Full text of Commercial and Financial Chronicle : November 8, 1945, Vol. 162, No. 4436, Section 1

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LIBRARY

NOV 9

Edition

ESTABLISHED

O
YEARS

1945

In 2 Sections

1

Section

-

Reg. U. S.. Pat. Office

Volume 162

Number 4436

New

«'

..

Wages and Prices,
L

'•

:

•

•

:•

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.'•/'J*)',?

1

'\t~

T?

J* -I }'

-

V;

Small Business and:

The Minimum

President Calls for labor and Management to -Handle Their Affairs in

Secretary of Commerce

Traditional Democratic Way So That Reconversion Can Proceed and

.y

■'■■■

'■?''.'!'hH'$"• % v$?' '.v-V -I'*.'

%''y«

Copy

a

#'•

"f

■*'

By HENRY A. WALLACE*

/

^

Price 60 Cents

":u:/*

End Industrial Strife: Truman

Crucial Problem
.

7 .V:, "".v.."*.

York, N. Y.; Thursday, November 8, 1945

Wage

| By FREDERIC EDWARD LEE

V

;

President's Wartime Powers Be Given 'Up,

Professor of Economics, University of Illinois
Secretary Wallace/in Pointing Out
Says Contracts Must Be
That the -Final Objective of the Lived
Up to and There Must Be Responsibility and Integrity on Both Holding That the Effect of the Pepper Bill to Raise Minimum Wage Rates
Labor-Management Conference Is Sides. Holds Substitute Mast Be Found for
Will Be Calamitous if Passed, Professor Lee Points Out That
Gainfully
Jurisdictional Disputes and
Industrial Peace; Maintains That
Fiinployed Affected Will Be in Small Businesses, Which Will Be ihe
Hits Delaying Tactics of
Management That "Looks Upon Labor Rela¬
There Are Clear Indication! That

Sufferers.

Basic

Wages Can Be Raised Sub-

tions

as

Stepchild of Its Business/1 Points Out That High Production

a

Is

stantially in Many Industries With*
Essential; to prosperity and Cautions "That no Realist Can Expect
out Increasing Prices.
the Millennium of a No-Strike, No-Lock-Out Era at Once."
- - '

*■

-

t.-

I

am

and

glad to join the President
Secretary of Labor in

welcoming
All

of

Your

this conference.

you to

you

are

influence,
to

In

the

,

of

men

wide

reach

Washington
meeting
an

\

ity

try t a
of

action

-w. no

to

pressure."

af-

over-

look. Your

re- :;

sponsibility

|and your,op¬
portunity is to
prove

%

your own

dustrial

on

Henry A. Wallace

'V.. •
^
mutual understanding-?

reason

\

rather than force;

^An address by Secretary Wal¬
at the National Labor-Man¬

lace

agement Conference, Washington,
X*. C., Nov. 5,

1945.

(Continued on page 2238)
f, Index of Regular Features
page

that

on

2248.

President Truman

should not be regarded as "a step¬
child of business" and emphasized
the

necessity that contracts en¬
tered upon should be lived up to,
and
that
jurisdictional disputes
The text of the ad¬

dress follows:

Members of the Labor-Manage¬
ment Conference:
In

radio

a

broadcast

American

people
night, I said:
"I

the

to

last

Tuesday

that

if

and

management

each

labor

other, with the
they have a common

that

Buy

With all the current
agitation in labor and Administration circles
an increase in the minimum
wage under the Fair Labor

in favor of

(Continued

Standards Act....

75

to

will

on

be

so

wise

revealed

his

of

in

credo

ap¬

numerous, that it
indicate them in

to

question form—as follows:
(1) First it is stated that

"we

should keep 60 million jobs as the
symbol, if not the arithmetically
exact

of

synonym,

ployment

we

the

full

em¬

have."

can

However,
Wallace

subsequently,
Mr.
states: "If -by
1950, 60

million people in the U. S. have
jobs and are producing and con¬
suming
$200
billion
worth
of
goods and services a year, we can
be certain the nation is in

a

pretty

approach
realization

page

goal,

2229)

portant that the accuracy of this
"yardstick" be established?

♦"Sixty Million Job! " by Henry
A. Wallace, Simon & Schuster,
$2.

the

under

Pepper

Bill,

one' im-

'

portant. factor

-

to have

seems

been

largely I

overlooked.
W ha t!: effect
will this

legisa t i o n
i f
passed, have

1

,

thousands

(2) The estimate of 60 million
jobs is based upon the assump¬
tion

that

there

will

be

62

over

million people available for work

by

1950
2

to

(page

million

4)

may

and that iy2
be unemployed

"due to technological progress, to
seasonal
unemployment in con¬
struction

other

or

trades, and to
normal changes from one
job to
another" (page 14).
In fact
on
this
the

basis

it is suggested that "if
total of civilian and
military

jobs falls below 59 million, then
and

if

real

the

million

for

cause

total

below

(Q) How

■7v.'-v-v':

Successors

to '■

LILIENTHAL

HIESCH,

Si

CO.

f \

Members New York Stock Exchange
and

other

London

•

•

i

Exchanges

Geneva

Kep.

25 Broad St., New York
HAnover 2-0600

?;■(

4, N.Y.

Teletype NT 1-210

Cleveland

Chicago

X C*.L<\?

f'"-y

••■>-

RAILROAD SERIES

are

,

...

Established

*

INVESTMENT

BOSTON

Troy

Albany

-

Pittsburgh;

Buffalo

Dallas
Springfield

Syracuse
Wilkes Barre
Woonsocket

V

Prospectus

W.

HUGH
i: 7

:«iid

INCORPORATED

.

WALL STREET

46

Request

on

LONG

NEW YORK

3

1

,

*

u

*'I

-

;

7

s

Common

Asreon

FINANCE

sands

on

2222)

page

who

7

;: :"

Kobbe, Gearhart & Co.
■

Members

INCORPORATED

14 WALL ST.. NEW YORK

5. N.Y.

TELEPHONE-RECTOR 2-6300




N.

Y.

„

.

*

..J

..

.J

Security Dealers Ass'n

New York 5

45 Nassau Street
ToL REctor 3-3600

Teletype N. Y. 1-176

Philadelphia Telephone:

just barely

sur¬

but

until

have

now

hopefully
(Continued on

v

been

to

looking
imme2225)

the

page

State and

;;

Municipal

Brokerage

M Bonds

,

T

Bond Department

;r

Members New York Stock

7-

Members New

30 Broad St.
Tel. DIgby 4-7800

||

NATIONAL BANK

New York 4

OF

$2.40 Conv. Preferred

Enterprise 6016

7

Prospectus

>'

^

Dealt in
7

HART SMITH & CO.
'

New

Exchange

York 5, XL T.

York

WILLIAM
Bell

Telephone: RBctor 2-8600
Bell

Teletype

NY

1-635

■

7 :

J

7

...

