Henceforth, it will probably be to Japan, or to shake hands with the Chinese in the plains of Tibet, or with European travelers at Timbuctoo, for the New England merchants are penetrating to the very heart of Africa, to handle the cotton and sell their goods. It is an every day matter for a Salem merchant to tell his wife that they may as well go around the world, as he has a ship ready; and then the older children are sent to school, and the infants and their parents sail^away, trafficking from land to land, in another hemisphere, and returning with a little fortune, sunburnt faces and a batch of curiosities for the museum. We hail such doings in any nation whatever, and in the American case this is evidently their true field of conquest. If we would only emulate them as far as suits our different circumstances— making railways in India, and raising cotton there, and wherever in our dominions it will grow— there would soon (as we may talk of inci dents in national life being soon— be an end of charge and recrimination; and offense and subtlety about Cuba’s and ‘ Uncle Tom’s Cabin,’ and fishery and boundary questions would be found easy of settlement between the two most commercial nations upon earth.” HUNT’S MERCHANTS’ MAGAZINE— December, 1854 Volume 149 ONE HUNDRED — YEARS OLD The Commercial & Financial Chronicle — 2835 I n te r e s t e x e m p t f r o m a ll p r e s e n t F e d e r a l I n c o m e T a x a tio n $3,686,020 City of New Orleans, Louisiana 23 A% a n d 3 lA% R e f u n d i n g P a v in g C e rtifica te s to be issued for refunding purposes, in the opinion of counsel will con stitute valid and legally binding obligations of the City of New Orleans, payable as to both principal and interest from paving assessments heretofore levied on property specially benefited in the City of New Orleans. In addition, for the payment of principal and interest of the Certificates, the City has power and is obligated to levy ad valorem taxes upon all the taxable property therein within the limits prescribed by law. These Certificates, $2,336,020 2 % % Series B due January 1, 1951 Redeemable in whole or in part by lot from time to time, at the option o f the City, on any interest payment date upon thirty days prior published notice at par and accrued interest. Price 100.50 and accrued interest $1,350,000 3V4% Series A due $ 150,000 annuallyjuly 1, 1940-1948 (The Series A Certificates have been sold) These certificates are offered when, as and i f issued and received by us and subject to approval o f legality by M essrs. Thomson W ood & H offm an whose opinion will be fu rn ish ed upon delivery. , HALSEY,STUART&CO. INC. THE HIBERNIA NATIONAL BANK , PHELPS, FENN A CO. WHITNEY NATIONAL BANK OF NEW ORLEANS IN N E W O R L E A N S STONE & WEBSTER AND BLODGET SCHARFF & JONES, INC. , NEW ORLEANS INCORPORATED E. H. ROLLINS &SONS PAINE, WEBBER & CO. . KIDDER, PEABODY & CO. WHITE, DUNBAR & CO., INC. , NEW ORLEANS HEMPHILL, NOYES & CO. . JOHN NUVEEN & CO. C H IC A G O INCORPORATED NUSLOCH, BAUDEAN & SMITH BARROW, LEARY A CO. NEW ORLEANS SHREVEPORT LAMAR, KINGSTON &LABOUISSE BROWN,CORRIGAN &CO. NEW O RLEANS WEIL &.COMPANY, INC. NEW ORLEANS FIRSTOF MICHIGAN CORPORATION NEW ORLEANS KOHLMEYER, NEWBURGER &CO. F. L. DABNEY&CO. BOSTON NEW ORLEANS FRED J. McCORMAC & CO. NEW ORLEANS BLAIR & CO., INC. LEVY & ROONEY, INC. , NEW ORLEANS WELLS-DICKEY COMPANY M IN N E A PO LIS JAC. P. DUCOURNAU NEW ORLEANS Dated July 1. 1939. Principal and semi-annual interest. January 1 and July 1. payable in New York City or New Orleans. Louisiana. CouponCertificates in the denomination of $1000 except one certificate in the denomination of $1020. The information contained herein has been carefully compiled from sources considered reliable, and while not guaranteed as to completeness or accuracy, we believe it to be correct as of this date November 4 ,1 9 3 9 . the Federal Reserve Board’s sea sonally adjusted index, and as prices are lower the movement of merchandise must be considered satisfactory. Moreover, mail order houses and merchandise chains have done better than department stores. The evidence is that dis tribution is running closer to pro duction than in 1936-37, and that large distributors have made their commitments more conservatively than at that time. “ Many of the capital goods in dustries have had a strong pick-up, with orders for railway and utility equipment the largest since the 1936-37 period, at least. Machine tool orders placed during Septem ber are reported the largest on record, though publication of the official figures has been suspended. Shipbuilding and airplane manu facturing are at capacity and appar ently will continue so for the dura tion of the war. All capital goods lines have improved export business or inquiries. “ Building contract awards in September were the highest since April, and 7.4% above the same month last year. Total awards dropped somewhat in the first two weeks of October; but private con tracts continued to rise. Mortgages accepted for insurance by the FHA have continued high, and in the week ended Oct. 21 were the largest recorded with one exception. This is the best indication that private building is not entering a slump.” P u b lic I n te r e s t E s s e n tia l Our government relief system be ing what it is, and the nature and habits of government generally be ing what they are, it would perhaps be asking too much to expect out lays whose excuse has been the severity of depression to show any very marked reduction during the month or two in which this record of improvement has been made. It is, however, certainly reasonable to expect and to demand that they show such a decline henceforth and to continue to fall as long as business remains as good as it is now. Indeed, no one influ ence could be more effective in en suring a continuation of good busi ness than a convincing showing of determination in Washington to set our fiscal house in order. Of course the budget for the year ending June 30, 1941, which must within about 60 days be presented to Congress, should reflect this marked improve ment in business, in planned ex penditures as well as in expected receipts. It will not do so, how ever, if the public does not bestir 2836 ONE HUNDRED — The Commercial & Financial Chronicle — YEARS OLD Nov. 4, 1939 itself in behalf of greater prudence in the employment of taxpayers’ money. Next year is an election year, and for most politicians the line of least resistance otherwise will be that of voting funds liberally in order to curry favor. There are likewise a number of other questions, some of them in separably linked with public ex penditures and others largely unre lated, to which the improvement in business lends added urgency. The lasting quality of the recovery that has taken place in business in re cent weeks is much in doubt in a good many minds. It is generally conceded that so much momentum has been acquired that at least rela tively satisfactory activity is more or less a certainty for a month or two, at least, but after the turn of the year, so a good many reason, the situation may develop a differ ent turn. Needless to say there is probably not a man or a woman in his or her right senses between the Atlantic and the Pacific who does not desire to see the upward move ment continue and develop into a sound and lasting recovery. The question is how such an end can best be ensured. It has already been remaked that nothing could be more helpful in giving this assur ance than setting our fiscal house in order, while larger employment op portunities are present and expand ing. We now add that no other measure or program could be more helpful than convincing evidence of a determination on the part of the prople that their representatives in Washington shall unshackle indus try and trade, and that nothing could be more certain to shorten the life of the recovery that has devel oped than the addition of further restrictions, additional meddling with business on the part of gov ernment, or what might be termed another offensive movement on the part of the New Deal which seems to promise successful con summation. A n E x c e lle n t R e c o r d The record of business manage ment during the past month or two of temptation is such that, with proper defense, it should be rather invulnerable to attack of the usual New Deal sort, but there is the war excuse for more regimentation, which must not only be combated but revealed for what it really is— a sound and urgent reason for a sharp reversal of policy in Washington. Faced six weeks ago with almost panicky buying of various com- Volume 149 ONE HUNDRED—The Commercial & Financial Chronicle— YEARS OLD 2837 KIDDER, PEABODY & CO. Government and Municipal Bonds Investment Securities Corporate Financing Foreign Exchange T r a v e lle r s , L etters o f C r e d it issued jointly with B a r i n g B r o t h e r s & C o ., L t d . of NEW YORK L ondon BOSTON PHILADELPHIA Members of the N ew York and Boston Stock Exchanges modities by everyone from the housewife to the speculator, prices first rose rapidly and then settled down sanely. Manufacturers almost with one accord not only counseled moderation in pricing finished goods but practiced what they preached. The result is that, except for certain commodities where prices were deeply depressed, most goods can today be purchased for little if any more than last summer, and in a number of notable cases prices of finished goods have been reduced in the face of rising costs of materials and the distinct possibility if not the fact of rising labor expense. Equally important is the fact that, despite activity quite comparable to that of the peak of the 1936-37 boom, we have heard very little of the “ bottle-necks” which plagued us two or three years ago. Every assurance has thus been given the consumer that ample supplies of goods either exist or will be pro duced as rapidly as needed, barring, of course, very large foreign buying in this country by the warring Powers of Europe. Labor has in some instances given indications of restlessness and unwillingness to “ do its part,” but for this business can scarcely be held responsible. Indications are, none the less, not wanting that the powers that be in Washington are suffering from the same old itch to meddle and that they are convinced that the so-called war emergency offers an opportunity even if the conduct of the business community does not. The Attorney General’s office seems to have come to the belief that the anti-trust laws were de signed to give it a sort of left-handed control over prices— a control to be exercised chiefly by badgering en terprises in any branch of industry where prices do not conform to the ideas of the Administration. The Tem porary N ational Economic Committee seems to feel itself in duty bound to act about the same role. The extraordinary powers now held by the President and the various officials and organizations under his direction render it quite a simple matter for the Adminis tration to make of itself a thorn in the flesh of business in a thousand different ways— many of them ex tra-legal if not illegal. Giving all this a more serious aspect is the fact that activities of this sort as often as not are in reality directed at building up public sentiment to support additional legislation of a most undesirable kind. The coun try faces an urgent need not only of combating all this administrative meddling with business and any program for laying the basis for more of it by legislation next year, but of taking the offensive, as it were, in ridding ourselves as soon as possible of those unwise meas ures of this general description which have found their way to the statute book during the past halfdozen years. The so-called neu trality bill is now out of the way for the time being, at least. Let us not permit European distractions, or war orders, if they materialize in substantial amounts, to prevent a thorough-going study of our domes tic situation for the purpose of set ting our own house in order. Federal Reserve Bank Statement A F T E R a long period of steady expansion in the credit re sources of the United States, the current banking statistics finally in dicate a turn, which may or may not prove temporary. Excess reserves of member banks over legal require ments are estimated as of Nov. 1 at $5,380,000,000, down $150,000,000 for the statement week. The factors occasioning this decline E ~ \ ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD 2838 — — N ov. 4, 1939 were chiefly an increase of $50,000,000 in currency circulation, sizable increases of Treasury, foreign bank and other deposits with the Federal Reserve banks, and a further reduc tion of $14,940,000 in the open mar ket portfolio of United States Treas ury securities. Monetary gold stocks of the country advanced $60,000,000 to $17,099,000,000, but this in fluence for the expansion of credit resources was overshadowed by the contrary items. It would appear, moreover, that the tremendous total of excess reserves will be whit tled down further in coming months unless altogether extraordinary events occur. The period of autumn expansion of currency circulation is at hand and is due to extend to the holiday season. The Treasury, moreover, has resumed new money borrowing on a large scale through agency flotations, and has given notice of an intention to borrow $500,000,000 directly in coming weeks. Offer to Holders of Certain Hungarian Municipal, Ecclesiastical and Private Long-Term Bonded Debts The Cash Office o f Foreign Credits at Budapest, Hungary, hereby announces that pursuant to the Offer of the Cash Office, published on July 23, 1937, it will redeem coupons o f the maturity, and with respect to the issues, hereinbelow specified, during the period stated, at the rate of $8.75 per coupon detached from a $1,000 bond. Such payment will be made through its Central Paying Agents in New York, SCHRODER TRUST COMPANY, 46 William Street, New York, N. Y. This Offer does not apply to coupons attached to any of the securities below mentioned which shall have been stamped and registered as being in Hungarian ownership under the Decree of the Hungarian Cabinet Council, No. 300/1936 M. E. and is made only to persons resident outside of the Kingdom of Hungary or firms or corporations situated outside Hungary, excluding branches thereof in Hungary. Coupons presented in acceptance o f this Offer must be transmitted to SCHRODER TRUST COMPANY, as Central Paying Agents of the Cash Office of Foineign Credits, together with a form o f letter of transmittal which is obtainable from such Paying Agents. N e of Issu am e Cu o D o p n ate O E ires ffer xp H N AR U G IAN LAN M R G G IN D O T A E STITU TE N ovem 1, 1939 A ril 30, 1940 ber p 7y2% S k g F n L d M in in u d an ortgage G ld o B d S on s eries “A” D ollar B n od H N AR U G IAN LAN M R G G IN D O T A E STITU TE N ovem 1, 1939 A ril 30, 1940 ber p 7V % S k g F n L d M 2 in in u d an ortgage G ld o B ds, S on eries “B” D ollar B n od N ATIONAL H N AR U G IAN IN U IA D STR L N ovem 1, 1939 A ril 30, 1940 ber p M R A E IN O TG G STITU LTD F M TE . irst ort gage S k g F n 7% G ld B dS in in u d o on eries “A”, D ollar issu e November 1, 1939. Cotton from Brazil In s e a r c h in g t h e w o r ld fo r s u p p lie s o f c o t t o n to f i l l t h e h i a t u s c a u s e d b y t h e S o u t h e r n b lo c k a d e , t h e m o s t h o p e f u l p a r ts h a v e r eceiv ed s c a r c e ly a n y a t t e n t i o n . in g . B r a z il is a m a g n if ic e n t c o u n t r y fo r c o t t o n -g r o w A s lo n g a s t h e y e a r 1 8 5 6 , G r e a t B r it a in im p o r t e d fr o m B r a z il n e a r ly 2 2 ,0 0 0 ,0 0 0 p o u n d s o f t h is s t a p le , o f w h ic h a b o u t o n e -t h i r d w a s s e n t o u t fr o m t h e p o r t o f P e r n a m b u c o . W e are r e m in d e d o f t h is f a c t b y t h e a rr iv a l fr o m t h e sa m e p a r t o f t h e g lo b e o f a c o n s id e r a b le q u a n t i t y o f c o t t o n a t N e w Y o r k . C o t t o n c u lt u r e in B r a z il is y e t in it s i n f a n c y , b u t a s t h e riv er a n d c o a s t n a v ig a t io n is e x t e n d e d b y t h e e m p lo y m e n t o f s t e a m e rs a n d t h e in te r io r is m o re i n t im a t e l y c o n n e c t e d w it h t h e s e a b o a r d b y t h e c o m p le t io n o f lin e s o f r a ilw a y , w e m a y c o n f i d e n t ly r e ly o n a r a p id in c r e a s e o f p r o d u c t i o n . A m o n g t h e n e w r a ilr o a d s w h o lly fin i s h e d o r in p r o g r e s s is o n e fr o m B a h ia , o n e fr o m P e r n a m b u c o a n d t w o fr o m R io d e J a n e ir o . T h e c o a s t w is e t r a d e b e in g n o w th r o w n o p e n to fo r e ig n s h ip p in g , in c r e a s e d f a c ilit ie s w ill b e e n j o y e d fo r c o n c e n t r a t i n g a t t h e s e p o i n t s t h e p r o d u c t s o f t h e in t e r io r , a n d B r it is h a n d F r e n c h c a p i t a li s t s w ill e a g e r ly a v a il th e m s e lv e s o f e v e ry n e w a d v a n ta g e . B r a z ilia n t r a d e , fo r m e r ly e n g r o s s e d b y t h e U n it e d S t a t e s t o a la r g e e x t e n t , is g r a d u a lly s lip p in g a w a y fr o m u s t h r o u g h t h e e f fo r t s o f m ore e n e r g e t ic r iv a ls— G r e a t B r it a in s u p p o r t in g tw o d i s t i n c t lin e s o f fir s t -c la s s s t e a m s h ip s a n d F r a n c e t w o , b e s id e s lin e s t o G e n o a , H a m b u r g , B e lg iu m a n d P o r t u g a l. F rom th e y e a r 18 50 , w h e n G r e a t B r it a in fir s t e s t a b lis h e d s te a m m a il fa c i li t i e s , t o 18 5 5 , s h e d o u b le d a la r g e t r a d e o f p r o fit a b le e x p o r ts , w h e r e a s b e fo r e a d v a n t a g e s w ere t h u s t u r n e d in h e r fa v o r , t h e U n it e d S t a t e s d e fie d a ll c o m p e t it io n . T h u s w e se e t h a t t h o u g h g e o g r a p h ic a lly m u c h n e a r e r , a n d e n j o y in g in a p e c u lia r s e n s e t h e fa v o r o f t h e B r a z ilia n G o v e r n m e n t a n d p e o p le , a n d p o s s e s s in g a la r g e v a r ie ty o f c o m m o d itie s a d a p t e d t o a p r o fit a b le e x c h a n g e , w e h a v e a llo w e d a r ic h t r a d e t o be d iv e r te d fr o m u s , a n d t h e G r e a t R e p u b l ic t o b e d e p r iv e d o f t h a t c o m m a n d in g in f lu e n c e w h ic h i t s h o u ld e x e rc ise a m o n g t h e fr e e g o v e r n m e n ts o f t h e W e s t e r n c o n tin e n t. B r a z il is a t t h e h e a d o f S o u t h A m e r ic a n S t a t e s . S in c e t h e e s t a b l is h m e n t o f t h e e m p ir e , in 1 8 2 2 , s h e h a s m a d e s u b s t a n t i a l a n d u n fa lt e r in g p r o g r e s s in a ll t h e e le m e n t s o f n a t i o n a l g r e a t n e s s . T h e g lo w in g d e s c r ip t io n g iv e n b y F la d fie ld ’ s w o r k o n B r a z il— p u b lis h e d in L o n d o n a fe w y e a r s a g o — is f u l l y d e s e r v e d . H e says: “ I f o n c e t h e tid e o f e m ig r a tio n b e g in s t o se t fa ir ly to w a r d t h a t im m e n s e a g r i c u l t u r a l fie ld , w a te r e d b y t h e riv ers o f S o u t h A m e r ic a , t h e r e is n o fo r e s e e in g t h e e x t e n s io n o f w e a lt h a n d p r o s p e r ity t h a t m u s t a s s u r e d ly fo ll o w ; fo r p o p u la t io n is th e so le r e q u ir e m e n t to f i t t h e s e lim itle s s a n d t e e m in g r e g io n s t o w o r k o u t t h e d e s t in y w h ic h i t is im p o s s ib le t o d o u b t t h a t P r o v id e n c e h a s d e s ig n e d fo r t h a t p o r t io n o f t h e e a r t h , w h e r e t h e m a je s t y a n d lu x u r ia n c e o f n a t u r e in v it e t h e p r e s e n c e o f m a n t h r o u g h h ig h w a y s a t o n c e th e m ig h t ie s t a n d m o s t fa c ile in t h e w o r ld .” A m e r ic a n s h a v e n o t b e e n w h o lly u n m in d f u l o f th e ir o p p o r t u n i t i e s . In t r u t h , A m e r ic a n e n e r g y h a s b e e n la r g e ly i n f u s e d , d ir e c t in g in t h e c o n s t r u c t i o n o f r a ilw a y s , e n c o u r a g in g m a n u f a c t u r e s , a n d s t im u la t in g tra d e . A t S t . A le x is , a n A m e r ic a n e r e c te d a c o t t o n f a c t o r y , t h e f i r s t in t h e P r o v in c e o f R io d e J a n e ir o . t h is is c a u s e fo r c o n g r a t u la t i o n s . A ll B u t if in p a s t y e a r s t h e U n it e d S t a t e s G o v e r n m e n t h a d e n g a g e d m o re e a r n e s t ly in e f fo r t s fo r t h e e s t a b l is h m e n t o f s te a m m a il lin e s , w e s h o u l d n o w e n j o y t h a t p r e -e m in e n c e c la im e d b y a n o t h e r , a n d b e e n a b le d to a p p r o p r ia te to o u r s e lv e s t h e a d v a n t a g e s a r is in g fr o m t h e b e s t c o t t o n g r o w in g r e g io n o f t h e w o r ld b e y o n d t h e lim its o f o u r c o u n t r y . B r a z ilia n c o t t o n is a lw a y s g o o d , c o m m a n d in g a h ig h e r p r ic e in t h e L iv e r p o o l m a r k e t t h a n t h e a v e r a g e fr o m A m e r ic a n p l a n t a t i o n s , a n d m a y y e t c o n t r i b u t e , in a n e s s e n t ia l d e g r e e , t o relie ve t h e e m b a r r a s s m e n t t r a d e is s u f f e r i n g . s h o u l d r e m u n e r a t iv e p r ic e s c o n t i n u e . I t s c u lt u r e w ill r a p id ly e x t e n d , D u r in g t h e p a s t y e a r a n E n g lis h h o u s e in B r a z il is s a id t o h a v e c le a r e d $ 1 ,5 0 0 ,0 0 0 in t h is t r a d e , a n d s t il l a n o t h e r h a s p r o fit e d v e ry la r g e ly . O n t h e r e t u r n o f p e a c e , w e m ay h o p e o u r r e la t io n s w it h B r a z il w ill r e c e iv e p r o p e r a t t e n t i o n . H U N T ’ S M E R C H A N T S ’ M A G A Z I N E — M a r c h , 1863 Volume 149 ONE HUNDRED—The Commercial & Financial Chronicle—YEARS OLD It is especially noteworthy that the Federal Reserve banks con tinued in the last statement week their lowering of the open market holdings of United States Treasury securities, notwithstanding the gen erally downward trend of excess re serves. The drop of $14,940,000 carried the aggregate downward to $2,720,819,000. It was effected entirely in Treasury discount bill operations, such instruments falling to $159,380,000, while bond hold ings remained unchanged at $1,315.942.000, and note holdings were similarly motionless at $1,245,497,000. The bulge in holdings occa sioned by the September support of the Treasury securities market is diminishing week by week, but still remains sizable. There is no deny ing the advisability of continuing the process of liquidating more of these securities, even if excess re serves were to drop heavily from the current level. It must be added, however, that the open invitation to credit expansion on a huge scale implied by the excess reserves figure remains unaccepted. The state ment of New York City reporting member banks indicates an increase of business loans by $9,000,000 to $1,672,000,000, while loans to brok ers on security collateral advanced $5,000,000 to$472,000,000. Neither set of figures can be regarded as indicative of undue demand for accommodation. The Treasury deposited $34,996,000 gold certificates with the Federal Reserve banks in the state ment week, raising their holdings to $14,839,206,000. This was offset in part by a drop of other cash, and the total reserves of the regional banks moved up $30,503,000 to $15,187,920,000. Federal Reserve notes in actual circulation increased $37,668,000 to $4,781,385,000. To tal deposits with the 12 banks de clined $15,197,000 to $12,953,024,000, with the changes in accounts indicative of some unusual trans actions. Member bank reserve bal ances declined $136,782,000 to $11,813.664.000, for funds were si phoned into all other accounts. The Treasury general account balance increased $23,027,000 to $349,030,000. Foreign bank deposits moved up $51,983,000 to $470,881,000, obviously as a result of a transfer of officially controlled funds from de posit account with local member banks. Other deposits increased $46,575,000 to $319,449,000. The reserve ratio remained unchanged at 85.6%. Discounts by the re- CONGRATULATIONS TO THE COMMERCIAL AND FINANCIAL CHRONICLE ON A CENTURY OF CONSTRUCTIVE SERVICE BA N KERS TR U ST COM PANY SIXTEEN WALL STREET, NEW YO R K Member o f the Federal Deposit Insurance Corporation Lawrence Turnure & Co. FOUNDED 1832 ,, a _ f New York Stock Exchange . Members York Coffee and Sugar Exchange Associate Member, New York Curb Exchange One Wall Street New York Teletype No. NY 1-1642 Telephone WHitehall 3-0770 Cable Address Turnure 2839 ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD 2840 — — N ov. 4, 1939 gional banks increased $497,000 to $6,248,000. Industrial advances fell $83,000 to $11,680,000, while com mitments to make such advances fell $133,000 to $10,023,000. New York Stock Market ITH occasional exceptions, stock prices drifted slowly lower this week in a series of moderately active sessions. The dealings plainly reflected growing uncertainty as to the course of the European war and the industrial upswing that started last September on the outbreak of the conflict. Military activities on the Western Front were only a semblance of warfare, probably because of the rains that have turned the area into a sea of mud. All experts agree, moreover, that the stalemate may easily continue throughout the winter. This possibility di minished much of the speculative enthusiasm that sent stocks sharply higher in the New York market during September, as orders from the Allies for war and other ma terials may be far under original forecasts of a few observers. Even the action by the Senate and the House on the amendments to the neutrality law failed to stimulate any buying of consequence, save in a few airplane manufacturing issues. The market appeared to realize more and more distinctly that a “ war boom” necessarily is contingent on the character of the conflict, which so far has been startlingly out of line with pre dictions. As for the domestic business improvement, the evidence pointed toward advance buying, in anticipation of a war boom, and the circle thus was completed. Dribbling liquidation was the rule in all sessions of the week, although a little buying interest developed from time to time. The trading hovered around the 1,000,000 share mark, and usually moved over that line only when selling took place. An announcement by the Securities and Exchange Com mission on “ insider” trading during September probably affected the market adversely, for it indicated that the “ insiders” sold while the market was advancing. Continued strikes in some sections of the automobile industry also proved a bearish factor. The airplane manu facturing stocks proved the chief exception to the mild downward trend, these issues advancing on the change in our neutrality laws, which will permit the export of W Craf t smanship Respected the World Over Engraving is an industry which retains its traditions— where painstaking work and uncompromising quality are honoured still. Since 1858, when its predecessors— a group of skillful steel engravers with mutual ideals for their profession—were incorporated, this company stead ily has broadened its business sphere. Today its products —bank notes, bonds, stock certificates, letters of credit, postage or revenue stamps and other fiscal instruments— are utilized in more than three-quarters of the civilized world. This achievement is a significant tribute to an enterprise holding to the highest precepts of its art. A m e r i c a n B a n k N o t e Co m p a n y 7 B O D S R E , N YO K 0 R A T E T EW R In terest e x e m p t fr o m a ll p r e s e n t F ed era l a n d N e w Y o r k S ta te I n c o m e T a x a tio n i 6 ,o o o City o f N e w Rochelle, New York 1.90% Bonds Due serially November 1, 1940 to 1949, inclusive Legal In vestm en t, in our opinion, for Savings Banks and Trust F unds in New York State • T h e s e B o n d s , to be issued for various purposes, in the opinion of counsel will constitute valid and binding obligations of the C ity of N ew Rochelle, payable from ad valorem taxes levied against all the taxable property therein without limitation as to rate or amount . Prices to yield 0.40% to 2.10% T h e s e b o n d s a r e o ffe r e d w h e n , a s a n d i f is s u e d a n d re ce iv e d b y u s a n d s u b je c t t o a p p r o v a l o f le g a lity b y M e s s r s . C a ld w e ll & R a y m o n d , w h o s e o p i n i o n w ill be f u r n is h e d u p o n d e liv e r y . HALSEY, STUART & CO. STRANAHAN, HARRIS & CO. Inc. B. J. VAN INGEN & CO. INC. IN C O R P O R A T E D OTIS & CO. (IN C O R P O R A T E D ) Dated November 1, 1939. Principal and semi-annual interest, May 1 and November 1, payable in New Rochelle. Coupon Bonds in the denomination of $1,000, registerable as to principal and Interest. The information contained herein has been carefully compiled from sources considered reliable, and while not guaranteed as to completeness or accuracy, we believe it to be correct as of this date. November 3, 1939. ( C o n tin u e d o n p a g e 2844) ONE HUNDRED Volume 149 — The Commercial & Financial Chronicle — OF NEW YORK Maim Offiaa: 149 Uptown Office: BROADWAY 1002 MADISON AVE. (Bat. (Simgar Bm iltUmg) 77th 9 78th Sts.) Specializes in Personal Trusts Personal llankinfi and ROAKO OF DIRECTORS L e w is S p e n c e r M o r r is , C h a i r m a n o f t h e B o a r d E dm und p . R o g ers, C h a ir m a n o f th e E x e c u t iv e C o m m itte e 2841 THU 11111 fTTIIMIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlHIIIIIIIIIIIIIIIIIIIIIIIIIIIIimillllllllllllllllllll Fiilton Trust Company YE A R S OLD IBi T il VI' ; NATIONAL Ban k AND TRUST COMPANY m O E NEW YORK | Service— Maintaining an intimate, i personalized correspondent bank | service. ( 1 Experience— Officials with years o f service in this field, assuring a ; k n o w le d g e o f r e q u ir e m e n ts and j valuable assistance. j Policy — T o cooperate with out-of| town banks rather than compete for - business which is rightfully theirs. A r t h u r J. M o r r is , P r e s i d e n t R obert G oelet E dw ard D e w it t J ohn D . P e ab o d y Sta n l e y A . S w e e t B e r n o n S. P r e n t ic e F r a n k l in B . l o r d R u ssell E. B u rk e St e ph e n C . C l a r k C h a r l e s S c r ib n e r C h a r l e s S. B r o w n J o h n a . L a r k in R u s s e l l V . C r u ik s h a n k O ’ D o n n e l l I s e l in D e C o u rsey F a les E . T o w n s e n d I r v in C h a r l e s J. N o u r se Member Federal Reserve System and Federal Deposit Insurance Corporation H e n r y W . B ull liiiiiiiiiiim iiiiiiiiiiiiiiiim iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Resources over $ 1 6 5 ,0 0 0 ,0 0 0 ESTABLISHED 1908 MEMBER NEW VORK CLEARING HOtJSE ASSOCIATION FEDERAL DEPOSIT INSURANCE CORPORATION Statistics of Lowell Manufactures A large proportion of our fellow-citizens are ignorant of the deep root which domestic manufactures have taken in our country, and the vast impulse which home industry is already giving to commercial affairs, and the certain and steady market they afford to the Southern planter for the great staple article of Cotton. Take Lowell, only one manufacturing village, for instance, and we find an investment of nine millions of capital, 28 mills in active operation, exclusive of print works, 163,404 spindles, and 5,094 looms, requiring 890 bales of cotton per week, or 46,280 bales per annum; manufacturing weekly 1,061,250 yards of goods of various descriptions, 255,000 of which are printed, and giving employment to 2,077 males, 6,470 females, and furnish ing to the farmers in the neighborhood a ready market where their products are convertible to cash; for the hands are always paid off in money once a month, at least. The principal establishments are the Merri mack, Tremont, Suffolk, Lawrence, Appleton, Hamilton, Lowell and Boot mills; to the above may be added the extensive Powder Mills of O. M. Whipple, Esq.; the Lowell Bleachery, Flannel Mills; Card and Whip Fac tory; Planing Machine; Reed Machine; Flour, Grist, and Saw Mills; together employing above 300 hands and a capital of $300,000. And in the immediate vicinity, Glass Works and a furnace supplying every de scription of castings for machinery and engines for rail roads. The Locks and Canals Machine Shop, included among the 28 mills, can furnish machinery complete for a mill of 5,000 spindles in four months, and lumber and materials are always at command with which to build or rebuild a mill in that time if required. When building mills, the Locks and Canals employ, directly and indirectly, from ten to 1,200 hands. One hundred pounds of cotton will produce 89 pounds of cloth. Average wages of females, clear of board, $2 per week. Average wages of males, clear of board, 80 cents per day. Medium produce of a loom on No. 14 yarn, 44 to 55 yards per day. Medium produce of a loom on No. 30 yarn, 30 yards per day. Average per spindle, 1 1-0 yard per day. Persons employed by the companies are paid at the close of each month. Average amount of wages paid per month, $145,000. A very considerable portion of the wages is deposited in the savings bank. Consumption of starch per annum, 600,000 lbs. Consumption of flour for starch in the mills, print works and bleachery, per annum, 3,000 bbls. Consumption of charcoal, per annum, 500,000 bushels. When we consider that these establishments were only commenced in 1822, no one can resist the con clusion that, interrupted as it may be for a time, the United States is destined to prove a great manufactur ing nation, and the thousand establishments for manufacturing and mechanical purposes with which the face of the earth is dotted all over proves that it has taken a firm footing in the soil, and legislation may control or impede, but cannot prevent its growth. We say nothing at the present moment of other estab lishments, of which we propose hereafter to furnish statistical information; but this astonishing progress of one manufacturing settlement in Massachusetts alone awakens our admiration, but cannot withhold our meed of praise. HUNT’S MERCHANTS’ MAGAZINE— July, 1839 ONE HUNDRED 2842 — The Commercial & Financial Chronicle — Y E A R S OLD Nov. 4, 1939 F. H. P R IN C E & CO. BANKERS o m r S e c o n d PROVIDENCE, RHODE ISLAND HIGH-GRADE INVESTMENTS J e n / ic e Members New York, Chicago & Boston Stock Exchanges Wellington & C o . M em b ers N ew Y o rk S to ck E x ch a n g e 120 B ro a d w a y NEW YORK O T T O FU E R ST & C O . Members New York Stock Exchange 120 B r o a d w a y The R ook ery, LaSalle Street, Chicago — f i r s t hom e o f T h e Northern Trust Company in 18 8 9 it h pardonable pride,The N orth veys its record o f fifty years o f service. But more important than the mere time, is what has actually been accom plished during that period. For the country at large, the last half century has brought sweeping changes. For The Northern Trust Company, it has meant continuous expansion to keep pace w ith the financial needs of a stead /S'# ? Y ork A u stralia and New Zealand BANK OF NEW SOUTH WALES ily increasing number o f customers. P h y sica lly , Th e N orthern Trust Company o f today is a vastly different institution from that of 1889. But there has been no change in spirit. Still evi dent is a close adherence to the sound principles laid down by the founders. N ow as then, friendly, individual serv ice and careful financial operation are — and w ill continue to be— the most cherished objectives. W ern Trust Company this year sur N ew Cables: “ Lindros” (ESTAB LISH 1 ED 817) P aid-U Capital_____________ £8,780,000 p R eserve Fund_______________ 6,150,000 R eserve Liability of Proprietors-. 8,780,000 £23,710,000 Aggregate A ssets 30th Sept., 1938.£127,064,001 SIR ALFR ED D AVID N K.B.E., SO , G eneral M ager an H O ead ffice: G eorge Street, SYDNEY The Bank o f New South Wales is the oldest and largest bank in Australasia. With over 900 branches in all States o f Australia, in New Zealand, Fiji, Papua and New Guinea, and London, it offers the most complete and efficient banking service to investors, traders and travellers interested in these countries. /?2 9 THE NORTHERN TRUST COMPANY LO D N O N O FFIC ES: 29 Threadneedle Street, E.C. 47 B erkeley Square, W 1 . NORTHW EST CORNER LASALLE AND M ONROE STREETS, CHICAGO Agency Arrangements with Banks throughout the U. S. A. Member Federal Deposit Insurance Corporation Improvement in the Manufacture of Sugar A Business Girl W e a r e w e ll a c q u a i n t e d w it h a y o u n g a n d very h a n d so m e g ir l, sa y s th e a c c o m p lis h e d M r. L. Jf M c C o r m ic k , ( L a .) , h a s in v e n t e d of B a to n R ouge a n im p r o v e m e n t in t h e e d i t o r o f t h e “ M e r c h a n t s ’ L e d g e r ,” w h o h a s m a n u fa c tu r e o f s u g a r w h ic h c a n n o t fa il to th e b e o f g r e a t a d v a n ta g e to p la n te r s . p r in c ip a l m anagem ent of a la r g e m er c a n t ile e s t a b li s h m e n t in a f lo u r is h i n g c o u n B y th is i n v e n t i o n , o n e c o r d o f w o o d a l o n e is s u f f i tr y to w n , w h o v is its d iffe r e n t c itie s a lo n e , c ie n t sto p s s u p p lie s of dry l b s .) o f s u g a r ; w h i c h is le s s t h a n o n e - t h i r d g r o c e r ie s , sh oes, of th e a t h o te ls , good s, p u rch ases h ard w a re, n ic k n a c k s , and c h in a , a ll m u ltifa r io u s s a la b le s to m a n u fa c tu r e fu e l n ow sam e r e s u lt. con su m ed h ogsh ead to M r. M c C o r m ic k th e enough, m u s t b e r e m u n e r a te d in som e w a y ; a n d if th e b u s in e s s have n e v e r y e t le a r n e d as b e lo n g s to h er; and we t h a t sh e h a s s a c r i th is produ ce s a y s , n a iv e ly w h ic h m a k e u p “ a s t o c k ” in a m is c e lla n e o u s su ch e s ta b lis h ( 1 ,0 0 0 sto re . S h e g i v e s n o t e s , m a k e s c o n t r a c t s , a ll “ To one in v e n tio n , I su g a r p la n te r s h a v e n o t th e lib e r a lity a n d e n te r p r is e to p a y fo r its e s ta b lis h m e n t on fic e d o n e io ta o f th e d ig n it y , a d m ir a tio n a n d th e ir p la n t a t io n s , t h e y m a y h a v e t h e fir m re sp e c t w h ic h are h er ju s t d u e as a y o u n g , n e s s t o r is k a fe w t h o u s a n d d o lla r s in a b e t a m ia b le a n d v e ry p r e tt y w o m a n . t h a t i t w ill n o t s u c c e e d .” H U N T ’S M E R C H A N T S ’ M A G A Z IN E , A p r il, 1853 H U N T ’S M E R C H A N T S ’ M A G A Z IN E , S e p te m b e r , 1839 Volume 149 ONE HUNDRED— The FINCH,WILSON & CO. M em b ers N ew Y o r k S to ck E x ch a n g e S tocks and Bonds Commission Orders CarefullyExecuted for Institutions and Individuals Commercial & Financial Chronicle — Y E A R S OLD 2843 FARMERS DEPOSIT NATIONAL BANK OF 120 Broadway, New York PITTSBURGH ESTABLISHED 1832 STATEMENT OF CONDITION ■ OCTOBER 2 - 1 9 3 9 LAMBORN & CO., INC. 99 Wall Street, N. Y. C. SUGAR RESOURCES $ 36, 577, 653.77 CASH AND DUE FROM BANKS . . . . U. S. GOVERNMENT SECURITIES . . . . 53, 676, 232.57 OTHER BONDS AND SECURITIES . . . . 9, 392, 460.87 Export— I mports— Futures D Igby 4-2727 Royal Bank of Scotland Incorporated by Boyal Charter 1727 LOANS AND D I S C O U N T S ............................................. 11, 687, 008.07 BANK B U IL D IN G ................................................................... F o r e ig n 4, 802, 310.72 OTHER REAL E S T A T E ........................................................ 200, 000.00 O V E R D R A F T S ................................................................. 109.85 OTHER A S S E T S ................................................................. 40, 194.48 O ver 200 Y ea rs o f C om m ercia l B a n k in g $ 116, 375, 970.33 HEAD OFFICE—Edinburgh LIABILITIES General Manager William Whyte Total number o f offices, 258 CHIEF FOBEIGN D E P A B T M E N T C A P I T A L .............................................................................. $ 6, 000, 000.00 3 Bishopsgate, London, England Capital (fully paid)______________ £3,780,192 Reserve fund----------------------------- £4,125,965 Deposits------------------------------------ £69,921,933 s u r p l u s ............................................................................ 6 ,0 0 0 ,0 0 0 .0 0 5, 046, 114.75 DIVIDENDS DECLARED BUT NOT YET PAYABLE . 90, 000.00 RESERVES FOR TAXES AND OTHER EXPENSES Associated Bank, . . 376, 417.39 UNDIVIDED PROFITS AND RESERVES . . Williams Deacon’s Bank, Ltd. OTHER L I A B I L I T I E S ...................................................... 19, 926.78 D E P O S I T S ............................................................................ 98, 843, 511.41 $ 116, 375, 970.33 NATIONAL BANK of EGYPT DIRECTORS Head Office.............................. Cairo FULLY PAID CAPITAL . £3,000,000 RESERVE FUND. . . . £3,000,000 ARTHUR E. B R A U N ....................................................................................... President GEORGE H. CLAPP . . . . Director, Aluminum Com pany of Am erica GEORGE L. C R A I G ..................................President, Chartiers O il Com pany LON DON A G E N C Y 6 and 7, King William Street, E. C. 4 B r a n c h e s i n a l l th e -p r in c ip a l T o w n s i n EGYPT and the SUDAN MAURICE F A L K ........................................ Director, National Steel Corporation WILLIAM C. FOWNES, JR...........................................................................Industrialist JOHN G . F R A Z E R ...........................Member, Reed, Smith, Shaw & M cClay CHARLES W . FRIEND . . President, Brownsville Coal & Coke Com pany SIDNEY S. L I G G E T T .............................................................................................Banker WILLIAM L. MONRO . . President, Am erican W indow Glass Com pany FRANK R. P H I L L I P S ..................................President, Philadelphia Com pany F. BRIAN REUTER . Vice-President, The Union Trust Com pany of Pittsburgh NATIONAL BANK OF NEW ZEALAND, Ltd. Established 1872 Chief Office in New Zealand: Wellington P. R. M. H anna, General Manager Head Office: 8 Moorgate, London, E. C. 2. Eng. Subscribed C apital__________ £6,000,000 Paid-up C apital______________ £2.000,000 Reserve F u n d ______ _________ £1.000.000 Currency Reserve.............. £500,000 The Bank conducts every description o f banking business connected with N ew Zealand. Correspondents throughout the World London Manager, A. O. Norwood ANDREW W . R O B E R T S O N ........................................................................Chairman, W estinghouse Electric & Manufacturing Com pany WILLIAM WALKER RAYMOND WILLEY . . . . Director, Reliance Life Insurance Com pany . President, Harbison-W alker Refractories Company BEHIND THE ENDURING IN ST ITU T IO N ■ SU CCESSFU L CU STO M ERS M em ber Federal Deposit Insurance Corporation 2844 IB ONE HUNDRED— The Commercial & Financial Chronicle— YE A R S OLD Nov. 4, 1939 THE CANADIAN BANK O F COMMERCE HEAD OFFICE: TORONTO Established 1867 Paid-Up Capital____ $30,000,000 Reserve . . . ________ 20,000,000 T his Bank is in close touch with the commercial and financial life of Canada and is well equipped to serve corporations, firms and in dividuals interested in Canadian business. Branches in every important city and town in Canada and New foundland, also in Portland, Oregon; San Francisco; Seattle; Los A n gles; London, England; H avana; Kingston, Jamaica; S t. Pierre in St. Pierre et Miquelon; Bridgetown, Barbados, and Port of Spain, Trindad. 1939 1839 One Hundred Years of Banking Marine National Exchange Bank NEW YORK AGENCY Exchange PI. & Hanover St. F oreig n MILWAUKEE, WISCONSIN Established 1866 H. Hentz & Co. 5 (omni&rcelrast(om pany Established 1865 M em b ers New York Stock Exchange New York Curb Exchange New York Cotton Exchange Chicago Board of Trade Winnipeg Grain Exchange New Orleans Cotton Exchange A n d o th er E x ch a n g es KANSAS CITY, MISSOURI Member Federal Reserve System Statement of Condition at Close of Business October 2 , 1939 RESOURCES Cash and Due from Banks------------------------------------ $91,808,512.48 U. S. Government Obligations, Direct and Fully Guaranteed____________________________________ 26,124,676.49 117,933,188.97 State, Municipal and Federal Land Bank B o n d s.. 27,557,375.10 Stock o f Federal Reserve Bank----------------------------252,000.00 35.582,191.91 Other Bonds and Securities_______________________ 7.772,816.81 38,483.407.33 Loans and Discounts-----------------------------------------------------------------2,673,026.03 Bank Premises and Other Real Estate Owned------------------------------19,509.50 Customers’ Liability Account Letters o f Credit----------------------------301,866.99 Accrued Interest Receivable--------------------------------------------------------1,967.85 Overdrafts_ ____________________________________________________ _ 1,600.82 Other Resources_________________________________________________ . Total Resources_____________________________________________ $194,996,759.40 D o ep sits: LIAB ILITIES U. S. Government Deposits____________________ $ 1,834,175.00 Other Deposits_________________________________ 181,752,642.03 Capital______________________________ Surplus___________________________________________ Undivided Profits________________________________ 183,586,817.03 6,000,000.00 2,400,000.00 2,971,893.22 11.371,893.22 Liability Account Letters o f Credit---------------------------------------------Accrued Interest, Taxes and Expense------------------------------------------- 19,509.50 18,539.65 Total Liabilities______________________________________________ $194.996,759.40 The above statement is correct. E . P . W H E A T, Cashier M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T I O N “ arms, munitions and implements of war.” All reports agree that airplanes will be one of the eagerly sought export articles, and speculation in the related issues increased, with low-priced stocks in best demand. Even some of the airplane issues dipped when Congress acted on the neutrality laws, which suggests that the market experienced some thing like a general psychological reaction from the overdone expectations of a war boom. In the listed bond market only small variations were noted. United States Treasury issues held their ground until Secretary Morgenthau indicated that an immense financing program impends, and small recessions then developed, apparently on a precautionary basis. Best rated corporate loans were hardly changed all week. Speculative railroad N. Y. Cotton Exchange Bldg. NEW YORK BOSTON CHICAGO DALLAS D E T R O IT PITTSBURGH A M ST E R D A M GENEVA LONDON PARIS ROTTERDAM N ICE M ON TE CARLO CANNES Hong Kong & Shanghai BANKING CORPORATION Incorporated in the Colony o f Hongkong.'WThe liability of members is limited to the extent and in manner prescribed by Ordinance N o. 6 o f 1929 of the Colony. Authorized Capital (Hongkong Currency )H$50,000,000 Paid-up Capital (Hongkong Currency)— H$20,000.000 £6,500,000 Reserve Fund In Sterling_______________ Reserve Fund In Silver (Hongkong Cur2? rency)_______________________________ H$10,000,000 Reserve Liability of Proprietors (Hong*5 kong Currency)_____________________ _H$20,000,000 A. G. KELLOGG, Agent 72 WALL STREET, NEW YORK bonds were dampened by the decision, Monday, of the Central RR. of New Jersey to seek reorganiza tion in Federal courts. Other groups were dull. In the foreign dollar bond department some sizable fluctuations appeared, with the main trend upward in most groups. Latin American default issues came into demand on indications that Administra tion short-cuts are being sought toward lending the discredited debtors official money. Even this move ment was modest, however, for it is well established that Congress does not look with favor on such ex pedients. The commodity markets remained quiet and irregular, for they also are affected by the same considerations motivating stock trading. Foreign exchange dealings were modest, with the various official controls holding levels virtually unchanged. ONE HUNDRED —The Commercial & Financial Chronicle YE A R S OLD Volume 149 — 2845 Leading Out-of-Town Investment Bankers & Brokers ST. L OUIS 8 4 YEA R S 5 of tik & Co. SAINT LO U IS 509 ouve st B A N K IN G E X P E R IE N C E Members St. Louis Stock Exchange Adapted to the Needs o f Today M ILW A U KEE MISSISSIPPI/ 7 \V A L L E Y / TRUST/ WISCONSIN CORPORATION SECURITIES T e le ty p e — M ilw a u k e e 92 ED G A R , R IC K E R & CO. * CO^ 207 East Michigan St., Milwaukee, Wis. \v v ST. LOUIS BIRM INGH AM MARX & CO. BIRMI NOHAM, ALABAMA OUTHERN MUNICIPALS and CORPORATION BONDS HARTFORD T h i s bank and its antecedents have always been subscribers to the Commer Specialists in C onnecticut Securities PUTNAM & CO. M em b ers N ew Y o r k S to ck E x c h a n g e 6 CENTRAL ROW, HARTFORD Tel.5-0151 A. T. T . Teletype— Hartford 564 D ETR O IT LISTED AND UNLISTED SECURITIES cial and Financial Chronicle since a fact which reflects our estimate of its value. O L D KENT BANK GRAND Charles A. Parcel Is & Co. 1853, Member RAPIDS MICHIGAN Federal Deposit Insurance Corporation Members of Detroit Stock Exchange PENOBSCOT BUILDING, DETROIT, MICH* On the New York Stock Exchange 54 stocks touched new high levels for the year while no change occurred on the low side. On the New York Curb Exchange 54 stocks touched new high levels and 10 stocks touched new low levels. Call loans on the New York Stock Exchange remained unchanged at 1%. On the New York Stock Exchange the sales at the half-day session on Saturday last were 481.670 shares; on Monday, 639,170 shares; on Tuesday, 1,011,582 shares; on Wednesday, 794,370 shares; on Thursday, 845,710 shares, and on Friday, 1,815,860 shares. On the New York Curb Exchange the sales on Saturday last were 87,020 shares; on Monday, 154,275 shares; on Tuesday, 183,175 shares; on Wednesday, 142,375 shares; on Thursday, 141,565 shares, and on Friday, 287,620 shares. Incentive lacking, trading volume on the Stock Exchange on Saturday of last week dwindled and share prices reflected negative changes for the session. Opening fractionally higher Curtiss-Wright assumed the leadership with United States Steel following in the vanguard. Soon thereafter values succumbed to the market’s dullness and slipped in a gradual sort of way to lower ground. Some evidence of returning strength came to trading with the passing of the first hour and a half, but its influence on the final result was negligible. Quiet and irregular movements dogged the market’s footsteps on Monday, the trend differing in no marked degree from that of the previ ous session. The leadership again fell to the lot of Curtiss-Wright and it closed one-half point higher, establishing at the same time a new high record for 2846 ONE HUNDRED The — Commercial & Financial Chronicle— YE A R S Virgil Jordan, President, National Indus trial Conference Board, Inc., Extends Congratulations to the Chronicle It is a privilege to be able to congratulate the Chron icle on its first hundredth birthday. To anyone with a sense of the past, the Chronicle is much more than a publication. It is an in stitution that symbolizes the strength and endurance of the spirit and tradition of American enterprise. Its cen tennial is more than an anni versary. To us of this gen eration it is an inspiration; and we salute it with pro found respect and admira tion for the immense accom plishment of its labor, the fine courage of its convic tions, and with hope and faith in its future. the year. The divergent views held by prominent students of both the European political situation and domestic business problems acted in large measure to retard the forward movement of prices and Tuesday’s session proved to be no exception to the rule. Starting firm aircraft shares pointed moderately higher the first hour. An abrupt selling wave ushered in the second hour’s operations and values were reduced from one to two and one-half points in fairly broad trading. Steel issues suffered the most with minor losses sustained among the motor and chemical shares. After mid-day activity was fairly well spent and the list just marked time to the closing, when some display of firmness came upon the market. The abundance of good news on the domestic business front failed to arouse traders and the buying public from their state of indecision and the market on Wednesday differed in no appreciable manner from the day previous. The European war continued to be the unknown factor in the present business situation and buyers were reluctant to make any extensive commitments OLD Nov. 4, 1939 in view of this fact. Firmness featured aviation shares, while chemical stocks improved on the day. Motor and steel issues, however, sold irregularly lower. Definite signs of strength were manifest the present week in aviation shares and Thursday’s deal ings helped to confirm this contention. Calmness pervaded initial trading, followed by an easier ten dency in the first hour. Subsequent recovery of a sort set in by noon and equities held to a dull but steady course until the final period when aircraft shares came to the aid of the rest of the list. Sales turnover on Friday more than doubled Thursday’s volume, in spired in the main by the favor with which repeal of the arms embargo provisions of the neutrality law was received in the House. Gains ranged from frac tions to two points. In afternoon trading brokers discounted in good measure the benefits to accrue to business and industry should repeal of the arms embargo become a reality and once again the market returned to its accustomed state of dulness and irregularity. As compared with the closing on Friday of last week, equities, with the exception of the aircraft and a few scattered issues closed lower yesterday. Gen eral Electric closed yesterday at 4134 against 4134 on Friday of last week; Consolidated Edison C o. of N . Y . at 3134 against 3134; Columbia Gas & Electric at 734 against 7^4; Public Service of N . J. at 3 9 J4 against 4034; International Harvester at 63 against 6434; Sears, Roebuck & Co. at 8534 against 84; Montgomery W ard & Co. at 5434 against 5634; Woolworth at 4134 against 4134, and American Tel. & Tel. at 16834 against 16734Western Union closed yesterday at 2934 against 33 on Friday of last week; Allied Chemical & D ye at 176 against 182; E . I. du Pont de Nemours at 18034 against 182; National Cash Register at 16 against 17; National Dairy Products at 1634 against 1634; National Biscuit at 2334 against 2334; Texas Gulf Sulphur at 3534 against 3634; Continental Can at 4434 against 4534; Eastman Kodak at 16334 The Dry Diggin’s for Gold in California The “dry diggings” of Weaver’s Creek being a fair specimen of dry diggings in all parts of the mining region, a description of them will give the reader a general idea of the various diggings of the same kind in California. They are called “dry” in contra-distinction to the “wet” diggings, or those lying directly on the banks of streams, and where all the gold is procured by washing. The stream courses between lofty tree-clad hills, broken on both sides of the river into little ravines or gorges. In these ravines most of the gold is found. The loose stones and top earth being thrown off, the gravelly clay that follows it is usually laid aside for washing, and the digging continued until the bottom rock of the ravine is reached, commonly at a depth of from one to six feet. The surface of this rock is carefully cleared off, and usually found to contain little crevices and holes, the latter in miner’s parlance called “pockets,” and in which the gold is found concealed, sparkling like the treasures in the cave of Monte Cristo. A careful examination of the rock being made, and every little crevice and pocket being searched with a sharp-pointed knife, gold in greater or less quantities invariably makes its appearance. I shall never forget the delight with which I first struck and worked out a crevice. It was the second day after our installation in our little log hut; the first having been employed in what is called “ prospecting,” or searching for the most favorable place at which to commence operations. I had slung pick, shovel, and bar upon my shoulder, and trudged merrily away to a ravine about a mile from our house. Pick, shovel, and bar did their duty, and I soon had a large rock in view. Getting down into the excavation I had made, and seating myself upon the rock, I commenced a careful search for a crevice, and at last found one extending longitudinally along the rock. It appeared to be filled with a hard, bluish clay and gravel, which I took out with my knife, and there at the bottom, strewn along the whole length of the rock, was bright, yellow gold, in little pieces about the size and shape of a grain of barley. Eurkea ! Oh how my heart beat! I sat still and looked at it some minutes before I touched it, greedily drinking in the pleasure of gazing upon gold that was in my very grasp, and feeling a sort of independent bravado in allowing it to remain there. When my eyes were sufficiently feasted, I scooped it out with the point of my knife and an iron spoon, and placing it in my pan, ran home with it very much delighted. I weighed it, and found that my first day’s labor in the mines had made me thirty-one dollars richer than I was in the morning.— Buffum. HUNT’S MERCHANTS’ MAGAZINE— December, 1850 Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD — BANK OF MONTREAL Established l8l7 The First National Bank and Trust Company o f New Haven C a p i t a l ............................. $36,000,000 Rest and Undivided P roftc $40,183,254 Total Assets in Excess o f $850,000,000 P resident H . R. Drummond, Esq. V ice -P residents M aj.-Gen. The Hon. S. C. Mewburn, C .M .G . W . A . Bog, Esq. G eneral M anagers Jackson Dodds — G . W . Spinney ■A Branches and Agencies In C anada and N ewfoundland — More than 500 Branches. In Lo n d o n : 47 Threadneedle St., E.C. 2 ; 9 Waterloo Place, S .W . 1. In the U nited States— New York, 64 W all S t.; Chicago: 27 South La Salle St.; San Francisco: Bank of Montreal (San Francisco), 333 California Street. 2847 — 42 C H U R C H S T R E E T , N E W H A V E N C O N N E C T IC U T Statement of Condition at the Close of Business September 30, 1939 R E S O U R C E S C a s h a n d D u e f r o m B a n k s ............................................ $ 7 , 7 0 9 ,5 2 7 .6 7 U n ite d S ta te s G o v e r n m e n t S e c u r itie s 1 1 ,2 7 3 ,2 8 7 .5 0 . . . O t h e r B o n d s a n d S e c u r i t i e s ............................................ 1 ,1 8 6 ,3 8 4 .8 5 L o a n s a n d D i s c o u n t s ........................................................... 1 2 ,3 8 5 ,3 1 5 . 6 7 B a n k in g H ou se $ 5 0 4 ,2 6 5 .9 3 ; F u rn itu re and F i x t u r e s $ 2 9 ,6 6 7 .7 1 5 3 3 ,9 3 3 .6 4 O t h e r R e a l E s t a t e .................................................................. 1 0 9 ,8 7 7 .8 7 A c c r u e d I n t e r e s t R e c e i v a b l e ..................................... 5 5 ,4 7 9 .3 4 $ 3 3 ,2 5 3 ,8 0 6 .5 4 L I A B I L I T I E S NATIONAL BANK OF INDIA, LIMITED S u r p l u s .............................................................................. Bankers to the Government in Kenya Colony and Uganda U n d i v i d e d P r o f i t s ................................................. 2 2 2 ,2 3 6 .5 2 R e s e r v e f o r T a x e s , I n t e r e s t , e t c .................... 8 0 6 ,7 0 8 .0 2 Head Office: 26, Bishopsgate, London, E. C. Branches in India, Burma, Ceylon, Kenya Colony and Aden and Zanzibar Subscribed Capital________ £4,000,000 Paid-Up Capital___________ £2,000,000 Reserve Fund______________ £2,200,000 The Bank conducts every description o f banking and exchange business Trusteeships and Executorships also undertaken C a p i t a l ............................................................................................... $ 2 ,1 8 0 ,0 0 0 .0 0 R e serv e fo r F e d e ra l D e p o s it I n s u r a n c e F u n d D e p o s i t s o f O t h e r B a n k s .................................. U n ite d S ta t e s G o v e r n m e n t D e p o s its . 4 4 ,7 9 3 .1 5 1 ,6 7 0 ,0 1 0 .6 6 . . . 7 6 5 ,0 3 0 .9 4 2 6 ,6 8 3 ,0 2 7 . 2 5 $ 3 3 , 2 5 3 ,8 0 6 .5 4 MEMBER FEDERAL RESERVE SYSTEM MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION at 3134 against 3234; New York Central at 21 )4 against 2 2 )4 ; Union Pacific at 102 against 10234; Southern Pacific at 1734 against 17)4; Southern Railway at 20 )4 against 2 0 )4 , and Northern Pacific at 1134 against 11)4The steel stocks with one exception show fractional recessions the present week. United States Steel closed yesterday at 7634 against 76 on Friday of last week; Crucible Steel at 4834 against 49; Bethlehem Steel at 90 )4 against 9134, and Youngstown Sheet & Tube at 5334 against 53)4In the motor group, Auburn Auto closed yesterday at 334 against 2 )4 bid on Friday of last week; General Motors at 5424 against 5 5 )4 ; Chrysler at 8 9 )4 against 9134; Packard at 3 )4 against 4 , and Hupp Motors 134against 1 )4 . Among the oil stocks, Standard Oil of N . J. closed yesterday at 48)4 against 4 7 )4 on Friday of last week; Shell Union Oil at 14)4 against 1 4 )4 , and Atlantic Refining at 24 against 24)4Among the copper stocks, Anaconda Copper closed yesterday at 3 4 )4 against 3 3 )4 on Friday of last . A l l O t h e r D e p o s i t s ................................................. against 161; Standard Brands at 534 against 6; W estinghouse Elec. & M fg . at 114)4 against 115)4; Lorillard at 2 2 )4 against 2334; Canada D ry at 1534 against 1534; Schenley Distillers at 1434 against 1 4 % , and National Distillers at 2434 against 24 )4 In the rubber group, Goodyear Tire & Rubber closed yesterday at 2734 against 2834 on Friday of last week; B . F. Goodrich at 2134 against 2 2 )4 > and United States Rubber at 4134 against 4334Railroad share prices ruled lower this week. Penn sylvania R R . closed yesterday at 25 against 2634 on Friday of last week; Atchison Topeka & Santa Fe at 8 8 2 ,0 0 0 .0 0 week; American Smelting & Refining at 54 )4 against 55, and Phelps Dodge at 4234 against 42 J4In the aviation group, Curtiss-Wright closed yes terday at 11)4 against 8 )4 on Friday of last week and Douglas Aircraft at 8 6 )4 against 84)4Trade and industrial reports showed a general maintenance of the high rate of activity reached late in October. Steel operations for the week ending to day were estimated by American Iron & Steel Insti tute at 9 1 .0 % of capacity, against 9 0 .2 % last week, 8 7 .5 % a month ago, and 5 6 .8 % at this time last year. Production of electric power for the week to Oct. 28 was reported by Edison Electric Institute at 2 ,5 3 8 ,779,000 kwh., against 2,4 9 3 ,9 9 3 ,0 0 0 in the preceding week and 2,226,038,000 in the similar week of 1938. Carloadings of revenue freight for the week to Oct. 28 were reported by the Association of American Rail roads at 834,096 cars, a decline from the previous week of 27,102 cars, but an increase of 125,506 cars over the corresponding week of last year. As indicating the course of the commodity markets, the December option for wheat in Chicago closed yes terday at 8734c. against 8534c., the close on Friday of last week. December corn at Chicago closed yesterday at 5034 against 4 9 )4 C-, the close on Friday of last week. December oats at Chicago closed yesterday at 3634 against 3534c -, the close on Friday of last week. The spot price for cotton here in New York closed yesterday at 9 .0 2 c ., against 9 .3 9 c ., the close on Friday of last week. The spot price for rubber yesterday was 2 0 .40c., against 2 0 .25c., the close on Friday of last week. Domestic copper closed yesterday at 1234c., the close on Friday of last week. In London ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD 2848 — — Nov. 4, 1939 REINSURANCE - IN AN ADMITTED AMERICAN COMPANY 5 4 Years o f Service The Preferred Accident has throughout its 54-year career built up and maintained a progressive staff of agents in all parts of the country with whom its relationship has been -A L W A Y S A N A V A IL A B L E A S S E T THE E XCESS IN S U R A N C E C O M P A N Y friendly and mutually profitable. The cornerstone of the Preferred's success has been gradual, steady growth, the empha O F A M E R IC A A N ew J ersey C orporation 9 9 Joh n S tr e e t, N e w Y o r k C it y sis being on careful underwriting in both field and home office, and a policy of claim settlements that builds good will am ong M ANAGEM ENT policyholders. S T R E A M L IN IN G That agents appreciate this program in its broad aspects is indicated b y their long time representation of the Preferred. Autom obile Accident Plate Glass Burglary Liability T he Preferred A ccident Insurance C om pany of New York I I I Streamline your O p e r a t i n g M e t h o d s , and you’ll stimulate your O p e r a t i n g P r o f i t s ! Experienced Industrial M a n agement Counsel, for over 10 years actively engaged in cost reduction and simplification of methods, in plant, production, labor, administrative and sales problems. N ow available. W ill ing to accept temporary employ ment to prove worth. B ox S 10, Financial Chronicle, 25 Spruoe S t ., N ew Y ork C ity . The “Expandit” Binder is adjustable to the thickness o f the number o f issues it contains In sizes up to 13x8M inches 80 MAIDEN LANE, N E W YORK Price $ 2 .0 0 each Plus postage Edwin B. Ackerman, President Prices fo r larger sizes on application THE “EXPANDIT” BINDER 2 5 S pru ce S t ., the price of bar silver closed yesterday at 23 1-16 pence per ounce against 2 3 ^ pence per ounce the close on Friday of last week, and spot silver in New Y ork closed yesterday at 3 4 ^ c . , against 34J^c., the close on Friday of last week. In the matter of foreign exchanges, cable transfers on London closed yesterday at S3.99J4 against $3.99J^ the close on Friday of last week, and cable transfers on Paris closed yesterday at 2.263^c. against 2 .2 6 M c* the close on Friday of last week. E u ro p ea n S to c k M arkets A R R O W price movements were noted this week N on stock exchanges in the leading European financial centers, with dealings modest in every session. Uncertainty prevailed everywhere as to the dull and dragging war that is being fought on the W estern Front. The puzzled traders and in N e w Y o r k C it y vestors in the London, Paris and Berlin markets awaited developments of the conflict, and especially the announcements of government war loans, which cannot be delayed much longer. On the London Stock Exchange gilt-edged issues lost their good tone of the several preceding weeks, in expectation of an early British Treasury flotation, but the losses were small and prices held above the minimum levels established late last August. British industrial stocks moved irregularly in quiet trading. Some inquiry developed for Japanese and Chinese bonds, owing to rumors that the undeclared war between those countries may soon be settled. On the Paris Bourse a generally firm undertone prevailed, partly because the month-end settlement again was effected easily with money at % % , and partly because the Russian Soviet exposition of foreign policy im- Volume 149 P A U L IS T A ONE HUNDRED—The Commercial & Financial Chronicle—YEARS OLD R A IL W A Y 2849 C O M P AN'S (C o m p a n h ia P a u lis t a d e E s t r a d a s d e F e r r o ) F ir s t a n d R e f u n d in g M o r t g a g e 7 % S in k in g F u n d G o ld B o n d s The Undersigned have received funds for the payment o f the March 15, 1938 interest on the above Bonds. The Undersigned will, on and after November 6, 1939, be prepared to make payment of the interest to the holders of the March 15, 1938 coupons, upon presen tation and surrender o f such coupons at the office of the Undersigned. LADENBURG, THALMANN & CO. Fiscal Agents, 25 Broad Street, New York D ividends F O U N D E D 1851 M unicipal C o rpo ra te S ecurities AN D THE ATLANTIC REFINING CO. COMMON DIVIDEND NUMBER 137 A t a meeting of the Board of Directors held October 30, 1939, a dividend of twenty-five cents per share was declared on the common stock of the Company, payable December 15, 1939, to stock holders of record at the close of busi ness November 21, 1939. Checks will be mailed. W M . O ’C O N N O R October 30, 1939 E stabrook & Co. MEMBERS * NEW YORK STOCK EXCHANGE 40 W A L L S T R E E T NEW YORK EATON MANUFACTURING COMPANY CLEVELAND, OHIO Dividend No. 58 The Board o f Directors o f Eaton Manufacturing Company has de clared a dividend o f Fifty Cents (50c.) per share on the outstanding common stock o f the company, payable on November 25th, 1939 to shareholders o f record at the close o f business on November 8th, 1939. H. C. STUESSY, Secretary. October 27th, 1939. NORTHERN PIPE LINE COMPANY 26 Broadway, New York, October 19, 1939. A''dividend o f Fifteen (15) Cents per share has been declared on the Capital Stock ($10.00 par value) o f this Company, payable December 1, 1939 to stockholders o f record at the close of business November 17, 1939. J. R . FAST, Secretary. THE BUCKEYE PIPE LINE COMPANY 26 Broadway, New York, November 3, 1939. A dividend of One ($1.00) Dollar per share has been declared on the Capital Stock o f this Com pany, payable December 15, 1939 to stockholders o f record at the close o f business November 24, 1939. J. R. FAST, Secretary. ( in c o r p o r a t e d ! llrC?*7 Providence Washington Insurance Go. P r o v id e n c e , R h o d e I s la n d Anchor Insurance Go. Incorporated 1928 P r o v id e n c e , R h o d e I s la n d Owned and Operated by the P r o v id e n c e F IR E , W a s h in g to n A U T O M O B IL E , E x p e r ie n c e pressed France favorably. Dealings were restricted, however, for the Bourse enjoyed the All Saints holi day, Wednesday, the mid-week suspension tending to lessen trading in the four business sessions of the week. The Berlin Boerse was dull throughout, but price levels were well maintained. L a tin -A m e rica n L oan s OMETHING like an Administration “ drive” ap pears to be in progress toward the dubious end of Congressional authority to extend huge loans of United States Treasury money to Latin-American countries, as a means of stimulating trade with our “ Good Neighbors” to the south. There is little rea son to believe that Congress will agree to such pro posals, for it must be remembered that the request Ha r t f o r d 15 S T A T E S T R E E T SPRINGFIELD PROVIDENCE BOSTO N Secretory ELECTRIC BOAT COMPANY 33 PINE STREET NEW YORK, N. Y. At a meeting o f the Board o f Directors of Electric Boat Company, held October 24, 1939, a dividend o f 30c. per share was declared, payable on December 8, 1939, to stockholders o f record on the books o f the Company at the close o f busi ness November 22, 1939. Transfer books will remain open. Checks will be mailed. H E N R Y R. CARSE, President. N .B . Please notify Bankers Trust Company, 16 Wall St., New York, N . Y ., o f any change of address. S * BOSTON STOCK EXCHANGE — M A R IN E In su ra n ce AND R e p u ta tio n Co. A L L IE D — L IN E S S e r v ic e for authority to make large loans through the Export-Import Bank was the first item to be elimi nated when Mr. Roosevelt’s ill-fated $3,600,000,000 spending-lending plan came before Congress. It would seem, however, that the President and his New Deal advisers are not to be deterred by that emphatic indication of popular sentiment. The many defaults by Latin-American governments, which clearly are the first and foremost obstacle to fresh loans of taxpayers’ funds, were discussed in a new and astounding manner over the last week end. The endeavor, both at the White House and in other Administration circles, was to place the blame for the defaults elsewhere than on the shoulders of the debtors, where it so emphatically belongs. This ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD 2850 — — Nov. 4, 1939 United States Guarantee Company Organized 1890 90x«John Street FIDELITY SURETY HENDON CHUBB Chairman of Executive Committee political expedient hardly would merit serious con sideration, were it not for the obvious aim of send ing good “ other people’s money” after the bad loans of the 1920’s. President Roosevelt opened the campaign for authority to extend huge loans in a press conference, late last week. In answer to a question about the existing debts, he is said to have replied that he favored scaling them down, and he pointed out that the matter goes back to 1933, when the Administra The Coal Trade for 1838 The following is the quantity of coal shipped from the different regions in 1837 and 1838: 1837 S c h u y lk ill________________________ 523,152 L e h i g h ____________________________ 192,595 115,387 L a c k a w a n n a _____________________ B eaver M e a d o w s ------------------------33,617 _________ H a z le t o n ___________________ L a u rel H ill_________________ _________ 1838 431,719 152,699 78,207 44,966 14,221 2 -001 864,751 723,813 D ecrea se in 1838----------------------- 140,938 723,813 to n s The consumption of coal, as near as can be ascertained, was, in: A nnual In cre a se 1831 _________________ 1832 ___________ ____ 1833 1834 ________________ 1835 __ __________ 1836 _ _ 1837________________________ 177,000 329,000 413,000 456,000 556,000 682,090 664,000 150,000 84,000 41,000 100,000 126,000 D ecrea se HUNT’ S MERCHANTS’ MAGAZINE, July, 1839 New York City CASUALTY GEORGE H. REANEY President tion gave its blessing to the Foreign Bondholders Protective Council, Inc. “He added,” a Washington dispatch to the New York “ Times” said, “ that the members of the Council had been working alone and he did not think they had got very far. He said he was rather disappointed with their operations.” This was followed by reports on Monday that the Administration is preparing a new formula for the readjustment of Latin-American debts, as a basis for the extension of credits to the Republics. Offi cials engaged in this task were said to be Sumner Welles, Under Secretary of State; Secretary of the Treasury Henry IMorgenthau, and Jesse H. Jones, Federal Loan Administrator. The plan is said to involve substitution of direct Government negotia tion for the semi-official efforts at debt settlements made since 1933 by the Foreign Bondholders Pro tective Council. It will cover, according to the ad vance intimations, not only readjustment of nearly $1,000,000,000 of dollar bonds held in the United States, but also “ any internal financial arrangement which a Latin-American Government might pro pose.” In order to bolster this breath-taking plan, Sec retary Morgenthau added a criticism of his own to that made previously by the President of the For eign Bondholders Protective Council. Another curi ous and highly undiplomatic incident was a further criticism of the Council by the retiring Colombian Ambassador, Senor Don Miguel Lopez Pumarejo, after he emerged from a White House conference, Monday. This incident has gained little notice, not withstanding the sheer effrontery of an attack by a foreign Ambassador on a semi-official American Volume 149 ONE HUNDRED T h e — Com m ercial & Financial C hronicle — agency, simply because that agency protected United States’ interests in a fitting and determined man ner. But such aspects of the problem are of lesser importance than the general questions involved. It is needless to defend the record of the Council, for all that reasonably could be done was accomplished, as the annual reports of the organization amply attest. The Council proved rather more effective as a debt adjustment agency than the British, French or other European agencies, in the same period. It has been pointed out, moreover, that the criticism from Administration circles comes with poor grace, indeed, in view of the inability of Mr. Roosevelt and his associates to achieve adjustments of the war debts. The fundamental question in all this concerns the obvious aim of the Administration to engage in what Mr. Roosevelt himself once inaccurately de scribed as “ foreign boondoggling,” when he referred to American investments in foreign countries. If the current endeavors of the New Deal leaders prove successful, the United States will apparently wit ness some genuine “ foreign boondoggling.” Loans by one Government to another inevitably smack of political considerations, and there is no blacker chapter in financial history than the one dealing with inter-governmental debts. The war debts are illustrative, for even ordinarily solvent States, such as Britain, France and Belgium, refuse to pay on inter-government debt account, although they care fully observed their engagements on privately-held external obligations. The record of loans by large European countries to the smaller States of Eastern Europe is quite as black, the reservation being neces Y E A R S OLD 2851 sary in this case that the loans usually were not expected to be repaid. All such considerations are highly important, however, in view of the desire of Mr. Roosevelt and his associates to engage in a lib eral distribution of United States Treasury funds W. Gibson Carey, Jr., President of the Chamber of Commerce of the United States, Sends Message of Congratula tions to the Chronicle on its 100th Anniversary The 100th Anniversary of “ The Chronicle” is surely a fitting time for its friends to make men tion of the remarkable service which has been rendered to American busi ness. I, therefore, send you my congratulations on your accomplishments of the past and my best wishes for the future. Here in the Chamber of Commerce of the United States, not only your current copies but your bound vol umes for earlier years are used frequently. In addito this, I have observed throughout the country that bankers and other business men use your publication regularly and with great con fidence. In closing, I wish to comment on the helpful editorial policy which you have followed. Your analysis of important trends has been vigorous and constructive. ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD 2852 — — Nov. 4, 1939 ESTABLISHED 1856 H. HENTZ & CO. N. Y. Cotton Exchange Bldg., Hanover Square, N. Y. 730 Fifth Avenue New York Boston Paris Chicago Amsterdam 132 West 31st Street, New York Dallas Rotterdam Detroit London Pittsburgh Geneva -Cotton Stocks—Bonds— Grain—Sugar—Coffee Cocoa—Copper—Cottonseed Oil Rubber—Tin—Silk—Hides W ool—Lead—Zinc M em bers N ew Y o r k S to c k E x ch a n g e N ew Y o r k C u r b E x ch a n g e N ew Y o r k C o t t o n E x ch a n g e N ew O r le a n s C o t t o n E x ch a n g e N ew Y o r k C o ffe e & S u g a r E x ch a n g e , I n c . C o m m o d ity E x c h a n g e , I n c . N ew Y o r k C o c o a E x c h a n g e , I n c . W o o l A s s o c ia te s o f N ew Y o r k C o t t o n E x ch a n g e , I n c . N ew Y o r k P r o d u c e E x ch a n g e C h ic a g o B o a rd o f T r a d e W in n ip e g G r a in E x ch a n g e C a n a d ia n C o m m o d ity E x ch a n g e I n c . B o s t o n S t o c k E x ch a n g e C h ic a g o S to c k E x ch a n g e D e t r o it S to c k E x ch a n g e C h ic a g o M e r ca n tile E x ch a n g e L iv e r p o o l C o t t o n A s s o c ia t io n , L t d . A s s o c ia te M em bers o f U n ite d T e rm in a l S u g a r M a rk e t A s s o c ia tio n R o tt e r d a m G r a in M a rket Phototypes—Something New The style of engraving which we give of Mr. Edmonds is a recent discovery, the work being done by the phototypic process. Although it may be true that there is really nothing new under the sum, yet by means of the sun we are continually working out new and wonderful results. Thus, we are indebted to its rays for this new style of engraving. A matrix, the reverse of the desired plate, is made, and then copper is de posited upon that matrix in a galvanic battery. The process by which this is done is the invention of Leopold Eidlitz, the celebrated architect and designer; and there is now on the corner of Bleecker and Mercer streets an establishment called the American Phototype Co., where engravings of this kind are made. It takes three or four days to furnish an ordinary plate. The company have a room from which the light of day is carefully excluded, and in which a single small jet of gas is burning. Upon a table in this room is a photographic printing frame, a stout wooden frame with a thick glass in front, and a movable cover back of it. When the matrix is to be made, the glass is placed towards the table, the negative immediately upon that, next comes the matrix plate, and the cover fastened down tight with a brass spring. The frame is now removed from the dark room into the light of the sun and there left for about ten minutes. It is then re turned to the dark room, when the frame is opened, the matrix plate taken out, and the desired picture is found upon it, but otherwise it will be perfectly smooth, and hard to the touch. The next step in the process is to lay this plate in a flat dish containing a colorless fluid for about half an hour. When again examined, it is found to be a bas relief. A fluid solution of gold is now poured over it, so as to cover the entire plate. After the lapse of a minute or two this is poured off, and the plate placed in a dark box where it remains for nearly an hour. When taken out, it is covered with a film of bright metal, looking, in fact, as if it were made of solid gold, which, however, on examination will be found to be illusion, and what was gold before being converted into a thin blue bas relief. The matrix is then hung in a galvanic battery. The next day the plate is taken out of the battery, the glass removed, and the copper shell backed up with type metal, and then it is ready for the printer. In the way above described plates are made from engravings, or where they are desired to be made from original designs, negatives are taken from pen and ink sketches. Sometimes the artist sketches his design upon glass plates prepared for the purpose (as was done in the case of the engraving of Mr. Edmonds), the plates being like white porcelain, and can be worked on with a steel point with great facility. The beauty and excellence of many of the pictures made by this process, which we have seen, is really wonderful. Some of them we should pronounce superior (on account of the soft photographic tint they possess) to the fine steel engravings of which they are copies. The phototype company have, in connection with and as a part of their establishment, an apartment hung all around with these pictures of their own production. They have there heads of every size, from the imperial down to the cartes de visite, all exquisite, the half and middle tints as well preserved as the bolder lights and shadows. There also one sees some fine copies of the choicest engravings, all rendered with the utmost fidelity to the originals. HUNT’S MERCHANTS’ MAGAZINE— April, 1863 Volume 149 ONE HUNDRED— The Commercial & Financial Chronicle — YEARS OLD 2853 E. A. PIERCE & CO. MEMBERS OF N ew York Stock Exchange New York Curb Exchange New York Cotton Exchange New York Coffee & Sugar Exchange, Inc. New York Produce Exchange New York Cocoa Exchange, Inc. New York Mercantile Exchange Commodity Exchange, Inc. Boston Stock Exchange Chicago Board o f Trade Chicago Stock Exchange Minneapolis Chamber o f Commerce New Orleans Stock Exchange Portland Grain Exchange Philadelphia Stock Exchange Salt Lake Stock Exchange San Francisco Stock Exchange Seattle Grain Exchange Toronto Stock Exchange Winnipeg Grain Exchange Chicago Mercantile Exchange Cleveland Stock Exchange Dallas Cotton Exchange Detroit Stock Exchange Houston Cotton Exchange & Board o f Trade Liverpool Cotton Association, Ltd. Memphis Cotton Exchange New Orleans Cotton Exchange Milwaukee Grain & Stock Exchange B rok era ge Service in STOCKS—BONDS—COMMODITIES Leased private wires fro m all offices to the principal securities and commodities markets. M ain Office: 4 0 W a ll Street, N e w Y o r k C ity Branch Offices in the following cities: Akron, Ohio Boston, Mass. Buffalo, N . Y . Canton, Ohio Chicago, 111. Cleveland, Ohio Columbia, S. C. Columbus, Ohio Denver, Colo. Detroit, Mich. Grand Rapids, Mich. Greensboro, N. C. Houston, Texas Lake Charles, La. Lansing, Mich. Lebanon, Pa. Los Angeles, Calif. Massillon, Ohio among Latin-American Governments. With a few honorable exceptions, such as Argentina, those Gov ernments have shown themselves to be unworthy of financial trust and as altogether disdainful of their financial pledges. They were aided in this attitude by Mr. Roosevelt himself, who heaped contumely on foreign dollar bonds by referring to them as those “ ancient frauds of the 20’s.” But they cannot be excused or relieved of responsibility for such rea sons, any more than such worthy debtors as the Scandinavian countries would be justified in using Mr. Roosevelt’s inaccuracies as a basis for default. American Neutrality F Milwaukee, Wis. Minneapolis, Minn. M obile, Ala. Montgomery, Ala. New Orleans, La. Philadelphia, Pa. Portland, Ore. Raleigh, N. C. Saginaw, Mich. San Antonio, Texas. less will materialize, but a few of the more enthusi astic Washington observers even go so far as to predict that immense orders for clothing, foodstuffs and other wares will be placed in the United States, now that the embargo on war supplies has been repealed. The fact is, of course, that no obstacle existed in previous weeks of the war to the exporta tion of anything but “ arms, munitions and imple ments of war,” and it is obvious that little stimu lation is to be expected immediately of ordinary exports to the Allies. Repeal of the embargo pro visions occasioned rejoicing in Britain and France, and intense disappointment in the Reich, such re actions being entirely in accord with expectations. The hazards to genuine American neutrality were OLLOWING the action of the Senate a week ago, the House of Representatives voted on Thursday to return to the ordinary principles of international law, through repeal of the embargo provisions of the so-called Neutrality Act on the exportation of arms, munitions and implements of war to nations engaged in hostilities. The special session of 'Congress thus drew to its end, with the aims of President Roosevelt realized and only minor adjustments required through conferences between Senate and House conferees on the wording of the measure. The debate on the President’s proposals was long and often bitter, but it transcended party lines and concerned only the views of all concerned as to the best means for keeping the United States out of the European conflict. Whatever the merits of the debate, the issue now is decided. Already there is talk of immense orders from Britain and France for American munitions, airplanes and other war materials. Some of the rumored orders doubt San Francisco, Calif. Savannah, Ga. Seattle, Wash. Shelby, N . C. Spokane, Wash. Washington, D . C. Wilson, N. C . Winston-Salem, N . C. York, Pa. Morgan Davis & Co. Successors to Gwynne & D ay E S T A B L IS H E D 1854 Members New York Stock Exchange Members New York Curb Exchange 15 Broad St., New York. B R A N C H O F F IC E S: B ro n x , N . Y . C ity N e w b u rg h , N . Y . K in g s to n , N. Y . 1045 So. B o u le v a rd 120 G ra n d St. 48 M ain St. ONE HUNDRED— The 2854 Commercial & Financial Chronicle— YEARS OLD Nov. 4, 1939 ANDERSON, CLAYTON & CO C otton M erch a n ts HOUSTON ATLANTA NEW ORLEANS MEMPHIS BOSTON PROVIDENCE NEW BEDFORD FALL RIVER LOS ANGELES MOBILE SAVANNAH CHARLOTTE GASTONIA GREENVILLE DALLAS -and- Anderson, Clayton & Co. (Egypt)________________________Alexandria Anderson, Clayton & Co. (India)_________________________Bombay Anderson, Clayton & Co., S.A. de C.V. (Mexico)__________ Mexico City Anderson, Clayton & Cia., Ltda. (Brazil)________________ Sao Paulo and Recife Anderson, Clayton & Co., S.A. (Argentina)______________ Buenos Aires Anderson, Clayton & Co., S.A. (Peru)___________________ Lima Algodones, S.A. (Paraguay)_____________________________ Asuncion Represented Abroad by B E L G IU M __________________________________________ E d m o n d V e e s a e r t______________________________________________ G h e n t C A N A D A ____________________ A n d e r s o n , C la y to n & C o ________________________________________ M o n tre a l C H IN A _________________________________________ A n d e r s o n , C la y to n & C o _______________________________________ S h a n g h a i E N G L A N D _____________________________________ D . F . P e n n e fa t h e r & C o _______________________________________ L iv e r p o o l F IN L A N D ____________________________________________ F r itz E r le w e in ___________________________________________T a m m e rfo rs F R A N C E _______________________________________ A n d e r s o n , C la y to n & C o ________________________________________ L e H a vre G E R M A N Y ______________________________________ C la s o n , B u rg e r & C o ____________________________________________ B rem en H O L L A N D ________________________________ A n d e r s o n , C la y to n & C o ., N . V ______________________________ R o tt e r d a m H U N G A R Y _____ _______ ___________ ______ ____ __________ L a d . A c s _______ _________________________ _______________ B u d a p e s t I T A L Y ___________________________________________ L am ar F le m in g & C o _______ M ila n J A P A N ____________________________________A n d e r s o n , C la y to n & C o .’ s A g e n c y ___ ______________________________ ___ O saka P O L A N D ____________________________________________ G . A . S e b a s tia n _________________________________________________ L o d z P O R T U G A L __________________________ __________ A . A lg o d o e ir a W . S ta m ___________________________________________ O p o r to S W E D E N _____________________________________________ F . C o r in & C o ___ _____ ________________________________ G o t h e n b u r g S W I T Z E R L A N D ...................................................... ................. G y si & C o . ..................................... ....................................................Z u r ic h Correspondents: ANDERSON, CLAYTON & FLEMING, New York M em bers N ew Y o r k C o t t o n E x ch a n g e D. F. PENNEFATHER & Co., Liverpool M em bers L iv e r p o o l C o t t o n A s s o c ia tio n not confined, this week, to the wartime changes in onr own rules and regulations. The American mer chant ship, City of Flint, voyaged southward from the Russian port of Murmansk, under the control of a German crew, with one or another of the German ports as its destination. Flying a Nazi flag, with her American crew of 40 men still aboard, the vessel put in at the Norwegian port of Tromsoe Monday, but immediately resumed the journey along the ter ritorial stretch of Norway, accompanied by two Norwegian warships. Under German interpreta tions of international law, the captors of the ship may be within their rights in taking the vessel on the high seas and conducting her to neutral ports. But American views of international law do not necessarily coincide and a controversy thus is im minent, whatever the fate of the Government-owned ship. The immediate concern of our State Depart ment is for the safety of the American crew, and representations to this effect were made, Tuesday, both to Britain and to Germany. British authorities were said to have intimated that this consideration would guide them and would prevent attempts to interfere with the voyage of the vessel within Nor wegian territorial waters to a German port. The episode of the City of Flint apparently has occasioned an altogether unwarranted strain in the diplomatic relations between the United States and Soviet Russian Governments. An indignant pro test against the “ lack of coperation” by the Soviet authorities was lodged at Moscow, late last week, through Ambassador Laurence A. Steinhardt. This protest related to what were considered in Washing ton unconscionable delays in supplying information and to the Russian refusal to turn the ship over to the control of its American crew. A report supplied by Ambassador Steinhardt makes it clear that the Russian authorities endeavored to take a strictly neutral stand between the conflicting claims of the Washington and Berlin Governments, and relieve themselves of responsibility by sending the craft to sea precisely in the condition of her arrival at a Russian port under the control of a German prize crew. This controversy remains undecided. In the meantime, however, the Russian Premier and For eign Minister, V. M. Molotoff, has expressed great dissatisfaction with the “ intervention” of the United States in Russo-Finnish affairs. In a speech before the Soviet Parliament, Tuesday, the eminent Russian spokesman complained of the lack of American neutrality, notwithstanding agreeable re plies to the original representations by Washing ton. Quite obviously, the episode of the City of Flint occasioned a sharp change in the official Rus sian attitude, and it is at least conceivable that Washington was as much to blame as was Moscow. The United States Government was accused by M. Molotoff of “ meddling” in Russo-Finnish affairs. A reply “ in kind” was at the White House, Wednes day, through Stephen T. Early, Secretary to the President. Mr. Early suggested that the Russian spokesman had deliberately timed his declaration to influence the congressional vote on neutrality legislation. This statement by Mr. Early is un worthy and nonsensical, for it assumes that our Congress might be influenced by Moscow. Volume 149 ONE HUNDRED— The Commercial & Financial Chronicle — YEARS OLD 2855 Hallgarten & Co. Established 1850 New York Chicago London Western Europe P APER bullets were almost the only kind in use _ this week in Western Europe, although the great war between the Allies and Germany now is in its third month. The war of propaganda was waged more fiercely than ever, while soldiers on the border of Germany and France contemplated the deep mud and the heavy rainfall that added steadily to the difficulties of transportation. French official com muniques and reports of the German High Com mand were equally colorless, especially in the first half of the week now ending. Dispatches from Paris reported an “ eerie calm” on the Western Front,” the inactivity being so pronounced as to occasion nervousness and apprehension. With skies somewhat clearer in the latter half of the week, scouting parties resumed their ordinary forays. According to German accounts, Nazi troops penetrated a short distance into France as they sought to establish contact with their enemy. Large-scale activities apparently were not attempted, however, by either side, and almost all military ex perts now predict that there will be few develop ments of importance until next spring, in the land war. On the sea and in the air there was more action than along the heavily fortified border between France and the Reich. The powerful British Navy maintained its grim patrol of the North Sea and the unofficial naval blockade, which consists of a sweepingly inclusive contraband list. German naval strategy was directed toward breaking this strangle-hold on the Reich’s sea trade, with only indifferent success. Submarine sinkings of both W. C. Langley &Co. M E M B E R S N E W Y O R K STOCK E X C H A N G E 115 BROADWAY NEW YORK TELEPH ONE B A R C L A Y 7-8800 2856 ONE HUNDRED— The Commercial & Financial Chronicle — YEARS OLD Nov. 4, 1939 CURRENT NOTICE — W . W . W oods, Jr., well known Pacific Coast investment figure, has been elected Vice-President in charge of wholesale distribution of Edgerton, Riley & Walter, California Investment Securities Firm, it was announced. For more than 15 years M r. Woods has been identified in executive capaci ties in both wholesale and retail activi ties of well-known financial firms on the Pacific Coast. For the past six years he has acted as wholesale representative for a large eastern investment banking firm. In addition to serving Southern Cali fornia Investors with complete invest ment and brokerage facilities through retail office in Los Angeles, Whittier and Long Beach, Edgerton, Riley & Walter maintains an active department wholesaling securities among many lead ing investment firms on the Pacific Coast. S KILLED labor . . . plus nearby markets, plus un excelled transportation . . . added to plentiful lowcost electricity, equals an ideal plant location. New Y ork State offers them all. That is why 291 of the 340 different kinds of U. S. industries are represented in this territory. That is why New Y ork State has 10% of the nation’s population and 15% of its wealth. If you are a manufacturer and want to locate a plant in the middle of the w orld’s greatest market, write one of our operating headquarters offices in Albany, Buffalo or Syracuse, and let us tell you more about New Y ork State. OPERATING NIAGARA COMPANIES HUDSON belligerent and neutral shipping were continued, and hardly a day went by without reports of ship ping casualties. The sinkings, however, are said to be far smaller and less important than those of the early days of the World War unrestricted sub marine campaign of the Reich. More disquieting was confirmation by British authorities of last week’s rumors that a German pocket battleship is operating in the North Atlantic and another in the South Atlantic. These 10,000-ton vessels, speedy and heavily armored, are outmatched only by five British and French battleships in both speed and armament, and they might conceivably inflict enor mous damage on shipping. There appears to be some room for doubt even of the official British statements, however, for the actual sinkings of mer chant ships have fortunately been too sparse for un questioned acceptance of the rumors. Aerial war OF >— Brooke L. W ynkoop, for the past 73/2 years associated with Distributors Group, Inc. as Vice-President and manager of the trading department, is now associated with the firm of R . H. Johnson & Co., members of the New York Stock Exchange and the New York Curb Exchange. Prior to his connection with Distributors Group, M r. Wynkoop had for seven years been with John Nickerson & C o., Inc., where he was a Vice-President. Also newly associated with R . H. Johnson & Co. are Matthew J. McCabe, formerly of John Nickerson & Co., Inc., and D . R . Chattaway, formerly as sociated with Distributors Group, Inc. The New York office of Fundamental Group Corp. which, since the brokerage firm of E. A. Pierce & Co. disposed of its interest in the corporation, has con tinued to occupy the old offices main tained by the Pierce firm, have moved to 76 Beaver St., where it occupies the entire 27th floor. Fundamental Group Corp. is the national wholesale distribu tor of Fundamental Investors, Inc. and Investors Fund C, Inc. — John V. Hughes, formerly pro motion and sales manager of the New York News Bureau Association, has joined Standard Statistics C o., Inc. as an executive in the advertising and sales promotion department. Prior to his connection with the New York News Bureau Association, M r. Hughes was associated with the Jos. Richards Co. and with Lennen & Mitchell. __j . W . Sparks & Co. announce the formation of a Trading Department under the management of C. Edgar Lee, who will have associated with him Holland A. Stevens and Frank J. M cCall, all formerly with Dyer, Hudson & Co. fare consisted this week of a few flights by recon naissance planes of either side over the territory of the other, and some modest losses occurred. The propaganda war was waged with immense and untiring energy, partly for domestic consump tion and partly to influence the neutral countries. German circles insisted day after day that the Brit ish blockade will prove ineffective, and British and French studies appeared in great numbers to prove that German war and other supplies are inadequate for a long siege. The German spokesmen gave out a list of British ship casualties, last Sunday, which included no less than 10 warships, some of which have been inspected by neutral observers and testi fied to be free of damage. The Athenia incident found another echo in a denial Monday by Lord Lothian, the British Ambassador to Washington, that the vessel carried guns of munitions when she Volume 149 ONE HUNDRED The — Commercial & Financial Chronicle — YE A R S OLD 2857 100 YEARS AG O TTHEY^say people “took life easier” then. But who, today, would want to give up any of the con veniences that play a part in modern living ? Foremost among the contributors toward our truly easier life are gas and electric companies. Each year our standard of living, industrial progress, and national security are more and more dependent upon the continued growth and progress of the public utility industry. Long Island Lighting Com pany AND SUBSIDIARY COMPANIES Queens Borough Gas and Electric Company Nassau and Suffolk Lighting Company Kings C ounty Lighting Company Long Beach Gas Company, Inc. CURRENT NOTICE TO /p Tire | /^financial Vpnerri9* ^Iljrnntrl? $ respected member of the Fourth Estate, upon completion of a century devoted to informative service in the varied interests^of commerce and finance, Columbia System offers its heartiest felicitations. C o l u m b ia G a s & E l e c t r ic C o r p o r a t io n Columbia System companies extend their oper ations through Ohio, Indiana, Kentucky, West Virginia, Pennsylvania, Maryland, New York. — Business Publishers International Corp., New York, has just made public a comprehensive summary of the status of foreign dollar bond issues of various Latin American Republics as of the close of business, July 31, 1939 in a brochure entitled “ A Survey of Latin America’s Bonded Debt to the United States.” In releasing the summary, John Abbink, President of the corporation named, which publishes Spanish-language in dustrial and trade papers circulating wholly outside the United States, ex plained that its purpose was “ to assist in the adjustment of Latin America’s financial position, so that the weight of those defaults might be removed from the commercial picture.” 16 of the 20 southern republics are embraced by the summary. The ex ceptions are Venezuela, which has no foreign debt; Honduras, Nicaragua and Paraguay, which have no outstanding bonded dollar obligations. A total of $1,718,211,111, plus £29,379,280, is listed as being owed by the 16, according to the survey, which further cites $1,287,452,796, as the total in defaulted interest. The principal of indebtedness ranges from $342,670,000, owed by Brazil, to $1,331,111, owed by Guate mala. M ajor debtors include Mexico, with issues totaling $278,874,500, plus £26,272,140, some of which have been in default for a quarter of a century; Chile, $249,801,543; Argentina, $234,210,000; Cuba, $187,430,000; Colombia, $143,276,754. Approximately two-thirds of the entire grouping are in default. Exceptions are certain Argentine, Cuban Uruguayan and Haitian issues. — J. B. Hanauer & Co., 786 Broad St., Newark, N . J., analysis of Atlantic City, N . J. with relation to its bonds and their possibilities, including a financial state ment of the city. ONE HUNDRED 2858 — The Commercial & Financial Chronicle — Y E A R S OLD Nov. 4, 1939 The Story Behind the Sw itch ... EMPLOYEES. Service required 19,298 regu lar, 1,970 temporary employees in 1938. Pay roll $33,000,000. UTILITY SERVICE becomes real for a cus tomer when he flicks a switch and gets light . or heat . . . or power. This simple operation gives no hint, however, of the invest ment and organization which are necessary to make that service possible. These are some of the facts behind the service supplied by companies in the Associated System— INVESTORS. Holders of Associated Gas and Electric Company securities number 154,694, reside in every State and in many foreign countries. CONSTRUCTION. In order to maintain and extend service, approximately $200,000,000 spent for new construction over the past 10 years. More than $14,000,000 spent in 1938. CUSTOMERS. Electric, gas, and other serv ices supplied to 1,762,029 customers. Greatest concentration in New York, Pennsylvania, New Jersey. RURAL SERVICE. M ore than 230,000 farm ers and other rural customers receive electric service. This service required an investment of more than $40,000,000 by the System. RATES. Customers saved $17,080,000 an nually by total rate reductions made over past 10 years. In this period, domestic electric rate reduced 46% , compared with 36% for the entire industry. ★ # There is still a great development ahead for the public utilities. But it is a development which requires the industry to spend large funds. These funds will not be supplied by investors unless they feel assured that utilities will be allowed to earn a fair profit, and that they will not be injured by subsidized com petition. ASSOCIATED GAS AND ELECTRIC COMPANY Printing for Lace and Muslin Under the name of nature’s own printing, says the “ Journal of Industrial Progress,” Mr. Von Auer, of Vienna, has announced a peculiar method for obtaining impressions of the leaves of plants, &c. The process consists simply in taking two polished metal plates, one hard, the best substance being copper, and the other soft, as for example, a plate of lead, and laying the article to be copied between them and passing the plates between the rollers of a press, such as litho graphers use. By the great pressure ex erted, a beautifully sharp and faithful copy of the article is produced on the leaden plate from which impressions can be ob tained, which can be employed for printing thousands of copies. The dried leaves of plants can be copied in this way, and by using gutta percha gently heated, even moist plants will give impressions. The chief use of this new art will, however, be the reproduction of lace, &c., for if a piece of lace, or of worked muslin, be placed be tween the plates instead of leaves, a beau tiful intaglio copy will be produced, from which printed patterns can be provided. Such plates might be at once employed to print designs upon the muslin sent out to be worked. It is but just to remark that a similar invention was made about 20 years ago by a Dane of Copenhagen of the name of Peter Cyhl, who, having died before he per fected the art, the idea was lost sight of. HUNT’S MERCHANTS’ MAGAZINE, December, 1854 was sunk off the Irish Coast on Sept. 3. The Brit ish Government issued on Monday a White Paper containing numerous charges of Nazi tortures in flicted upon occupants of concentration camps in the Reich. Another flood of stories appeared of German troop concentrations for the alleged pur pose of invading neutrals, Holland being the sup posed victim in this case. Sensible steps by the Netherlander® to prevent any infringement of their sovereignty were portrayed as indications that a German assault is about to begin. More to the point than vague and tendencious reports of pos sible military strategy were indications that both sides are tightening their belts for a long conflict. Stringent restrictions on food and clothing con sumption long have been effective in the Reich. It was announced in London, Wednesday, that butter and bacon will be rationed in the United Kingdom, beginning Dec. 15, and a storm of protest quickly developed. In the diplomatic sphere two incidents of im portance stand out, and both suggest that the larger European neutrals have every intention of avoiding participation in the war between the Allies and Nazi Germany. Premier Benito Mussolini effected on Tuesday a sweeping change in his Italian Cabi net, and it was generally agreed in European chan celleries that the intent was to strengthen the peace party in fascist Italy. Official statements in Rome were to the effect that the changes merely repre sented the usual variations of leadership, to give men of equal ability chances at the highest tasks. Berlin saw no significance in the Cabinet changes, while London proclaimed them as evidence that Volume 149 ONE HUNDRED — The Commercial & Financial Chronicle — YE A R S OLD 2859 SALUTING AN ACHIEVEMENT A hundred years’ success in the publishing field is indeed a splendid accomplishment. C hronicle We extend to the C o m m e r c ia l & F in a n c ia l our heartiest congratulations, and our best wishes for continued success in the century to come. THE ATLANTIC REFINING Founded in 1870, The Atlantic Refining Company has been an important factor in the petroleum industry ever since. Atlantic exported the first cargo of pe troleum products ever to leave the United States. It established the world’s first Italy has no intention of fighting for its ally on the northern end of the once-famous Rome-Berlin axis. In Moscow Premier and Foreign Minister V. M. Molotoff outlined Russian foreign policy, Tuesday, 'before an extraordinary session of the Supreme Soviet, in which he made it fairly clear that Russia intends to maintain a benevolent neu trality toward Germany. M. Molotoff berated Great Britain and France for carrying on an “ im perialist” war against Germany for preservation of their vast empires. When he reported to the House of Commons in London, Thursday, Prime Minister Neville Chamberlain found the Russian attitude quite comforting, since it appears to mean a lack of military aid to Germany. Mr. Chamberlain asserted that the speech must have occasioned dis appointment in the Reich, and he refused to become disturbed over “the flights of fancy in which M. Molotoff indulged when describing the aims of the Allies.” Eastern Europe NTENSIVE diplomatic activity was continued throughout Eastern Europe, this week, in the endeavor to achieve the new arrangements and new balances for which the preoccupation of Great Britain, France and Germany with their hostilities provides an opportunity. The problem of RussoFinnish relations remained unsettled, notwithstand ing the suggestion by President Roosevelt some weeks ago that Moscow treat the small State kindly. Mr. Roosevelt was rebuked Tuesday by Premier and Foreign Minister V. M. Molotoff, and first impres sions of the incident make it doubtful whether any I COMPANY modern service station. Today it oper ates one of America’s largest tanker fleets, including the world’s three largest welded ships. It has refineries in Pennsylvania and Texas, and 16,000 Dealers from New England to Florida. real aid was extended to the Helsingfors regime bv the United States Government. In a general dis cussion of Russian foreign policy, M. Molotoff made clear the desire of his country to remain neutral in the Western European conflict, while favoring Germany at least in a propagandists sense. Italy Felicitations from Richard W. Lawrence, President of the Chamber of Commerce of the State of New York And now another fine American institution— “ The Commercial and Financial Chronicle” — joins the Century-old Club! The 171-year-old Cham ber of Commerce of the State of New York, of which I have the honor to be President, extends its heartiest birth day congratulations and good wishes to a publication which is outstanding in its field and has the unique and en viable distinction of being without a competitor in its particular sphere of activity. True to its name, this publi cation has chronicled with painstaking fidelity the hap penings and events which, taken altogether, form the history of banking, invest ment and financing in the United States during the last hundred years. It has rendered service of a high order and deservedly won world-wide recognition. May its influence grow and its second century be filled with even greater accom plishment and reward than its first. ONE HUNDRED T h e — 2860 Com m ercial & Financial C hronicle — YE A R S OLD Nov. 4, 1939 MORE THAN 50 YEARS OF PROGRESS PRODUCING — TRANSPORTING — REFINING — MARKETING THE OHIO OIL COMPANY INCORPORATED G en era l O ffices — FINDLAY, OHIO exchanged diplomatic notes with Greece, Thursday, which suggest that Rome intends not only to hold aloof from the conflict but also to influence Balkan nations to a neutral attitude. The delicate problem of Rumania was argued endlessly, for it holds per haps the most immediate threat to the peace of the Balkans. German nationals were withdrawn stead ily from the Baltic States, and on Thursday it was indicated that Reich subjects in Turkey also had been ordered to prepare for return to the homeland. Russian policy, as delineated on Tuesday by M. Molotoff before a special session of the Supreme Soviet, easily overshadowed all other immediate E. F. Connelly, President, In vestm en t Bankers Association of America, Tele graphs Congratulations to the Chron icle E . F. C o n n e lly One hundred years of serv ice devoted by the Chronicle to the financial and commer cial interests of the country marks a real milestone in the fin a n c ia l h isto r y of th e United States. The founders of the Chronicle and those who have so ably carried on and maintained its high standards have had and are entitled to the respect and confidence of all of us who have read the Chronicle for most of our business lives. Congratulations and best wishes. occurrences in Eastern Turope. The Soviet spokes man aligned his country emphatically on the side of peace, thus shattering the notions of some ob servers who predicted military aid to the Reich. But Russo-German relations are being placed on an increasingly solid and friendly basis, M. Molotoff declared, and he hinted that material aid to Berlin might be extended on a substantial scale, com mercially. He accused Great Britain and France of waging an ideological war against Hitlerism and asserted that the conflict really amounts to an “ im perialistic” war for the preservation o f the British and French colonial empires. M. Molotoff stated that he could not understand the refusal of Fin land to enter a “mutual assistance” pact with Rus sia similar to those already made by Moscow with the Latvian, Estonian and Lithuanian Govern ments. No mention was made by the Russian official of the Balkan States, and the impression of neutral observers thus was deepened that the understanding between Berlin and Moscow allo cates all the Baltic countries to Russia as a sphere of influence, and all the Balkan States to a similar subservience to the Reich. Turkey was accused of having entered the “ orbit of war” when the pact with Great Britain and France was signed by the Ankara regime. The Supreme Soviet cheered the statements dutifully and on Wednesday voted to include within the Soviet Union the White Russian and Ukrainian areas of former Poland. Russian negotiations with the special negotiators of Finland dragged along, throughout the week, and only partial disclosures were made of the substance of the conversations. Finland was admittedly pre- Volume 149 ONE HUNDRED — ... T h e Com m ercial & Financial C hronicle — YE A R S OLD 2861 THEY SOUGHT OIL ONLY TO LIGHT THEIR LAMPS but they Pioneered a “ Nation-on- W heels ” cried Drake, when his ^ drill struck oil near Titusville, Penn sylvania, in 1859. W O O D ’S G O L D ! ” And, indeed, this thick black petroleum that welled from the earth proved to be a gift of the gods to struggling men. For it lit their lamps, and made them candles, and greased the wheels of their covered wagons. Among those hardy oil pioneers were the men who founded what is now Tide Water Associated Oil Company. They were the men who had the honor of building the world’s first long distance pipe-line. The Tide Water line that carried, and still car ries, the “ liquid gold” from Pennsylvania’s richest oil fields to the great Tide Water refinery on the East Coast. But the industry itself never guessed its own future, until, in 1877, a man named Nicholas A. Otto invented a “ petrol engine’’ . . . the forerunner of your modern motor car. Then came the first “ horseless” car riage. And in a brief forty years we find a “ Nation-on-Wheels” ...o v e r 25,000,000 cars covering the country’s highways. But with the rapid increase in number, the motor car likewise increased in speed and in operating temperatures. Year after year its lubricating problem becomes more a c u te ... and year after year Tide Water Associated Oil Company meets the situa tion with V ee d o l...th e motor oil that is made 100% from that richest of Pennsyl vania crudes. As with Veedol, so with all other Tide Water Associated Oil Company’s products. All are refined to give the utmost in service and economy in their specific fields. To those interested in either using or selling automotive or industrial lubricants, we in vite their inquiry. Tide Water Associated Oil Company NEW YORK • SAN FRANCISCO • TULSA M akers o f T y d o l F ly in g “ A ” G a s o lin e . . . A s s o cia te d F ly in g " A ” G a s o lin e . . . V e e d o l 100% P e n n s y lv a n ia M o to r O ils . . . V e e d o l G rea ses . . . a n d T y c o l a n d A v o n O ils a n d G reases fo r e ve ry in d u s t r ia l p u r p o s e . Copyright 1939 by Tide Water Associated Oil Company pared to make some concessions to the Russians, who plainly desire to establish themselves firmly on the Baltic Sea, before the opportunity presented by the Western European war vanishes. Special rights in Finland, such as those already exacted from other Baltic countries, were said to be the aim of Moscow. Since these “ rights” of military occupa tion make the smaller countries virtual Russian satrapies, Finland continued to interpose objec tions. After consulting at Helsingfors, the Finnish representatives again journeyed to Moscow, Thurs day, where they were kept waiting while the Rus sian leaders conducted the sessions of the Supreme Soviet. It is reported that Russian demands on Finland do not include the right to establish bases on the Aland Islands, in the Baltic, and if these reports are substantiated they would mean that Moscow has no intention of threatening Sweden and Norway. These Scandinavian countries neverthe less remained alert and anxious, for it is now plain that Soviet expansionism differs in no important sense from the “ imperialism” which the Russians declare is the mainspring of capitalistic foreign policy. Balkan unrest relates, for the moment, chiefly to demands by neighboring countries for the return by Rumania of territory alloted to that country in the World War settlements, or seized by it after: wards. Bulgarian claims upon the Dobrudja were pressed diplomatically, it appears, and King Carol conferred at length with his Ministers to Bulgaria, Turkey, Greece and Yugoslavia, in the endeavor to prevent formal demands. The fear prevailed for a time that M. Molotoff might throw Russian influ ence behind Bulgaria, but the lack of any reference to such problems in the speech of the Moscow ONE HUNDRED 2862 — The Commercial & Financial Chronicle — YE A R S OLD Nov. 4, 1939 CONGRATULATIONS! We join today with the business world of America in felicitating the Commercial and Financial Chronicle upon one hundred years of splendid service to the country and particularly to the nation’s investors and its corporate enterprise. There is available no more complete and revealing story of the development and distribution of the country’s vast resources than that which has been told, from week to week for a century, in the columns of the Commercial and Financial Chronicle. Its files are a saga of the daring and ingenuity of American business. Long may it continue to record the history of free enterprise in this great nation. P L Y M O U T H O IL C O M P A N Y General Offices—Benedum-Trees Building PITTSBURGH, PA. spokesman occasioned relief. The Turkish Parlia ment assembled on Thursday and heard a defense by President Ismet Inonu of the pacts with Great Britain and France, which were said to be directed against no other country and intended solely to pre serve Turkish rights and neutrality. Relations between Italy and Greece were clarified in an ex change of letters, officially announced on Thurs- day at Rome. In the Italian capital the notes were viewed as equivalent to a pact of friendship, and it was generally realized in Europe that Italy thus took a long step toward its aim of a sphere of influ ence in the Balkans. The views entertained at Rome are reported to contemplate a territorial ad justment whereunder Rumania might satisfy some of the Bulgarian and Hungarian demands. Discount Rates of Foreign Central Banks Shoes Manufactured by Machinery The New York “ Evening Post” gives the following description of the manner of mak ing shoes by a machine, owned by Mr. Ruggles, of 60 Gold Street, in this city: The sole leather is first pressed between wooden rollers, which makes it extremely firm and compact— much more so than hammering can do. It is then placed under a cutting machine which at one operation cuts it into the proper shape. Meantime, another ma chine is busy making steel wire into screws of about three feet in length, all of which is done with surprising celerity. A fourth machine punches the soles with holes, in serts the screw, and cuts it off at the proper length. All that is then necessary is to rivet the screws by a few blows with a hammer on an anvil. The soles manufactured in this way are superior to the Napoleon, inasmuch as the rivets adhere better, and the leather is rendered more compact. They are pro duced with infinitely less labor and can be afforded about 50% cheaper. HUNT’S MERCHANTS’ MAGAZINE, December, 1843 HERE have been no changes during the week in the discount rates of any of the foreign central banks. Present rates at the leading centers are shown in the table which follows: Country A rgen tina.. Batavia____ B elgium ___ Bulgaria___ Canada____ C h ile______ Colom bia . . Czechoslovakia____ D anzig____ Denmark . . Eire. _____ England___ Estonia____ Finland____ F ran ce____ Germany . . Greece_____ Rate in Effect Nov. 3 Date Established 3 4 M ar. July July Aug. M ar. D ec. July 3 4 5H 3 2 W 4 2 4 6 Jan. 1 1936 Jan. 2 1937 O ct. 9 1939 June 30 1932 O ct. 26 1939 O ct. 1 1935 D e c. 3 1934 Jan. 2 1939 S e p t.22 1932 Jan. 419 37 3H 4 2H 6 1 1 6 15 11 16 18 1936 1935 1939 1935 1935 1936 1933 Pre vious Rate _ 3 7 4 5 3H 5 4>* 3^ 3 5 2H 5 7 Country H ollan d ___ Hungary___ India............ I ta ly ______ Japan_____ L ithuan ia.. M o r o cc o ___ N orw ay___ P ola n d ____ P ortugal___ Rumania . . SouthAirica Spain______ Sweden____ Switzerland Y ugoslavia. Rate in Effect N ov. 3 3 4 3 4H 3.29 3 6 6H 4X 4H 4 3M 3H 5 2H 1H 5 Date Established A u g. 29 Aug. 29 N o v. 28 M ay 18 A pr. 6 Jan. 14 July 15 M ay 28 S e p t.21 D ec. 17 A ug. 11 M ay 5 M ay 15 July 15 D ec. 1 N o v . 25 Feb. 1 1939 1935 1935 1936 1936 1937 1939 1935 1939 1937 1937 1938 1933 1935 1933 1936 1935 Pre vious Rate 2 3^ 5 3.65 4 7 4V* 3H 5 4H 4H 4H 5 3 2 6H Foreign Money Rates N LONDON open market discount rates for short bills on Friday are lks% , as against 1 ^ on Friday of last week, and 1 3-16% for three-months’ bill, as against 1 3-16% on Friday of last week. Money on call at London on Friday was % -l% . At Paris the open market rate is nominal at 2bt% and in Switzerland at 1%. Volume 149 ONE H U N D R E DT h e - Com m ercial & Financial Chronicle — Congratulations to oTlrr Y E A R S OLD 2863 < jEinanrial , on its 100th Birthday **€ fjrrim > irJh PROCTER & GAMBLE CINCINNATI, OHIO Makers of CAMAY IVORY SOAP OXYDOL IVORY FLAKES LAVA SOAP IVORY SNOW DREFT GUEST IVORY CRISCO CHIPSO P & G WHITE NAPHTHA SOAP Bank of England Statement HE statement for the week ended Nov. 1 shows an expansion of £829,000 in note circulation, the first increase in over a month, and evidently associated with month-end requirements. As the circulation rise was attended by a small loss of £17,860 in bullion holdings, reserves fell off a total of £817,000. Circulation now amounts to £527,966,000 compared with £183,950,811 a year ago. The proportion of reserves to deposit liabilities dropped to 31.5% from 31.9% last week, and compares with 27.3% a year ago. Public deposits fell off £2,031,000 while other deposits gained £1,790,822. The latter consists of bankers accounts which decreased £1,958,899 and other accounts which increased £3,719,721. Government securities registered a decline of £705,000 while other securities rose £1,328,386. Of the latter amount, £993,896 represented an addition to discounts and advances and £331,190 to securities. The Bank rate remains at 2%. Below we furnish the different items with comparisons for previous years: T B A N K O F E N G L A N D ’ S C O M P A R A T IV E S T A T E M E N T Nov. 1, 1939 £ Circulation__________ Public deposits_____ Other deposits______ Bankers’ accounts. Other accounts___ Governm ’t securities Other securities_____ D isct. & advances . Securities_________ Reserve notes & coin Coin and bullion____ Prop, o f res. to lia b .. Bank rate___________ G old val. per fine oz_ N ov. 2, 1938 £ 483,950,844 14,132,887 145,918,245 109,481,764 36,436,481 102,386,164 31,593,387 10,449,015 21,144,372 43,770,596 327,722,440 27.3% 2% 2% 84s. 11 Hd. 527,966,000 10.540.000 157,794,393 114,802,301 42,992,092 105,336,164 27,666,648 5,633,403 22,033.245 53.089.000 1,054,99? 31.5% 168s. N ov. 3, 1937 N ov. 4, 1936 £ 447,111,863 27,201,594 127,149,173 85,340,417 41,808,756 81,963,337 27,623,583 7,654,874 19,968,709 62,492,566 249,604,429 40.40% 2% 2% 84s. 11 H d. 84s. l l ^ d . £ 485,908,678 30,284,690 126,067,569 89,435,199 36,632,370 103,413,165 28,570,975 7,820,119 20,750,856 42,083,062 327,991,740 26.9% Nov. 6, 1935 £ 402,157,517 21,008,522 126,200,009 89,559,105 36,640,904 87,214,999 23,478,841 10,986,320 12,492,521 54,249,689 196,407,206 36.85% 2% 84s. 11 H d. Robert M. Hanes, President of American Bankers Association Congratulates the Chronicle Banking and business join in extending to the Commercial and Financial Chronicle their con gratulations on its one hundredth anniversary of publication. The faithful recording of news and the in terpretation of events signif icant to investment, finance, and commerce which have characterized its century of public service command our respect and call for our best wishes. Through the periods of American prosperity and de pression alike“ The Chronicle has continued to bring arti cles and comments worthy of the consideration of every banker and businessman. Its Copyright by Harris & Ewing issues have approached busi R obert M H . anes ness problems editorially in the light of reality, showing neither fear nor favor, and with the true spirit of journalism— to present fact, tempered with reason, usefully, con cisely and adequately. The library of the American Bankers Associa tion contains not only the current editions of the Chronicle, but also many files of its older issues. Both have proved highly valuable to our work. It is our hope that throughout its second cen tury, the Chronicle will continue to expand the sphere of its influence and the value of its service. ONE HUNDRED 2864 — The Commercial & Financial Chronicle — YE A R S OLD Nov. 4, 1939 SOLVENTS* CHEMICALS FINE ROSSVILLE ALCOHOLS Co m m e r c i a l 17 E A S T PLANTS: S 42nd o l v e n Co t s STREET, NEW r p o r a t i o n YORK, N. Y. T E R R E H A U T E , IN D .; P E O R IA , I L L .; W E S T W E G O , L A .; H A R V E Y , L A .; S T E R L IN G T O N , L A .; A G N E W , C A L I F .; P H IL A D E L P H IA , P A . B A N K O F F R A N C E ’S C O M P A R A T IV E S T A T E M E N T Bank of France Statement HE statement for the week ended Oct. 26 showed an increase in note circulation of 140,000,000 francs, which raised the total outstand ing to 144,379,000,000 francs. Notes in circulation a year ago totaled 110,446,486,430 francs and the year before 91,336,121,885 francs. The Bank’s gold holdings showed a slight increase of 8,601 francs, while the items of French commercial bills dis counted, bills bought abroad, advances against se curities and creditor current accounts showed de creases of 471,000,000 francs, 21,000,000 francs, 27,000,000 francs and 1,630,000,000 francs respec tively. Gold holdings now total 97,266,047,756 francs, compared with the pre-devalued holding of 55,808,328,520 francs a year ago. The proportion of gold on hand to sight liabilities rose to 60.35%, com pared with 40.47% last year. A comparison of the different items for three years is furnished below: T Changes for W eek Oct. 26. 1939 Oct. 27, 1938 Oct. 28, 1937 Francs Francs Francs Francs + 8,601 97,266,047,756 55,808,328,520 55,805,022,187 *39,391,821 18,332,673 11,951,335 Credit bals. abroad, a French commercial bills d iscou n ted., — 471,000,000 — 21,000,000 b Bills bought abr’ d — 27,000,000 A d v. against securs. N ote circu la tio n ___ + 140,000,000 Credit current accts. — 1,630,000,000 c Tem p. advs. with N o change out int. to State . . Propor’n of gold on hand to sight lia b . + 0.55% 12.871.000. 00015,926,209,656 10,620,336,602 85,000,000 750,595,224 810,515,291 3,576,000,000 3,865,476,335 3,710,408,274 144379000,000 110446 486,430 91,336,121,885 16.703.000. 000 27,469,016,296 17,326,333,073 25,472,990,139 48,133,649,244 26,918,460,497 60.35% 40.47% 51.36% * Figures as o f O ct. 12, 1939. a Includes bills purchased in France, b Includes bills discounted abroad, c In the process o f revaluing the Bank’s gold under the decree o f N o v . 13, 1938, the three entries on the Bank’s books representing tem porary advances to the State were wiped out and the unsatisfied balance o f such loans was transferred to a new entry o f non-interest-bearing loans to the S ta te . Revaluation o f the Bank’s gold (at 27.5 m g. gold 0.9 fine per franc) under the decree o f N o v . 13, 1938, was effected in the statement o f N o v . 17, 1938; prior to that date and from June 20, 1937, valuation had been at the rate o f 43 m g. gold 0 .9 fine per franc; previous to that tim e and subsequent to Sept. 26, 1936, the value was 49 m g. per franc, and before Sept. 26, 1936, there were 65.5 m g. o f gold to the fra n c. Bank of Germany Statement HE statement for the last quarter of October showed an increase in note circulation of 617,000,000 marks, which raised the total outstanding to CURRENT NOTICE MUNICIPAL, CORPORATION AND INSTITUTIONAL SECURITIES Inquiries Invited Ed w a r d D. J ones & C ompany S t. L o u is S to ck E x c h a n g e M em b ers C h ic a g o S to ck E x c h a n g e N . Y . C u rb E x ch a n g e A s s o c ia te STOCKS AND BONDS BOATMEN’S BANK BUILDING ST. LOUIS C E n tra l 7600 — The investment advisory depart ment of Amott, Baker & Co., Inc., 150 Broadway, New York City, has pre pared for distribution a pamphlet en titled “ War and Investment Policy” , which contains suggestions on shaping investment programs to war-time trends. — Arthur Thompson & Co., 52 Wil liam St., New York City specialists in U. S. Government Securities, announce that Reginald H. Sturgis, formerly with Goldman Sachs & Co., is now associated with their firm. — George J. Klein, formerly with Lehman Bros., is now associated with A. L. Stamm & Co. Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD — — 2865 International Shoe Co. ST. LOUIS NEW YORK BOSTON 10,819,000,000 marks. Notes in circulation a year ago aggregated 7 ,753,896,000 marks and the year before 5 ,2 7 5,262,000 marks. The Bank’s gold hold ings fell off 277,000 marks, while bills of exchange and checks gained 172,100,000 marks. Gold holdings now total 76,869,000 marks, compared with 7 0 ,7 7 3 ,000 marks a year ago. The proportion of gold to note circulation is now at 0 .7 1 % ; a year ago it was 0 .9 8 % and the year before 1 .4 3 % . Below we furnish the different items with comparisons for previous years: REICHSBANK’S COMPARATIVE STATEMENT Changes for Week Oct. 31, 1939 Oct. 31, 1938 Oct. 30, 1937 Reichsmarks Assets— Reichsmarks Reichsmarks Reichsmarks 70.081.000 70.773.000 Gold and bullion____ 76,869,000 — 277,000 10.605.000 Of which dep. abr’d . 20.055.000 Res. in for. currency.. 5,617,000 5,703,000 Bills of exch. & checks. + 172,100,000 9,368,200,000 7,543,000,000 5.584.921.000 a237,324,000 105.631.000 120.549.000 Silver and other coin .. 23.007.000 a20,892,000 Advances___________ 43.543.000 Investments_________ a l ,348,692,000 847.597.000 397.447.000 Other assets_________ a l ,397,066,000 1.254.122.000 723.694.000 Liabilities— Notes in circulation_ _ + 617,000,000 10,819,000,000 7.753.896.000 5.275.262.000 a l,394,438,000 1.040.455.000 711.480.000 Oth.dally matur.oblig. a569,006,000 400.026.000 316.219.000 Other liabilities.......... Propor’n of gold & for. 1.07% 0.71% ______0.98% curr. to note circul’n 1.43% * “ Reserves in foreign currency” and "Deposits abroad” are included in “ Gold coin and buUlon.” a Figures as of Oct. 7, 1939. CURRENT U N IT E D S T A T E S T R E A S U R Y financing was the only point of interest in the New York money market this week, as all rates were un changed in the ordinary classes of paper and hardly any business was done. The Treasury sold on Mon day $156,000,000 91-day discount bills, awards being at an average of 0 .0 2 8 % , computed on an annual bank discount basis. On the same day the Treas ury offered $250,000,000 Reconstruction Finance Corporation 1 % notes due July 1, 1942, applica tions amounting to $3,643,000,000. Another issue of $100,000,000 91-day bills was sold yesterday at an average of 0.0 1 7 % discount. Bankers’ bill and com mercial paper trading was slow, with all quotations merely carried over from previous weeks and months. Call loans on the New York Stock E x change held at 1 % for all transactions, and time loans again were 1 % ,% for maturities to 90 days and 1 % % for four to six months’ datings. N O T IC E —Robert Proddow, Jr. has been admitted to partnership in Parker, McElroy & Co., Member of the New York Stock Exchange. — S. Bleichroder New York, Inc. an nounce the removal of their offices to the forty-second floor of 30 Broad St., New York City. —Bristol & Willett, 115 Broadway, New York City, has prepared a brief summary on Lawrence Portland Cement Co. —Announcement was made of the ad mission of S. Watson Maxwell, Jr. to general partnership in the firm of J. F. Reilly & Co. New York Money Market St. Louis Listed and Unlisted Markets N ewhard , C ook & Co. MEMBERS NEW Y O R K STOCK EXCHANGE St. Louis Stock Exchange New Y ork Curb Exchange (Associate) FOURTH & O L IV E ST. LOUIS New York Correspondent & Wire System— Smith, Barney & Co. ONE HUNDRED—The Commercial & Financial Chronicle YEARS OLD 2866 — CURRENT BONDS MUNICIPAL CORPORATION PREFERRED STOCKS Trading Department specializing in Unlisted Securities Nov. 4, 1939 N O T IC E — The combination of a generally skeptical view of the present level of activity, a relatively moderate com modity price level, fairly reasonable finished goods prices, and the recent subnormal level of inventories is pointed to by the New York Stock Exchange firm of Spencer Trask & Co., 25 Broad St., New York City, as warranting the belief that business will continue to be good well into 1940. “ The war” , writes the firm in its new Business Survey, “ seems to have largely rectified the four weaknesses existent in our domestic economy a few months ago, namely, (1) the lethargy of the capital goods industries; (2) a serious malad justment between finished goods and commodity prices; (3) the gradual erosion of farm income; and (4) the antagonism between Washington and industry. “ With business virtually certain to continue at a very high rate throughout the rest of this year, the question be comes one of what to expect in the first quarter of 1940. Two factors that might cause alarm at present appear to be a difficult labor situation and a tendency to build up inventory. “ Granted that the labor picture is serious, it appears that the C. I. O. movement really passed its peak in 1937 and that, though there may be sporadic strikes, the effect should not be to pre vent a continued high level of business activity. As for inventory accumula tion, consumers’ goods inventories were subnormal until recently, and six weeks of accumulation have probably not pushed them far above a normal turn over figure. “ It seems logical to expect” , says the company, “ that accumulation of stocks in November and December will lead to a drop-off in first quarter business in dices . The important point is, however, that the probable first quarter decline will likely be from record levels to a point where it is still very satisfactory without actually crowding productive capacity as it is at the moment.” PrEscattlW right, SniderC a. INVESTMENT BANKERS 918 B a ltim o r e A v e n u e K a n s a s C ity , M o. AT&T— KC262 Vi. 3143 D istributors Underwriters C O R P O R A T E a n d M U N IC IP A L S E C U R IT IE S Stern Brothers & Co. 1 0 0 9 -1 5 B a l t i m o r e A v e . KANSAS C IT Y , MO. ST. JOSEPH, MO. OMAHA, NEB. I. M. S IM O N & C O . Business Established 1874 Enquiries Invited on all Mid-Western and Southern Securities MEMBERS New York Stock Exchange New York Curb (Associate) St. Louis Stock Exchange Chicago Board of Trade Chicago Stock Exchange 315 N o rth F o u r th S tr e e t ST. L O U IS , MO. Telephone Central 3350 —Buckley Bros., members Phila delphia Stock Exchange announces that A. L. Hutchinson has become associated with them in their trading department. — R. E. Swart & Co., Inc., announce that Paul G. Cunningham has become associated with the sales organization fo their Pittsburgh office. A. S. Huyck and Company Incorporated Municipal Bonds 100 West Monroe Street, Chicago T e le p h o n e F R A n k lin 1435 STANLEY GATES & CO. Investment Securities FIRST NATIONAL BANK BUILDING ST. P A U L , M IN N . — New Canadian bond financing for the month of October totaled $212,313,181 and consisted principally of an issue of $200,000,000 of 2% notes of the Dominion of Canada due Oct. 16, 1941, the first sold since the war started, and an issue of $8,614,000 Province of Ontario 3J4% bonds due Nov. 1, 1947, according to figures compiled by Wood, Gundy & Co., Ltd. In addition, two issues of treasury bills were sold, one for $30,000,000 at a rate of .880% and the other for $25,000,000 at a rate of .858%. In the same month last year, excluding treasury bills, Canadian bond financing aggregated $51,505,658 and in 1937 to $627,048. In the first 10 months of this year, Canadian government and municipal bond financing, exclusive of $520,000,000 of treasury bills, amounted to $563,820,913, as compared with total of $362,750,487 and $374,808,635 in the similar periods of 1938 and 1937 respect ively, according to the compilation. Of the 1939 total, $414,495,011 was for refunding and $149,325,902 for new money. Corporate financing for the first 10 months of 1939 totaled $227,378,500, of which $212,377,500 was for refunding purposes and $15,001,000 for new money. This 10-month total, the largest in any of the past five years, compares with $56,110,500 in 1938 and $125,356,100 in 1937. ONE HUNDRED— The Commercial & Financial Chronicle YEARS OLD Volume 149 2867 — i 1 Gher & Co. A. SOUND FOR SECURITIES N ew Y ork . INVESTMENT C h icago I i I New Y ork Money Rates E A L I N G in detail w ith call loan rates on the S tock E xchan ge fro m d a y t o d a y , 1 % was the ru lin g q u ota tion all th rou g h the w eek fo r b o th new loans and renew als. T h e m a rk et fo r tim e m o n e y continues quiet. R a tes co n tin u e d n om inal at % up to 90 days a n d 1 3 4 % fo r fo u r to six m o n th s’ m aturities. T h e m ark et fo r prim e com m ercia l paper has been quiet this w eek . T h e d em a n d has been fair b u t high class paper con tin u es in lim ited su p p ly . D 134 R u lin g rates are % % @ 1 % f ° r ah m aturities. H E m arket fo r prim e b a n k ers’ a ccep ta n ces has been sligh tly stron ger this w eek. Prim e bills have been in fair s u p p ly a n d the d em an d has im p ro v e d . T h ere has been n o change in rates. D ea lers’ rates as re p o rte d b y the F ederal R eserve B a n k o f N ew Y o r k fo r bills u p t o a n d in clu d in g 90 days are 3 4 % b id an d 7 -1 6 % a sked; fo r bills ru n n ing fo r fo u r m on th s, 9 -1 6 % b id and asked; fo r five and six m on th s, 3 4 % b id and 9 -1 6 % asked. T h e bill b u y in g rate o f the N ew Y o r k R eserve B a n k is fo r bills running fro m 1 to 90 d ays. T 34% 34% D iscount Rates of the Federal Reserve Banks T n o changes this w eek in the o f th e F ederal R eserve ban k s; G o v e rn m e n t ob ligation s are t o the ta b le . T h e fo llo w in g is Breckinridge and DISCOUNT RATES OF FEDERAL RESERVE BANKS Rate in Efjecl on biov. 3 Federal Reserve Bank Boston______ . .... New Y o r k .. . . Philadelphia______ ___ Cleveland___ Richmond____ Atlanta______ Chicago________ . . . . . St. Louis_______ . _____ Minneapolis_____ _ . . ._ Kansas City. . . . . . Dallas_____ _ _ _ San Francisco_ _ _ _ 1 1 134 IX ix *1X * iy 2 *1X IX *1X *1X IX Date Established Sept. 1, Aug. 27, Sept. 4, May 11, Aug. 27, Aug. 21, Aug. 21, Sept. 2, Aug. 24, Sept. 3, Aug. 31, Sept. 3, Previous Rate 1939 1937 1937 1935 1937 1937 1937 1937 1937 1937 1937 1937 i-x IX 2 2 2 2 2 2 2 2 2 2 * Advances on Government obligations bear a rate of 1% , effective Sept. 1, 1939, Chicago; Sept. 16, 1939, Atlanta, Kansas City and Dallas; Sept. 21, 1939, St. Louis. Bankers’ Acceptances H E R E h ave been red iscou n t rates recen t advan ces on sh ow n in the fo o tn o te the schedule o f rates n ow in e ffe c t fo r the variou s classes o f p aper at th e d ifferen t R eserve ban k s: Company Chicago’s Oldest Investm ent Counsel Firm Course o f Sterling Exchange T E R L I N G exch an ge is ch a ra cterized , as since the o u tb re a k o f th e E u rop ea n w a r, b y m eager v olu m e o f business a n d n arrow price changes. T h e la ck o f sig n ifican t flu ctu a tion s in rates is con sid ered as due la rg ely to o fficia l co n tro l o f exch an ge and com m erce in L o n d o n . T h e range this w eek in the N e w Y o r k free m ark et has been b etw een $3.9834 and $4.00 fo r b a n k ers’ sight b ills, co m p a re d w ith a range o f b etw een $3.9 93 4 and $ 4.02 last w eek . T h e range fo r cable transfers has been b etw een $3.9834 a n d $ 4.0034; co m p a re d w ith a range o f betw een $3.9934 a n d $4.0 23 4 a w eek ago. T h e o fficia l ex ch an ge rates fix e d b y the B an k o f E n g la n d have sh ow n n o change in the past few w eeks: N e w Y o r k cables 4 .0 2 -4 .0 4; Paris checks 176-177; A m sterd a m , 7 .5 2 -7 .5 8; C a n a d a , 4 .4 3-4.47. MUNICIPAL PUBLIC UTILITY CORPORATION BONDS 134 S O U T H LA SALLE STREET CHICAGO A.C.ALLYNandCOMPANY FRANK P. BRECKINRIDGE, President Correspondent: Bertil O h lin , Stockholm, Sweden In corp ora ted Chicago New York Boston Philadelphia Kansas C ity Milwaukee Omaha ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD 2868 — — H. M. Byllesby and C ompany F o u n d e d 1902 Nov. 4, 1939 H. B. L a R occa & Co. IN C O R P O R A T E D Underwriters and Distributors of Investment Securities 135 South La Salle Street, Chicago N ew Y o r k P h ila d e lp h ia B erlin was n ot q u o te d . P it ts b u r g h M UNICIPAL BONDS 29 SOUTH LA SALLE S TR EET, CHICAGO M in n e a p o lis L ire are u n o ffic ia lly q u o te d in L o n d o n at 7 8 .5 0 . T h e fo llo w in g o fficia l rates have been fix e d fo r o n e-m on th d eliv e ry in th e fo rw a rd foreign exch an ge m a rk et: N ew Y o r k % cen t p rem iu m t o p a rity ; Paris p a rity fo r b o th sellers a n d b u y ers; A m sterd a m \]/2 p oin ts p rem iu m t o p a rity ; Brussels p a rity t o 4 p oin ts d iscou n t; Z u rich 3 p oin ts p rem iu m t o p a rity . L ittle com m e n t o f im p orta n ce b earin g d ire ctly u p on th e foreig n ex ch an ge m arkets can be e x p e cte d u n til th e E u rop ea n co n flict en ds a n d exch an ge and oth er com m ercia l restriction s are re m o v e d . E v e r y w here su ch con trols are in fa c t b ein g tig h ten ed . A L o n d o n d isp a tch states th a t an in tim a tio n has been receiv ed b y the L o n d o n M e ta l E xch a n ge fr o m the B ritish B oa rd o f T ra d e th a t a fter careful ex a m in a tion o f th e situ a tion it has d e cid e d t o su sp en d all ex p o rt licenses fo r tin w h ich are at present in fo rc e . T h is decision w ill be g iv en im m ed ia te e ffe c t. T h e sus p en sion o f p u b lica tio n o f B ritish im p o rt a n d e x p o rt figures on b u llion w h ich o ccu rre d a few w eeks ago has been fo llo w e d b y su spen sion o f th e p u b lica tion o f all com m ercia l tra n sa ction s, w ith th e result th a t m ost trad e indices are n o longer a v aila b le. T h e m ark et ex p erien ced n o surprise w h en the F ed eral R eserv e B a n k at th e in stiga tion o f the U n ited States T re a su ry on O ct. 25 su sp en ded p u b li ca tion o f the F ed era l R eserve B o a r d ’s d a ily and w eek ly rep orts o n th e g o ld m o v e m e n t at th e P o rt o f N ew Y o r k . Channer Securities Company A lm o st im m e d ia te ly a fter th e F ed era l R eserve a ctio n cam e an a n n ou n cem en t fro m L o n d o n th a t th e G o v e rn m e n t o f In d ia has b a n n e d the im p o r t b y sea or lan d o f silver b u llio n , silver sh eets, a n d silver plates w h ich h a v e u n dergon e n o m a n u fa ctu rin g p ro cess su bseq u en t t o rollin g . A n e x c e p tio n to this rule is m ade in cases where a license has been g ran ted b y th e R eserve B a n k o f In d ia . T h e G o v e rn m en t o f In d ia has likew ise p ro h ib ite d the im p o r t or e x p o rt o f g old e x ce p t un der license. C o m p la in t is m o u n tin g in G reat B rita in against the “ co n tro litis” o f the w artim e b u re a u cra cy . O n O ct. 29 P a rlia m en t’s p rog ra m listed so m a n y criticism s for answ er b y th e G o v e rn m e n t th a t th e B ritish press called it “ grievan ce w e e k .” M em b ers o f P a rliam en t re p o rte d a barrage o f in d ig n a n t criticism fr o m bu si ness m en on the g rou n d th a t un n ecessa ry p osta l a n d ca ble cen sorsh ip delays im p eriled a h e a v y v olu m e o f e x p o rt business. T h e press in general t o o k u p th e cr y o f “ co n tro l th e c o n tr o ls .” It is th o u g h t th a t the criticism s m a y lead t o som e easin g o f th e restriction s a n d th u s result in im p ro v e m e n t in B ritish in ter n a tion al tra d e. N u m erou s business item s ou tsid e th e s trictly foreign exch an ge field p o in t t o th e increa sin g general con fid en ce in G reat B ritain w h ich , if m a in ta in ed , w ill e v e n tu a lly be re fle cte d in foreig n exch a n ge a n d foreig n trad e a c tiv ity . One su ch in d ica tio n is the recen t cu t m ade b y u nderw riters in w a r risk in su r ance ra tes. O ther in d ica tion s are seen in th e m ore W ebber,D arch & C ompany Investment Dealers— Underwriters Railroad — Public Utility— Industrial Municipal, and Municipal Securities County and School Bonds Middle Western Specialists in Securities of • 39 South La Salle Street CHICAGO Phone: Randolph 3900 ASSOCIATED GAS & ELECTRIC SYSTEM D ir e c t P r iv a te W ir e s — N e w Teletype: CGO 540 Y o rk , B o s to n , L o s A n g e le s 208 SOUTH LA SALLE STREET, CHICAGO Telephone Central 2188 Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD — W E. H u t t o n . E s t a b l is h e d I N 2869 — V E S T M E N T & Co m p a n y 1886 S E C U R I T I E S Members New York Stock Exchange and other Principal Exchanges O F F IC E S : C in c in n a ti N ew Y o rk B a lt im o r e D e tr o it L a n s in g spirited ton e o f tra d in g in m ost o f the L o n d o n m ark ets, especia lly in th e m o n e y m a rk et, the rise in g ilt-ed g ed securities a n d in s to ck exch an ge prices, and the g reatly im p r o v e d p osition o f the B a n k o f E n g la n d , w hose n ote circu la tion as o f O ct. 25 sh ow ed a re d u ction , the sixth su ccessive decline since the record circu lation o f £ 5 5 3 ,4 7 5 ,0 0 0 o n A u g . 24. T h e ra p id return o f notes to the B a n k sh ow ed th a t p u b lic a n x iety has been a lla y ed a n d was largely responsible fo r the re d u ctio n last w eek o f the B an k o f E n g la n d ’s rate fro m 3 % to 2 % , brin g in g the rate again to the low est level e v e r establish ed in L o n d o n . T h e L o n d o n “ F in an cia l N e w s” in d ex o f 30 in d u s trial stock s, b ased on J u ly 1, 1935 as 100, s to o d at 7 4.5 on O ct. 28, as against 6 6.9 a m on th earlier. R eu ters s to ck in d ex o f L o n d o n s to ck prices on O ct. 30 s to o d at 89.3 fo r ind u strials, co m p a re d w ith 88.1 on O ct. 17. T h e p ron ou n ce d stren gth o f th e last few w eeks in the g ilt-ed g ed stock s in L o n d o n has created a g o o d fou n d a tion on w h ich to start b u ild in g w ar loan plans. Since A u gu st th e w ar loan per cents h ave risen from 883^2 to 9 3 ^ ; 2 ^ per cen t C on sols have ad v a n ce d from 62 t o 683^; C o n so l 4s have a d v a n ced from 983^ t o 1023^. T h e con v ersion 33^s have sim ilarly im p ro v e d fro m 873^2 t o 9 2 ^ and the fu n d 1003^2 P h ila d e lp h ia B o sto n L e x in g to n C an a dian ex ch an ge fo llo w s th e tre n d apparen t since the estab lish m en t o f fix e d rates b y L o n d o n at the ou tb rea k o f th e w ar. H en ce C an a d ian funds con tin u e to rule at a d iscou n t in term s o f th e U n ited States d ollar. D u rin g th e past w eek M o n tre a l funds ra n ged b etw een a d iscou n t o f 1 0 ^ % a n d a dis cou n t o f 9 1 5 -1 6 % . A s n o te d in these colu m n s last w eek , th e Federal R eserve B a n k o f N e w Y o r k has d iscon tin u ed re p o rt ing the g o ld m o v e m e n t at th e P ort o f N e w Y o r k . T h e figures o f im p orts a n d ex p orts w h ich fo llo w are taken fro m the w e e k ly statem en t o f the U n ited States D e p a rtm e n t o f C om m erce and c o v e r the p eriod O ct. 21 t o 25, in clu siv e . T h e figures are for a p eriod sh orter th a n a w eek as the D e p a rtm en t has d e cid e d t o have its statem en t co v e r th e w eek ly p eriod e n d in g W e d n e sd a y hereafter (in stead of F rid a y as h e retofore) in ord er t o h ave it con form w ith the sta tem en t fo rm e r ly issu ed b y the R eserve B a n k . Future rep orts w ill be on th a t basis. GOLD E XPORTS A N D IM PORTS OCT. 21-OCT. 25, INCLUSIVE Im p o rts Ore and base bullion _ . Refined bullion and c o in .. Total _. _ _ E x p o r ts *$4,199,499 __ 11,243,173 $2,462 135 $15,442,672 $2,597 ... D e t a i l o f R e fin e d B u llio n a n d C o in S h ip m e n ts — Italy . . . United Kingdom____ __ _ _ Canada ____ .. ._ Venezuela . . . ___ British I n d i a .............. ...... . . Hongkong . Union of South Africa ____ _ _ Philippine Islands____ $1,464,622 6,160,047 121,739 188,449 752,898 468,576 2,086,842 in g 4 per cents fro m to 1043^. In the L o n d o n m o n e y m ark et this w eek there was a fair in q u iry w h ich was ea sily satisfied, w ith call m on ey against bills at 1 % d ow n to % % . B ill rates w ere as follow s: T w o -m o n th s bills 1 3 -1 6 % , th reem on th s bills 1 7 -3 2 % , fo u r-m on th s bills 1 9 -3 2 % , an d six-m on th s bills 1 9 -1 6 % . 135 * Chiefly $3,517,993 from Australia. Gold held under earmark at the Federal Reserve banks was reduced during the period Oct. 21-25, inclusive, by $31,198,000. W . H . Fillmore & Co. BENJ. D. BARTLETT & C . O Established 1901 MEMBERS Consultants On Corporate Investment 804 F ir s t N a tio n a l Bank C IN C IN N A T I B ld g . THE NEW YORK STOCK EXCHANGE THE CINCINNATI STOCK EXCHANGE NEW YORK CURB (Associate) 313 VINE ST., CINCINNATI ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD 2870 — — HAYDEN, MILLER 8t ESTABLISHED Nov. 4, 1939 COMPANY 1903 INVESTMENT SECURITIES UNION COMMERCE CLEVELAND, M E M B E R S C L E V E L A N D Referring to day-to-day rates sterling exchange in the New York free market on Saturday last was dull and slightly up from previous close. Bankers’ sight was $ 3 .9 9 @ $ 4 .0 0 ; cable transfers $ 3 .9 9 )4 @ 4 .0 0 3 4 On M onday sterling was easier in limited trading. The range was $ 3 .9 9 3 4 @ $ 3 .9 9 3 4 for bankers’ sight and $ 3 .9 9 2 4 @ $ 3 .9 9 2 4 for cable transfers. On Tues day exchange was fractionally firmer in limited trad ing. Bankers’ sight was $ 3 .9 9 3 4 @ $ 3 .9 9 2 4 i cable transfers $ 3 .9 9 3 4 @ $ 4 .0 0 3 4 On Wednesday the market continued restricted. The range was S3.9934 @ $ 4 .0 0 for bankers’ sight and $ 3 .9 9 J /£ @ $ 4 .0 0 ^ for cable transfers. On Thursday sterling was dull but steady. The range was $ 3 .9 9 ^ @ $ 4 .0 0 for bankers’ sight and $3.9924@ $4,003/8 f ° r cable transfers. On Friday the market continued narrow, with rates steady. The range was $ 3 .9 8 2 4 @ $ 3 .9 9 2 4 for bankers’ sight and $ 3 .9 8 3 4 @ $ 4 .0 0 for cable transfers. Closing quotations on Friday were $3.9824 for demand and $3.9934 for cable transfers. Commercial sight bills finished at $3.9724> 60-day bills at $3.9634 > 90-day bills at $3.9534 > documents for payment (60 days) at $3.96^4, and seven-day grain bills at $3.9724- Cotton and grain for payment closed at $ 3 .9734- Continental and Other Foreign Exchange R E N C H francs, which are steady in terms of sterling, have been ruling fractionally easier this week in terms of the United States dollar. This was determined largely by the somewhat sasier tone of sterling in the New York free market. On the whole fluctuations were narrow and were affected by even the slightest market sale or demand. F BUILDING OHIO S T O C K E X C H A N G E There has been no important change in the French fiscal situation since the beginning of the war. M . Jacques Rueff, Vice-Governor of the Bank of France, where he heads the new exchange office, said a few days ago: “ It is our firm desire and we have given a formal undertaking that exchange con trol shall be honest control. W e are anxious that its application shall not harm French credit and we are convinced it will n o t.” The system is based upon respect for acquired rights and the sanctity of contracts. Nothing ex cuses a debtor from lawful debts nor prevents a foreigner from withdrawing funds which had been accumulated here before the control was instituted. The French finance ministry has developed a policy of financing the war by short-term bonds of from 12 months to 3 years maturities. A national comittee of 24 members has been formed for the purpose of popularizing the bonds. This committee, known as the Grand Chancellery of the Legion of Honor, is drawn from representatives of finance, business, army, churches, law, press, and various scientific and literary academies. In addressing the committee a few days ago, Finance Minister Reynaud pointed out that French finances are in order and stronger than ever. He added that capital continues to flow into France since the war and exchange reserves are higher now than before the outbreak of hostilities, despite the huge expenditures which have been made abroad. He announced his intention to introduce a budget which,* apart from the military expenditure, will We Specialize in Underwriters and Distributors OHIO & SOUTHERN MUNICIPAL BONDS of Municipal and Corporate Securities Nelson . Brqwninc-&>Cq investm ent S ecu rities OTIS & CO. E s ta b lis h e d 1899 CLEVELAND New York Chicago Detroit Denver Cincinnati Columbus Toledo C A R E W T O W E R , C IN C IN N A T I Phone: Cherry 6422 C IN C IN N A T I Teletype: Cinn. 182 AKRON CLEVELAND DAYTON Volume 149 ONE HUNDRED—The Commercial & Financial Chronicle— YEARS OLD 2871 Ohio and Michigan EXCLUSIVELY MUNICIPALS Municipal Bonds BRAUN, B0SW 0RTH & CO. Stranahan,Harris &C pany om INC O RPO RATED Municipal Bonds NEW YO RK D E T R O IT TOLEDO CLEVELAN D C H IC A G O Toledo exceed 65,000,000,000 francs but which will be met out of revenues. On Oct. 18 and Oct. 24 and later, Polish, British, and French official sources asserted that all the gold of the Bank of Poland, amounting to 70 tons and valued at approximately £20,000,000 sterling, had been successfully removed from Warsaw before its fall and under the personal guidance of the former finance minister, Colonel Ignace Matuszewski, had been transferred by truck to Rumania, transshipped on a Turkish vessel, landed in Syria, and escorted to France by a French man-of-war. It is now on deposit with the Bank of France. The new Polish Cabinet now meeting in Paris made it clear that not an ounce of this gold will be used for the Government’s expenses but will form the reserve for the restored Polish currency in recon stituted Poland. The £6,000,000 British credit pro vided for Poland at the outbreak of the war and the 600,000,000 francs subscribed by France are, it would seem, still in effect for the Polish authorities seated in Paris. A Reuters dispatch from Helsinki a few days ago stated that the Finnish Government has strictly prohibited the export of domestic or foreign currency or other monetary paper. Holders of foreign cur rency worth more than 5,000 Finnish marks are required to deposit it with the State bank. Travelers leaving Finland are permitted to take only currency or monetary paper worth 3,000 markkas. S. R. LIVINGSTONE & CO. M em bers New York Stock Exchange New York Curb (Associate) Detroit Stock Exchange Municipal and Corporation Bonds Listed and Unlisted Securities DETROIT 1356 Penobscot Building Teletype: Det 333 Cadillac 4333 Detroit Chicago Cincinnati The London check rate on Paris closed on Friday at 176-177, against 176-177 on Friday of last week. In New Y ork sight bills on the French center finished at 2.2634 and cable transfers at 2.2634> against 2.2634 and 2.2624* Antwerp belgas closed at 16.67 for bankers’ sight bills and at 16.67 fot cable trans fers, against 16.65 and 16.65. Italian lire closed at 5.05 for bankers’ sight bills and at 5.05 for cable transfers, against 5.05 and 5.05. Berlin marks are not quoted in New York, nor is exchange on Czecho slovakia or on Poland. Exchange on Bucharest closed at 0.7334 (nominal), against 0.7334 (nominal). Exchange on Finland closed at 2.03 (nominal), against 2.03 (nominal). Greek exchange closed at 0.74>4 (nominal), against 0.7434 (nominal). ------- ♦------- X C H A N G E on the countries neutral during the war of 1914-1918 presents no new features from those of recent weeks. These units are inclined to move in sympathy with sterling and since the pound is held steady by London there is little fluctuation in the neutral rates. On N ov. 1 leaders of the three Danish political parties agreed to recommend that the krona in terms of sterling should not be lowered from its present level of 20.70 kroner to the pound. Bankers’ sight on Amsterdam finished on Friday at 53.11, against 53.09 on Friday of last week; cable transfers at 53.11, against 53.09; and commercial sight bills at 53.00, against 53.05. Swiss francs closed at 22.4334 for checks and at 22.4334 for cable E ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD 2872 — F r a n c is , B ro. — & Co. Nov. 4, 1939 Investment Securities Established 1877 S ti k $ Co. Investment Securities SAINT LOUIS 509 0L,V STE Fourth & Olive Sts., Kennedy Building, St. Louis Members St. Louis Stock Exchange Tulsa transfers, against 22.43 and 22.43. Copenhagen checks finished at 19.32 and cable transfers at 19.32, against 19.31 and 19.31. Checks on Sweden closed at 23.82 and cable transfers at 23.82, against 23.82 and 23.82; while checks on Norway closed at 22.72 and cable transfers at 22.72, against 22.72 and 22.72. -----♦---- X C H A N G E on the South American countries is generally steady and quiet. Most of these countries are increasing their buying from the United States. Brazil has completed arrangements within the United States of ships, maritime and railway equipment to the value of more than $11,000,000. Chile is also buying locomotives and railway equip ment in the United States, while in Argentina ex change and import restrictions have been r e m o l d with respect to a large number of United States products. Extension of this commerce does not warrant the assumption that European nations formerly supplying the South American republics have permanently lost their markets there. Argentine paper pesos closed on Friday at 29.78 for bankers’ sight bills and at 29.78 for cable trans fers, against 29.78 and 29.78. The unofficial or free market was 23.50, against 23.60. Brazilian milreis are quoted at 5.10, against 5.10. Chilean exchange is quoted at 5.19 (official), against 5.19. Peru is nominally quoted at 19.00, against 19.00. E ---- ♦ ----- S T . LOU IS X C H A N G E on the Far Eastern countries pre sents no new features of importance. Reports from Tokio indicate that a bill will be presented in the March session of the Japanese Diet which will increase the fiduciary limit in Japanese note circula tion by 500,000,000 yen above the present 2,200,000,000 yen limit. The note issue has already ex ceeded the present fiduciary limit. In the last few days of October the Bank of Japan’s note circulation rose by 119,000,000 yen to a total of 2,806,000,000 yen. Technically 501,280,000 yen of the circulation represents the gold reserve of the Bank of Japan, the fiduciary issue already allowed accounts for an additional 2,200,000,000 yen. Closing quotations for yen checks yesterday were 23.45, against 23.45 on Friday of last week. Hong kong closed at 25.00, against 25 1-16; Shanghai at 8% , against 8% ; Manila at 49.90, against 49.90; Singapore at 47% , against 47% ; Bombay at 30.35, against 30.35; and Calcutta at 30.35, against 30.35. E G o ld B u llio n in E u ro p ea n B a n k s HE following table indicates the amounts of gold bullion (converted into pounds sterling at the British statutory rate, 84s. ll%>d. per fine ounce) in the principal European banks as of respective dates of most recent statements, reported to us by special cable yesterday (Friday); comparisons are shown for the corresponding dates in the previous four years: T WALDHEIM, PLATT & CO. M em bers New York Stock Exchange New York Curb (Associate) C h ica go S to ck E xchan ge St. Louis Stock Exchange S C H E R C K , R IC H T E R C O M PA N Y Landreth Building 308 ST. LOUIS, MO. ' Bell System Teletype St. Louis 456-7-8-9 Garfield 0225 L . D . 