,,

on

;

•

N. Y. Curb Exchange

]'■

"

'*

,

/.

32

130 Broadway, Now

t:

>

Reynolds & Co.;
Members New York Stock

Spring

$6 Preferred

*

;

NEW YORK *.w

Brook Water Co.

request

on

CITY OF

Scranton

■>

Conv. Preferred

,

THE

Tele. NY 1-733

Alloys, Inc.

Conv. -Preferred

THE CHASE

Exchange

York Curb Exchange

Raytheon Manufacturing Co.
,

MEMBERS NEW YORK STOCK EXCHANGE

;7.7

LOS ANGELES 14

90c Conv. Preferred

; -

,

have

forward

Solar Aircraft Company

SECONDARY
MARKETS

BULL, HOLDEN & C9

A

;7:-

ST., N. V. 5

ira haupt & co.
Members

Members

Security

Dealers

Assn.

HAnover 2-0980

Teletype NY 1-395

111

of

Montreal

Toronto

Principal Exchangee

Broadway

New York 6
REctor

10 Post Office Sq.
' Boston 9
+

.

Hancock 3750

2-3100

Tele. NY 1-1920

New York

a

aeain?

vived price controls, rationing and
other Governmental restrictions,

Manufacturing Corp.

60c

.v'. ..i*;

BROKERS

own

How will it affect the other thou¬

-

Hardy & Co.

.■

COMPANY

634 SO. SPRING ST.

''

•

Acme Aluminum

CORPORATE

BOND

up

open

small business of their

and Dealers

s

-

New York 5

PHILADELPHIA

Baltimore

to

1927

SECURITIES

64 Wall Street,

planning

now

for Banks, Brokers

R. H. Johnson & Co.
;

who

terials and other factors but

58

'■

Service

:

Lee

are

Bond

V"

v.:''V.

•-K,••

E.

period because of priori¬
ties, shortages of labor and ma¬

NEW YORK STOCKS, INC.

Buy Victory Bonds

Hirsch & Co.

Frederic

Dr.

during'

war

these estimates to
be reconciled with the U. S. Cen-

~~

busi¬

must beware of serious

we

trouble" (page 14).

Let's Finish Oars

forced

of

ness

concern—

falls

who

nessmen

the

f

o

busi¬

were

out

VICTORY
They Finished Their Job.

the

upon

small
-

there is

(Q) Doesn't this second quota¬
tion indicate that 60 million jobs

cents:, per

hour

on

(Continued

litiBONDsilfl

..

65, 70 and
ultimately- to

You, Mi. Wallace!

fair state of economic health."

convinced

am

exposition

seems

man¬

cease.

inconsistencies

pear

labor relations

should

as

this

price
but*

agement

be

the

to

Same Time

the Theories of the
Secretary of
Revealed in His Book "60 Million Jobs."

and

in wage
or

warned
-

rela-

can

based
on

rates

'

ex-

the

to

controls,

ample that in-

He

question of in¬
crease

at

the

—

ref¬

no

erence

through

v

I tions

made

V

"'

•

Attention

at

Henry A. Wallace, formerly Vice-President of the United
States,
and now
Secretary of Commerce, the Administration's "intellectual
head-man,
and would-be spend-<§>
er-in-chief, fully sets-forth his is an
actual
yardstick
against
economic
philosophy in a - new which our performance will be
best-seller "Sixty Million Jobs."* measured
rather than merely
a
The
basic
fallacies, ambiguities symbol?
Isn't it, therefore, im¬

ernmental

that

one can

'ford

Commerce,

J

without polit- 'i
ical
or
Gov-

coun¬

"

} *«'

Conference

Forty-four Questions

and "

agr eemen t

pattern

' *

>

to

come

standing

'andv

'

We Ask

t

managem e n

man¬

p.

and

to

an\under-'

lout the

•»

Calls

Business

<«

"can

agement

'(i '

i

the Labor-Management

that labor and

an

labor through-

-

$r'

V

Nov. 5, President Harry S. Trumah stressed that the

on

sent-to

|

'

2

was

agreement
here will pre¬

5

"r

opportun¬
to
prove

,

ability

4x { \

,

address .opening

an

He

Inconsistency of Encouraging
Raising Wages of Their Em¬
ployees. Says Big Corporations Will Be Given Advantage Since They
Can Offset Higher Labor Costs
by Installing Labor Saving Machinery
and Can Acquire New Capital More
Readily. V
V :
Small

Direct

'

Private

Wire

to

Boston

Thursday, November 8, 1945 *

CHRONICLE

COMMERCIAL & FINANCIAL

THE

2202
Trading Markets in: -

111

General Box '

t

..

Secretary of the Treasury

Pfd.

&

Asserting That Out Chief Problem Now Is How To Apply the
Economic Lessons of the War To, Peace and That We Must Solve TThis Problem
Within the Free Enterprise System, Say* It Is Government's Responsibility To Pro¬
vide Conditions for Full Employment Holds Pendbg Measure Is Improvement Over
Previous Labor Stabilization Laws, in That It Takes Positive Steps To Facilitate and
Encourage Expansion of Consumption and Private Investment Denies It Is a Spend¬
ing Bill or Undermines Free Enterprise and Maintains That Government Can Esti¬
mate in Advance Changes in National Income and Aid in Full Employment.
<£Secretary Vinson,

Transport

KING & KING
'

Established 1920
Members

Dealers Ass n
Securities Dealers, Inc.
Exchange PI., N.Y. 5 HA 2-2772
Security

New York

Nat'L Ass'n of
40

TELETYPE NY

BELL

1-423

taught us many things about our economy.
showed that when the people of the United States

It

minds

be

PROSPERITY

And

job,
will
done—and

complishment.
Winning
the

Mitchell & Company

;

Members Baltimore

ob¬

was,

war

viously,

11

a

-

did

Bell

.
.

..

call
into
service
every
human
and
material

1-1227

.

to

•:-V

i

v '• •

•'

• ;»_•

v.

t<«"

civilian economy.

our

Vanderhoef & Robinson
Members New

"

Bell System

national

Our gross

economy.

represented an increase

York Curb Exchange

but the

New York 5

Telephone COrtlandt

;

revealed the tre¬
productivity inherent in

product increased from $89,000,000,000 in 1939 to $199,000,000,000
in 1944. Some of this, of course,

Y. Curb Exchange

"

" >

product, of the

♦Statement by

in prices;
country,

The Bretton
on

Woods Agreements

Monetary and^
Financial Advisory

Secretary Vinson

though neither
the
United
Gov¬

ernment

America and

U. S.

dun

continues

to

primarily

be

as

and hat machinery.

Bell

ftfc Ponnell & Co.

Teletype NY

Air

Cargo Transport

Indian

Markets in V. S. FljNDSfor

Bell

St., N. Y. 5
Teletypes—NY

115

Hanover 2-4850
1-1126 & 1127

Stale Bank of

7-0100

Boston &

''

'

/

*

'■*'

.