123 N orth E igh th S A IN T L O U IS S treet Volume ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD 149 — — 2873 B I O R E N & CO. E s t a b l is h e d 1 8 6 5 Members of New York and Philadelphia Stock Exchanges PHILADELPHIA, PA. 1508 WALNUT STREET Banks of— 1939 1938 1937 £ 327,722,440 293,728,234 3,005,700 63.667.000 25.232.000 123.420.000 94.075.000 114.928.000 31.972.000 6.537.000 8.205.000 1936 £ 327,991,740 293,710,643 2,501,300 87.323.000 25.232.000 108,391,000 98.669.000 78.631.000 26.019.000 6.548.000 6.602.000 £ 249,604,429 391,871,164 1,844,250 88.092.000 42.575.000 47.491.000 105,134,000 80.129.000 24.243.000 6.552.000 6.603.000 1935 Netherlands Nat. B elg.. Switzerland Sweden____ Denmark _ _ _ N orw ay_ £ *533,409 328,601,513 b3,857,300 c63,667,000 a23,400,000 93.623.000 102,867,000 95.784.000 35.222.000 6.500.000 6.666.000 Total week. Prev. week. 760,721,222 1,092,492,374 1,061,618,683 1,044,138,843 1,137,155,545 7«2.7*1.325 1,092,001,530 1.062.271.038 1,163,671,595 1,131,502,174 England___ France ___ Germany __ £ 196,407,206 575,918,339 3.303.000 90.348.000 43.537.000 47.560.000 98.883.000 46.707.000 21.335.000 6.555.000 6.602.000 * Pursuant to the Currency and Bank Notes Act, 1939, tne Bank of England statements for March 1, 1939 and since have carried the gold holdings of the Bank at the market value current as of the statement date. Instead of the statutory pric e which was formerly the basis of value. On the market price basis (168s. per fine ounce) the Bank reported holdings of £1,054,992 equivalent, however, to only about £533,409 at the statutory rate (84s. 11 Hd. per fine ounce), according to our calculations. In order to make the current figure comparable with former periods as well as with the figures for other countries in the tabulation, we show English holdings in the above in statutory pounds a Amount held Dec. 31, 1938, latest figures available, b Gold holdings of the Bank of Germany includes "deposits held abroad” and “ reserves in foreign cur rencies.” c As of April 30, 1938, latest figure available. Also first report sub sequent to Aug. 1, 1936. The value of gold held by the Bank of France Is presently calculated, in accordance with the decree of Nov. 13, 1938, at the rate of 27.5 mg. gold, 0.9 fine, equals one franc; previously and subsequent to July 23, 1937, gold in the Bank was valued at 43 mg. gold, 0.9 fine, per franc; before then and after Sept. 26, 1936, there were 49 mg. to the franc; prior to Sept 26, 1936, 65.5 mg. gold 0.9 fine equaled one franc. Taking the pound sterling at the rate at which the Bank of England values its gold holdings (7,9881 gr. gold ll-12ths fine equals £1 sterling), the sterling equivalent of 296 francs gold in the Bank of France is now Just about £1; when there were 43 mg. gold to the franc the rate was about 190 francs to the £1; when 49 mg., about 165 rancs per £1; when 65.5 mg., about 125 francs equaled £1. American Shipping and the Neutrality Bill A good deal of hysterical legislation has gone through the congressional hopper in recent years, but the peak in excited absurdity seems to have been at last reached in the current neutrality bill in the original clauses affecting American shipping and American foreign trade. Ever since the W orld W ar we have, as a Nation, poured out printers’ ink and Government money to build up a merchant marine against the day when another major conflict would come. On that day, it was maintained, we would need a merchant marine to assure us of essential imports, to keep our foreign exports moving, and to provide an auxiliary merchant fleet for our Navy. The day came on Sept. 3, and the first thing we proposed to do was to pull in our horns, forego our neutral rights, abandon the freedom of the seas, and in effect tie up or scuttle nearly half of the merchant marine established at such great cost. Such a proposal is contrary to our long-estab lished policy of encouraging the development of American export business. The clauses applying to our ships would have so reduced the carrying capacity of American vessels as to put us at the economic mercy of the belligerents or the smaller European neutrals for the necessary ships to carry our exports. The title-transfer requirements of the bill will still, even as amended by the Senate, em- UNDERWRITERS and DISTRIBUTORS of INSTITUTIONAL and CORPORATION BAKER, WATTS & CO. BONDS and STOCKS Established 1900 TRADING SERVICE IN ALL LOCAL ISSUES AND SECURITIES OF THE MIDDLEWEST AND SOUTH . . . U n derw riters and D istrib u to rs O . H. W I B B I N G & C O . M em bers S t. L o u is S to c k E xchange of In ve stm e n t Securities Members of New York Stock Exchange Members of Baltimore Stock Exchange Associate Members of New York Curb Exchange FORM ERLY PREISS, WIBBING & CO. 320 Security Bldg. - - - St. Louis, Mo. Calvert and Redwood Sts. BALTIMORE, MARYLAND ONE HUNDRED 2874 The Commercial & Financial Chronicle — — YE A R S OLD Nov. 4, 1939 BODELL & CO. Investment Securities 32 C u s t o m H o u s e S tre e t, HARTFORD NEW YORK barrass existing foreign branch office arrangements of American exporters in Britain and France. The whole program will contradict and may even stultify our recently-developed farm export program, with its newly-introduced subsidies. The new proposals ran directly counter to our long-established position in favor of the rights of neutrals; for they would have thrown overboard most of our rights under international law and left the perpetuation of such neutral rights to small nations like Holland, Denmark, and the Scandi navian countries. Good reason could be shown for Thomas Jeffer son’s Embargo Act of 1807, when the United States was a tiny seacoast Nation whose foreign trade was caught between the guns of Great Britain and Napoleon, and when it was argued with some reason Bonds- California Municipal Bonds R . H. MOULTON & COMPANY Incorporated LOS ANGELES SAN F R A N C IS C O N EW Y O R K P ro vid e n c e , R h o d e Is la n d NEW HAVEN that the better part of valor was for the little Amer ican Nation to run its ships into port. We are no longer a little Nation. In fact, there is a curious contradiction between the proposed shipping clauses of the neutrality bill and the recent declaration at Panama that the war ring Powers should stay out the Western Hemi sphere. Taken literally, that declaration would mean that German ships might safely ply between this country and South America. Should a British destroyer intercept them, and America protest, the British might logically state that we were vastly exceeding our rights under international law in so protesting. Yet under the neutrality bill we would, instead of exceeding our established rights, be re linquishing the major part of them. The story of the bill throws a sad light on our legislative intelligence. As first brought in, it would have prohibited American ships from so much as entering the ports of any belligerent, which would have closed to American ships ports of Africa, India, Australia, the Malay States, Hong kong and, of course, Canada, as well as the really dangerous waters, and would even have stopped the safe operation of the planes of Pan-American Air ways, which normally put in at certain of the British West Indies. It was obvious that the original .drafters had no idea of the extent of their prohibitions. First, an exemption had to be made for the necessary PanAmerican stops. Then the bill was modified so that American ships might put in at these remote “ bel- WISCONSIN Stocks and Bonds • LOEWI & CO. 225 E. Mason Street MILWAUKEE A . T . & T . T e le t y p e M ilw a u k e e 55 T e le p h o n e D a ly 5392 Volume 149 ONE HUNDRED The — Commercial & Financial Chronicle— YE A R S Ca D .B r leto x IN V E ST M E N T TELE P H O N E S - 4 - S I5 6 eh OLD C 2875 o . S E C U R IT IE S D E S M O IN E S B U IL D IN G , D ligerent” ports, though only in ballast or empty. A mighty outcry from the West Coast promptly forced the lifting of the embargo on American ships carrying cargo to Pacific ports, and the Connally amendment of Oct. 18 changed the bill so that American ships could carry cargo to all ports ex cept those east of 50 degrees longitude and north of 30 degrees latitude. This would shut off only Europe, the Mediterranean, and the northwest coast of Africa to our shipping. Even this amend ment, however, was modified, but in a strange and wonderful manner. For the modification seemed intended to prevent American ships from plying any part of the Atlantic Ocean except to South America. This would have meant, for example, that the American lines running to Africa could not go there through the Atlantic, but must go through the Panama Canal, across the Pacific, and through the Indian Ocean, or else down the west coast of South America, through the Strait of Magellan, and thence across that stretch of southern ocean which, scarcely ever traversed by mariners, is not yet the Southern Sea nor yet the Atlantic. Although this seemed the obvious intent of the drafters, the amendment was not so worded. It merely shut American ships out of Atlantic 'ports, which meant that the American lines plying to South Africa could sail down through the lower Atlantic and round the Cape, provided only they did not put in at any of the African ports on the Atlantic coast. e s Mo in e s ,I owa The bill as passed by the Senate on Oct. 26, not only shuts out American ships from British and French ports but prohibits the shipment of Amer ican goods to these ports until transferred to the foreigner. This prohibition alone, unless amended, will be sufficient to destroy a good part of the machinery of the American export business. For it means that Americans cannot handle their own goods in our chief export markets, even through branch houses and distributing agencies there established. Title must be transferred to foreigners before the goods leave these shores; and it is certain that when for eign commercial handling firms acquire this busi ness they will not readily relinquish it when the war is over. The same holds for the shipping business which Americans are bound to lose through the present clauses in the neutrality bill. It is economically impossible for them to travel to belligerent ports in ballast and support their operations on the return cargoes. The business is bound to go to foreign shipping lines; and when it once goes to them it will not easily be regained. The business of operat ing ships does not consist simply of carrying car- In q u iries In v ite d NORTHWESTERN NATIONAL INSURANCE COMPANY OF MILWAUKEE E S T A B L IS H E D 1904 Edgar, Ricker & Co. 207 East Michigan Street Milwaukee, Wisconsin . . . With its background of 64 years of service and cooperation with business organizations and individuals . . . this Bank can be useful to t’hose wishing to develop their activities in the Des Moines and Iowa territory. IOWA-DES MOINES N A T IO N A L BANK & TRUST C O M P A N Y DES M O I N ES • IOWA Member Federal Deposit Insurance Corporation ONE HUNDRED 2876 The Commercial & Financial Chronicle — — "1 i W H EELOC K & C U M M IN S INCORPO RATED M unicipal B on ds i EQUITABLE BUILDING D E S M O IN E S ! _ _ _ ................ ■ - . . --------------------------- 1 goes. It consists of building up goodwill among shippers; of understanding and filling their peculiar requirements, and of getting them in the habit of using one’s regular services. American shippers are not so intensely patriotic that when the war is over they will go back to American ships automatically. They are in fact likely to prove as independent as the American passengers who in recent years have spontaneously imposed almost a boycott on certain American lines because of the reported boisterousness of American sailing crews. At the end of the war, when requested to go back to patronizing American ships, they are likely to reply that when American ships failed them in an emer gency foreign ships came to their help, and they would prefer to continue shipping in the foreign vessels. The American shipping lines directly affected by the bill will have the unpleasant choice of selling their ships to foreigners, laying them up, or trans ferring them to other lines. Sale of American ships to foreign flags might naturally be blocked by the Maritime Commission as directly opposed to the whole intent of our maritime program hitherto. John Lowry, President, the Merchants’ Association of New York, Felicitates the Chronicle I am informed that on November 4 The Commer cial and Financial Chronicle will celebrate its One Hundredth Anniversary. In this world of rapid changes your entrance into the relatively small group of New York enterprises that have passed the century mark is an achievement in which you may well take extreme pride. The Commercial and Finan cial Chronicle has existed be cause it has filled, and filled well, a distinct need of the financial and business com munity. Your success proves that sincerity of purpose and consistency in the perform ance of a necessary service have their rewards. I congratulate The Commerical and Financial Chronicle on its birthday and I hope that, as it enters its 101st year, it will be the beginning of another century of success. Y E A R S OLD N ov. 4, 1939 Drydocking the ships would run up high costs for maintenance and depreciation, and just about put a heartsick end to the American maritime program. Transferring the ships to other runs would be almost futile, for there are no other runs not fully preempted. Great Britain is building ships as fast or faster than they are being sunk, and will give up few or none of her shipping operations, being eager to accumulate foreign exchange, while the neutral countries, particularly Italy, are girding themselves to take full advantage of our cowardice. By the time the silly season was over in American neu trality legislation there would be no place for the displaced American foreign-line ships except in the protected coastwise shipping business. As a result no one is more concerned about the pending legisla tion than the American coastwise shipping inter ests. Their situation is already bad, because of the age of their ships, as was frankly indicated in the survey by the Maritime Commission this spring, and they already have a big enough fight on their hands in the pending Wheeler-Truman bill to put coastwise shipping under the Interstate Commerce Commission. As the bill now stands, our North Atlantic ship ping lines face extinction, and with them would go the money the Government has sunk in them by subsidy, for probably 30% of our mercantile marine, even after this week’s amendments, would in effect be swept off the sea as effectively as if by German submarine or British patrol. California’s Danger A year ago the voters of California rejected the proposal to pay “ Thirty Dollars every Thursday” to the so-called “ senior citizens” of that State, but the margin against it was so dangerously small as to invite continuance of the discussion. Now the il lusory scheme, still bearing the fragrant title of the “ Ham and Eggs for Everybody” plan, and only slightly revamped, is again before the voters. Should the verdict of next Tuesday’s election be in favor of its adoption, the threat of disaster to California will be measureless, and the danger to the finances of that great Commonwealth can be averted only by judicial intervention upon the ground that the course of State action called for by the plan con travenes the monetary provisions of the Federal Constitution. There would seem to be ample ground for such intervention, but it must be hoped it will be unnecessary. Nevertheless, should the operation of the plan be attempted, there can be nothing but a period of extreme confusion and disorder in all the affairs of the State government, with extensive injuries to all forms of industry within the State. Briefly, the pension plan is to pay thirty dollars a week to every citizen of California who is over fifty years of age and is qualified to receive the gratuity by having no gainful employment or aban doning any such employment that he has. The pay ments are to be made in warrants, to be issued by the State in denominations of $1.00 and receivable by the State for all taxes and other obligations pay able into its Treasury. Otherwise, these warrants are not to be made legal tender, but their redemp tion is to be provided for out of the proceeds of a tax on their possession, payment of which is to be signified, and insured, by affixing a two-cent stamp Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD — on eacli one dollar warrant during every week that it is outstanding. Unless these stamps are attached with regularity until they aggregate $1.04 on each $1.00 warrant, the paper becomes worthless in the hands of its possessors. It is believed that the present number of Californians who would receive gratuities under this plan is not less than 800,000. On that basis, the annual amount to be distributed among recipients of the State’s bounty would be $1,248,000,000, and the amount to be raised by taxa tion would be four per cent greater or $1,297,920,000, the additional $49,920,000 being supposed to provide for the expenses of administration. Thus, the scheme discloses itself merely as a device to take from one group an enormous aggregate by taxation — fully six times all taxes hitherto paid in Cali fornia to the State government in any year—and to apportion most of the fund so obtained among the members of a more favored group, its personnel determined by considerations of age and unemploy ment. Judgment of its merit, at this point, would seem to depend upon the willingness to accept a plan of taxation frankly intended to divert wealth or in come from one group in a community to another group, upon the ability of the one group to endure forcible diminution of its resources, if such a pur pose could be tolerated in any case, and the relative benefits, if any, to the recipient group. Such a judg ment would require clear delimitation of the respec tive groups and detailed information as to their composition, probably in no way to be acquired except by experience. But the experience can never be acquired under this or any similar plan, for the plan will not operate. Any attempt to operate under it will inevitably produce muddling upon a gigantic scale, widespread confusion, and loss. The warrants to be issued to the selected group composed of the elderly and idle, would be completely valueless ex cept in the extent in which they became a circulat ing medium accepted in exchange as the equivalent of money. Although not even nominally money, and their acceptance compelled only when they should be tendered in payment of obligations to the State government, the advocates of the plan allege that they would be widely accepted in trade, and there is some ground for anticipating that, at the beginning, there would be considerable usage of that character. But they would be, from the very first, under suspicion, and it is indubitable that such sus picion would increase rapidly with practical experi ence. Indeed, the stamp tax upon their possession would be notice to any holder that their value would evaporate with rapidity if they continued in his possession. An annual tax exceeding their face value, to be collected in fifty-two weekly instalments and to be evidenced by stamps essential to their validity would, in effect, make them worthless if retained and amount to an imperative direction immediately to pass them along to another holder equally aware of their dwindling, or absolutely non existent, merit, and similarly unwilling to hold them save during the briefest possible period. Here exists the very essence of boundless infla tion, something without intrinsic value, temporarily utilized for payments in exchange, distrusted by those who use it, every possessor urged by fear that suddenly no one will take it in exchange for any commodity, and therefore passionately eager to get 2877 — C m e c a d N v a n o th U ite S te o mr e n a ig tio f e n d ta s An abstract of the last official Annual Statement of the Commerce and Navigation of the United States for the year ending ending Sept. 30, 1838: IM P O R T S T o t a l a m o u n t .. ________ __________ ____ $113,717,404 O f w h ic h im p o r te d in A m e rica n ve sse ls___ 103,0£7,448 In f o r e ig n vessels _____ __ ... 10,629,950 EXPORTS T o t a l a m o u n t _______________________________ $108,486,616 O f w h ic h w ere d o m e s tic p r o d u c e _ _ . 96,033,821 F o re ig n p r o d u c e _________________ ._ ___ 12,452,795 D o m e s tic A r tic le s : E x p o rte d in A m e r ic a n v e s s e ls . ____ .. 79,855,599 E x p o rte d in f o r e ig n ve sse ls_______________ 16,178,222 F o re ig n A rtic le s : 9,964,200 E x p o rte d in A m e rica n vessels ---------------E x p o rte d in f o r e ig n v e s s e ls ___ __ ______ __ 2,488,595 N A V IG A T IO N A m e rica n s h ip p in g e n te r e d t h e p o rts o f th e U n ite d S ta te s fo r th e yea r e n d in g S e p te m b e r 30, 1838 ................ . . . . .t o n s . 1,302,974 D it t o c le a re d fro m d it t o ________ __________ 1,408,761 F o re ig n s h ip p in g e n t e r e d d u r in g sam e p e r io d 592,110 D it t o cle a re d fr o m d i t t o . . ___. . . . . 604,166 R e g iste re d t o n n a g e , as c o r r e c t e d S e p t. 30, 1838 _______ __________________ 822,591 E n ro lle d a n d lic e n s e d _______ __ ____________ 1,041,105 131,102 F is h in g vessels__________________________________ T o t a l t o n s ____________________________________ E m p lo y e d in t h e W h a le F is h e r y _____________ 1,993,798 129,629 S h ip p in g b u ilt in t h e U n ite d S ta te s d u r in g t h e y e a r e n d in g S e p t. 30, 1838: R e g is t e r e d __________________ t o n s . 41,359 E n r o lle d ___________________________ 71,275 T ons _ _____________ . . 113,134 The imports of the previous year, ending 30th of September, 1837, amounted to $140,989,217, and the exports to $117,419,376. It will be observed that while the imports of 1837-38 are less by $27,000,000 than in 1836-37 the exports are less by only $9,000,000 more. This looks like getting out of debt. The tonnage of American shipping which en tered in 1837-38 is greater than in 1836-37 by 3,254 tons, while the foreign tonnage is less by 173,593 tons. This, again, is a favorable indication. The actual tonnage owned in the United States has increased within the year from 1,896,685 tons to 1,994,798, or 98,113 tons. Rather less tonnage was built in 1837-38 than in 1836-37. HUNT’S MERCHANTS’ MAGAZINE, July, 1839 O E -T E O N E SE U IT S VR H-C U T R C R IE • Kobbe, Gearhart & Parsly INCORPORATED 45 N A S S A U S T R E E T , N EW Y O R K Telephone Cortlandt 7-0100 A. T . & T. Teletype New York 1-576 D ir e c t P riva te W ir e to C hicago 2878 ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD — rid of it forthwith, taking anything of real or pre sumed value at any price, however extravagant. It may very well be doubted whether, for more than a very brief moment, the proposed “ ham and eggs money” of California, in the hands of the selected recipients of the State’s gratuities, would suffice to buy salt to savor the food, and it is more than cer tain that it would soon cease to have value in ex change equivalent to the meat or the eggs. No dealer could be obliged to accept it for any goods, and after a time of rapid marking up of prices and manipulation, none would take it at any discount or on any terms. The worthless warrants would become a drug on the market; their value to the recipients of an intended bounty would be soon re duced to nothing. The misguided citizenship would encounter a new disappointment, and have a new ground for discontent with their government. Meanwhile, one function, and one function only of the absurdly devised warrants would continue in lively operation. Worthless for any other purpose, the State would have to accept them whenever ten dered in payment of taxes or anything else due to its Treasury. Anyone owing anything to the State, or able in any way to arrange such an obligation, ob taining anything of even the slightest value in ex change, would be able to acquire these warrants far below the face values at which they would have to be accepted by the Treasury. The State would cease to receive any of its resources in real money and its Process of Railway Consolidation Much has been said of the absorption of other lines by the Pennsylvania Railroad Company; it seems to be outdone by the re cent combination made in Ohio, of which as yet very little has thus far been said here, most probably for the same reason that the great struggles at the West have made less noise in the world than the battles in Vir ginia— that is, distance from the seaboard. One of our exchanges states briefly the scope of this consolidation in the following terms: “ The combination includes both routes leading out of Cincinnati via Zenia and Dayton, which are practically one interest, reaching, via Columbus, to Cleveland; the Bellefontaine line from Indianapolis to Crestline; the Pittsburg Fort Wayne & Chicago Railroad, from Crestline to Pitts burg; the Ohio Central Railroad from Columbus to Bellaire; and the Pittsburg, Columbus & Cincinnati Railroad, from Newark to Steubenville; also the Lake Shore road from Cleveland to Erie City. “ In other words, the combination extends from Cincinnati to Cleveland, and from this ‘base line’ eastward along the lake shore, eastward to the Ohio River at Steubenville and Bellaire, and westward from Crestline to Indianapolis, comprising in all about 1,100 miles of road. “ The basis of this stupendous compact is a perpetual contract between the Little Miami and Columbus & Zenia Railroad com panies of the first part, and the Cleveland Columbus & Cincinnati Railroad Company of the second part, which contract is to go into effect June 1, 1863.” HUNT’S MERCHANTS’ MAGAZINE, June, 1863 — - N ov. 4, 1939 Treasury would quickly be denuded of everything of real value. It would not have the right to re-issue the warrants or in any manner to utilize them in the payment of its own expenses, beyond possibly some portion of the wages or salaries of its own employees, who would to that extent be forcibly deprived of part of their legitimate earnings. Hence, the insolvency of the government of the Common wealth would be complete and immediate. From this debacle there could be no relief save by repeal of the laws that led to the disaster and the slow and painful process of retrenchment. From that peril may the action of the voters next Tuesday deliver the people of California! Arthur Thompson & Co. Specialists in United States G overnm ent Securities 52 WILLIAM ST., NEW YORK CITY Han-2-3950 Teletype NY-1-2670 The Course of the Bond Market The upward trend of bond prices has continued this week, particularly in high grades, the Aaa’s now having recovered about 70% of their decline since the middle of August. Uniform strength has not been the rule, however, as United States Governments moved up a little and then declined, and lower-grade rails lost ground. High-grade railroad bonds have moved fractionally higher. Atchison gen. 4s, 1995, were up % at 105% ; Penn sylvania 4%s, 1960, gained % to 11714. Medium-grade and speculative rails registered small losses. Southern Pacific 4s, 1955, dropped 1% to 6 7 % ; Kansas City Southern 3s, 1950, at 65 were off 1. Central Railroad of New Jersey, controlled by Reading Co., requested the Federal Court’s sanction to reorganize under the Bankruptcy Act. The road claims to have been forced by liability for $11,650,000 unpaid taxes due the State of New Jersey. The equipment trust certificates market has been fairly active during the week, $1,200,000 Wheeling & Lake Erie 2%>s and $2,025,000 Louis ville & Nashville 2% s were sold at 103.9 and 104.29, respec tively. Although enthusiasm for high-grade utilities diminished somewhat on Thursday, demand during the earlier part of the week was steady, causing a rising trend in prices. American Tel. & Tel. 3% s, 1961; New York Steam 3% s, 1963, and Atlantic City Electric 3% s, 1964, reached new highs for the current move. Among better medium grades, California Oregon Power 4s, 1966, closed at 101, up 2 for the week; Ohio Edison 4s, 1967, advanced % to 107% ; Lake Superior District Power 3%s, 1966, rose 1% to 104. Lower grades have been irregular. Associated Gas & Electric debentures have been active on plans for corporate sim plification. Industrial bonds have been generally higher this week, with steels, oils, foods, amusements and most other groups showing moderate gains on the average. Exceptions to the generally upward trend include the General Steel Castings 5%s, 1949, off 2 points at 74; the Studebaker conv. 6s, 1945, which closed at 94% for a loss of 1% points, and the United Drug 5s, 1953, which lost 4V8 points at 75%, wiping out gains of the last few weeks. Sugar bonds strengthened toward the week-end, but were off compared with a week ago. Among building materials company obligations, the Celotex 4%s, 1947, gained 1 point at 84, but the Certain-teed 5%s, 1948, lost % point at 75%. The reported efforts of the Administration at improving trade relations with the nations of Latin America have been responsible for the moderate strength in Brazilian and other defaulted South American loans. Australian bonds again found support at substantially higher prices, with gains being as much as 7 points for Brisbane 5s, 1958. Other strong features have been Italian and French issuers, but German Government loans have been depressed. Danish and Norwegian bonds turned softer after early firmness, while Japanese issues showed slight gains over last week’s closing prices. Moody’s computed bond prices and bond yield averages are given in the following tables: ONE HUNDRED Volume 149 — M O O D Y 'S B O N D The Commercial & Financial Chronicle — M O O D Y 'S B O N D F R IC K S (Based on Average Yields) 1939 Dally Averages U. S All 120 Govt Domes Bonds tic Carp.* Aaa Aa A Baa Y IE L D 2879 AVERAGES f (Based on rndiridual Closing Prices) 120 Domestic Corporate by Groups* RR. P. U. Ind. 1939 Daily Averages All 120 Domes lie Carp 120 Domestic Corporate by Ratings Aaa Aa A Baa 120 Domestic Corporate by Groups RR. P. V Ind. 3.28 3.45 3.05 3.20 3.84 4.83 4.46 Nov. 3 ________ 3.73 3.30 3.83 3.45 3.21 4.84 4.46 2.............. 3.73 3.05 3.31 4.46 3.46 1________ 3.22 3.85 4.84 3.74 3.06 3.32 3.48 3.24 4 83 4.46 3.07 3.86 3.75 Oct. 31.............. 3.33 3.50 3.09 3.87 4.83 4.45 3 0 .............. 3.76 3.26 3.33 4.83 4.45 3.50 28.............. 3.87 3 76 3.09 3.26 3.33 4.45 3.50 4 83 3.08 3.26 3.86 27.............. 3.76 3.32 4 83 4.45 3.50 2 6 .............. 3 08 3.25 3.86 3.76 3.32 4.83 4.46 3.50 25________ 3.08 3.24 3.87 3.76 3.34 2 4 .............. 3.87 4.46 3.51 3.77 3.10 3.26 4.84 3.37 3.52 4.47 3.29 4.85 23.............. 3 78 3.10 3.89 3.53 3.37 4.85 4.48 21.............. 3.10 3 30 3.90 3.79 3.53 3.37 4.49 3.90 4.86 2 0 .............. 3.79 3.11 3 29 3.53 3.39 4.49 19.............. 3.12 3.30 3.91 4.86 3.80 3.41 3.54 4.49 3.93 18.............. 3.14 3.30 4.86 3.81 3.42 3.94 4.50 3.56 17.............. 3.33 4.88 3.83 3.15 3.45 4.54 3.57 4.91 16.............. 3.16 3.36 3.96 3.85 3.45 4.54 3.59 14.............. 3.37 3.97 4.92 3.18 3.86 3.46 4.54 3.60 13-............ 3.39 3.97 4.91 3.86 3.18 12.............. Stock Exchar' ge CloR ed 3.47 4.54 11________ 4.92 3.60 100.53 85.65 91.20 107.30 109.84 3.40 3.97 3.87 3.19 3.48 4.54 3.62 4.92 3.41 3.98 100.35 85.65 91.20 106.92 109.64 10............. 3 21 3.88 3.63 3.48 4.55 3.99 4.93 100.18 85.52 91.05 106.73 109.64 3.42 9 . - - ........ 3.21 3.89 3.51 3.65 99 83 85.52 91 20 106.36 109 05 4.93 4.54 4.01 3.44 7________ 3 90 3.22 3.52 4.93 4.55 3.66 4.02 99.66 85.52 91.05 106.17 108.85 6 . ............ 3.45 3.91 3.24 3.52 4.01 4.93 4.55 3.66 99.83 85.52 91.05 106.17 108.85 5 - ............ 3.91 3.23 3.45 3.52 3.66 4.02 4.93 4.56 99.66 85.52 90.90 106.17 108.85 4.............. 3.47 3.91 3.22 3.54 3.69 99.14 85.24 90.90 105.60 108.46 4.05 4.95 4.56 3.49 3 .............. 3.93 3.24 3.56 4.55 3.71 99.14 85.24 91.05 105.22 108.08 2.............. 4.95 3.50 4.05 .3.94 3.26 Weekly— 3.57 4.55 3.70 3.49 4.04 4.95 110.38 101.06 114 09 109.44 99.31 85.24 91.05 105.41 107 88 3.94 3.26 Sept. 29________ 3.62 4.60 3.75 108.93 100.18 112.86 108.66 98.28 84.55 90.29 104.48 106.92 3.53 5.00 3.32 4.10 22.............. 3.99 3.56 4.95 4.54 3.71 3.49 4.05 110.60 101.06 114.09 109.44 99.14 85.24 91.20 105.22 108.08 15.............. 3.94 3.26 3.54 4.58 3.66 3.49 5.02 111.26 101.06 114.93 109.44 99.83 84.28 90.59 106.17 108.46 3.22 4.01 8............ . 3.94 3 54 3.40 3.92 5.09 4.61 1 . . 114.04 83.33 90.14 108.46 111.23 1________ 3.07 3.32 3.85 102.66 118.16 112.86 101.41 3.27 3.45 4.51 3.85 4.99 3.17 Aug. 2 5 .. 114.85 104.48 120.37 116.00 102.66 84.69 91.66 110 24 113.89 Aug. 25________ 3.75 2.97 3.20 4.41 3.39 4.84 18.. 116.63 105.98 121.49 117.29 103.56 86.78 93.21 111 43 115.35 3.11 3.80 1 8 . . . ........ 2.92 3.67 1 3.17 3.39 4.81 4.38 3.79 93.69 111.43 116.00 3.64 2.92 3.07 116.79 106.54 121.49 118.16 103.74 87.21 11________ 3.18 3.38 4.35 4.79 4. 117 12 106.73 121.72 118.16 103.93 87.49 94.17 111.64 115.78 4 .............. 3.78 3.63 2.91 3.07 3.17 3.38 4 36 4.78 July 28.............. 2.91 3.78 July 2 8 .. 117 47 106 73 121.72 118.38 103.93 87.64 94 01 111.64 116.00 3.63 3.06 3.17 3.38 4.38 4.80 2 1 .. 117 07 106.54 121.94 118.38 103.38 87.35 93.69 111.64 116 00 21............... 3.64 3.81 2.90 3.06 3.18 4.42 3.38 4.85 14.. 116.99 106.17 122.17 117.94 103.02 86.64 93.06 111.64 115.78 3.83 14.......... . 2.89 3.66 3.08 3.18 3 40 7__ 3.69 4.48 3.88 4.90 7. 116.82 105.60 122.40 117.72 102.12 85.93 92.12 111 23 115.78 2.88 3 09 3.21 4.52 3.43 4.95 91.51 110.63 115.14 3.72 2.91 3 90 June 3 0 ........... . 3.11 June 30. 116.43 105.04 121.72 117.29 101.76 85.24 3.21 3.42 4.46 2.92 3 86 4.90 23.. 117.13 105.41 121.49 117.29 102.48 85.93 92.43 110.83 115.14 23.............. 3.11 3.70 3 22 3.43 4 91 4 48 2 93 3.12 3.88 16.. 116.SO 105.22 121.27 117.07 102.12 85.79 92.12 110.63 114.93 16............ . 3.71 3.23 3.42 4.45 4 88 3.85 9 .. 117.34 105.41 121.27 116.86 102 66 86.21 92.59 110.83 114.72 9.............. 2 93 3.13 3.70 3 25 3.40 3.84 4.49 2. 117.61 105.22 121.04 116.64 102.84 85.52 91.97 111.23 114.30 2.............. 2.94 3.14 4.93 3.71 3.42 3.28 4.55 5.00 May 26.. 116.98 104.48 120.82 116.43 102.12 84.55 91.05 110.83 113.68 May 26________ 2.95 3.15 3 88 3.75 3.30 3.44 4.63 3.94 5.08 19.. 116.97 103.56 120.59 115.78 101.06 83.46 89,84 110.43 113.27 19.............. 2.96 3.80 3.18 3.29 3.45 5.06 4.58 12.. 116.37 104.11 120.37 116.43 101.76 83.73 90.59 110.24 113.48 12_............ 3.15 3.90 3.77 2.97 3.32 4.62 3.47 3.93 5.11 5 .. 115.78 103.56 120.14 115.78 101.23 83.06 89.99 109.84 112.86 5.............. 2.98 3.80 3.18 3.35 3.50 4.66 3.97 5.16 Apr. 28.. 115.41 102.84 119.47 115.35 100.53 82.40 89.40 109.24 112.25 Apr. 28.............. 3.84 3.20 3.01 3.35 3.51 4.58 21. _ 115.13 102.66 119.03 114.93 100.53 82.40 89 10 109.05 112.25 2 1 ............. 3.22 3.97 5.16 3.85 3.03 3.37 3.53 5.22 4.71 14.. 114.76 102.30 119.03 1U.72 100.18 81.61 88.65 108.66 111.84 14.............. 3.03 3.99 3.87 3.23 3.34 3.52 5.14 4.66 3.02 6 .. 114.85 102.84 119.25 114.72 100.70 82.66 89.40 108.85 112 45 6________ 3.84 3.23 3.96 3.32 4.52 3.50 Mar. 31.. 114.85 103.93 119.25 115.14 102.30 84.83 91.51 109.24 112.86 Mar. 3 1 ............. 3.21 3.91 4.98 3.02 3.78 3.30 3.48 4.47 24.. 114.70 104.48 119.92 115.14 102.12 85.79 92.28 109.64 113.27 4.91 24........ . 3.21 3.88 3.75 2.99 3.30 3.48 4.46 4.89 17.. 114.64 104.67 119.92 114.93 102.30 86 07 92.43 100.64 113.27 17.............. 3.74 3.22 3.87 2.99 3.28 4.39 3.46 3.84 3.22 4.81 10.. 114.79 105.22 120.37 114.93 102.84 87.21 93.53 110 04 113.68 2.97 10............. 3.71 3.29 4.49 3.48 4.93 3 .. 113.59 104.48 120.14 114.72 102.30 85.52 91.97 109.64 113 48 3.87 3.............. 3.75 2.98 3.23 3.30 3.51 4.61 90.14 109.05 113.27 3.94 5.03 Feb. 2 4 .. 113.38 103.38 119.69 114.30 101.06 84,14 Feb. 24.............. 3.25 3.81 3.00 3.30 4.62 3.51 5.05 3.25 3.93 17. 113.30 103.38 119.69 114.30 101.23 83.87 89 99 109 05 113.27 17.............. 3.00 3.81 3.29 4.64 3.52 3.94 5.07 10.. 113.21 103.20 119.69 114.09 101.06 83.60 89.69 108 85 112.45 1 0 ............. 3.82 3.00 3.26 3.29 3.53 4.68 3.............. 3.84 3.95 5.10 3.01 3.28 3 .. 113.16 102.84 119.47 113.68 100.88 83.19 89.10 108.66 113.48 3.32 3.57 5.19 4.76 Jan. 27.. 112.59 101.94 119.03 113 07 99.83 82 00 87.93 107.88 113.86 Jan. 27________ 3.89 3.03 3.31 4.01 3.29 4.65 3.53 3.94 5.05 20.. 113.18 103.20 119.69 113.48 101 06 83.87 89.55 108.66 113.48 20............ . 3.82 3.00 3.29 3.30 4.57 4.68 13.............. 3.97 5.11 13. . 112.93 102 66 119.47 113.07 100.53 83 06 89.10 107.88 113.27 3.85 3.01 3.31 3.32 4.70 3.58 6 ______ 3.86 3.07 5 11 6. 112.95 102 48 119.25 112.25 100.53 83 06 88.80 107 69 112.86 3 02 3 35 3.64 High 1980 117 72 106 92 122.40 118.60 104.11 87 78 94.33 111 84 116.21 3.76 High 1939........... 4.00 5.26 4.76 4.10 3.34 3.55 3.16 4.34 3.37 Low 1939______ Low 1939 108.77 100.00 112.45 108.27 98.28 81.09 87.93 104.30 106.54 3.05 3.77 4.77 3.62 2.88 8.76 4.23 6 11 High 1938 112.81 101.76 118.60 111.43 100.18 82.27 88.36 107.11 112.05 High 1938........ . 3.34 3.85 4.68 6.98 4.70 3.36 3.61 4.73 Low 1938 109.58 88.80 112.45 102.66 89.10 62.76 71.15 96.11 104.30 Low 1938_____ 3.05 3.39 5.17 3.99 3 90 1 Yr. )» 1 Year 4ao— 3.40 3.67 4.86 4.03 5.28 3.50 Nov. 3, 1938___ Nov .3 '38 112.55 100.35 117.29 109.24 99.48 80.84 86.50 105.98 111.23 3.11 3.98 2 Yrs.Ago 2 Years Ago— 3.58 4.06 4.80 3.23 4.18 5.66 Nov. 3, 1937___ 3.51 4.15 Nov .3 '37 108.64 97.45 114.72 109.05 96.94 76.17 87.35 98.97 107.69 * These prices are computed from average yields on the basis of one ‘typical” bond (4% coupon, maturing in 30 years), and do not purport to show either the average level or the average movement of actual price quotations. They merely serve to illustrate in a more comprehensive way the relative levels and the relative movement of yield averages, the latter being the truer picture of the bond market. t The latest complete list of bonds used in computing these indexes was published in the issue of Aug. 19, 1939, page 1086. Nov. 3 .2 .. l._ Oct. 3 1.3 0 .. 2 8 .. 2 7 .. 2 6 .. 2 5 .. 2 4 .. 2 3 .. 2 1 .. 20-. 19 . 18.. 17.. 16.. 14- . 13.. 12. 11-10.. 9 .. 7 .. 6 -5 .. 4 .. 3 .. 2 .. Weekly— Sept .29.. 2 2.. 15.. 8 .. 112.62 112.84 113.06 113.14 112.96 112.55 112 52 112.71 11 .19 113.21 113.01 112.96 112.84 112.48 112.62 112.09 111.48 110.95 110.7/ Stock 110.73 110.38 110.51 110 06 109.90 109.97 109.94 109.98 109.57 12C Domestic Corporate * by Ratings YEARS OLD 104.85 104.85 104.67 104.48 104.30 104.30 104.30 104.30 104.30 104.11 103.93 103.74 103.74 103.56 103.38 103.02 102.66 102.48 102.48 Exchan 102.30 102.12 101.94 101.76 101.58 101.58 101.58 101.23 101.06 118.60 118.60 118.38 118.16 117.72 117.72 117.94 117.94 117.94 117.50 117.50 117.50 117.29 117 07 116.64 116.43 116.21 115.78 Uo.78 ge Clos 115.57 115.14 115.14 114.93 114.51 114.72 114.93 114.51 114.09 115.35 115.14 114.93 114.51 114.09 114.09 114.09 114.30 114.51 114.09 113.48 113.27 113.48 113.27 113.27 112.66 112.05 111.84 111.43 ed 111.23 111.03 110.83 110.43 110.24 110.24 109.84 109.44 109.24 102.84 103.02 102.66 102.48 102.30 102.30 102.48 102.48 102.30 102.30 101.94 101.76 101.76 101.58 101.23 101.06 100.70 100.53 100.53 86.92 86.78 86.78 86.92 86.92 86.92 86.92 86.92 86.92 86 78 86 64 86.64 86.50 86.50 86.50 86.21 85.79 85.65 86.79 92.43 92.43 92.43 92.43 92.59 92.59 92.59 92.59 92.43 92.43 92.28 92.12 91.97 91.97 91.97 91.81 91.20 91.20 91.20 110.24 110.24 110.04 109.64 109.24 109.24 109.24 109.24 109.24 109.05 108.85 108 66 108.66 108.66 108.46 108.08 107.88 107.49 107.30 113.68 113.27 113.07 112.86 112.66 112.66 112.66 112.86 112.86 112.45 111.84 111.84 111.84 111.43 111.03 110.83 110.24 110.24 110.04 Indications of Business A ctivity THE STATE OF TRADE— COMMERCIAL EPITOME 3, 1939. While business activity held at a high level the past week, trade reports generally showed a slight falling off compared with the previous week. Merchandise loadings, bituminous coal production, petroleum runs-to-stills and automotive activity were lower. Electric output, however, registered a new all-time high. Advices state that the imminent repeal of the arms embargo means that besides being free to accept millions of dollars worth of warplane orders from representatives of Great Britain and France, American aircraft manufacturers will be able to send abroad immedi ately most of the 880 fighting planes already contracted for by the Allied governments. Other manufacturers will be free to accept, subject to the cash-and-carry terms of the new law, war orders which, including the planes, are ex pected to total $1,000,000,000 in the next few weeks. It is pointed out that Allied war buying programs here are likely to place greatest emphasis on aircraft and oil for the time being, following formal repeal of the arms em bargo. The placement of such orders, coupled with the continued heavy buying of machine tools and raw cotton, are expected to expand final quarter exports to England and France sharply. Although steel prices for the first quarter are not yet known to the consuming trade, an increasing volume of orders for delivery in that period is being booked. If the flow of new business continues at the present rate, some products will be sold out for the first quarter within a few weeks, according to the “Iron Age." “The delay in F r i d a y N ig h t, N o v . announcement of first quarter prices is unexplained, al though opinion seems to be growing among buyers that there may be no horizontal increase but an adjustment of some prices which are said to be out of line with costs, for example, on galvanized sheets.” The “Iron Age” says that a survey reveals that there are no excessive inven tories on finished steel. On the contrary, consumers whose requirements are not yet met seem to outnumber those who are in a comfortable position. It is stated that with a continuance of present conditions, the first quarter require ments of all of the major consumers of steel probably will be as large as in the present quarter. The “Iron Age” esti mates ingot production for the current week at 93%, one point above last week’s estimate, placing production at 1.270.000 tons, which is in excess of the all-time weekly average of 1,193,284 tons in May, 1929. October output may slightly exceed the record-breaking total of 5,286,246 tons in that month, it is stated. With the probability of continued high operations for some time to come, scrap markets have recovered somewhat from their recent weak ness. At Chicago there has been a stiffening of prices which has raised “Iron Age” scrap composite eight cents to $20.96 after three consecutive weekly declines. The ex port market is reported as firmer because of the possibility of renewed buying by Great Britain and Japan. Establishing a new all-time record, output of electricity in the United States for the week ended Oct. 28 was 2.538.779.000 kwh., an increase of 1.8% over the output for the preceding week and a gain of 14.0% over the output for the comparable 1938 period, Edison Electric Institute 2880 ONE HUNDRED — The Commercial & Financial Chronicle — reported yesterday. The sharpest percentage gain was reg istered by the central industrial area, where power produc tion was 17.7% above a year ago, compared with a gain of 15.8% the week before. For the week ended Oct. 21 total United States power production was 2,493,993 kwli., a gain of 12.6% over the 1938 period. Engineering construction awards for the week total $50,040,000, a decrease of 22% from last week and 30% below the voiume for the corresponding week last year, reports “Engineering News-Record” yesterday. The current week’s awards bring 1939 construction to $2,560,354,000, an increase of 11% from the $2,306,671,000 reported for the initial 44week period last year. Private awards for the week are 6% above the volume for the 1938 week, the eighth consecu tive week that they have topped their respective 1938 vol ume. They are, however, 45% below a week ago. Public construction is 41% lower than a year ago, but exceeds last week by 5% . Although less than in the preceding month, October tele phone installations made by principal subsidiaries of Amer ican Telephone & Telegraph Co. included in the Bell Sys tem were more than 50% above the total for the same 1938 period. The company yesterday announced a gain of about 86,800 telephones in service last month, compared with a gain of 93,900 telephones in September, and a gain of 58,400 telephones in October, 1938. For the first 10 months of 1939 the net gain totaled 614,100 telephones, compared with 303,500 telephones for the same period in 1938. At the close of October this year there were about 16,375,000 telephones in the Bell System. New York Telephone Co. reports a station gain of 5,985 telephones in October against 3,037 telephones a year ago. For the first 10 months the company registered a gain of 60,576 telephones against a gain of 13,626 telephones in the same 1938 period. For the third successive week the volume of check trans actions for the country has failed to equal the total for the comparative 1938 week, Dun & Bradstreet, Inc., reported yesterday. Bank clearings for the 22 leading cities totaled $5,845,602,000 for the week ended Nov. 1, compared with $6,034,543,000 for the corresponding 1938 week, a decline of 3.1%. Clearings for New York City were $3,597,125,000, compared with $3,881,585,000 a year ago, a drop of 7.3%. The turnover for the 21 outside cities was $2,248,477,000 against $2,152,958,000, a rise of 4.4%. Car loadings of revenue freight for the week ended Oct. 28 totaled 834,096 cars, according to reports filed by the railroads with the Association of American Railroads and made public today. This was a decrease of 27,102 cars from the preceding week this year, 125,506 cars more than the corresponding week in 1938 and 66,072 cars over the same period two years ago. This total was 108.45% of average loadings for the corresponding week of the 10 preceding years. Ward’s Automotive Reports, Inc., today estimated pro duction of the automobile factories for the current week at 82,690 cars and trucks, which is 5.6%. higher than produc tion last week. Production the corresponding week last year was 75,830 units. The survey predicted a November output of at least 330,000 units, adding that this minimum would be augmented by whatever cars Chrysler Corp. may produce should its labor dispute with the United Automo bile Workers (Congress of Industrial Organizations) be adjusted. Chrysler during this week assembled 960 units, compared with 1,445 last week and 18,250 a year ago. The Federal Reserve Board announced today that Amer ican industry was rolling out products at the fastest pace since 1929, and probably woud continue at as rapid a gait until the end of the year, at least. At the same time, Secre tary of Commerce Hopkins said that wholesale trade dur ing the first nine months of the year aggregated $15,000,000,000, an increase of $1,000,000,000 over the corresponding period of 1938. Figures from the Bureau of Domestic and Foreign Commerce showed that half the wholesale gain was accounted for in July, August and September. Sep tember sales of wholesalers were 16% % higher than in September, 1938. The Reserve Board tempered its opti mism with the comment that “unless there is considerable increase in the consumption of goods, the accumulation of inventories, which is now under way, is likely to reach substantial proportions.” One of the outstanding features of the weather report this week is the continued extensive drought in the Mid west. Very helpful rains were reported in Central and Northern States from the Mississippi Valley eastward, enough, in fact, to bring the October totals to about normal or somewhat above normal in much of the upper Ohio Valley. In a large Midwestern area extending from eastern New Mexico and western Texas northward over the Grent Plains there has been little moisture. The Southeastern States also continue very dry. From the northern Rocky Mountains westward timely and helpful precipitation, mostly in the form of snow, occurred, while the outlook in the Great Basin is still generally favorable. Frost in California killed some tender truck crops, and there was some freeze damage to late gardens in the south-central por tions of Eastern areas, but in general there was no wide spread harm from low temperatures. Seasonal farm work made good progress rather generally. In the New York City area the weather has been generally fine and cool during the past week. YE A R S OLD N ov. 4, 1939 Fair and colder weather prevailed today, with tempera tures ranging from 36 degrees to 48 degrees. The forecast for tonight is for clear weather with diminishing northerly winds and heavy frost. Saturday, increasing cloudiness and slowly rising temperatures, followed by probably fair and warmer weather on Sunday. Overnight at Boston it was 36 to 57 degrees; Baltimore, 35 to 61; Pittsburgh, 33 to 46; Portland, Me., 34 to 53; Chicago, 35 to 42; Cincinnati, 26 to 48; Cleveland, 35 to 42; Detroit, 25 to 42; Milwaukee, 34 to 40; Charleston, 41 to 70; Savannah, 43 to 68; Dallas, 39 to 69; Kansas City, Mo., 22 to 40; Springfield, 111., 22 to 44; Oklahoma City, 23 to 41; Salt Lake City, 36 to 64, and Seattle, 41 to 58. Moody’s Commodity Index Lower Moody’s Daily Commodity Index declined from 164.5 a week ago to 163.1 this Friday. The principal individual changes were the drop in prices of hides and sugar, and the advance in wheat. The movement of the index is as follows: Fri., Sat., M on., Tues., W ed., Thurs. Fri., Oct. 27_______ _______ 164.5 Oct. 28._ _ _______ 183.9 _ Oct. 30_______ _______ 164.2 Oct. 31 _____ _______ 163.8 N ov. 1_____ _______ 163.4 N ov. 2 ______ _______ 163.3 N ov. 3 - - - -- _______ 163.1 Two weeks ago, Oct. 20___ ...1 6 7 .2 Month ago, Oct. 3 - ______ ...1 6 7 .3 Year ago, N ov. 3 . _______ ...1 4 3 .5 1938 High— Jan. 10_______ --.1 5 2 .9 Low— June 1 _ ______ ...1 3 0 .1 1939 High— Sept. 22______ ...1 7 2 .8 Low— Aug. 15_______ .-.1 3 8 .4 Truck Loadings Reach Record Peak in September Ameri. can Trucking Associations’ Survey Discloses Stimulated by improved business conditions, movement of revenue freight by motor trucks reached a new peak in September, according to a monthly survey prepared and re leased on Oct. 29 by the American Trucking Associations, Inc. The survey, based on comparable reports received from 210 motor carriers in 39 States, revealed that truck loadings in September were heavier than in any single month since Jan., 1937, when computation of national averages was undertaken. September loadings were 6 .5 % over August of this year, and 2 8 .2 % above the figure for Sep tember a year ago. The survey further showed: The 210 reporting carriers transported 1,110,959 tons of freight last month, as against 1,043,332 tons in August and 886,334 tons in Septem ber, 1938. The September figures represent an increase o f 43.6% over the 1936 monthly average of the reporting carriers. The American Trucking Asso ciations’ truck loadings index figure for Sept., 1939, computed by taking the 1936 monthly average to represent 100%, was 143.56. This compared with an index figure of 126.02 for August of this year, and 106.84 for Sept., 1938. Despite the fact that September tonnages are only representative o f four weeks’ business as compared to five weeks’ in August, and that a few carriers reported decreases occasioned by unexpected suspension o f opera tions due to labor troubles, the majority of haulers reporting increases attributed the improvement to a general upswing in business. General merchandise, accounting for a little more than 76% o f the total tonnage reported for September, showed an increase o f 8.6% over the pre vious month, and a 29% increase over Sept., 1938. Petroleum products represented 12% of the total tonnage reported, while showing 6.2% decrease under Aug., 1939 reported increases o f 22.4% over September o f last year. Due largely to deliveries o f new models, transportation of automobiles in September increased 55.0% over the previous month. The current figure, however, was 134.8% ahead of Sept., 1938, due to factory shut downs during that month. Movement of iron and steel showed increases o f 29.3% over August, and 51.3% over the corresponding month last year. For the first time since Jan., 1938, traffic falling within this classification showed an increase over the 1936 monthly average, the increase being 5% . Included in the total tonnage reported were figures on special and sea sonal movement o f tobacco, textile products and household goods. These groups reported a decrease of 12% under August and a 1.4% increase above Sept., 1938. Revenue Freight Car Loadings in Week Ended Oct. 28 Total 834,096 Cars Loading of revenue freight for the week ended Oct. 28 totaled 834,096 cars, the Association of American Railroads announced on Nov. 2. This was an increase of 125,506 cars or 17.7% above the corresponding week in 1938 and an in crease of 66,072 cars or 8.6% above the same week in 1937. Loading of revenue freight for the week of Oct. 28 was a decrease of 27,102 cars or 3.1% below the preceding week. The Association further reported: Miscellaneous freight loading totaled 337,971 cars, a decrease of 13,570 cars below the preceding week, but an increase of 53,207 cars above the corresponding week in 1938. Loading of merchandise less than carload lot freight totaled 159,348 cars, a decrease of 951 cars below the preceding week, but an increase of 451 cars above the corresponding week in 1938. Coal loading amounted to 164,868 cars, a decrease of 4,945 cars below the preceding week, but an increase of 28,734 cars above the corresponding week in 1938. Grain and grain products loading totaled 40,232 cars, a decrease of 4,346 cars below the preceding week, and a decrease of 6,669 cars below the corresponding week in 1938. In the Western Districts alone, grain and grain products loading for the week of Oct. 28, totaled 23,305 cars, a decrease of 1,674 ears below the preceding week, and a decrease of 6,689 cars below the corresponding week in 1938. Volume 149 ONE HUNDRED—The Commercial & Financial Chronicle— Y E A R S Live stock loading amounted to 20,410 cars, a decrease of 1,171 cars below the preceding week, and a decrease of 643 cars below the corre sponding week in 1938. In the Western Districts alone, loading of live stock for the week of Oct. 28 totaled 16,816 cars, a decrease of 602 cars below the preceding week, and a decrease of 512 cars below the corre sponding week in 1938. Forest products loading totaled 37,529 cars, a decrease of 1,702 cars below the preceding week, but an increase of 7,493 cars above the corre sponding week in 1938. Ore loading amounted to 62,063 cars, a decrease of 470 cars below the preceding week, but an increase of 37,454 cars above the corresponding Week in 1938. Coke loading amounted to 11,675 cars, an increase of 53 cars above the preceding week, and an increase of 5,479 cars above the corresponding week in 1938. All districts except the Centralwestem, reported increases compared with the corresponding week in 1938. All districts, except the Centralwestern and Southwestern, reported increases compared with the corre sponding week in 1937. 1939 Four weeks in January _ Four weeks in February _ Four weeks in March___ Five weeks in April____ Four weeks in M ay_____ Four weeks in June_____ Five weeks in July______ Four weeks in August___ Five weeks in September Week ended Oct. 7 ____ Week ended Oct. 14____ Week ended Oct. 21____ Week ended Oct. 28____ Total________________ 1938 2,302.464 2,297,388 2,390,412 2.832,248 2,371,893 2,483,189 3.214,554 2,689,161 3,844,358 834,694 844.955 861,198 S34.096 2,256,717 2,155,536 2,222,939 2,649,960 2,185.822 2,170,778 2,861,821 2,392,071 3,243,511 702,61o 726,142 705,284 708,590 2,71i,449 2,763,457 2,986,166 3.712,906 3,098,632 2,962,219 3,794.249 3.100,590 4,013.282 812,258 806,095 770,156 768.024 1937 27 800.610 24.981.787 32,302,483 The first 18 major railroads to report for the week ended Oct. 28, 1939, loaded a total of 386,377 cars of revenue freight on their own lines, compared with 394,734 ears in the pre ceding week and 335,230 cars in the seven days ended Oct. 29, 1938. A comparative table follows: OLD 2881 REVENUE FREIGHT LOADED AND RECEIVED FROM (Number of Cars) Received fr o m Connections W e ek s Ended — Loaded on Own L in es W e ek s E nded — 28 1939 Oct. 23,673 37,245 30,003 19,204 21,865 16,998 3,352 1,718 4,579 16,552 44,242 6,954 28,745 77,353 6,907 7,625 33,004 6,358 Atchison Topeka & Santa Fe Ry_ Baltimore & Ohio R R --------- -----Chesapeake & Ohio R y -------------Chicago Burlington & Quincy R R . Chicago Milw. St Paul & Pac. Ry Chicago & North Western R y __ Gulf Coast Lines_______________ International Great Northern RR Missouri-Kansas-Texas R R _____ Missouri Pacific R R ____________ New York Central Lines_______ New York Chicago & St. Louis Ry Norfolk & Western R y__________ Pennsylvania R R _______________ Pere Marquette R y ____ . . _ _ Pittsburgh & Lake Erie R R _ __ _ Southern Pacific Lines__________ Wabash R y _____________ ______ 21 1939 Oct. 29 1938 Oct. 23,977 37,628 28,920 21,037 23,387 17,370 3,030 1,834 4,851 17,627 45,188 7,550 28,430 78,024 6,765 7,523 34,597 6,996 CONNECTION 25,192 29,010 24,801 19,334 21,938 16,418 3,361 2,003 4,550 15,640 37,314 5,436 23,704 57,203 5,789 5,329 32,441 5,767 28 1939 Oct. 21 1939 Oct. 7,211 19,345 12,921 10,287 9,591 12,368 1,521 2,181 2,984 10,040 46,675 12,522 5,366 50,507 6,494 7,540 9,744 9,702 6,619 19,520 13,909 9,568 9,124 12,485 1,524 2,231 2,953 9,907 45,588 12,397 5,378 49,553 6,308 7,672 9,239 9,311 29 1938 Oct. 6,969 15,459 10,103 8,591 7,843 10,625 1,316 2,082 2,642 9,169 39,708 9,863 4,633 38,393 5,184 5,895 8,768 8,323 386,377 394,734 335,230 233,286 236,999 195,566 Total_______________________ TOTAL LOADINGS AND RECEIPTS FROM CONNECTIONS (Number of Cars) W e ek s E nded —- 28, 1939 Oct. Oct. 21, 1939 Oct. 29, 1938 Not available 37,267 14,640 Chicago Rock Island & Pacific___ Illinois Central System__________ St. Louis-San Francisco R y _____ 28,389 40,442 15,494 Not available 34,841 13,512 51,907 84,325 48,353 T o t a l .............. ......... .................. In the following we undertake to show also the loadings for separate roads and systems for the week ended Oct. 21, 1939. During this period 105 roads showed increases when compared with the same week last year. REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)—WEEK ENDED OCT. 21 1939 Eastern District— Total Loads Received fr o m Connections Total Revenue Freight Loaded Railroads 1938 1937 1939 1938 Ann Arbor___________________ Bangor & Aroostook__ _______ Boston & Maine_ __________ _ Chicago Indianapolis & Louisv. Central Indiana______________ Central V e rm o n t-.__________ Delaware & Hudson........ . . . Delaware Lackawanna & West Detroit & Mackinac............ ..... Detroit Toledo & Ironton_____ Detroit & Toledo Shore Line . Erie________________________ Grand Trunk Western________ Lehigh & Hudson River_______ Lehigh & New England______ Lehigh Valley_______________ Maine Central______________ Monongahela.............. ............... Montour_____________________ New York Central Lines______ N. Y. N. H. & Hartford_____ New York Ontario & Western. N. Y. Chicago & St. Louis.. Pittsburgh & Lake Erie_______ Pere Marquette____ _________ Pittsburgh & Shawmut_______ Pittsburgh Shawmut & North. Pittsburgh & West Virginia___ Rutland_____________________ Wabash_______ _____________ Wheeling & Lake Erie________ 748 1,319 8,665 1,763 38 1,344 6,002 11,143 631 2,741 344 15,134 5,030 181 2,038 10,012 2,861 5,598 2,275 45,188 10,759 1,380 7,550 7,904 6,765 701 443 1,383 728 6,996 5,118 747 957 7,368 1,749 39 1,312 5,069 8,839 628 1,981 312 12,586 4,405 191 1,526 8,666 2,563 3,755 2,143 37,046 9,822 1,474 5,768 5,178 5,805 322 360 969 564 5,826 3,347 637 1,619 8,091 1,604 24 1,497 5,369 11,056 499 2,112 334 13,248 5,198 191 1,828 9,574 3,105 4,388 2,273 43,042 10,301 1,462 4,994 5,073 6,613 432 385 1,104 648 5,724 4,406 1,333 214 11,995 2,583 56 2,374 9,431 7,828 153 1,459 3,136 15,301 7,844 2,139 1,692 7,905 2,462 242 36 46,675 33,371 1,743 12,522 7,159 6,494 47 287 2,031 1,045 9,702 4,017 1,061 230 9,860 1,867 59 1,921 7,277 6,465 145 938 2,753 12,502 6,865 1,909 1,103 6,393 2,026 242 34 40,579 11,669 1,769 9,536 5,502 5,275 26 203 1,368 964 8,090 2,872 Total______________________ 172,782 141,317 156,831 183,276 151,503 Alleghany District— Akron Canton & Youngstown. _ Baltimore & Ohio___________ Bessemer & Lake Erie____ __ Buffalo Creek & G a u le y .___ Cambria & Indiana _________ Central R R. of New Jersey___ Cornwall __________________ Cumberland & Pennsylvania. Ligonier Valley______________ Long Island______ ____ _______ Penn-Reading Seashore Lines.. Pennsylvania System_________ Reading Co_________________ Union (Pittsburgh) _____ ____ West Virginia N orthern_____ Western Maryland__________ 562 37,628 5,721 347 1,730 7,775 580 296 145 668 1,420 78,024 15,159 18,146 44 4,400 460 28,804 3.687 354 1,282 5,682 600 236 146 864 1,177 57,782 12,323 7,093 38 3,249 436 32,065 3,818 354 1,521 6,908 516 277 148 019 1,332 67,131 14,466 10,758 57 4,016 967 19,345 2,764 6 34 12,877 53 32 43 2,951 1,755 50,507 19,408 5,972 0 6,921 728 15,730 1,607 6 19 11,174 69 35 16 2,829 1,356 38,261 16,542 2,562 0 5,750 ,172,645 123,777 144,420 123,635 96,684 28,920 28,430 5,004 23,942 22,934 4,363 25,372 25,206 4,918 12,921 5,366 1,177 10,041 4,526 1,101 62,354 51,239 55,496 19,464 15,668 337 880 613 10,186 4,293 428 1,504 479 226 573 58 1,047 356 1,933 27,967 26,022 175 168 257 826 667 8,590 4,230 398 1,235 401 171 586 48 1,026 376 1,760 24,018 21,209 203 157 194 741 610 9,835 3,570 442 1,382 494 172 576 52 861 424 1,926 24,658 22.635 200 205 216 1,688 926 5,186 3,249 1,205 2,309 424 176 1,548 870 4,778 2.927 970 1,783 319 622 798 119 1,566 506 1,180 10,278 5,360 421 Total____ _____ __________ Pocahontas District— Chesapeake & Ohio___________ Norfolk & Western_ _ ____ Virginian_____________ _____ Total_____________________ Southern District— Alabama Tennessee & Northern Atl. & W . P.— W. RR. of A la.. Atlanta Birmingham & Coast. Atlantic Coast Line_________ Central of Georgia____ _______ Charleston & Western Carolina Clinchfield____________ ______ Columbus & Greenville_______ Durham & Southern--------------Florida East Coast________ . . Gainsville Midland___________ Georgia____________________ Georgia & Florida----------------Gulf MobUe & Northern_______ Illinois Central System________ LouisvUle & Nashville.. . . . Macon Dublin & Savannah.. Mississippi Central. ... N ote — Previous year’s figures revised. Previous figures, 385 826 111 1,779 479 1,261 13,133 6,080 642 355 299 Total Revenue Freight Loaded Railroads Total Loads Received fr o m Connections 1939 Southern District— (C o n cl .) Mobile & Ohio.. Nashville Chattanooga & St. L. Norfolk Southern____ . . Piedmont Northern______ Richmond Fred. & Potomac Seaboard Air Line. Southern System Tennessee Central Winston-Salem Southbound__ T otal_________ ___ Northwestern District— Chicago & North Western____ Chicago Great Western.. . . Chicago Milw. St. P. & Pacific. Chicago St. P Minn. & Omaha. Duluth Missabe & I. R Duluth South Shore & Atlantic. Elgin Joliet & Eastern. _ Ft. Dodge Des Moines & South. Great Northern. Green Bay & Western_ _ Lake Superior* Ishpeming... Minneapolis & St. Louis. Minn. St. Paul & S. S. M Northern Pacific. Spokane International.. Spokane Portland & Seattle_ _ T otal____________ Central Western District— Atch. Top. & Santa Fe System. A lt o n ____ Bingham & Garfield____ Chicago Burlington & Quincy.. Chicago & Illinois Midland___ Chicago Rock Island & Pacific Chicago & Eastern Illinois_____ Colorado & Southern. Denver & Rio Grande Western. Denver & Salt L a k e ... . Fort Worth & Denver City. Illinois Terminal_ _ Missouri- Illinois______ Nevada Northern___ North Western Pacific Peoria & Pekin U n io n .___ Southern Pacific (Pacific)_____ Toledo Peoria & Western. Union Pacific System.. Utah__ ______ Western P a cific.. T otal__________ __ 1938 1937 1939 1938 1,938 3,192 1,568 564 407 9,112 24,458 407 164 1,833 3,013 1,275 542 365 8,843 21,229 420 179 2,243 2,728 1,455 386 361 9,195 21,643 444 204 2,417 2,724 1,565 1,366 4,123 4,971 17,305 830 1,032 2,470 2,446 1,183 1,298 3,379 4,602 14,776 732 867 119,055 103,857 107,630 76,587 66,273 21,544 2,988 22,862 4,508 16,125 977 8,749 532 26,390 787 3,494 2,450 8,315 13,923 238 1,855 18,223 2,949 21,453 3,787 7,094 794 6,047 644 15,009 788 1,195 2,529 6,569 11,735 230 1,976 19,102 2,689 21,175 4,221 7,730 896 5,991 476 21,396 709 1,854 1,960 7,215 13,354 317 1,696 12,368 3,403 9,591 4,093 222 461 8,183 184 3,161 637 82 2,420 2,663 4,330 346 1,524 10,785 3,076 7,769 3,286 155 386 4,341 157 2,746 545 76 2,016 2,214 3,526 309 1,333 135,737 101,022 110,781 53,668 42,720 23,977 3,747 420 21,037 2,401 13,876 3,419 1,634 5,797 929 1,430 2,183 1,175 1,229 901 27 27,994 491 23,551 582 1,839 24,204 3,175 323 19,013 1,706 13,760 2,757 1,825 5,391 772 1,560 1,953 438 1,528 875 24 26,223 493 21,164 523 1,860 26,313 3,413 418 19,907 1,933 13,923 3,002 1,501 5,391 1,047 1,449 1,933 550 1,564 1,017 116 25,785 398 21,829 691 1,789 7,211 2,796 60 10,287 868 10,248 2,951 1,721 3,968 20 1,282 1,683 356 121 0 5,788 1,319 10,947 15 3,120 6,543 2,190 86 8,516 644 8,320 2,546 1,456 3,264 30 1,162 1,145 293 111 385 0 5,710 1,234 9,773 9 2,730 138.639 129,567 133,969 65,266 56,147 146 0 3,030 1,834 338 2,280 2,135 179 235 2,940 2,005 228 1,900 1,943 425 0 1,521 2,181 1,120 2,075 1,973 534 237 1,449 2,200 1,192 1,684 1,230 1,019 305 347 2,984 10,040 154 5,023 2,548 3,376 3,821 75 38 824 274 315 2,660 8,968 123 4,344 2,386 2,825 3,658 64 45 39,025 35,012 Southwestern District— Burlington-Rock I s l a n d ..___ Fort Smith & Western x Gulf Coast Lines. International-Great Northern Kansas Oklahoma & Gulf Kansas City Southern________ Louisiana & Arkansas.. Louisiana Arkansas & Texas.. Litchfield & Madison______ . Midland Valley_ __ _ Missouri & Arkansas_ _ Missouri-Kansas-Texas Lines. Missouri Pacific____ Quanah Acme & P a cific... St. Louis-San Francisco___ __ St. Louis Southwestern___ Texas & New Orleans___ Texas & Pacific_______ Wichita Falls & Southern___ Wetherford M . W. & N . W ___ 465 681 285 4,851 17,687 163 9,205 3,227 7,981 5,453 201 24 259 562 151 4,552 15,543 149 7,810 2,785 7,413 5,624 194 33 173 300 2,879 2,080 208 2,340 1,689 247 292 937 212 5,261 17,970 177 8,989 3,348 7,929 5,729 252 17 Total______________________ 59,986 54,505 61,029 x Discontinued Jan. 24, 1939. a a a a Included in Louisiana & Arkansas, effective July 1, 1939. ONE HUNDRED 2882 The Commercial & Financial Chronicle — — Selected Income and Balance Sheet Items of Class I Steam Railways for August The Bureau of Statistics of the Interstate Commerce Commission has issued a statement showing the aggregate totals of selected income and balance sheet items of class I steam railways in the United States for the month of August. These figures are subject to revision and were compiled from 134 reports representing 139 steam railways. The present statement excludes returns for class I switching and terminal companies. The report in full is as follows: TOTALS FOR THE UNITED STATES (ALL REGIONS) For the M o n th o f A u g. In co m e Item s — 1939 For the E ight M o n th s o f 1938 1939 1938 Net railway operating incom e.. $54,586,247 $45,421,774 $269,349,355 $155,038,539 88.446.879 Otber income________________ 10.323.238 11,207,865 91.343,769 Total Income______________ $64,909,48' $56,629,639 $357,796,234 $246,382,308 1.845,514 Miscell. deductions from Income 1,838,30-; 15.576,107 16.037.007 Inc avail for fixed charges.. $63,063,971 554,791,337 $342,220,127 $230,345,301 Fixed charges: Rent for leased roads and equipment_______________ 12.366,100 12,568.642 91.444.326 88,198.130 Interest deductions________ 39.499.9U 39.821,683 1316,252,403 1317,069,782 207.396 Other deductions__________ 131.970 1.062,40.' 1,698,896 Total fixed charges______ Income after fixed charges____ Contingent charges__________ Net income b_________ $51,998.10: $52,597,721 $108,759,138 $404,966,808 11.035.866 1,013.131 2.193,616 J 68.539,011 4174,621,507 1.012.573 8,107.747 8.103,286 $10,052,735 $1,181,013 d$74,646,758 dl82,724,793 Depreciation (way & structures and equipment)___________ Federal Income taxes_________ 16.873.944 3,291,044 16.919,588 1.726.024 134.617.362 15,430,363 134,740,319 8,462,760 Dividend appropriations: On common stock__________ On preferred stock................. 11.609.936 2,641,30: 9.313,648 2,593 416 40.962,260 12,852,758 43.399,385 9.166.383 Balance at E n d o f A u gu st 1939 1938 Selected A sset Item s — Investments in stocks, bonds, &c., other than those $636,031,526 Net balance receivable from agents and conductors.. $652,566,505 $464,097,038 19,697.402 21.41 .084 60.238,C13 1,519.476 58,301,608 47.455,013 122.320,755 308.863,105 16,231,828 1,244,606 7.199,558 $367,129,816 10.122,421 18.510.242 64,616.492 1,558.775 53,460,235 44.449.263 127,700.821 337.506.966 20,238.420 1,430 777 6.122.287 $1,128,578,486 SI.052.846.515 Selected Liability Item s — $168,368,873 $246,548,948 72,769 464 210.575.203 62.611.904 761.211.416 1.603.257 612.386.428 11.744,862 97.336,820 32,238.398 22.995.880 52,489,746.82'' $2,132,022,580 Tax liability: $57,707,377 $53,249,200 161 006.664 167 42 t.7"6 a Represents accruals, including the amount in default, b For 100 railways not In receivership or trusteeship the net income or deficit was as follows: August, 1900, $19,409,416; August, 1938 $11.974,409; 8 months 1939. $18,076,210: 8 months 1938. dS64,495,546. c Includes payments which will become due on account of principal of long-term debt (other than funded debt matured unpaid) within six months after close of month of report, d Deficit or other reverse items, e Includes obligations which mature not more than two years after date ol issue. “ Annalist” Index of Wholesale Commodity Prices De clined 0.3 of Point During Week Ended Oct. 28— Average for October Higher The “ Annalist” announced on Oct. 30 that wholesale com modity prices declined fractionally during the week ended Oct. 28, reflecting to some extent a virtual armistice on the Western Front. The “ Annalist” weekly index closed at 81.6 on Oct. 28, a loss of three-tenths of a point as compared with the previous week, but almost two points above last year. The following is also taken from the announcement: Wheat moved higher on reports o f drought while corn followed in its wake. Cotton improved but wool and silk declined. Most o f the specu lative items, such as hides, rubber, hogs and cocoa declined as speculators withdrew to safer ground. Commodity prices averaged 81.5% o f the 1926 base during October, the highest for any month since March o f last year and a gain of two-tenths o f a point as compared with the September average. “ ANNALIST” W EEKLY AND MONTHLY INDEXES OF WHOLESALE COMMODITY PRICES. (1926=100) 28, 1939 Oct. 21, 1939 Oct. 29. 1938 O ct., S e ’ t ., Oct. O ct., 1939 1939 1938 Farm products___________ Food products................... Textile products_________ Fuels...................... ............. Metals................................ Building materials_______ Chemicals......................... Miscellaneous___________ 76.7 71.8 77.1 87.2 99.2 72.3 85.8 76.5 76.8 71.9 77.3 87.2 99.2 72.3 85.8 77.1 78.1 72.1 59.6 84.2 97.7 69.0 87.1 71.1 76.1 71.7 76.1 87.1 99.2 72.0 85 6 76.4 77.2 74.1 67.9 84.1 98.3 70.9 85.2 74.0 78.0 72.3 59.1 84.6 96.7 69.0 87.1 71.2 All commodifies_____ 81.6 81.9 79 7 81.5 81.3 79.7 N ov. 4, 1939 Bureau of Labor Statistics’ Index of Wholesale Com modity Prices Declined 0.3% During Week Ended Oct. 28 During the fourth week of October, the Bureau of Labor Statistics’ index of wholesale commodity prices dropped 0.3% to 79.2% of the 1926 average, Commissioner of Labor Statistics Lubin reported on Nov. 2. “The decline repre sents the second noticeable decrease since the sharp rise in commodity prices incident to the outbreak of war in Europe," Mr. Lubin said. “Three of the 10 major commodity group indexes declined during the week; two remained un changed ; and five showed fractional advances. Except for the 1.2% decline in the foods group, the changes in all cases were less than 0.5%.” Commissioner Lubin continued: Lower average prices for farm products, China raw silk, and packer hides, more than offset price increases for Japan raw silk, Manila hemp, 6crap steel, and anthracite and resulted in a fractional decrease of the raw materials group. Semi-manufactured commodity prices declined 0.8% and the indexes for finished products and “ all commodities other than farm products” showed smaller decreases. The group of “ all commodities other than farm prod ucts and foods,” representing industrial commodities, advanced fractionally. Sharp declines in market prices of grains, livestock and poultry, and eggs caused the farm products group index to drop 0.4%. Other farm products, including fresh apples, lemons, oranges, peanuts, and potatoes advanced. The foods group declined 1.2% because of lower prices for butter, rye flour, hominy grits, dried fruits, fresh pork, lard, raw and granulated sugar, vegetable oils, and edible tallow. Prices for wheat flour, cured pork, dressed poultry, and oleomargarine averaged higher. Advancing prices for goatskins, packer cow hides, and sole leather re sulted in a fractional increase in the hides and leather products group. Shoe prices remained unchanged. In the textile products group higher prices were reported for silk, tire fabrics, and textile fibres. Average prices for cotton textiles and woolen and worsted materials were slightly lower. The index for the textile products gorup was 0.5% higher than the preceding week. Minor price fluctuations in fuel and lighting materials and metals and metal products resulted in no change in the index level for the two groups. Largely as a result of higher average prices for lumber and rosin, the index of the building materials group advanced 0.5%. Cattle feed prices increased 3.0% and prices of paper and pulp advanced slightly. The index for chemicals and drugs declined 0.1% while that for house-furnishing goods advanced 0.1%. The following tables show (1) index numbers for the main groups of commodities for the past five weeks and for Aug. 26, 1939 and the percentage changes from Aug. 26 and from Oct. 21 to Oct. 28, 1939; (2) important changes in subgroup indexes from Oct. 21 to Oct. 28, 1939. (1926=100) '-'ercenlaye Change from — Oct. Oct. Oct. Oct. Aug. C om m odity G roup s 28 1939 21 1939 Sept. 14 1939 7 1939 30 1939 26 1939 Oct. 21 to Oct. 28, All commodities____ 79.2 79.4 78.9 79.0 79.5 74.8 — 0.3 + 5.9 Farm products_____ Foods _ ________ . Hides & leather prod Textile products____ Fuel & light’s mat’ls r Metals & metal prod Building materials.. Chemicals and dru"s Housefurnishing g ’ds Miscellaneous______ Raw materials_____ Semi-manuf’ d article^ Finished products_ _ All commodities other than farm product All commodities other than farm product a^d fof'd'? _____ 67.2 72.3 05.5 75.2 74.6 96.3 03.0 77.9 89.3 77.4 72.1 K2.9 82.5 67.5 73.2 105.4 74.8 74.6 96.3 92.5 78.0 89.2 77.2 72.2 83.6 82.8 66.7 72.7 105.0 74.2 74.4 95.3 92.5 77.6 89.2 77.0 71.6 83.6 82.2 66.8 72.9 05.2 73.8 74.8 95.1 91.8 77.9 89.1 77.1 71.7 83.5 82 3 69 3 74.4 04.1 73.4 74.4 95.2 91.2 78.5 89.1 76.7 73.1 83.7 82.4 61.1 66.7 92.6 67.4 73.2 93.5 89.7 74.2 87.0 73.1 66.2 74.4 79.3 — 0.4 — 1.2 + 0.1 + 0.5 0.0 0.0 + 0.5 — 0.1 + 0.1 + 0.3 — 0.1 — 0.8 — 0.4 + 10.0 + 8.4 + 13.9 + 11.6 + 1.9 + 3.0 + 3.7 + 5.0 + 2.6 + 5.9 + 8.9 + 11.4 + 4.0 81.9 82.1 81.6 81.7 81.8 77.8 — 0.2 + 5.3 S4.2 84.1 83.7 83.7 «3.3 80.4 + 0.1 + 4.7 $116,945,297 $210,349,160 79 0 46.837 230.587 351 61.159.545 913.559,287 1.564.248 796 121.724 14.306 333 92.968.022 3 1.166.670 25.916 748 Y E A R S OLD 1939 A u g . 26 to Oct. 28, 1939 PERCENTAGE CHANGES IN WHOLESALE PRICE INDEXES OF IM PORTANT SUBGROUPS FROM OCT. 21 TO OCT. 28, 1939 In creases Other farm products........................1.2 Fruits and vegetables_____________3.6 Silk and rayon____________________ 5.0 Other textile products____________ 1.5 Lumber ________________________ 1.3 Other building materials__________ 0.7 Cattle feed________________ ______ 3 0 D ecreases Grains............^________ ___________1.3 Livestock and poultry______________2.8 Meats.____ _______________________ 2.6 Other fo o d s .._____________________ 2.6 Non-ferrous metals________________ 0.5 Dairy products____________________ 0.5 Wholesale Commodity Prices Declined Slightly During Week Ended Oct. 28 According to National Fertil izer Association The wholesale commodity price index compiled by The National Fertilizer Association declined slightly during the week ended Oct. 28, falling to 77.7 from 77.8 in the pre ceding week, which marked the high point for the year. A month ago the index was 76.9 and a year ago 72.9, based on the 1926-1928 average as 100. The lowest point reached this year, and the lowest since 1934, was 70.3, in the middle of August. The announcement by the Association, dated Oct. 30, continued: Last week’s decline in the index was due to lower quotations for farm products and foods. The trend o f prices o f industrial commodities con tinued upward, with the average for all commodities included in the index except farm products and foods rising to the highest point reached since October. 1937. A moderate decline took place in the food price average but it is still near the high point for the year. The decline in the index o f farm product prices was due to lower quotations for hogs, small grains and wool, which more than offset advances in cotton, corn and cattle. New high points for the year were registered by the indexes representing the prices o f fuels and building materials. After advancing for seven con secutive weeks the textile price average fell o ff last week, with a decline in raw silk prices being partly responsible for the drop. Volume 149 ONE HUN DRED—The Commercial & Financial Chronicle— YE A R S Thirty-three price ^series included in the index declined during the week and 20 advanced; in the preceding week there were 21 declines and 35 advances; in the second preceding week there were 23 declines and 34 advances. W E E K L Y W H O L E SA L E C O M M O D IT Y P R IC E I N D E X Com plied by the National Fertilizer Association (1926-1928=100) Per Cent Each Group Bears to the Total Index Latest Week Oct 28. 1939 Group Year Preced'g Month Ago Ago Week Oct 21. Sept. 30. Oct. 29, 1939 1938 1939 .3 F ood s__________ ____________ Fats and Otis......................... Cottonseed o il....................... Farm products______________ C otton____________________ Grains_____ _____ _________ Livestock_________________ Fuels.................. _....................... Miscellaneous com m od ities.. Textiles_____________________ M etals______________________ Building materials___________ Chemicals and drugs............... Fertilizer materials__________ Fertilizers................ ................... Farm m achinery____________ 75.3 53.8 64.5 63.8 49.9 59.9 65.4 *81.6 88.1 76.9 94.1 *87.4 93.5 72.9 77.3 95.0 75.8 55.1 65.4 64.3 49.7 60 4 66.1 81.2 88.1 77.3 94.1 86.0 93.4 72.9 77.3 95.0 75.1 57.0 66.9 63.2 49.4 60 8 64.5 80.0 88.2 72.1 93.6 85.5 92.4 72.5 77.2 95.0 72.0 55.5 71.2 64.6 48.8 49.6 72.4 75.6 78.3 59.5 90.9 81.5 93.6 70.5 77.7 97.2 100.0 All groups com bined______ 77.7 77.8 76.9 72.9 25.3 23.0 17.3 10.8 8.2 7.1 6.1 1.3 .3 .3 *1939 high point. Increase of 11.6% in Chain Store Sales in September Above Last Year, Reports New York Federal Re serve Bank The Federal Reserve Bank of New York reports in its “ Monthly Review” of Nov. 1 that in September total sales of the reporting chain store systems in the Second (New York) District were approximately 11 l % above last year, and A even after allowing for one more shopping Saturday this year than last, the increase in sales was the largest in a number of months. The Bank added: The grocery chain stores reported a substantial increase in sales, induced at least in part by the temporary spurt in sales o f some food staples following the outbreak o f war in Europe. The ten-cent and variety, shoe and candy chains continued to show increases in sales over a year ago. There was a net reduction o f about 3% in the total number of chain stores in operation between September, 1938 and September, 1939, grocery chains alone reporting a reduction o f approximately 8 % . As a result of the trend toward the operation o f fewer but larger units, sales per store o f the grocery chains increased about 26% over a year ago, compared with the advance o f approximately 16% in total sales. Sales per store o f all types o f chains showed an increase o f about 15%, in comparison with the advance o f about i m % in total sales. Percentage Change September, 1939 Compared with September, 1938 Type o f Chain Number o f Stores Total Sales Sales per Store G rocery___________________________ Ten-cent and variety________ ____ Shoe______________________________ Candy____________________________ — 7.9 + 0.6 — 0.2 — 3.0 + 15.8 + 10.9 + 4.3 + 2.9 + 25.8 + 10.2 + 4.4 + 6.1 All types........................................... — 2.8 + 11.6 + 14.9 New York Reserve Bank Reports Gain of 6% in Septem ber Sales of Department Stores as Compared with Year Ago Total September sales of the reporting department stores in the Second (New York) District were about 6% higher than last year, and the average daily rate of sales showed more than the usual rise from the August average, states the Federal Reserve Bank of New York in its Nov. 1 “ Monthly Review.” Department stores in all localities reported a larger volume of sales than in September a year ago, and the apparel stores registered a gain of almost 10%. The Bank went on to say: Stocks o f merchandise on hand in the department and apparel stores at the end o f September continued lower than a year ago. Collections in September were at a somewhat higher rate than a year ago both in the department and apparel stores. Owing especially to a large gain in the third week o f the month, total sales o f the reporting department stores in this District during the three weeks ended Oct. 21 were about 8% above the corresponding 1938 period. The daily rate o f sales for this portion o f October showed about the usual seasonal advance over September which was a relatively active month for retail trade. c-i Per Cent o f Ac counts Outstanding Aug. 31 Net Sales Slock Collected in on Hand September End of Feb. to Sept. Sept. Month 1938 1939 Percentage Change from a Year Ago Locality New York and Brooklyn___________ B u ffalo_____________________________ R ochester............ _ .................................. S y r a c u s e .._________________________ Northern New Jersey______________ B ridgeport_________________________ E lsew here.