:

All

to

<

George R. Cooley & Co.
INC.
Established
52

1924

William St., New York

WHitehall 4-3990

5, N. Y.

Com.

Request

Simons, Linbam & Co.
25 Broad St.,

York Stock Exchange

New York 4, N. Y.

HAnover 2-0600

ST.

YORK

NEW

.

B

HAnover 2-9470

Cross Company*
Delaware Rayon

n

^

Great American Industries

Indiana Limestone, 6s, '52

V.

San Carlos

In

position

"A"*. ':

"

1

Milling Co.*

'•] 1 * Analysis on

request

F. H. Holier & Go., inc.
Members

N.

Y.

as

Security Dealers

Ass'n

Broadway, New York 6, N. Y.
BArclay 7-0570
NY 1-1026
111

Stuart & Shedd With

■

HAYTIAN

corp.®!!

has rejoined the
Department of E. F.
Hutton & Co., 61 Broadway, New
York City. Mr. Stuart served with
the
War
Production
Board
in
R.

Stuart

Washington as Chief of the Ware¬
house Branch, Steel Division.
Bernard E. Shedd, recently of
the
U.
S. Army and formerly
Vice-President of the Commodity
Research

Btfreau,

of

Inc.

Quotations Upon Request

Members
New York Stock

New Tori: Coffee <&

120 WALL

31,

Sugar Exchange

ST^ NEW YORK

TEL. HANOVER 2-9612

New

Great Lakes
Steamship Co.
Common Stock

Common Stock

1945—$106.75

Current market approx. 102- 105

Exchange

York, has also become associated
with E. F. Hutton & Co. >
• •

Preferred arrears

Dec.

co.

f a It ll

,

(?

V

^

v

W* i «T >7V

;

BOUGHT

—

SOLD

—

QUOTED

BOUGHT—SOLD—QUOTED

•

Bought—Sold—Quoted

Members New

Teletype NY 1-2419




*Circular Upon

./■.«.

Bank

'"V

Kingan & Company,

Issues

WALL

COMPANY, INC.

•

Common

North American Cement

Members New York Curb Exchange
64

Teletype NY 1-1140

Govern¬

the American

by

ment.

Shovel Pfd.

Engineering Co.91,

1

Frank C.Masterson & Co.

II. K. PORTER

Wellman

Albany RR.

Common

Common

Reserve

Federal

Marion Steam

Preferred

'

*

loans

"J.

Exchanges
N. Y*
Teletype NY 1-672

Segal Lock & Hardware

Albany

Hotel Waldorf Astoria

Commodity

Stock Exchange and Other Principal
BROADWAY
NEW YORK 6,

Telephone BArclay

Standard Aircraft Prod;

E. F. Hattoii & Co.

Co.

Goodbody &
Members N. Y.

Security Dealers Assn.

37 Wall

"

MINNESOTA & ONTARIO PAPER

Taylor Wharton Iron & Steel

Members N. Y.

Stock

,,

Common & Preferred
BROWN CO. Common & Preferred
CONSOLIDATED PAPER Ltd.

ovemecmiCompomi

Common

of Commerce, the
the Board of Gov¬

the

of

visory Board, with the same com¬

a

ABITIBI PR. & PAPER,

Motorcycle

of

Chairman

the NAC, the only dif¬
departments; ference being that the Chairman
Herbert M. Bratter
of
this; Advisory Board
is the
and agencies.
The membership of the National
(Continued on page 2232)

BROADWAY, NEW YORK
'Tel. REctor 2-7515

Oxford Paper

Secretary

the

ernors

various

up

Government

We Maintain Active

PAs, '47

Boston Terminal,

from

New York Curb

120

Council consists of the
Secretary
of the Treasury, as
Chairman; the Secretary of State,

drawn

to

and

set

staff

Stock Exchange
Exchange

New York
.

President
Council on International

expanding the Export-Import,
to a $3.5 billion institution'
last summer the Congress speci¬
fied for that institution an Ad¬

started

Members

Central States Elec. (Va.)

New Bedford Rayon "A"*

has

3-1223

Telephone: WHitehall

Has Not Been

Import Bank of Washington. These
in any ease are the officials who
are most concerned with foreign

function

Street, New York 5

System Teletype NY 1-1919

the

ments, this
Council has

Bought—Soid-~~Quoted

20 Pine

Bell

Liquidometer Corp.*

Woods Agree¬

Conv. Pfd,

H. G. BRUNS & CO.

WHitehall 4-8120

65 Broadway

•

Exchange

York Curb Exchange

System, and the Chairman of the
Board of Trustees of the Export-

Bretton

engaged in the manufacture
.' of hats

Members New

other has
yet actually

ratified

Colortype

Machinery Corporation, Byrn-.

nor

any

American

in Hat

of stock

ownership

Al¬

Problems.

Byrndun Corporation

Hat

Members New York Stock

Council

Act approved by the

the National Advisory

Jujy 31 established

States

Corporation of

Howell Electric Motors

Lease Aid.

House' Committee on
Expenditures in the Executive
Department, Oct. 31, 1945.

Through

R. Hoe Common
Textron Warrants

States here at home right
(Continued on page 2226)

the Advisory Council Set Up by Congress
in the Enabling Act Has Already Begun to Function and Has Been Tied
in With the Advisory Board of the Export-Import Bank by Having the
Same Membership.
Sees an Anomalous Situation in Having Two Super¬
visory Bodies With Identical Membership but With Different Chairmen
and With Powers That Are Not Co-Extensive. Sees Likelihood of Public
Flotation of Dutch Loan and Says British Want a New Form of Lend-

the

before

Differential Wheel

United

Although Bretton Woods Agreement

7-4070

Teletype NY 1-1548

•

Electrol

the people of the

.

.

The war also
mendous

branch llfiices

Ratified by Any Government,

command, and put it to use,
for the War effort
for the maintenance of the

or

3/68,1956

31 Nassau Street,

Writer Notes That

either directly

Savoy Plaza
•Traded on N.

Secretary Vinson
,

at its

v'

our

Pressurelube

problem

One

Number

The

HERBERT M. BRATTER

By

the
had

country

Power Securities
7«, 1952-1957

before
that

of our production

which confronts

BW National Advisory

resource

which

"International

Direct wires to

for war purposes.

was

:

.,

NY 1-1557

HAnover 2-0700

New Orleans, La.- Birmingham, Ala.

fact

the

despite

war,

nearly one-half

of our allunemployment disap¬

V- iv

.

Members New York Stock Exchange

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

Edward A. Pureed & Co.

we

Teletype N. Y.

•.

;

Steiner, Rouse & Co.

our

Broadway, N. Y. 5

best

.

Request

"

So

important.

Stock Exchange

job.