______ __________________ Northern New York State......... .. Southern New York State_______ Central Neiy York State.......... ...... Hudson River Valley D istrict___ Westchester and Stam ford.'______ Niagara Falls____________________ + 6.0 + 3.9 + 5.4 + 9.8 + 2.7 + 20.4 + 9.4 + 7.9 + 8.1 + 11.7 + 8.4 + 11.8 + 8.9 + 1.4 + 4.5 + 4.6 + 8.2 + 2.9 + 7.4 + 5.2 — 4.7 + 5.5 + 5.2 + 5.1 + 6.1 + 5.0 — 2.5 + 5.2 + 7.2 + 2.1 + 1.9 + 7.4 + 3.1 All department stores____________ + 5.8 + 2.4 — 0.6 Apparel stores.............. ..................... + 9.9 + 2 6 —4 6 — 46.0 40.9 50.6 40.1 38.0 34.8 32.3 46.7 42.4 54.4 41.1 38.1 38.3 33.4 — — 42.8 43.7 36.9 38.9 September sales and stocks in the principal departments are compared with those o f a year previous in the foUowing table: 2883 OLD Net Sales Percentage Change Set tember, 1939 Comp ared with September, 1938 Stock on Hand Percentage Change Sept. 30, 1939 Compared with Sept. 30, 1938 + 26.6 + 9.7 + 8.4 + 7.4 + 7.2 + 7.1 + 7.0 + 6.2 + 6.0 + 5.7 + 5.6 + 4.5 + 3.0 + 2.9 + 2.9 + 2.4 + 2.2 + 0.1 + 4.0 Classification — 2.6 — 0.2 — 11.1 — 3.3 — 9.0 — 5.3 + 0.9 — 1.9 — 1.3 — 6.7 — 5.1 — 7.3 + 6.1 + 8.2 — 2.4 — 1.7 + 14.9 + 5.0 — 3.5 Silverware and Jewelry_____________ W om en's and misses’ ready-to-wear. Linens and handkerchiefs__________ Silks and velvets___________________ C otton good s_______________________ Luggage and other leather goods — H osiery_____________________________ H om e furnishings__________________ Shoes_______________________________ W om en's ready-to-wear accessories. M en’s furnishings__________________ Books and stationery_______________ Toilet articles and drugs___________ Musical instruments and radio_____ Furniture__________________________ T oys and sporting g o o d s ..,................ W oolen goods______________________ M en's and boys’ wear______________ Miscell aneous______________________ Electric Output for Week Ended Oct. 28, 1939, 14.0% Above a Year Ago The Edison Electric Institute in its current weekly report estimated that production of electricity by the electric light and power industry of the United States for the week ended Oet. 28, 1939, was 2,538,779,000 kwh. The current week’s output is 14.0% above the output of the corresponding week of 1938, when production totaled 2,226,038,000 kwh. The output for the week ended Oct. 21, 1939, was estimated to be 2,493,993,000 kwh., an increase of 12.6% over, the like week a year ago. P E R C E N T A G E IN C R E A S E F R O M PR E V IO U S Y E A R Week Ended Oct. 7, 1939 M ajor Geographic Regions Week Ended Oct. 28, 1939 Week Ended Oct. 21, 1939 Week Ended Oct. 14, 1939 New England_________ M iddle A tlantic---------Central Industrial____ W est Central- _______ Southern States_______ R ocky M ountain_____ Pacific Coast_________ 14.1 11.8 17.7 8.7 16.0 16.1 8.2 12.3 11.3 15.8 7.5 10.3 16.5 9.6 14.6 13.2 18.7 8.9 12.8 20.4 7.0 x20.8 14.7 17.3 8.1 11.1 24.1 6.5 Total United States. 14.0 12 6 14 3 14.4 x Reflects hurricane condition in 1938. DATA FO R RECENT Week Ended 1939 1.......... 8 ................ 15................ 22................ 29................ 5 .............. .. 12................ 19................ 2 6 .............. .. 2 ............ 9 ............ 16............ 23_____ 30 _________ 7................ 14_________ 21____ Oct. 2 8 . . . _ July July July July July Aug. Aug. Aug. Aug. Sept Sept Sept Sent Sept O ct. Oct O ct. WEEKS 2,300,268 2.077.956 2,324.181 2,294,588 2,341,822 2,325,085 2.333,403 2,367,646 2,354,750 2,357,203 2,289,960 2,444,371 2,448,888 2,469.689 2.465.230 2,494.630 2,493,993 2.538.779 (TH O U SA N D S O F 1938 2,014,702 1,881,298 2,084,457 2,084,763 2,093,907 2,115,847 2,133,641 2,138,517 2,134,057 2.148.954 2,048,360 2,214.775 2,154.218 2,139,142 2,154,449 2,182,751 2,214.097 2.226.038 K TLO W AT T-H O U R S) Percent Change 1939 from 1938 1937 + 14.2 + 10 5 + 11.5 + 10.1 + 11.8 + 9.9 + 9.4 + 10 7 + 10.3 + 9.7 + 11.8 + 10.4 + 13.7 + 15.5 + 14.4 + 14 3 + 12.6 + 14 0 2,238,268 2,096,266 2.298,005 2.258.776 2.256,335 2,261.725 2,300,547 2,304.032 2,294,713 2.320,982 2,154,276 2,280,792 2,265,748 2.275.724 2.280.065 2,276.123 2.281.636 2.254,047 1932 1,456,961 1,341,730 1,415,704 1.433.993 1,440,386 1,426,986 1,415,122 1.431.910 1,436,440 1,464,700 1,423 977 1,476.442 1.490,863 1,499.459 1,506,219 1,507,503 1,528,145 1,533.028 1929 1,723,428 1,592,075 1,711.625 1,727.225 1.723.031 1,724,728 1,729,667 1,733,110 1.750,056 1.761,594 1,674,588 1,806.259 1,792,131 1,777.854 1.819,276 1,806.403 1.798,633 1,824,160 Glass Works at Sandwich, Mass. The yards and buildings of this establish ment cover six acres of ground. It employs 225 workmen, who, with their families, occupy 60 dwelling houses. The raw ma terials used, per annum, are, glass, 600 tons; red lead, 700,000 pounds; pearlash, 450,000 pounds; Salt Petre, 70,000 pounds. They consume 1,100 cords of pine wood, 700 cords of oak wood and 100,000 bushels of bitum inous coal. Seventy tons of hay and straw are used for packing the glass. The amount of glassware manufactured is $300,000 per annum; said to be superior to any other manufactured in America, and equal to any in Europe. By the application of heated air from the steam engine, to pans contain ing sea water, they manufacture about 3,000 bushels of salt per annum; and all the ashes is leached, and the ley converted to potash. It is said that the mere saving to the com pany, by this species of economy, which is carried through every department, is suf ficient to pay a handsome dividend on the stock. HUNT’ S MERCHANTS’ MAGAZINE, October, 1839 2884 ONE HUNDRED The — Commercial & Financial Chronicle — Production of Electric Energy in the United States for August and September, 1939 The production of electric energy for public use during the month of September, 1939, totaled 10,935,85S,000 kwh., according to reports filed with the Federal Power Commis sion, This represents an increase of 13% when compared with the same month in the previous year. The average daily production of electric energy for public use reached an all-aime high of 364,529,000 kwh. during September, which was 2.3% more than the average daily production in August. The production of electric energy by electric railways, electric railroads, and other plants which gen erate principally for their own use totaled 175,016,000 kwh., making a total production reported to the Commission for the month of September of 11,110,874,000 kwh., or an aver age daily production of 370,362,000 kwh. The production by water power in September amounted to 3,104,OSS,000 kwh., or 28% of the total output for pub lic use. Reports were received during October indicating that the capacity of generating plants in service in the United States on Sept. 30, 1939, totaled 40,204,000 kwh. This is a net increase of 339,000 kwh. over that previously reported in service on Aug. 31, 1939. Occasionally plants are placed in service but are not reported promptly, so that the net in crease shown for any one month does not necessarily mean that the entire increase was made during that month but only that the changes were reported to the Commission since the previous monthly report was issued. P R O D U C T IO N OF E L E C T R IC E N E R G Y F O R P U B L IC USE IN T H E U N IT E D ST A T E S (In Thousands o f Kilowatt-Hours) By Fuels By Water Power Division August, 1939 September August, 1939 1939 170,186 New England________ M iddle A tlantic.......... 465,056 East North C en tra l.. 192,058 132,384 W est N orth C en tral.. South A tlantic............ 413,548 460.402 East South C e n tra l.. 17,462 W est South C en tral-558,061 M ountain____________ P a cific_______________ 1,101,103 Total September August, 1939 1939 September 1939 131,695 516,275 545,913 686,461 677,608 415,942 2,226,966 2,219,165 2,692,022 2,635,107 178,290 2,264,143 2,353,719 2,456,201 2,532,009 114,418 531,093 543,410 663,477 657,828 297,376 865,290 962,592 1,278,838 1,259.968 121,295 452,189 176,650 581,697 628,839 624,017 627,609 641,479 644,755 17,146 133,974 548,405 138.736 692,035 687,141 949,177 256,603 263,426 1,357,706 1,212,603 United States tota l. 3,510,260 3,104,638 7,539,656 7,831,220 11049 916 10935 858 P R O D U C T IO N OF E L E C T R IC E N E R G Y F O R P U B L IC USE. Production Kilowatt-Hours O ct. N ov. D ec. Jan. Feb. M ar. Apr. M ay 31, 1938....... ............................ 30, 1938................................... 31 i 1938 __________________ 3 1 ,1 9 3 9 ..... .............................. 28, 1939................................. .. 3l| 1939 ..... ....................... .. 30, 1939___________________ 311 1 9 3 9 . _____ ___________ July 31, 1939 ________________ A ug. 3 i; 1939_______ _____ _____ S e p t.30, 1939_ _ _____________ % Change from Previous Year 112,990,000,000 113.415.000. 000 114.197.000. 000 115.151.000. 000 116.045.000. 000 117.081.000. 000 118.053.000. 000 119,265,000,000 120,538,000,000 121,610,000,000 122.609.000. 000 123.838.000. 000 12 M on tis Ending— —5 —5 —4 —3 —2 0 + 1 + 3 + 5 + 7 + 8 + 9 Note— Since the above data show production by 12-month periods, all seasons of the year are included in each total, and the effect of seasonal variations is largely eliminated. T O T A L M O N T H L Y P R O D U C T IO N OF E L E C T R IC IT Y F O R P U B L IC USE IN K IL O W A T T H OU RS. % Produced by Water Power % Change 1938 Months 1937 to 1938 1939 January_____ February____ M arch_______ A pril------------M a y _________ June____ ____ July________ August______ September___ O ctober______ N ovem ber___ Decem ber____ 9,465,000,000 8,565,000,000 9,321,000,000 8,806,000,000 8,961,000,000 9,081,000,000 9,405,000,000 10.051,000,000 9,707,000,000 10,076,000,000 10,101,000,000 10,658,000,000 T otal............ 10,419,000,000 9,459,000,000 10,357,000,000 9,778,000,000 10,173.000,000 10,354,000,000 10,477,000,000 11,050,000,000 10,936,000,000 114,197,000,000 —5 —5 —7 — 10 —9 —9 —8 —4 —4 —2 —4 + 8 —4 1938 to 1939 + + + + + + + + + 10 10 11 11 14 14 11 10 13 1938 1939 38 42 43 46 43 41 39 38 36 34 35 36 36 40 43 45 41 36 33 32 28 39 Note— A bove data solicited from all plants engaged in generating electric energy for public use, and. in addition from electric railways, electrified steam railroads, and certain miscellaneous plants which generate energy for their own use. Accurate data are received each m onth, representing approximately 98% of the total pro duction shown: the remaining 2 % of the production is estimated and corrections are made as rapidly as actual figures are available. Thus, the figures shown for the current month are preliminary while those for the preceding months are cor rected in accordance with actual reports received and vary slightly from the pre liminary data. C o a l S to c k and C o n s u m p tio n The total stock of coal on hand at electric utility power plants on Oct. 1, 1939, was 9,108,470 tons. This was an increase of 4.6% when compared with Sept. 1, 1939, and a decrease of 2.4% from Oct. 1, 1938. Of the total stock, 7,923,073 tons were bituminous coal and 1,185,397 tons were anthracite. Bituminous coal stock increased 5.6%, while anthracite stock decreased 1.7% when compared with Sept. 1, 1939. Electric utility power plants consumed approximately 4,214,560 net tons of coal in September, 1939, of which 4,024,987 tons were bituminous coal and 189,573 tons were anthracite, increases of 4.7% and 2.7%, respec tively, when compared with the preceding month. In terms of days’ supply, which is calculated at the current rate of consumption, there was enough bituminous coal on hand Oct. 1, 1939, to last 59 days, and enough anthracite for 188 days’ requirements. YE A R S OLD N ov. 4, 1939 Bank Debits 1% Higher Than Last Year Debits to individual accounts, as reported by banks'rin leading cities for the week ended Oct. 25 aggregated $8 ,1 0 4 ,000,000, or 1 % above the total reported for the preceding week, which included only five business days in most of the reporting cities, and 1 % above the total for the corresponding week of last year. Aggregate debits for the 141 cities for which a separate total has been maintained since January, 1919, amounted to $ 7 ,407 ,00 0,00 0, compared with $7 ,259,000,000 the pre ceding week and $7 ,374,000,000 the week ended Oct. 26^of last year. These figures are as reported on Oct. 30, 1939, by the Board of Governors of the Federal Reserve System. S U M M A R Y B Y F E D E R A L R E S E R V E D IS T R IC T S Federal Resene District 3— Philadelphia__________ T o t a l------------------------------ Week Ended— N o. of Center Incl. Oct. 25, 1939 Oct. 18, 1939 Oct. 26, 1938 17 15 18 25 24 26 41 16 17 28 18 29 8474,326,000 3,419,922,000 404.897.000 549.772.000 317.205.000 244.750.000 1,124,222,000 262,152.000 157,960,000 267,223,000 218.703.000 662.413.000 $458,542,000 3.101.655.000 403.583.000 566.699.000 343.811.000 270.657.000 1.185.601.000 285.515.000 173.292.000 295.712.000 238.909.000 680.697.000 $456,102,000 3.480.535.000 388.227.000 465.303.000 284.863.000 223.035.000 1.244.543.000 233.659.000 148.043.000 250.615.001 193.874.000 622.765.000 274 $8,103,545,000 $8.00+673,000 $7,991,564,000 Country’s Foreign Trade in September— Imports and Exports The Bureau of Statistics of the Department of Com merce at Washington on Oct. 26 issued its statement on the foreign trade of the United States for September and the nine months ended with September, with comparisons by months back to 1934. The report is as follows: Foreign trade o f the United States increased in value during September as compared with both August and the corresponding month o f 1938. The rise in exports represented approximately the usual seasonal change, although the movements of both export and import commodities during September o f this year were influenced by unusual shipping and other war-time conditions. Imports into the United States during September were featured by marked increases in the movements of crude materials and certain foodstuffs into consumption channels from bonded customs warehouses. Mainly because o f these large withdrawals, the value o f total imports for consumption was the largest for any month o f this year. The excess o f withdrawals from warehouses over entries into warehouses during September was especially large in the case of sugar, whisky, wines, wool, zinc and manganese. Goods actually imported into this country during September showed only a moder ate increase as compared with August. Imports for consumption (goods which entered merchandising channels immediately upon arrival in this country, plus withdrawals for consumption from warehouses) amounted to $199,483,000 in September as compared with $180,338,000 in August 1939 and with $172,909,000 in September 1938. The value o f general imports (goods entered for storage in bonded ware houses plus goods which entered merchandising channels immediately upon arrival in the country) was $181,461,000 in, September as compared with $175,755,000 in August 1939 and with $167,592,000 in September 1938. The increase in the value o f United States exports (including re-exports) from $250,837,000 in August to $288,573,000 in September was approxi mately 15%. This advance, revealed on Oct. 14 in preliminary totals, was mainly accounted for by expansion in shipment o f agricultural products. Exports of raw cotton increased from a value of $11,869,000 in August to $35,661,000 in September, while other agricultural exports advanced from $32,591,000 to $38,918,000 In addition to the increase in cotton, there were increases in exports o f dried and canned fruits, lard, flour and corn. Though tobacco shipments were unusually low for this season of the year, they nevertheless showed some increase over August shipments. After falling off in the earlier months of this year from the higher totals of last year, the value of total agricultural exports rose to $74,579,000 in September, or to nearly the same value as in September 1938. Though exports of grain, fresh fruit and tobacco were much smaller in September than a year before, the increase in cotton exports from the low level o f last year almost counterbalanced the declines in other items. Shipments of cotton to the United Kingdom, Italy. Spain and to a number o f the other European countries were much larger in September than in September 1938. Shipments o f cotton to Germany and Poland were, o f course, negligible and those to France and Japan were considerably smaller than in the correspond ing month o f 1938. Exports of nonagricultural products, as a group, were 3% larger in value in September than in August, primarily as a result o f increased shipments o f certain crude materials and semi-manufactured products. There was expansion during September in exports o f coal and crude petroleum to Canada, in steel scrap and copper exports to Japan and in iron and steel manufactures and chemical exports to various countries. Principally because of marked declines in shipments of motor trucks and aircraft, and o f some reduction in machinery exports. the value of finished manufactured exports dropped from $133,817,000 in August to $129,415,000 in September. The latter figure compares, however, with $112,377,000 recorded for exports o f finished manufactures in September 1938. The value o f exports of a number o f manufactured articles, including passenger automobiles, industrial machinery, iron and steel products, refined mineral oils, rubber manufactures, cotton manufactures, and chemi cals was larger in September than in the corresponding month o f 1938. In addition to the increase in exports o f United States merchandise re corded for September, reexports of imported merchandise increased from $2,691,000 in August to $4,533,000 in September. The figures show de cidedly larger re-shipments in September than usual of imported crude rubber, vegetable oils, coffee, and cocoa. The increase o f 15% in the value of total imports for consumption as compared with the corresponding month of 1938 was mainly accounted for by the large entries of a few principal commodities in September. These included raw silk, unmanufactured wool, nickel, Cuban sugar, whisky, and wines, for each o f which there was recorded in September the highest monthly imports in recent years. Moreover, crude rubber, newsprint and ONE HUN DRED T h e — Volume 149 tin imports were also decidedly above the totals o f a year before. The value o f total imports o f these nine items amounted to nearly $78,000,000 in September 1939 as compared with approximately $50,000,000 in Septem ber, 1938. The increase in imports for consumption o f sugar—an increase which resulted almost entirely from a rise in imports from Cuba— amounted to approximately $4,000,000 and was apparently influenced by heavy con sumer buying o f refined sugar in the United States immediately after the outbreak of war in Europe, which also provided a stimulus to the price of sugar. The suspension o f quotas after Sept. 11 retarded the rate of new shipments from Cuba towards the end o f the month. Imports o f raw silk rose in value from $10,540,000 in August to $16,125,000 in September. The sharp upward price tendency during recent months has influenced heavier buying and the month’s import value was more than 50% above that o f September and 88% above the value of silk imports in September o f last year. M E R C H A N D IS E T R A D E B Y M O N TH S E xports, In c lu d in g R e -e x p o r ts , G e n e ra l Im p o rts , a n d B a la n ce o f T ra d e September 9 Months Ended Sept. Exports and Imports 1938 M dse exports b alan ce.. 1939 1938 1,000 Dollars 288,573 181,461 1,000 Dollars 2,295,447 1,434,871 1,000 Dollars 2,184,894 1,620,646 860,576 564,248 78.743 Month or Period Increase f + ) Decrease (— ) 1939 1,000 Dollars 246,335 167,592 E xports_________ _______ Im ports________________ 107,112 1,000 Dollars — 110,553 + 185,775 1934 1935 1936 1937 1938 1939 1.000 Dollars 172,220 162,752 190,938 179,427 160,197 170,519 161,672 171,984 191,313 206,413 194,712 170,654 Exports, Including Re-exports—January_____________ February____________ M arch______________ A pril_________________ M a y _________________ June________________ July.................... ............ A ugust______________ Septem ber__________ O ctober. _________ N ovem ber___________ D ecem ber____________ 1,000 Dollars 176,223 163,007 185,026 164,151 165,459 170,244 173,230 172,126 198,803 221,296 269,838 223,469 1,000 Dollars 198,562 182,024 195,113 192,795 200,772 185,693 180,390 178,975 220,539 264,949 226,364 229,800 1,000 Dollars 222,665 233,125 256,566 268,945 289,922 265,341 268,184 277,031 296,579 332,710 314,697 323,403 1,000 Dollars 289,071 261,935 275,308 274,472 257,276 232,726 227,535 230,790 246,335 277,668 252,381 268,943 1,000 Dollars 212,909 218,645 267,782 230,969 249,485 236,064 229,629 250,837 288,573 9 mos. ended Sept___ 1,561,022 1,568,271 1,734,864 2,378,357 2,295,447 2,184,894 12 m os. ended D ec___ 2,132,800 2,282,874 2,455,978 3,349,167 3,094,440 General Imports— January_____________ February____________ M arch_______ ______ A pril______________ . M a y ________ _______ ____ June__________ July........... ..................... A u g u s t ....... .......... ...... September___________ October______________ N ovem ber.......... .......... D ecem ber____________ 135,706 132,753 158,105 146,523 154,647 136,109 127,229 119,513 131,658 129,635 150,919 132,258 166,832 152,491 177,356 170,500 170,533 156,754 176,631 169,030 161,647 189,357 169,385 186,968 187,482 192,774 198,701 202,779 191,697 191,077 195,056 193,073 215,701 212,692 196,400 245,161 240,444 277,709 307,474 286,837 284,735 286,224 265,214 245,668 233,142 224,299 223,090 208,833 170,689 162,951 173,372 159,827 148,248 145,869 140,809 165,516 167,592 178,024 176,187 171,347 178,246 158,072 190,481 186,291 202,493 178,922 168,925 175,755 181,461 1936 9 Months Ended Sept. Exports and Imports 1938 Exports (U. S. m d s e .).. Imports for consumption 1939 1938 1,000 Dollars 243,595 172.909 1,000 Dollars 284,041 199.483 1,000 Dollars 2,266,907 1.434,150 1,000 Dollars 2,156,422 1.621.946 Increase ( + ) Decrease (— ) 1939 1,000 Dollars — 110,485 + 187.796 Month or Period 1934 1935 1936 1937 1938 1939 Exports— U. S. Merchandise—■ January______________ February____________ M arch_______________ April _ _____________ M a y _____________ __ June_____ ________ July__________________ August _________ September . ______ O ctober______________ N ovem ber . ______ Decem ber. _ .. 1,000 Dollars 169,577 159,617 187,418 176,490 157,161 167,902 159,128 169,851 188,860 203,536 192,156 168,442 1,000 Dollars 173,560 160,312 181,667 160,511 159,791 167,278 167,865 169,683 196,040 218,184 267,258 220,931 1,000 Dollars 195,689 179,381 192,405 189,574 197,020 181,386 177,006 175,825 217,925 262,173 223,920 226,666 1,000 Dollars 219,063 229,671 252,443 264,627 285,0S1 256,481 264,613 273,561 293,374 329,373 311.212 319,431 1,000 Dollars 285,772 259,160 270,429 271,508 253,713 229,554 224,866 228,312 243,595 274,059 249,844 266,358 1,000 Dollars 210,258 216,121 263,996 227,618 246,139 233,365 226,738 248,146 284,041 9 m os. ended Sept___ 1,536,002 1,536,708 1,706,210 2,338,913 2,266,907 2,156,422 12 mos. ended D e c _ 2,100,135 2.243,081 2,418,969 3,298,929 3,057,169 _ Imports for Consumption— January_____ ________ February____________ M arch_______________ A p r i l . ______ _______ M a y __________ June_________________ July___________ _____ A u gust. . ________ September . _____ O ctober______________ N ovem ber___________ December ______ __ _ 128,976 125.047 153,396 141,247 147,467 135,067 124,010 117,262 149,893 137,975 149,470 126,193 168,482 152,246 175,475 166,07C 166,756 155,313 173,096 180,381 168.683 189,806 162,828 179,760 186,377 189,590 194,296 199,776 189,008 194,311 197,458 200,783 218,425 213.419 200,304 240,230 228,680 260,047 295,705 280,899 278,118 278,300 262,919 248,730 233,959 226,470 212,382 203,644 163,312 155,923 173,196 155,118 147,123 147,779 147,767 171,023 172,909 178,447 171,668 165,359 169,353 152,577 191,269 185,916 194,185 178,374 170,451 180,338 199,483 9 mos. ended Sept_ 1,222,365 1,506,512 1,770,025 2,367,357 1.434,150 1,621,946 _ _ 12 mos ended D e c _ 1.636.003 2.038.905 2.423.977 3.009,852 1.949,624 G O LD A N D S IL V E R B Y M O N T H S E x p o rts. Im p o rts an d N et B a la n ce September 9 Months Ended Sept. Exports and Imports 1938 1939 1938 Gold— E xports________ _____ Im ports__________ _____ 1.000 Dollars 11 520,907 1.000 Dollars 15 326,089 1,000 Dollars 5,843 998,751 1,000 Dollars 472 2,885,745 Import balance____ 520,896 326,074 992,909 2,885,273 Silver— Exports________________ I m p o r ts .. .............. . . 1,463 24,098 1,292 4,639 3,657 158,940 11,483 70,061 22.635 3.347 155.283 58.578 Increase ( + ) Decrease (— ) 1939 Imnort balance_____ 1,000 Dollars + 5,371 + 1,886,993 + 7,827 — 88,878 1937 Silver 1938 1939 1937 1936 1938 1939 1.000 1,000 1,000 1,000 1,000 1.000 1.000 1,000 Exports— Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars 2.112 355 1,753 1,671 5,067 81 January____ 338 11 1,341 174 233 2,054 15 1,811 February___ 23,637 191 2,337 1,546 1,923 39 20 53 M arch ____ 2,315 145 535 1,668 240 2,054 13 231 A p ril_____ 51 5 1,841 212 317 4 203 611 36 M a y _______ 254 1,144 197 81 131 19 303 77 J u n e _____ 214 65 138 193 640 695 206 9 J u ly_______ 278 401 32 169 17 13 143 937 A u g u s t___ 1,463 1,704 285 1,292 42 129 11 15 September 1,259 232 1.468 380 16 October . 117 14 823 30,084 1,611 527 127 Novem ber 1,344 236 15,052 536 99 16 D ecem ber. . 9 mos. end. S ept____ 12 mos. end. D e c _____ Imports— January___ F eb ru ary.. M arch ____ A p ril_____ M ay _______ June_______ Ju ly_______ A u g u st____ SeptemberOctober N ovem ber. D e ce m b e r .. 27,191 652 5,842 27,534 46,020 5,889 45,981 7,002 7,795 28,106 169,957 277,851 16,074 67,524 171,866 218,929 75,962 57,070 121,336 120,326 154,371 215,825 155,366 232,103 175,624 105,013 145,623 90,709 52,194 33,033 7,155 8,211 52,947 71,236 52,987 55,438 63,880 165,990 520,907 562,382 177,782 240,542 472 156,427 223,296 365,436 606,027 429,440 240,450 278,645 259,934 326,089 8,350 10,899 3,657 11,965 12,042 7,082 58,483 17,536 8,115 4,490 4,989 23,981 6,574 16,637 8,363 26,931 4,451 2,267 2,846 14,080 5,589 2,821 3,165 6,025 4,476 4,964 8,427 5,701 10.633 23,151 28,708 15,488 14,440 15,757 17,952 19,186 18,326 4,985 24,098 25,072 24,987 21,533 10,328 9,927 7,207 7,143 6,152 14,770 5,531 4,365 4,639 52,392 158,940 70,061 9 mos. end. S ept____ 792,157 1455,587 998,751 2885,745 149,168 12 mos. end. 182,816 D e c ____ 1144,117 1631,523 1979,458 11,483 91,877 230,531 Analysis of Imports and Exports of the United States in the First Nine Months The Department of Commerce’s report of the character of the country’s imports and exports reveals that in the first nine months 3 0 .9 % of domestic exports and 4 8 .5 % of im ports for consumption were agricultural products. The complete statement, also indicating how much of the mer chandise imports and exports consisted of crude or of partly or wholly manufactured products, is given below: A N A L Y S IS B Y E C O N O M IC G RO U PS OF D O M E S T IC E X P O R T S F R O M A N D IM P O R T S IN T O T H E U N IT E D ST A TE S F O R T H E M O N T H OF S E P T E M B E R A N D T H E F IR S T N IN E M O N T H S O F 1939 A N D 1938 (Value in 1,000 Dollars) September Class E xports o f U n ite d S tates M e rch a n d ise a n d Im p orts fo r C o n s u m p tio n 2885 Gold Month or Period 1938 Value 9 mos. ended Sept___ 1,242,243 1,501,775 1,768,339 2,427,446 1,434,871 1,620,646 12 mos. ended D ec___ 1.655.055 2.047.485 2.422.592,3.083.668 1.960.428 September Y E A R S OLD C o m m ercia l & F in a n cia l C h r o n ic le — Domestic Exports— Crude materials_____ Agricultural N on-agricultural_ _ Crude foodstuffs____ _ Agricultural_______ N on-agricultural_ _ M fd . foodstuffs & bev Agricultural_______ N on-agricultural_ _ Semi-manufactures___ Agricultural_______ N on-agricultural_ _ Finished manufactures Agricultural_______ N on-agricultural. . . 59,605 44,776 14,830 14,254 14,087 168 17,134 15.58C 1,555 40,224 176 40,048 112,377 576 111,801 N ine Months Ended September 1939 Per Cent Value 1938 Per Cent Value 1939 Per Cent Value 412,952 18.2 327,209 24.5 66,847 23.5 18.4 46,470 16.4 264,086 11.6 193,777 7.2 148,865 133,432 6.1 20,377 6.6 9.4 5.9 2.6 213,322 7,477 87,357 9.4 7,356 2.6 212,269 5.8 86,390 120 1,053 967 0.1 7.5 128,666 141,175 7.0 21,309 5.7 6.4 19,615 130,214 6.9 119,100 5.3 1,694 0.4 0.6 0.6 9,566 10,961 16.5 58,993 20.8 371,737 16.4 412,207 0.1 319 1,740 0.1 0.1 1,998 16.4 58,674 20.7 369,997 16.3 410,209 46.1 129,415 45.6 1,140,231 50.3 1,188,475 0.2 0.2 818 0.3 5,479 6,063 45.9 128,596 45.3 1,134,752 50.0 1,182,412 Per Cent 15.2 9.0 6.2 4.1 4.0 6.6 6.0 0.5 19.1 0.1 19.0 55.0 0.3 54.8 T otal exports of U . S merchandise_____ 243,595 100.C 284,041 100.C 2,266,907 100.C 2,156,422 100.0 602,674 26.6 418,441 19.4 Agricultural_______ 75,194 30.9 74,579 26.2 N on-agricultural_ 168,401 69.1 209,462 73.8 1,664,233 73.4 1,737,981 80.6 _ Imports for Consumption — Crude materials_____ Agricultural______ N on-agricultural___ Crude foodstuffs_____ A g ric u ltu ra l______ N on-agricultural_ _ M fd . foodstuffs & be v Agricultural_______ N on-agricultural___ Semi-manufactures___ Agricultural______ N on-agricultural_ _ Finished manufactures Agricultural. ____ N on-agricultural_ _ 52,355 30.3 67,606 37,302 21.6 50.723 15,054 8.7 16,884 20,435 11.8 19,465 19,680 11.4 18,597 0.4 755 868 28,641 16.6 38,412 22,857 13.2 28,379 5,684 3.3 10,033 33,607 19.4 38,275 2.1 3.642 3,301 29,965 17.3 34,974 37,870 21.9 35,725 0.2 319 396 37,551 21.7 35,329 33.9 25.4 8.5 9.8 9.3 0.4 19.3 14.2 5.6 19.2 1.7 17.5 17.9 0.2 17.7 416,872 292,421 124,451 192,113 182,692 9,522 239,574 196,804 42,771 278,817 36,308 242,509 306,773 3,523 303,260 29.1 20.4 8.7 13.4 12.7 0.7 16.7 13.7 3.0 19.4 2.6 16.9 21.4 0.2 21.1 512,166 368,839 143,326 212,384 203,083 9,300 234,175 186,462 47,713 337,195 32,072 305,123 326,027 4,243 321,784 31.6 22.7 8.8 13.1 12.5 0.6 14.4 11.5 2.9 20.8 2.0 18.8 20.1 0.3 19.8 T otal imports for consum ption________ 172,909 100.0 199,483 100.0 1,434,150 100.0 1,621,946 100.0 A gricultu ra l.. ._ . 83,800 48.5 101,395 50.9 711,647 49.6 794,700 49.0 N on-agricultural_ _ 89.109 51.5 98.087 49.1 722,503 50.4 827.246 51.0 Manufacturers’ New Orders Increased 61% in Sep tember, Reports Conference Board — Greatest Monthly Advance in Over Ten Years New orders received by manufacturing industry rose 61 % in September, the greatest monthly advance in more than a decade, according to data on industrial orders, shipments and inventories received directly from nearly 200 repre sentative manufacturing concerns by the Division of Indus trial Economics of the Conference Board. The volume of new orders was nearly double that in September of last year. Backlogs of unfilled orders rose 2 2 % over those reported for the end of August and were 6 2 % higher than in September, 1938. The rise in new orders was most marked in the iron and steel and railroad equipment industries. A greater-than-average increase was also reported in the paper manufacturing industry. The Board’s announcement, issued Oct. 30, further said: ONE HUNDRED—The Commercial & Financial Chronicle YEARS OLD Nov. 4, 1939 2886 — Shipments, reported by 155 companies, rose 7% over those for August. They were 22% higher than a year ago. Value o f inventories o f 163 concerns at the end o f September showed a decline o f 1% during the month. Stocks o f raw materials advanced, but this rise was more than offset by a reduction in inventories o f finished goods. At the end o f September, total stocks were equivalent to about 2M months' shipments, compared with stocks adequate for three months’ shipments at the end o f August. A year ago they amounted to better than 3 ! 4 months' shipments at the rate o f business then prevailing. The following table shows the changes in the various operating factors during September, in comparison with the levels o f August, 1939, and of September, 1938: N o. of C om pan ies Reporting Inventories____________________________ Shipments_____________________________ New orders____________________________ Unfilled orders_____________ ____ In crea ses S ep t., 1939, % Change fr o m 1939 A u g ., S ep t., —1 +7 + 61 + 22 163 155 87 72 1938 —7 + 22 + 93 + 62 in I llin o is E m p lo y m e n t a n d P a y r o lls A u g u s t to S e p te m b e r A bove A verage fro m Reports from 6,708 manufacturing and non-manufacturing establishments in Illinois employing 619,795 persons during September, indicate an increase of 2 .4 % in employment and an increase of 2 .0 % in payrolls from August to Septem ber, 1939, it was announced Oct. 26 by the Division of Research and Statistics of the Illinois Department of Labor. The announcement explained these changes as follows: The August to September, 1939 increases in employment and payrolls exceed the average increase o f 1.1% in employment and o f 0.2 of 1% in payrolls from August to September for the previous 16 years (i. e., 1923 through 1938). Records o f the Division o f Statistics and Research show that there were increases in employment from August to September during 13 of the previous 16 years, and that there were increases in payrolls during only 9 o f the 16 years. Comparison o f the September, 1939 all industries indexes o f employment and payrolls with those for September, 1938, show that employment was 8.8% higher and that payrolls were 13.0% higher than during the same month o f last year. A comparison o f the current month’s indexes with those for September, 1937 is also pertinent since employment in September. 1937 was the highest for any month since 1930. The comparison shows that employment during the current month was 12.8% lower and that payrolls were 13.1% lower than during September, 1937. Reports from 2.405 manufacturing establishments in Illinois employing 411,842 persons in September, indicate an increase o f 2.0% in employment and and an increase o f 2.0% in payrolls from Augsut to September, 1939. Analysis of changes in employment and payrolls for manufacturing indus tries from August to September for the previous 16 years shows an average increase o f 1.0% in employment and less than 0 1 of 1% change in pay rolls. Increases in employment from August to September were reporetd in 12 of the previous 16 years and increases in payrolls were reported during only 8 o f the 16 years. Reports from 4,303 non-manufacturing establishments employing 207,953 persons during September, show an increase of 3.2% in employment and an increase o f 2 0% in payrolls from August to September. The 10-year (1929-1938) average August to September change in em ployment in non-manufacturing industries was an increase of 1.6% and the average change in payrolls was an increase o f 0.8 o f 1% . Increases in both employment and payrolls were reported in 7 o f the 10 years. A v era ge W e ek ly E a r n in g s D u r in g S ep tem b er The average weekly earnings of the 619,795 persons covered by September reports were $26.70. The average weekly earnings for workers in manu facturing industries were $26.80 and for non-manufacturing industries were $26 50- Comparison o f average earnings for August and September shows » decrease from $26.80 to $26.70 per week for all industries, a decrease from $26.81 to $26.80 for manufacturing industries, and a decrease from $26.79 to $26-50 per week for non-manufacturing industries. The Pacific Mill at Lawrence A c c o r d in g good ren ce is h e n s iv e but to a u th o r ity , th e L o w e ll P a c ific la r g e s t m ill in th e th e th e fin e s t and th e w o r ld . k in d s of “ J o u r n a l,” M ills at m ost com p re It m akes n on e good s, and s u c c e s s o f i t s o p e r a t i o n s is l o o k e d g re a t in te r e s t b y m a n u fa c tu r e r s . s u r fa c e of acres— th e th is im m e n se la r g e s t m ill in Law th e L iv in g C o s t o f W a g e E a r n e r s In c r e a s e d 2 % B e tw e e n A u g . 1 5 a n d S e p t . 15 R e p o r t s T h e C o n f e r e n c e B o a r d — F o o d P r ic e s U p 5 .2 % After declining almost without interruption for nearly a year, the cost of living of wage earners in the United States rose 2 % between Aug. 15 and Sept. 15, bringing living costs to the level of Sept., 1938, according to the regular monthly survey made by the Division of Industrial Economics of The Conference Board, issued Nov. 1. The survey shows that living costs were 15% lower than in 1929 but 19.8% higher than the low point that was reached in 1933. The Board further said: Food prices advanced 5.2% from August to September, bringing them to a level 0.4% higher than in Sept., 1938, 32.1% higher than at the low point o f 1933, but 26.8% lower than in Sept., 1929. Rents in September averaged 0.2% higher than in August, 0.1% lower than in Sept., 1938, 6.3% lower than in Sept., 1929, and 38.0% higher than at the beginning of 1934, their low point. Clothing prices increased 0.4% from August to September. They were 1.5% lower than in Sept., 1938, 26.8% lower than in Sept., 1929, but 18.9% higher than at the low o f 1933. Coal prices advanced 0.6% from August to September. They were 1.5% lower than a year ago, and 9.1% lower than 10 years ago. The cost o f sundries averaged 0 1 % higher in September than in August, 0.2% higher than in Sept., 1938, 7.5% higher than at the low point o f 1933, and only 2.1% lower than in September, 1929. The purchasing value o f the dollar was 116.4 cents in September, as compared with 118.3 cents in August, and 100 cents in 1923. Item Relative Im portan ce in F a m ily Budget Food *____________________ Housing_________________ Clothing_____ ____________ Men’s _________________ Women’s_______________ Fuel and light____________ Coal______________ ... Gas and electricity______ Sundries_________ ____ . . . Septem ber, A v g u s t, 1939 1939 80.7 86.5 72.2 7S.5 65.9 84.4 83.0 87.1 97.0 76.7 86.3 71.9 78.2 65.7 84.0 82.5 87.1 96.9 30 Weighted avge. of all items. In d ex e s o f the Cost o f L ivin g (1923=100) 100 33 20 12 5 85.9 84.5 11 e.4 Purchasin'” value of dollar.. 11° 3 % o f In c. (+ ) or D e c. (— ) fr o m A v g u s t , 1939, to S ep t., 1939 + + + + + + + 5.2 0.2 0.4 0.4 0.3 0.5 0.6 0.0 + 0.1 + 1.7 ---1 * Based on food price indexes of the United States Bureau of Labor Statistics for Sept. 19, 1939, and Aug. 15, 1939. U n e m p lo y m e n t in U n it e d S ta t e s D e c lin e d 6 .7 % in S e p te m b e r , R e p o r ts th e C o n fe r e n c e B o a r d — F a lls B e l o w 9 ,0 0 0 ,0 0 0 f o r F i r s t T i m e S i n c e N o v e m b e r , 1 9 3 7 Unemployment in the United Slates declined 6 .7 % in September and fell below 9,000,000 for the first time since November, 1937, according to the monthly estimates of unemployment and employment prepared by the Division of Industrial Economics of the Conference Board. The number of jobless in September is placed at 8,798,000, or 631,000 less than the August figure of 9,429,000. Since February of this year, when the unemployed were estimated at 10,694,000, there has been a decline of 1,896,000, or nearly 1 8% . In September, 1938, the unemployed numbered 9,902,000. Under date of Oct. 29 the Board further reported: Total employed in the country rose to 45,943,000, a gain o f 685,000, or 1.5% , over the estimate for August. A marked increase o f 396,000 workers in manufacturing industry largely accounted for the increase. There were the usual seasonal advances in transportation, trade, dis tribution and finance. Increases in agriculture of 1.1%, in forestry and fishing of 1% , and in extraction of minerals of 2.5% were slightly less than seasonal. Small declines in construction and service employment were normal. The Government’s emergency labor force declined in September for the seventh consecutive month and totaled 2,081,000, as compared with 2,228,000 in August. Unemployment totals and the distribution of employment during July, August, and September, 1939, and comparisons with the totals for Sep tember, 1938, and March, 1933, and with the 1929 average are shown in the following table: (In Thousands) to w ith 1929 T h e flo o r stru ctu re E n g la n d is 16 is Average Unemployment total___________ M a r ., S e ” t ., J u ly, *A u g„ 1933 1938 1939 1939 469 14,706 9,902 9,987 9.429 ♦Serf., 1939 8,798 Employment total______________ 47,885 35,940 44,195 44.647 45,258 45,943 c o t t o n s p in d le s a n d 10 0 0 0 w o r s te d s p in d le s ; Agriculture____________________ Forestry and fishing____________ 10,539 267 a n d t h e s e a r e t o b e i n c r e a s e d t o 8 0 ,0 0 0 a n d Total Industry_________________ 19,102 acres. T h ere are n ow 2 0 ,0 0 0 , r e s p e c t i v e l y . in o p e r a tio n 4 0 0 ,0 0 T h e r e a r e 1 ,2 0 0 l o o m s i n o p e r a t i o n , t o b e i n c r e a s e d t o 2 ,4 0 0 . T h e s e , w i t h 2 ,0 0 0 h a n d s , p r o d u c e 3 0 0 ,0 0 0 p i e c e s o f c lo th per a n n u m , o n e -h a lf d e la in e s . The w e e k l y c o n s u m p t i o n o f c o t t o n i s 2 0 ,0 0 0 l b s . , s a y 1 , 5 0 0 ,0 0 0 l b s . p e r a n n u m , a n d 5 0 0 ,0 0 0 l b s . of w o o l. O nce a m o n th th e 2 ,0 0 0 hands Extraction of minerals________ Manufacturing_______________ Construction_________________ Transportation_______________ Public utilities.......... ................. 1,067 11,064 3,340 2,465 1,167 Trade, distribution and finance.. Service industries______________ Miscell. industries and services.. 8,007 8.96C 1.011 9,961 11,547 11,232 11,548 136 197 197 201 10,980 15,263 15,537 645 6,980 941 1,549 865 724 9,558 2,156 1,880 943 707 9.730 2,225 1,924 951 6,407 7.752 704 7.233 7,207 9.56S 9,071 884 1 905 15.865 11,676 203 16,278 720 738 9.954 10,350 2,264 2.236 1,972 2,000 955 954 7,179 9,552 913 7,349 9,508 928 * Preliminary. a s s e m b le a t th e C a s h ie r ’ s o ffic e , w h e r e M r. C la p p p a y s o u t to th e m $ 5 0 0 ,0 0 0 f o r w a g e s , a p p r o p r ia tin g to e a c h o n e th e e x a c t a m o u n t sh e h as e a rn ed . H U N T ’S M E R C H A N T S ’ M A G A Z IN E , D e ce m b e r, 1854 R e t a il F o o d C o s t s A d v a n c e d 5 .2 % B e tw e e n A u g . 15 a n d S e p t . 19 A c c o r d in g t o B u r e a u o f L a b o r S t a t i s t i c s The retail cost of food rose 5 .2 % between Aug. 15 and Sept. 19, Commissioner Lubin of the Bureau of Labor Statistics reported on Oct. 29. “ This increase was wide spread, costs advancing in all of the 51 cities covered by the index,” M r. Lubin said. “ Prices were higher for 41 of the 60 priced items, sugar and lard leading with increases of Volume 149 ONE HUNDRED— The Commercial & Financial Chronicle—YEARS OLD about 2 5 % and 3 5 % , respectively. The September index stood at 7 9.0% of the 1923-25 average. This was an ad vance of less than 1 % over a year ago and a decrease of 7.9 % below the level of September, 1937. Costs in 1939 were less than for any other September since 1934.” The Com missioner went on to say: Cereals rose 1.0%. Flour went up 10.6% and white bread remained unchanged. Other items in the group showed little price change. Meats increased 6.1% . All items in the meat group, except roasting chickens, advanced, the price increases ranging from 2.4% for sliced ham to 14.7% for pork chops. t Dairy products rose 6.0% . The increase of 11.0% for butter was largely seasonal. Milk averaged 4.2% higher, as a result o f increased prices in 11 cities. Eggs rose seasonally 16.6%, but were cheaper than a year ago. The cost of fresh fruits and vegetables showed little change and price movements ^'ere in the main seasonal. Prices rose slightly for all o f the canned items, but were below last year’s level. Navy beans increased 20.3%. ^ The price o f coffee remained unchanged. The price o f lard rose 34.7%. Shortening sold in cartons increased 8.6% , while that sold in tin containers declined 1.0% to the lowest level for the year. Sugar advanced 23.8% to the highest point reached during the past 10 years. The average increase o f 5.2% in food prices for the 51 cities was pretty evenly distributed. The extremes were Omaha with an increase of 9.7% and Fall River where the advance was 2.7% . IN D E X NUMBERS OF RETAIL COSTS OF FOOD B Y COM M ODITY GROUPS Three-Year Average 1923-25=100 19, 1939* Sept. C om m odity Group 79.0 85.2 97.5 78.0 74.7 58.3 56.5 74.8 62.0 65.5 67.5 77.8 All foods_____________ — Cereals and bakery prod. Meats_________________ Dairy products________ Eggs------------------- -------Fruits and vegetables__ Fresh............................ Canned_____________ Dried_______________ Beverages and chocloate. Fats and oils___________ Sugar and sweets______ * Preliminary. W e e k ly R ep ort of 15. 1939 Aug. 18, 1939 July 75.1 84.4 91.9 73.6 64.2 57.9 56.4 74.0 56.7 65.3 61.1 62.3 76.5 85.0 93.5 72.5 61.4 63.4 62.7 73.9 56.6 65.3 61.6 62.4 13. 1938 Sept. 78.7 88.2 98.2 77.2 82.2 54.8 52.6 76.3 59.5 66.4 67.7 62.3 15. 1932 Se t. 66.7 74.3 75.8 65.4 62.4 52.8 51.3 69.2 54.4 74.6 51.3 58.2 L u m b e r M o v e m e n t— W e e k O c t . 2 1 , 1939 15, 1929 S ep t. 108.0 98.6 124.7 103.0 108.9 107.6 108.6 96.3 107.1 110.2 93.4 75.9 Ended The lumber movement during the week ended Oct. 21, 1939, in relation to the seasonal weekly averages of prior years was as follows: Percent o f Orders ____________ _ _ 70 80 72 1929 Percent o f 99 112 107 1937 Percent o f 1938 119 126 111 according to reports to the National Lumber Manufacturers Association from regional associations covering the opera tions of representative softwood and hardwood mills. These reports further showed: Compared with the average o f the preceding 10 weeks, reported lumber production and shipments o f the week ended Oct. 21, 1939, showed gains o f 3% and 2 % , respectively; new business, loss o f 24% . Compared with the preceding week, production, as reported by 5% fewer mills, was 3% more, shipments were the same; new orders, 15% less. New business was 10% below production. Shipments were 7% above output. Reported production for the 42 weeks o f the year to date was 16% above correspond ing weeks o f 1938; shipments were 17% above the shipments; and new orders were 21% above the orders o f the 1938 period. For the 42 weeks o f 1939 new business was 11% above, and shipments 6% above output. During the week ended Oct. 21, 1939, 505 mills produced 248,860.000 feet o f softwoods and hardwoods combined; shipped 267,512,000 feet; booked orders o f 224,914,000 feet. Revised figures for the preceding week were: mills, 530: production, 241,326,000 feet; shipments, 268,633 feet; orders, 263,639,000 feet. Lumber orders reported for the week ended Oct. 21, 1939, by 428 soft wood mills totaled 214,706,000 feet; or 10% below the production o f the same mills. Shipments as reported for the same week were 253,551,000 feet, or 6% above production. Production was 239.665,000 feet. Reports from 94 hardwood mills give new business as 10.208,000 feet, or 11% above production. Shipments as reported for the same week were 13,961,000 feet, or 52% above production. Production was 9.195,000 feet. For the week ended Oct. 21, 1939, production o f 414 identical softwood mills was 237,696,000 feet, and a year ago it was 212,221,000 feet; ship ments were respectively, 250,766,000 feet, and 227,199,000 feet; and orders received 212,853,000 feet, and 209,400.000 feet. In the case o f hardwoods, 74 identical mills reported production this year and a year ago 7,162.000 feet and 6,338.000 feet: shipments, 10,778,000 feet, and 6,748,000 feet and orders, 7,796,000 feet and 9,473,000 feet. U n ite d S ta te s in P r o d u c tio n o f P ap er a n d P a p e r b o a r d 1 93 8 D e c r e a s e d B e lo w 1937 The tonnage of paper and paperboard produced in the United States in 11)38 showed a decrease as compared with 1937, according to a preliminary report released Oct. 28 by Director William L . Austin, Bureau of the Census, Depart ment of Commerce. The production of paper and paperboard in 1938 amounted to 11,380,814 tons, a decrease of 11.3%, as compared with 12,837,003 tons produced in 1937. The total newsprint produced in 1938 amounted to 832,331 tons against 975,854 tons in 1937; unconted book paper to 1,336,814 tons as compared with 1,520,523 tons in 1937; writing paper to 481,719 tons against 578,147 tons; wrapping paper to 1,865,856 tons against 2,053,387 tons: tissue paper to 548,943 tons against 540,152 tons; building paper to 570,454 tons against 60S.086 tons, and the total for paperboards in 1938 was 5,103,767 tons as compared with 5,802,036 tons in 1937. 2887 U n c e r t a i n t i e s A f f e c t W h e a t P r ic e S i t u a t i o n — B u r e a u of A g r ic u ltu r a l E c o n o m ic s E s tim a te s D o m e s tic D is a p p e a r a n c e fo r Y e a r B e g in n in g J u ly 1, 1 9 3 9 , a t 6 7 5 ,0 0 0 ,0 0 0 B u s h e l s — 3 1 8 ,0 0 0 ,0 0 0 B u s h e l s f o r E x p o r ts a n d C a rry o v e r— F ig u r e s o f W o r ld P r o d u c tio n The wheat price situation is complicated by an unusually large number of factors which might become important within the next few months, according to the Bureau of Agricultural Economics. These include changes in pros pects for the United States 1940 winter wheat crop and in the Australian and Argentine crops to be harvested in December and January, political developments in Europe, the volume of exports, and general business conditions. Domestic wheat prices declined to about loan levels on Oct. 7, but then reacted, strengthened by continued drought in winter wheat areas, small market receipts, and the sale of substantial quantities of Canadian wheat to the United Kingdom. The Bureau had the following to say regarding domestic and world supplies of wheat: The domestic disappearance o f wheat in the United States for the year beginning July 1. 1939, is forecast at 675,000,000 bushels. With total supplies of 993,000,000 bushels, consisting of a carryover on July 1 of 254.000. 000 bushels and the indicated crop of 739,000.000 bushels, a disappearance o f this size would leave 318,000.000 bushels available for export during the season, or for carryover at the end of the marketing year. Prospective world wheat supplies for the year beginning July 1. 1939, are now indicated to be about 240.000,000 bushels more than a year ago. (All references to world production and stocks in this report exclude the U. S. S. R. and China, except where noted.) Increases in carryover stocks on July 1, 1939. more than offset the decreases in production World stocks o f old wheat on July 1 are estimated at about 1.165,000.000 bushels, or about 565.000.000 bushels more than a year earlier. World wheat production is now estimated at about 4,264,000.000 bushels, or about 325.000. 000 bushels less than in 1938. The crop in the Northern Hemisphere is estimated to be about 3.792,000,000 bushels, which is about 225,000,000 bushels less than the harvest of 1938. Weather conditions to date indicate a decrease in production of about 100,000,000 bushels for the Southern Hemisphere countries. On the basis of present supply estimates and a moderate decrease in world disappearance, the world stocks on July 1, 1940, are expected to be about 1,440.000,000 bushels. Stocks of this size would be a new high record and about 275,000,000 bushels larger than the estimate for 1939. World trade in wheat and flour for the year beginning July 1, 1939, is expected to be smaller than in 1938-39, when shipments totaled about 600.000. 000 bushels. Stocks available for export in surplus producing countries greatly exceed this quantity. Exports of United States wheat and flour from July 1 to Oct. 15 amounted to about 19,000.000 bushels, compared with about 30.000,000 bushels for thesame period a year earlier. The production of rye in the 20 countries for which reports are available, and which produced about 85% of the estimated world production in 1938, is estimated at about 913,000.000 bushels, or about 3,000,000 bushels above the total for these countries last year. The 17 European countries re porting show an increase o f about 1 % compared with the 1938 production. F in a l D a te E xport f o r S h i p m e n t U n d e r 1 9 3 8 -3 9 W h e a t P la n E x t e n d e d t o D e c . 1 5 , 1 9 3 9 F lo u r The final date for export shipment under the 1938-39 wheat flour export program has been extended from Oct. 31,1939 to Dec. 15, 1939, the Division of Marketing and Marketing Agreements of the Department of Agriculture announced Oct. 27. Sales for export were made under this program from Oct. 28, 1938 through June 30, 1939. The Division explained this action as follows: Extension of time has been granted to permit exporters to complete the shipment of flour sold for export. The exporters have found it impossible to complete exportation by the Oct. 31 date because o f the European situa tion which has disrupted ocean shipping schedules and has caused the with drawal o f many vessels from their usual trade routes. The final date on which exporters can make application for export pay ment under the program has been extended from Jan. 2, 1940 to Feb. 15, 1940. 3 ,8 5 5 ,6 5 3 T o n s o f S u g a r R e c e i v e d f r o m O f f - S h o r e A r e a s D u r in g N in e M o n th s o f 1939 The Sugar Division of the Department of Agriculture on Oct. 10 issued a report on the entries of sugar from offshore areas during the first nine months of the year. The report shows that the quantity entered for consumption during the period January-September amounted to 3,855,653 tons. For the corresponding period last year the quantity entered (and charged against the 1938 quotas for the offshore areas) totaled 4,128,675 tons. The figures are subject to change after final outturn weight and polarization data for all importations are available. A total of 262,547 short tons of sugar, raw value, was marketed by the mainland cane areas (including marketings by producers who are also refiners) and 904,8(3 tons by the continental beet area during the first eight months of this year. Data for September are not yet available. ENTIRES FROM OFF-SHORE AREAS (Short tons—96 Degree Equivalent) 1939 Quotas in E ffect Prior to S e t . 11 A m ou n t Entered U ” to Sept 30. 1939 1.932.343 1.041.023 59,111 1,404,220 Hawaii................................................................ 981.912 806.642 948.212 9.013 85.812 852,545 871.683 704.718 3.228 19,259 T otal..................................... ........................ 4,763,910 3.855,653 ~ ~ ~ 2 _ . A rea f Cuba................................................ Less amount reallotted on July 10________ ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD 2888 — D ir e c t-C o n s u m p tio n — S u gars Direct-consumption sugar is included in the above quantities. The fol lowing tabulation shows the quantities entered for direct-consumption during the period January-September, showing separately sugar polarizing 99.8 degrees and above and sugar polarizing less than 99.8 degrees. The separation of sugars into polarization groups is based on reports of the outturn weight and polarization for each cargo of direct-consumption sugar entered. (Short Tons— 96 Degree Equivalent) Q uantity E ntered Quotas Sugar Polar Sugar Polar in E ffect Total izing 99.8 izing Less P rior to Quantity D egrees and Than 99.8 S ep t. 11 E ntered A bove D egrees 1939 A rea Cuba . _ _ ____ ________ Puerto R ico_____ - _________ ___ _ _ ____ _ Hawaii. . Philippines. _________________ T o t a l ______ . 375,000 126,033 29,616 80,214 235,305 122,032 10,086 48,205 12,006 9,731 1,006 14,727 247,311 131,763 11,092 62,932 610,863 415,628 37,470 453,098 ENTIRES FROM FU LL-DU TY COUNTRIES (In Pounds) 1939 A re a Q uotas in E ffect P rior to Sept. 11 996,917 23,073,847 731,419 1,158,805 3,188,909 20,871,111 35,366,060 38,456,297 1,213,356 46,067,279 500,000 Quantity E ntered U p to Sept. 30, 1939 x 219,504 14,315,340 161,973 507,507 996,500 672,740 7,398,225 13,328,502 917,214 0 0 38,517,505 171,624,000 Total _________________________________ 19,259 85,812 T o n s .. _ ______ ____ ______ x Excluding 20,000 pounds entered from each area under the provisions of Sec. 212 of the Sugar Act of 1937. y Argentina, 50,436; Australia, 705; Belgium, 1,018,350; Brazil, 4,141; British Malaya, 91; Canada, 1,952,228; Colombia, 925; Costa Rica, 71,271; Czechoslovakia, 911,060; Dutch West Indies, 23; France, 605; Germany, 404; Honduras, 11,877,151; Italy, 6,062; Japan, 13,871; Netherlands, 753,842; Salvador, 28,402,670; Venezuela, 1,003,444. There have been entered under the provisions of Sec. 212 of the Act, 279 pounds from Canada, 30 pounds from Chile, 1,481 pounds from France, 54 pounds from New Zealand, 1,533 pounds from Sweden and 174 pounds from Vene zuela. C a n a d ia n S u g a r C o n s u m p t io n in Y e a r E n d e d A u g . 3 1 , 1 9 3 9 , R e a c h e d A l l - T i m e R e c o r d — T o t a l o f 5 1 4 ,9 5 5 T o n s W a s 4 . 1 % A b o v e P r e v io u s S e a s o n Consumption of sugar in the Dominion of Canada during the crop year ending Aug. 31, 1939, reached an all-time high record with 514,955 long tons, raw sugar value, as against 494,528 tons in the previous season, an increase of 20,427 tons, or approximately 4.1%, according to advices received by Lamborn & Co., New York. The 1938-39 consumption figure is the largest on record. The previous high record was recorded in 1936-37 when 510,000 tons were consumed. The firm added: Of the 1938-39 consumption, 68,355 tons, or 13.3%, were beet sugars produced in the Dominion, while the remainder were imported cane sugars which came principally from the British West Indies and other British possessions. Of the sugars consumed in 1937-38, home production supplied 57,562 tons, or 11.6%, while the balance came mainly from the same sources as this year. O c to b er S u g a r F u tu re s T ra d in g on N ew Y o r k a n d S u g a r E x c h a n g e B e s t S in c e 1929 C o ffe e Trading in sugar futures during October totaled 623,150 long tons, the best October volume since 1929, the New York Coffee & Sugar Exchange announced Nov. 2. For 10 months, January-October, trading aggregated 4,734,800 tons or only 72,650 tons less than was done during the full year of 1938. The announcement continued: The No. 3, or domestic contract, accounted for 357,250 tons of the October total which compares with 512,900 tons done in September and 143,500 tons in October, 1938. The 10-month figure was 2,893,350 tons against 2,568,000 during the same period last year. The No. 4, or world, contract’s October volume was 265,900 tons against 296,900 in September and 62,700 in October, 1938. For the Jan.-Oct. period, 1,841,450 tons were traded against 1,607,050 during the same period of 1938. C o tto n S itu a tio n Im p ro v e d in O c to b e r , R e p o r ts B u r e a u o f A g r ic u ltu r a l E c o n o m ic s — D o m e s tic C o n s u m p tio n a n d E x p o r ts I n c r e a s e d — W o r ld S u p p ly P u t a t 5 0 ,0 0 0 ,0 0 0 B a l e s , o f W h i c h 2 6 ,0 0 0 ,0 0 0 B a le s is A m e r i ca n C o tto n Considerable improvement in the cotton situation was re ported Oct. 31 by the Bureau of Agricultural Economics, U. S. Department of Agriculture. Increased domestic cot ton consumption, substantial improvement in the competi tive price position of American cotton in foreign markets, and greatly increased exports of American cotton were im portant developments during the past month, says the Bureau, which adds that mill consumption of cotton in foreign countries appears to have changed comparatively little. A near record world supply of cotton, about 50,000,000 bales, is indicated despite the reduction in the October estimate of the United States crop, the Bureau stated. Of this total, about 26,000,000 bales is American cotton, the Bureau’s announcement said, and it added: The daily rate o f cotton consumption in the United States in September was 10% above August, and apparently increased still further in early October. Consumption in September was the largest on record for that N ov. 4, 1939 month. It was equivalent to an annual rate of about 7,750,000 bales which is nearly 1,000,000 bales larger than consumption last season and nearly as large as the record high consumption o f 7,950,000 bales in 1936-37. United States exports of cotton totaled 1,334,000 bales from Aug. 1 to Oct. 19. This was a 44% increase over exports to the same date last season, about the same as the quantity exported during the like period in 1937, but considerably smaller than the 10-year (1923-32) average. Registra tion of sales and deliveries of cotton for Government export payments up to Oct. 19 totaled 2,878,000 bales, according to the Bureau. This was slightly more than twice the actual exports. Registrations during the 4 weeks ended Oct. 19 exceeded actual exports byabout 150,000 bales or 20%. Since the domestic cotton export subsidy went into effect in late July, the Liverpool price of American cotton has declined materially in relation to most of the important foreign growths, according to the Bureau. The recent ratios of the price of Indian Oomra and Brazilian Sao Paulo to Amer ican cotton at Liverpool have been the most favorable from the standpoint o f the competitive position of American cotton for approximately to 2 years. The Liverpool price o f Egyptian Uppers has receiftly been the highest relative to American since last March. In Japan the price of American cotton is also reported to have declined materially in relation to the price of Indian cotton since July. Mill consumption of cotton in Europe is apparently running at a some what higher level than before the outbreak of the European war. In Great Eritain, Italy, and. possibly some other European countries, in creased consumption is believed to have somewhat more than offset de clines in Poland and possibly other areas. Consumption in India and Japan has declined slightly. The decrease of nearly 500,000 bales in the October estimate o f the United States crop reduced the indicated world supply o f American cotton from slightly above to slightly below the record supply o f 1932-33, the Bureau stated. The reduction in the indicated crop was equivalent, how ever, to less than 2% o f the indicated -world supply of American cotton of nearly 26,000,000 bales. It was equivalent to only about 1% of the near record indicated world supply o f all cotton of nearly 50,000,000 bales. F a r m e r s ’ C a s h I n c o m e i n S e p t e m b e r T o t a l e d $ 8 4 7 ,0 0 0 ,0 0 0 , R e p o r t s B u r e a u o f A g r i c u l t u r a l E c o n o m i c s — C o m p a r e s w i t h $ 6 4 3 ,0 0 0 ,0 0 0 i n A u g u s t a n d $ 7 4 5 ,0 0 0 ,0 0 0 Y e a r A g o Farmers’ cash Income from marketings and Government payments in September totaled $847,000,000, it was esti mated Oct. 23 by the Bureau of Agricultural Economics, United States Department of Agriculture. The September income compared with $643,000,000 for August and $745,000,000 for September, 1938. Income from farm marketings in September amounted to $781,000,000, representing more than the usual seasonal increase from the $601,000,000 esti mated for August, and was 10% larger than the $718,000,000 reported for September last year. Government payments totaled $66,000,000 in September compared with $42,000,000 in August and $27,000,000 in September last year. The Bureau’s announcement continued: For the first nine months of this year cash farm income, including Gov ernment payments, amounted to $5,441,090,000 compared with $5,357,000,000 for January-Septemiber last year. Income from farm marketings was $4,883,000,000 and was 3% smaller than the total of $5,024,000,000 for the same months least year. Income from grains, fruits, vegetables and meat animals was slightly larger than for January-September last year, whereas income from cotton, tobacco and dairy products has been smaller. In January-September this year Government payments totaled $558,000,000 compared with $333,000,000 in the same months of 1938. Income from farm marketings increased much more than usual from August to September, and in September was larger than in the correspond ing month of a year earlier for the first time since October, 1937. After adjustment for the usual seasonal change, the index of farmers’ income from marketings (1924-29 equals 100) increased from 71.0 in August to 79.0 in September. Income from both crops and livestock increased more than seasonally, the livestock income showing the most pronounced im provement. Income from all groups of crops and livestock except tobacco increased more than seasonally. Tobacco income was sharply reduced during September, due to the closing of all tobacco markets on Sept. 10. With the marked advance in farm prices in September and some increase in prospective marketings of farm products, it now appears likely that farm income, including Government payments, in 1939 will total about $8,300,000,000, or about 5% higher than was forecast in August, and about 3.5% higher than in 1938. The most pronounced increases in income over those forecast in August are expected in incomes from grains, cotton, miscellaneous crops, meat animals and dairy products. With the improvement in cotton prices and the larger crop in prospect, it now appears likely that income from cotton lint and seed in 1939 will be only slightly smaller than in 1938. Income from grains, vegetables and fruits is expected to be larger than a year earlier and to offset the declines in income from other crops, so that total income from crops will be about the same in 1939 as in 1938. Income from meat animals in 1939 may be nearly as large as in 1937, with the larger supply of hogs and increased movement of feeder cattle and lambs more than offsetting the lower level of prices. Income from dairy products has increased much more than seasonally the past two months, but is still likely to be somewhat less in 1939 than in 1938. F e d e ra l a n d S ta t e E c o n o m is ts S u r v e y 1940 F a r m O u t lo o k — R e p o r ts o n C o m m o d itie s to B e Is s u e d More than 100 extension workers, representing 44 States and all the country’s major agricultural areas, began their annual meeting in Washington Oct. 30 with the Bureau of Agricultural Economics to study and report on the agri cultural outlook for 1940. The conference will last through today, N ov. 4. Beginning N ov. 6, reports on the farm outlook by major agricultural commodities will be released daily, except Sunday, through N ov. 15. An announcement in the matter further stated: All available information that will aid farmers in making their crop and livestock production and marketing plans for the coming year will be included in the reports, which will cover the current situation and the outlook for supply, prices and demand for 1940. Officials said that the 1940 report is of unusual importance because of the war situation in Europe, which is affecting not only our farm exports, but also our domestic demand for farm products. Volume 149 ONE HUN DRED—The Commercial & Financial Chronicle— The outlook on demand and prices for farm products will be the first release in the series. It will be followed by reports on agricultural credit; production costs; horses and mules; cotton; feed crops and livestock; meat animals and meats; hogs, beef cattle; dairy; tobacco; rice, dry beans, potatoes; poultry, eggs and turkeys; sheep, lambs and wool; fruits and tree nuts; truck crops, canning crops; fats, oils and oilseeds; clover and alfalfa seed. A report on the outlook fcr farm family living prepared in cooperation with the Bureau o f Home Economics also is included. Petroleum and Its Products— Penn Grade Crude Prices Advanced— Texas Seeks Increased Allowable to Meet War Needs— House Oil Hearings Start Monday— Crude Oil Production Slumps— Seek Continued Mexican Policy The rising demand for lubricating oils which has brought about consistent price firmness during the past several weeks was reflected in a 15-cent a barrel advance in the posted price of Pennsylvania grade crude oil this week. The advance, posted by the Joseph Seep Purchasing Agency of the South Penn Oil Co., was to become effective on N ov. 1, the day after it was announced. The markup was the second advance within a month, a 25-cent a barrel increase having been posted in the initial week of October. The sustained strength in Pennsylvania neutral and bright oil stocks, used in the production of lubri cating oils, has boosted prices about 50% above their pre-war level. Since the oil produced in the Pennsylvania is used mainly for lubricants, it is not likely that the advance will affect the other important oil fields. Under the new price schedule, which lifts prices to the highest levels in many months, all grades were advanced save Corning crude oil which held unchanged. South West Pennsylvania Pipe Line quotations moved up to $2.05 a barrel. Bradford and Alleghany district crudes were posted at $2.40 a barrel with Eureka Pipe Lines being advanced to $1.99 a barrel. The special oil investigating subcommittee of the House Interstate and Foreign Commerce Committee will start its hearings in Washington Monday, Nov. 6, it was announced early this week in the Nation’s capital by Representative William P. Cole (Dem., M d .), Chairman of the sub-com mittee. The hearings, which were delayed pending the con clusions of the Temporary National Economic Committee’s hearings on the oil industry, are to last only one week. The shortness of the hearings is due to the fact that only witnesses from Federal agencies will be heard, with spokesmen for the oil industry getting no chance to present their side of the question until after the turn of the year when the regular session of Congress starts. The first two days of the hearings will be devoted to rep resentatives of the United States Bureau of Mines and the Geological Survey. Secretary of the Interior Harold Iekes will appear before the Cole subcommittee on Wednesday with the following two days devoted to hearing spokesmen for the Army and Navy and the National Resources Planning Board. In the closing days of the last session of the Con gress, Representative Cole, at the behest of President Roose velt, introduced a bill which amended the Connally hot oil bill and extended Federal regulation of the oil industry. The hearings, it was indicated, would be based upon the terms of this bill. In an interview in Washington, Lon A. Smith, Chairman of the Texas Railroad Commission, stated that there was an actual shortage of crude oil for refineries because of the growing demand for crude and refined products arising out of the World War. M r. Smith, who was accompanied by Jerry Sadler, also a member of the Commission, went to Washington to discuss the situation with Secretary of the Interior Iekes and John W . Finch, director of the United States Bureau of Mines. Disclosing the hitherto unknown fact that actual daily movements of Texas crude for export to the warring nations totaled approximately 375,000 barrels, M r. Smith said that an increase of the same figure in the November market demand estimate for Texas of the Bureau of Mines was necessary. The head of the Texas regulatory body pointed out that at the time of the original estimate of the probable market demand for November crude oil in the Lone Star State, this was unknown and therefore could not have been taken into consideration, as it should have been, by the Bureau of Mines. “ Texas crude is going out from our refineries in such volume that there is an actual shortage for our refineries,” M r. Smith said. “ Unless we can raise our allowables, some of our refineries will be forced to shut down. We are not producing sufficient crude under our present allowables to meet export demand and supply refineries demands with out drawing upon storage. We have told Secretary Iekes that we would keep production in Texas within the estimated demand as announced by the Bureau of Mines, and our present allowables are based upon that figure . . . this figure is just 373,121 barrels too short because of the Euro pean demand for crude oil.” Following their talks with Secretary Iekes, both M r. Smith and M r. Sadler admitted that they “ had not received much encouragement.” Neither of the members of the Railroad Commission believed that they would receive any Federal aid in adjusting the November allowables. “ We probably will not be granted any relief during November,” M r. Smith YE A R S OLD 2889 said “ but the next estimate of the Bureau of Mines probably will give Texas an increased estimated demand by taking into consideration the volume of oil moving to the warring nations of Europe.” With production in Texas held down to a 4-day week during the period ended Oct. 28, daily average output of crude oil for the Nation slumped 273,400 barrels to a figure of 3,498,500 barrels, the American Petroleum Institute reported. This figure compared with estimated daily aver age market demand fo” crude oil during October, as estimated by the U. S. Bureau of Mines, of 3,590,300 barrels daily. Texas alone accounted for all but some 10,000 barrels of the net decline in production. A drop of 263,700 barrels in daily average production in Texas as the wells shut down Friday-Saturday-Sunday, in keeping with the Commission’s proration orders, pared the daily total for the Lone Star State to 1,250,900 barrels. The sharpest decline in weeks shown in California, 25,000 barrels, slashed the daily average there to 606.700 barrels. Oklahoma producers cut back their output by 12,250 barrels, with the daily average dropping to 415,750 barrels. Off setting these declines were increases of 12,700 barrels for Illinois to 340,400 barrels (a new high) 12,350 barrels for Kansas to 187,200 barrels, and 2,650 barrels for Louisiana where output rose to 264,850 barrels. Inventories of domestic and foreign crude oil held in the United States dropped 743,000 barrels during the week ended Oct. 21, totaling 229,127,000 barrels, according to the Oct. 28 report of the U. S. Bureau of Mines. Domestic crude holdings were off 808,000 barrels but this was offset in part by a gain of 65,000 barrels in foreign crude oil in storage. Heavy crude oil stocks, not included in the “ refinable” crude stocks, were up 41,000 barrels during the week to 14,035,000 barrels. The United Press reported from Mexico City on N ov. 1 that “ complete nationalization of the Mexican oil industry was proposed tonight in the draft of a second 6-year plan submitted to the national convention of the Mexican Revolu tionary Party by the organization’s executive committee. The proposal was seen as a move to forstall any further attempts by American and other foreign petroleum companies whose properties were affected by the early 1938 expropria tion laws, to regain their properties.” Price changes follow: Oct. 31-—Joseph Seep Purchasing Agency o f the South Penn Oil Co. ad vanced prices of Pennsylvania grade crude oil 15 cents a barrel, effective N ov. 1. Prices of Typical Crude per Barrel at Wells (All gravities where A . P . I. degrees are not shown) Bradford, P a ____________________ $2.40 Lima (Ohio Oil C o .)........................ 1.25 Corning, Pa_____________________ 1.02 Ulinois____________________________ . .95 Western K entucky_______________ 1.20 M id-O ont’t, Okla., 40 and a b o v e .. 1.03 Rodessa, A rk., 40 and above____ 1.25 Smackover, A rk., 24 and over_____ .75 Eldorado, A rk., 40_________________ $1.03 Rusk, Texas. 40 and over___________ 1.02 Darst Creek_________________________ 1.03 M ichigan crude______________________ 1.22 Sunburst, M o n t_____________________ 1.22 Huntington, Calif., 30 and over___1.05 Kettlem an H ills, 39 and over________1.24 REFINED PRODUCTS— LUBRICANTS’ PRICES STRONG— M OTOR FUEL HOLDS STEADY— R E FIN E R Y OPERATIONS S L U M P M OTOR FUEL IN VENTORIES RISE Lubricants continued to hold the spotlight in the refined products field, prices being the strongest in months. Further movements into higher price ground are expected as a result of the increase in Pennsylvania grade crude oil, the second within a month. Sustained rising industrial demand has bolstered the price structure for this branch of the refined products field. Gasoline prices, for the most part, held steady'both in the wholesale and retail markets in the major consuming areas of the United States. With stocks far above normal re quirements for this time of the year, only the hope of sus tained heavy export demand from the warring European nations is behind the contra-seasonal firmness of the motor fuel market. Refinery operations were slashed severely during the final week of October. The mid-week report of the American Petroleum Institute disclosed a decline of 3.5 points from the high of 87% of capacity reached in the previous period. Daily average runs of crude oil to stills dipped 130,000 from their record high of 3,520,000 barrels set in the Oct. 21 week. Production of gasoline, however, climbed some 50,000 barrels for the week. Inventories of finished and unfinished motor fuel showed a seasonal expansion despite the sharp decline in refinery operations. The American Petroleum Institute report disclosed a jump of more than a half million barrels of gaso line during the period, with stocks on Oct. 28 totaling 72,660,000 barrels. About 10,000,000 barrels above normal for this period of the year, the stocks show the effects of the sus tained high rate of refinery operations during the past several months. Even record demand was unable to reduce the top-heavy stocks. Price changes in the major markets were limited to unim portant local readjustments, for the most part. U. S Gasoline (Above 65 O ctane), Tank Car Lots, F.O .B . Refinery New York— Other Cities— New Y ork— Std.Oil N .J.$.06M -.07 T exa s_____ S.07M -.08 C h icago______$.05 -.05M Socony-Vac. .06M -.07 G ulf_______ .08K -.08M New Orleans. .06M -0 7 Shell East’n .07M -.08 T . W at. Oil .08M -.08M Gulf ports .05M Rich Oil (Cal) .08M--08M T u ls a .............. .04K -.05M W arner-Q .. 07M --08 Kerosene, 41-43 W ater W hite, Tank Car, F.O .B. Refinery New York— I North Texas_______ $.04 (N ew Orleans.S.OSM-.OoH (Bayonne)________ $ .0 5 1 1Los A n geles.. .03H -.05 I Tulsa_________ .04 -.O iH 2890 ONE HUNDRED — The Commercial & Financial Chronicle — Fuel OH. F.O .B . Refinery or Terminal N. Y (Bayonne)— |California 24 plus D I New Orleans C ______ $1.00 Bunker C _________ $ 1 1 5 $1.00-1.25 Phila., Bunker C ____ 1.45 D iesel........................ 1.651 | Gas OH. F.O .B . Refinery or Terminal N. Y. (Bayonne)— |Chicago— i Tulsa_________ $.02% -.03 | _________________ j 27 plus.................... * 04 I 28-30 D .................$.053 Gasoline, Service Station, Tax Included ^ New Y o r k - . . " . . ___$ 1 7 |N ew ark______________$.1661B u ff a lo .T -.T .'- .- T T ls . 174 z B rook lyn _________ .17 I Boston_______________ ,185|Chicago_____________ .17 z N ot including 2% city sales tax. Daily Average Crude Oil Production for Week Ended Oct. 28 Declines 273,400 Barrels The American Petroleum Institute estimates that the daily average gross crude oil production for the week ended Oct, 28, 1939, was 3,498,500 barrels. This was a falling off of 273,400 barrels from the output of the previous week, and the current week’s figure was below the 3,590,300 bar rels calculated by the United States Department of the Interior to be the total of the restrictions imposed by the various oil-producing States during October. Daily average production for the four weeks ended Oct. 28, 1939, is esti mated at 3,605,000 barrels. The daily average output for the week ended Oct. 29, 1938, totaled 3,237,550 barrels. Further details, as reported by the Institute, follow : Imports of petroleum for domestic use and receipts in bond at principal United States ports for the week ended Oct. 28 totaled 1,041,000 barrels, a daily average of 148,714 barrels, compared with a daily average of 197,857 barrels for the week ended Oct. 21 and 177,500 barrels daily for the four weeks ended Oct. 28. Receipts of California oil at Atlantic and Gulf Coast ports for the week ended Oct. 28 totaled 245,000 barrels, a daily average of 35,000 barrels, compared with a daily average of 56,857 barrels for the week etided Oct. 21 and 25,429 barrels daily for the four weeks ended Oct. 28. Reports received from refining companies owning 86.2% of the 4,394,000barrel estimated daily potential refining capacity of the United States indicate that, the industry as a whole ran to stills, on a Bureau of Mines basis, 3,520,000 barrels of crude oil daily during the week, and that all ccmpanies had in storage at refineries, bulk terminals, in transit and in pipe lines as of the end of the week, 72,660,000 barrels of finished and unfinished gasoline. The total amount of gasoline produced by all com panies is estimated tc have been 12,232,000 bariels during the week. Oklahom a____________ Kansas_______________ 424,200 170,600 State Allow ables Week Ended Oct 28, 1939 Change from Previous Week 424,200 b415,740 — 12,250 170,600 bl87,200 + 12,350 Panhandle Texas_____ N orth Texas__________ W est Central Texas___ W est Texas___________ East Central Texas___ East T exas___________ Southwest Texas_____ Coastal T e x a s ........... .. 64,000 76,100 27,500 208,600 83,550 395,500 193,100 202,550 — 7,400 — 18,900 — 5,900 — 50,500 — 5,150 — 96,950 — 39,000 — 39,900 Four Weeks Ended Oct 28, 1939 Week Ended Oct 29, 1938 422,300 167,550 66,250 82,950 29,450 231,100 85,000 443,850 207,900 223,150 432,000 157,100 60,100 79,800 31,850 200,200 90,550 370,050 224,500 203,600 Total Texas________ 1,444,800 cl3 60 563 1,260,900 g263,700 1,369,650 1,260,650 N orth Louisiana______ Coastal Louisiana____ Total Louisiana____ Arkansas- ___________ Mississippi____________ Illinois________________ Eastern (not incl. 111.). M ichigan . ___ ________ W yom ing_____________ M ontana_____________ C olorado______________ New M exico__________ 65,700 199,150 260,300 258,504 56,100 65,800 275,500 99,400 61,000 69,000 16,500 3,900 114,200 d ll5 ,3 9 3 — 500 + 3,150 66,250 194,850 Daily Refining Capacity + 2,650 261,100 269,650 65,900 + 550 800 + 450 340,400 + 12,700 103,100 + 150 63,950 + 1,500 62,100 — 2,900 17,200 — 50 3,900 + 200 115,750 — 50 65,500 49,200 300 332,550 j 183,800 102,600 64,400 53,850 64,450 51,350 17,000 13,500 3,750 3,950 112,600 103,500 Total east o f C a lif.. 2,995,500 2,891,800 5248,400 2,983,750 2,578,550 California____ ________ 594,800 e598,300 606,700 —25,000 621,250 659,000 Total United States. 3,590,300 3,498,500 fs?273400 3,605.000 3,237,550 a These are Bureau o f M ines’ calculations o f the requirements o f dom estic crude oil based upon certain premises outlined in its detailed forecast for the month of O ctober. As requirements may be supplied either from stocks, or from new pro- Gasoline Production at Refineries Percent Inc. Natural Blended Operated Crude Runs to Stills Potential Rate Percent Reporting 615 149 615 419 316 1,055 179 100 118 828 100.0 85.9 90.2 81.6 50.3 90.0 97.8 55.0 54.2 90.0 588 107 505 266 112 853 147 38 39 508 95.6 83.6 .91.0 77.8 70,4 89.8 84.0 69.1 60.9 68.2 1,670 432 2,150 z955 509 2,810 417 104 208 1,509 86.2 East C oast_________________ Appalachian_______________ Indiana, Illinois, K entucky. Oklahoma, Kansas, Missouri Inland Texas_______________ Texas G u lf__________ _______ Louisiana G ulf________ ____ N orth Louisiana & Arkansas R ocky M ountain......... .......... California.......... ....................... 3,163 357 83.5 10,764 1,468 R e p o r t e d . . _____________ Estimated unreported______ ♦Estimated total U . S.: O ct. 28, 1939...................... O ct. 21, 1939.................... .. 4,394 4,394 Daily Average 3,520 3,650 12,232 12,182 x3,251 *U.,S. B. of M . Oct . 28, 1938 y ll,2 1 7 ♦Estim ated Bureau o f Mines’ basis, x O ctober, 1938 daily average. y T h is is a'w eek’s production based on the U. S. B . o f M . O ctober, 1938 daily average, z 12 % reporting capacity did not report gasoline production. ST O C K S O F F IN IS H E D A N D U N F IN IS H E D G A SO L IN E A N D G AS A N D F U E L O IL , W E E K E N D E D O C T . 28, 1939 (Figures in Thousands of Barrels of 42 Gallons Each) Stock o f Finished and Unfinished Gasoline Stocks of Residual Fuel Oil Stocks o f Gas Oil and Distillate District At Terms, At Terms, At At in Transit in Transit Refineries and in Refineries and in Pipe Lines Pipe Lines Total Finished Total Finished and Unfin’d East Coast________ Appalachian_______ Ind., 111., K y .......... Okla., K an ., M o ___ Inland Texas______ Texas G ulf________ Louisiana G u lf____ N o . La. & Arkansas R ock y M ountain. . California______ . . 17,527 2,293 10,274 5,833 1,288 8,242 2,221 249 915 13,531 18,511 2,611 10,771 6,129 1,495 9,539 2,554 324 991 14,635 7,128 277 3,940 1,767 396 5,662 893 242 127 7,928 6,720 149 973 31 R e p o r te d .. ____ Est. unreported____ 62,373 5,000 67,560 5,100 28,360 830 10,372 85,101 2,420 27,265 ♦Est. total U . S.: O ct. 28, 1939____ O ct. 21, 1939____ 67,373 66,688 72,660 72,122 a29,190 a29,463 10,372 9,895 a87,521 a87,781 27,265 27,279 U . S. B . o f Mines ♦Oct 28, 1 9 3 8 ... 63,493 69,252 32,739 5.880 364 2,797 2,753 1.881 7,607 2,137 645 416 60,621 594 11 11 1,883 4,361 43 306 295 22,260 120,540 * Estimated Bureau of M ines’ basis, a For com parability with last year these figures must be increased by stocks " A t Terminals, & c.,’ ’ in California district. 75,450 194,200 264,850 Nov. 4, 1939 District D A IL Y A V E R A G E C R U D E O IL P R O D U C T IO N (Figures in Barrels) « » a B. q fM . Calcu lated Require ments (O ct) YE A R S OLD duction, contemplated withdrawals from crude oil inventories must be deducted from the Bureau’s estimated requirements to determine the amount o f new crude to be produced. b Oklahoma and Kansas figures are for week ended 7 a. m . O ct. 25. c This is the net basic allowable for the mouth o f October obtained from the best available sources and takes into consideration ordered shutdowns for 11 days during the m onth, namely O ct. 1, 2, 7, 8, 14, 15, 21, 22, 27, 28, and 29. Latest informa tion Indicates that exemptions are included but not accretions from new wells. d Allowable for period O ct. 16 to 31; previous allowable revised to cover new wejls completed. e Recommendation o f Central Com m ittee of California Oil Producers. f O ct. 21 total revised to include Mississippi (350 barrels daily), g Minus. Note— The figures indicated above do not include any estimate o f any oil which might have been surreptitiously produced. C R U D E RU N S T O ST IL LS A N D P R O D U C T IO N O F G A SO L IN E , W E E K E N D E D O C T . 28, 1939 (Figures in Thousands o f Barrels of 42 Gallons Each) Weekly Coal Production Statistics The current weekly coal report of the Bituminous Coal Division, U. S. Department of the Interior disclosed that production of soft coal showed little change in the week ended Oct. 21. The total output is estimated at 10,450,000 net tons, as against 10,430,000 tons in the preceding week. Production in the corresponding week of 1938 amounted to 8,140,000 tons. The U. S. Bureau of Mines reported that for the fourth consecutive week the production of Pennsylvania anthracite has shown a declining tendency. Total estimated output for the week ended Oct. 21 amounted to 1,194,000 tons, a reduction of 30,000 tons, or 2.5 % from the week of Oct. 14, but a gain of 330,000 tons (about 38% ) in comparison with the same week of 1938. E S T IM A T E D U N IT E D ST A T E S P R O D U C T IO N O F SO FT C O AL (In Thousands of Net Tons) A Novelty in Quarrying An instrument for boring into hard rock, made out of a tube furnished with a circu lar cutter of rough diamonds, is now being employed in France. It is caused to re volve, and as it enters the stone, the cutter scoops out a cylinder, which is afterwards easily taken out of the tube. Holes in hard granite for blasting purposes, two inches diameter and four feet deep, are thereby bored in one hour. This would require two days’ work in the ordinary way. The dia monds, when examined through a magni fying glass, do not look at all injured. HUNT’S MERCHANTS’ MAGAZINE, March, 1863 W eek Ended Calendar Year to Date c Oct. 21, Oct. 14, Oct. 22, 1939 1939 1938 Bituminous Coal a— Total, including mine fuel______ Daily average____ __ . .. . 10,450 1,742 10,430 1,738 1939 1938 1929 8,140 b293,967 259,915 423,403 1,357 1,187 1,047 1,702 a Includes for purposes of historical com parison and statistical convenience the production o f lignite, b Subject to revision, c Sum o f 42 full weeks ended O ct. 21, 1939, and corresponding 42 weeks o f 1938 and 1929. E S T IM A T E D P R O D U C T IO N O F P E N N S Y L V A N IA A N T H R A C IT E A N D B E E H IV E C O K E _____________________ ______________ (In N et Tons)___________________________________ Calendar Year to Date W eek Ended Oct. 21, 1939 Oct. 14, 1939 Penn. Anthracite T otal, incl. colliery 1,194,000 1,224,000 fuel . a ______ 199,000 204,000 D aily a v e ra g e .. C om m , prod’t ’ n .b 1,134,000 1,163,000 Beehive Coke— United States total 65,300 48,800 8,133 10,883 D aily a v e ra g e .. Oct. 22, 1938 1939 1938 c 1929 c 864,000 41,753,000 36,729,000 58,116.000 169,400 235,800 144,000 149,000 821,000 39,666,000 34,893,000 53,932,000 14,200 2,367 641,600 2,556 696,200 2,774 5,497,500 21,902 a Includes washery and dredge coal, and coal shipped by truck from authorized operations, b Excludes colliery fuel, c Adjusted to make comparable the number of working days in the three years. ONE HUNDRED The — Volume 149 W E E K L Y P R O D U C T IO N OF CO A L , B Y S T A T ES (In Thousands o f N et Tons) (The current weekly estimates are based on railroad carloadings and river ship ments and are subject to revision on receipt of monthly tonnage reports from district and State sources or o f final annual returns from the operators.) 2891 Y E A R S OLD Commercial & Financial Chronicle— E S T IM A T E D d Preliminary, e Cumulation for ail weeks in calendar year through end of August* Includes street and interurban railways, electrified steam railroads, and mis cellaneous Federal and State plants. September Statistics of Portland Cement Industry Week Ended Stale Oct. Oct. 14, Oct. 7, Oct. 15, Oct. 16, Oct. 12, Avge. 1939 1939 1938 1937 1929 1923 e Alaska_____ ______________ _______ Alabama ________________ __ _ Arkansas and Oklahom a____ _ C olorado__________ ______________ Georgia and North Carolina_____ Illinois................................................. Indiana.......................... ..................... Iow a__________________________ _ Kansas and M issouri____________ Kentucky— Eastern_____________ W estern_______________________ M aryland________________________ M ichigan________________________ M ontana________________________ New M exico__________________ North and South D a k o t a ______ O hio_____________________ _______ Pennsylvania bituminous________ Tennessee_________ ______________ T exas___________________________ U t a h .. ................................................ Virginia_________________________ W ashington_____________________ West Virginia— Southern.a_____ Northern _b_________________ W yom ing________________________ Other western S ta tes.c__________ 2 291 92 171 1 1,001 363 81 151 953 188 38 10 82 28 83 535 2,575 128 18 107 375 51 2,268 70? 136 * 2 289 86 162 1 1,068 362 96 14? 9E2 212 3b 10 86 25 7.5 523 2,418 122 17 95 36? 43 2,176 680 147 1 3 237 61 121 * 832 290 74 112 817 161 27 13 74 31 77 451 1.914 110 IP 85 300 36 1.816 520 121 * 3 263 109 168 1 1,184 384 88 162 873 190 32 16 77 37 74 558 2.350 115 IP 103 331 44 1,965 568 153 * 1,318 376 83 160 1,051 340 56 18 82 54 s43 568 3,056 104 22 137 268 47 2,283 817 170 s8 398 88 217 s 1,558 520 116 161 764 238 35 28 82 58 836 817 3,149 118 26 121 231 68 1,488 805 184 s4 Total bituminous c o a l . . ............ Pennsylvania an thracite.d______ 10.430 1,224 10,175 1,245 8,302 1,185 9 ,8 6 ' 1,218 11,78? 1.884 11,310 1,968 Total, all coal_________________ 11,654 11,420 9,48" 11,08* 13,671 The Portland cement industry in September, 1939, pro duced 11,937,000 barrels, shipped 13,104,000 barrels from the mills, and had in stock at the end of the month 20,160,000 barrels, according to the Bureau of Mines. Production and shipments of Poitland cement in September, 1939, showed increases of 13.1 and 11.8% respectively, as compared with September, 1938. Portland cement stocks at mills were 5.7% lower than a year ago. The total production for the nine months ending Sept. 30, 1939, amounts to 88,741,000 barrels, compared with 75,742,000 barrels in the same period of 1938, and the total shipments for the nine months ending Sept. 30,1939, amounts to 92,527,000 barrels compared with 79,313,000 barrels in the same period of 1938. The statistics given here are compiled from reports for September received by the Bureau of Mines, from all manu facturing plants. In the following statement of relation of production to capacity the total output of finished cement is compared with the estimated capacity of 161 plants at the close of September, 1938 and 162 plants at the close of September, 1939. t.3.278 s 382 i38 206 R A T IO O F P R O D U C T IO N TO C A P A C IT Y a Includes operations on the N . & W .; C. & O .: Virginian; K . & M .; B . C. & G .; and on the B A O. in Kanawha, M ason, and Clay counties, b Rest of State, in cluding the Panhandle District and Grant, Mineral, and Tucker counties, c In cludes Arizona, California, Idaho, Nevada, and Oregon, d D ata for Pennsylvania anthracite from published records o f the Bureau of Mines e Average weekly rate for entire m onth, s Alaska, Georgia, N orth Carolina, and South D akota included with “ other western States.” * Less than 1,000 tons. Sept., 1938 Sept., 1939 A ug., 1939 July, 1939 June, 1939 49.9% 40.2% The 12 months ended___ 56.3% 45.9% P R O D U C T IO N , S H IP M E N T S A N D ST O C K S O F F IN IS H E D P O R T L A N D C E M E N T , B Y D IS T R IC T S , IN S E P T E M B E R , 1938 A N D 1939 (In Thousands of Barrels) Production District Trends of Competing Sources of Power A V E R A G E W E E K L Y P R O D U C T IO N O F W A T E R P O W E R IN T H E U N IT E D ST A T E S A N D C O M P U T E D E Q U IV A L E N T IN B IT U M IN O U S CO AL Monthly Total ( Thousand Kwh.) Weekly Weekly Equivalent Average Bituminous Coal (1,000 Kwh) (In Thous. o f Net Tons) Produced Including Produced for Estimate Public Cse for Private (.FPC)* Industrial Plants Produced At Constant Including Fuel At Prevail Equivalent ing Central Estimate for Private o f Approx. Station 4Lb. per Equivalent b Industrial Plants Kwh.a. Period M onthly record— August, 1938......... July, 1939. c ______ August, 1939-d . . Calendar year to date 1929.......................... 1938....................... .. 1939______________ Percent of change for year to date— Over 1929________ Over 1938________ 3,844,806 3,473,092 3,526,851 4,013,761 3,641,047 3,695,806 906,333 822,172 834,537 1,822 1,753 1,677 639 580 589 24,028,035 30,462,607 31,361,293 25,439,798 31,787,581 32,686,267 732,834 915,692 941,580 e51,134 e63,893 e65,699 e21,630 e22,426 e23,060 + 30.5% + 3.0% + 28.5% + 2.8% + 28.5% + 2.8% + 28.5% + 2.8% + 6 .6% + 2 .8% a Com puted at 3 pounds of coal per horsepower hour, or 4.02 pounds per kolowatt hour. This is the average reported by central electric power stations in 1913 and has been used by the authors for long-tim e historical comparisons running back to 1880, in order to show the relative rate o f increase o f coal and water power, b Com puted at the current average consumption o f central electric power stations, namely, 1.69 pounds in 1929, 1.41 in 1938, and 1.41 (tentative) in 1939. N ote that the figures for 1938 have been revised to accord with the final statistics published by the FPC in "E lectric Power Statistics, 1938,” issued in M arch, 1939. This report gives a final figure o f 1.41 pounds per kilowatt hour in the year 1938. c Revised. 1939 1938 1939 2,209 853 1,264 887 1,295 1,227 1,166 569 685 283 968 531 2,038 713 1,031 958 1,416 1,194 1,343 826 601 305 965 326 2,320 937 1,320 967 1,511 1,279 1,440 826 585 338 961 620 4,217 1,561 2,947 1,899 1,850 1,532 2,192 1,723 862 463 1,343 785 4,057 1,597 2,607 1,600 2,003 1,528 2,041 1,815 822 449 1,155 486 10,559 11,937 11,716 13,104 21,374 20,160 Eastern P a ., N . J. and M d ______ New Y ork and M aine___________ Ohio, Western Pa. and W . V a _ _ M ichigan____________ ___________ W is., 111., Ind. and K y __________ V a., Tenn., Ala., G a., Fla. & L a . East. M o ., Iowa, M inn. & S. D ak. W . M o ., N eb., K an., Okla.& Ark. Texas___________________________ C olo., M ont., Utah, W y o . & Id a. California____________________ ___ Oregon and W ashington_________ T otal__________________________ 1939 Stocks at End o f Month Shipments 1,919 561 1,119 753 1,051 1,004 1,142 811 624 259 990 326 1938 In order to throw light on the “ competitive relationships between bituminous coal and other forms of fuel and energy,” which the Coal Act requires be considered in establishing minimum prices, the trend of production of water power is shown in the table below which has just been released by the U. S. Department of the Interior. The table gives the total production of water power from all sources, including private industrial plants as well as public utilities and Government projects. It also gives the fuel equivalent of water power produced in terms of bitu minous coal on two alternative assumptions, (1) at a constant equivalent of approximately four pounds per kilowatt hour, and (2) at the prevailing equivalent attained by the average central electric station, which diminishes year by year. The constant factor has the advantage of permitting direct com parison between the increase in kilowatt hours of water power produced and the corresponding increase (or decrease) in tons of coal produced. The advantage of the prevailing factor lies in indicating more nearly the amount of fuel that would be needed in any one year to generate the same amount of power in a steam-electric plant, taking into account the steady progress in combustion efficiency. A just comparison of the changing contributions of water power and fuel to the national energy supply would lie somewhere between the results shown by the constant fuel equivalent and by the prevailing central-station equivalent in this table. _It should be noted that much of the hydroelectricity is not directly competitive with coal. Numerous water power developments are in regions where the fuel generally used is oil or gas, and some are in areas where fuel power from any source would be so much higher in cost as to curtail the possible consumption of power. For these reasons it would require an elaborate analysis to determine even approximately how much coal has been actually displaced by water power. The production trends of the two industries, however, are of general interest. 56.5% 44.3% 57.9% 45.0% 56.6% 45.5% 1938 P R O D U C T IO N , S H IP M E N T S A N D ST O C K S O F F IN IS H E D P O R T L A N D C E M E N T , B Y M O N T H S , IN 1938 A N D 1939 (In Thousands o f Barrels) Month Shipments Production Stocks at End of M onth 1938 1939 1938 1939 1938 1939 January___________ February__________ M arch_____________ A pril_______________ M a y _______________ June_______________ July............................. August____________ September_________ 4,534 3,916 5,879 7,983 10,361 10,535 10,968 11,007 10,559 11,556 10,184 8,066 5,301 5,507 8,171 9,674 11,185 11,953 12,644 12,369 11,937 4,390 4,575 7,259 8,691 9,752 10,943 10,164 11,823 11,716 12,357 8,573 6,290 5,640 5,043 8,467 9,654 12,748 12,715 11,755 al3,401 13,104 25,023 24,361 22,979 22,262 22,875 22,467 23,286 22,534 21,374 20,569 22,179 a23,947 23,610 24,092 23,786 23,837 22,251 21,477 22,361 a21,327 20,160 T otal____________ 105,548 106.533 a Revised. Interest in Non-Ferrous Metals for Future Delivery Wanes— Prices Steady The Nov. 2 issue of “ Metal and Mineral Markets” re ported that inventory buying of major non-ferrous metals has slackened further during the last week, partly because prices appear to have stabilized, and there is some uncer tainty over actual first-quarter requirements. However, the spot position in most items continued firm. Producers now look for larger receipts here of foreign ores that formerly moved into the European market. Tin was avail able at lower prices. The United States Government pur chased manganese and tungsten ores during the last week. The publication further stated: C opper Business in domestic copper last week reflected some end-of-month business, sales totaling 11,932 tons, against 9,371 tons in the previous week. Sales of copper to domestic consumers in October totaled 67.025 tons against 183,652 tons in September. Some producers view the present quiet period as temporary and look for demand for forward metal to appear soon. The domestic quotation remained firm at 12y2c., Valley. Anxiety was expressed by some producers regarding the possibility of a reduction in the present 4c. excise tax on copper in a proposed reciprocal trade agreement with Chile. Senator Vandenberg of Michigan stated in the Senate on Oct. 31 as follows: “ I raise the question and respectfully draw it to the attention of the State Department that there is nothing in the Reciprocal Trade Treaty law, as interpreted by its own sponsors at the time of its passage, which permits the President and the State Depart ment to reach into the excise taxes of the country and reduce them by executive order through a trade agreement.” Export copper was available during the week at prices ranging from 12 ^ c . to 13c., f.a.s. New York, depending upon time of shipment. Statistics covering the movement of copper products from fabricators to consumers reveal that approximately 73,000 tons of copper were con- ONE HUNDRED 2 89 2 — T h e C o m m ercia l & F in a n cia l C h ro n ic le — tained in materials shipped during September, which compares with 63,000 tons during August. Lead Producers of lead reported an orderly market for the metal, domestic sales booked during the last week totaling 6,079 tons. Quotations were firm but unchanged at 5.50c., New York, which was also the contract settling basis of the American Smelting & Refining Co., and at 5.35c., St. Louis. Interest in December shipment lead was only moderate. Workers have been asked to return to their jobs at the Perth Amboy refinery, but operations in the plant have not yet been resumed. How ever, some lead was shipped from that center during the last week. St. Joseph Lead Co. is bringing about 4,200 tons of lead concentrate into this country from the Argentine. The concentrate, formerly shipped to Belgium, will go to the Herculaneum, Mo., smelter in bond. Zinc The zinc market passed through a quiet period and sales of the common grades for the last calendar week involved only 1,768 tons, against 4,193 tons in the previous week. Shipments declined to 4,473 tons, against 6,178 tons in the previous week. Reports from the Tri-State district state that one smelting interest has contracted for foreign concentrate and another company is negotiating for foreign supplies. Production is increasing, but many mines must be rehabilitated before additional domestic zinc will become available. Consumption of Prime Western and High Grade zinc is being maintained at satisfactory levels. The galvanizing rate held around 79% of capacity. Prime Western remained unchanged at 6.50c., St. Louis. Tin With larger supplies of tin soon to come into this country, the spot position has eased further. Straits on spot declined to 54c. It was announced yesterday by the International Tin Committee that production quotas for the fourth quarter have been raised to 100%. Straits tin for November arrival was offered at S l ^ c . ; with December at 50e., January at 48%c., and February at 47^c. Chinese tin, 99%, was nominally as follows: Oct. 26, 52.50c.; Oct. 27, 52.50c.; Oct. 28, 52.50c.; Oct. 30, 52.50c.; Oct. 31, 52.50c. ; Nov. 1, 52.00c. DAILY PRICES OF METALS ("E. & M. J.” QUOTATIONS) Electrolytic Copper Straits Tin D o m .,R e fy . E x p ., R efy. N e w York Oct. 26____ Oct. 27____ Oct. 28___ Oct. 30____ Oct. 31____ Nov. 1__ __ 12.275 12.275 12.275 12.275 12.275 12.275 12.700 12.700 12.700 12.700 12.700 12.700 55.750 55.750 55.750 55.500 55.000 54.000 Lead Z in c N e w York St. L ou is St. L ou is 5.50 5.50 5.50 5.50 5.50 5.50 5.35 5.35 5.35 5.35 5.35 5.35 6.50 6.50 6.50 6.50 6.50 6.50 Average _ _ 12.275 12.700 55.292 5.50 5.35 6.50 Average prices for calendar week ended Oct. 28 are: Domestic copper, f.o.b. refinery, 12.275c.; export copper, 12.700c.; Straits tin, 55.708c.; New York lead, 5.500c.; St. Louis lead, 5.350c.; St. Louis zinc, 6.500c.; and silver, 35.750c. The above quotations are “ M. & M. M.'s” appraisal of the major United States markets, based on sales reported by producers and agencies. They are reduced to the basis of cash. New York or St. Louis, as noted. All prices are in cents per pound. Copper, lead and zinc quotations are based on sales for both prompt and futuredeliveries; tin quotations are for prompt delivery only. In the trade, domestic copper prices are quoted on a delivered basis; that is, delivered at consumers’ plants. As delivery charges vary with the destination, the figures shown above are net prices at refineries on the Atlantic seaboard. Delivered prices in New England average 0.225c. per pound above the refinery basis. Export quotations for copper are reduced to net at refineries on the Atlantic seaboard. On foreign business, owing to the European War, most sellers are restricting offerings to f.a.s. transactions, dollar basis. Quotations, for the present, reflect this change in method of doing business. Due to the European war the usual table of daily London prices is not available. However, prices on standard tin were given as follows: Oct. 26, 27, 30, 31 and Nov. 1, spot £230, and there months £230. American Commercial Enterprise The Chamber of Commerce of Morlaix, a port on the north coast of Brittany, in the Department of Finisterre, France, have been occupied recently with the fact, alleged to threaten total ruin to the agriculture of that district, that the Americans are intro ducing into their country butter equal and even superior to the home manufactured article, salted provisions, beeswax, clover seed, and, in fine, almost all the products of France itself, which they manage to deliver, duties paid, at the principal commercial points, at a cheaper rate than the home pro ducers can furnish them. A representation is proposed to be forwarded to the French Government with a view to procure the im position of increased duties on American products. The wine growers are protected by heavy duties on foreign wines, and, al though the commercial interest of the wine growing provinces are opposed to those of the Low Breton country, the Bretons argue that it is the duty of government to accord to all an impartial exercise of its favors. HUNT’S MERCHANTS’ MAGAZINE, September, 1843 Y EAR S OLD N ov. 4, 1939 World Tin Stocks Increased 4,393 Tons During September World stocks of tin increased 4.393 tons during September, according to a cablegram received by the American Iron and Steel Institute from the Statistical Office of the Inter national Tin Research and Development Council, The Hague, Holland. The statistical position of the tin stocks at the end of September as compared with previous periods is shown in the following table: W orld ’s Visible Smellers' Stocks o f T in b Supply o f T in a (L ong T ons ) (L ong T ons ) Total Stocks (L ong Tons) 14,250 50,088 1939—April.. . . . ____________ 35,838 43,802 May__ _______________ . 10,934 32,868 39,368 28,815 10,553 June.. ________________ July____________________ 28,381 11,116 39,497 9,593 34,608 August___ __ _________ 25,015 39,001 September____ _ _ . 9,040 29,961 1938—September.__ 13,831 52,768 38,937 a Including carryover Straits and EuroDe (British Tin Smelting Co. excluded), b Tin in ore and in intermediate products (including carryover British Tin Smelting Co.). Steel Reservations for First Quarter Still Piling Up The “ Iron Age” in its issue of Nov. 2 reported that with steel prices for the first quarter still not known to the con suming trade, an increasing volume of orders for delivery in that period is being built up on the books of the mills. If the present flow of business continues, some products will be sold out for first quarter within another few weeks. The “ Iron Age” further reported: In view o f the fact that recent buying was heaviest in sheets and strip because of the low-priced commitments o f last M ay, it is significant that these flat rolled products are in greater demand for first quarter shipment than any other items. The delay in announcement o f first quarter prices is unexplained, although opinion seems to be growing among buyers that there may be no hori zontal increase but an adjustment o f some prices which are said to be out of line with costs; for example on galvanized sheets. Washington pressure against price increases except where absolutely neces sary, the conservative statement by President Grace o f Bethlehem Steel Co. on price policies, and the relatively good earnings reports for third quarter, with the probability that fourth quarter earnings will be markedly better, have combined to create an impression that restraint will be exer cised by the steel companies in their decisions regarding first quarter quo tations. On top of all this, is a feeling o f uncertainty with regard to the conduct of the European war, suggesting the possibility that Allied pur chases in the United States, except for airplains and trucks, may not immediatly come up to some of the more optimistic expectations. Yet with this uncertainty there is no abatement in the pressure for ship ments o f steel. Steel companies are making every effort to supply those whose needs are most urgent, even to the extent o f asking other customers to agree to deferred deliveries if they do not require the steel immediately. It is now fully apparent that some companies accepted more business in some products for fourth quarter delivery than they can possibly get out, which means that o f necessity some o f these orders must be completed after Jan. 1. A survey of steel consumers and distributers by the “ Iron Age” shows that at the present time there are no excessive inventories of finished steel; in fact, the consumers whose requirements are not yet adequately taken care of seem to outnumber those that are in a fairly comfortable position. With a continuance of present conditions, the first quarter requirements o f all of the major consumers of steel probably will be as large in the first quarter as in the present quarter. A possible exception is the automobile industry, which will take in before the end o f this year virtually all of the hot rolled steel it has on order, leaving cold rolled sheets, which comprise about 60% o f its total steel consumption, as the principal item to be de livered during the first quarter. The automobile companies are making astonishing sales gains and production is advancing despite the retarding influence o f the Chrysler strike. A considerable part of the railroad tonnage that has recently been placed, particularly the rails and track accessories, will be rolled in the next quarter. The Tennessee Coal, Iron & Railroad C o., for example, has shut down its Ensley rail mill until December in order to divert raw steel to other depart ments; the most urgent rail orders having been completed. The bulk of the railroad buying appears to have been done for the present, but some orders are still being placed for equipment and rails. The “ Iron Age” estimates ingot production for the current week at 93% , one point above last week’s estimated rate. Only one loss has occurred, a decline o f one point in the Youngstown area, but the Pittsburgh rate is 93% , only one point below the 1937 peak, while the Chicago rate is two points higher at 9 1 K % , the Eastern Pennsylvania rate has risen two points to 81% . and Buffalo production is again at 92% following a loss last week because of furnace repairs. This week’s production will be about 1,270,000 tons, which is in excess o f the all-time peak weekly average of 1,193,284 tons in M ay, 1929, when the industry operated at 102% o f the then existing capacity. October output may slightly exceed the record-breaking monthly total o f 5,286,246 tons in M ay, 1929. With the probability of continued high operations for some time to come, scrap markets have recovered somewhat from their recent weakness. At Chicago there has been a stiffening o f prices which has raised the “ Iron Age” scrap composite 8c. to $20-96 after three consecutive weekly declines. The export market is firmer because o f the psosibility o f renewed buying by Great Britain and Japan. The Savino Furnace Co., a producer o f ferromanganese has announced an advance to $110 a ton, effective N ov. 1, on all new contracts and spot THE “ IRON AGE” COMPOSITE PRICES Finished Steel Oct. 31, 1939, 2.236c. a Lb. [Based on steel bars, beams, tank plates. One week ago......................... 2.236c.jwire, rails, black pipe, sheets, and hot One month ago________________ 2.236c. [ rolled strips. These products represent One year ago__________________ 2.286c. I 85%. of the United States output. H igh 1939...................................- ................. 2.286c. 1938........................................................2.512c. 1937........................- ............................ 2.512c. 1936....................................................... 2.249c. 1935.............. 2.062c. 1934..................................... 2.118c. 1933.........._................... ......................1.953c. 1932.......... 1.915c. Jan. May Mar. Dec. Oct. Apr. Oct. Sept. 3 17 9 28 1 24 3 6 Low 2.236c. 2.211c. 2.249c. 2.016c. 2.056c. 1.945c. 1.792c. 1.870c. May Oct. Mar. Mar. Jan. Jan. May Mar. 16 8 2 10 8 2 2 15 ONE HUNDRED Volume 149 — T h e C o m m e r cia l & F in a n cia l C h r o n ic le — Pig Iron Oct. 31. 1939, $22.61 a Gross Ton [Based on average tor basic iron at Valley One week ago.............. $22.61-1 furnace and foundry Iron at Chicago, One month ago__________________ 22.611 Philadelphia, Buffalo, Valley, and One year ago__________________ 20 61 [ Southern iron at Cincinnati. YE A R S OLD 2893 Aug. 7........ 60.1% Aug. 14____ 62.1% Aug. 21........ 62.2% Aug. 28........ 63.0% Sept. 4____ 58.6% Sept. 11____ 70.2% Sept. 18____ 79.3% Sept. 25........ 83.8% Oct. 2........ 87.5% Oct. 9........ 88.6% Oct. 16____ 90.3% Oct. 23____ 90.2% Oct. 30____ 91.0% Railroads continue a high light of steel demand, eclipsing the automotive industry, at least temporarily, in view o f strike-hampered operations of the latter. Headed by 69,700 tons for the Santa Fe railroad, last week’s rail orders exceeded 160,000 tons, in addition to a large tonnage of ac cessories. Rail buying is far ahead o f volume a year ago, most of the gain resulting from the fact the carriers did not start to enter the market for 1939 needs until November. Bulk o f the tonnage was booked the first quarter this year. Fear of delays in shipments has prompted the roads to contract for 1940 rails sooner than usual and also has been a factor in stimulating freight car buying. Last week’s car awards totaled 3,200, including 1,500 for the Baltimore & Ohio and 1,400 for the Northern Pacific. Some automotive parts interests have curtailed output either because of closures by strikes or because o f the Chrysler shutdowns. This has lifted some of the pressure for steel shipments, but active demand in other directions has prevented any letdown in deliveries. Automobile assemblies last week totaled 78,105 units, a gain o f 8,000 over the previous week’s revised figure, and comparing with 73,335 a year ago. Brisk retail demand would push output well over 100,000 units were it not for labor troubles. First sizable foreign business in military equipment has appeared in the form o f several thousand trucks placed by the French Government. Bookings of export steel continue restricted by the crowded condition o f mill schedules the next 60 days. Foreign tonnage is expected to occupy a more prominent position on order books next quarter, in view o f avail ability of such business at fairly attractive prices. Inquiries from domestic buyers regarding first quarter quotations continue numerous, but opening of books is deferred. Meanwhile, softening of the scrap market has halted for the time being the threat o f additional cost increments from that direction, although the higher prices paid for old material in recent weeks will become increasingly prominent in cost figures as this tonnage is consumed. “ Steel’s” scrap composite dipped 17 cents last week to $20.83, but prices are resisting a further decline in a number of districts. Tin plate output is holding at 95% and apparently has reached a peak, since additional capacity is not available for use immediately. Little business has been taken for first quarter delivery. Fig iron shipments are sustained at the year’s best rate, influenced by increased consumption and inventory additions. Talk is heard is some districts of possibly another price increase, but such action may be regulated by what revisions are made in steel quotations. Most changes in district steelmaking last week were small. Pitts burgh was up 2 points to 91%: Chicago rose 1 point to 90; Youngstown declined 2 points to 92. Other increases included 244 points to 8844 at Buffalo; 4 points to 94 at Birmingham; 6 points to 78% in eastern Pennsylvania; and 3 points to 80 at St. Louis. New England was off 10 points to 90 and Detroit dropped 1 point to 95. Unchanged areas were Wheeling at 93, Cleveland at 90, and Cincinnati at 88. “ Steel” of Cleveland in its summary of the iron and stee^ markets on Oct. 30, stated: Steel ingot production for the week ended Oct. 30 is placed at 91% of capacity, according to the “ Wall Street Journal” of Nov. 1. This compares with 91% in the previous week and 8 9 % % two weeks ago. The “ Journal” further reported: H igh 1939-................ 1938 .................. 1937 ______ 1936 ......... 1935............ 1934 ....... 1933-........ 1932 ______ Low .$22.61 Sept. 19 $20.61 Sept. 12 23.25 June 21 19.61 July 6 23.25 Mar. 9 20.25 Feb. 16 19.73 Nov. 24 18.73 Aug. 11 18.84 Nov. 5 17.83 May 14 17.90 May 1 16.90 Jan. 27 16.90 Dec. 5 13.56 JaD. 3 14.81 Jan. 5 13.56 Dec. 6 Steel Scrap Oct. 31, 1939, $20,896 a Gross Ton [Based on No. 1 heavy melting steel One week ago________________ $20.875[ quotations at Pittsburgh, Philadelphia, One month ago__________________22.501 and Chicago. One year ago_____________ ____ 14.42 [ H igh 1939 ....................................................._$22.50 1938 ___ 15.00 1937 ......... 21.92 1936-........................- ............................ 17.75 1935 ...................................................... 13.42 1934........................................................ 13.00 1933 ..... 12.25 1932....... 8.50 Oct. Nov. Mar. Dec. Dec. Mar. Aug. Jan. 3 22 30 21 10 13 8 12 Low $14.08 11.00 12.91 12.67 10.33 9.50 6.75 6.43 May 16 June 7 Nov. 10 June 9 Apr. 29 Sept.25 Jan. 3 July 5 The American Iron and Steel Institute on Oct. 30 an nounced that telegraphic reports which it had received indicated that operating rate of steel companies having 97% of the steel capacity of the industry will be 91.0% of capacity for the week beginning Ocl. 30, compared with 90.2% one week ago, 87.5% one month ago, and 56.8% one year ago. This represents an increase of 0.8 point, or 0.9%, from the estimate for the week ended Oct. 23, 1939. Weekly indicated rates of steel operations since Oct. 3, 1938, follow: 1938 1939— Jan. 9-- ..-51.7% Jan. 16- - ...52.7% Jan. 23.. ...51.2% Jan. 30 . . ...52.8% Feb. 6_. ..53.4% Feb. 13.. -.54.8% Feb. 20-. -.53.7% Feb. 27.. -.55.8% Mar. 6._ -.55.1% Mar. 13.. -.55.7% Mar. 20-. -.55.4% Mar. 27... -.56.1% Apr. 3 ... -.54.7% 1939— Apr. 10... -.52.1% Jan. 2____ 50.7% Apr. 17... -.50.9% Oct. 3____ 47.9% Oct. 10____ 51.4% Oct. 17........ 49.4% Oct. 24____ 53.7% Oct. 31____ 56.8% Nov. 7........ 61.0% Nov. 14........ 62.6% Nov. 21........ 61.9% Nov. 28____ 60.7% Dec. 5____ 59.9% Dec. 12____ 57 6% Dec. 19........ 51.7% Dec. 26........ 38.8% 1939— Apr. May May May May May June June June June July July July July July 24.. l._ 8 .. 15.. 22.. 29.. 5 .. 12.. 19.. 26.. 3-. 10-17.. 24.. 31.. ...48.6% ...47.8% ...47.0% ...45.4% ...48.5% ...52.2% ...54.2% ..53.1% ..55.0% ..54.3% -.38.5% -.49.7% -.56.4% -.60.6% ...59.3% 1939— Steel markets are more orderly. Insistence o f buyers for shipments continues, but heavier deliveries are commencing to satisfy more urgent needs and new orders are largely for next quarter delivery. Little additional business is being accepted for shipments by Dec. 31 in bars, plates, wire and flat-rolled steel. While capacity in these products is almost completely filled for remainder o f the year, some producers still able to offer tonnage in sheets and plates are obtaining premiums of $5 a ton for early delivery. First quarter bookings continue to increase despite absence o f definite prices. Buyers are more confident they will escape large price advances but are anxious to be assured o f deliveries. Ingot production is tending to level off as additional plants reach capacity and as forced shutdowns for repairs frequently find no idle furnaces avail able for substitution. Steelmaking last week rose 1 point to 92%, highest capacity engagement since August, 1929, and largest weekly tonnage in history. A year ago the rate was 5444- Another blast furnace has been blown in at Pittsburgh, giving the district 41 active stacks out of 50. Requests o f steel buyers for quickened deliveries and orders to ware houses for tonnages which normally are placed with mills attest to the current and prospective increase in consumption. U. S. Steel is estimated at 8944%, against 89% in the week before and 8644% two weeks ago. Leading independents are [credited with 9144%, compared with 91 44% in the preceding week, and 91% two weeks ago. The following table gives a comparison of the percentage o f production with the nearest corresponding week of previous years, together with the approximate changes, in points, from the week immediately preceding: In d u stry 1939 _____________ 1938 _____________ 1937 _____________ 1936 _____________ 1935 _____________ 1934 _____________ 1933 _____________ 1932 _____________ 1931_____________ 1930 _____________ 1929 _____________ 1928 _____________ 1927 _____________ 91 54 52 73 5243 27 29 1944 30 47 77 4 4 87 66 +3 —2 — 44 + 244 —4 44 — 4 4 +2 —3 —2 44 +1 U . S. Steel 8944 51 43 68 46 42 23 4* 27 18 43 33 52 80 85 69 + 44 +3 +3 — 44 + 144 —5 —1 +2 —3 —2 44 —1 +2 Indep endents 9144 56 60 78 6244 29 4 4 30 20 28 44 44 75 +3 —7 + 4 — 4 + 34 —6 — 4 +2 —3 —3 64 +1 8 8 The Egg Trade of Cincinnati Every day develops some new illustration of the enterprise of our people. The ice trade of the east has grown up in a few years to importance, employing a considerable amount of tonnage, as will be seen by reference to former numbers of this Magazine. In the west, the egg trade bids fair to rival it. The business in that fragile commodity, as we gather from the Cincinnati “ Gazette,” is quite an item in the sum of her productive industry. One firm alone, in Cincinnati (Townsend & Co.), during the first six months of 1845 shipped to New York 234 barrels of eggs; to Baltimore, 70 barrels; and to New Orleans, 3-976 barrels! Each barrel contains 90 dozen, which makes the aggregate shipment 4,624,400 eggs! During the year ending as above, the egg trade of this firm amounted to $36,144.60. There are five other houses in Cincinnati engaged in the business. The foreign egg trade of Cincinnati, the past year, has amounted to 10,700 barrels, which is 963,000 dozen, or 11,556,000 eggs! The aggregate value of this trade for the year, according to the data here given, is $90,361.50. The business is a very hazardous one, owing to the great fluctuations in the New Orleans market. In the course of the past year, for example, western eggs have sold there as high as $22 per barrel, and as low as $3. In addition to this export trade, these establishments do also a heavy home trade. That of Townsend & Co. supplies regularly five steamboats with 36 barrels a tr.p; which, at 12 trips a year, is 432 barrels. It also furnishes constantly the consumption of several of the largest hotels, which use at least 260 barrels per year, and does a retail business amounting to not less than 33 barrels per year. These several amounts make 725 barrels to add to the 4,280 barrels shipped; which gives an aggregate of 5,005 bar rels, or 450,450 dozens, as the annual trade of this one house. Besides this, the annual city consumption is estimated at 1,213,333 dozen. A further recapitulation shows the following results as to value: V a lu e o f 10,700 barrels o f egg s sh ip p e d from t h is p o r t, a t $8.4444 per b b l _______________________ V a lu e o f 1,213,333 d o ze n eggs c o n su m ed in t h is c it y , a t 8 ce n ts per d o z e n ______________________ $90 361.50 9 7,066.64 T o ta l a n n u a l valu e of th e egg tra d e of C in c in n a t i______________________________________________ $187 ,42 8.14 HUNT’S MERCHANTS’ MAGAZINE— September, 1845 2 89 4 ONE HUNDRED — The Commercial & Financial Chronicle — YE A R S OLD N ov. 4, 1939 Current Events and Discussions The Week with the Federal Reserve Banks During the week ended Nov. 1 member bank reserve bal ances decreased $136,000,000. Reductions in member bank reserves arose from increases of $50,000,000 in money cir culation, $20,000,000 in Treasury cash, $23,000,000 in Treas ury deposits with Federal Reserve banks, and $99,000,000 in non-member deposits and other Federal Reserve accounts, and a decrease of $6,000,000 in Reserve bank credit, offset in part by increases of $60,000,000 in gold stock and $3,000,000 in Treasury currency. Excess reserves of mem ber banks on Nov. 1 were estimated to be approximately $5,380,000,000, a decrease of $150,000,000 for the week. The principal change in holdings of bills and securities was a decrease of $15,000,000 in holdings of United States Treasury bills. The statement in full for the week ended Nov. 1 will be found on pages 2924 and 2925. Changes in the amount of Reserve bank credit outstand ing and related items were as follows: In crease 1, 1939 S 6,000,000 .............. N ov . Oct. (+ ) or D ecrea se (—) Since N o v . 2, 1938 25, 1939 § ............. ............. S —2,000,000 —1,000,000 Bills discounted.............................. Bills bought..................................... U. S. Govt, securities, direct and guaranteed.......................... 2,721,000,000 Industrial advances (not including $10,000,000 commit’ts—Nov. 1) 12,000,000 Other reserve bank credits............... 26,000,000 —15,000,000 +157,000,000 Total Reserve bank credit. 2,765,000,000 Gold stock............................ 17,099,000,000 Treasury currency................ 2,932,000,000 —6,000,000 +183,000 000 +60,000,000 +3,028,000,000 +3,000,000 +180,000,000 ............. +8,000,000 —3,000,000 +32,000,000 Member bank reserve balances_11,814,000,000 —136,000,000 +3,128,000,000 Money in circulation_______ 7,352,000,000 + 50,000,000 + 646,000,000 Treasury cash.................. 2,250,000,000 +20,000,000 —501,000,000 Treasury deposits with F. R. banks _ 349,000,000 +23,000,000 —227,000,000 Non-member deposits and other Fed eral Reserve accounts____ l.C31,COO.OOO +99,000,000 +345,000,000 Returns of Member Banks in New York City and Chicago— Brokers’ Loans Below is the statement of the Board of Governors of the Federal Reserve System for the New York City member banks and also for the Chicago member banks for the cur rent week, issued in advance of full statements of the mem ber banks, which will not be available until the coming Monday: ASSETS AND LIABILITIES OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL RESERVE CITIES (In Millions o t Dollars) ------New York City------------------Chicago----------N o v . 1, Oct. 25, N o r . 2, N o v . 1, Oct. 25, N o r . 2, 1939 1939 1939 1938 1939 1938 $ A ssets — $ S 8 S S Loans and investments—total-. 8,679 8,614 7,797 2.086 2,090 1,935 Loans—total________________ 2,955 2,936 521 2,968 561 558 Commercial, industrial and agricultural loans____ ___ 1,672 1,663 1,433 383 379 338 Open market paper_________ 117 141 115 18 19 20 Loans to brokers and dealers in securities_______________ 472 467 578 27 36 28 Other loans for purchasing or carrying securities______ 180 179 199 67 67 66 114 Real estate loans___________ 114 14 14 119 11 Loans to banks____________ 24 23 86 Other loans____ __________ 376 375 412 52 52 49 462 411) Treasury bills_________ _____ 129) f 123 Treasury notes.. ___________ 835 814) 2,902 957 (250 250 iUnited States bonds____ ___ 2,161 2.160J (667 669J Obligations guaranteed by United States Government__ 1.121 1,119 796 ■ 154 156 131 1,145 1.174 1,131 329 326 Other securities__________ ___ 330 3,821 Reserve with Fed. Res. banks__ 5,560 5,761 934 1,127 1,128 74 41 Cash in vault________________ 78 61 33 40 72 72 212 Balances with domestic banks.. 78 247 246 372 442 375 51 Other assets—net____________ 48 47 Liabilities — 1,826 Demand deposits—adjusted___ 8,212 8,356 6,601 1,818 1,673 662 666 619 419 500 465 Time deposits.. ___________ 49 62 United States Govt, deposits__ 48 118 63 63 Inter-bank deposits: 3,440 3,387 2,577 871 867 685 Domestic banks______ ____ 651 12 729 418 16 Foreign banks_________ — ___ 2 ___ ___ __8 Borrowings__________________ 242 259 375 15 15 Other liabilities______ . ____ 17 1,489 1,480 269 266 255 Capital accounts . . 1,4~6 Complete Returns of Member Banks of the Federal Reserve System for the Preceding Week As explained above, the statements of the New York and Chicago member banks are given out on Thursday, simul taneously with the figures of the Reserve banks themselves and covering the same week, instead of being held until the following Monday, before which time the statistics covering the entire body of reporting member banks in 101 cities can not be compiled. In the following will be found the comments of the Board of Governors of the Federal Reserve System respecting the returns of the entire body of reporting member banks of the Federal Reserve System for the week ended with the close of business Oct. 25: The condition statement o f weekly reporting member banks in 101 leading cities shows the following principal changes for the week ended Oct. 25: Increases o f $45,000,000 in loans to brokers and dealers in securi ties, $58,000,000 in holdings o f Treasury bills, and $154,000,000 in demand deposits adjusted. Commercial, industrial and agricultural loans increased $6,000,000. Loans to brokers and dealers in securities increased $37,000,000 in New York City and $45,000,000 at all reporting member banks. Other loans for purchasing or carrying securities increased $9,000,000 in New York City. Holdings o f Treasury bills increased $53,000,000 in New York City and $58,000,000 at all reporting member banks. Holdings o f Treasury notes increased $38,000,000 in New York City and $19,000,000 at all reporting member banks, and declined $12,000,000 in the Richmond district and $8,000,000 in the Cleveland district. Holdings of United States Govern ment bonds declined $11,000,000 in New York City, $10,000,000 in the Chicago district, and $23,000,000 at all reporting member banks. Hold ings o f “ other securities” declined $17,000,000 in New York City and $18,000,000 at all reporting member banks. Demand deposits-adjusted increased $100,000,000 in New York City, $31,000,000 in the Chicago district and $154,000,000 at all reporting member banks. Time deposits increased $9,000,000 in New York City and $12,000,000 at all reporting member banks. Deposits credited to domestic banks declined $13,000,000 each in the Kansas City and San Francisco districts and $31,000,000 at all reporting member banks. Deposits credited to foreign banks increased $22,000,000 in New York City and $23,000,000 at all reporting member banks. A summary of the principal assets and liabilities of re porting member banks, together with changes for the week and the year ended Oct. 25, 1939, follows: In crease 25. 1939 A ssets — S Loans and investments—total___ 22,657,000.000 Loans—total__________________ 8,479,000,000 Commercial, industrial and agri cultural loans______________ 4,292,000,000 Open-market paper__________ 318,000,000 Loans to brokers and dealers in securities__________________ 593,000,000 Other loans for purchasing or carrying securities__________ 510,000,000 Real estate loans_____________ 1,180.000.000 Loans to banks______________ 32,000,000 Other loans_________________ 1,554,000.000 Treasury bills_________________ 629,000,000 Treasury notes________________ 2,145,000 000 United States bonds____________ 5,854,000,000 Obligations guaranteed by United States Government___________ 2,226,000,000 Other securities________________ 3,324,000,000 Reserve with Fed. Res. banks_____10,094.000,000 Cash in vault__________________ 487,000,000 Balances with domestic banks___ 3,090,000,000 Oct. Liabilities — Demand deposits—adjusted_18,721,000.000 Time deposits___________ 5,251,000,000 United States Government deposits 538,000,000 Inter-bank deposits: Domestic banks_______ 7.852,000,000 820.000,000 Foreign banks_________ Borrowings______________ 1,000,000 a Oct. 18 figures revised (New York district). (+ ) or D ecrea se Since (—) Oct. 26, 1938 18. 1939 $ $ + 94,000.000 + 1,164,000.000 + 56,000,000 + 133,000,000 Oct. + 2 , 000,000 + 6 .000,000 + 385,000,000 —27,000,000 + 45,000.000 — 135,000,000 + 9,000,000 —62,000.000 + 15.000.000 —71,000.000 + 28,000,000 — — — 1 , 000.000 1 , 000.000 1 . 000,000 + 58,000.000) + 19,000.0001 +474,000,000 —23.000.000J — 18,000.000 + 539,000.000 + 18.000,000 + 7,000,000 a + 3,000,000 +49,000.000 + 595,000,000 + 2 .000,000 + 66 , 000.000 +2,894,000,000 + 154,000,000 +2,726,000,000 + 12,000,000 +95.000,000 + 1 , 000,000 — 8 , 000,000 —31,000,000 +1,656,000.000 + 23,000,000 +328,000,000 ......................... — 2 , 000,000 Polish Government Informs United States It Considers Germany’s Annexation of Polish Provinces as Illegal Act The Polish Government informed the United States on Oct. 30 that it considers Germany’s annexation of part of the Polish Republic as null and void. The note says it constitutes “a new violation by the Reich of the elementary principles of international law relating to the conduct of an enemy in occupied territory.” The notification was made to Secretary of State Cordell Hull through Polish Ambassador Count Jerzy Potocki. The Polish note read as follows: The Ambassador of Poland presents his compliments to the Secretary of State and upon instructions of his Government has the honor to inform him that the Polish Government have learned that the German Reich decreed the annexation from Nov. 1, 1939, of part of the territory of the Polish Republic, creating two new provinces called West Prussia and Posen and enlarging the existing provinces of German-Silesia and East Prussia. ' The Polish Government declare that this administrative organization constitutes a new violation by the Reich of the elementary principles of international law relating to the conduct of an enemy in occupied terri tory. Hence, the Polish Government consider this illegal act as null and void. Germany’s annexation of these Polish provinces was mentioned in our issue of Oct. 21, page 2437. Latvian-American Chamber of Commerce Clarifies Recent Agreement Made Between Latvia and Russia In response to inquiries from American business men as to the status of trade relations and shipping facilities between the United States and Latvia, the board of directors of the Latvian-American Chamber of Commerce recently under took to clarify the agreement made Oct. 5 between Latvia and Soviet Russia, which it said was not generally understood. The Chamber’s explanation follows: The Soviet-Latvia Mutual Aid and Non-Aggression Treaty has in no way affected the sovereign rights and independence o f Latvia and does not in any way interfere with its trade relations with any other nation. Nor are the economic, social or industrial systems interfered with. The purpose o f the treaty is one o f mutual assistance against aggression by any European power for which purpose certain parcels o f land are leased to the U. S. S. R. by Latvia for the establishment o f air and naval defeiisas for which the Russian Government pays a rental. The term of the treaty is 10 years. No restrictive regulations have been established except those brought about by the present war -which, o f course, are for the curation o f the conflict. Volume 149 ONE HUN DRED The — Commercial & Financial Chronicle — Because o f the unsettled shipping conditions from Europe, the LatvianAmerican Line has wit hin this month increased the number o f ships plying between Riga, Latvia, to the United States from one to five and hopes to increase its facilities as the demand requires. Latvia’s neutrality puts her in an important and advantageous position for increased trade with other neutral nations. The port o f Riga is now considered an excellent port for trans-shipping and this form o f commerce is developing rapidly. The Latvian-American Chamber o f Commerce is keeping American manufacturers and business men posted on commercial relations who find this service very helpful during these disturbed times, when clarification o f existing trade procedure is necessary. The signing and text of the agreement was in our issue of Oct. 7, page 2154. Freighter City of Flint, Following Departure from Port of Murmansk, Russia, and Tromsoe, Norway, Re ported En Route to Germany in Charge of German Prize Crew— Great Britain and Germany Asked by State Department to Assure Safety of American Crew The State Department at Washington on Oct. 31 asked both Great Britain and Germany to avoid any action which might imperil the 40 members of the captive American crew aboard the freighter City of Flint, which left the port of Murmansk, Russia, on Oct. 27, in charge of the German prize crew which had captured the vessel, as noted in our Oct. 21 issue, page 2G12. On Oct. 30, according to United Press accounts from Copenhagen, Denmark, the freighter sailed from Tromsoe, Norway, headed for a German port through Great Britain’s naval blockade. The Copenhagen United Press advices further said, in part: Captain Joseph A Gainard and his American crew o f 40 men were prisoners aboard their ship as she set out to run the gauntlet o f British warships in the North Sea with a German prize crew in command, Tromsoe dispatches said. The City o f Flint put out into a rainy and heavy sea at 4 p. m ., sup posedly heading down the Skagerrak into the mine-infested waters o f the Danish Straits. The ship, captured in the Atlantic on Oct. 9 by the pocket battleship Deutschland, arrived in Tromsoe shortly after noon from the Russian port o f Murmansk on the Arctic Sea, where she was interned temporarily. The American ship, putting in a second appearance at Tromsoe since her capture, entered the Norwegian northern port under the Nazi flag and asked Norwegian authorities to notify the German Consul there that sup plies were needed. The consul, Henrik Jebens, went aboard the vessel, found the American crew on board and talked with the Germans. Norwegian authorities, reluctant to become involved in a situation which already has stirred up American indignation against both Germany and Russia, ordered the vessel to be taken out o f the Tromsoe Roads without delay. The City o f Flint sailed— without taking on supplies o f any kind— Herr Jebens said, with a Norwegian warship escorting her out of territorial waters. On Oct. 28 the State Department issued a statement relative to the seizure of the Flint, in which it referred to the Soviet Government as “ withholding adequate coopera tion with the American Government with respect to assem bling and disclosing to the American Embassy in Moscow the essential facts pertaining to the landing, the where abouts and welfare of the American crew; by the facts that it was first alleged by the German authorities that the need for charts was the ground for bringing the vessel into port; and by the fact that later this ground seems to have been abandoned and a new ground or theory relating to defective machinery was set up. In indicating on Oct. 31 that the United States Govern ment through the State Department was informing Great Britain and Germany of its expectation that all belligerents would guard against exposing the Americans on the City of Flint to unnecessary dangers, United Press accounts from Washington on that date added: Instructions have been forwarded to the London and Berlin embassies also to make representations o f this Government’s concern for the safety of the Flint’s American crew. The United States representations emphasized the grave concern that officials feel for the safety o f the Americans. Secretary o f State Cordell Hull said yesterday that every step was being taken that could be calculated to contribute most to the safety o f the Americans and showed concern for their welfare. $152,000 of City of Antwerp External Loan 5% Gold Bonds Drawn for Redemption The National City Bank of New York as fiscal agent, is notifying holders of City of Antwerp external loan sinking fund 5 % gold bonds due Dec. 1, 1958, that there has been drawn by lot for redemption on Dec. 1, 1939 through opera tion of the sinking fund, 8152,000 principal amount of these bonds. Payment of the drawn bonds at par will be made on and after Dec. 1, 1939, at the head office of the Bank, 55,,Wall Street, New York City. Hungary to Redeem Nov. 1 Coupons on Two Bond Issues The Cash Office of Foreign Credits, at Budapest, Hun gary, announced Nov. 1 through its central paying agents in New York, Schroder Trust Co., that it will redeem coupons due Nov. 1, 1939 on the following bonds at the rate of $8.75 per coupon detached from a $1,000 bond: Hungarian Land Mortgage Institute 7 K % sinking fund land mortgage gold bonds series “ A ” and series “ B ” dollar bonds; and National Hungarian Industrial Mortgage Institute Ltd. first mort- YE A R S OLD 2895 gage sinking fund 7 % gold bond series “ A ” dollar issue. Coupons presented in acceptance of this offer, which ex pires April 30, 1940, and which is made only to persons resident outside of Hungary, must be transmitted to Schro der Trust Co., 46 William St., New York. $38,590 Available for Payment on Kingdom of Yugo slavia 5% Funding Bonds Due Nov. 1, 1956— $15,819 To Be Paid on Second Series of Bonds The Chase National Bank, New York, acting for the fis cal agents under Kingdom of Yugoslavia (formerly King dom of the Serbs, Croats and Slovenes) general bond dated Nov. 1, 1932, is notifying holders o f 5 % funding bonds due Nov. 1, 1956, and fractional certificates for these bonds, that it will receive up to noon on Nov. 9,1939 written pro posals for the sale to it of bonds and certificates in an amount sufficient to exhaust the sum of $38,590 available in the sinking fund. The announcement in the matter also states: Proposals should be made at a price based on principal alone, exclusive o f accrued interest, which will be added to the stated price, and no pro posals will be accepted at a price in excess o f the principal amount and accrued interest. The Chase National Bank, acting for the fiscal agents, will alsorecieve proposals up to noon on N ov. 10, 1939 for the sale to it o f the Kingdom’s 5% funding bonds, second series, due N ov. 1, 1956, and fractional certifi cates, on the same basis, in an amount sufficient to exhaust the sum of $15,819 available in the sinking fund. Redemption of $588,380 of Republic of Cuba Sugar Stabilization 5J^% Gold Bonds on Dec. 1 The Chase National Bank, New York, as trustee, is noti fying holders of Republic of Cuba sugar stabilization sink ing fund 5 ^ % secured gold bonds, due Dec. 1, 1940, that there has been called by lot for redemption on Dec. 1, 1939, $588,380 principal amount of these bonds, at par and ac crued interest, for the sinking fund. Payment of the drawn bonds will be made on and after Dec. 1, at the principal New York office of The Chase National Bank or The Nat ional City Bank, or at their Havana, Cuba, offices. New York Stock Exchange Rules on Greek Government 40-Year 7% Gold Bonds The New York Stock Exchange on Oct. 31 issued the fol lowing rulings on Greek Government 40-year 7% secured sinking fund gold bonds, due 1964: NEW Y O R K STOCK EXCH ANGE Committee on Floor Procedure O c t o b e r , 31, 1939. Notice having been received that payment o f $14 per $1,000 bond will be made on presentation for stampting of the coupon due N ov. 1, 1939, from Greek Government 40-year 7% secured sinking fund gold bonds due 1964: The Committee on Floor Procedure rules that the bonds dealt in under option (b) below, be quoted ex-interest $14 per $1,000 bond on N ov. 1, 1939: That the bonds shall continue to be dealt in “ Flat” and to be a delivery in settlement o f Exchange Contracts made beginning N ov. 1, 1939, must carry the coupons as follows: (a) M ay 1, 1933, and N ov. 1, 1933, coupons, ($9.62 paid). M ay 1, 1934, and N ov. 1, 1934, coupons, ($12.25 paid), M ay 1, 1935, to N ov. 1, 1936. coupons, inclusive, (40% paid), and subsequent coupons; (b) M ay 1, 1933, and N ov. 1, 1933, coupons, ($9,62 paid), M ay 1, 1934, and N ov. 1, 1934, coupons, ($12.25 paid), M ay 1, 1935, to N ov. 1, 1939, coupons, inclusive, (40% paid), and subsequent coupons: and That contracts made without specification shall be considered to have been for bonds under option (a). CHARLES E. SALTZM AN, V ic e -P r e s id e n t a n d S ecr e ta ry . Tenders of Italian Public Utility Credit Institute External 7% Gold Bonds Invited to Exhaust Funds in Sinking Fund City Bank Farmers Trust Co., New York, acting for the fiscal agents, is inviting tenders of Istituto di Credito per Le Imprese di Pubblica Utilita (Italian Public Utility Credit Institute) external 7 % secured sinking fund gold bonds, hydro-electric issue of Jan. 1, 1926, due Jan. 1, 1952, at prices not exceeding par and accrued interest, in an amount sufficient to exhaust any funds available in the sinking fund. Tenders will be received until noon on Nov. 9, 1939 at the Corporate Trust Department of the Bank, 22 William St. Letters of acceptance or declination of the bonds offered will be mailed by the bank on Nov. 9, and if bonds accepted are not delivered by Nov. 13, the bank reserves the right to cancel the acceptance. Member Trading on New York Stock and New York Curb Exchanges During Week Ended Oct. 14 The Securities and Exchange Commission made public yesterday (Nov. 3) figures showing the volume of total round-lot stock sales on the New York Stock Exchange and the New York Curb Exchange for the account of all members of these exchanges in the week ended Oct. 14, continuing a series of current figures being published weekly by the Com mission. Short sales are shown separately from other sales in the New York Stock Exchange figures. Trading in the week ended Oct. 14 included only five days since both the Stock and Curb Exchanges were closed on Columbus Day, Oct. 12. The Stock Exchange members traded for their own ac count (in round-lot transactions) in amount of 1,397,175 2896 ONE HUNDRED — The Commercial & Financial Chronicle — YE A R S OLD N ov. 4, 1939 shares, an amount which was 20.64% of total transactions of 3,384,530 shares on the Exchange during the week ended Oct. 14. During the preceding week ended Oct. 7 trading by the Stock Exchange members amounted to 2,551,015 shares, or 21.14% of total transactions of 6,033,710 shares. On the New York Curb Exchange, total round-lot transac tions for account of all members during the week ended Oct. 14 were 214,995 shares; as total transactions on the Curb Exchange during the week amounted to 571,640 shares, the member trading for their own account was 18.81% of total transactions, which compares with a percentage of 19.40 in the previous week ended Oct. 7, when member trad ing amounted to 350,110 shares and total transactions 902,440 shares. The figures for the week ended Oct. 7 were given in these columns of Oct. 28, page 2614. The Commission, in making available the data for the week ended Oct. 14, said: Odd-Lot Trading on New York Stock Exchange During Week Ended Oct. 28 On Nov. 2 the Securities and Exchange Commission made public a summary for the week ended Oct. 28 of complete figures showing the volume of stock transactions for the odd-lot account of all odd-lot dealers and specialists who handle odd lots on the New York Stock Exchange, continu ing a series of current figures being published by the Com mission. Figures for the previous week ended Oct. 21 were reported in our issue of Oct. 28, page 2614. The figures are based upon reports filed with the Commission by the odd-lot dealers and specialists. The data published are based upon weekly reports filed with the New York Stock Exchange and the New York Curb Exchange by their respective members. These reports are classified as follows: O d d - l o t s a le s b y d e a le r s ( c u s t o m e r s ’ p u r c h a s e s ): New York Stock Exchange T o t a l n u m b e r o t r e p o r t s r e c e i v e d ________________________________ 1 . R e p o r t s s h o w in g New York Curb Exchange S T O C K T R A N S A C T IO N S F O R T H E O D D -L O T A C C O U N T O F O D D -L O T D E A L E R S A N D S P E C IA L IS T S O N N E W Y O R K S T O C K E X C H A N G E W e e k E n d e d O c t . 28, 1939 Total for Week 3 5 ,2 2 8 N u m b e r o f o r d e r s _____________________________________________ 1 .0 0 9 . 0 5 3 N u m b e r o f sh a res 792 D o l l a r v a l u e .................................................................................. ..............................................$ 3 5 ,7 7 0 ,3 8 8 t r a n s a c t i o n s a s s p e c i a l i s t s ___________ 1 99 101 2 . R e p o r t s s h o w i n g o t h e r t r a n s a c t i o n s I n it i a t e d o n t h e f l o o r __________________________________________________________ 240 3 . R e p o r t s s h o w i n g o t h e r t r a n s a c t i o n s i n it ia t e d o f f t h e f l o o r __________________________________________________________ 224 582 3 5 ,5 2 3 N u m b e r o f sh a res: C u s t o m e r s ’ s h o r t s a l e s ________________________________________________________ C u s t o m e r s ’ o t h e r s a l e s . a _____________________________________________________ 1 1 ,0 H 9 1 8 ,0 6 5 78 547 488 35 035 45 4 . R e p o r t s s h o w in g O d d - l o t p u r c h a s e s b y d e a l e r s ( c u s t o m e r s ’ s a le s ) : N u m b e r o f ord ers: C u s t o m e r s ’ s h o r t s a l e s ________________________________________________________ C u s t o m e r s 'o t h e r s a l e s . a _____________________________________________________ C u s t o m e r s ’ t o t a l s a l e s ______________________________________________________ 1 ,0 7 0 n o t r a n s a c t i o n s . . _____________________ Note— O n t h e N e w Y o r k C u r b E x c h a n g e t h e r o u n d - l o t t r a n s a c t i o n s o f s p e c ia lis t s in s t o c k s in w h ic h t h e y a r e r e g is t e r e d a r e n o t s t r ic t l y c o m p a r a b le w it h d a t a s im ila r ly d e s ig n a t e d f o r t h e N e w Y o r k S t o c k E x c h a n g e , s i n c e s p e c i a l is t s o n t h e N e w Y o r k C u r b E x c h a n g e p e r fo r m t h e fu n c t io n s o f t h e N e w Y o r k S t o c k E x c h a n g e o d d -lo t d e a le r a s w e ll a s t h o s e o f t h e s p e c i a l is t The number of reports in the various classifications may total more than the number of reports received because, a t times, a single report may entries in more than one classification. ca rry T O T A L R O U N D -L O T S T O C K S A L E S O N T H E N E W Y O R K S T O C K E X C H A N G E A N D R O U N D -L O T S T O C K T R A N S A C T IO N S F O R A C C O U N T O F M E M B E R S * (S H A R E S ) W e e k e n d e d O c t . 1 4 , 193 9 Total for Week A. T o t a l r o u n d - l o t s a le s : S h o r t s a l e s _________________________________________________ O t h e r s a l e s , b ______________________________________________ T o t a l s a le s ______________________________________________________ B. R o u n d -lo t tr a n s a c tio n s fo r a c c o u n t o f m e m b e r s , e x c e p t fo r t h e o d d - l o t a c c o u n t s o f o d d - l o t d e a le r s a n d s p e c ia lis t s : 1. T r a n s a c t io n s o f s p e c i a l is t s in s t o c k s in w h ic h t h e y a re r e g is t e r e d — T o t a l p u r c h a s e s _______________________________ 1 4 8 ,2 2 0 3 ,2 3 6 ,3 1 0 O t h e r t r a n s a c t i o n s in it ia t e d o n t h e f l o o r —T o t a l p u r c h a s e s 3 0 ,3 0 0 1 7 8 ,4 0 0 T o t a l s a l e s __________________________________________________ 2 0 8 ,7 0 0 4 2 4 ,8 2 0 3 . O t h e r t r a n s a c t i o n s i n it ia t e d o f f t h e f l o o r - T o t a l p u r c h a s e s 8 0 ,4 2 5 S h o r t s a l e s _____________________________________________________ O t h e r s a l e s . b _________________________________________________ 1 1 ,2 5 0 9 9 ,4 1 0 T o t a l s a l e s __________________________________________________ 1 1 0 ,6 6 0 T o ta l pu rch a ses a n d s a le s _____________________________ 1 9 1 ,0 8 5 4 . T o t a l — T o t a l p u r c h a s e s _______________________________________ 6 7 9 ,1 3 5 S h o r t s a l e s _____________________________________________________ O t h e r s a l e s . b ______ _____________ 1 0 7 ,3 7 0 6 1 0 ,6 7 0 T o t a l s a l e s __________________________________________________ 7 1 8 ,0 4 0 1 ,3 9 7 ,1 7 5 2 0 .6 4 TOTAL R O U N D -L O T STOCK SALES ON THE NEW YORK CURB E X C H A N G E A N D S T O C K T R A N S A C T IO N S F O R A C C O U N T O F M E M B E R S * (S H A R E S ) W e e k e n d e d O c t . 1 4 , 1939 Total for Week A . T o t a l r o u n d - l o t s a l e s ______________________________________________ B . R o u n d -lo t tr a n s a c tio n s fo r a c c o u n t o f m e m b e rs: 1. T r a n s a c t io n s o f s p e c i a l is t s in s t o c k s in w h ic h t h e y a r e r e g is t e r e d — B o u g h t _______________________________________ S o l d ................................. T o t a l ............. ................... 7 0 ,5 9 5 8 2 ,8 9 5 T o t a l . ................................................................................................... 1 3 .4 3 3 2 ,7 7 5 3 . O t h e r t r a n s a c t i o n s in it ia t e d o f f t h e f l o o r — B o u g h t ______ S o l d .............................................................................................................. 1 8 ,4 6 0 1 0 ,2 7 0 T o t a l . ................................................................................................... 2 .8 7 2 8 ,7 3 0 4 . T o t a l — B o u g h t .............................................................. ............ „ ............ S o l d .............................................................................................................. 1 0 7 ,0 8 0 1 0 7 ,9 1 5 2 .5 1 2 1 4 ,9 9 5 C . O d d - l o t t r a n s a c t i o n s f o r a c c o u n t o f s p e c i a l is t s — B o u g h t ___ S o l d .............................................................................................................. T o t a l ...................................................................................................... 1 8 .8 1 5 1 ,7 8 8 3R 934 8 3 ,7 2 2 m e m b e r s , t h e ir Oct 3 1 , 1 93 9 Value 1 5 3 ,4 9 0 T o t a l ............................... As of Sept. 30, 1939, New York Stock Exchange member total net borrowings in New York City on collateral amounted to $467,059,868. The ratio of these member total net borrow ings to the market value of all listed stocks, on this date, was therefore 0.98%. In the following table listed stocks are classified by leading industrial groups with the aggregate market value and average price for each: Per Cent a 1 8 ,0 2 5 1 4 ,7 5 0 fir m s and t h e ir a S h a r e s in m e m b e r s ’ t r a n s a c t i o n s a s p e r c e n t o f t w i c e t o t a l r o u n d - l o t v o l u m e . I n c a lc u la t in g t h e s e p e r c e n t a g e s , t h e t o t a l o f m e m b e r s ’ t r a n s a c t i o n s is c o m p a r e d w it h t w i c e t h e t o t a l r o u n d - l o t v o l u m e o n t h e E x c h a n g e f o r t h e r e a s o n t h a t t h e t o t a l o f m e m b e r s ’ t r a n s a c t i o n s in c lu d e s b o t h p u r c h a s e s a n d s a le s , w h ile t h e E x c h a n g e v o l u m e I n c lu d e s o n l y s a le s . R o u n d - l o t s h o r t s a le s w h ic h a r e e x e m p t e d fr o m r e s t r ic t io n b y t h e C o m m i s s i o n ’s r u le s a r e in c lu d e d w it h “ o t h e r s a l e s .” 2 2 3 ,3 7 0 a S a le s m a r k e d " s h o r t e x e m p t ” a r e r e p o r t e d w it h " o t h e r s a le s .” b S a le s t o o f f s e t c u s t o m e r s ’ o d d - l o t o r d e r s , a n d s a le s t o l i q u id a t e a l o n g p o s it i o n w h ic h is le e s th a n a r o u n d l o t a r e r e p o r t e d w it h “ o t h e r s a le s ” 5 7 1 ,6 4 0 O t h e r t r a n s a c t i o n s in it ia t e d o n t h e f l o o r — B o u g h t ________ S o l d .................................... b 1 7 0 ,8 8 0 2 .8 2 1 1 .5 4 2 1 6 ,1 2 0 T o t a l p u r c h a s e s a n d s a le s ______________________________ * T h e t e r m “ m e m b e r s ” in c lu d e s a ll E x c h a n g e p a r t n e r s , in c lu d in g s p e c i a l p a r t n e r s . T o t a l s a l e s ____________________________________________________________________ R o u n d -lo t p u rch a se s b y d e a le rs: N u m b e r o f s h a r e s _________________________________________________________________ As of the close of business Oct. 31, 1939 New York Stock Exchange mem ber total net borrowings in New York City on collateral amounted to $534,228,504. The ratio of these member total borrowings to the market value of all listed stocks, on this date, was therefore 1.13% . Member borrowings are not broken down to separate those only on listed share collateral from those on other collateral; thus those ratios usually will exceed the true relationship between borrowings on all listed shares and their market value. 3 9 8 ,6 8 0 7 8 1 ,2 7 0 s a le s _____________________________ S h o r t s a l e s _____________________________________________________ O t h e r s a l e s . b _________________________________________________ 2 1 00 1 7 0 ,7 8 0 6 .2 8 6 5 ,8 2 0 3 3 2 ,8 6 0 T o ta l pu rch a ses a n d s a le s _____________________________ R o u n d - l o t s a le s b y d e a le r s : N u m b e r o f sh a res: s n o r t s a l e s _______________________________________________________________________ O t h e r s a le s , b ___________________________________________________________________ Market Value of Listed Stocks on New York Stock Exchange on Oct. 31, $47,373,972,773, Compared with $47,440,476,682 Sept. 30— Classification of Listed Stocks As of the close of business on Oct. 31, 1939, there were 1,230 stock issues aggregating 1,430,953,734 shares listed on the New York Stock Exchange with a total market value of $47,373,972,773, the Exchange announced on Nov. 3. This compares with 1,228 stock issues aggregating 1,430,884,863 shares listed on the Exchange Sept. 30 with a total market value of $47,440,476,682, and with 1,245 stock issues aggre gating 1,425,830,740 shares with a total market value of $47,001,767,212 on Oct. 31, 1938. In its announcement of Nov. 3, the Stock Exchange said: 3 8 2 ,5 9 0 T o t a l s a le s ......................................................................................... T o t a l p u rch a ses a n d 9 2 9 ,1 4 9 2 9 ,8 1 7 ,8 3 2 3 ,3 8 4 ,5 3 0 S h o r t s a l e s _____________________________________________________ O t h e r s a l e s . b _________________________________________________ 2 Per Cent a C u s t o m e r s ’ t o t a l s a l e s ______________________________________________________ D o l l a r v a l u e _______________________________________________________________________ A u t o s a n d a c c e s s o r i e s __________ ________ F i n a n c i a l ____________________________________ C h e m i c a ls ___________________________________ B u i l d i n g ______________________ ______________ E l e c t r i c a l e q u ip m e n t m a n u f a c t u r i n g .. F o o d s _________________________ _____ _______ R u b b e r a n d t i r e s __________________________ F a r m m a c h i n e r y __________________________ A m u s e m e n t s ______________________________ L a n d a n d r e a l t y ___________________________ M a c h i n e r y a n d m e t a l s ___________________ M i n in g (e x c l u d i n g i r o n ) __________________ P e t r o l e u m _________________ _______________ _ P a p e r a n d p u b l is h i n g ___ _________________ R e t a i l m e r c h a n d i s i n g ____________________ R y . o p e r . & h o l d in g c o ’ s . & e q p t . m f r s . S t e e l, ir o n a n d c o k e ______________________ T e x t i l e s ............................. ....... .............................. G a s a n d e l e c t r i c ( o p e r a t i n g ) ____________ G a s a n d e le c t r i c ( h o l d i n g ) _______________ C o m m u n i c a t i o n s ( c a b le , t e l . & r a d i o ) . M i s c e ll a n e o u s u t i l i t i e s ___________________ A v i a t i o n __________ ______________________ _ B u s in e s s a n d o f f i c e e q u i p m e n t .............. .. S h i p p i n g s e r v i c e s ............... .............................. S h ip o p e r a t i n g a n d b u i l d i n g . ................... M i s c e ll a n e o u s b u s in e s s e s ______ __________ L e a t h e r a n d b o o t s _____ _______ ___________ T o b a c c o ......... ................................................ .. G a r m e n t s __________ ________________________ U . S . c o m p a n i e s o p e r a t i n g a b r o a d _____ F o r e i g n c o m p a n i e s ( i n c l . C u b a & C a n .) S 3 ,8 4 3 ,3 9 8 ,3 6 2 9 5 2 ,3 6 7 ,8 8 1 6 ,3 8 4 ,5 7 6 ,3 0 3 5 9 9 ,9 9 6 ,6 9 3 l ,6 o 6 ,8 5 1 , 1 6 7 2 ,9 2 0 ,2 9 0 ,9 9 8 4 3 7 ,2 7 7 ,5 2 0 6 7 9 ,4 8 7 ,3 1 6 2 6 1 ,8 4 0 ,9 5 9 2 0 ,2 9 0 ,6 5 1 1 ,7 4 1 ,6 7 3 ,8 7 8 1 ,8 7 7 ,4 8 7 ,4 0 7 4 ,6 1 9 ,8 4 0 ,9 1 0 4 1 7 ,1 4 7 ,8 5 8 2 .5 4 6 ,9 8 2 ,7 1 4 3 .3 9 8 ,5 9 6 .9 6 1 2 ,6 6 2 ,9 7 0 .0 2 7 2 7 6 ,3 2 6 ,0 8 5 2 ,3 6 1 ,9 5 5 ,9 6 7 1 ,4 0 5 ,0 4 6 .8 0 1 3 ,6 3 1 .0 2 0 ,8 2 6 1 3 8 ,2 7 3 ,2 9 5 6 2 7 .1 9 8 ,4 2 6 3 3 2 ,5 5 3 ,8 1 2 9 ,8 1 0 .5 3 9 5 1 .1 1 6 ,5 2 2 1 2 0 ,2 3 6 ,9 9 9 1 9 6 ,4 5 3 .8 7 6 1 ,5 3 8 ,0 3 9 ,3 9 1 4 0 .5 4 8 ,2 1 7 6 5 1 ,0 0 5 .9 1 9 9 7 3 .3 0 8 ,4 9 3 A ll lis t e d s t o c k s ............................................ 4 7 .3 7 3 ,9 7 2 ,7 7 3 Sept. 3 0 , 1 9 3 9 Aver. Price S 3 2 .8 6 1 9 .1 5 7 1 .6 8 2 7 .5 7 4 2 .9 4 31 95 4 1 .7 8 5 1 .3 9 1 4 .3 8 4 .1 0 2 7 .3 5 2 9 .2 8 2 3 .9 7 2 2 .2 9 3 4 .3 9 2 9 .3 1 5 3 .1 6 2 4 .2 5 2 8 .8 5 1 4 .6 7 9 5 .7 4 1 3 .2 8 2 3 .6 7 2 9 .1 2 5 .3 4 1 6 .9 9 2 0 .2 4 2 6 33 5 5 .0 0 2 4 .1 7 1 9 .4 7 2 4 .0 2 Market Value A ver. Price S 3 ,8 9 1 ,9 5 7 ,4 7 1 9 4 1 .4 7 4 ,4 8 4 6 ,4 6 2 ,1 2 6 , 6 4 5 5 7 5 .0 7 3 ,1 5 6 1 ,7 1 2 .0 3 5 ,0 5 2 2 ,8 2 8 ,5 7 5 , 6 4 6 4 5 1 ,2 1 7 ,7 3 3 7 0 7 ,0 2 0 .3 5 6 2 3 2 ,6 1 2 , 8 9 5 2 2 ,2 3 7 ,5 9 1 1 ,7 7 8 .1 2 1 ,7 1 4 1 ,9 3 8 ,1 8 1 ,5 5 6 4 ,7 8 2 ,7 3 7 , 2 3 3 4 2 1 ,2 8 4 ,2 5 6 2 ,4 1 0 .9 8 0 . 