WOrth 2-4230

120

the

peared.
There were more em¬
ployment opportunities than peo¬
ple seeking work. The job sought
the man, rather than the man the

ized for its ac¬

than it had been

1944

in

too, in
We discovered

consequence

a

as

on

riod, the real standard of living of
the civilian population was higher

economy,

our

effort,

out

mobil¬

will be

VICTORY BONDS

that

country

great

about

winning the war.

of this

sources

EXTRA

Buy

sources

facts

the whole re¬

Analysis

that as a result
effective use of our re¬
during the wartime pe¬

the

of

expressed in real terms, increased
by about 75%.*
We
learned
other < important

ing a big
that job

PEACE

set their

*

do-

on

Sold-t- Quoted i

Bought

discovered

We

The war has

FOR

« CO., INC.

V4'

Miss. Valley Barge
Air Cargo

P. R. MM10RY

FRED M. VINSON*

By HON.

Majestic Radio
Com.

Employment Bill Will Do

What the Full

-

Tele. NY 1-210

Troster,Currie&Summers
Members N. Y. Security

HA 2-2400
Teletype NY 1-376-377'
Private Wires to Buffalo - Cleveland

74 Trinity

Place, N. Y. 6

.

Detroit

-

Pittsburgh

J-G-White 6 Company
INCORPORATED

Dealers Ass'n

-

St. Louis :: j

37 WALL

STREET

r

ESTABLISHED 1890

TeL HAnover

2-9300

*%9o/iu

•

' NEW YORK 5
Tele. NY 1-1815

MEMBERS NEW

One
v

Wall

YORK STOCK

EXCHANGE

Street, New York 5,

Telephone BOwllng Green

N. Y.

9-4800

yolume 162

Number 4436

THE COMMERCIAL & FINANCIAL
CHRONICLE

,

Labor and Management State Their Aims
j

V

By IRA MOSHER*

By WILLIAM GREEN*

President, American Federation

Manufacturers

of Labor

r
-

'Asserting That

Like William Green of

Representative of Veteran Labor Leader, Urging the
Is Committed Labor
Management Conference
to the Principle of Collective Bar¬ Confine Itself to
Erecting Frame¬
gaining, and the Aim to Provide the work for Labor-Management Co¬
Highest Possible Standard of Liv¬ operation, Places Collective : Bar¬
He

ing and Greatest Degree of Secur¬
ity for All, Mr. Mosher Calls for

|

v

Management but for Public Weal
Let

and

me

my

say at the outset that I
assocaites from the Na¬

tional Association of Manufactur¬

All of

Solution of Present

With Choice of Peace

or

just
from

the

call f

We.

ence.

of

our

President

to

'v*.v..v/r?-vp '///■./'•

Cham¬

States

ber

here at his

Com¬

of

accurately

is

dress

minds

in

and

hearts

he '

vtv/'1' ':.>■*V".

Mosher

home

Arthur

(Continued

H.

on

front"—as

We

are deeply conscious of
(Continued on page 2240)

2240)

our
-•

Return to Collective Bargaining
By HON. L. B. SCHWELLENBACH*

'

Secretary of Labor

Claiming That Industry and Labor Have Become Rusty in the Technique
4>f Collective Bargaining, Secretary Schwellenbach Pleads

for

Better
^Understanding and Adherence to Its Procedures. He Urges "Top Man¬
agement" to Devote More Time to Its Consideration, and Labor to Aban¬
don Inter-Union Politics. Asks Both Sides to End "Oppositional Atti¬
tude" and Develop an Atmosphere i of Cooperation. Says Government's
Policy Is to Remove All Wartime Restrictions and Give Labor and Man¬
agement a Free Hand in Bargaining.
/When the

war

quickly certain

a

ended the Government was called upon to make

very

During the war

important, serious decisions.

abandoned

of

many

determining

the

ly could be lifted.

lated and

•every

the

ing

of

were

the

*An

BOUGHT

Membert New York Security Dealers Assn.

period
address

painful

and

-

by

§4-When

the
e

faced

Philip

of

and the peace.

.We

experience

out

Eric

A.

Johnston

termined that it shall—this

the

essence

in

on page

on

Request

on

Request

by

this

importance.
left

the

one

It is

us

more

clear

fatigued

Nerves

that
war

than

frayed

are

on

page

1

Haloid Corp.

\

V

Sargent & Co.
Bausch & Lomb

Billings & Spencer
U. S.

we

Public

V&-

Sugar Com. & Pfd

and

2241)

1/

Est. 1926

:f: V ^

n

w :

Hibiog & lo.m
Members

New

York Security

170 Broadway
Bell System

Dealers

Ass**-

WOrth 2-0300
Teletype

NY

1-84'

Conference at Washington, D. C.,

ques-

on

Nov. 5, 1945.

offerings of

1

;

.

r

Alegre Sugar

Eastern Sugar Assoc.

;

-

Lea Fabrics

,

High Grade

National

,?.r

1-2480

m

Punta

It

NY

the

"Addresses delivered at opening
session of the Labor-Management

2241)

interested in

2'478S

System Teletype,

TRADING MARKETS

have

are

(Continued

we are confronted with
a
major
collapse in labor-management re¬
lations. /

on page

HAnover
Bell

Private Wires to Chicago & Los Angeles

was

explosive.
The ab¬
normal conditions imposed by a

relationships
in / this
V-E Day.
Today

ask ourselves

conference

colossal exertions of the

steady deterioration of

are

'
—

:;// 'j Members // ■/.
/: New York Security Dealers Assk:

Kingan Co.

Since

country sinve

us

m'-,

40 Exdi. PL, New York 5, N. Y.

planned and summoned, we have
had a long and often disquieting
array of proofs of its urgency and

and sat¬

convinced

(Continued

Prospectus

war.

our

This is the'

realized.

industrial

/:

'

J.F,Reilly&Co.

de¬

are

tempers

a

;

National Gas & Electric

Utility and Industrial

Susquehanna Mills

PREFERRED STOCKS

2242)

DUNNE & CO.
/ ';

BUY

L. B. Schwellenbach

Members New York Security Dealers 4ssn.

25

25 Broad Street. New York

Teletype NY 1-5

Telephone HAnover 2-4300

Bread

St., New Yorlc U, N. Y.

WHitehall 3-0272 —
"private

Wire

Teletype NY 1-956
Boston

to

'"v"

Member»

the

necessity of

VICTORY

TITLE COMPANY

Bond & Mtge. Guar, Co.

Stock Exchange

;

•. •

/

•;••■/• •.

'

ft

z -y

;v''-

Public National Bank

Preferred

•«

& Trust Co.

»>VJ

zr.

.

National Radiator Co*
Bought—Sold—Quoted

lawyer* Title & Guar. Co.
N» Yr Title & Mtge. Co.

STRAUSS BROS.
U embers

32

Prudence Co.