6 3 9 3 ,5 7 6 ,6 5 7 , 7 3 6 2 ,7 5 9 ,2 1 9 , 5 3 7 2 7 6 ,7 2 8 ,3 0 0 2 .2 8 9 ,3 6 9 , 4 8 5 1 ,3 7 3 ,7 2 0 .6 4 6 3 ,5 3 3 ,7 3 6 , 1 9 5 1 3 7 ,2 7 4 ,5 1 4 5 5 0 .3 5 9 ,9 2 7 3 1 3 .7 9 0 .9 0 5 1 1 ,8 6 4 ,7 4 6 5 1 .4 9 9 .5 7 9 1 1 2 .5 4 3 ,1 0 7 2 0 8 .1 3 6 ,4 1 8 1 ,4 5 8 .2 9 0 ,9 4 9 3 7 .8 9 9 .5 8 2 6 7 4 ,3 1 9 ,6 7 7 9 1 6 ,4 2 8 ,9 5 2 $ 3 3 .2 8 1 8 .9 3 7 2 .5 1 2 6 .4 2 4 4 .3 7 3 0 .9 5 4 3 .1 1 5 3 .4 7 1 2 .7 7 4 .4 9 2 7 .9 3 3 0 .2 3 2 4 .8 1 2 2 .5 2 3 2 .5 7 3 0 .8 8 5 5 .2 8 2 4 .2 8 2 8 .0 4 1 4 .3 4 9 3 17 1 3 .1 8 2 0 .7 8 2 7 .4 8 5 .1 6 1 8 .1 1 1 8 .9 5 2 7 .8 8 5 2 .1 4 2 2 .5 9 2 0 .1 6 2 2 .6 1 3 3 .1 1 4 7 ,4 4 0 ,4 7 6 , 6 8 2 3 3 .1 5 Volume 149 ONE HUNDRED — The Commercial & Financial Chronicle — We give below a two-year compilation of the total market value and the average price of stocks listed on the Exchange. Y E A R S OLD 2897 include the name of the authority by which the non-member is supervised or the name of the national securities exchange of which he is a member. Following is the new rule on registered employees: M artel Value 1937— O ct. 1 _____ N ov 1 _____ 1 _____ D ec. 1938— Jan. 1 _____ 1 _____ F eb. M a r . 1 _____ A p r. 1 _____ M ay 1 _____ 1 _____ June J u n e 3 0 _____ J u ly 3 0 _____ A d g . 3 1 _____ S e p t . 3 0 _____ $ 4 9 0 3 4 , 0 3 2 ,6 3 9 4 4 , 6 6 9 , 9 7 8 ,3 1 8 4 0 ,7 1 6 ,0 3 2 ,1 9 0 $ 3 5 .0 7 ’ 3 1 .7 7 2 8 .9 2 3 8 , 8 6 9 , 1 4 0 ,6 2 5 3 9 ,2 4 2 ,6 7 6 ,8 3 7 4 1 , 1 7 2 , 8 6 1 ,5 3 5 3 1 ,8 5 8 ,4 6 1 ,8 7 1 3 5 , 8 6 4 , 7 6 7 ,7 7 5 3 4 ,5 8 4 ,6 1 4 ,8 0 3 4 1 ,9 6 1 , 8 7 5 ,1 5 4 4 4 , 7 8 4 , 2 2 4 ,2 1 5 4 3 , 5 2 6 , 4 8 8 ,2 1 5 4 3 , 5 2 6 . 6 8 8 .8 1 2 2 7 .5 3 2 7 .5 9 2 8 .9 4 2 2 .3 2 2 5 .1 5 2 4 .2 8 2 9 .4 1 3 1 .3 8 3 0 .5 5 3 0 .5 4 M artet Value Average Price 1938 — O c t . 3 1 _____ N o v . 3 0 _____ D e c . 3 1 _____ 1939— Jan 3 1 ____ F e b . 2 8 _____ M a r . 3 1 _____ A p r . 2 9 _____ M a y 3 1 _____ J u n e 3 0 _____ J u ly 3 1 _____ A u g . 3 1 _____ S e p t . 3 0 _____ O c t . 3 1 _____ Average Price $ 4 7 ,0 0 1 ,7 6 7 ,2 1 2 4 6 , 0 8 1 ,1 9 2 ,3 4 7 4 7 ,4 9 0 ,7 9 3 ,9 6 9 $ 3 2 .9 6 32 30 3 3 .3 4 4 4 .8 8 4 ,2 8 8 ,1 4 7 4 6 ,2 7 0 ,9 8 7 ,4 1 8 4 0 ,9 2 1 ,0 7 4 ,9 7 0 4 0 ,6 7 3 ,3 2 0 .7 7 9 4 3 ,2 2 9 ,5 8 7 ,1 7 3 4 1 ,0 0 4 ,9 9 5 ,0 9 2 4 4 ,7 6 1 ,5 9 9 .3 5 2 4 1 ,6 5 2 ,6 6 4 ,7 1 0 4 7 ,4 4 0 ,4 7 6 ,6 8 2 4 7 ,3 7 3 ,9 7 2 ,7 7 3 3 1 .5 0 3 2 .4 4 2 8 .6 9 2 8 .5 1 3 0 .2 9 2 8 .7 0 3 1 .3 1 2 9 .1 2 3 3 .1 5 3 3 .1 1 * R evised. Canadian Exchange Control Eased to Allow NonResidents to Withdraw Newly Invested Capital The Canadian Foreign Exchange Control Board re leased its restrictions on the export of certain funds of non residents, so as not to discourage future investments in Canada by Americans and others, according to an announce ment of Oct. 31. Under the revised regulations, non-resi dents may make investments in Canada for capital develop ment, and retain right to subsequently liquidate the invest ment and withdraw the funds from the country. According to Ottawa United Press advices of Oct. 31 the new regulations are effective where the following circum stances apply: 1. Where non-residents sold foreign exchange through an authorized dealer subsequent to Sept. 15, 1939, for the purpose of making an invest ment in Canada. 2. Where resultant Canadian dollars were invested in Canada in an entirely new undertaking, such as building of a manufacturing plant, development of mineral resources or extension of an existing plant. It does not include the purchase of real estate to be held in anticipation of an increase in value nor the purchase of securities except in connection with the capital development transactions. 3. Where non-residents subsequently liquidate the investment. 4. Where foreign exchange is required for the proceeds of such sale or liquidation up to an amount not exceeding the original investment. On and after N ov. 1, 1939, a charge o f $10 will be made for consideration of each application for the employment of any individual as a “ branch office manager” or “ registered representative.” SEC Issues Tabulations on Characteristics of Corporate Security Issues Proposed for Sale During Third Quarter The Securities and Exchange Commission made public on Nov. 3 the following tabulations on selected character istics of corporate security issues proposed for sale by issuers and registered under the Securities Act of 1933 during the period July 1 to Sept. 30, 1939. These data, published quarterly, are part of the series which was initiated in February, 1939. The figures for the April 1 to June 30, 1939 period were given in our issue of Aug. 12, page 951. The tabulations issued Nov. 3 follow: C H A R A C T E R IS T IC S OF COM PORATE S E C U R IT IE S E F F E C T IV E L Y R E G I S T E R E D U N D E R T H E S E C U R I T I E S A C T O F 1933 A N D P R O P O S E D F O R S A L E B Y I S S U E R S — J U L Y 1 T O S E P T . 3 0 , 1939 A. S u m m a ry N o. o f Issues Gross Amount Type o f Security Total % of All Issues Total ($ 0 0 0 ) % of All Issu es 68 1 0 0 .0 4 4 8 ,7 7 5 1 0 0 .0 28 20 4 1 .1 2 9 .4 3 0 ,5 9 6 2 1 ,2 6 0 6 .8 4 .8 11 8 1 6 .2 1 1 .8 1 .5 2 1 2 ,7 7 6 1 8 3 ,6 3 8 505 4 7 .4 4 0 .9 S t o c k is s u e s : B o n d is s u e s : S h o rt-te rm se cu red a n d u n secu red - . B. 1 _ 0.1 C om m on S to ck Issu es N o. o f Issues Gross Amount Characteristic Total % of All Issu es ($ 0 0 0 ) % of All Issu es Total 28 President Rea of New York Curb Exchange Asks Co operation of Members to Supplement Work to Further Interests of Exchange George P. Rea, President of the New York Curb Exchange, addressed the membership on the Floor on Oct. 30, “ as a committee of the whole,” reporting on the work of the Committee on Transactions and Quotations, the Committee on Formal Listing, the Committee on Unlisted Securities, the Committee on Public Relations, and of the Exchange’s financial condition which he said was excellent. After dis cussing stocks which are being transferred from the Curb Exchange to the New York Stock Exchange, he spoke briefly of some 23 prospects for listing which are being considered at this time, an Exchange announcement said. He requested the cooperation of the members to supplement the work now being done by the administration to further the interests of the Exchange. New York Stock Exchange Rescinds Rule Prohibiting Collection by Members of Over-Riding Commissions for Non-Member Correspondents— New Rules on Private Wire Connections and Registered Employees Announcement was made Oct. 26 that the Committee on Member Firms of the New York Stock Exchange has res cinded its ruling prohibiting the collection by members of over-riding commissions, service charges, or other fees for non-member correspondents and in lieu thereof has adopted the following new ruling, effective Nov. 1: An arrangement whereby member firms carrying accounts of customers who have been introduced by or are serviced or advised by a non-member engaged in business as a dealer or broker undertake to collect for such non member an over-riding commission, service charge or other fee and to remit to such non-member is deemed to be permissible under the porovisions of Section 1 o f Article X V II o f the Constitution, provided that all o f the following conditions are complied with, viz., (1) the customer has given written instructions to the member firm authorizing the imposition and collection o f such charges and has not canceled such instructions; (2) such instructions indicate the precise charges which are to be made and indicate knowledge on the part o f the customer that such charges are over and above and not a part o f the charge o f the member firm carrying the account; (3) the charge so made and collected for the non-member be separately and specifically indicated as such on the confirmation o f every transaction upon which such a charge is based. Nothing in this rule shall absolve the parties from responsibilities which may ensue by reason of such arrangements. It is therefore suggested that member firms be guided by their own counsel in regard to entering into any such arrangement. It was also announced Oct. 26 that new rules regarding registered employees and private wire connections had been adopted Oct. 16 by the Committee on Member Firms. The rule in respect of private wire connections follows: On and after N ov. 1, 1939, a charge o f $5 will be made for consideration of each application for a private wire connection to a non-member. Such fee will not be charged in the case o f applications for private wire con nections to institutions under the supervision o f State or Federal banking or insurance authorities, or members o f national securities exchanges. Applica tions for private wires which are exempt from the payment of fees must C o n tin g e n t v o t in g r ig h ts o n l y . . C. ____________ . 1 0 0 .0 3 0 ,5 9 6 1 0 0 .0 23 7 27 0 1 6 0 0 0 8 2 .1 2 5 .0 9 6 .4 2 5 ,5 0 8 3 ,8 2 5 2 9 ,6 9 3 0 903 4 ,3 5 7 0 0 0 8 3 .4 1 2 .5 9 7 .0 3 .6 2 1 .4 3 .6 1 4 .2 P r e fe r r e d S t o c k Issu e s N o. o f Issues Gross Amount Characteristic % of All Issu es ($ 0 0 0 ) % of AU Issu es 20 1 0 0 .0 2 1 ,2 6 0 1 0 0 .0 15 3 16 1 9 9 2 2 0 0 5 17 7 0 7 5 .0 1 5 .0 8 0 .0 5 .0 4 5 .0 4 5 .0 1 0 .0 1 0 .0 1 1 ,7 9 8 1 .0 9 5 1 9 ,1 7 4 700 1 6 ,4 0 6 4 ,0 3 9 815 1 ,4 5 6 0 0 5 ,0 7 5 1 9 ,4 3 0 1 2 ,0 2 0 0 5 5 .5 5 .2 9 0 .2 3 .3 7 7 .2 1 9 .0 3 .8 6 .8 Total W a r r a n ts o r rig h ts a tta c h e d D. L o n g -te rm 2 5 .0 8 5 .0 3 5 .0 Total 2 3 .9 9 1 .4 5 6 .5 S ecu red B o n d Issu es N o. o f Issues Gross Amount Characteristic Total % of All Issues Total ($ 0 0 0 ) % of All Issu es ii S e r ia l m a t u r i t y ____________ ______________ _____ S in k in g f u n d . _____ _ . _____ C a ll a b l e (o t h e r t h a n f o r s i n k i n g f u n d ) . . -------. _ C o n v e r t i b l e - . . . __ _________ _ __ ______ _ _ W a r r a n t s o r r ig h t s a t t a c h e d . . __________ S e c u r it y s u b j e c t t o p r io r lie n __________ N o a d a it i o n a l s e c u r i t ie s is s u a b l e u n d e r s a m e in D e f i n i t e li m it s e t o n is s u e o f e q u a l o r s e n i o r s e c u r it ie s S u b s t it u t i o n o f p r o p e r t y u n d e r l i e n p e r m it t e d . - I n t e r e s t d e p e n d e n t o n e a r n in g s o r s p e c i a l c o n d i t i o n s . G u a r a n te e d . . . . . E. 1 0 0 .0 2 1 2 ,7 7 6 1 0 0 .0 i 9 11 1 0 0 9 .1 8 1 .8 1 0 0 .0 9 .1 350 2 0 2 ,4 2 6 2 1 2 ,7 7 6 1 0 ,0 0 0 0 C 0 .2 9 5 .1 1 0 0 .0 4 .7 1 3 11 0 0 9 .1 2 7 .3 1 0 0 .0 350 2 3 .7 9 3 2 1 2 .7 7 6 0 0 0 .2 1 1 .2 1 0 0 .0 _ _ _ --- _ _ _ --- L o n tf-te r m U n s e c u r e d B o n d Is s u e s N o. o f Issues Gross Amount Characteristic Total % of All Issu es Total ($ 0 0 0 ) % of All Issues 8 S e r ia l m a t u r i t y ----------------------------- -----------------------------------------S in k in g f u n d ________________________________________________ C a ll a b l e (o t h e r t h a n f o r s i n k i n g f u n d ) ----------------. . C o n v e r t i b l e ___________________________________________________ W a rra n ts o r rig h ts a tta c h e d . ---------- - -----------N o a d d i t io n a l s e c u r i t ie s is s u a b l e u n d e r s a m e in D e f i n i t e l i m it s e t o n is s u e o f e q u a l o r s e n i o r s e c u r it ie s I n t e r e s t d e p e n d e n t o n e a r n in g s o r s p e c i a l c o n d i t i o n s . G u a r a n t e e d __________________________________________________ 1 0 0 .0 1 8 3 ,6 3 8 1 0 0 .0 1 6 8 1 0 1 2 .5 7 5 .0 1 0 0 .0 1 2 .5 ___ 6 ,9 7 7 1 4 9 ,8 2 8 1 8 3 ,6 3 8 1 ,6 0 0 0 3 .8 8 1 .6 1 0 0 .0 0 .9 ___ 7 0 0 0 8 7 .5 ___ ___ ... 1 8 1 ,1 3 8 0 0 0 9 8 .7 ___ ___ ... ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939 2898 — F. — New Mutual Savings Bank Authorized to Issue Life Insurance in New York—Total of 6,699 Policies with Face Value of $5,500,000 Sold in Nine Months S h o rt-te rm S e cu re d a n d U n se cu re d B o n d Issu es G ross Am ount N o. of Issu es C h a r a c te r is tic % of A ll Issu es T o ta l % of T o ta l ($ 0 0 0 ) A ll Issu es A ll Issu es. 1 1 0 0 .0 5C5 1 0 0 .0 S e r ia l m a t u r i t y ______________________________________________ S in k in g f u n d _________________________________________________ C a l l a b l e ( o t h e r t h a n f o r s i n k i n g f u n d ) --------------------------C o n v e r t i b l e -----------------------------------------------------------------------------W a r r a n t s o r r i g h t s a t t a c h e d ---------------------------------------------S e c u r e d b y l i e n ______________________________________________ S e c u r it y s u b j e c t t o p r io r l i e n -------------------------------------------N o a d d i t i o n a l s e c u r i t ie s is s u a b l e u n d e r s a m e in d e n t u r e ---------------------------------------------------------------------------------D e f i n i t e li m it s e t o n is s u e o f e q u a l o r s e n i o r s e c u r it ie s S u b s t i t u t i o n o f p r o p e r t y u n d e r li e n p e r m i t t e d -----------In te r e s t d e p e n d e n t o n e a rn in g s o r s p e c ia l c o n d it io n s G u a r a n t e e d __________________________________________________ 1 0 1 0 0 0 1 0 0 .0 505 0 505 0 0 0 1 0 0 .0 1 0 1 0 0 .0 505 0 1 0 0 .0 1 0 0 .0 . . . . . . ’ ” "6 0 ____ 1 0 0 .0 ____ — . . . 6 0 — In our issue of April 29 , page 2504, explanatory notes regarding the sale by issuers was given. The Bush wick Savings Bank, Brooklyn, N . Y . , announced N o v . 1 that it has been authorized by the State Banking and Insurance Department to write insurance under the law that became effective Jan. 1, 1939, and will start issuing policies. The Bushwick th is becomes the third mutual savings bank in Brooklyn to write life insurance and is the seventh in New York State. In addition, there are seven other mutual savings banks selling insurance as agents. The 13 banks writing insurance have sold, it is stated, a total of 6,699 policies in the first nine months of this year with a total face value of over $5 ,500,000. The size of the average policy isused was $83 i . The Bushwick Savings Bank will issue policies in six dif ferent forms, following the practice of the other banks now writing insurance. Earlier reference to the amount of savings bank life in surance sold appeared in our issue of July 22 , page 491. SEC Issues Four More Reports Based on Census of American Listed Corporations Federal Intermediate Credit Banks Sell $28,900,000 % % Debentures On Oct. 27 the Securities and Exchange Commission made public four more of a series of reports based on a Works Projects Administration study now known as the Survey of American Listed Corporations. The current reports con tain a summary of selected data on the following four in dustry groups composed of corporations registered under the Securities Exchange Act of 1934: Leather Tanners; Shoe Manufacturers; Manufacturers of Brick and Other Clay Products; and Manufacturers of Miscellaneous Build ing Material. These summaries contain essentially the same information as the first 40 reports of this series which have been released, but, unlike the first 18 reports, they have not been printed in quantity and, therefore, are not available for free distribution. They are, however, open to public inspection and use at all the regional offices of the SEC. A n offering of $28,900,000 % % debentures of the Federal Intermediate Credit Banks on Oct. 20 met with the cus tomary oversubscription, and the books were closed the same day. The offering was made by Charles R . D unn, New York, fiscal agent for the Banks, at a slight premium over par. The yield basis on which the bonds were sold, is said to have been about the same as that for the issue dis posed of at the end of September. The proceeds of the latest sale will go entirely toward the refunding of $2 9,100,000 debentures maturing N o v . 1. The new issue is dated N o v . 1 and matures in 10 m onths, on Sept. 3 , 1940. A t the close of business N o v . 1, the Banks it is stated had outstanding a total of $207,400,000 debentures. Increase of $67,168,637 in Outstanding Brokers’ Loans on New York Stock Exchange During October— Total Oct. 31 Reported at $534,228,504— Amount Is $46,513,133 Below Year Ago M em ber banks of the American Bankers Association were given official notice on O ct. 27 of the Association’s action with respect to lifting the minimum on protestable cheeks in a letter enclosing a copy of the resolution adopted by the executive council at the Association’s convention in Seattle, Sept. 2 5 -2 8 . The Association’s announcement, regarding this matter stated: According to the monthly compilation of the N ew York Stock Exchange, issued N o v . 2 , outstanding brokers’ loans on the Exchange increased $67,168,637 during October to $534,228,504 Oct. 31 from $467,059,867 Sept. 30. A s com pared with Oct. 31 , 1938, when the loans outstanding amounted to $580,741,637, the figure for the end of October, 1939 represents a decrease of $46,513,133. Demand loans outstanding on Oct. 31 were above Sept. 30 but below Oct. 31 , 1938, while time loans were below the two earlier dates. The demand loans on Oct. 31 totaled $5 02,025,629, as compared with $433,556,992 Sept. 30 and $540,439,140 Oct. 31, 1938. Tim e loans at the latest date were reported at $32,202,875, against $33,502,875 and $4 0,302,497, respectively, a month and a year ago. The following is the report for Oct. 31, 1939, as made available by the Stock Exchange on N o v . 2 : New York Stock Exchange member total net borrowings on collateral, contracted for and carried in New York as o f the close o f business Oct. 31, 1939, aggregated $534,228,504. The detailed tabulation follows: Demand (1 ) N e t b o r r o w i n g s o n c o l l a t e r a l f r o m N e w Y o r k b a n k s o r t r u s t c o m p a n i e s _____________________________ ( 2 ) N e t b o r r o w i n g s o n c o l la t e r a l f r o m p r i v a t e b a n k e r s , b r o k e r s , f o r e ig n b a n k a g e n c ie s o r o t h e r s In t h e C i t y o f N e w Y o r k __________________________ ___________ T im e $ 4 6 3 ,7 5 4 ,8 2 9 $ 3 1 ,9 0 2 ,8 7 5 3 8 ,2 7 0 ,8 0 0 3 0 0 ,0 0 0 $ 5 0 2 ,0 2 5 ,6 2 9 $ 3 2 ,2 0 2 ,8 7 5 C o m b i n e d t o t a l o f t i m e a n d d e m a n d b o r r o w i n g s ------------------------------------$ 5 3 4 ,2 2 8 ,5 0 4 T o t a l f a c e a m o u n t o f ‘ G o v e r n m e n t s e c u r i t ie s ” p l e d g e d a s c o l la t e r a l f o r t h e b o r r o w i n g s i n c l u d e d in it e m s (1 ) a n d ( 2 ) a b o v e ______________ $ 2 4 ,9 8 9 ,9 0 0 The scope o f the above compilation is exactly the same as in the loan report issued by the Exchange a month ago. Below we furnish a two-year compilation of the figures: 13_ 97 Demand Loans $ Time Loans $ Total Loans $ O c t . 3 0 ................................................. N o v . 3 0 ................................................. D e c . 3 1 ................................................. 1938— J a n . 3 1 ................................................. F e b . 2 8 ................................................. M a r . 3 1 ............................- ................... A p r . 3 0 .................................... M a y 3 0 ................................................. J u n e 3 0 .................................................. J u l y 3 0 - - - ................... - ................... A u g 3 1 .................................................. S e p t 3 0 .......... ..................................— O c t . 3 1 .................................................. N o v 3 0 .................................................. D e c 3 1 .................................................. 4 9 3 .3 4 0 .1 6 8 4 9 8 .5 6 7 .1 7 5 5 1 1 ,8 8 8 ,3 0 5 2 3 2 ,2 8 2 ,7 0 4 1 8 9 ,2 1 9 .4 0 4 1 4 7 ,3 3 1 ,0 0 0 7 2 5 ,6 2 2 ,8 7 2 6 8 7 ,7 8 6 ,5 7 9 6 5 9 ,2 1 9 ,3 0 5 4 9 0 ,9 5 4 .0 4 0 * 4 9 2 ,1 9 8 .8 1 4 4 5 5 .5 4 9 .4 1 9 4 1 3 .5 7 8 .0 2 9 4 1 8 .4 9 0 .4 0 5 4 3 1 ,9 2 6 .4 0 0 4 5 9 .2 1 7 .9 3 3 5 0 8 .9 9 2 .4 0 7 4 8 4 .0 1 9 .5 3 8 5 4 0 ,4 3 9 ,1 4 0 5 7 7 .4 4 1 ,1 7 0 6 8 1 ,8 8 5 ,1 9 2 1 0 6 ,4 6 4 .0 0 0 8 4 ,7 6 3 .0 0 0 6 5 ,5 6 7 .5 0 0 5 3 ,1 8 8 .5 0 0 4 0 .8 7 3 .5 0 0 3 7 .9 6 1 .0 0 0 3 4 .3 9 8 .0 0 0 3 2 .4 9 8 .0 0 0 4 0 .1 8 3 .0 0 0 4 0 ,3 0 2 ,4 9 7 4 2 , 5 1 4 ,1 0 0 3 5 , 1 9 9 ,1 3 7 5 9 7 ,4 1 8 ,0 4 0 * 5 7 6 ,9 6 1 .8 1 4 5 2 1 ,1 1 6 ,9 1 9 4 6 6 ,7 6 6 .5 2 9 4 5 9 .3 6 3 .9 0 5 4 6 9 ,8 8 7 ,4 0 0 4 9 3 ,6 1 5 .9 3 3 5 4 1 .4 9 0 .4 0 7 5 2 4 ,2 0 2 .5 3 8 5 8 0 ,7 4 1 ,6 3 7 6 1 9 ,9 5 5 .2 7 0 7 1 7 ,0 8 4 ,3 2 9 1939— J a n 3 1 .................................................. F e b . 2 8 .................................................. M a r . 3 1 .................................................. A p r . 2 9 .................................................. M a y 31 ......................................... J u n e 3 0 1 ............................................... J u l y 3 1 .................................................. A u g . 3 1 .................................................. S e p t . 3 0 .................................................. O c t . 3 1 ................................................... 6 3 2 ,5 1 3 ,3 4 0 6 4 6 .1 7 8 .3 6 2 6 1 7 ,1 9 1 .9 3 2 5 1 5 ,1 7 3 ,5 2 5 5 1 5 .4 8 3 .0 ^ 0 6 0 9 .0 2 1 .6 3 7 5 2 6 .6 9 1 ,7 4 0 4 7 8 .0 6 0 ,0 0 7 4 3 3 .5 5 6 ,9 9 2 5 0 2 ,0 2 5 ,6 2 9 3 3 , 9 8 3 ,5 3 7 3 7 .2 5 4 ,0 3 7 3 7 ,6 6 3 .7 3 9 3 2 ,2 6 9 ,6 5 0 3 0 .4 9 2 .8 8 9 2 8 . 2 4 0 .3 2 2 2 7 .0 7 5 ,5 0 0 3 0 .5 1 7 .5 4 7 3 3 ,5 0 2 ,8 7 5 3 2 , 2 0 2 ,8 7 5 6 6 6 ,4 9 6 ,8 7 7 6 8 3 .4 3 2 .3 9 9 6 5 4 ,8 5 5 ,6 7 1 5 4 7 ,4 4 3 ,1 7 5 5 4 5 .9 7 5 .9 7 9 5 3 7 .2 6 1 .9 5 9 5 5 3 .7 6 7 .2 4 0 5 0 8 ,5 7 7 ,5 5 4 4 6 7 ,0 5 9 ,8 6 7 5 3 4 ,2 2 8 ,5 0 4 • R e v is e d . American Bankers Association Acts to Raise Minimum for Protested Checks— Resolution Adopted by Executive Council at Seattle Convention The protesting process consists o f providing owners o f protested checks with legal notice or evidence o f dishonor for their use in the case of suits to recover. The fees for this evidence are fixed by law in the several States, and are in some instances out o f proportion to the face amounts o f small checks. It is believed that the discontinuance of the practice o f automati cally protesting checks o f $50 or less will save bank customers considerable expense. Last Spring the A . B. A . convassed opinion o f the banks o f the country on the idea of raising the minimum on checks subject to protest from $10.01 to $50-01. A large majority o f the banks expressed themselves in favor o f the idea. The resolution adopted in Seattle was the official expression o f their wishes and took the form o f an official request to the Federal Reserve banks to conform their collection instructions and practices to the desire o f the banks. In the letter sent to A . B . A . banks O ct. 27 by Frank W . Simmonds, senior deputy manager of the A . B . A . the resolution adopted by the executive council at the annual convention in Seattle was set out as follows: It is not legally required that inland checks be protested; and The chief purpose of notarial protest is that it affords a con venient method of proving dishonor and notice o f dishonor in the event o f a lawsuit instituted by the owners, and there are few suits on dishonored checks o f less than $50; and W h erea s, The cost to the owners o f the protest fee on small checks is out o f proportion to the protection actually afforded them; and W h erea s, A survey of the opinions o f all banks throughout the country on the question o f raising the minimum face amount o f checks which should not be protested revealed that a large majority favored the change to a $50 minimum; and W h erea s, The Bank Management Commission upon the basis o f their survey recommended to banks and clearinghouses a change from their pre sent practice o f not protesting items o f $10 and less to a practice o f not pro testing items o f $50 and less; and W h erea s, Many clearinghouses have adopted rules changing their pro test practice in accordance with the Bank Management Commission recom mendation and many banks have indicated their readiness to cooperate; and W h erea s, These banks and clearinghouse associations are o f the opinion that the new practice connot be effective without the cooperation o f the Federal Reserve banks; therefore be it R e s o l v e d by the Executive Council o f the American Bankers Association, That the Federal Reserve bank in each Reserve District be requested to conform its protest practice, beginning Jan 2, 1940, to the new practice adopted by banks and clearinghouse associations o f not protesting items of $50 or less; and be it further R eso lv ed , That a copy o f this resolution be addressed to each Federal Reserve bank. W h erea s, W h erea s, Tenders of $457,678,000 Received to Offering of $150,000,000 of 91-Day Treasury Bills— $150,499,000 Accepted at Average Rate of 0.028% A total of $457,678,000 was tendered to the offering last week of $150,000,000, or thereabouts, of 91-day Treasury bills dated N o v . 1 and maturing Jan. 31 , 1940, it was an nounced O ct. 30 by Secretary of the Treasury Morgenthau. Volume 149 ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD — — Of this amount, M r . Morgenthau said, $150,499,000 was accepted at an average rate of 0 .0 2 8 % . _ The tenders to the offering were received at the Federal Reserve banks and the branches thereof up to 2 p. m ., (E ST) Oct. 30. Reference to the offering appeared in these columns of Oct. 28, page 2616. The following regarding the accepted bids to the offering is from Secretary Morgen thau’s announcement of O ct. 30: Total applied for, $457,678,000 Total accepted, $150,499,000 Range o f accepted bids: High 100 Low — 99.992 equivalent rate approximately 0.032% Average price— 99.993 equivalent rate approximately 0.028% (86% o f the amount bid for at the low price was accepted.) Stock of Money in the Country The Treasury Department in Washington has issued the customary monthly statement showing the stock of money in the country and the amount in circulation after deducting the moneys held in the United States Treasury and by Federal Reserve banks and agents. The figures this time are for Sept. 30, 1939, and show that the money in circulation at that date (including, of course, what is held in bank vaults of member banks of the Federal Reserve System) was $7 ,292 ,952,082, as against $7,171,434,321 on Aug. 31, 1939, and $6,622,249,018 on Sept. 30, 1938, and comparing with $5,698,214,612 on Oct. 31, 1920. Just before the outbreak of the World W a r, that is, on June 30, 1914, the total was only $3,459 ,43 4,17 4. 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CS © O r* O Tf x S O T * — x* ID X* r J * H H ■ i w q ■® £ fl a? 3^ O j ^ £ ^ S" T« !Hm S P v _ S j M O r t H S 52 0 < 0 0 0 3 N3 3 0 ® “ S SSSi g a 5,sS?‘ S a §* s i s a D o e s n o t in c lu d e g o l d o t h e r t h a n t h a t h e l d b y t h e T r e a s u r y , h T h e s e a m o u n t s a r e n o t I n c lu d e d in t h e t o t a l , s in c e t h e g o l d o r s i lv e r h e ld a s s e c u r i t y a g a in s t g o l d a n d s ilv e r c e r t ifi c a t e s a n d T r e a s u r y n o t e s o f 1 8 9 0 Is in c lu d e d u n d e r g o l d , s t a n d a r d s i lv e r d o l la r s , a n d s i lv e r b u l l i o n , r e s p e c t i v e l y . c T h is t o t a l I n c lu d e s c r e d i t s w it h t h e T r e a s u r e r o f t h e U n it e d S t a t e s p a y a b le In g o l d c e r t if i c a t e s in (1 ) t h e G o l d C e r t if i c a t e F u n d — B o a r d o f G o v e r n o r s , F e d e r a l R e s e r v e S y s t e m , in t h e a m o u n t o f $ 1 1 ,8 5 6 .2 7 - 5 ,1 2 0 , a n d (2 ) t h e r e d e m p t i o n f u n d f o r F e d e r a l R e s e r v e n o t e s In t h e a m o u n t o f $ 7 , 3 0 2 ,9 2 7 . d I n c l u d e s $ 1 ,8 0 0 ,0 0 0 ,0 0 0 E x c h a n g e S t a b i li z a t i o n F u n d a n d $ 1 4 2 ,4 9 0 ,5 6 1 b a l a n c e o f I n c r e m e n t r e s u lt in g fr o m r e d u c t i o n In w e ig h t o f t h e g o l d d o l la r . e i n c l u d e s $ 5 9 ,3 0 0 ,0 0 0 la w f u l m o n e y d e p o s i t e d a s a r e s e r v e f o r P o s t a l S a v in g s d e p o s its . f T h e a m o u n t o f g o l d a n d s l iv e r c e r t if i c a t e s a n d T r e a s u r y n o t e s o f 1 8 9 0 s h o u l d b e d e d u c t e d fr o m t h is a m o u n t b e f o r e c o m b i n i n g w it h t o t a l m o n e y h e l d i n t h e T r e a s u r y t o a r r i v e a t t h e t o t a l a m o u n t o f m o n e y In t h e U n it e d S t a t e s . s5 T h e m o n e y in c i r c u la t io n in c lu d e s a n y p a p e r c u r r e n c y h e l d o u t s i d e t h e c o n t i n e n t a l li m it s o f t h e U n it e d S t a t e s . N o t e — T h e r e is m a in t a in e d in t h e T r e a s u r y — (1) a s a r e s e r v e f o r U n i t e d S t a t e s n o t e s a n d T r e a s u r y n o t e s o f 1 89 0 — $ 1 5 6 ,0 3 9 ,4 3 1 I n g o l d b u ll io n : (11) a s s e c u r i t y f o r T r e a s u r y n o t e s o f 1 89 0 — a n e q u a l d o l l a r a m o u n t in s t a n d a r d s i lv e r d o l la r s (t h e s e n o t e s a r e b e in g c a n c e l e d a n d r e t i r e d o n r e c e i p t ) : (ill) a s s e c u r i t y f o r o u t s t a n d i n g s i lv e r c e r t if i c a t e s — s i lv e r In b u ll io n a n d s t a n d a r d s i lv e r d o l la r s o f a m o n e t a r y v a l u e e q u a l t o t h e fa c e a m o u n t o f s u c h s ilv e r c e r t ifi c a t e s ; a n d (i v ) a s s e c u r i t y f o r g o l d c e r t ifi c a t e s — g o l d b u ll io n o f a v a lu e a t t h e le g a l s t a n d a r d e q u a l t o t h e f a c e a m o u n t o f s u c h g o l d c e r t if i c a t e s . F e d e r a l R e s e r v e n o t e s a r e o b l i g a t i o n s o f t h e U n it e d S t a t e s a n d a fir s t lie n o n a ll t h e a s s e ts o f t h e is s u in g F e d e r a l R e s e r v e B a n k . F e d e r a l R e s e r v e n o t e s a r e s e c u r e d b y t h e d e p o s i t w it h F e d e r a l R e s e r v e a g e n t s o f a lik e a m o u n t o f g o l d c e r t ifi c a t e s o r o f g o l d c e r t ifi c a t e s a n d s u c h d i s c o u n t e d o r p u r c h a s e d p a p e r a s is e li g ib le u n d e r t h e t e r m s o f t h e F e d e r a l R e s e r v e A c t , o r , u n t i l J u n e 3 0 , 1 9 4 1 , o f d ir e c t o b l i g a t i o n s o f t h e U n it e d S t a t e s If s o a u t h o r i z e d b y a m a jo r it y v o t e o f t h e B o a rd o f G ov ern ors o f th e F ederal R eserv e S y stem . F ederal R eserv e ban k s m u st m a in t a in a r e s e r v e in g o l d c e r t ifi c a t e s o f a t le a s t 405 '- , in c lu d in g t h e r e d e m p t i o n fu n d w h ic h m u s t b e d e p o s i t e d w it h t h e T r e a s u r e r o f t h e U n it e d S t a te s , a g a in s t F e d e r a l R e s e r v e n o t e s in a c t u a l c i r c u l a t i o n . “ G o l d c e r t if i c a t e s ” a s h e r e in u s e d in c lu d e s c r e d i t s w it h t h e T r e a s u r e r o f t h e U n it e d S t a te s p a y a b le in g o l d c e r t if i c a t e s . F e d e r a l R e s e r v e b a n k n o t e s a n d N a t i o n a l h a n k n o t e s a r e In p r o c e s s o f r e t i r e m e n t . Results of Treasury Financing— $515,210,900 of 124% Notes Maturing Dec. 15 Exchanged for 1% Notes Secretary of the Treasury Henry Morgenthau Jr. an nounced Oct. 29 that seports to the Federal Reserve banks indicated that $515,210,900 of 1 24 % Treasury notes of Series B -1939, maturing D ec. 15, 1939, have been exchanged for 1 % Treasury notes of Series B -1944. Treasury notes maturing D ec. 15 were outstanding in amount of $526,232,500, indicating that holders of $11,021,600 had not exchanged them for the new notes and these will be paid in cash when they mature. The exchange of fering was reported in these columns of Oct. 28, page 2616. All subscriptions were alloted in full. They were divided among the several Federal Reserve districts and the Treasury as follows: F ed era l R eserve D is t r ic t — 00 s g 03 H r , H " „ CO JH ’Ho CO CO agog S§ o 2899 T o ta l S u b s c r ip t io n s R e c e iv e d a n d A llo t t e d B o s t o n ____________________________ $ 1 0 ,5 3 2 ,5 0 0 N e w Y o r k ............................ 3 5 3 .7 0 'L 3 0 0 P h i l a d e l p h i a ................................... 6 .7 5 9 ,3 0 0 C l e v e l a n d ........................................ 1 1 ,6 6 1 .7 0 0 R i c h m o n d ______________________ 1 0 .6 6 9 .8 0 0 4 ,6 9 3 .0 0 0 A t l a n t a _________________________ C h i c a g o _________________________ 7 4 ,9 3 3 .6 0 0 1 1 ,4 5 2 ,2 0 0 S t . L o u i s ......... ................................ F e d e r a l R eserve D is t r ic t — M i n n e a p o l i s -----------------------------K a n s a s C i t y ___________________ D a l l a s --------------S a n F r a n c i s c o ________________ T r e a s u r y ......... ............. T o ta l S u b s c r ip t io n s R e c e iv e d a n d A llo t t e d $ 5 ,1 3 7 ,0 0 0 2 ,3 9 0 , 3 0 0 3 ,6 2 8 . 3 0 0 1 8 ,7 1 8 0 0 0 9 2 5 ,0 0 0 T o t a l ............................................. $ 5 1 5 , 2 1 0 , 9 0 0 New Offering of $100,000,000 or Thereabouts of 91-Day Treasury Bills— Amount Compares with $150,000,000 in Last Three Sales— New Issue Will Be Dated Nov. 8, 1939 Tenders to a new offering of $100,000,000, or thereabouts, of 91-day Treasury bills were received up to 2 p. m . (E ST) yesterday (N o v . 3 ). For the past three weeks the Treasury has been offering $150,000,000 of bills but decided this week to return to its practice of issuing an amount sufficient to retire its current bill maturity instead of acquiring an additional $50,000,000 in “ new m oney.” A t the time of increasing the offering (Oct. 13) Secretary Morgenthau ex plained that the action was taken to maintain the Treasury’s working balance at a comfortable level. He also then said that the question of seeking new funds would be decided on a week-to-week basis this was noted in our issue of Oct. 14, page 2304. The current bills, which were sold on a discount basis to the highest bidders, will be dated N o v . 8 and will mature on Feb. 7 ,1 9 4 0 ; on the maturity date the face amount of the bills will be payable without interest. There is a maturity of a similar issue of bills on N o v . 8 in amount of $100,429,000. In his announcement of the offering, Secre tary Morgenthau also said: They (the bills) will be issued in bearer form only, and in amounts or denominations o f $1,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). No tender for an amount less than $1,000 will be considered. Each tender must be in multiples o f $1,000. The price offered must be expressed on the basis o f 100, with not more than three decimal places, e g., 99.125. Fractions must not be used. Tenders will be accepted without cash deposit from incorporated banks and trust companies and from responsible and recognized dealers in in vestment securities. Tenders from others must be accompanied by a deposit o f 10% o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an in corporated bank or trust company. Immediately after the closing hour for receipt o f tenders on N ov. 3, 1939, all tenders received at the Federal Reserve banks or branches thereof up to the closing hour will be opened and public announcement o f the accept able prices will follow as soon as possible thereafter, probably on the fol lowing morning. The Secretary of the Treasury expressly reserves the right to reject any or aU tenders or parts o f tenders, and to allot less than the amount applied for, and his action in any such respect shall be final. Those submitting tenders will be advised o f the acceptance or rejection thereof. Payment at the price offered for Treasury bills alloted must be made at the Federal Reserve banks in cash or other immediately available funds on N ov. 8, 1939. The Treasury bills will be exempt, as to principal and interest, and and gain from the sale or other disposition thereof will also be exempt, from all taxation, except estate and inheritance taxes. (Attention is invited to ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939 2900 — Treasuty Decision 4550, ruling that Treasury bills are not exempt from the gift tax). No loss from the sale or other disposition of the Treasury bills shall be allowed as a deduction, or otherwise recognized, for the pur poses of any tax now or hereafter imposed by the United States or any of its possessions. Treasury Department Circular No. 418, as amended, and this notice prescribe the terms of the Treasury bills and govern the conditions of their issue. Treasury Offers $250,000,000 of 1% Notes of RFC—-To Be Dated Nov. 10 and Mature on July 1, 1942— Subscription Books Closed— $3,643,000,000 Ten dered Secretary of the Treasury Morgenthau on behalf of the Reconstruction Finance Corporation, on Oct. 30, offered for subscription, at par and accrued interest, through the Federal Reserve banks, $250,000,000, or thereabouts, of 1 % notes of the R F C , designated Series S. The notes will be dated N o v . 10, 1939, and will bear interest from that date at the rate of 1 % per annum, payable Jan. 1 and July 1 on a semi-annual basis. They will mature on July 1, 1942, and will not be subject to call for redemption prior to m a turity. The previous R F C financing undertaken by the Treasury was in February when $310,090,000 of the Corporation’s two-year 11 months 7 % notes were sold. Reference to A this offering appeared in our issue of Feb. 18, page 959. Secretary Morgenthau announced Oct. 31 that the sub scription books to the current offering closed at the close of business that day. He disclosed on N o v . 2 that the offer ing had been oversubscribed more than 14 times. Subscrip tions amounted to $3,643,000,000 and allotments will be announced soon. The following is taken from his announcement pertain ing to the offering: They will be issued only in bearer form with coupons attached, in de nominations of $1,000, $5,000, $10,000 and $100,000. The notes will be fully and unconditionally guaranteed both as to interest and principal by the United States. They will be exempt both as to prin cipal and interest from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality or local taxing authority. Subscriptions will be received at the Federal Reserve banks and branches, and at the Treasury Department, Washington, they will not be received at the RFC. Banking institutions generally may submit subscriptions for account of customers, but only the Federal Reserve banks and the Treasury Department are authorized to act as official agencies. Sub scriptions from banks and trust companies for their own account will be received without deposit but will be restricted in each case to an amount not exceeding one-half of the combined capital and surplus of the subscrib ing bank or trust company. Subscriptions from all others must be ac companied by payment of 10% of the amount of notes applied for. The right is reserved to close the books as to any or all subscriptions or classes of subscriptions at any time without notice. Subject to the reser vations set forth in the official circular, all subscriptions will be received subject to allotment. Payment for any notes allotted must be made or completed on or before Nov. 10, 1939, or on latter allotment. The text of the official circular follows: RECONSTRUCTION FINANCE CORPORATION 1% NOTES OF SERIES S, DUE JULY 1, 1942 Dated and bearing interest from Nov. 10, 1939 Fully and Unconditionally Guaranteed Both as to Interest and Principal By the United States, Which Guaranty Is Expressed on the Face of Each Note Exempt both as to principal and interest from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority. 1939— Department Circular No. 624— Public Debt Service Treasury Department— Office of the Secretary W a s h i n g t o n , O c t . 31, 1939 I. O ffe rin g o f N o te s 1. The Secretary of the Treasury, on behalf of the R F C , invites subscrip tions, at par and accrued interest, from the people of the United States for notes of the RFC, designated 1% notes of Series S. The amount of the offering is $250,000,000 or thereabouts. I I . D e sc r ip tio n o f N o tes 1. The notes will be dated Nov. 10, 1939, and will bear interest from that date at the rate of 1% per annum, payable on a semi-annual basis on Jan. 1 and July 1 in each year until the principal amount becomes payable. They will mature July 1, 1942, and will not be subject to call for redemption prior to maturity. 2. The notes will be issued under authority of an act of Congress (known as “ Reconstruction Finance Corporation Act” ) approved Jan. 22, 1932, as amended and supplemented, which provides that the notes shall be fully and unconditionally guaranteed both as to interest and principal by the United States and such guaranty shall be expressed on the face thereof; and that they shall be exempt both as to principal and interest from all taxation (except surtaxes, estate, inheritance and gift taxes) now or here after imposed by the United States, by any Territory, dependency, or pos session thereof, or by any State, county, municipality or local taxing au thority. These notes shall be lawful investments, and may be accepted as security, for all fiduciary, trust and public funds the investment or de posit of which shall be under the authority or control of the United States or any officer of officers thereof. 3. The authorizing Act further provides that in the event the RFC shall be unable to pay upon demand, when due, the principal of or interest on notes issued by it, the Secretary of the Treasury shall pay the amount thereof, which is authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the amounts so paid the Secretary of the Treasury shall succeed to all the rights of the holders of such notes. 4. Bearer notes with interest coupons attached will be issued in de nominations of $1,000, $5,000, $10,000 and $100,000. The notes will not be issued in registered form. — I I I . S u b s c r ip tio n a n d A llo tm e n t 1. Subscriptions will be received at the Federal Reserve banks and branches and at the Treasury Department, Washington. Banking in stitutions generally may submit subscriptions for account of customers, but only the Federal Reserve banks and the Treasury Department are authorized to act as official agencies. Others than banking institutions will not be permitted to enter subscriptions except for their own account. Subscriptions from banks and trust companies for their own account will be received without deposit but will be restricted in each case to an amount not exceeding one-half of the combined capital and surplus of the subscrib ing bank or trust company. Subscriptions from all others must be ac companied by payment of 10% of the amount of notes applied for. The Secretary of the Treasury reserves the right to close the books as to any or all subscriptions or classes of subscriptions at any time without notice. 2. The Secretary of the Treasury reserves the right to reject any sub scription , in whole or in part, to allot less than the amount of notes applied for, to make allotments in full upon applications for smaller amounts and to make reduced allotments upon, or to reject, applications for larger amounts, or to adopt any or all of said methods or such other methods of allotment and classification of allotments as shall be deemed by him to be in the public interest; and his action in any or all of these respects shall be final. Allotment notices will be sent out promptly upon allotment, and the basis of the allotment will be publicly announced. IV . P a ym en t 1. Payment at par and accrued interest, if any, for notes alloted here under must be made or completed on or before Nov. 10, 1939, or on later allotment. In every case where payment is not so completed, the payment with application up to 10% of the amount of notes applied for shall, upon declaration made by the Secretary of the Treasury in his discretion, be forfeited to the United States. V. G en era l P ro v isio n s 1. As fiscal agents of the United States, Federal Reserve banks are au thorized and requested to receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve banks of the respective districts, to issue allotment notices, to receive payment for notes alloted, to make delivery of notes on full-paid subscriptions alloted, and they may issue interim receipts pend ing delivery of the definite notes. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve banks. H E N R Y M O R G E N T H A U , J R ., S ec r e ta r y o f th e T r e a s u r y . An item bearing on the plans incident to the proposed offering was given in these columns of Oct. 28 , page 2616. Treasury Expects to Raise $500,000,000 in New Money and Refund $1,378,000,000 in Notes Before YearEnd— May Also Seek $60,000,000 in TVA Securities The Treasury plans bo raise $500,000,000 in new money between now and the end of the year, Secretary Morgenthau announced on N o v . 2 . He also said that if the bond market remains favorable, the Treasury might refund in advance $1,378,000,000 in notes due on M arch 15, 1940. In addition to this financing, M r . Morgenthau said that the Treasury also will offer between $50,000,000 and $60,000,000 of Tennessee Valley Authority securities, to reim burse itself for expenditures involving the acquisition by the authority of Tennessee electric power properties from Com monwealth & Southern Corp. Treasury Reports Maturity Value of “ Baby” Bonds Now Exceeds $3,000,000,000 The Treasury announced yesterday (N ov. 3) that the maturity value of “ baby” savings bonds sold since they were first issued in M arch, 1935, is now in excess of $3,000,000,000, according to United Press Washington advices of N o v . 3 , which continued: The maturity value as of Oct. 31 this year was $3,010,693,099. Cash receipts from the sale of bonds as of the same date amounted to $2,258,019,824. Redemptions since March 1, 1935, aggregated $231,736,089. In the first ten months this year the Treasury raised $701,699,722 through the sale of baby bonds. President Roosevelt Proclaims Nov. 23 Thanksgiving Day— Week Earlier Than Previous Years— Urges Nation to Give Thanks for Hope Within Us of Day When Peace Will Reign President Roosevelt on Oct. 31 proclaimed Nov. 23 as a day o f general thanksgiving and called upon the Nation to give thanks “for the hope that lives within us of the com ing of a day when peace and the productive activities of peace shall reign on every continent.” He said that as a Nation “ we are deeply grateful that in a world of turmoil we are at peace with all countries” and “especially rejoice in the strengthened bonds of our friendship with other peoples of the Western Hemisphere.” The President desig nated the next to the last Thursday in the month instead of the last, as had heretofore been the custom, because, as he had previously indicated, business men had requested the change. Last August the President announced his in tention to proclaim Thanksgiving this year on Nov. 23 ; this was mentioned in our issue of Aug. 19, page 1106. The proclamation fo llow s: T h a n k s g i v i n g D a y — 1939 By the President of the United States of America. A PROCLAMATION I, Franklin D. Roosevelt, President of the United States of America, do hereby designate Thursday, the twenty-third of November, 1939, as a day of general thanksgiving. V o lu m e 149 ONE HUNDRED — The Commercial & Financial Chronicle — More than three centuries ago, at the season of the gathering of the harvest, the Pilgrims humbly paused in their work and gave thanks to God for the preservation of their community and for the abundant yield of the soil. A century and a half later, after the new Nation had been formed, and the charter of the Government, the Constitution of the Republic, had received the assent of the States, President Washington and his successors invited the people of the Nation to lay down their tasks one day in the year and give thanks for the blessings that had been granted them by Divine Providence. It is fitting that we should continue this hallowed custom and select a day in 1939 to be dedicated to reverent thoughts of thanksgiving. Our Nation has gone steadily forward in the application of democratic processes to economic and social problems. We have faced the specters of business depression, of unemployment and of widespread agricultural dis tress, and our positive efforts to alleviate these conditions have met with heartening results. We have also been permitted to see the fruition of measures which we have undertaken in the realms of health, social welfare and the conservation of resources. As a Nation we are deeply grateful that in a world of turmoil we are at peace with all countries, and we especially rejoice in the strengthened bonds of our friendship with the other peoples of the Western Hemisphere. Let us, on the day set aside for this purpose, give thanks to the Ruler of the universe for the strength which He had vouchsafed us to carry on our daily labors and for the hope that lives within us of the coming of a day when peace and the productive activities of peace shall reign on every continent. In witness whereof, I have hereunto set my hand and caused the seal of the United States of America to be affixed. Done at the City of Washington this thirty-first day of October, in the year of our Lord Nineteen Hundred and Thirty-nine, and of the Inde pendence of the United States of America the One Hundred and Sixtyfourth. FRANKLIN D. ROOSEVELT. By the President: CORDELL HULL, S e c r e ta r y o f S ta t e . Governor Lehman Proclaims Nov. 23 as Thanksgiving Day in New York—Other States Divided on Ob servance of Old and New Date Set by President Governor Herbert H. Lehman on Nov. 1 followed the ex ample set by President Roosevelt and proclaimed Nov. 23 as Thanksgiving Day in New York State, instead of the traditional last Thursday of the month. In his proclama tion the Governor said that “ we have much for which to be grateful in these days of world unrest,” and urged all the people of the State to attend services. H is proclamation follows, in p a rt: We have been blessed with peace. We are securing the enjoyment of the civil and religious liberties guaranteed to us by those greatest of all human documents— the Constitution of the United States and the Bill of Rights. Our great national resources are sufficient for our needs and we have been spared from any major calamities. Now, therefore, I, Herbert H. Lehman, Governor of the State of New York, following the proclamation of the President of the United States, do hereby proclaim Thursday, Nov. 23, as Thanksgiving Day. I urge all people of the State to attend services in their respective places of worship, to return thanks to their common God, and to pledge to Him a continuing faith. In expression of gratitude for our own blessings, the greatest of which is peace in a world torn by war, let us in our prayers remember the tragic condition of nations blighted by violence and seek to mitigate the hopelessness of millions of men and women scourged from their homes, their occupations or their religious devotions by cruel oppression or intol erance. They, like all of us, are children of a universal God. Let us pray, also, that God will give our Nation and our people the wisdom to know and to plot the right .course in our relationships in the family of nations, and the courage ever to follow the ideals that have made this country great. According to the United Press, the States were evenly divided on Nov. 1 as to whether to observe Thanksgiving Nov. 23, as proclaimed by President Roosevelt, or the tra ditional last Thursday of the month. The Governors of 23 States, it is indicated, have said they would support the President. Twenty-three others said they would hold to tradition and proclaim Nov. 30. The other two States, Texas and Colorado, will observe both. The States were divided as follows, according to these same advices: Nov. 23— California, Delaware, Georgia, Illinois, Indiana, Louisiana, Maryland, Michigan, Missouri, Mississippi, Montana, New Jersey, New York, North Dakota, Ohio, Oregon, Pennsylvania, South Carolina, Utah, Virginia, Washington, West Virginia and Wyoming. Nov. 30— Alabama, Arizona, Arkansas, Florida, Idaho, Iowa, Kansas, Kentucky, Minnesota, Nebraska, Nevada, New Mexico, North Carolina, Oklahoma, South Dakota, Tennessee, Wisconsin and the six New England States— Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont— where Thanksgiving originated more than 300 years ago. The President’s proclamation is given in another item in this issue. President Roosevelt Says Schools Must Teach Suc cessful Management of Democracy—So States in Message on Observance of American Education Week In a message for American Education Week, which will be observed Nov. 5-11, President Roosevelt said on Oct. 27 that education in our democracy teaches the practice of reason in human affairs. The President went on to say that “our coming generation must learn the most difficult art in the world— the successful management of democ racy.” Asserting that we should think of our schools as “training centers in the use and application of the rule of reason in the affairs of men,” Mr. Roosevelt ended his mes YE A R S OLD 2901 sage by expressing the hope “ that out of our schools may come a generation which can persuade a bleeding world to supplant force with reason.” American Education W eek is sponsored jointly by the National Education Association, the American Legion, the United States Office of Educa tion, and the National Congress for Parents and Teachers. President Roosevelt’s message, which was addressed to “the patrons, students and teachers of American schools,” fol lows : Let us take note, as we again observe American Education Week through out our Nation, that education in our democracy teaches the practice of reason in human affairs. I refer not only to education that may come from books. I include education in fair play on the athletic field and on the debating platform; I include education for tolerance through participation in full, free discus sion in the classroom. Practice in the scientific method by our young people may be more important than learning the facts of science. From kindergarten through college our schools train us to use the machinery of reason; parliamentary practice; the technique of coopera tion ; how to accept with good graces the will of the majority; how to defend by logic and facts our deep convictions. This is education for the American way of life. Our schools also bring us face to face with men and women with whom we shall share life’s struggles. In their lives and ours, struggle will never be absent; the struggle of every individual against the stream of life ; the struggle and competition among individuals, groups, institutions, States and nations. To the resolution of conflicts and struggles of life, democracy supplies no easy answer. The easy answer, the quick but incomplete answer, is force; tanks and torpedoes, guns and bombs. Democracy calls instead for the application of the rule of reason to solve conflicts. It calls for fair play in canvassing facts, for discussion and for calm and orderly handling of difficult problems. These vital skills we Americans must acquire in our schools. In our schools our coming generations must learn the most difficult art in the world— the successful management of democracy. Let us think of uor schools during this American Education Week not only as buildings of stone and wood and steel; not only as places to learn how to use hand and brain, but as training centers in the use and application of the rule of reason in the affairs of men. And let us hope that out of our schools may come a generation which can persuade a bleeding world to supplant force with reason. White House Makes Public Exchange of Messages Last April Between President Roosevelt and Soviet President Kalivin Incident to Former’s Efforts for World Peace— Issuance Apparently Prompted by Remarks of Premier Molotoff’s Alleging Interven tion by United States in Finland’s Cause Following a speech on Russia’s foreign policy on Oct. 31 by Premier-Foreign Commissar Yyacheslaff Molotoff, in which President Roosevelt was mentioned as “ intervening” in the cause of Finland, the W hite House on Nov. 1 made public an exchange of cablegrams last April between Presi dent Roosevelt and Soviet President Kalinin which indi cated that the Soviet head had then expressed “profound sympathy” with President Roosevelt’s appeal to Germany and Italy for world peace. In United Press accounts from Washington, Nov. 1, it was stated that the effect of the publication o f the exchange of messages was to place on record President Kalinin’s support of Mr. Roosevelt’s peace program in contrast to Premier Molotoff’s comments of this week. The exchange of the messages of last April were made public as follows on Nov. 1 by the W hite H ou se: On April 16, 1939, the following cablegram addressed to President Roosevelt was received at the White House: " M r . President: “ I consider it m y pleasant duty to convey to you m y cordial congratulations (and an expression o f profound sym pathy with the noble appeal which you have addressed to the governments o f Germany and Italy. Y o u m ay rest assured that your initia tive finds most ardent response in the hearts o f the peoples o f the Soviet Socialist Union. "Sincerely desirous o f preservation o f universal’ peace. " K A L I N IN ” On A p ril 21, 1939, the President addressed the fo llo w in g message t o : “ Mikhail I. Kalinin, President o f the Presidium o f the Supreme Soviet M oscow (USSR) “ I have received your friendly message and am glad to learn that your views with regard to my efforts on behalf of world peace are similar to those expressed to me by the heads o f numerous other states. ^ B* “ F R A N K L IN D . R O O S E V E L T ” In his address before the Supreme Soviet meeting in Moscow, Oct. 31, Premier Molotoff referred to the negotia tions begun with Finnish representatives proposing the con clusion of a mutual assistance pact, and in part he was quoted in Associated Press advices from Moscow as saying: In view of all this we do not think that Finland will seek a pretext to frustrate the proposed agreement. This would not be in line with the policy of friendly Soviet-Finnish relations and would, of course, work to the serious detriment of Finland. We are certain that Finnish leading circles will properly understand the importance of consolidating friendly Soviet-Finnish relations and that Finnish public men will not yield to antiSoviet influence or instigation from any quarter. I must, however, inform you that even the President of the United States of America considered it proper to intervene in these matters, which one finds it hard to reconcile with the American policy of neutrality. In a message to Comrade Kalanin, Chairman of the Presidium of the Supreme Soviet, dated Oct. 12, Mr. Roosevelt expressed the hope that the friendly and peaceful relations between the U. S. S. R. and Finland would be preserved and developed. Premier Molotoff’s remarks were apparently based on a message sent Oct. 11 by Mr. Roosevelt to President Kalinin expressing the hope that Soviet demands on Finland would not be inconsistent with maintenance of peaceful relations between the two countries, and the independence of each; the text of that message and the Soviet President’s reply were given in our issue of Oct. 21, page 2444. President 2902 ONE HUNDRED — The Commercial & Financial Chronicle — Roosevelt’s appeal to Germany and Italy for a guarantee of a 10-year peace was made on April 14, 1939; the text of the message appeared in these columns April 22, page 2350. President Roosevelt Calls Action of Dies Committee in Publishing List of Mail and Membership Members of American League for Peace and Democracy “ Sordid Procedure” The publication on Oct. 25 by the House Dies Committee of what was described as a “membership and mailing list” of the American League for Peace and Democracy, which included the names of a number of Government employees, was characterized on Oct. 27 by President Roosevelt as a “sordid procedure.” The President’s description was given at a press conference. The House committee had published the names after declaring, according to Associated Press accounts from Washington, that the League is a “front” for the Communist party in the United States; this charge, it is stated, was denied by League officials. Martin Dies is Chairman of the committee, which was named to investi gate un-American activities. President Roosevelt’s com ments on the committee’s action were indicated as follows in Associated Press advices from Washington, Oct. 2 7 : When President Roosevelt was asked at his press conference for an expression of opinion, he called the committee action “ sordid procedure,” though he said he was not familiar with details. Then he permitted reporters to quote his rebuking words directly, a thing he seldom does unless he wishes to emphasize a statement. In a Washington dispatch, Oct. 28, to the New York “Times” Mr. Dies was reported as saying that his com mittee did not assert that the Peace League members were Communists. Mr. Dies, in an address in New York on Oct. 27 before the New York City Federation of Women’s Clubs, defended the action of his committee in making pub lic the names of Government employees on membership and mailing lists of the American League for Peace and Democracy. In a radio address from Washington, Oct. 28, Mr. Dies also took occasion to refer to the President’s com ments, and, in part, his radio broadcast was reported as follows in a dispatch from Washington to the “Times” : The investigation, said the Chairman, would be greatly hampered if the Administration did not change its attitude, but, he added, he would rather see the committee die than be “ party to a cowardly whitewash.” Then, appealing to the American people, he suggested that they write their “ servants in Washington” if they wished the investigation to go on as now conducted. “ I know,” said Mr. Dies, “ that you will understand me when I say that I have been deeply grieved by the President’s characterization of the proceedings of our committee as ‘sordid.’ I have not sought and will not now enter into controversy with the Chief Executive of my Govern ment. Neither will I say that my wisdom and judgment are superior to his, but I do know that the Federal Government has Communists in key positions, and nothing will deter me from exposing them to the people.” From Philadelphia, Oct. 29, advices to the New York “Tim es” said, in p a rt: The American League for Peace and Democracy, ending its “ national emeigency conference” here today, made abolition of the Dies Committee its first big objective and laid plans for a membership and fund-raising campaign. The dispatch also reported its National Chairman, Dr. Harry F. Ward, as saying that the Dies Committee’s activi ties represented “a war on the New Deal and its policies through us,” and, according to the dispatch, the League, at its closing session, denounced as false every assertion made by Representative Dies. President Roosevelt Endorses State Compacts on Oil— Receives Report from Interstate Oil Commission President Roosevelt on Oct. 24 again approved the prin ciple of controlling America’s oil production through State compacts. In reporting this, Washington Associated Press advices, Oct. 24, said: In response to press conference questions he asserted that several years ago he had favored that principle and felt it should be given ample oppor tunity to see whether it would work. The alternative to control through agreements among the States, he said, was Federal regulation, which he preferred to avoid. While the compact method has not been wholly successful, the President said, it is felt that it can be made a success. He was asked whether there was anything to reports in California that he had indorsed the Atkinson Oil Control bill pending in the State Legis lature. The President said he had done so and considered the measure a further implementation o f efforts to take care of oil production problems through compacts between the States. Regarding the President’s meeting on Oct. 18 with the Oil Compact Commission, Associated Press advices from Washington, Oct. 18, said: Members o f the Seven-State Interstate Oil Compact Commission advised President Roosevelt today that all the oil needed “ under any emergency” merely by “ opening the valves.” The President received a report on progress being made in conservation and proration o f oil production from E. O. Thompson, member o f the Texas Railroad Commission and Chairman o f the Compact Commission, and W. J. Holloway, o f Oklahoma City, Oklahoma’s representative. M r. Thompson said they reported there was now a reserve o f 17,500,000,000 barrels o f oil, compared with 5,500,000,000 in 1925 and that the reserves were being increased. He expressed the opinion that the various States were doing “ an adequate jo b ” o f controlling oil production and that there was no need for Federal regulation. He said the President “ seemed pleased that the States were doing a good jo b .” Rather than stepping up production to meet any wartime emergency, M r. Thompson said, the problem at present is to hold down the output to YE A R S OLD N ov. 4, 1939 market requirements of three to four million barrels a day. said, could produce 15,000,000 barrels. One field, he President Roosevelt Rejects Plan for Battery-Brooklyn Bridge in New York City— Supports Secretary of War Woodring’s Adverse Decision President Roosevelt informed Robert Moses, New York City Park Commissioner, on Oct. 31 that the proposal for a Battery-Brooklyn bridge in New York City was rejected. Secretary of W a r Woodring had previously opposed the con struction of a bridge as a hazard to national defense, and Mr. Moses appealed to the President to appoint a special commission to reconsider the application. This Mr. Roose velt refused, stating that the governing factor was that it “would not be in the best interests of national defense.” The appeal to the President was submitted on Oct. 23 by Mayor F. H. LaGuardia. The President’s letter, made pub lic by Mr. Moses Oct. 31, fo llow s: T h e W h it e H o u s e , W a s h i n g to n , O c t. 30, 1939. My dear Mr. Moses: I am in receipt of the letter of Oct. 19, signed by you, Mr. McLaugh, and Mr. Stephens, appealing from the decision of the Secretary of War with reference to the contemplated construction of the Brooklyn-Battery bridge. You urge that this application be reconsidered by an impartial committee, and, as a precedent, refer to the Hoover-Young Commission which was formed to consider the construction of the San Francisco-Oakland bridge. I amvery sympathetic with the desire of the people of New York to improve its traffic facilities, and I have read with interest the views set forth in your splendidly prepared appeal. However, as undoubtedly you are fully aware, the governing factor in arriving at a decision to with hold approval of the plans for the Brooklyn-Battery bridge was that the construction of the bridge would not be in the best interests of national defense. This conclusion was reached after receiving the views of the Treasury Department and the Navy Department as well as those of the War Department general staff, and after weighing carefully all phases of the case. I have consulted with the Secretary of War, who has carefully recon sidered the entire question and who advises me that in the light of world conditions today he is convinced that his original decision should stand and that no useful purpose would be served at this time by referring the matter to a commission. Very sincerely yours, FRANKLIN D. ROOSEVELT. The Tri-Borough Bridge Authority filed an application with the W ar Department on Feb. 8 , 1939 and a public hearing was held April 25. Following a disapproval of the application on M a y 17 by the Chief Engineer of the W ar Department, a revised application was submitted on M a y 24 and Secretary Woodring decided against the proposal on July 17. President Roosevelt to Ask Congress for $275,000,000 to Meet Increases Under Neutrality Program President Roosevelt announced at his press conference, Oct. 31, that he would ask Congress for a deficiency appro priation of $275,000,000 to cover the increase in the Army, Navy, Marine Corps and Department of Justice and for the recommissioning of World W ar destroyers for patrol duty. The President said that he had sent a letter to Representa tive Taylor of Colorado, Chairman of the House Appropria tions Committee, informing him of the cost of the program for safeguarding the neutrality of the United States and strengthening the national defense under the proclamation of a limited national emergency, issued Sept. 8 (noted in our issue of Sept. 9, page 1501). In Washington advices of Oct. 31 to the New York “Herald Tribune” it was stated : Mr. Roosevelt said that while the increase in the rate of expenditures would not require additional appropriations in 1940, it was in order for Congress to take up the details of the measures which made additional expenditures necessary. The President indicated that he would be glad to take these details up with the committee at the beginning of the next Tegular session of Congress. President Roosevelt said that he had communicated with Representative James G. Scrugham, Democrat of Nevada, Chairman of the Naval Affairs Subcommittee of the Appropriations Committee. Mr. Roosevelt said that he told the Representative that he would send up detailed supplemental estimates on Nov. 13 so that his committee could study them and be prepared for the regular committee meeting about Dec. 1. In his early estimates, the President recalled, he had placed the in creases in actual costs for the Army, Navy, Coast Guard, Treasury and putting the ships in commission at less than $300,000,000. The House Appropriations Committee will meet on Nov. 27 to consider the President’s request, it was decided Nov. 1 at a meeting of the deficiency subcommittee. President Roosevelt Questions Necessity of Loans on 1939 Cotton Crop At his press conference, Oct. 31, President Roosevelt ques tioned the need for making loans on 1939 cotton and de clared that the Department of Agriculture would have to prove its case before funds would be made available. This is learned from Washington advices, Oct. 31, to the New York “Journal of Commerce” , which also stated: A controversy appears to have arisen between the Bureau of the Budget and the Department over the question, following recommendations by Secretary Wallace to the President that financial assistance be given so that the growers of better grades and staples of cotton might have their position improved. Asked concerning reports that the Bureau of the Budget had rejected the suggestion of Secretary Wallace, President Roosevelt told his press conference that the matter is being discussed between them and that he also is trying to find out why the Department wants more loan money V o lu m e 149 ONE HUNDRED — The Commercial & Financial Chronicle — on the 1939 crop. He added that he had not been sufficiently informed yet as to why more money is wanted, at the same time declaring he thought that the Department had enough, and so it will have to prove its case before further allotments are made. United States to Cooperate with Geneva Board for Control of Narcotics Cooperation of the United States Government with the Permanent Central Opium Board and the Drug Supervisory Body at Geneva for the international control of narcotics was pledged in an exchange of letters between E. Felkin, Secretary of the Central Board, and Secretary of State Hull, made public Oct. 25. This was reported in a Washington dispatch, Oct. 25, to the New York “Times”, which also said : Hr. Felkin’s letter said that, notwithstanding the dislocation of war, international control had been functioning and would continue to function regularly. In reply Secretary Hull said that the United States Govern ment “ regards it as of the highest importance” that the two control groups “ should be enabled to function adequately, effectively and without interruption, and that they should enjoy the cooperation of all nations.” It was announced that the United States Treasury is taking steps to assure adequate assistance from United States manufacturers in meeting the needs of South American countiies for sufficient supplies of drugs for the ill and injured through “ the usual movement in the narcotic drug trade.” Congress Passes Neutrality Measure Agreed on by Conferees— New Legislation Repeals Arms Em bargo—Embodies “ Cash-and-Carry” Provision In the form of a joint resolution, to be known as the “ Neutrality Act of 1939” Congress last night passed legisla tion, revising the heretofore existing neutrality law, so as to repeal the embargo on shipments (in other than American ships) of arms and ammunitions to belligerent nations, and otherwise amending the neutrality laws. Congressional approval yesterday (N ov. 3) was given to the report of a joint Conference Committee of Senators and Representatives. As approved the new legislation sub stitutes for the arms embargo, a “ cash and carry” provision for the sale of such arms to belligerents. The Conference Committee, in reaching final agreement on the neutrality measure yesterday (said the Associated Press) approved provisions relaxing the shipping restrictions of the measure to give neutral vessels equal rights in carrying United States goods with American vessels traveling in the South Atlantic, Pacific, Indian oceans and dependent waters. In the Associated Press accounts from Washington last night, it was also stated: The conferees also adopted a preamble to the bill, first suggested last week by Senator Connally, Democrat, o f Texas, setting out that this Nation re serves all o f its rights under international law despite the restrictions placed on American citizens and ships. Four Republican members o f the 11-man group declined to sign the con ference report. Senator Pittman, Chairman o f the conference, said. These were Senators Borah o f Idaho and Johnson o f California, and Representa tives Fish o f New York and Eaton o f New Jersey. Explaining the provisions acted upon by the Committee, Mr. Pittman said neutral vessels would be permitted to carry cargoes originating in the United States to exempted areas in the Pacific and South Atlantic without transfer o f title being required. However, if the President designated com bat zones into which .American vessels could not go, the title transfer re quirement immediately would be placed on cargoes carried by other neutrals to those ports. The Conference Committee also excluded from the rigid credit provisions o f the bill the running accounts o f telegraph, radio, cable and telephone companies, Air. Pittman said. Provisions to place the act in operation also were relaxed somewhat. Under the agreed language, vessels which left American ports before the issuance o f a presidential proclamation putting the new Act into operation would be exempted from its restrictive clauses. Following the Senate adoption of the resolution on Oct. 27, a majority of the House Rules Committee on Oct 30 approved a method of procedure designed to accelerate pas sage of the bill in the House. A Washington dispatch of Oct. 30 to the New York “ Herald Tribune” described this action in part as follows: The proposed parliamentary procedure, bitterly assailed as a “ gag rule’’ by Representatives opposing repeal o f the embargo, stems from the fact that the House approved last June in the regular session o f Congress an Administration-sponsored neutrality revision bill but wrote into it a limited arms embargo, against wishes o f Administration leaders. The bill passed by the Senate at this special sesson comes before the House as an amendment to the House-approved measure. It is these two bills which w'ould be sent to conference for adjustment o f differences. Under the rule proposed today, members o f the House could not amend the Senate bill on the House floor, although they could move to instruct the House members o f the conference committee on what should be left in the measure finally resulting, this procedure itself being a rare one in that conferees usually receive no such instructions until after a conference dead lock. The awkwardness o f the situation, created deliberately perhaps by failure of the Senate to ask for a conference, will result in a House debate on a motion to instruct the House conferees. Leaders acknowledge that this debate might last 20 hours, or two hours, but they insisted it would permit members to go on record, if they so desired, on the arms embargo repealer and Senate proposals not in the House bill, notably the complicated shipping provisions, loans under the Senate’s cash-and-carry provisions and the discretionary authority vested in the President to declare “ combat areas.” The first test o f strength will come tomorrow with a vote on the rule and possibly a vote to relax the proposed procedure and permit the House to consider the Senate version as an “ original” bill. Representative Hamil ton Fish jr., o f New York, ranking Republican member o f the Foreign Affairs Committee and a member o f the Rules Committee, told the members of the latter group today that he would use every means to give the House a free hand. YE A R S OLD 2903 One suggestion was that House opponents o f repeal of the limited em bargo in the House version-—on “ arms and ammunition” or “ lethal” weapons only— would propose an added ban on poison gas and “ put members on the spot” o f voting for or against the exportation o f “ lethal weapons and poison gas.” “ The Senate rewrote the bill,” M r. Fish said, “ and if we send it to a conference committee from the Senate Foreign Relations and the House Foreign Affairs group, it will be packed in favor of the Senate bill. “ This is a ‘gag’ rule, and if it goes through, the House will cease to be a legislative body and become a rubber stamp for the Senate. This Rules Committee can make any arrangement it wishes for the House, and I want to put you on notice that House members know the Senate does just as it pleases.” After Representative Adolph J. Sabath, (Democrat), o f Illinois, Chairman o f the Rules Committee, read the prepared resolution which the House will be asked to adopt tomorrow, Representative Lawrence Lewis, (Democrat), o f Colorado, moved its adoption. Immediately, Representative Carl Mapes, of Michigan, ranking Republican member, demanded that a group o f members o f the House receive an opportunity to be heard. After con siderable bickering, these witnesses, all in favor o f opening the procedure in the House to amendments, were permitted to speak. On Oct. 31 the House adopted by a vote of 237 to 177 the rule providing that the resolution be sent to a joint SenateHouse Conference to adjust the differences between the Senate resolution and that passed by the House last June. As to this action Washington advices Oct. 31 to the New York “ Times” said in part: The only record vote o f the day, which brought 237 ayes and 177 nays, a margin of 60, was merely on a previous question, a motion offered by Representative Rayburn, majority leader, to close debate on adotption o f a special rule to send the conflicting House and Senate versions o f neu trality revision to conference with the Senate. It was a vote on a parliamentary question which might or might not foreshadow the attitude o f members when the question of retaining or repealing the automatic arms embargo of the present law comes up for decision. *<4 The whips discovered, by comparing this roll-call, which was the special session’s first record vote in the House having to do, even remotely, with the neutrality issue, that their showing compared favorably with what they were able to accomplish when the House revolted last June and adopted the Vorys amendment, restoring the arms embargo, against Administration wishes. On that occasion the amendment offered by the Republican from Ohio was adopted by 214 to 173, after Speaker Bankhead, M r. Rayburn and other Administration spokesmen had pleaded with the House to defeat it The winning side o f 214 votes included 61 Democrats. Today 48 of these Democrats voted with the Administration. Likewise one Republican and one Farmer-Labor member who had opposed the Ad ministration last June voted with it today. Against this gain o f 50 votes, the Administration lost five Democrats and four Republicans who had voted against the Vorys amendment. The net gain o f 41 votes just equaled the margin by which the Vorys amendment was put into the Bloom resolution last Spring. It was indicated on N o v . 1 in a Washington account to the New York “ Journal of Commerce” that further revision of the ship prohibition sections of the Administration’s neutrality measure was urged by Chairman Bland (Demo crat) of Virginia of the House Merchant Marine Committee upon prospective members of the House conference com mittee on the bill. From these advices we quote: S u g g ested C h a n g e s O u tlin ed 1. Wipe out the proposed satutory prohibitions and heavy penalties im posed American vessels operating to ports of belligerents in Europe. 2. Fermit American vessels to maintain their routes to any pert on the Mediterranean and coastal and inland waters south of 40 degrees north latitude. 3. Extend the period o f grace allowed American vessels preparing to sail to prohibited areas before the prohibitions go into effect. 4. Clarify the Senate modifications of the shipping bans to make certain that coastal and inland waters dependent to the oceans and seas exempted in the bill are open to American vessels. The Bland proposals came to light as Administration forces in the House pressed for a vote tomorrow on the question o f instructing conferees on arms embargo and credit provisions of the bill and as indications came that the isolationists might, under the parliamentary situation surrounding the bill, be shut off from their planned attempt to have combat area provisions o f the Senate bill eliminated. Chairman Bland has submitted to probable appointees o f the five-man committee to be named by Speaker Bankhead tomorrow to meet with a similar Senate group to iron out differences in the legislation between the two houses, suggested changes in the language of Section 2 o f the bill When the House recessed late today it had before it three propositions on which roll call votes will be sought: (1) The Shanley motion to instruct House conferees to insist upon retention o f the present law embargo on shipment of arms, ammunitions and implements of war to belligerents; (2) the Vorys amendment to that motion to limit the embargo to “ lethal” weapons, and (3) the Wolcott amendment to prevent Government agencies from making loans to belligerents. It had been anticipated that another amendment would be sought by the isolationist block to have striken from the bill those provisions of the Senate version which would authorize the President to establish combat areas wherein he feels it would be dangerous for American vessels to operate. Because the rules o f the House limit the number o f amendments which may be offered to a pending motion to two, it appeared tonight that the isolationists would be precluded from offering this proposal. Reporting that the neutrality resolution was sent to conference on N o v . 2 with its conferees free to compromise the many differences in the legislation with the Senate on N o v . 2, the “ Journal of Commerce” had the following to say in its advices from its Washington bureau: In a rapid series o f roll calls, Administration forces rejected demands of the isolationist block for continuation o f the present law’s embargo on export o f arms, munitions and implements of war, imposition of pro hibitions against shipment o f “ lethal” weapons and a tightening o f credit restrictions upon belligerents. W o lc o tt M o tio n B e a te n First, the House rejected by a vote o f 228 to 196 the motion o f Repre sentative Wolcott (Rep., Mich.) to instruct House conferees to insist upon 2904 ONE HUNDRED— The Commercial & Financial Chronicle— YEARS i nclusion of a provision in the bill to prohibit the R. F. C ., Export-Import Bank and other Government agencies from making loans to belligerents or aiding in the financing of their exports from the United States. Then the House voted 245 to 179 against the motion of Representative Vorys (Rep., Ohio) to instruct conferees to insist upon retention in the final draft of the legislation of House provisions embargoing shipments of “ lethal” weapons to belligerents. Finally the House by 243 to 181 voted down the Shanley motion to instruct the conferees to hold out for retention of the existing law’s pro hibitions against shipments of arms, munitions and implements of war to belligerents. For all practical purposes effect of the House vote is to repeal embargo provisions of existing law and open up the markets of the United States for arms, munitions and implements of war to any nation which can pay cash and take the articles away in other than American vessels. Conferees named by Speaker Bankhead immediately after the votes planned to meet with a similar group appointed earlier by Vice-President Garner for the Senate at 10 a. m. tomorrow to work out an agreement on the differences in the bill with the hope of arriving at an early com promise making possible adjournment of the special session sine die to morrow night. C o n fe r e e s A r e N a m e d Those named to the conference committee by the Speaker were:— Chairman Bloom (Dem., N . Y .) of the Foreign Affairs Committee; Rep resentatives Luther Johnson (Dem., T ex.), Kee (Dem., W . V a .), Fish (Rep., N . Y .) and Eaton (Rep., N . J.). The Senate conferees are: Chairman Pittman (Dem., Nev.) of the Foreign Relations Committee, Senators Connally (Dem., Tex.), George (Dem., G a.), Wagner (Dem., N . Y .) , Borah (Rep., Idaho) and Johnson (Rep., Calif.). With the exception of the arms embargo issue which now has been settled by the refusal of the House to instruct its conferees, major differences be tween the House and Senate versions of the legislation are in its effect upon American shipping. The House proposed in its bill originally that the principles of international law govern operations of American ships, but the Senate wrote in its bill statutory bans on American bottoms visiting belligerent ports of Europe and proposed that the President be empowered to set up combat areas in which America vessels would be prohibited from entering. The Senate approval of the neutrality resolution a week ago (Oet. 27) by a vote of 63 to 30, came after four weeks of debate; earlier in the day, by a vote of 67 to 22, the Senate rejected a substitute bill by Senator N ye (Republican) of N orth Dakota designed to retain the arms embargo. During the day an amendment by Senator La Follette (Progressive) of Wisconsin, requiring a national “ advisory referendum” prior to any declaration of offensive war by this country was debated, as to which United Press advices from Washington, O ct. 27 said: The La Follette Amendment lost, 73 to 17, but only after an extensive discussion which helped carry the Senate along into a night session. The La Follette plan called for a seven-member advisory board composed of the Vice-President, three senators and three representatives, to handle the “advisoy election” on a war declaration. It was also noted in the same advices that the Senate defeated, 65 to 26, an amendment by Senator Clark to close American ports to the armed merchant ships of belligerents. It also refused, 50 to 43, to reconsider an earlier decision against placing four members of Congress on the National Munitions Control Board. The United Press likewise (Oct 27) said: Senator Danaher (R ., Conn.) failed in an effort to tighten the title transfer section of the bill to require the payment of cash on nonmilitary goods sold by individuals in this country to individuals in belligerent coun tries. His amendment was beaten, 60 to 30. . . B y its action, the Senate repealed the embargo and authorized sale of arms, ammunition and war materials to all nations, including belligerents, but the latter must buy them on a strict “take title” and “ cash and carry” basis. These safeguards are intended to protect the Nation from being drawn into war through the sinking of American ships laden with war weapons. Under the plan, belligerents purchasing munitions in this country must pay cash, take title to the goods and transport them In their own ships. The vote in the House on N o v . 2 for continuing the em bargo was made up of 38 Democrats, 143 Republicans and I Progressives, and voting against the bill were 200 D em o C crats, 21 Republicans, 1 American Laborite and 1 FarmerLab orite. The Senate vote on Oct. 27 of 63 to 30 consisted of 54 Democrats, 8 Republicans and 1 Independent for the A d ministration’s neutrality bill, and 12 Democrats, 15 Repub licans, 2 Farmer-Laborites and 1 Progressive against the bill. An item bearing on the Senate action on the neutrality legislation appeared in our issue of a week ago (Oct. 28) page 2618. A t the last session of Congress the House (June 30, 1939) passed a neutrality bill with a modified form of the arms embargo, which the President opposed; this was noted in our issue of July 8, page 193; later on, July 11, the Senate Foreign Relations Committee voted to postpone consideration of neutrality legislation, and a few days later (July 14) President Roosevelt in a special message to Congress urged action (reported in these columns of July 15, page 33 9). The President on July 18 conceded defeat on neutrality revision (reference thereto appearing in our July 22 issue, page 492) and on Sept. 13 issued a proclamation summoning Congress to meet in special session Sept. 21 as was noted in these columns Sept. 16, page 1694. The text of his message to Congress on neutrality revision was given in our issue of Sept. 23, page 1817, and Senate debate on the measure was given in the following issues: Sept. 30, pages 2009 and 2014; Oet. 7, page 2164; Oct. 14, page 2306; O ct. 21 , page 2447, and Oct. 28, page 2618. OLD Nov. 4, 1939 Attorney General Murphy Interprets Hatch Law— Rules Federal Employees May Not Hold Office in Political Party or Attend Conventions as Delegates Attorney General Frank M urphy issued on O ct. 26 an in terpretation of the provisions of the Hatch Law, which pro hibits Federal employees from taking an active part in politics. He said the Act precluded aotendenee of Federal employees at political conventions, and barred them from holding any office in any political party. This was learned from International News Service advices appearing in the Washington “ Post” of Oct. 27, which went on to say: M r. Murphy decreed the following acts by Federal employees were pro hibited because they constituted “taking active part in political manage ment or in political campaigns” within the meaning and intent of the Act: Holding office in a political party or in a political club. Attending political conventions as a delegate or an alternate. Serving on committees of a political party or political club. Distributing buttons or printed matter in aupport of any candidate or party. Serving at the party headquarters or as watchers at polls, or otherwise assisting a party or candidate in any primary or election campaign. Being a candidate for elective office— -Federal, State or local— and solicit ing funds for a political organization or campaign fund. M r. Murphy said his rulings might require extensive future revision, and emphasized the need for additional, supplemental legislation, particularly to clarify the status of State employees who are paid in part or entirely with Federal funds. The following Federal employees, he said, are covered by the Act: United States attorneys and marshals, their assistants and deputies: special attorneys of the Department of Justice, special assistants to the Attorney General, temporary substitutes and per diem employees during period of their employment, reserve officers of the Army, N avy and M arrine Corps during active duty, furloughed employees and employees on leave, whether with or without pay; officers and employees of Govermental agencies such as the HOLC, the RFC and Public Works Administration; officers and employees occupying administrative and supervisory posi tions in the W P A , the N Y A and CCC. He ruled exempt from the Act’s provisions the following groups: Officers and employees of the legislative branch of the Federal Govern ment, including secretaries, clerks to Congressmen and Congressional com mittees; officers and employees of the judicial branch, including United States commissioners, clerks of Federal courts, bankruptcy referees and their secretaries, deputies and clerks. Officers and employees of State and local governments, even though their employment involves expenditure of Federal funds; persons retained to perform special services on a fee basis: persons receiving benefit payments, such as old-age assistance under the Social Security Act, agricultural con servation payments and retired Federal employees. Previous rulings by M r . M urphy, the Department of Justice and the Civil Service Commission appeared in our issue of Aug. 19, page 1110. German-American Mixed Claims Commission Grants Awards of $50,000,000 for Damages in Black Tom and Kingsland Explosions— Overrules Protests by Germany— Secretary Hull Declined to Intervene The German-American Mixed Claims Commission on Oct. 30 announced awards amounting to nearly $50,000,000 to persons and corporations suffering damages in the Black Tom and Kingsland, N. J., explosions which occurred just before the United States declared war on Germany in 1917. The awards were made despite protests from Germany, which sought through the State Department to prevent final action. They represented settlement of 153 American and Canadian claims totaling $21,157,227, plus interest at 5 % , which it is estimated brings the total claims to approxi mately $50,000,000. The awards were made by Umpire Owen J. Roberts (Associate Justice of the United States Supreme Court) after the Commission had found on June 15 that Imperial Germany was responsible for the munitions explosions in the New York port area before America entered the World W ar. In a Washington account, Oct. 30, to the New York “Herald Tribune” it was stated: Justice Roberts revealed that he had made the awards despite an appeal to the State Department to intervene in the case by Hans Thomsen, coun selor of the German Embassy. The German diplomat had asked the Department to quash the proceedings of what he referred to as a “ rump commission.” Cordell Hull, Secretary of State, refused, and in replying to Herr Thomsen characterized as “ unwarranted” the German official’s criticism and claim that Justice Roberts had committed “ illegal acts.” Germany has denied the right of the Commission to sit on the matter because Dr. Victor Huecking, the German Commissioner, walked out on the deliberations before the decision was made last June that German sabotage was responsible for the munitions explosions which occurred in the New York port area in 1916 and 1917. Germany deposited between $23,000,000 and $26,000,000 to meet the awards in the case in a special account at the United States Treasury. The Treasury also holds about $500,000,000 in the bonds of the former German republic. Dr. Richard Paulig, the German agent, was notified of today’s hearing, the American Commissioner, Christopher B. Garnett, said. At the session Mr. Garnett made public the correspondence which passed between Herr Thomsen and the Secretary of State on the claims. In reply to Herr Thomsen’s request that the proceedings be quashed, and his statement that Justice Roberts “ had no neutrality at all,” Mr. Hull replied as follows: “ I must refrain from engaging in a discussion of the various com plaints and pro tests set out in your com m unication and content myself by stating that, since the Department is without Jurisdiction over the Com m ission, I consider that it would be highly inappropriate for it to intervene directly or indirectly in the w ork of the Commission, or to endeavor, in the slightest manner, to determine the course of its proceedings. “ I have entire confidence in the ability and integrity o f the umpire and the C om missioner appointed b y the United States, despite your severe and, I believe, entirely unwarranred criticism, and I am constrained to invite your attention to the fact that the remarkable action o f the Commissioner appointed b y Germany was ap parently designed to frustrate or postpone indefinitely the work o f the Commission at a time when, after years of labor on the particular cases involved, it was expected that its functions would be brought to a conclusion.” Volume 149 ONE HUNDRED — The Commercial & Financial Chronicle — YEARS OLD 2905 Since it is probable that nothing can be realized on the bonds of the German republic. Commission aides said that the sum deposited at the Treasury to cover the payment of the claims would probably be prorated among claimants. The claims originated in the explosion of the freight terminal on Black Tom Island in New York harbor on July 30, 1916, when 2,000,000 pounds of munitions blew up, . . . and the Kingsland munitions plant blast on Jan. 11, 1916, when 500,000 three-inch shells exploded, started by a fire in the plant. at these low rates, M r . Pelley pointed out. The scope of the tickets provide what might appropriately be called “ Grand Circle Tours of North Am erica.” Secretary Hull’s letter, it is stated, was dated Oct. 30. According to Associated Press advices from Washington, Oct. 30, major awards made by the Commission include: The United States -Housing Authority m ay invite the private money market to invest in $770,000,000 of short term slum clearance and low-cost housing securities during the next calendar year, it was announced Oct. 29 by Admin istrator N athan Straus. In explaining this new policy, Associated Press, Washington advices, Oct. 29, had the following to say concerning M r . Straus’ remarks.: Lehigh Valley RR., $9,900,322 ; the agency of the Canadian Car & Foundry Co., $5,871,105; the Kingsland Underwriters, which paid insur ance on some of the losses, $1,311,203 ; the Delaware Lackawanna & West ern RR., $32,676; the Black Tom Underwriters, $2,095,607; the Bethle hem Steel Co., $1,886,491. The same advices sa id : The remainder was small claims. Aides of the Commission said they were unable immediately to give the exact total awarded, including inter est, because interest on the various claims had run for different periods in the years elapsing since they were filed. Reference to the decision of the Mixed Claims Commis sion holding Germany responsible for the munitions disaster was made in these columns July 1, 1939, page 39. Fourteen American Flag Ships Sold to Brazil— Purchase Price $3,500,000 The sale of 14 M oore-M c Cor mack Line ships to the Brazilian Government’s Lloyd Brasileiro Line was com pleted on Oct. 25 when a contract was signed at the offices of M oore-M cCorm ack Lines in N ew York C ity. The pur chase price was about $3,500 ,00 0. M ajor Napoleao de Aleneastro Guimaes, Brazilian Vice-Minister of Public Works and Transport, and Captain Manuel Celestino, New York head of the Lloyd Brasileiro, signed for the Brazilian Government, and Albert V . M oore, President of M ooreM c Cormack Lines, signed in behalf of his line. The following regarding the sale is from the N ew Y ork “ Tim es” of Oct. 25: Delivery of the ships will begin immediately, with two each month scheduled to be turned over until all have been delivered. MooreMcCormack, meanwhile, are expanding their service to South America and the Scandinavian States by 14 new cargo and passenger vessels now being l “ W are very happy that this contract has been signed with the Bra zilian Government,” said M r. Moore after affixing his signature, “ because we consider it another very important step in the development of the ‘good neighbor’ policy which President Roosevelt has carried to new heights during his Administration. “ Both our merchant marines, that of the United States and that of Brazil, should benefit by the sale. “At the same time it will clear the way for further expansion of the Moore-McCormack Line’s fleet. W e have acquired new tonnage for operation to South America and thus we will be able to render to shippers of the United States of America and of South America, and to travelers between the two Continents, an improved service in every respect.” The Maritime Commission at Washington approved on Oct. 30 the transfer of the 14 vessels from United States to Brazilian registry. Advices from Washington on that date to the New Y ork “ Journal of Commerce,” in noting this also said: The Commission’s action was conditioned on agreement with MooreMcCormack Lines, Inc., under which the shipping company will purchase four of the new C-3 cargo ships now under construction for account of the Commission. These vessels will be operated in the New York-South Amer ican trade. S h i p s S o ld f o r $3,500,000 The vessels covered in the transfer of registry were sold to the Brazilian Government for $3,500,000, which sum win be placed in a joint account with the Commission by Moore-McCormack for application to purchase of the new tonnage agreed upon, it was stated. Under terms of the sale Moore-McCormack has arranged a pooling agreement or arrangement with the Brazilian Government. Terms of this agreement were not revealed by the Commission. The Government agency did emphasize, however, that its approval of transfer of registery does not involve “either specifically or inferentially approval of any pooling agree ment or arrangements between the Brazilian Government and MooreMcCormack Lines, Inc.” Special “ Grand Circle” Railroad Fares to Be Continued Another Year So popular were the sensationally low “ grand-circle” rail road fares which were in effect during the two W orld’s Fairs that they will be continued to Oct. 31, 1940, J. J. Pelley, President of the Association of American Railroads, announced on Oct. 31. The success of this unique travel plan surpassed all ex pectations, M r . Pelley said, and this prompted the rail roads to extend the greatly reduced fares for another year. For only $90, an individual can travel by coach from any point in the United States to either New York City or San Francisco, then across the continent to the other city and back to the starting point, without retracing routes. Stop over privileges, giving tourists full opportunity to visit points of interest such as the National Parks and the N ation ’s famous resorts, are allowed in both directions. First-class tickets for a grand-circle tour cost but $135 plus special Pullman rates of $45 for a lower birth and $34.50 for an upper. Experience since the low fares went into effect has shown that circle tours of more than 10,000 miles can be made USHA to Seek Private Capital for Housing Projects— Administrator Straus Announces Plan Whereby Local Units Will Offer Short-Term Notes— First Offering of $50,000,000 Due in Two Weeks For example, he said, a local housing authority planning a $1,000,000 structure would obtain from the USHA a commitment of Federal funds to cover 90% of the cost. It would then offer to the lowest interest bidder on the money market $1,000,000 of non-callable securities to mature within six months. Just before the date of maturity the USHA would deposit with the nearest Federal Reserve bank $1,000,000 to redeem the securities. M r. Straus estimated that local housing authorities would save $14,400,000 during the year that private capital financed the $770,000,000 of contemplated construction. This, he added, would result from anticipated sales of the securities for 2 % less interest than the usual 3 to 3 M % charged by the USHA when projects were financed wholly from government loans, repayable within 20 years. The notes, he said, would be exempt from Federal taxes, and, in most instances, from State taxes. M r. Straus asserted that the Syracuse, N . Y ., Housing Authority, in a test of the new program, recently sold $1,000,000 of its securities maturing in nine months and callable within three months at an interest rate of .45 of 1 % . The first issue of new temporary loan notes, he said, would be offered to the public shortly. They will total more than $50,000,000“ There is every reason to believe,” M r. Straus continued, “that within a year or two most of the hundreds of millions of dollars invested in con structing public-housing projects will flow through the normal channels of the private investment market, relieving the United States Treasury of this operation and limiting Federal participation to the subsidies necessary for low rents.” Interest savings, he said, would be passed on to tenants in the form of lower monthly rental charges. M r . Straus announced on N o v . 1 that the first $50,000,000 offering of U S H A short-term notes will be made within two weeks. He added that the U S H A will make additional $50,000,000 offerings at six-week intervals as long as the authority need additional funds to finance projects. The following regarding his further remarks is from W ash ington advices of N o v . 1 to the N ew York “ Journal of Commerce” : These note oferings wiU be made in select groups of cities throughout the country with a different group chosen for each additional offering. The offerings will be made only for projects on which the contract has been approved and cash advances on the Government loan have become avail able. The new program of using regular loan channels to supply this money instead of borrowing from the Government is expected to save local au thorities substantial sums in interest charges. M r. Straus said he was confident that this temporary small-scale financing “ will proceed inevitably to permanent large-scale financing of public housing projects with private funds.” He said that the authority did not intend completely to stop the practice of making Government loans for housing projects, but added that he would like to see the practice now of the Government lending 90% of the cost and 10% being furnished by private agencies reversed. President Roosevelt Praises Work of USHA on Occasion of Second Anniversary In a message of congratulation on the second anniversary of the United States Housing Authority, President Roosevelt declared on N o v . 1, that “ an insistent idea that the illhoused poor must be provided with decent shelter and that unsafe dwellings must be eliminated has merged into the reality of finished projects.” The President’s letter was read by Administrator Straus in a nation-wide radio broad cast commemorating the anniversary. Addresses were also made by Senator Robert F . Wagner of New York and Rep resentative Henry B . Steagall of Alabam a, who were the sponsors of the Housing A ct. The President’s message follows: The second anniversay of the USHA is an occasion for real celebration. During these two years we have seen an idea develop into a reality. An insistent idea that the ill-housed poor must be provided with decent shelter and that unsafe dwellings must be eliminated has merged into the reality of finished projects, of decent low rent homes being constructed, of miserable, substandard hovels being demolished. It is this satisfaction in knowing that a long-felt need is being met which, to my mind, highlights your second anniversary. This is the democratic way, this is the American way of doing things. It gives me great pleasure to extend to you and through you to the local housing authorities and their staffs, and local, city, country and State officials throughout the country, my best wishes and an assurance of my appreciation of the work being done. Corporation Income Tax Returns in 1937 Fewer Than in 1936— Net Income Increased 1.7% Corporation income tax returns for 1937 declined 5 .5 % from 1936, but the amount of reported net income increased 1 .7 % , it was revealed in a Treasury announcement Oct. 13. The normal corporation income tax advanced by $32,146,228 or 3 .1 % , while surtax on undistributed profits rose $3 0,925,412 or 2 1 .3 % and the excess profits tax increased $21,722,784 or 1 0 0 .5 % , making a total increased tax yield of $84,794,524, or 7 .1 % . A Treasury Department statement, in analyzing the survey, said in part: 2906 ONE HUNDRED — The Commercial & Financial Chronicle — Corporations filed a total o f 529,097 returns for 1936, o f which 192,028 show net income, 285,810 show no net income and 51,259 show no income data (inactive corporations). The aggregate gross income reported by all active corporations is $141,967,076,852. The aggregate net income of corporations in the “ net income" group is $9,634,836,716 and the deficit o f corporations with no net income is $2,280,845,542. Returns with net income show normal tax o f $1,056,939,166, surtax on undistributed profits o f $175,897,696, excess-profits tax o f $43,335,435 and a total tax of $1,276,172,297. A comparison o f the data for 1937 with the data for 1936 shows that the number o f returns with net income decreased 11,133 or 5.5% and the net income increased $156,595,241 or 1.7% . The normal tax increased $32,146,228, or 3.1% ; surtax on undistributed profits increased $30,925,412, or 21.3%; excess-profits tax increased $21,722,784, or 100.5%; and total tax increased $84,794,524, or 7.1% . The number o f returns with no net income increased 10,114, or 3.7% , and the deficit increased $128,821,827, or 6.0% . A similar Treasury compilation was referred^ to in our issue of June 24 , 1939, page 3763. SEC Publishes Statistics on Underwriting for Quarter Ended Sept. 30— Participations Total $4b7,333,000 for 40 Issues— 63 New York Firms Had 67.3% of Aggregate-—18 New York Firms Managed 92.8% of Total Continuing the revised series of statistics of underwriting participations prepared by the Research and Statistics Sec tion of the Trading and Exchange Division, the Securities and Exchange Commission on Nov. 2 made public under writing statistics covering the three months ended Sept. 30, 1939. The Commission’s announcement stated: Underwriting participations for the three months ended Sept. 30, 1939, totaled $467,333,000 for 40 issues, consisting of $403,350,000 for 21 bond issues, $55,726,000 for 13 preferred stock issues, and $8,257,000 for six common stock issues. During this quarterly period 63 New York City firms had aggregate underwriting participations of $314,337,000, or 67.3% of the total. Although 155 firms outside of New York City had underwrit ing participations during the same period, the aggregate participations of such firms were only $152,996,000, or 32.7% of the total. The concen tration of underwriting business among New York City firms was greatest with respect to common stock issues with 70.0% of total common stock participations accounted for by such firms. The proportion of total par ticipations indicated for New York City firms was 69.0% in the case of bond issues and 54.6% in the case of preferred stock issues. The management of underwritten issues rested largely with New York City firms, with 18 such firms managing an aggregate of $433,688,000, or 92.8% of the total. The proportionate amount managed by New York City firms was 95.3% for common stock, 94.7% for bonds, and 78.4% for preferred stock. Combined underwriting participations of the 39 firms, which acted as managers, were $224,721,000, or only slightly smaller than combined under writing participations of $242,612,000 shown for the 179 non-managing firms. Thus, a relatively few originating houses secured almost one-half of total underwriting participations. Since an originating house ordinarily takes a fairly large participation in any issue which it manages, it is of interest to determine the proportion of participations in issues for which such firms acted as managers to participations in issues managed by other firms. For New York City firms, participations in their managed issues are about as large as participations in other issues. For firms outside of New York City, on the other hand, participations in their managed issues were only about one-half as large as participations in the other issues. The five firms having the greatest amount of underwriting participa tions during the third quarter of 1939 were as follows: The First Boston Corp. with $31,256,000; Smith, Barney & Co. with $22,033,000 ; Harriman Ripley & Co., Inc., with $21,292,000 ; Morgan Stanley & Co., with ___ — ' Steamboats YEARS OLD N ov. 4, 1939 $19,960,000, and Dillon, Read & Co. with $19,210,000. These five firms, all of which were located in New York City, accounted for 24.3% of total participations. The comparative ranking of individual firms with respect to the total amount of issues managed was as follows: Morgan Stanley & Co., Inc., with $107,250,000 ; The First Boston Corp. with $86,286,000 ; Dillon, Read & Co. with $74,125,000; Bonbright & Co., Inc., with $46,518,000, and Glore, Forgan & Co. with $33,844,000. These five firms, all of which were located in New York City, accounted for 74.6% of the total amount managed. Inventory Situation Has Shown No Considerable Changes Since Outbreak of European War, Accord ing to Survey by Independence Fund of North America N o excessive piling up of inventories has occurred since the outbreak of the European W a r, and even a quick peace should hardly require more than temporary readjustment, accord ing to a survey completed Oct. 31 by the Independence Fund of North America for their Investment Timing Service. The survey, which was in the form of a questionnaire to a large number of important industrial companies in many fields, shows conclusively, it is stated, that forward buying has not been of the reckless nature which characterized the inventory rise which began in 1936 and which was largely responsible for the sharp slump of 1937. A n announcement bearing on the survey also said: The survey sought both facts and business opinion. In the realm o f facts it was shown that inventories at the outbreak o f the war, including raw materials, semi-finished and finished goods, and both producing and dis tributing concerns, were high in only 11% o f the reporting companies. Another 11% reported low inventories, while 78% were moderate. Results since that time have been as follows: inventories have increased in 57% o f the companies and forward buying has been done in 69% , while increased demand has materialized in 92%. Opinion is virtually balanced as to the effect o f forward deliveries on inventories. Rising inventories are expected by 48% o f the firms, while 52% see no increase likely. On the other hand, 82% of the companies expect consumption to rise so as to balance inventories. The report on the survey concludes that production currently is running somewhat ahead o f consumption, but not excessively so. As a result, any decline in activity after the first of the year should be relatively moderate, leaving production still at high levels and a strong base o f renewed recovery. The survey also shows that a high degree of business intelligence is being exercised by the more important industrial companies. Producers on the one hand have been endeavoring to keep customers from ordering too much and too far ahead while middlemen, although increasing inventories, have kept them relatively low in relation to the demand for goods. SEC Sends Sales Questionnaire to 68 Life Insurance Companies— Also Submits Questionnaire to Officials of All States on Adequacy of Regulation The Securities and Exchange Commission announced Oct. 22 through the Temporary National Economic Com mittee that it has sent a sales questionnaire to 68 legal re serve life insurance companies, including a group of United States companies which reported more than $100,000,000 of ordinary insurance in force at the end of 1938. Com panies receiving the questionnaire have more than 9 0 % of the total insurance in force of legal reserve life insurance companies operating in the United States. The scope of the questionnaire has been restricted to enable companies to complete answers prior to the year-end work necessitated by the preparation of convention form annual statements. in Each State Statement of the number of steamboats, and of the tonnage of the same, in each State, so far as returns have been received, in December, 1838; and statement of the amount of tonnage of steam vessels in each State, on the 30th of September, 1837, according to the annual statement of the commerce and navigation of the United States, for the year ending September 30, 1837, and of the number built in 1837. R e tu r n s to D ecem b er, 1838 N o . of Vessels M ain e _ _ ___ New H a m p sh ire ____ V e r m o n t _____ ______ M a ssa c h u se tts R h o d e I s la n d _______ C o n n e c t ic u t _______ N ew Y o r k _______ __ N ew J e r s e y ____ __ P e n n sy lv a n ia ____ D e la w a re ________ _ M a ry la n d __ __ _ L’ ist. o f C o lu m b i a .. N o r th C a r o lin a ____ S o u t h C a r o lin a ____ G e o r g i a _______ F lo r id a ____ ________ A la b a m a _____ ____ • * M ississip p i_______ * A rkan sas. _ ____ L o u is ia n a ___ ___ 8 1 4 12 2 19 140 21 134 3 19 5 16 ii 22 29 17 18 R e tu r n , S e p t. 30, 1837 Tonnage 1,609 215 903 1,443 698 4,103 29,708 3,757 18,243 494 6,800 801 171 965 2,641 24,431 444 19.331 373 7,135 1,477 2,014 4,794 4,273 1,974 2,703 521 4,715 4,521 1,194 4.396 N u m b er o f S tea m V e ssels B u ilt in Tonnage 1837 Tonnage R e tu rn S e p t 30, 1837 Tonnage 5,193 1 5 2 . . . — — . . . — — — 54,421 41 8 ,3 5 6 9 2 1,714 7,967 15^396 2^611 9C0 3,668 12^375 2 ’ l9 3 N avy D e p a r t m e n t .. W a r D e p a r t m e n t ___ E n g in e e r D e p a rtm ’ t 42 79 13 1 4 9 T o ta l a s ce rta in ed 700 126,673 153,660 48 4 1 N um ber of S tea m V e sse ls B u ilt in 1837 ______ 1 1 1 16 - - 4,986 N o . of Vessels x I llin o is . - - 30 R e tu r n s to D ecem ber, 1838 __ __ __ __ 42 1 _ ___ 134 In 58 o f t h e above b o a ts , t h e to n n a g e n o t b e in g re tu r n e d , is e s t im a ted a t 10,800 t o n s m ore, m a k in g a n a g g reg a te of 137,473 t o n s in th e a s c e rta in e d b o a ts . * N o re tu r n s , x N o r e tu r n s from th e s e S t a t e s , exc ep t in p a rt y N o r e tu r n s fro m W is c o n s in , w ith M issou ri an d K e n t u c k y , e x c ep t in p a rt w ith M ic h ig a n . HUNT’S MERCHANTS’ MAGAZINE— February, 1841 Volume 149 ONE HUNDRED The — Commercial & Financial Chronicle — Replies have been requested by D ec. 15, 1939. release goes on to say: The SEC The questionnaire seeks information with respect to both the home office and field policies o f companies in meeting problems in the sale o f insurance. Particular emphasis is laid upon training o f agents, the relative advantages and disadvantages of the branch manager or general agent system, and the compensation and career possibilities o f agents. Inquiry is made as to the manner in which the home office acquaints itself with the practices and problems o f their agency force and questions are asked concerning the functions o f the agency committee and the prin cipal home office executives handling agency problems. Companies have also been requested to give information on numbers and types o f policies sold, amounts o f business written at standard and substandard rates, asset shares, preferred risk policies, sales contests, re troactive benefits extended to policy holders, training o f general agents and branch managers, financing and guaranteed earnings o f general agents and branch managers, home office cost per policy of issuing and maintaining an ordinary insurance policy in force during the first policy year and sub sequent years, cost o f issuing not-taken policies, persistency ratings of in surance made at the time o f issue and similar matters. The SEC on Oct. 24 sent out questionnaires to the insur ance officials of every State asking them for their opinions on the adequacy of insurance regulation. Gerhard A . Gesell, special SEC Counsel in charge of the insurance pre sentation before the T N E C , addressed the following letter to the State insurance officials in sending them the ques tionnaire: In connection with the study o f insurance which this Commission is con ducting for the TN EC, I am writing to invite your cooperation in filling out the enclosed questionnaire which requests information relative to the scope and character o f legal reserve life insurance regulation. Copies o f this questionnaire are being sent to the principal insurance official o f every State. The Commission recognizes that you are under no legal obligation to reply to this questionnaire and realizes that it can obtain the information desired only with your voluntary assistance. Without a proper under standing o f insurance regulation, however, it is impossible for the Commis sion adequately to evaluate the information which it has assembled with respect to the operations o f the life insurance business. The Commission’s sincere desire to be fully informed in this respect has prompted it to for ward the questionnaire to you and the other officials because o f your knowledge o f this subject. You will note that the last question suggests several topics upon whicq you may wish to state your views. The Commission will be glad to re ceive any additional comment or suggestions you desire to offer regardless o f whether they relate to topics specifically covered by the questionnaire. Your courtesy and cooperation in filling out this questionnaire and re turning one copy by N ov. 20 will be greatly appreciated. R e c o m m e n d a t io n s fo r R e v is io n in F e d e r a l T a x a t i o n U rg e d b y C o m m itte e o f N e w Y o r k S ta te C h a m b e r o f C o m m e rc e — R e p e a l o f C a p ita l G a in s T a x a n d R e d u c tio n o f S u rta x e s A m o n g S u g g e ste d C h a n g e s Six specific recommendations for reform in Federal "ta x ation which whould be helpful in promoting business ex pansion and eventually would bring a substantial increase in Government revenues were submitted to the Chamber of Commerce of the State of New York by its Committee on Taxation at the monthly meeting on N o v . 2 . Jesse S. Phillips, Chairman of the Committee, asked the membership of the Chamber to approve the proposals, and following their approval by that body on N ov . 2 they were sent to the sub committee of the House W ays and Means Committee which is to consider a new tax measure at the next session of Congress. The recommendations which the Chamber endorsed em body a broadening of the income tax base, the repeal of the capital gains tax, a reduction of surtaxes, the filing of con solidated returns by corporations, the restricting of the im position of inheritance taxes to State governments and the creation of a non-partisan commission to simplify the whole system of taxation. Members of the Chamber Committee who signed the report in which the recommendtions were presented were M r. Phillips, the Chairman, and Frank C . Belser, Thatcher M . Brown, George H . Coppers, Robert L. Hoguet and Otto E . Reimer. The recommendations follow: (1) The Federal income tax exemptions should be lowered. Although 60 to 70 millions o f our citizens are o f voting age, approximately only three millions pay a Federal income tax. Not only is it equitable that a much larger proportion o f our citizens pay an income tax, but is also desirable to create, by lowering the exemptions, a wide-spread interest in government and Federal expenditures. ^ (2) Capital gains should not be taxed under an income tax, because it makes capital immobile by retarding individuals from taking reasonable business risks which they would otherwise undertake. This change in the tax law would be an encouragement to take profits, shift investments and keep funds active, thus promoting business and industrial expansion. (3) The surtax rates should be reduced in order that capital may flow more freely into private business. The present rates are an important factor in withdrawing capital from business undertakings, and hampering the development and activity o f industry. (4) Corporations should file consolidated returns. The taxation o f inter corporate dividends is unsound because it constitutes a multiple tax on the same income and is against the best interest o f business as well as the public treasury. Subsidiaries and affiliated corporations are necessary as a matter o f business convenience, or because o f the compulsion o f State laws; the policy o f punitive taxation should be discounitnued. (5) The Chamber has opposed on several occasions a Federal inheritance tax since February, 1917, believing such taxation to be “ a serious menace to the fiscal plans o f our States,” and that is should be a source o f revenue only for State governments. The present high rate o f taxation by both Federal and State governments o f inheritances has the effect o f with drawing large amounts o f capital from business ventures, because the owners o f such capital must keep a large proportion o f it in liquid form to meet inheritance taxes in event o f their death. The drastic levies through such excessive taxation in this field is another deterrent to business activity. YE A R S OLD 2907 (6) A non-partisian board or commission should be established, composed o f experts in taxation, accounting and economics, to study ways and means for the elimination o f duplicating, overlapping and pyramiding taxes, and the coordination o f the multiplicity o f taxing agencies. Federal, State and local. B u s in e s s W a r n e d b y “ B a n k i n g ” A g a i n s t O v e r -O p tim is m o n E u r o p e a n W a r — S ix E f f e c t s o f W a r O u t l i n e d A note of caution against over-optimism in a long-range view of the effects of the war in Europe on American busi ness is sounded in the monthly survey on the condition of business in the November issue of “ Banking” , official publi cation of the American Bankers Association, of which William R . Kuhns is Editor. The survey states: The war seems to be making things easier for business, although the feeling up to this time is not entirely optimistic. There is a boom spirit tempered by the belief that war profits will be a boomerang. In some re spects the most satisfactory thing about the outlook is the calmness with which most manufacturers and traders are making their plans. Prices seem to have found a long upward path and this is what some of our previous booms were made of. The war has cast an artificial glow over the whole picture and placed some tricks on our thinking, and it will take some time to discover what they mean. Recovery, o f course, had developed quite a bit o f momentum before the first shot was fired and every index was pointing to a continua tion of the movement. Meanwhile, no one really believes that prosperity can be based on the destruction of life and wealth. Six definite effects of the war on American business are outlined in the survey. Concerning these, an announcement states: First, it states, the war appears to have interrupted a seven-year period o f experimentation in government, although much o f this is reappearing in the form of emergency economic controls for national defense purposes. Second, the war has diverted attention from the rising Federal debt and yearly deficits, with the result that the fiscal problem has been overshadowed in the press and the public mind by war news from abroad, thesurvery con tinues. Third, the “ partnership arrangement” between Russia and Germany has demonstrated the similarity of these two systems of state socialism, bring ing out at the same time the close relationship between individual freedom and American capitalism, and fourth, the war has increased the hopes of business men for increased trade with South America in spite o f the fact that Latin American nations are handicapped by lack of adequate funds with which to expand their purchases, the survey points out. Fifth, the war has stirred into action the inflationary impulses which have accumulated in the easy-come-easy-go era of national finance. This is reflected in the attempts everywhere to give prices a little lift here and a boost there. And sixth, the war has definitely hastened reemployment, the survey concludes. T r u s t I n s t it u t io n s S ta b iliz e B u s in e s s , A c c o r d in g to P r e s id e n t H a n e s o f A . B . A . B e fo r e M id -C o n t in e n t T r u s t C o n fe r e n c e — S u p p o r t o f R a il L e g is la t io n U r g e d b y P r e s id e n t N o r r is o f S o u t h e r n R y . S y s t e m — R . E . C la r k A s k s O b s e r v a n c e o f T r u s t I n d e n t u r e A c t— O th er S peak ers The Nation’s trust institutions and banks with trust de partments make a definite contribution to the stabilization and advancement of American business, Robert M. Hanes, President of the American Bankers Association and Presi dent of the Wachovia Bank & Trust Co., Winston-Salem, N. C., told the tenth annual Mid-Continent Trust Confer ence of the Association’s Trust Division at Chicago on Oct. 2G. “ There exists in some quarters a popular concep tion that money and property held in trust is permanently withdrawn from the channels of business and is thereby frozen,” said Mr. Hanes in the course of his remarks, and he went on to say, in p a rt: The fallacy of that belief is quite obvious. Trust institutions are not cold storage plants, and property held in trust is neither frozen nor permanently held. It is invested in a great variety of enterprises and undertakings that in turn give work and supply payrolls to millions of our people. The person who holds money may,- if he chooses, keep it idle in the form of cash. If and when that money is placed in trust with a trust institution, it must be invested within a reasonable time, and thus is restored to the channels of business. Furthermore, property is held in trust on an average of only a few years; it is constantly flowing out as estates are settled, as beneficiaries reach specified ages, or as other contingencies materialize. If the sources of supply of new funds, coming into trusteeship should suddenly be cut off, it would be only a few years until the trust business would vanish. The work of the corporate fiduciary acts as a stabilizer of business by reducing the probability of economic waste. Frequently when a lagging business becomes part of an estate or trust, and there is no chance for an advantageous sale, the trust institution revitalizes the management, elimi nates unprofitable features, and puts the business on its feet again. The corporate trustee protects property from dissipation and deterioration. It conserves wealth, yet makes it productive, and hence increases its useful ness over a longer period of years. The trust man, by assuming the responsibility for investment manage ment, by tackling the intricate problems of taxation, and by standing ready at all times to step into the shoes of the testator or trustor, relieves the minds of business men and frees their energies for the important tasks of business enterprise and production. An appeal to banking and business to support in prin ciple legislation now pending before Congress which would regulate all modes of transportation substantially in the same way was sounded at the conference by Ernest E. Nor ris, President of the Southern Railway System. “ Such legislation,” he said, “ will be the first definite proof of the enduring interest which the American public has in the principle of continuing to give the United States cheap and efficient transportation under private ownership and con trol.” He explained that the legislation has resulted from ONE HUNDRED —The Commercial & Financial Chronicle— Y E A R S OLD Nov. 4, 1939 2908 recommendations of a special committee of railroad presi dents and rail labor executives formed by President Roose velt last year. He further said: This committee labored long and earnestly and eventually joined unani mously in a report which was submitted to the President and by him to Congress. Legislation was introduced into the House and Senate giving effect to some of the recommendations of this joint committee, and while it does not cover all of the recommendations, it is a belated step in the direction of effecting a eomphehensive system of regulating all modes of transportation substantially in the same way. He asserted that railroads own, maintain, and pay taxes on the roadways they use, whereas motor truck and inland waterways carriers operate over highways and river chan nels constructed with Government money and maintained at the expense of taxpayers. Continuing, Mr. Norris said: The present unsatisfactory state of railroad earnings will not permanently be corrected until there is equality in the transportation field— until all modes of transportation are treated relatively alike. When every mode of transportation meets all its own costs, and complies with public regula tion of the same sort and degree, and when every mode of transportation carries its own proper part of the general burdens of government, then each will necessarily do the work it is best fitted to do. Business and the people of the United States will enjoy the best in all models of trans portation at the lowest real cost. He based his appeal to banking and business on grounds that they are fundamentally interested in the adoption of the sound policies of transportation he termed essential to sound business conditions throughout the country. “The soundness of Government, State or municipal securities,” he pointed out, “ depends upon the earning power of busi ness. Somebody must take the earnings that pay the taxes.” How to Commence Business W e ll b o y s , w e d o u b t n o t t h a t y o u w o u ld lik e t o rise h ig h in good fa rm ers, good m o tto th e w o r ld , a n d m e rc h a n ts, fo r & c. y o u — B e g in becom e H ere at th e is a lo w e s t r o u n d o n th e la d d e r a n d k e e p c lim b in g ; a n d h ere is a sto ry w h ic h w h a t w e w a n t to sa y . w ill illu s tr a te ju s t O n e o f th e w e a lt h ie s t m e r c h a n ts o f N ew Y o r k C ity te lls u s h o w h e c o m m e n ce d b u s in e s s . H e say s: I e n te r e d a s to r e a n d a s k e d if a c le r k w a s not w a n te d . th e an sw er, w ith “ N o ,” a ll m e; w hen in b e in g a rough to o I r e fle c te d b u sy to n e , to w as b o th e r t h a t i f t h e y d id n o t w a n t a c le r k t h e y m ig h t w a n t a la b o r e r ; b u t I w as d re ssed to o fin e fo r t h a t . to m y lo d g in g s , p u t o n a r o u g h I w ent garb , an d th e n e x t d a y w e n t in t o th e sam e s to re a n d d e m a n d e d if t h e y d i d n o t w a n t a p o r t e r , a n d a g a in , “ N o , s ir ,” w a s t h e r e s p o n s e ; w h e n e x c la im e d , in d e s p a ir , a lm o s t, “ A S i r , I w i ll w o r k a t a n y w a g e s . I la b o r e r ? W a g e s is n o t m y o b j e c t ; I m u s t h a v e e m p lo y , a n d I w a n t to b e u s e fu l in b u s i n e s s .” T h e s e la s t re m a rk s a t t r a c t e d t h e ir a t t e n t i o n ; a n d in t h e e n d I w a s h ir e d a s a la b o r e r in t h e b a s e m e n t a n d s u b c e lla r a t a v e r y lo w p a y , s c a r c e ly e n o u g h to keep body and sou l to g e th e r. In th e b a s e m e n t a n d s u b c e lla r I s o o n a t tr a c t e d th e a tte n tio n c le r k . litt le o f th e c o u n tin g h o u se a n d c h ie f I sa v e d e n o u g h f o r m y e m p lo y e r s in th in g s w a ste d to pay my w ages te n tim e s o v e r , a n d t h e y s o o n fo u n d it o u t . I d id n o t le t a n y b o d y a b o u t c o m m it p e t t y la r c e n ie s w i t h o u t r e m o n s t r a n c e a n d t h r e a t s o f ex p osu re, an d real exp osu re w o u ld n o t d o . h o u r la w . g r o w le d , I d id if r e m o n s tr a n c e n o t ask fo r a n y te n - If I w a s w a n te d a t 3 a . m . I n ev er but to ld everybod y to go “ a n d I w ill see e v e r y t h in g r i g h t .” o ff a t d ay b re a k p a ck a g e s fo r th e b o a t s , o r c a r r ie d t h e m m y s e lf. hom e, I lo a d e d m o r n in g In s h o r t, I s o o n b e c a m e in d is p e n s a b le t o m y e m p lo y e r s , a n d I rose a n d rose u n til I b eca m e h e a d of th e h o u s e , w ith m o n e y e n o u g h , a s y o u se e , t o g iv e m e a n y lu x u r y o r a n y p o s it io n a m e r c a n tile m an m ay d e s ir e fo r h im s e lf and c h ild r e n in t h i s g r e a t c i t y . H U N T ’S M E R C H A N T S ’ M A G A Z IN E , D e c e m b e r, 1854 Carefully made real estate mortgage loans are among the best investments for trust funds because they do not pre sent tlie market risk of long-term bonds and have higher rates of return, Clarence E. Kern, Vice-President of the Central Wisconsin Trust Co., Madison, W is., said on Oct. 27. He urged that in making real estate mortgage loans, bank ers should observe certain practices which will enable them to avoid difficulty in connection with them. Legal instruments which create trusts must he drafted in the future with greater flexibility so that trustees will be legally empowered to adjust the trust funds to meet violent changes in the Nation’s business, economic, and financial structure, A. F. Young, Vice-President and Trust Officer of the National City Bank of Cleveland, told the Trust Con ference on Oct. 26. Mr. Young said that the business de pressions throughout the country’s history, and particularly that of the past decade, have brought out clearly that the creator of a trust must not draw up a trust instrument which leaves the trustee bound to inflexible provisions which cannot be altered to meet new economic conditions. Oscar L. Buhr, Vice-President of the Detroit Trust Co., Detroit, Mich., recommended to the conference, Oct. 27, high-grade municipal bonds, well diversified in their ma turities and the geographic spread of the local governments which issue them, as one of the best types of investments for trust funds. Mr. Buhr outlined seven principal reasons for his approval of municipal securities as trust invest ments, all of which he based upon the investment experi ences of his bank over a number of years. Mr. Buhr stated that municipal securities offer safety o f principal together with a reasonable income, and he cited as another “im portant reason for buying municipal bonds is exemption from Federal and local taxes. W ith the present-day trend towards high income taxes and personal property taxes, it is important that exemption be emphasized in the large accounts.” He pointed out, however, that a serious question has arisen with regard to tax-exempt bonds because the Government has within the past year taken steps to elimi nate the tax-exempt provision. The Nation’s trust institutions and banks with trust de partments were urged to observe the spirit as well as the letter of the Trust Indenture Act of 1939, which was passed by the last session of Congress and becomes effective Feb. 3 of next year, in an address delivered by Roland E. Clark, President of the Trust Division and Vice-President of the National Bank of Commerce, Portland, Me. At the same time, Mr. Clark appealed to business, banking and industry to keep domestic, political and economic problems well in mind in spite of distracting war news from Europe. W ith reference to the Trust Indenture Act, Mr. Clark stated: Business never welcomes governmental regulation, and banking is no exception. The American Bankers Association did not favor passage of this Act. The Association believed that the objectives desired by the Commission could be well attained through the adoption of a code or a statement of principles similar to the Statement of Principles of Trust Institutions relating principally to personal trusts and adopted by the Trust Devision of the American Bankers Association in 1936. In view of the insistence of the Securities and Exchange Commission on the enactment of the legislation, the Association, through its executive officers, advised the Commission that it would not oppose the Barkley bill, provided that, in the opinion of a special committee to be appointed by the Trust Division of the Association, such legislation was workable. It is the opinion of the Division’ s Committee on Mortgage Trusteeships that the Act as passed is workable. It is the duty of the trust institutions of the country to endeavor to administer trust indentures which are subject to the Act by observing the spirit as well as the letter of that Act. 'The Act is entirely new legislation of the most technical nature, and it will hardly be possible to administer trusteeships subject to it without encountering some difficulties and rough edges. On the other hand, the SEC has displayed a sincere desire to carry out its concept of the Act with the least possible handicap to legitimate trust business. The same spirit having been evidenced by the congressional committees which con sidered the bill, the Trust Division confidently expects a sympathetic hearing and a cooperative attitude by both the Commission and Congress, if experience should indicate the need of amendments. W illiam A. Reed, Vice-President of tlie Central Hanover Bank & Trust Co. of New York, proposed a new basis for fixing fees paid to trust institutions by which annual charges would be assessed against both the principal and income of the trust, dividing the charges more equitably between the beneficiaries who receive the income and those who eventually inherit the principal. Mr. Reed based his proposal for the revised schedule of fees paid to trustees on two major points. First, he said, it would provide fairer treatment for trustees handling estates which extend over periods of many years, and second, it would correct the present situation, under which trust beneficiaries who re ceive the income from the estate, or the life tenants, pay the greater portion of the fees although they receive only an income and not the principal of the estate. Gilbert T. Stephenson, Director of the Trust Research Department of the Graduate School of Banking, in an address at the conference on Oct. 27 called for a definite statement of trust policies and practices by trust companies and banks with trust departments. He said that although trust institutions in this country lead those of all other common law nations in codifying the principles of trust management through a statement of principles, it is still necessary for them to work out definite, standardized poli cies by which those principles are administered. Volume 149 ONE HUNDRED —The Commercial & Financial Chronicle—Y E A R S OLD W a lt e r S . S c h m id t B e fo r e N a t io n a l A s s o c ia t io n o f R ea l E sta te B o a rd s P re sen ts S u g g e s tio n s o f C o m m it t e e W h i c h S u r v e y e d P r o b le m s o f C o m m e r c ia l D is tr ic ts — C o n v e n tio n A d d r e sse d b y H . D . P e ttib o n e a n d O th ers A beginning program for saving the present huge aggre gation of real estate values represented in the business districts in cities over the United States, and for solving present pressing problems so as to enable these districts to reach their maximum usefulness and efficiency, was sketched at the annual convention of the National Associa tion of Real Estate Boards at Los Angeles on Oct. 25 by W alter S. Schmidt, Cincinnati, Past President of the Asso ciation. Reporting to the convention first conclusions of a special committee appointed by President E. L. Ostendorf, Cleveland, to survey major present problems of commercial districts and suggest action which should be taken to adjust city structures to changing habits of modern living, Mr. Schmidt, Chairman of a citizens’ committee engaged in a study of the replanning of Cincinnati and Chairman of the Board of Trustees of the National Real Estate Foundation (projected coordinating center for real estate research), out lined the conditions now being faced as the result of the decentralization movement of recent years in most Amer ican cities. “ W e are passing through a period of violent change,” he said, “and unless we would see the most wan ton waste of wealth this country has ever,known through destruction of land and building values of business property it behooves us to understand what is happening to our com mercial districts, especially in the older cities, then to apply corrective and protective measures to what now exists and finally to adopt constructive policies for the future.” Initial suggestions made by the committee, which is open ing a long-term study of the economics of business-area planning in all types of commercial districts, he summarized as follow s: 1. Every city should make a complete real estate inventory and keep it continually current. 2. Traffic conditions 6hould be studied by experts as part of the plan ning work and satisfactory provisions made for arteries, public trans portation, parking facilities and by-passes around congected areas. 3. Adequate appropriations for planning commissions should be made and comprehensive plans made. 4. Determine the relationship between pedestrian traffic and buying; the conclusions arrived at by determining the corelationship will have almost the force of economic laws. 5. Combat legislation improperly detrimental to commercial districts or to the business in them; such legislation contributes to raising the cost of distribution, already a great weakness in our economic system, as well as damaging commercial districts. 6. Advocate measures for improving attractiveness, whether by way of removal of unsightly signs, & c., or by remodeling, limitation of building heights, &c. 7. Induce cooperative action between merchants and owners for the improving of shopping centers. In addressing the convention of the National Association of Real Estate Boards on Oct. 24 Holman D. Pettibone, President of the Chicago Title & Trust Co., stated that we are today enjoying a higher level of economic activity than has prevailed generally since 1937, and in some lines since 1929. The outlook for reemployment has not been so favor able for more than three and a half years. This means enlarged consumer purchasing power. Undoubtedly, the war is a strong factor in the present upsurge, although there is every indication that this country was entering upon a period of business recovery months before the war started. There are hopeful signs that the activity is already far enough along to survive a “peace shock.” In the field of real estate the outlook is for rising use, rising rents, a more active market, greater net earnings. That real estate should be valued for tax purposes largely on the basis of income was urged by Harry S. Cutmore, M .A.I., Chicago, 111., addressing a meeting o f the American Institute of Real Estate Appraisers of the National Asso ciation of Real Estate Boards at the Association’s annual convention. Mr. Cutmore, formerly Chief Deputy Assessor of Cook County, Illinois (in which Chicago is located) and author of “Cook County’s Assessor’s Manual,” pointed out that the property tax still remains the most important source of revenue for local governments. “Yet it is well known,” he said, “that the great majority of assessors use hit-and-miss methods of valuation which bear no semblance to the value estimates found by competent appraisers.” He observed that at the present time the Cook County (Illinois) Assessor is developing a technique in which the income factor is to be considered, and he added: The city of Fort Myers, Fla., has recently employed Charles P. Glover of that city to make a complete revaluation of all the real estate on the assessment rolls, using income and productivity as the principal basis for the valuation. Mr. Glover is the author of a recently issued manual for tax valuation which describes in detail the method which can be applied to the various types of property for estimating their value for tax purposes on the basis of their use value or productivity. Others who addressed the convention were E. L. Osten dorf, President of the Association; George C. Smith of St. Louis, Arthur W . Binns of Philadelphia, W alter H. Leimert of Los Angeles, Parker Webb of Boston, M a ss.; David D. Bohannon o f San Francisco, and George L. Schmutz of Los Angeles. 2909 D o lla r I n c o m e o f I n d i v id u a ls f o r T h r e e -Q u a r t e r s o f 1 9 3 9 W a s $ 2 ,0 0 0 ,0 0 0 , 0 0 0 A b o v e S a m e P e r i o d o f 1 9 3 8 , S e c re ta ry o f C o m m erce H o p k in s R e p o rts Secretary of Commerce Harry L . Hopkins announced yesterday (Oct. 27) that dollar income of individuals in the United States for the first three-quarters of 1939 was more than $2 ,000,000,000 higher than in the corresponding period of 1938. Income payments so far this year aggregate $5 0,789.00 0. 000 against $48,733,000,000 for the first nine months of last year. After allowance for the usual seasonal pattern, this corresponds to an annual rate of $6 8,60 0,0 00,0 00, as compared with a total of $66,275,000,000 for 1938, it was said. Income payments during September totaled $ 6 ,01 2 .0 0 0 . 000, a rise of $355,000,000, or 6 % , over the Septem ber total of $5,657 ,00 0,00 0. The Commerce Department’s announcement went on to state: The seasonally adjusted index of income payments advanced from 85.4 (1929=100) in August to 86.8 in September, the highest level in nearly two years and only 5% below the 1937 peak. The most important single factor in the advance was the sharp rise in agricultural prices and the attendant rise in cash income from farm marketings during September. Income from the non-agricultural sources rose slightly to 87.0 in September, from 86.7 for August. There was a larger rise in industrial pay rolls but this was offset in part by a sharp reduction in work-relief wages and in un employment compensation benefits, the latter reflecting largely the im proved employment conditions in September as compared with August. After correction for seasonal influences, the index of wages and salaries, which constitute approximately two-thirds o f total income, rose from 84.0 in August to 84.3 in September. Income received by employees during the month totaled 83,693,000,000, an increase of 5% over September, 1938. Pay rolls in the important commodity-producing industries (agriculture, mining, manufacturing and construction) were 11% higher than a year ago, whereas the incomes of employees attached to the distributive and service industries increased only 5% . Reflecting the sharp drop in workrelief wages since the first of the year, the contribution of governmental agencies to salaries and wages was 9% lower than a year ago. Income received in the form o f dividends and interest totaled $805.000,000 in September as compared with $451,000,000 in August and $723.000,000 in September, 1938. A further gain during September was recorded in income payments from entrepreneurial income, net rents and royalties. Income from the latter sources was estimated at $1,291,000,000 as com pared with $1,157,000,000 in August and $1,190,000,000 in September, 1938. IN C O M E P A Y M E N T S (Millions o l Dollars) Sept., 1939 Aug., 1939 Sept., 1938 First Nine Months 1939 T o ta l__________________ 6,012 5,400 5,657 Adjusted index, total ( 1 9 2 9 = 1 0 0 ) . .. .......... 85.4 86.8 81.8 W ages and salaries____ 3,693 3,560 3,525 A d j. index of wages and salaries (1 9 2 9 = 1 0 0 ). 84.3 84.0 80.4 Dividends and interest. 723 805 451 Entrepreneurial income and net rents and 1,291 royalties_________ 1,157 1,190 Social security benefits 223 & other labor incom e. 232 219 1938 1933 1929 50,788 48,733 34,085 60,706 84.0 81.2 56.2 99.7 32,204 30,612 21,297 38,994 82.5 46,288 78.4 6,102 54.0 5,622 99.8 8,575 10,252 10,101 6,363 12,450 2,043 1,918 1,159 687 S u rv e y B y B u r e a u o f L a b o r S ta tis tic s S h o w s t h a t F o o d T a k e s 33 C e n t s o f C it y W o r k e r s ’ D o lla r W h i le 25 C e n ts G o e s fo r H o u s in g a n d F u e l In discussing where the dollar from the average workers’ pay envelope goes, Commissioner Lubinof the United States Bureau of Labor Statistics reported on Oct. 22 that food takes 33 cents out of the typical city workers’ dollar, while housing and fuel take almost 25 cents. “ When another 10 cents goes for clothing, a balance of 22 cents is left to cover all the other items which enter into family living,” M r . Lubin said. These are the finidings of a survey made by the Bureau of Labor Statistics in 42 cities covering 12 months within the period 1934-36, according to the Bureau which says that a total of 14,469 families of employed wage earners and clerical workers who had received no relief during the year cooperated with the Bureau by giving an swers to detailed questions regarding their incomes and ex penditures. The Bureau’s announcement goes on to say: This group of families, with at least one employed member and a minimum income o f $500, the lower limit set by the plan of the investigation, averaged $1,515 per year. However, half of the families studied had in comes o f $1,458 or less. The average family, taking all the families studied in the 42 cities as one composite, spent a third of its entire income, $508, for the butcher and baker, the grocer and dairyman, and at lunch counters and resturants to purchase the family’s food. The average annual expense for housing, and fuel, light and refrigeration was $367. For some families this meant rented apartments with heat, light and current for refrigeration furnished by the landlord; for others it meant payment of taxes, interest and repairs on a 5 or 6 room house and purchase of heating fuel, electricity for lighting and ice for refrigeration. Clothing for this average family, which comprised 3.6 persons, cost $160 or $44 per person. Winter coats for the men and older boys in the family were purchased about once every five years and about once in every four years for the women and girls. Shoes on the other hand are an annual necessity. Expenditures for shoes constituted one o f the largest items of clothing expenditure. After food, clothing and housing, the largest claim on the family pocketbook was made by the automobile. Expenditures for purchase, operation and maintenance averaged $87 per family for the year. The survay found that more workers’ families in western cities had cars than those in eastern centers. Furthermore the families in smaller communities were more apt to have cars than those in metropolitan areas where traffic con gestion is greater. The majority of the automobiles bought by this group of workers’ families were purchased as used cars. They served to take family members to an from work and school and to provide inexpensive week-end or vacation outings for the whole family. It was impossible, 2910 ONE HUNDRED The — Commercial & Financial Chronicle —YEAR S however, to separate the extent to which automobile expenditures were devoted to recreation as compared to other purposes. After automobile expenditures came those for recreation of other types with an average o f $82 a year. This included cameras, radio purchase and upkeep, paid admissions to “ movies” , ball games and other commercial amusements, purchase o f newspapers and other reading matter, cigarettes and other forms of tobacco, as well as sport and play equipment. Expenditures for household furnishings, medical care, and household operation cash averaged approxim ately $60- Expenditures for house furnishings covered both purchase o f new items, and replacement of such items as light bulbs, towels, sheets and kitchen utensils. Included in household operation costs were telephone, laundry sent out, soap and cleaning supplies, household help, postage and similar items. Of every dollar spent for medical care 22 cents was for drugs, medicines, eye glasses and medical appliances, 10 cents for hospital service, and 68 cents for other medical service. Transportation by street car, bus, ferry, train, boat and occasionally by airplane, claimed a total o f $38 fo the average family’s income. Another $30 was required to take care o f the personal grooming o f these family mem bers. Of this, the largest item was haircuts, with other barber and beauty shop services and toilet articles and preparations also claiming a share. The other channels into which the typical workers’ family money found its way were gifts and contributions to persons outside the family, which aggregated $24; direct taxes and tother contributions to the community welfare which averaged $19; $7 for formal education; $6 for vocational ex pense such as union dues, licenses, etc; and $7 for miscellaneous expen ditures . M a r in e r s’ G r o u p U r g e s P r e s id e n t a n d C o n g r e s s to E lim in a t e S h ip a n d C o m m e r c e B a r r ie r s fr o m N e u t r a l i t y B ill The Council of American Master Mariners on Oct. 25 adopted resolutions, copies of which were sent to President Roosevelt, Vice-President Garner, Senator Alben W . Bark ley, majority leader, and Senator K ey Pittman, Chairman of the Foreign Relations Committee, asking them to aid in eliminating ship and commercial barriers and restrictions in the proposed neutrality act, thus preserving the tradi tional freedom of the seas for American ships. The communication read as follows: As 1’resident o f the Council o f American Master Mariners, I am taking the liberty o f sending you a copy o f a resolution which we have prepared for your consideration and also for the Congress o f the United States in connection with the above mentioned matter. It is our wish that you might take the initiative toward eliminating ship and commerce barriers and restrictions in the proposed neutrality act, thus preserving the traditional freedom o f the seas for all vessels o f the United States. I have the honor to remain most respectively yours, SCHUYLER F. CUM INGS, President, The Council o f American Master Mariners. The resolution reads: The Council o f American Master Mariners is a duly constituted organization o f seafarers who are in command or who have commanded ocean-going vessels o f over 5,000 gross tons in the American merchant marine, and W h e r e a s , the Council o f American Master Marinars is pledged to serve no personal or private ambition or interest but to promote broad general policies for the benefit o f masters, officers, the men, investors, shippers and national interest in the American Merchant Marien, and W h e r e a s , the Council o f American Master Mariners is representative of a large cross section o f American shipmasters engaged in American mari time operations both afloat and ashore, throughout the world, and W h e r e a s , it is our belief that the principles o f the freedom o f the seas are in jeopardy and the future welfare o f the American merchant marine threatened due to the possibility o f certain legislative barriers and re strictions being imposed by the Congress o f the United States which may impair the free operations o f American merchant vessels on the high seas, and W h e r e a s , it is our belief that the principles o f the freedom of the seas and neutrality are separate and distinct from one another, and therefore should not be confused or combined, B e it th e r e fo r e r e so lv e d that the executive committee o f the Council of American Masters Mariners hereby respectively petitions and strongly urges in the best interests o f the Nation that no legislation be enacted by the Congress o f the United States which will tend to abolish or compromise the traditional rights o f our American merchant marine to enjoy the free dom o f the seas and subject to international law. W h erea s, F iv e -D a y W e e k P la n G a i n i n g in P o p u la r i t y in N e w Y o r k C ity — S u r v e y b y M e r c h a n ts A s s o c ia tio n F in d s 16 D i f f e r e n t K i n d s o f B u s in e s s e s H a v e A d o p t e d P r in c ip le Sixteen different types of businesses in N ew York City have adopted the five-day week for all employees throughout the year, it was revealed on Oct. 22 in a survey made public by the Merchants Association of New Y ork. The study covered information obtained from 120 establishments, each of which has more than 75 employees. The Association said that the analysis showed that many employers would like to see the five-day week universally adopted throughout the city. A statement issued by the Association, summariz ing the results of the survey, said in part: Information received by the Association, indicates that the effects o f the adoption o f five-day week plans such as reduction in retail sales on specified days and the difficulty experienced by wholesalers in delivering merchan dise during the days on which large groups o f employees do not work, has been felt extensively. Undoubtedly many employers would like to see uniform practice through out the city, since the existence o f a semi-universal practice, as represented by the 77.8% o f employers who, for all practical purposes, have installed continuous five-day week plans, not only causes other employers great inconvenience, but also increases the cost o f conducting business during the days, principally Saturadys, when most employees are away from their work. This situation means that those employers who have not adopted five-day week plans maintain more or less regular staffs for accomplishing a considerably reduced amount o f work. As a result o f these considerations, OLD Nov. 4, 1939 a strong trend undoubtedly exists at the present time toward the adoption o f a practically universal five-day week basis o f employment throughout the New York area. The announcement b y the Industrial Bureau says that out of the 120 employers who gave information in this survey it was found that 104 had some form of five-day week plan and only 16 had no five-day week plan. Sixty of the em ployers, or 5 7 .7 % of those having such plans, give all their employees a five-day week throughout the year. Twenty-one employers, or 2 0 .1 % , reported a five-day week plan in operation for a portion of their employees throughout the year and 23 concerns reported five-day week plans for all employees during part of the year or five-day week plans for a portion of the employees during part of the year. N u m b e r o f S tr ik e s in U n it e d S ta t e s M o re T h a n D o u b le d in T h r e e Y e a r s o f O p e r a tio n o f N L R B C o m p a re d w ith T h r e e Y e a r s B e fo r e L a w W e n t in t o E ffe c t , A c c o r d in g to S u rv e y b y N ew Y o r k S ta te C h a m b e r o f C om m erce The number of strikes in the United States more than doubled in the first three years of operation of the National Labor Relations Board compared with the three years be fore the Wagner A ct, which created the Board, became a law, it was disclosed Oct. 30, in a survey made public by the Chamber of .Commerce of the State of N ew York . The survey, which was made by the Chamber’s Special Com mittee on Industrial Problems and Relations, said that while the Wagner Act was adopted in July, 1935, its influ ence on the volume of strikes that year was negligible be cause the N L R B was not organized until October. The Committee therefore disregarded the year 1935 in making its comparisons. The survey said: In the three calendar years preceding the enactment o f the Wagner law, 1932-1934, there were 4,392 strikes in the United States. In the three calendar years following its enactment, 1936-1938, there were 9,684 strikes, or an increase of 120%. The number of workers involved increased 12.7% and the man-days idle increased 9.6% in the latter period. In the above comparison, the survey said, due allowance should be made for the fact that the year 1932 was the lowwater mark of the depression and 1937 the year of strongest recovery. It pointed out, however, that while the general tendency of strikes was to follow the business cycle, this re lationship did not hold true with year-to-year fidelity. The survey further explained: In some years o f business prosperity there has been less strike activity than in years of depression. A notable example of this was in the 19271929 boom period when the yearly average number o f strikes was only 744 compared with a yearly average o f 2,898 in the 1920-1921 depression and 1,218 in the prolonged depression o f 1893-1898. Analyzing the outcome of the strikes in the two periods, the survey showed that in 1936-1938 when the Labor Board was in full operation: The percentage o f strikes settled by compromise between workers and employers decreased to an average o f 28.4% compared with an average of 31.7% in the earlier period. The percentage o f strikes won by workers increased to an average of 44.1% compared with an average o f 30.8% in the earlier period. The percentage of strikes in which employers were victorious decreased to an average o f 23.4% from an average of 33.8% in the earlier period. The survey said that in the first eight months of the Labor Board’s operation, terminating at the end of the fiscal year June 30, 1936, a total of 865 complaints alleging unfair labor practices were filed. During the next fiscal year 3,124 complaints were filed and during the 1938 fiscal year 6,807 complaints. These figures were cited by the survey to show “ the effect which the Wagner law has had in in creasing organizational activities of labor and the extent of labor’s resort to the Labor Board for the adjustment of alleged grievances.” The survey added: It is interesting to note that during the fiscal year ended June 30, 1938, more complaints against employers alleging unfair labor practices were filed with the Board than the total number of strikes in the United States (6,760) in the six calendar years preceding the Wagner Act. Commenting upon the number of cases before the Labor Board which were dismissed or withdrawn the survey said: The high percentage of cases withdrawn and dismissed— averaging 39.8% o f all cases disposed o f by the Board up to June 30, 1938— would seem to indicate that a large number of the complaints and petitions from labor organizations and individual employees were based on unfounded or un warranted charges or otherwise deficient. It seems reasonable to assume therefore that many of such cases, particularly those which might be classed as petty grievances, never would have attained the status o f labor contro versies if the Wagner Act had not been on the statute books. The survey pointed out that the percentage of strikes for union organization, which the Wagner Act was expected to reduce, had materially increased since the Labor Board was in operation. In 1936 such strikes were 5 0 .2 % of the total number of strikes reported in 1937 they were 5 7 .8 % , and in 1938 5 0 % . In the period between 1927 and 1934 the per centage of organization strikes averaged only 3 3 .8 against 52.7 in the 1936-1938 period. D ockers S tr ik e A g a in st E a ste rn C oast L in e s A strike was called, after failure to achieve a wage increase, against 10 eastern coastwise steamship lines on N o v . 