New

York

8eeurity

Teletype NY I-83S. 834

Newburger, Loeb & Co.
St., N. Y. 5
WHitehall
I Members New York Stock Exchange

4-6330
/

:

Direct

Dealers

t:

Circular

Ass'n

on

Analyses available
to dealers only

Request

Board of Trade Bldg.

Broadway

NEW YORK 4 >
DIgby 4-8640




.

Common and

Lawyers Mortgage Co.

Teletype BY 1-2033

York

American Bantam Car
£ ■:. J* p.#.--: ,t.. ?'/

40 Wall

New

X

BONDS

CERTIFICATES

Bell

Murray

.

events of recent months that there

nt
with

reconversion

has been

the

Govern m

of

Pfd.

**Circular

Spencer Trask & Co..

war

«nded

r

Cpm'.

the test of the

•

become

Yiumari life.

lighting

*

isfactory industrial relations.
However, I should be remiss in
my responsibility in not stating
frankly at this moment that I

of

loss

has

will

Management

(Continued

•

❖❖Clyde Porcelain*

direct stake,
also pass

a

cornerstone for peaceful

We

CHICAGO 4

HoixR6se$Tr0ster

Harrison 2075'.
Teletype CO 129 <

Wire Service

/
New York—Chicago—St. Loui»
Kansas City—Los Angeles

-

>'

Estaplifhed

19j4

:

74 Trinity Place, New York 6, N. Y.
T*>fev^nve: BOwhng Green 9-7400

C. E. Unterberg &
Members N.

\

-

•/'

■

❖Majestic Radio

in

every

American

shall;:

is

Let

Broadway

Telecoin Corp.

;

Secretary

the

at

HAnover

re-

ions,

which

desire.

democratic society.

dur¬

transition.

of

39

New York 6, N. Y.
2-8970
// / Teletype NY 1-1203

now

economic
1 at

the

to
their

have

QUOTED

-

>

will.

ment

SOLD

whether

before

..

-

Complete Statistical Information

be
if

retained

YORK

CERTIFICATES

system of free

Conference,
Washington, D. C. Nov. 5, 1945.

mini¬

a

mum

Labor

might

Dept.

NEW

TITLE COMPANY

;

gatherlabor-management
relations- to offer- suggestions for ing is in itself eloquent proof that
the speedy iand effective disposi¬ the determination is deep and
This gathering gives us
tion of disputes which may arise earnest.
the right t<5 hope that it will > be
between unions and"
mghdgdment'ii' met with th£ same courage, the
A determined
approach /based saihe1
good sense and the / same
upon
the genuine and
whole¬
of mutual
respect
with
hearted acceptance of collective spirit
which we met the challenge of
bargaining by labor and manage¬

to

less

were

Schwellenbach

to

war

quickly
with

the

That

necessary

we

controls

ac¬

The Govern¬

economy

and

smoother

con¬

area

tivity.
was

peacetime

almost

•economic

how and

transition

that

knew

ment

soci¬

We regu¬

trolled

and

to what extent those controls safe¬

principles
practices

and

free

when

Securities

STREET,

The

y.

the

upon the basjs
in the field of

:

-

even

this American

endeavo

Green

n

is

ap-

contribution.;

William

long

a

else

one

L. J. GOLDWATER & CO.

des-

u m a n

t i

confer-'/

//We,

our

no

good price

a

Telephone WHiteha'! 4-6551

of

question

construct ive

hearts and minds.

Vandenberg

page

h

'/Z

with

make

impress ion
upon

>

the

on

Senator

Ira

scales

CIO

The

and

deep

a

human

earnest

doubt

no

made

"lay the
■•groundwork
for peace with

win

Obsolete

proved deci¬
sive in the

American

ence

us

tnat

you

i-*i■

periority

s u

i 11

possible

this

delivered

ence

to

.justice

w

tasks

which

at this confer¬

upon

effort

this

policies

delegates
p r o a c h

attendance

in

we

as

re-

to those of

our

enter

•

moving and
inspiring
ad¬

re¬

what

our

use

industry."

The

1 u e s t.

They

merce.

flect

his language in call¬
ing this conference, "an effort to
make, to

in

assembled

also go

can

with

war

relationsh i ps*

We have

United

the

bogrdb

WALL

99

/Our. American system of :;ree
econdmy has passed the test of

assembled here at the

are

invitation

better

o r

I

obsolete

for

memory

And

remembers!

Bargaining Ha* Been' Re¬ ft Code Under Which Future Labor-/
by Many Employers and Management Relations Will Be
Urges Conference "to Address JtConducted and Lays Down Fourself to Urgent Need of
Protecting
Basic Principles to Be Followed.
Wage Standards/'

liake

issued

States

guished leader

ety.

old

Icr

■

the United

you

long

a

toward giving

jected

industrial

/

confer¬

r

have

way

lective

term /

f

im-

cance and

this

J

I

securities.

■

which

ence

REMEMBER
FARTHER!

War, Co¬

Home ^ Pay ^ and Maintenance of. operation or Violence, Self Regula¬
Standard of Living. Contends Col¬ tion/or Coercion by Law, Calls for

us

distin¬

was

Problem

Lies in Restoration of Loss in Take

of

the

in

I

of

President

heard

;

Choice

establish long-

have

if

mental

Labor-Manage¬
Bargaining 3s Cornerstone
Peace, but Says That ment Conference Is a Vote of Con¬
Labor and Management Relation¬ fidence in the American
Way of
ships Have Collapsed And States Life.
Says Our Economy Is Faced

That

AND COMPANY

|

Industrialist Delegate Says Funda¬

That Col¬

The

words

•of

...

stirring

the

we

.

portance.

thoughts

••

.

and

in hearty accord with the
timulating

•«df

;

Commerce

of U. S.

•>;

who are called upon to
participate in this na¬
labor-management confer¬
fully appreciate its signifi¬

JOHNSTON*

President, Chamber of

>

AFL, Presi¬

Maintains

A.

of Industrial

and

meet

tional

-

ERIC

flying colors.
In
a
titanic contest, the
overwhelming
weight of our

ers, are
s

Conciliation Service*.

roent in

of CIO

:
-

By

,

lective

gaining at the Foundation of Peace¬
ful Industrial Relations. Says Labor

Support of the Ideal of Individual Should Not Interfere With Rights of
Cnterprise. Stresses That Confer¬ Management, But Holds Manage¬
ence Is Not a National Collective ment; ResponsibleforStableEraBargaining Agency and That Its ployment, Job Security and Decent
Work Is Purely Advisory and In¬ Wages. Advocates Employers Share
spirational. Says Aim Is Not for Essential Information on Industries;
Strategic Advantage of Either Labor With Workers, and Urges Improve-,
or

dent

-

LicHTtnsTiin

'

President of Congress of
Industrial Organizations

;

,

/;/

as

Manufacturers,

Conference Convenes

as

By PHILIP MURRAY*

President,. National Association of

2203

Teletype: NY 1-375

37
.