2 , by the International Longshoremen’s Association an A . F . of L ., affiliate in the Port of New York. Volume 149 ONE HUNDRED —The Commercial & Financial Chronicle—Y E A R S OLD Approximately 5,000 men are expected to be affected in New York immediately with the number rising should it spread to other Atlantic Coast ports. Reporting the strike the “ Journal of Commerce” of N o v . 3 , said: The strike is the result o f failure o f the union to achieve a 10c. an hour raise and a 40-hour work week. Present pay is 95c. an hour for a 44-hour week. Yesterday the union offered to compromise a $1 an hour wage, but the shipowners turned it down, demanding a 90-day extension o f the present contract. Some o f the lines involved operate both coastwise and deep-sea vessels but only the coastwise boats will be affected because the longshoremen’s contract with the deep-sea operators has been extended due to the different circumstances prevailing in that field. fe, The companies involved operate some 70 vessels employing 3,500 men in the coastwise Grade. Vessels here expected to be affected immediately— having been scheduled to sail today or tomorrow— are the Savannah liner City of Birmingham, the Eastern Steamship Co. liners George Washington, Boston, St. John and New York, the Morgan liner Dixie, and the ClydeMallory line's Shawnee. Apparently the only men affected when the strike order became effective midnight were 300 longshoremen working at the Morgan line pier and 200 at the Eastern line pier. They walked out promptly and quietly. No picket lines were established immediately and it was not expected that this would be done before daylight. Joseph P. Ryan, president o f the International Longshoremen’s Associa tion, said last night that he regretted that a strike must be called because he believed it would be ruinous to the industry. He said he expected that 15,000 men in other ports also would be affected. g The 15,000 figure, o f course, would include ships’ crews, office help and other non-longshoremen categories not actually on strike, but unable to work because of the tieup. (ss The lines affected by the strike order are the Clyde-Mallory, United Fruit, Eastern Steamship, Bull, Lykes Bros., Moore-McCormack, Savan nah, Newtex, Old Dominion and Panama Railroad. D o d g a T r u c k P la n t C lo s e d b y C h r y s le r D is p u t e The 27-day old dispute between the Chrysler Corporation and the United Automobile Workers (C. I. O .) spread on Oct. 31 to the remaining 1,000 workers of the Dodge truck plant, bringing the total affected to 51,000. United Press advices from Detroit Oct. 31 bearing on the strike said: The action at Dodge truck was described by Herman L. Weckler, VicePresident in charge of Chrysler operations, as a “strike” on the heavy duty line which cut production 50% o f normal. I*, The U. A. W .-C . I. O., however, termed it a “ shutdown” by the manage ment— “ a show o f force which it hopes will influence the present negotia tions.” Picket lines were thrown around the plant, which has operated with only half its working force since Oct. 6 when the dispute flared over production speeds at the main Dodge plant. Richard T . Frankensteen, regional U. A. "W.-C. I. O. Director, said the Dodge truck workers “ had been subjected for more than a week to pro vocative acts by foremen and supervisors. M r. Weckler said the trouble started at 2 p. m. when “ work was so dis rupted that normal operations could not continue. Appalls to the president o f the union local and to the plant committee were fruitless.” j&sAt conferences today, M r. Weckler said, discussion centered on procedure under collective bargaining and handling o f grievances. fa James F. Dewey, Federal Labor Conciliator, said three major issues were deadlocking the negotiations. They were the question of arbitration, the extent o f the new contract and the degree o f recognition to be given the U. A. W .-C. I. O. He said he would immediately begin separate night ses sions with company and union officials in an effort to break the stalemate. Referring to the Chrysler Corporation strike, and the in tervention of Governor Dickinson of Detroit, the “ Herald Tribune” of N o v . 2 , said: Governor Luren B . Dickinson intervened today in the five-weeks-old Chrysler labor dispute by summoning the heads o f the contending parties to a joint conference before him Thursday. In joint telegrams t* K. T. Keller, President o f the Chrysler M otor Com pany and R. J. Thomas, President o f the United Automobile Workers (C. I. O.), Governor Dickinson and Arthur E. Raab, Head o f the State Labor Mediations Board, expressed concern at the continued spectacle o f 50,000 Michigan workmen out o f employment. “ The State cannot sit idly by without making every possible effort to end the situation,” the telegram said. Persons officially invited to the conference with Governor Dickinson are Keller and Herman Weckler, Vice-President o f the Chrysler M otor Com pany; Thomas and Richard T . Frankensteen, Vice-President of the U. A. W .-C . I. O. James F. Dewey, Federal conciliator, also will be present with Raab and members o f the Labor Mediations Board. The Chrysler plant at New Castle, Ind., closed today, adding 2,500 more to the list o f unemployment. The Dodge truck division shutdown had brought the Chrysler total to 51,000 unemployed, plus estimates as high as 100,000 additional affected in allied industries. A corporation spokesman here said there was no labor trouble at the Indiana plant, but that the closing was due to the Detroit dispute. A previous reference to the Chrysler strike appeared in our issue of O ct. 21, page 2455. S t r ik e s C a lle d a t B o r g -W a r n e r P la n t s Strikes were called on Oct. 30 , in the plants of the Norge and the Detroit Gear and Machine divisions of the BorgWarner Corporation by the United Automobile Workers (C .I .O .). Shortage of parts existing because of U .A .W .(C .I.O .) strikes in Borg-Warner plants caused the suspension Oct. 31 of operations at the M arvel Carburetor Com pany, a division of the Borg-Warner Corp. The strikes at the Norge and the Detroit Gear and Machine divisions were called within twenty-four hours after union employees at the plants had voted to walk out in protest against the corporation’s refusal to negotiate a strike at the Long Manufacturing division. Issues at the Long M anu facturing plant involve a union-shop clause, abolition of piece work, seniority recognition, vacation with pay and a bonus for night work. The strike at the Long plant has been 2911 in progress since late September, and has since spread to six additional plants, affecting more than 3,0 00 employees. Conferences of the Borg-Warner Corp. were postponed to allow David T . Roadley, Federal labor conciliator, to sub mit a settlement plan to the corporation’s officials privately. A m e r ic a n B lo w e r C o r p . S tr ik e S e t tle d The strike at the American Blower Corp., called by the United Automobile Workers (Congress of Industrial Organ izations), was settled on Oct. 26. Approximately 500 men affected by the strike returned to work on Oct. 30. Clark Morse, President of the American Blower Corp., stated that the contract guarantees the restoration of a wage cut of approximately 6 % . The cut was imposed last Jan. 1, and the restoration will become effective next Jan. 1. In reporting the strike settlement the Detroit “ Free Press” of Oct. 27 said: Leo Lamotte, U. A. W.-C. I. 0. regional director, who signed the con tract for the union, said that the union shop had not been demanded. The company manufactures heating and ventilating equipment. According to Mr. Lamotte, the contract, which expires April 30, 1941, provides a bonus of 5c. an hour for night work, and guarantees pay raises of 2c. and 3c. an hour to laborers. David T. Roadley, Federal labor conciliator, who presided at the negotia tions, said the contract calls for vacation pay in the form of a bonus based on 2 !4 % of each employee’s annual salary. Clarification of seniority and grievance clauses was also contained in the contract, he said. A m e r ic a n S m e ltin g & R e fin in g C o . R e o p e n s The American Smelting & Refining Co.’s plant at Perth Amboy, N. J., closed since Oct. 10, when 800 employees en gaged in the processing of copper, lead and zinc struck, was reopened on Oct. 27. About 100 men are said to have returned to work. The Perth Amboy Smelters and Refinery W orkers’ Union, a Congress of Industrial Organizations affiliate, called the strike when efforts to negotiate a dis pute over its demands for a 10% wage increase, a closed shop and the check-off system failed. The plant normally employs about 1,250 men. A previous reference to the American Smelting & Refining strike appeared in our issue of Oct. 14, page 2311. ^ K in g L e o p o ld o f B e lg iu m E x p la in s N e u t r a li t y P o lic y o f H i s C o u n t r y — -I n R a d i o A d d r e s s t o N e w Y o r k “ H e r a ld T r ib u n e ” F orum H opes A m e r ic a W ill S u p p o r t A t t it u d e T a k e n b y B e lg iu m fo r G o o d o f P e a c e in S e r v ic e o f C iv iliz a t io n In a radio address from Brussels, Oct. 26, to the ninth annual New York “Herald Tribune” Forum on Current Problems, King Leopold III of the Belgians set forth bis country’s position in the present European conflict. The King stated that in 11)37 Belgium was assured by her “three great neighbors” that her frontiers would be re spected anil her independence insured. Asserting that neu trality is vital to Belgium because it depends for its very subsistence on the activities of her inhabitants, the King said that “peace is thus for the Belgian people a matter of life and death.” He added that it has no ambitions for territorial expansion nor did it have any part in bringing about the present war. Stating that he trusts the word of the belligerents, King Leopold concluded by expressing the hope that the American Nation “ will encourage and support us in the attitude we have adopted for the good of peace in the service of civilization.” In our issue of Oct. 28, page 2616 and page 2626, the address of President Roosevelt and remarks of other speakers to the Forum were given. The text of King Leopold’s radio address, as given in the “Herald Tribune” of Oct. 27, follow s: I am honored by speaking from the same platform as your great Presi dent. When the Forum kindly asked me to give a short message to the American Nation, I accepted this invitation with pleasure. My compatriots, my family and I have many dear and faithful memories of the United States. No Belgian can forget the solace and efficient aid that the American people extended to the Belgian population by leading the relief of its needs during years of stress. The topic that was suggested to me was “ A Call in the Defense of Civilization.” I regard this suggestion as a compliment to my country. It implies a recognition of the distinguished place that Belgium has held throughout the history of the Western World. Belgium has always been looked upon as a fountainhead of Christian civilization. Convinced that my country is acting in the defense of this civilization by the attitude it has taken amidst the conflict that has broken out in Europe, I feel I might confine my remarks to clarifying to my American audience Belgium’ s position in this war— a position entirely consistent with the will, the courage, and the integrity of my people. In my capacity as head of the Belgian State, I welcome this opportunity of setting out clearly the following facts: In 1937 we made known our policy of independence, and each of our three great neighbors acknowledged this notification. They went further, spontaneously giving us a definite assurance that they would respect Bel gium’s frontiers and insure her independence. This led up logically to the declaration of neutrality which my Government made at the beginning of the present war. An attitude of neutrality is, moreover, in keeping both with the traditions and aspirations of the Belgian people, whose feelings have evolved from age-long struggles. The Belgian nation, which is the very incarnation of the sense of individual liberty, gave its blood to win its institutions in an unflinching determination to remain itself. Neutrality also is vital to my country. Belgium, whose territory is small but one of the most thickly-populated in the world, essentially depends for her very subsistence on the activities of her inhabitants. These activities in turn require a continuous florv of her export trade and 2912 ONE HUNDRED The — Commercial & Financial Chronicle — unhindered importation of food and industrial supplies. Peaec is thus for the Belgian people a matter of life and death. We have no ambitions for territorial expansion. Neither had we any part whatever in the happenings that brought about the conflict today dividing Europe. If we became involved in the fray, it is on our soil that the issue would be fought out, and, in view of the small size of our territory, that would spell utter destruction for Belgium, whatever the issue of the war. Side by side with Holland, Belgium stands for an island of peace in the interests of all. At the crossroads of the borders of the great west European Powers, Belgium, neutral, loyal, and strong as she is today, fulfills an essentially peaceful mission. She sets a limit to the fighting front and to the loss of human life. She stands amongst other neutral States for a stronghold of peace, and an agent of that appeasement which alone can save our civilization from the abyss into which a world war would throw it. We fully know our rights and our duties. We await the future with steadfast serenity and a clear conscience which nothing can perturb. We are prepared to exert our entire strength in order to uphold our inde pendence. Exactly 25 years ago, day for day, the Belgian Army, under the com mand of my father, King Albert, arrested, after a hard battle, the progress of a cruel invasion. If we were attacked, and pray God this may not happen, in violation of the solemn and definite undertakings that were given us in 1937 and were renewed at the outset of the present war, we would not hesitate to fight with the same conviction, but with forces 10 times stronger. Once again a single-minded nation would support its army. But we cannot believe that the belligerents would fail to respect our neutrality. We trust in the word they have given us and have proclaimed before the world, just as they may rely on our loyalty from which, follow ing the example set by my beloved father, I am resolved never to swerve, as the sovereign of a free and gallant people. In conclusion, let me express the hope that the American Nation, to whom we feel so closely drawn by ties of common aspirations and by similarity of our institutions, will encourage and support us in the attitude we have adopted for the good of peace in the service of civilization. L o rd L o t h ia n , B r itis h A m b a s s a d o r to U n ite d S ta t e s , in A d d r e s s in g P ilg r im s D in n e r in N ew Y ork, A s s e r ts T h a t G r e a te s t M ista k e s a t P e a c e C o n fe r e n c e W e r e E c o n o m ic , N o t P o litic a l— D is c u s s e s V e r s a ille s T r e a t y In an address before the annual dinner of The Pilgrims in New York City on Oct. 24, the Marquess of Lothian, British Ambassador to the United States, in discussing the Treaty o f Versailles, conceded that “there were certainly defects enough in it,” but he added, “it is absurd to attri bute all our troubles to it.” In part he added: YE A R S OLD Nov. 4, 1939 Presented by Mrs. Ogden Reid, Vice President of The New York “ Herald Tribune” and Chairman of the forum, as a Britisher who probably under stood America better than any other ambassador since Lord Bryce, Lord Lothian asserted that “ the longer war goes on, the more it inevitably and inexorably trenches upon individual liberty.” He described war as “ the greatest enemy of democracy.” After citing the evolution of government from the city-State in Greece, Lord Lothian said: “ Finally, when the United States was born, you made another vast dis covery by dividing the functions of government between the State and the province, you enabled the rule of law and the representative system to be applied so as to give freedom, responsibility, representation and peace to a continent as large as the whole of Europe. “ That has been your greatest contribution throughout your history, and it is for that accomplishment that Abraham Lincoln asked you to fight the Civil War. “ Now, we are faced today with something larger, far more difficult. It isn’t going to be solved in a day. Neither I nor anybody else can tell you how it is to be solved, but I venture to suggest to you that it is in the study of the growth of peace in the sense in which I have described, be ginning with Greece, passing through Rome, then through England and other countries, and finally the United States, that we are going to find the clue, the final clue which at some future date, near or late, will give to the world that peace, reign of law and liberty which we all seek more than anything else in the world today.” N ew Y ork W o r l d ’s F a ir C lo s e s 1939 S e a so n w ith F in a n c e s o n S o u n d B a s is , C h a ir m a n G ib s o n S a y s — A t t e n d a n c e W a s 2 6 ,0 0 0 ,0 0 0 — B r a z i l a n d F i n l a n d to P a r tic ip a te N e x t Y e a r — G la s s C e n te r W i ll A ls o R e tu rn A s tlie New York W orld’s Fair closed its first year of operation on Oct. 31, Harvey D. Gibson, Chairman of the Board of Directors of the Fair Corporation, issued a finan cial statement disclosing “a satisfactory condition” and he stated that no financial problem is expected to interfere with the opening next year. According to the report the Fair had a balance of $1,128,924 in net quick available assets on hand Oct. 30, which included $330,204 of accrued interest to be paid holders of $23,982,808.81 outstanding debentures on Jan. 1. A t the beginning of his statement Mr. Gihson expressed “deep appreciation” for the support shown by the public and all connected with the Fair and the hope for the same patronage next year. The text of the statement issued by Mr. Gibson on the financial condition of the New York W orld’s Fair follow s: At the conclusion of this, the first year of the operation of the Fair, in behalf of the board of directors and other committees of the Fair Cor poration, I wish to express deep appreciation for the support the Fair has Do not let us lose sight of the ideals which moved us in those remark received from the public, employees, exhibitors, concessionaires and all able days from 1914 to 1920. W e then entered an epoch in which an old T others who have played a part in the Fair’s success. world began to die and a new world began to be born. Before 1914 inter We have many plans for next year’s Fair which, during the next few national relations were governed by the old diplomacy. It was regarded months, will be announced from time to time to the public. We sincerely as natural and right that every nation should think only of its own inter hope that the Fair next year will merit the same generous confidence and ests, and should feel no responsibility for any one else. patronage that the public has given us this year. But in 1914 the democracies, which had previously concerned themselves Following our policy of disclosing our full position to the public, par almost entirely with their internal affairs, began to take charge of inter ticularly those who are interested in one way or another in the operations national relations. Democracy, as Thomas Mann has so brilliantly said in of the World’s Fair, we at this time wish to state the general financial his great address “ The Coming Triumph of Democracy,” by the law of its condition of the New York World’s Fair Corporation as its gates are about being, inevitably gives its allegiance not to dreams of power but to moral to close this year. ideals. It may not always live up to these ideals. It certainly does not. As of the close of business on Oct. 29 the Fair Corporation had on hand But they are the stars by which it guides its life. $1,328,090 current working cash. This was exclusive of a number of And so, immediately the democracies became actively concerned with accounts in which funds are segregated for specific designated uses. international affairs they proclaimed their own ideals about them. Our accounts receivable less reserve for doubtful accounts are $483,246. Mankind is a community. War is fratricide. Nations as well as indi Our current accounts payable, nothing past due, amount to $682,412. Our viduals have the right to life, liberty and happiness. Backward people have current accounts payable therefore exceed our accounts receivable in the the right to security against exploitation and to be guided toward selfamount of $199,166. If this difference between accounts payable and government. The status of all nations, great and small, should be equal accounts receivable is deducted from our cash on hand we have a balance before the law. And the establishment of a true reign of law between the of $1,128,924 which represents net quick assets available as of Oct. 30. nations is the only remedy for war. Included in this amount is $330,204 of accrued interest which will be Those were the ideals which underlay the war and the Paris Peace Con due and payable on Jan. 1, 1940 to satisfy debenture interest requirements ference of 1919. They are, I believe, eternally true. And they were ex on the $23,982,808.81 outstanding debentures. pressed with immortal eloquence by your own President Wilson. The satisfaction of settlement with contractors agreed upon last August Tire greatest mistakes made at the peace conference were not political has progressed according to echedule. The indebtedness to banks existing but economic. Few people seemed to realize the inevitable consequence of and increased as provided in the plan at that time has been liquidated dividing Europe, or, for that matter, the world, inter watertight economic in full. The balance of the total amount due contractors and debenture Compartments and then of imposing on these States fantastic reparations holders as provided in the plan to be liquidated out of gate receipts next and other forms of intergovernmental indebtedness which it was quite year amounts to $260,777 and $326,248 respectively. This is a reduction impossible to pay across these economic frontiers, without disaster for all. from a high point of about $2,400,000, or a reduction of approximately Fundamentally the British are fighting today for the preservation of $1,613,000. some of these new values, which the democracies declared during the last The projection of probable cash receipts and cash disbursements during war. I am not sure that our ultimate goal is yet visible, any more than the period between the close of the Fair this year and its opening next we were able to see in 1914 what we came to see, largely under American year indicates a satisfactory condition and no financial problem is expected leadership, in 1918. But there are, we feel, two points which are clear. according to the best figures that are available. The first is that there can be no basis for a lasting peace which does not In our estimates of cash to be received during this period no receipts give to all the nations of Europe their right to autonomous freedom and are counted on from an advance ticket sale campaign. until the Gestapo is cleared out from among them. The operating expenses of the corporation as provided for in the budget The second is that we should establish some security against constantly adopted by the board of directors yesterday, not including interest require renewed wars of aggression and against the situation in which Hitler has ments, averages $10,700 a day. Total operating expenses for the period been able to annex a new country by war or by threat of war every six amount to $2,204,317, interest requirements approximately $560,000, and months. direct construction costs $1,447,360, making total costs for the entire I am sure there is no desire in my country to impose another dictated interim period including interest requirements $4,211,677. peace on a prostrate Germany, or to take from her any lawful rights. On Revenue forecast is $4,240,000 which amount, however, does not include the contrary, I think there is a clear conviction that only through a peace net quick assets on hand as of Oct. 30 amounting to $1,128,924. negotiated with a government they can trust can Germany, and all other Attendance figures at the Fair for the season, April 30 nations also, obtain that legitimate place in Europe and the world which is the only possible basis for a lasting peace. to Oct. 31, as announced by the Fair’s treasury department But let there be no mistake. We feel that today we are fighting for Nov. 1, showed that 25,816,542 persons paid admission and some of the vital principles upon which a civilized world alone can rest— an additional 6,969,642 were admitted on working permits, a world in which the individual and the nation will be free to live their passes, etc., making a total of 32,786,184 admissions. The own lives in their own way, secure from sudden attack and destruction. admission price to the Fair next year will be 50 cents, Mr. There we stand; we can do no other. And unless I misjudge my fellowGibson announced on Nov. 1. countrymen, there we shall stand until that purpose is achieved. Addressing the ninth annual New York “Herald Tribune” Forum on Oct. 26, Lord Lothian said that Europe may yet find a clue to peace and order in the type of Government established in the United States at the cost of a civil war. The “ Times” of Oct. 27 summarized this speech as follow s: Announcement was recently made that Brazil and Fin land will participate in the Fair next year and that Norway, Sweden and Denmark will not return, although the Swedish pavilion will be operated as a private enterprise. The million dollar Glass Center at the Fair, sponsored jointly by the Owens-Illinois Glass Co., the Pittsburgh Plate Volume 149 ONE HUNDRED—The Commercial & Financial Chronicle— YE A R S Glass Co., and the Corning Glass Works, will again be a feature in the coming 1940 season, it was announced Oct. 29. Highly pleased by the large attendance at the building, which has exceeded 0,408,000 persons, the glass companies plan innovations to add to the present show for the coming season’s activities there. Previous reference to others who have decided to return next year was made in our issue of Oct. 28, page 2628. Death of Representative Chester C. Bolton of Ohio— Was Serving Fifth Term in Congress Chester C. Bolton, Republican Representative in Congress from the Twenty-second Ohio District, died of heart dis ease on Oct. 29 in Lakeside Hospital, Cleveland. He was 57 years old. Mr. Bolton was serving his fifth term in Congress, having been first elected to the House in 1928. He was reelected for four successive terms, but we defeated in 1936 and returned to Congress in 1938. The following concerning his career is from Cleveland advices of Oct. 29 to the New York “Times” : Mr. Bolton was elected to the Ohio State Senate in 1922, and served six years, spending the last two as majority leader and president pro-tem of that body. He was a delegate to the Republican national convention in 1928. Mr. Bolton was born on Sept. 5, 1882, the son of the late Charles C. and Julia Castle Bolton. . . . He entered the employ of the Bourne Fuller Co. here, which later became a part of the Republic Steel Corp., and had advanced to the position of Assistant Treasurer when the United States entered the World War. Commissioned Captain in the Army Ordnance Department after years of training in the Ohio National Guard, Mr. Bolton was assigned to the Munitions Standard Board as secretary and later to other duties with the General Munitions and the War Industries Boards. At the end of the war he was a Lieutenant-Colonel assigned as Assistant Chief of Staff of the 101st Division, with headquarters in Mattiesburg, Miss. During his career in Congress Mr. Bolton was a member of the Rivers and Harbors Committee for four terms and of the Appropriations Com mittee for two. He also served on the Select Committee on Conservation of Wild Life Resources, 1930-36, and was a member of the Migratory Bird Commission for the House, 1932-36, and of the George Rogers Clark Sesquicentennial Commission in 1936. After his reelection to the Seventy-sixth Congress he was reassigned to the Appropriations Committee and to the subcommittee for the War Department. Mr. Bolton was a foe of the spending program of the New Deal and refused to support the Townsend Plan movement. Swiss Bank Corp. to Publish English Edition of Its Monthly Bulletin The Swiss Bank C orp., which opened an agency in New York City on Oct. 16, will, in the future, publish an Epglish edition of its monthly bulletin discussing current topics. The organization’s main office in Basle has been publishing the review for many years but only in two languages, German and French. The bulletin for September contains a discussion of some of the aspects of the economic relations between Switzerland and the United States, the texts of the convention between the two countries signed in 1850 and of the trade agreement signed in 1936. Opening of the New York agency was reported in these columns of Oct. 21 , page 2439. L. H. Brown Awarded Vermilye Medal by Franlkin Institute for Work in Industrial Management The Franklin Institute of Pennsylvania will make its first award of the Vermilye M edal “ in recognition of out standing contribution in the field of industrial m anagement,” to Lewis H . Brown, President of the Johns-Manville C orp., New York , it was announced Oct. 29, by Philip C . Staples, President of The Franklin Institute. Presentation of the medal will be made in Philadelphia, N o v . 14. Nam ed after its donor, William M . Vermilye, Vice-President of The National City Bank of New Y ork, the medal is purposed to stimulate, encourage and recognize outstanding contributions in the field of industrial management not only in the United States but in other countries as well. M r . Brown will receive the medal for “ his brilliant work in executive management in industry.” Only Small Percentage of Public Regarded as Under standing Part Wall Street Plays in Economic Life of Country, According to W. Averill Harriman The subject of “ W all Street and Public Opinion” was dis cussed on O ct. 30 by W . Averell Harriman, Partner in the private banking firm of Brown Brothers Harriman & C o ., Chairman of the Board of the Union Pacific Railroad C o ., and Chairman of the Business Advisory Council for the Department of Commerce, at a luncheon meeting of the New York Financial Advertisers Association at the Lawyers Club in New York C ity. In analyzing the reasons why W all Street had been a popular political football, M r . Harri man observed that “ It is not enough to be ‘doing a jo b ’— it is necessary to have people believe you are.” He also said: Most o f the national publicity from Wall Street has come out o f the unusual incidents in its history. The ordinary banking and financial transactions are complicated and undramatic. I believe we will agree that only a small percentage o f the public has an understanding of the real part Wall Street plays in the economic life o f the country and in many o f the major developments, such as employment in which everybody is interested. OLD 2913 To emphasize the confusion of thinking that exists, M r . Harriman pointed out that “ Bankers were condemned a few years ago for making what were called improvident loans, and yet today they are being condemned for alleged un willingness to lend m oney.” In concluding, M r . Harriman stated: M V One inherent difficulty is that the qualities that make for success as a sound banker are so different from those that make success in publicity that they are not apt to be combined in the same individual. If, however, as much intelligent thought is given to the development of public understanding important public service performed as has been given to the technical aspects o f banking, there is no reason to doubt that over a period of time important progress can be made and future political difficulties minimized. National Association of Manufacturers Initiates Search for Nation’s Outstanding Inventors and Scientists — Dr. Karl T. Compton Heads Awards Committee Dr. Karl T. Compton, President of the Massachusetts Institute of Technology, heads a committee of six scientists named Oct. 15 to select America’s most outstanding “Mod ern Pioneers”— those inventors who have contributed most to the American standard of living in the last 25 years. The “Modern Pioneers” will be honored Feb. 27 at a cele bration in New York, sponsored by the National Associa tion of Manufacturers to commemorate the 150th anniver sary of the founding of the American Patent System. In addition to Dr. Compton the Awards Committee includes: Foixst R. Moulton, American Association for Advancement of Science. Goorge B. Pegram, Columbia University. John T. Tate, University of Minnesota. Edward R. Weidlein, Mellon Institute. Frank C. Whitmore, Pennsylvania State College. Simultaneous with the appointment of the Awards Com mittee, the N. A. M., in cooperation with scientific organiza tions, launched its search for the Nation’s outstanding in ventors and scientists. The N. A. M. asked manufacturers, trade groups and scientific societies to nominate persons for distinction as “Modern Pioneers.” Nominations close Dec. 1. A special committee of 80 leading industrialists has been appointed by the N. A. M. to promote the search for the inventors. Chairman of the committee is Robert L. Lund, Executive Vice-President of the Lambert Pharmacal Co. and Chairman of the N. A. M. Patents and Trade-Marks Committee. Two Chicago Institutes to Merge to Form Illinois Institute of Technology It was announced Oct. 26 by James D . Cunningham, Chairman of the Board of Trustees of Armour Institute of Technology, and Alex D . Bailey, Chairman of the Board of Lewis Institute, that their repective institutions had entered into and agreement to consolidate into a great new techno logical center for Chicago. It is said that this is the first occasion on which two colleges of engineering have ever agreed to merge their interests to produce an institution of more important scope. The announcement by the Armour Institute further stated: The name o f the new school is to be the Illinois Institute o f Technology, with the background and reputation o f the two component colleges recog nized by maintaining their names as applied to its two divisions. Armour and Lewis have for many years served the community in the fields o f en gineering education, and, by this amalgamation, it is expected that this work and this service can be grately enhanced to the benefit of the com munity. The general effect will be to produce for Chicago a technological institution second to none in this country. H. J. Johnson Appointed President of Institute of Life Insurance r The appointment of Holgar J. Johnson of Pittsburgh as President of the Institute of Life Insurance was announced Oct. 30 by Frazar B . W ilde, Chairman of the Institute’s board of managers and President of the Connecticut General Life Insurance C o ., at a luncheon at the WT aldorf-Astoria H otel, New York , given by Thomas I . Parkinson, President of the Equitable Life Assurance Society of the United States, and a member of the Institute’s board of managers. The Institute was formed early this year by 85 leading insurance companies to coordinate the efforts of the companies and agents to further improve their service to the public and to act as a clearing house for information on life insurance. A previous appointment to the Institute’s staff was mentioned in jiu r issue of June 24, page 3778. N. H. Dorrance and R. T. Stevens Nominated Directors of New York Federal Reserve Bank Announcement was made Oct. 31 by the Federal Reserve Bank of New York , through Owen D . Young, Chairman of the Board, of the nomination of Neil H . Dorrance, President of the First National Bank and Trust C o. of Camden, Camden, N . Y . , as a Class A Director and of the renomina tion of Robert T . Stevens, President of J. P. Stevens & C o ., In c., N ew Y ork, as a Class B Director. M r. Stevens’ present term expires D ec. 31 , 1939. If elected they will serve from Jan. 1, 1940 to D ec. 31 , 1942. Both candidates were nomi nated by member banks in Group 3 which comprise banks with capital and surplus of less than $301,000. Banks in Groups 1 and 2 will not vote in this election. Voting began on N o v . 1 and will continue until 12 o ’clock noon N o v . 16. The circular issued by the bank calling attention to the elec tion was referred to in our issue of Oct. 2 1 , page 2456. 2914 ONE HUN DRED The — Commercial & Financial Chronicle — G. L. Harrison, Head of New York Reserve Bank, Cele^ brates 25th Anniversary with Federal Reserve System F George L. Harrison, President of the Federal Reserve Bank of New York, celebrated his 25th anniversary of association with the Federal Reserve System on N ov . 2 . M r . Harrison has been associated with the Federal Reserve System since its organization in 1914. He served first as Assistant General Counsel and later as General Counsel of the Federal Reserve Board. He left Washington in 1920 to become Deputy Governor of the New York Reserve Bank and held this post until November, 1928 when he was made Governor of the Bank. The title of Governor was later changed to President. The appointment of M r . Harrison as Governor of the Bank was reported in our issue of N o v . 24 , 1928, page 2903. Stock Brokers’ Associates of Chicago Hold First Annual Meeting The first annual meeting of the Stock Brokers’ Associates of Chicago was held on Nov. 2 at the Hotel La Salie, Chi cago. Phil S. Hanna, editor of the Chicago “ Journal of Commerce”, was the principal speaker. Other addresses were made by Paul H. Davis, head of the brokerage firm bearing his name and Governor of the New York Stock Exchange; Arthur M. Betts, partner of Alfred L. Baker & Co. and Chairman of the Board of the Chicago Stock Ex change, and John McCarthy, partner of McCarthy & Scoville and President of the Chicago Board of Trade. John J. O’Brien, manager of the stock department of Wayne Hum mer & Co., who was recently elected first president of the new Association, as reported in our Oct. 21 issue, page 2457, presided at the meeting. ITEMS ABOUT BANKS, TRUST COMPANIES, &c. Arrangements were made N o v . 3 for the transfer of a New York Stock Exchange membership at $02,000, unchanged from the previous transaction on N o v . 1. ----- 4------ Arrangements were made Oct. 31 for the transfer of a New York Stock Exchange membership at $60,000. The previous transaction was at $62,000 on Oct. 20, 1939. ---- «---- Oscar Lassen, head of the carpenter shop of the New York Stock Exchange since 1895, on Oct. 30 celebrated at the Exchange his golden wedding anniversary and also his forty-fourth anniversary as an employee of the Exchange. A luncheon, which was attended by 35 members, officers and employees of the Exchange, including Edward E. Bart lett Jr., Chairman of the Board, was held in his honor at the Stock Exchange Luncheon Club. William K. Beckers, a Governor of the Exchange and a member of the firm of Spencer Trask & Co., was toastmaster. William McC. Mar tin Jr., President, presented a purse to Mr. Lassen in recog nition of the esteem in which he is held by both members and employees of the Exchange. W illiam B. Potts, former President of the New York Stock Exchange Building Co., presented to Mr. Lassen an engraved testimonial, also from the members and employees. Daniel F. O’Meara, President of the New York Chapter, American Institute of Banking, and Assistant Vice-Presi dent of the Public National Bank & Trust Co. of New York, announces a Federal Income Tax Seminar to be offered on Friday evenings during the next eight weeks under the leadership of Myron M. Zizzamia of City Bank Farmers Trust Co. This review course will consider the Internal Revenue Code as amended, current regulations, and recent decisions. The first class session was held at 6 p. m. on Nov. 3. -------♦------- The management of the Chase National Bank, New York, is informing its employees that as a result of recent amend ments to the Federal Social Security Act extending the oldage benefits thereunder to employees of National banks as of Jan. 1, 1940, the bank is altering its own retirement and insurance plan in such manner that the combined benefits under the plan and the Social Security Act will afford re tirement allowances comparable to those provided for by the present plan. The notice states that amendment of the plan will not affect retirement annuities already purchased or the rights of employees with respect to annuities which may be purchased by the bank on account of service prior to July 1, 1933. Both the non-contributory and contribu tory group life insurance in force on the lives of Chase em ployees will be continued without change. Guaranty Trust Co. of New York announces that at a meeting of the Board of Directors, held Oct. 30, the fol lowing titles of officers in the foreign department were changed: W illiam R. Strelow, Harold F. Anderson and Russell L. Wardburgh from Assistant Managers to Second Vice-Presidents, and Philip F. Swart Jr. from Assistant Secretary to Assistant Manager. Charles G. Edwards, President of Central Savings Bank, New York City, said on Nov. 1 that it is reasonable to expect an increase in the savings deposits of the Nation. Mr. Edwards further sa id : YE A R S OLD N ov. 4, 1939 While it begins to look as if American speculative fever has been dor mant, rather than cured, nevertheless in any period of rising employment there is always a great mass of people who finally find it possible to put something aside out of income for future protection. Also, a great army of young people, employed for the first time in their lives, are discovering the satisfaction of having a reserve in the bank, which does not fluctuate in value. ----- 4------ The Pan-American Trust Co., New York City, has applied to the New York State Banking Department for permission to open and maintain a personal loan department at its principal office and branch in New York City, it is learned from the department’s “Weekly Bulletin” of Oct. 27. ---- 4---- The New York State Banking Department on Oct. 25 mailed to depositors of the closed Times Square Trust Co., New York City, checks representing $46,752, it was an nounced by W illiam It. White, Superintendent of Banks. The money represents 5 % divided payments on deposits and is the second such dividend paid this year. The present payment brings to 909c the total of dividends paid to de positors. The bank was closed on Aug. 5, 1931, with 400 depositors and total liabilities of $2,062,425. John C. McConnell, formerly Executive Vice-President of the National Bank of W est Virginia at Wheeling, was elected President on Oct. 19, to succeed W . B. Irvine, who resigned recently after 50 years of service with the institu tion. The new President, who has been Executive VicePresident of the Wheeling bank since April, 1938, went to Wheeling from Cleveland, Ohio, where for several years he held a high position in the trust department of the old Union Trust Co. and later had been a Special Assistant to the Attorney General of Ohio. Following his graduation from the College and Law School of Western University, Cleveland, Mr. McConnell began his banking career as attor ney for the Union Trust Co., subsequently having charge of the trust departments during the liquidation of that bank. Isaac M. Scott is Chairman of the Board of Directors of the National Bank of W est Virginia, which was estab lished in 1S17. -------- ♦-------- Harry G. Kraus, formerly a partner of the investment firm of Kraus-Cunningham & Co. of Cleveland, Ohio, has become associated with the Cleveland Trust Co. in its com mercial banking department, it is learned from “Money and Commerce” of Oct. 28, which added: Mr. Kraus is a son of Joseph R. Kraus of Cleveland, long known in banking in Ohio. He was graduated from University School, spent two years as Kenyon College, and had been in the investment business since 1924. H . C . Smith, who entered banking as an employee of the First National Bank of Wilkinsburg, P a ., has been elected Cashier of the Citizens’ National Bank of W ooster, Ohio, succeeding in that capacity William Harris who had been Executive Vice-President and Cashier, and who continues as Executive Vice-President. “ M oney & Commerce” of Oct. 2 1 , in noting this, added: ► M r. Smith, after leaving Wilkinsburg, was four years a member o f the National Bank Examiners force, with the National City Bank o f Cleveland a short time and with the Citizens’ National Bank o f Washington, Pa., eight years. --------4-------- The “ Commercial W est” of Oct. 28 reports that Lester E. Smith has resigned as Assistant Cashier of the Merchants National Bank & Trust Co. of Fargo, N. Dak., to accept the casliiership of the Fargo National Bank of that city. The paper continued, in p a rt: Mr. Smith was educated at Buffalo, N. Dak., and Fargo, and entered the employ of the Merchants National in 1925. E. L. Shaw, who has been Vice-President and Cashier of the Fargo National, continues as Vice-President and Manager, to which position he succeeded at the death of Fred M. Hector, President, several months ago. The office of President will not be filled at present, and T. D. Hughes, Minneapolis, continues with Mr. Shaw as Vice-President. -------- 4 --------- A t the regular meeting of the Palm (-Fla.) Clearing House Association, the following officers, it was announced N o v . 1, were elected for the ensuing year: k' Bert C. Teed, First Vice-President o f the First National Bank in Palm Beach, was elected President of the Association; R . E. McNeill, Executive Vice-President o f the West Palm Beach At lantic National Bank in West Palm Beach, was elected Vice-President of the Association; Paul K. Reeves, Cashier o f the Florida Bank & Trust Co. in West Palm Beach, was elected Secretary o f the Association; and Roy E. Garnett, President o f the Lake Worth National Bank, was elected Treasurer. The Clearing House Association now comprises Palm Beach, W est Palm Beach and Lake W orth. THE CURB MARKET w M ixed price changes with a moderate tendency toward lower levels characterized the trading on the New Y ork Curb Exchange during most of the present week. There were some substantial advances among the preferred stocks in the public utility list and there has been some buying in the industrial specialty group. Oil shares have been quiet and moved within a narrow range. M ining and metal stocks were steady but the changes were generally in minor frac- V o lu m e 149 ONE HUNDRED The — Commercial & Financial Chronicle — tions. The aircraft issues have shown occasional forward movements but the tendency, on the whole, has been toward lower levels. Irregular price changes were in evidence during most of the short period of trading on Saturday. There were a few strong spots scattered through the list but these were largely among the slow moving stocks and had little effect on the market movements. Public utilities were quiet as many of the popular speculative issues failed to appear on the tape. Aviation shares wure heavy, mining and metal stocks were quiet and oil issues moved within a narrow range. Indus trial specialties were moderately active and several of the leaders in this group registered gains ranging from 1 to 2 points. Pepperell Manufacturing Co. was down 2 points to 88, and Great Atlantic & Pacific Tea C o. nv stock de clined ^ points to 110. Curb stocks were mixed on M onday -with gains and losses about evenly balanced. Trading was dull the trans x fers totaling approximately 154,795 shares. Public utility preferred stocks were higher and several of the more active issues moved forward a point or more. Textiles also were higher and in a number of instances reached new tops for the year. In the aircraft section Fairchild registered mod erate gains while Lockheed and Bell recorded fractional de clines. Oil shares continued quiet, mining and metal issues were weak and steel stocks were unchanged. Industrial specialties were moderately strong, Lane Bryant moving forward 1 2 points to 71 on a small turnover, Canadian Car & Foundry pref. advancing 4 points to 27, and Thew Shovel moved ahead 1 % points to 19. Price movements were again mixed on Tuesday, and while there was a tendency toward lower levels, a fairly large list of active stocks moved against the trend. Steel issues were irregular, Jones & Laughlin dipping 2}/% points to 40, while Pittsburgh Bessemer & Lake Erie gained a point at 413^. Public utilities, especially the preferred stocks, were stronger, Cleveland Electric Illuminating ad vancing a point to its top price for the year at 42 and Southern New England Tel. climbed upward 23^ points to new high ground at 160. Aircraft shares were steady but showed little change and substantial advances were registered by Royal Typewriter, Singer Manufacturing Co. and Chicago Flexible Shaft. Public utilities and industrial specialties were in demand on Wednesday at substantially higher prices. There was some irregularity apparent from time to time, and while the gains were checked to some extent, many of the market favorites continued to move on the side of the advance. Aircraft stocks moved downward with fractional changes and the oil shares continued quiet and for the most part unchanged. The aluminum stocks were stronger, Aluminum Co. of America pref. moving up a point to 116. Am ong the advances of note were Great Atlantic & Pacific Tea Co. nv stock 33^ points to 1133^; Cities Service Power & Light $7 pref., 6 points to 91; Ohio Public Service 7 pref. A (7), 2 points to 112; and Consolidated Gas & Electric of Balti more, 13^ points to 78. Trading on the Curb Exchange continued quiet on Thurs day, and while the turnover was down to the lowest level since the middle of October, there was a fairly large list of gains as the session ended. Oil stocks were unusually active, Standard Oil of Kentucky moving up to a new peak at 19; while Standard Oil of Ohio was close to its best for the year. Aviation shares were considerably stronger and moved for ward under the leadership of Lockheed which advanced to 3 2 % with a gain of 1 % points. Aluminum issues were again in favor and surged upward to higher levels. Public utility pref. stocks were in good demand and there was renewed activity apparent in the industrial specialties. Prominent among the advances were Aluminium L td ., 5 % points to 104; r Thew Shovel, 3 % points to 23; Standard Steel Spring, 2 points to 43; Koppers C o. pref., 2 points to 78 , and Heyden Chemical, 2 points to 60. Stocks moved higher on Friday and gains were apparent all T along the line. Aircraft stocks led the way, Bell Aircraft forging ahead 2 % points to 2 6 % followed by others in the group with somewhat smaller advances. Public utilities were in demand, particularly those in the preferred group, and there was considerable attention directed toward the in dustrial specialties, many of which closed at higher levels. The transfers were approximately 288,000 shares against 142,000 on the preceding day. As compared with Friday of last week prices were slightly higher, Aluminum Co. of America closing last night at 142 against 1 3 7 % on Friday a week ago; Aluminium Ltd. at 1 0 1 % against 9 9 % ; Bell Air r craft at 2 6 % against 26; Lockheed Aircraft at 3 3 % against 33; New Jersey Zinc at 6 9 % against 68; Newmont Mining Corp. at 7 1 % against 7 0 % ; Niles-Bement-Pond at 68 against 67, and Singer Manufacturing C o. at 154 against 151. Week Ended N ov.- 3. 1939 Saturday__________ Monday___________ Tuesday.................... Wednesday________ Thursday__________ Friday-------------------Total____________ Stocks (Number of Shares) 87.020 154,275 183,175 142,375 141,565 287.620 Bonds (Par Value) Domestic Foreion Government $690,000 1,289,000 1,453.000 1,374.000 2,094,000 1,440,000 $71,000 25,000 8,000 3,000 7,000 9.000 996,030 $8,340,000 $123,000 Foreion Corporate $20,000 54.000 28.000 52,000 33.000 59,000 Total $781,000 1.368.000 1,489,000 1,429,000 2.134.000 1,508,000 $246,000 $8,709,000 Week Ended N o v . 3 Sales at New York Curb Exchange 1939 Stocks— No of shares - 2915 1 to N o v . 3 Jan 1939 1938 1938 996,030 1,217,813 38,125,095 39,212,341 Domestic____________ Foreign government__ Foreign corporate____ $8,340,000 123,000 246,000 $8,130,000 118,000 112,000 $377,490,000 3,678.000 5.825,000 $290,313,000 6,043,000 5,683,000 T otal______________ $8,709,000 $8,360,000 $386,993,000 $302,039,000 Bonds Pittsburgh Stock Exchange O c t . 28 t o N ov. 3, b o t h in c lu s iv e , c o m p ile d fr o m o f f i c i a l sa le s lists Stocks— 13 DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE Y E A R S OLD Par Allegheny Ludlum Steel..* Arkansas Natural Gas_ * _ Armstrong Cork C o _____ * Blaw-Knox C o__________ * Byers (A M) common___ * Carnegie M etals C o______1 Clark (D L) Candy C o_ * _ Columbia Gas & Electric.* Copperweld Steel_______ 1C Friday W e ek 's Range Last Sale o f Prices Price Low H igh 2 2% 38% 12% 15% 65c 5% 7 17% Duqueene Brewing C o ___5 Follansbee Bros pref_ 100 _ Fort Pitt B rew in g..........1 1% Koppers Gas & Coke pf 100 7 7 Lone Star Gas C o _______* 9% Mountain Fuel S u p p ly..10 5% Nat Fireproofing Corp_ * ______ _ __ _ Pittsburgh Brewing Co_ * Pittsburgh Coal pref_ 100 _ Pittsburgh OH & Gas____5 Pittsburgh Plate Glass..2 5 Pittsburgh Screw & B olt.* Ruud Mfg C o___________ * 22% 2% 24% 2% 38% 38% 12% 13% 14% 16% 60c 70c 5% 5% 6% 7% 15% 17% 1 7 y* 18 10% 10% 18 18 1% 1% 77 78 9% 9% 5 5% 2 1% 8% 8% 1% 1% 27 27 1 1 101% 99% 102% 9% 10 9% 6% 6% 6% 1c 2% Shamrock Oil & Gas____ 1 2% 34 34% United Eng & Foundry . .5 55c 55c United States Glass Co_ 1 _ Victor Brewing C o ______ 1 25c 30c 25c 30% 31% Westinghouse Air Brake. . * Westlnghouse El & M fg. 50 113% 113% 115 Unlisted— Pennroad Corp v t c _____1 ...... 2% 2% Sales fo r W eek Shares 257 141 8C 431 652 82C 305 259 430 140 374 110 300 74 1,660 930 200 100 200 100 200 188 517 95 8.000 285 100 100 200 223 70 69 Range Since J a n . Low 14% 2% 33% 8% 7% 25c 5 5% 11% 15 10 6% 90c 55 7% 4 1% 7% Aug Feb Sept Sept Apr June Apr Apr Apr Feb Sept Apr Jan July Apr Apr July Oct 1% 13 Apr 1 Jan 90% Apr 4% Sept 5 May lc 1% 25% 50c 20c 18 83% June Apr Mar July Apr Apr 1, 1939 H ig h 27% 3% 56% 17% 16% 1,2o 6% 8% 17% Jan May Jan Jan NoV Sept Jan Feb Nov 21H 14% 20 1% 79% 9% 5% 3% 9 2 32 1% 116% 11% 8 2c 4 35% 80c 40c 37 119% 1% July! Mar Sept Feb Oct Nov Sept Sept Jan Sept May Mar Sept Feb July Sept Sept Sept Jan Sept Sept 3% Sept * No par value. Course of Bank Clearings Bank clearings this week will show an increase compared with a year ago. Preliminary figures compiled by us based upon telegraphic advices from the chief cities of the country indicate that for the week ended today (Saturday, N o v . 4) clearings from all cities of the United States for which it is possible to obtain weekly clearings will be 6 .0 % above those for the corresponding week last year. Our preliminary total stands at 16 ,537 ,24 0,01 1, against $6,166,72 3,82 5 for the same week in 1938. A t this center there is a gain for the week ended Friday of 3 .7 % . Our comparative summary for the week follows: i. C le a r in g s — R etu r n s by T ele g r a p h W e e k E n d in g N o v . 3 Per C en t Total all cities for week___________ $3,111,984,722 261,292,673 359,000,000 242,347,140 88,618,651 77,300,000 136,277,000 113,969,658 93,723,343 93,026,451 66,289,596 $2,999,645,431 246,993,716 336,000,000 224,484,200 73,139,163 74,000,000 122,137,000 97,250,746 84,998,397 80,661,022 62,391,490 + 3.7 + 5.8 + 6.8 + 8.0 + 21.2 +4.5 + 11.6 + 17.2 + 10.3 + 15.3 +6.2 $4,401,701,165 782,451,410 + 5.5 + 2.7 $5,447,700,009 1,089,540,002 < 1938 $4,643,829,234 803,870,775 Philadelphia__________ ____________ 1939 $5,184,152,575 982,571,250 + 5.1 + 10.9 $6,537,240,011 $6,166,723,825 + 6.0 Complete and exact details for the week covered by the foregoing will appear in our issue of next week. W e cannot furnish them today, inasmuch as the week ends today (Saturday) and the Saturday figures will not be available until noon today. Accordingly, in the above the last day of the week in all cases has to be estimated. In the elaborate detailed statement, however, w'hich we present further below, we are able to give final and complete results for the week previous— the week ended Oct. 28. For that week there was a decrease of 0 .3 % , the aggregate of clearings for the whole country having amounted to $5 ,9 1 6 ,977,963, against $5,933 ,37 7,99 5 in the same week in 1938. Outside of this city there was an increase of 7 .9 % , the bank clearings at this center having recorded a loss of 6 .0 % . W e group the cities according to •the Federal Re serve districts in which they are located, and from this it appears that in the N ew York Reserve District (including this city) the totals record a loss of 5 .5 % , but in the Boston Reserve District the totals register a gain of 5 .0 % and in the Philadelphia Reserve District of 5 .8 % . In the Cleveland Reserve District the totals show an improvement of 1 3 .6 % , in the Richmond Reserve District of 7 .1 % and in the Atlanta Reserve District of 1 3 .8 % . The Chicago Reserve District shows an increase of 1 .9 % , the St. Louis Reserve District of 7 .6 % and the Minneapolis Reserve District of 1 5 .1 % . In the Kansas City Reserve District the totals are larger by 8 .9 % , in the Dallas Reserve District by 9 .7 % and in the San Francisco Reserve District by 1 0 .6 % . In the following we furnish a summary by Federal Reserve districts: ' ONE HUNDRED— The 2916 YEARS OLD Commercial & Financial Chronicle — The volume of transactions in share properties on the New York Stock Exchange for the first ten months of the years 1936 to 1939 is indicated in the following: S U M M A R Y O F B A N K C L E A R IN G S W eek E n d . Oct. 2 8 , 1939 1939 1938 In c.or D ec. F e d e r a l R e s e r v e D is ts . 1st B o s to n _____ 12 cities 2d N e w Y o r k . . 13 “ 3d P h llad elp h ia lO “ 4th C l e v e l a n d .. 5 “ 6th R i c h m o n d .. 6 “ 6 th A t la n t a ____ 10 “ 7th C h ica g o ____ 18 " 8 th St. L ou is___ 4 " Oth M in n ea p olis 7 " 10th K ansas C ity 10 “ 11th D a lla s ........... 6 “ I2 th San F ra n ___ 11 • • S s % 274,152,348 3,383,698,701 406,423,272 303,349,396 143,421,591 180,324,413 493,034,968 158,566,671 112,764,491 137,513,918 72,329,747 251,398,444 261,079.637 3,579,799,388 384.312,812 267.080,779 133,939,507 158,431,095 483,831,523 147,387,041 97,939,119 126,289,159 65,920,668 227,367,267 + 5 .0 —5.5 + 5.8 + 13.6 + 7.1 + 13.8 + 1.9 + 7.6 + 15.1 + 8 .9 + 9 .7 + 10.6 270,693,246 3,510,863,616 381,634,691 321,773,306 142,676,250 157,159,769 506,777,102 149,330,89 + 112,995,966 131 691,306 69,119,735 251,144,536 276,296,869 3,534,912.078 360,322.597 302,912,728 130,388,375 151,307,521 493,976,935 152,512,658 101,682,264 128,760,533 65,541,886 231,800,399 T o t a l _________113 cities O u tsid e N . Y . C it y _____ 5,916,977.96: 2,647,813,950 5.933,377,995 2,454,428,496 —0.3 + 7 .9 6,005,865.467 2,614,043,165 5,930,414,843 2,507,741,423 C a n a d a __________ 32 cities 358.143,498 359,817,073 —0.5 376.0n 120 343,428,616 1936 1937 5 Nov. 4, 1939 $ 1939 N o . Shares 1938 N o . Shares 1937 N o . Shares 1936 N o . Shares 2 5 ,1 8 2 ,3 5 0 1 3 ,8 73 ,32 3 2 4 ,5 6 3 ,1 7 4 2 4 ,1 5 1 .9 3 1 14.5 26 ,09 4 2 2 ,9 9 5 ,7 7 0 5 8 ,6 7 1 ,4 1 6 5 0 ,2 4 8 .0 1 0 5 0 ,3 4 6 ,2 8 0 6 7 ,2 0 1 ,7 4 5 6 0 ,8 8 4 ,3 9 2 5 1 ,0 1 6 .5 4 8 F irst q u a r t e r _______________ 6 3 ,6 18 ,84 7 6 1,6 7 3 .7 9 5 159 ,26 5,7 06 1 7 9 ,10 2,6 85 M o n t h o f A p r il_______________ M a y _______________ J u n e . .................. ....... 2 0 ,2 4 6 ,2 3 8 1 2,9 35 ,21 0 11,9 63 ,79 0 1 7 ,1 19 ,10 4 1 4,0 04 ,24 4 2 4,3 6 8 ,0 4 0 3 4 ,6 0 6 ,8 3 9 18,5 49 ,18 9 16,4 49 ,19 3 3 9 ,6 0 9 ,5 3 8 2 0 ,6 1 3 ,6 7 0 2 1 ,4 2 8 ,6 4 7 M o n t h o f J a n u a r y ____________ . F e b r u a r y ______ M a r c h _____________ S e co n d q u a r te r____________ We also furnish today a summary of the clearings for the month of October. For that month there was a decrease for the entire body of clearing houses of 5 .8% , the 1939 aggregate of clearings being $25,041,170,281 and the 1938 aggregate $26,572,177,720. In the New York Reserve Dis trict the totals fell behind by 5 .6% , but in the Boston Reserve District the totals are larger by 5.6% and in the Philadelphia Reserve District by 6.5% . The Cleveland Reserve District enjoys a gain of 14.5%, the Richmond Reserve District of 5.9% and the Atlanta Reserve District of 11.8% . In the Chicago Reserve District the totals record a gain of 6.8% , in the St. Louis Reserve District of 10.2% and in the Minneapolis Reserve District of 10.9%. In the Kansas City Reserve District the increases is 11.4%, and in both the Dallas and San Francisco Reserve Districts 10.7% . 4 5 ,1 4 5 ,2 3 8 5 5 ,4 91 ,38 8 6 9 ,6 0 5 ,2 2 1 8 1 ,6 5 1 ,8 5 5 Six m o n th s _________________ 108 ,76 4.0 85 117 .16 5.1 83 2 2 8 ,8 7 0 ,9 2 7 2 6 0 ,7 5 4 ,5 4 0 1 8,0 6 7 ,9 2 0 17,372,781 5 7,0 9 1 ,4 3 0 3 8 ,7 7 3 ,5 7 5 2 0 .7 2 8 ,1 6 0 2 3 ,8 2 6 ,9 7 0 2 0 ,7 2 2 ,2 8 5 17,2 12 ,55 3 3 3,8 5 4 ,1 8 8 3 4 ,7 9 3 ,1 5 9 2 6 ,5 6 3 ,9 7 0 3 0 ,8 7 2 ,5 5 9 M o n t h o f J u ly -----------------------A u g u s t _____________ S e p te m b e r_________ T h ir d q u a r t e r ______________ 92,5 32 ,13 1 8 3 ,3 2 8 ,7 0 5 7 1 ,7 8 9 ,0 2 6 9 2 ,2 2 9 ,6 8 8 N in e m o n t h s _______________ 2 0 1 ,2 9 6 ,2 1 6 2 00 ,49 3,8 88 3 00 ,65 9,9 53 3 5 2 ,9 8 4 ,2 2 8 M o n t h o f O c t o b e r ......... ............ 2 3 ,7 3 4 ,9 3 4 4 1 ,5 5 8 ,4 7 0 5 1 ,1 27 ,61 1 4 3 ,9 9 5 ,2 8 2 The following compilation covers the clearings by months since Jan. 1, 1939 and 1938: M O N T H L Y C L E A R IN G S C learings. Total A ll C learings Outside N ew York, M o n th 1939 1939 1938 1938 October, 1939 1938 F e d e r a l R e s e r v e D is t s . 1 s t B o s t o n ______ 1 4 c it i e s 2d N e w Y o r k . . 15 “ 3d P h ila d e lp h ia ! 7 “ 4 t h C le v e la n d . . 1 8 “ 5 th R ic h m o n d - - 9 “ 6 t h A t l a n t a _____ 16 “ 7 t h C h i c a g o _____3 1 " 8 t h S t . L o u i s ___ 7 “ 9 th M ln n e a p o lis l6 “ 1 0 t h K a n s a s C i t y 18 “ 1 1 t h D a l l a s . ___ 11 " 1 2 t h S a n F r a n ___ 19 “ $ 1,192,583,542 13,0.9,532,408 1,792,137,573 1,435,889,487 684,213,406 841,919,666 2,199 162,617 720,091,558 520,389.064 845,445,118 590,672,715 1,179,133,127 $ 1,129,607,934 15,568,693,603 1,682,456,907 1,253,875,964 645,973,267 752,777,196 2,058,759,916 653,152,060 469,277,280 758,954,489 533,657,629 1,064,991,475 T o t a l __________191 c it ie s O u t s id e N . Y . C i t y ______ 25,041,170,281 12,514,369,766 26,572,177,720 11,484,650,067 C a n a d a ___________ 3 2 c it ie s 1.631,492,076 1,672,195.075 October, October, 1937 In c.or D ec. 1936 $ % 1,170,684,327 + 5.6 — 16.2 15,423,370,609 1,768,276,002 + 6 .5 + 14.5 1,505,403,922 704,220,253 + 5 .9 773,273,440 + 11.8 2,283,619,582 + 6 .8 693,973,685 + 10.2 538,336,549 + 10.9 + 11.4 838,752,482 553,285,226 + 10.7 1,268,773,190 + 10 7 $ 1,252,086,668 16,582,801,138 1,821,536,338 1,433,748,379 691,003,959 754,915,078 2,309,008,472 734,417,559 508,104,831 809,587,143 527.555,245 1,232,466,480 — 5.8 + 9 .0 27,521,969.267 12,656,979,589 28,657,231,290 12,622,761,358 — 2.4 1,641.113,815 1,837,016,465 We append another table showing the clearings by Federal Reserve districts for the ten months for four years: 10 M on th s 1939 F ederal Reserve D ists. 1st 2d 3d 4 th 5 th 6 th 7 th 8 th 9 th 10th 1 1 th 1 2 th B o s t o n ______ 14 c it ie s ** “ C le v e la n d ..1 8 " R ic h m o n d .. 9 “ A t l a n t a _____ 16 “ C h i c a g o _____ 3 1 “ S t . L ou is ___ 7 “ M in n e a p o lis l6 “ K a n s a s C i t y 18 “ D a l l a s _______11 " S a n F r a n ___ 1 9 “ New Y o r k . 1 5 P h ila d e l p h i a l 7 10 M on th s 1938 In c.or D ec. 10 M on th s 1936 s s % S % 10,996,658,744 9,974,962,251 + 10.2 11,745,095,551 11,199,783,527 141,625,782.708 138,683,641,312 + 2.1 16.3,068,100,222 162,339,352,625 17.071,133,8+9 15,506,475,502 + 10.1 17,524,422.275 16,187,183,907 + 9.4 14,841,397,927 12,549,368,471 12,650,456,903 11,566.029,09c 5,527.154,772 + 7.2 6.324,143.092 5,604,647,684 5.922,836,068 6.471,295.605 + 11.5 7,061,931,134 7,214.336,932 6,027,465,928 20,195,527.421 18,678.123,805 + 8 .1 22,878,028,105 20,438,727,300 6,059,198.499 5,605,653,288 6,443,526,885 5,866,473,317 + 8 .1 4,775,969,175 + 5.8 4,319,016,023 4,258.117,321 4,504,629,578 7,135,824.564 + 5 .9 8,416,137,365 7,553,891,705 7,568,880,326 5,032,085,206 5,134.634.969 + 8.7 4,235,532.564 4,721.992,661 10,613,204,366 10,036,893,227 + 5.7 11.964,282,648 10,726,936,575 T o t a l ..................191 c it ie s 249.542,291,732 238.166,373.401 O u t s id e N . Y . C i t y ........... 112,546,532.523 104,032,520,849 C a n a d a ___________ 3 2 c it i e s 10 M on th s 1937 U ^ o 721.747 14.016.656,398 + 4 e 280,075,149,585 267,063,368,247 + 8 .2 122,531,041,173 109,692,593,250 -4-3.0 15,581.786.987 15,705,307,495 Our usual monthly detailed statement of transactions on the New York Stock Exchange is appended. The results for October and the ten months of 1939 and 1938 follow: M on th o f October T en M on th s D escrip tion 1939 1938 1939 . + 4 .9 + 8 . 6 3 2,1 4 2 ,0 4 8 ,5 3 5 3 0 ,6 4 9 ,6 1 4 ,1 1 5 A p r ___ 2 4 ,1 5 6 ,2 5 1 ,6 8 4 2 3 ,9 6 8 ,2 5 6 ,6 8 2 + 0 .8 1 0 ,7 73 ,25 3,2 9 7 1 0 ,2 68 ,03 3,7 4 3 + 4 .9 M a y . - 2 4 ,6 3 9 ,2 7 1 ,3 5 0 2 2,3 51 ,13 5,4 3 1 + 10.2 1 1 ,1 59 ,25 1,0 8 2 9 ,9 6 7 ,9 8 4 ,3 6 4 + 12 .0 J u n e - - 2 5 ,5 0 1 ,7 3 9 ,5 1 6 2 6,2 86 ,11 8,1 0 1 — 3 .0 1 1 ,4 44 ,44 6,3 7 2 1 0 ,5 3 4 ,7 1 6 ,2 6 0 + 8 .6 2 d q u . 7 4 ,2 9 7 ,2 6 2 ,5 5 0 7 2 ,6 0 5 ,5 1 0 ,2 1 4 + 2 .3 3 3 ,3 76 ,95 0,7 5 1 3 0,7 7 0 ,7 3 4 ,3 6 7 + 8 .5 6 m o s . 149288 8 4 6 ,30 5 1 41 67 1 74 1 ,9 4 7 + 5 .4 6 5 ,5 1 8 ,9 9 9 ,2 8 6 6 1,4 2 0 ,3 4 8 ,4 8 2 + 6 .7 J u ly . . 2 3 ,8 4 8 ,8 5 3 ,2 0 8 2 3.9 55 ,57 8,2 0 4 — 0.4 1 1 ,1 97 ,20 0,6 3 3 1 0 ,4 8 6 ,8 4 1 ,0 5 0 + 6 . 8 A u g . . 2 4 ,9 6 1 ,7 9 6 .4 3 6 2 1 ,9 45 ,17 3,9 2 2 + 13.7 1 1,3 24 ,46 5,3 4 6 10 1 90 .11 9,9 76 + 11.1 S e p t . . 2 6,4 0 1 ,6 2 5 ,5 0 2 2 4 ,0 2 1 ,7 0 1 ,6 0 8 + 9 .9 1 1 ,9 91 ,49 7,4 9 2 1 0 ,4 5 0 ,5 6 1 ,2 7 4 + 14.7 3 d q u . 7 5 ,2 1 2 ,2 7 5 ,1 4 6 6 9 ,9 2 2 ,4 5 3 ,7 3 4 + 7 .6 3 4 ,5 13 ,16 3,4 7 1 3 1,1 2 7 ,5 2 2 ,3 0 0 + 1 0 .9 9 m o s . 2 24 50 1 12 1 ,4 5 1 2 11 59 4 19 5 ,6 8 1 + 6 .1 1 0 0 0 3 2 1 6 2 ,7 5 7 9 2,5 47 ,87 0,7 8 2 + 8 .1 O c t ___ 2 5 ,0 4 1 ,1 7 0 ,2 8 1 2 6,5 7 2 ,1 7 7 ,7 2 0 — 5 .8 1 2,5 14 ,36 9,7 6 6 1 1,4 84 ,65 0,0 6 7 + 9 .0 The course of bank clearings at leading cities of the country for the month of October and since Jan. 1 in each of the last four years is shown in the subjoined statement: B A N K C L E A R IN G S A T L E A D IN G C IT IE S IN O C T O B E R (0 0 0 ,0 0 0 ----------M on th o f October----- — ----------------J a n . 1 to Oct. 31om itted) 1938 1936 1939 1938 1939 1937 1937 1936 $ $ $ S $ $ $ $ N e w Y o r k _______ __.1 2 ,5 2 7 15,088 14,865 1 6,0 34 136,996 134,134 157,544 157,371 C h ic a g o ____________ . 1,351 1,320 1,440 1,474 12,588 11,936 14,302 12,796 B o s to n _____________ . 1,0 1 3 992 961 1 ,069 9,3 8 6 8 ,4 5 1 10,018 9,6 0 8 1,591 16,193 P h ila d e lp h ia _______. 1,7 0 4 1 ,668 1,728 1 4,662 16,572 1 5,303 S t. L o u is __________ . 411 376 409 4 14 3,6 7 7 3 ,4 4 4 4 ,0 3 8 3 ,6 8 0 473 P itts b u rg h _________ . 555 599 613 4 ,8 9 0 4 ,5 2 9 6 ,2 4 9 5 ,4 0 0 603 660 6,0 1 3 San F ra n c is c o _____ . 686 658 5,7 6 2 6 ,5 7 6 5 ,9 1 4 337 3 00 321 328 2,9 1 8 B a lt im o r e __________. 2 ,6 7 9 3 ,0 3 7 2 ,7 3 6 2,431 270 235 274 260 2 ,2 8 3 2 ,7 1 6 2 ,3 3 8 C i n c i n n a t i - - ___ _. 421 K a n sa s C i t y _______. 438 376 411 3 ,8 9 5 3 ,6 4 5 4 ,4 7 2 3 ,9 3 0 408 404 C le v e la n d __________. 466 466 4 ,0 2 4 3,5 2 7 4 ,2 8 8 3 ,4 5 2 322 296 346 322 M in n e a p o lis .............. 2 ,8 3 0 2,6 8 8 3,0 7 8 2 ,7 3 4 199 N e w O rlean s______ . 187 195 182 1 ,549 1,623 1,674 1,381 458 394 D e t r o i t ________ .. . 466 471 4 ,0 8 3 4 ,3 6 4 3 ,5 3 6 4 ,9 2 8 144 150 155 156 1,472 1,488 1 ,324 L o u is v ille __________. 1,327 131 O m a h a _____________. 142 144 140 1,284 1,191 1,348 1,368 50 48 52 53 473 433 P r o v id e n c e ________ 447 425 84 93 91 95 865 913 M ilw a u k e e ________ 812 8 45 163 B u f f a lo ____________ . 156 137 161 1,354 1 ,2 6 5 1,596 1,382 112 123 1,111 S t. P a u l___________ . 126 126 1 ,0 8 5 1 ,036 1,0 4 9 142 154 154 145 D e n v e r ____________ 1,286 1,207 1,383 1 ,1 9 5 78 81 I n d ia n a p o lis______ 86 79 796 723 801 697 213 199 1,4 9 5 201 220 1 ,6 8 0 1,613 1,7 3 5 R ic h m o n d _______ . M e m p h is __________ 146 126 128 159 843 772 847 802 173 153 175 167 1,517 1,413 1 ,682 1,429 S e a ttle _____________ . 74 65 74 74 634 S a lt L a k e C i t y ___ 567 703 610 51 49 47 51 474 H a r t fo r d ___________ 450 517 490 T o t a l ____________ .2 2 ,3 1 7 2 4,0 88 2 4,7 57 2 5,9 69 2 2 5 ,3 3 5 215 ,62 7 254 ,03 8 2 4 4 ,1 2 6 O th er cit ie s _______ . 2 ,7 2 4 2 ,4 8 4 2 ,7 6 5 2 ,6 8 8 2 4,2 07 2 2 ,5 3 9 2 6 ,0 3 7 2 2 ,9 3 7 1938 2 3 ,7 3 4 ,9 3 4 4 1 ,5 5 8 ,4 7 0 2 2 5 ,03 1,1 50 2 4 2 ,0 5 2 ,3 5 8 S to ck s, nu m b er o l shares Bonds R a ilro a d & m is ce ll. b on d s $ 134,816,000 $ 15 5,6 98 ,00 0 $ 1 ,2 10 ,56 5,0 0 0 $ 1 ,1 6 8 ,2 6 1 ,0 0 0 206 .55 1.0 00 2 1 .0 7 0 .0 0 0 2 1 ,8 0 8 ,0 0 0 2 0 1 .7 1 5 .0 0 0 F o re ig n g o v t , b o n d s _____ 7 ,6 7 3 ,0 0 0 3 0 1 .18 2.0 00 1 4.2 03 .00 0 1 1 6 .41 2.0 00 U . S. G ov ern m en t b o n d s . T o t a l b o n d s _____ __ % + 2 .3 + 6 .1 + 6 .5 1st q u . 7 4 ,9 9 1 .5 8 3 ,7 5 5 6 9 ,0 6 6 ,2 3 1 ,7 3 3 October, $ $ S $ % J a n ___ 2 5 ,6 9 1 ,1 4 8 ,3 5 6 2 4,2 4 0 ,6 1 1 ,3 1 9 + 6 .0 11,075 ,26 5,7 0 2 1 0 ,8 28 ,44 9,0 7 2 F e b . . . 2 1 ,8 4 0 ,4 8 0 ,6 3 3 1 9 ,6 31 ,51 9,8 4 0 + 1 1.3 9 ,6 1 7 ,7 6 5 ,2 6 8 9 ,0 6 8 ,7 3 9 ,1 5 3 M a r - . 2 7 .4 5 9 ,9 5 4 ,7 6 6 2 5 ,1 9 4 ,1 0 0 ,5 7 4 + 9 .0 1 1,4 49 ,01 7,5 6 5 1 0,7 52 ,42 5,8 9 0 $ 170,089,000 $ 1 8 5,1 79 ,00 0 $1,718 ,29 8,0 0 0 $ 1,4 86 ,38 8,0 0 0 T o t a l a ll_________.2 5 ,0 4 1 2 6 ,5 7 2 2 7 ,5 22 2 8,6 57 249 ,54 2 2 3 8 ,1 6 6 2 8 0 ,0 7 5 2 6 7 .4 6 3 O u tsid e N e w Y o r k .1 2 ,5 1 4 1 1,4 85 12,6 57 12,623 112,547 104,033 122,531 109,693 We now add our detailed statement showing the figures for each city separately for October and since Jan. 1 for two years and for the week ended Oct. 28 for four years: CLEARINGS FOR OCTOBER, SINCE JANUARY 1, AND FOR WEEK ENDING OCT. 28 M on th o f October T en M on th s Ended O ct. 31 W eek Ended Oct. 28 Clearings at— 1939 F ir s t F e d e r a l R e s e M a in e — B a n g o r _______ P o r t l a n d _______ _____ M a s s .— B o s t o n ________ F all R iv e r ___________ L o w e ll____________ __ N e w B e d fo r d ________ S p r in g fie ld ___________ W o r c e s t e r ____________ C o n n .— H a r t f o r d _____ N ew H a v e n _________ R . I . — P r o v id e n c e ____ N . H .— M a n ch e ste r___ T o t a l (14 c it ie s )_____ 1938 I n c . or D ec. 1939 % $ 1938 I n c . or D ec . 1939 1938 I n c . or D ec . 1937 S % S S % S 1936 $ $ rv e D i s t r i c t — B o s t o n — 2 ,5 6 2,1 67 2 ,5 2 9 ,6 1 7 9 ,0 6 6 ,4 0 9 9 ,7 8 9,6 17 1 ,0 1 2.7 95 ,83 0 9 6 0 ,6 0 0 ,5 2 7 3 ,0 0 8 ,2 1 8 4 ,2 0 2 ,7 9 6 1 ,8 3 5 ,O'M 1 ,6 0 5 ,3 8 0 2 ,1 2 0 ,2 3 5 2 ,2 5 4 ,2 8 7 4 ,0 0 5 ,7 1 1 3 ,3 8 5 ,4 8 7 1 5 ,1 0 0 ,2 3 0 1 5 ,2 18 ,47 6 1 0 ,0 53 ,22 0 8 ,9 8 0 ,3 4 7 4 7,3 9 4 ,0 1 0 5 1,2 0 0 ,9 7 0 19.2 12 ,88 2 1 8 ,4 38 ,43 0 6 .9 7 7 .9 0 0 6 .7 3 0.4 00 4 8 ,1 5 2 .0 0 0 5 0 .2 7 1 ,1 0 0 2 .4 2 5 ,7 6 0 2 ,2 3 7 ,3 3 6 + 1 .3 + 8 .0 + 5 .4 + 3 9.7 + 14.3 — 5 .9 + 18.3 — 0 .8 + 11.9 + 8 .0 + 4 .4 + 3 .7 + 4 .4 + 8 .4 2 2 ,1 0 8 ,6 0 5 8 8 ,3 4 9 ,9 1 0 9 ,3 8 5 ,9 6 0 .7 4 9 2 9 ,8 7 7 ,5 9 5 14,9 51 ,80 1 1 8 ,1 5 7 ,6 0 3 2 9 ,4 9 0 ,7 6 4 1 34 ,5 3 1 ,0 4 3 8 1 .4 1 6 ,7 3 8 4 7 4 ,1 0 0 ,3 5 0 1 8 0 ,43 1,8 53 6 5 ,9 9 7 ,8 0 0 4 4 8 ,6 3 7 ,9 0 0 2 4 ,6 4 6 ,0 3 3 2 2 ,6 4 7 ,1 4 8 8 1 ,2 4 8 ,2 7 9 8 ,4 5 0 ,6 3 9 ,3 8 1 2 6 ,1 7 5 ,8 9 9 1 5 ,6 2 0 ,6 6 7 1 6,5 5 4 ,6 2 5 2 7 ,6 6 0 .6 6 2 128 ,30 7,1 81 7 6 ,9 9 1 ,7 1 7 4 5 0 ,3 8 4 ,2 5 3 1 6 8 ,1 7 0 ,4 0 0 6 3 ,6 6 3 ,7 0 0 4 2 4 ,9 1 8 ,3 0 0 2 1 ,9 8 0 ,0 3 9 — 2 .4 + 8 .7 + 11.1 + 14.1 — 4 .3 + 9 .7 + 6 .6 + 4 .9 + 5.7 + 5 .3 + 7 .3 + 3 .7 + 5.1 + 12.1 4 7 0 ,8 3 5 1 ,9 6 3 ,2 0 9 2 3 3 ,9 7 2 ,5 5 7 8 00 ,40 8 450 ,73 7 1,85 5,5 71 2 2 2 ,4 0 9 ,4 9 5 658,411 + 4 .5 + 5 .8 + 5.2 + 21.6 516,069 2 ,0 1 5,5 83 2 32 ,6 5 9 ,5 4 2 672 ,57 8 580 ,36 8 2 ,3 8 2 ,0 8 5 2 4 0 ,0 7 6 ,6 7 1 6 70 ,31 8 4 4 2 ,81 5 8 7 7 ,09 7 3 ,3 4 5 .5 8 5 2 ,1 7 1 ,6 9 4 13,6 36 ,83 1 3 ,7 3 9 ,5 8 4 6 44,836 8 0 5 .45 5 3 ,4 4 8 ,3 2 4 2 ,007,001 1 1 ,4 74 ,33 3 4 ,0 4 7 ,3 1 9 — 31.3 + 8 .9 — 3 .0 + 8 .2 + 18.8 — 7.6 446,991 770,741 3 ,6 9 8 ,8 7 4 2 ,2 5 2 ,0 0 3 11,520,801 3,669,001 4 3 1 ,1 7 8 8 7 6 ,8 6 4 3 .2 2 5 ,4 1 8 2 ,3 2 4 ,2 9 7 1 0 ,7 7 2 ,1 4 9 3 ,8 4 6 ,3 1 8 1 2 ,2 4 1 ,3 6 6 490 ,43 3 1 2 ,7 2 0 .2 0 0 557 ,95 5 — 3 .8 — 12.1 11,8 96 ,20 0 579,863 1 0 ,5 2 3 .0 0 0 5 88 ,20 3 1 ,1 2 9 ,6 0 7 ,9 3 4 + 5 .6 1 0 ,9 9 6 ,6 5 8 ,7 4 4 9 ,9 7 4 ,9 6 2 ,2 5 1 + 1 0.2 2 7 4 ,1 5 2 ,3 4 8 2 6 1 .0 7 9 ,6 3 7 + 5 .0 2 7 0 ,6 9 8 ,2 4 6 2 7 6 ,2 9 6 ,8 6 9 1 ,1 9 2 ,5 8 3 ,5 4 2 $ Volume 149 ONE HUNDRED— The Commercial & Financial Chronicle— YEARS C T .E A R T V n n M on th o f October 1939 S econ d F ederal R es N . Y . — A lb a n y ________ B in g h a m to n _____ __ B u f fa lo _______________ E l m i r a ________ ______ J a m e s to w n ___________ N e w Y o r k ____ ______ R o c h e s t e r ____________ S y ra cu se _____________ W e stch ester C o u n t y . C o n n .— S ta m fo rd ______ N . J .— M o n t c la ir _____ N e w a rk _____________ N o r th e rn N ew Jersey O ra n g es___ __________ T o t a l (15 c itie s )_____ 1938 T en M on th s Ended Oct. 31 I n c . or D ec . 1939 % S OLD W eek Ended Oct. 28 1938 I n c . or D ec. 1939 1938 I n c . or D ec . 1937 1936 S % S S % S $ S S ir v e D is t r ic t — N e w Y o r k — 3 8 , 9 ;! / , 04b 4 1 ,5 4 8 ,2 4 5 5 ,0 3 3 ,2 1 2 4 ,4 8 2 ,7 2 6 1 56 ,29 7,8 45 137 ,21 5,5 71 2 ,4 6 4 ,0 9 8 2 ,3 5 2 ,6 0 8 3 ,9 2 2 ,2 3 3 3 ,1 2 0 ,3 4 9 1 2 ,5 26 ,80 0,5 1 5 15,087,527,653 3 7,8 8 8 ,7 7 2 3 6 ,8 6 6 ,4 3 5 2 0,5 3 5 ,8 7 0 1 8,9 7 7 ,3 7 3 3 ,8 1 0 ,6 4 8 3 ,5 8 8 ,7 9 9 1 8 ,3 23 ,74 6 1 8 ,0 4 4 ,0 6 9 1 8 ,7 84 ,99 6 1 8 ,1 0 9 ,9 4 8 1 ,8 6 6,3 77 1 ,8 8 2,3 91 7 9,8 4 0 ,2 7 6 7 1 ,4 3 1 ,2 3 0 1 2 2 ,07 5,8 56 1 19 ,9 3 4 ,4 5 6 2 ,8 7 0 ,9 1 8 3 ,6 1 1 ,7 5 0 — 6 .2 4 0 0 ,3 7 6 ,3 1 0 4 3 1 ,6 2 9 ,9 9 7 + 12.9 4 9 ,9 1 1 ,1 9 8 50,012,457 + 13.9 1 ,3 5 4 ,4 /1 ,6 6 0 1 ,2 6 4 ,7 1 9 ,8 1 5 + 4.7 2 1 ,9 1 8 ,0 7 0 2 2 ,3 8 9 ,4 9 0 + 2 5.7 3 3 ,1 3 5 ,0 7 4 2 9 ,5 6 4 ,5 5 0 — 17.0 .3 6 ,9 9 5 ,7 5 9 ,2 0 9 1 3 4 ,13 3,8 52 ,5 52 + 2 .8 3 4 1 ,4 3 4 ,4 4 / 3 1 9 ,9 7 5 ,8 0 6 + 8 .2 1 8 2 ,4 4 5 ,9 3 8 1 7 5 ,7 9 3 ,4 3 9 + 6 .2 3 2 ,5 2 2 ,1 2 8 3 5 ,4 /3 ,8 4 6 + 1.6 1 5 2 ,9 3 8 ,2 9 0 1 64 ,48 9,4 00 + 3.7 1 8 0 ,1 6 4 ,6 4 3 1 68 ,64 3,0 87 — 0 .8 1 6 ,8 2 0 ,1 8 5 1 8,0 89 ,95 2 + 11.8 7 53 ,44 1,3 10 7 3 9 ,6 7 0 ,4 0 6 + 1 .8 1 ,1 0 8 ,9 3 7 ,9 9 2 1 ,0 6 2 ,2 1 0 ,8 6 2 — 2 0 .5 3 6 ,1 7 1 ,1 1 8 3 2 ,4 8 0 ,7 7 7 — 7.2 — 0 .2 + 7.1 — 2 .1 + 12.1 + 2.1 + 6.7 + 3 .8 + 9.1 + 7 .6 + 6 .8 + 7 .4 + 1.9 — 4 .2 — 10.2 11,8 64 ,49 2 9 ,1 7 4 ,8 0 5 923,588 746,249 3 3 ,8 0 0 ,0 0 0 3 0 ,0 0 0 ,0 0 0 657 ,63 6 458 ,52 8 670,541 737 ,70 8 3 ,2 6 9,1 64 ,01 3 3 ,4 7 8 ,9 4 9 ,4 9 9 7 ,3 6 0 ,5 3 9 8 ,8 4 5,9 21 5 ,2 2 8 ,4 4 4 4 ,1 2 6 ,5 2 3 1 3,039,532,40S 1 5,5 68 ,69 3,6 0 3 — 16.2 1 41 ,62 5,7 82 ,7 08 1 38 ,68 3,6 41 ,3 12 + 2 .1 3 ,3 8 3 ,6 9 8 ,7 0 4 3 ,5 7 9,7 99 ,38 8 T h i r d F e d e r a l R e s e rv e D is t r ic t — P h il a d e lp h ia P a .— A lto o n a __________ 1 ,9 5 9,8 15 1 ,691,907 + 15.8 B e th le h e m ___________ y 2 , 393,282 y 2 , 236 ,50 0 + 7 .0 C h e s te r______________ 1,79 3,1 49 2 ,1 2 8 ,9 9 7 — 15.8 9 ,2 3 8 ,1 4 3 11,9 85 ,18 1 — 22.9 6 ,2 9 1,8 47 5 ,9 2 8 ,1 8 2 L a n c a s te r____________ + 6.1 L e b a n o n ___ _______ 2 ,2 5 9 ,3 8 1 2 ,0 9 5 ,2 0 4 + 7.8 N o r r i s t o w n ___ ______ 2 ,0 5 2,0 01 + 0 .4 2 ,0 4 4 ,7 3 1 1 ,7 0 4,0 00 ,00 0 1 ,5 9 1 ,0 0 0 ,0 0 0 P h ila d elp h ia _________ + 7.1 R e a d in g ______________ 7 ,0 4 9,2 82 6 ,6 4 8 ,9 3 s + 6 .0 S cr a n to n _____________ 9 ,8 1 8,6 38 9 ,3 6 8 ,1 2 9 + 4 .8 W ilk e s -B a rr e ________ • 4 ,7 1 5 ,8 8 6 5 ,1 6 8 ,1 8 0 — 8 .8 Y o r k _________________ 5 ,3 0 2,4 17 6 ,2 7 1,8 91 — 15.5 1,47 2,3 56 1 ,3 6 8 ,6 5 5 + 7.6 6 21,929 609,823 + 2 .0 2 ,8 3 5,7 41 2 ,8 7 0 ,8 6 8 — 1.2 D e l.— W i lm in g t o n ____ 1 5 ,4 29 ,20 6 + 8 .9 14,1 74 ,28 1 N . J .— T r e n t o n ________ 14,9 04 ,50 0 1 6 ,8 6 5 ,4 4 0 — 11.6 2917 (Continued) 1 8 ,6 3 5