Y. Security Dealers

Co.
Ass'n

Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3565"
Tolptvne NY

1

■A

>"'< v
.

-

■

5

CHRONICLE

THE COMMERCIAL & FINANCIAL

2204

WUID & Co.
1ST

1926

-*S,kr*

|l;j How

Distribution Tomorrow
By CHARLES F. PHILLIPS*

to Prevent Strikes
By 'DONALD R. RICHBERG*

,

College, Lewiston, Maine

Thursday, November 8, 1945

■

Holding Thai Most Shrikes Are Not- justified, Mr. Richberg Urges a Rate
of Reason Be Imposed Upon Both Labor and Management and That
Dr. Phillips, Though Stating No Startling Basic Changes in Distribution1
Government Should Provide a Machinery for Fact-Finding, Mediation
Methods Are Expected, Lists as Future Developments: (1) More Retail
end Voluntary Arbitration.
Deprecates "Political" Strikes and Ad¬
Outlets; (2) Expansion of-Existing Retail-Firms; -(3) Enlarged Con*!
sumers' Cooperatives;. (4) Cooperation of Retailers in Group Buying;; vocates Passage af Hatch-Burton-Ball Bill/ Which Prohibits Sadden and
(5) More "Scrambled Merchandizing"; , (6) Closer,, Contact Between Arbitrary. Strikes That Affect the Public; and Which Applies - the Prin¬
Contends the
Wholesaler and Retailer and (7); Direct Marketing by Mannfacturers., ciples of the Railroad Labor Act in Adjusting Disputes.
President, Bates

•

.

.

Regulations to Limit Cd^jmtition^\ WRfc^ah Expansion! Hatch-Burton-Ball Bill Does Not Proyide CompuIsory.«Arbitration, but
Concludes That Merely Carries Out the Duty of Government to Maintain Order.
the Real Job Is to Make Our Competitive Economy Function in Order
There was a time when strikes could Usually be justified.
They
were the desperate efforts of distressed men to improve their lives.
to Avoid Inevitable Dictatorship.

Predicts Additional

INDUSTRIALS

of the Consumer Movement and Market Research and

-

American Bantam Car
"

Com> 6 Pfd. -■

Tod

,:,;v

Com.

&

through

Pfd.

Blair & Co.

.

Dayton Malleable Iron*
"A"

Gt Amen Industries*

But

Hearst Pub.,

Pfd.

;

a

Gov¬

ernment

pur¬

'•' -Vs •''

■;

Retail

More

new era.

4*

Howell Electric

1 p s

the

Charles F. Phillips

this

ing

Keritef

Mo.StateLife Ins.
Moxie Co.

Oxford Paper*
P. R.

Mallory
"

Com. A Pfd.

/

Polaroid Com. & Rights

Purolator*

,

in-

working
and

men

women.

Never the-

?less

*

Ibe
•

Ith

it

would

wrong

for

Govern-

*

e

de-

to

-

which

The value of such a law to pro¬

of

terests

labor

i •wganizatio

n s

mote industrial peace

law

refrain

to

least until

Richberg

given a fair trial. Any pro¬
law which does not pro¬
a
strike, a lockout or any
one-sided action to change condirposed

the . Wage
earners

tions

iLe Roi Ccmpany

assured of an equal
gotiation and Government media¬
gain economic justice' tion, will be a sham and-a der
lusion.
by peaceful means.

t

York

have been exhausted, you are en¬
titled either to laugh

their dif-

effort to settle

*Prospectus and Special Letter Available

.

,,

tStatistical

Study

Special Letter

or

■

,

x

<

first colony corporation
Members

Conditioning

Security

York

New

Dealers

pery

who

of the

struggle to rule or ruin the na¬
business.
But, whoever is
^

tion's

(Continued on page 2224)

Preferred

Teletype NY 1-2425

*Moore

'

The

Consolidated Textile

of

following

Zurich

talons

Jersey Worsted

,'V-V^' '$'%

^

*

shares

order

*

s'.J

f

warrants no.

dividend

the

value

Swiss

Reinsurance

lOOO.—Frs.

17 to 24

each

and

5 shares

no.

J.K.Rlce,Jr.&Co;
Members N.

29955/59 dated Oct. 1st, 1923

no.

49971/74 dated Oct. 1st, 1929

These

'4yVf"4<i44.4'£444'5--;'44 '4 '
shares will be invalidated

year from

American Gas & Pow.

Zurich,

date

below

March sixth,

at

'

-

;,v

unless

:

of

the

Court:

Dr. Tobler.

ARIZONA EDISON

1ST. 1926

Descriptive'Circulars

BROADWAY, NEW YORK 5
Wires

Direct

to

request

6111

{ ^

comprehensive analysis
this low-priced un¬
listed natural gas equity.
for Analysis "CCC"

4

v

,•

.

Members

New

Incorporated

York

,.

3

f>

,

Security Dealers Association

,

,

'.».

-

.

_

\

%

Bos. 2100




our

of

Seligman, Lubetkin & Co.

'PHONES-

Bull. 6024

Dealers

41

Broad

Street, New -York 4

N.

HAnover 2-2100

'

Thornton

&

Co.

i 'dO Wall St., New York 5
IP'S'* HAnover 2-9340 -:

1879.

matter Feb¬

1942, at the post office at New /
Y., under the Act of March

25,

York,

3,

CO., Common
on

and

will be interested in

Ask

Chicago and Phila.

ENTERPRISE

1-Hartf'd

NY

Company

ruary

Members N. Y. Security Dealers Assn.

Ector 2-8700

Copyright 1945 by William B. Dana

PARK, INC., Common
Brokers

(|

S.

Reentered as second-class

SHATTERPROOF GLASS

120

St°c

135

Offices:

FOUNDATION COMPANY

WELLMAN ENGINEERING CO.

;

Monday

La Salle St.,
Chicago 3, 111.
(Telephone: State 0613);
1 Drapers' Gardens, London, E. C., Eng¬
land, c/o Edwards & Smith.
Other

Cotpomtion

Common

Ward & Co.

*

state and city news, etc.)

clearings,

Commonweal
Gos

FASHION

week

a

Thursday

(complete statistical issue—market quo¬
tation
records.
corporation,
banking,

Division

Iowa Southern Util.

:

every

and every

(Switzerland, Europe)

Clerk

Circular upon request

P

1945

(general news and advertising issue)

The District Court of Zurich

•

THE

twice

;

Y. 1-714

.

1945

November 8,

.Published

Broadway

the "chancery of the" undersigned District Court.

5th

fProspectus Upon Request

Thursday,

Security Dealers Assn.

2-4500—120

System Teletype N.

Mass. Pr. & Lt. $2 Pfd.
or

Y.

Manager

-

1908

\

President

William D. Riggs, Business

.

(Switzerland)

Conn. Lt. & Pr.

Bell

/'I-;,. ,1^--;'.V r
.'V,:/-they are^ presented within one

--V-.' '

Seibert,

D.

William Dana Seibert,

REctor

UTILITIES

Derby Gas & Elec.

their

missing:

are

4 shares
V

Herbert

Editor and Publisher

*Prospectus on request

Established

Warrants

REctor 2-9570 to 9576

Company
with

Park Place, New York 8

25

'■

■

by

issued

nominal

(Switzerland),

containing

5 '«

Patent Office

Publishers

Drop Forging

Loft Candy Corp.

Notice of Missing Order Shares

Aspinook Corp.

,

William B. Dana Company

Kingan & Company

Alabama Mills*

U. S.

Reg.

Chemical Bank & Trust

TEXTILES

and

COMMERCIAL

The

FINANCIAL CHRONICLE

Colorado Fuel & Iron

New York 5

Hanover 2-7793

advocate of the rule of force,
is willing to let the public
suffer 'while
he and his kind

Association

70 Pine Street

what

talking about or to a slip¬

is

luncheon

Richberg at
Chicago Asso¬
Chicago, 111.
Oct. 31, 1945.
Mr. Richberg is a
member of the law firm of Davies,
Richberg, Beebe, Busich and Rich¬
ardson, Washington, D. C.
a

Request

on

theorist who doesn't know

a

*An address by Mr.

Corrugating

out loud or

You may be listening to

to boo!

he

ciation of Commerce,

Warren Bros. "C"

*Bulletin

advantage,

to

sonable

t Pittsburgh Railways

"Simplicity Pattern

.-.4

Trenton Val. Distillers

.■*"

an

been

power

reason must be to impose
legal duty upon both labor and
management to make every rea¬

.

f

gain

to

or

during the period of required ne¬

rule of

Taca Airways*

Textron

from waging war, at
peaceful methods have

■

Sylvania Industrial

New

That

all parties

been

power
to strike until

R.

enforceable.

made

and

is the duty imposed on

hibit

f of the
Donald

will depend,

however, entirely upon one duty
which must be written into the

a

H. H. Robertson

U. S. Air

the

serve

consumer

r

Richardson Co.

adjusting

goods.

ahead

Moore-McCormack

as a further aid in
difficult controversies
affect the public interest.

to

For the period just each year. But in contrast to pre¬
For decades it has been, and it
A good example of such a flim¬
income will fall war years and f for fairly, obvious still
is, unhappily, the law of the flam is the McMahon bill which
and this will be reflected in lower reasons, the replacement rate was land that conflicts of interest be-;
Washington intriguers are seeking
consumer
goods sales.
Conse¬ far less than the mortality rate. tween management'and labor are to have endorsed by the forth¬
We: have fewer; to be decided
quently, many of us are wonder¬ Consequently,
by force. It would; coming Labor-Management Con¬
stores today than in many years.!
ing about what will happen to
be
unfair
to
call > upon ; labor; ference. Any employer who thinks
distribution during and following To be specific, between 1939 and unions to
lay down their princi-; it is a good bill should join hands
this reconversion period.
i:-..;- «:• 1943 there was a net decrease of
pal weapon of force until we es¬ with the C. I. O. They like it!
Frankly, I am dubious that dis¬ 271,000 retail firms.2 As men and tablish
by law a rule of reason in
Every time you hear someone
tribution methods are in for any
labor disputes and require
all! advocate a so-called "voluntary"
*An address by President Phil-;
startling basic changes in the
parties to listen to reason before
peace program, in which there is
years immediately ahead.
Noth¬ lips before the Boston Conference
they begin to fight.
no legal duty imposed on labor oi>
Boston, Mass.,
ing, has developed which will re¬ on. Distribution,
Oct. 16,1945.
ganizations and employers to re¬
place the department store, the
The First Step
frain from fighting until reasonr
chain store,
(Continued on page 2228)
the service wholeThe first step in developing a able efforts at peaceful settlement
for its

Lamson & Sessions*

years,

untary

fact-finding,

helpful
'

also true in have
thousands of

years, as was

pre-war

retail stores went out of business

major market

of - mediation,
arbitration
and, public

machinery

a

or

J prive

"certain"^ developments
of the
years immediately ahead.« During

by peaceful negotiation.

necessary

in the num-j
as one of the

chases are be-

Kaiser-Frazert

as

ment

ing curtailed
rapidly so that
b u s i n ess
is

war

can-

justi¬
either

•

Hoover Co.

the

be

fied,

Outlets

I place expansion
ber of retail outlets

Then Government should provide

not

costs may actually rise.

today

stand at

we

"""—;

—

ferences

of strikes
-

,

Douglas Shoe*

y-;a»

a

large majority

period of unprecedented sales. From $42 billions in 1939,
by 1944 retail^
sales- had jsaler, or manufacturer's branches.
reached $69.3 No one has found a magic formula
billions, a by which the cost of distribution
6 5 %
gain. can be drastically or even signifi¬
As a matter of
During the cantly, reduced.
same
period fact, such elements as more direct
wholes ale selling, rising wage costs, air con¬
salesincreased ditioning, more elaborate stores
87 %
from and fixtures may more than offset
$55.3 to $103.4 the impact of f self-service and
billions.1
larger stores, so that distribution

a

S. F. Bowser

Du Mont Lab.

of this country have just been going

The wholesalers and retailers

Amer. Window Glass*

,

,

v

,

-

^ Subscriptions' in "DnitedStates , arid
Possessions, $26.00 per year; in Dominion
of Canada,
$27.50 per year; South andCentral
America,
Spain,
Mexico, and
Cuba.' $29.50 per
year;
Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
■

.'"7

/J-

•

Other Publications

■»

>

Record—Mth.$25 yr.
Record—Mth.. .$25 yr.

Bank and Quotation

Monthly Earnings

fluctuations
remittances for

NOTE—On account of the
in the rate of exchange,
-

foreign subscriptions and advertisements

■

Volume 162
»

the: commercial & financial chronicle

Number 4436

■

-

.•r'f fc-.'rf.'.M

•i
'

y'Vr

"'''I *'
'?

e-i
V^'- "V

*■

,

V

*

'

L'.* \V;
4 ."i'."v

A-""-'

>

•

flte#s.

-

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'.;••■

..

/.. : a V: }.?

By hon; emanuel celler*

-

2205

*

Congressman Celler Holds That the BombayPIan, for India's Economic
lmprovement,WhichEnvisages a V$2 - BillionLoan From the United
States, Requires the Unblocking of the Sterling PoundL^s Contends That
Britain's Freezing of Dollars ill the Sterling-Area. Is Creating a Dismal
Climate for International Business. He Calls on Assistant Secretary of
State Clayton to End Britain's Trade Barriers Against Us.

^
"-i

By JOHN W. SNYDER*

Director, of War Mobilization"and Reconversion

.

?

Asserting That Construction Activity Will Be a GuidepostonWay to
Reconversion^ Mr.'Snyder Outlines a Six-Point Program? to Encourage
Construction and,' at Same Time, Curb Inflation.Although Stating That
the OPA * WilL Strengthen Price ControlOver
Building Materials and
Rents, - He Maintains; That -It Is Not the" Present Intention, to Ask for
I am happy to report that my bill, H. R. 3715, has gone over three Legislation for Price Control on Finished Houses;? Says Only Complete
major, hurdles.
After extended hearings, it was reported out favor-. Cooperation of Building Industry and Government Can* Help in Filling
s>ably by the *
Housing Demand and Bring About ansJEarlieri Prosperity, Free From
>

established,

quota, but the late
Rabmdranath Tagore, a most dis¬
tinguished philosopher and poet

House- Com- g
mittee on Im- *

migration and

r

were

Andian National Corp.

;

a;v
the -*

f

p o w e r

us

Rules

of

are

the

<

Army,
of

among

missing.

The

?

soldiers

the

within

•

There

tion

Brown

>:

.

a

great

-

i Distillers

p}#}

threat

of

flation

that

in

this

field

Electrolux

Internat'I Milling,

the

performed

House,

was

passed.

of

Now it is

over

Celler

H.

from

seeks

3715

R.

to

immigration

our

exclusion

the

India's

and

provides

remove

statutes,
provision

for the naturaliza¬

tion of Indians resident here.

It

almost incredible

seems

those

of

who

us

that

the

supported

bill should have found any oppo¬

sition

would

It

all.

at

that

seem

considerations
put
aside) a simple sense of justice
would dictate its unopposed pas¬
sage.
That was not so, however.
Despite the declared approval of
the Departments of State and Jus¬
tice, the voiced support of the late
other

(all

people
enough
money to buy
the
things
that
industry
c a n
produce
as

Chindit is
of this

have

sprang out

from

comes

the Burmese

word

side.
"*

It

war.

the Senate

on

heroically.

word which

a

Emanuel

President Roosevelt
ident Truman,

and of Pres¬

meaning lion (chinthe) and
the
English word, bandit. The
term
was
applied to Wingate's
jungle
forces,
which
included
many Indians as well as British
and American fighters.
Because
of the courage and daring of the
Chindits, a whole belt of combat
rings were all supplied by air.
India contributed the largest vol¬

there

is

post along the way to reconver¬
sion and post-war expansion?
This
is
not
only because a
'

shortage
of
houses
demands
prompt expansion of the construc-

Mclntyre Porcupine r tF
Nor and a Mines
St. Regis Paper

>

flation.

analysis

of

fought

There

was

52

WILLIAM

of

000

session

of

the

a

Indians manned British

Toronto

Purolator

mer¬

COAST-TO
New York

Chicago

•

-

St. Louis

COAST

-

-

Kansas CityLik Autceies

Hydraulic

2235)

on page

Montreal

Direct Private Wire Service

ships.
Indians performed
brilliantly under General Mont¬
gomery in his great Eighth Army.
(Continued

2-0980

Con¬

of the U." S., Washington, D. C.,
Nov. 1; 1945.r
^
(Continued on page 2227)
:|!

production, but I do want to go
into some detail on the subject of

chant

the bill in its pas¬

HAnover

Teletype NY 1-395

struction Industry Advisory Coun¬
cil of the Chamber of Commerce

today for a
problems of

the

huge India air force
300,000 men. Almost 60,-

over

ST., N. Y. 5

Bell

fronts.

many

on

; :

Hiram Walker

HART SMITH & CO.

unteer army to the Allies—2,000,000
men—all
natives
of
India.

They

.

^An address by Mr, ;$nyder at a

luncheon

We don't have time

full

-

Pfd.

Sun Life Assurance

New York

no

danger of in¬

John W. Snyder

~
<

Minnesota & Ontario Paper Co.

.

it

Pfd.}

;International Utilities

struction, therefore, we believe is
of our chief responsibilities in
the period just ahead.
We be¬
lieve, in fact, that the construction
activity will be a sort of guide-

long

•

lnternat'1 Holdings, Ltd.

It

terrific need for

one

in¬

and

as

a

,

:'

Seagram Ltd.

} Hydro Elec. Securities Com.

Stimulation of activity in con¬

to the

answer

inflation

Rwy.

$ Canadian Western Lumber

time in which it
will be impossible to build them
fast-enough.'"
v

We all know

the

is

Company Com. & Pfd.

Canadian Pacific

houses during a

Of

because there is

and?de¬

flation.

Chindits

so-called

construction.

is

•that produc¬
tion
is
the

They produced for war,

of

the'^~
threat

r

Navy and Merchant
Great; Britain. They
the dead, wounded and

Indian

ranks

floor ?-

in

ahead

to? prevent
both
infla-

farmed for war, built for the war
which was ours arid theirs. *

esc¬

heated, debate

.

Two million

the battlefield.

on

Marine

the y

House, and,??
thirdly,
after }
a spirited, and ~

on

time

the

Com-?}

mittee

sometim

tives

Indians fought rand are fighting in

IV

u

enjoy

no

obtaining
from

\ \ : In his address: to the people of the country Tuesday night
(Oct. 30), President Truman stated that one of our primary objec¬

*•-

Assoc. Tel. & Tel. $6 & 7% Pfd.

'

-such-Tights., <
* r
The Indian peoples had joined

gentle and wise man, could

*

successful in?
rule

PandityNehiriij alyery

of India, or

Naturaliza- ;
tion. We

Controls.

i-

§ Royal Bank of Canada :

.

,

Bank of Montreal

}

Canadian Bk. of Commerce

through the House met with
many setbacks. Thus, it behooves
sage

the

the

This

Senate.

32

battle is not over, by any means.
India has become one of the

family
this

,

HODSON&

enter the

White &

from

Harrison

Teletype

Company

an

Fascist

Trade

CHICAGO

Bldg.
4

2075

CG

129

Baum; Bernheimer Co.
KANSAS CITY

ST. LOUIS

to

United States under

COMPANY,

Inc.

gutter-snipe from Prussia, or a

disguised

Board of

4

DIgby 4-8640

,

Spain

YORK

Teletype NY 1-832-834

criminatory law, it is possible for
a

Broadway

NEW

the Allied Nations in
Yet, under our dis¬

of

war.

qAllen & Company
Established 1922

Pledger & Company, Inc.

Address

Celler

at

the

Congressman

by

}

Associate

165

Members

Broadway, New York

Nov. 4.

?

*

NEW YORK 4, N. Y.

Telephone:

Community Water Service 5 V&

.

Wire to

Direct

1946

s

?

HAnover 2-2600

Teletypes: NY t-1017'18 A

Dinner Forum at the New School
on

STREET

BROAD

30

LOS ANGELES
"

t *An

;

Members New York Security Dealers Ass'n

of the bill in
obviously just

progress

Press

STRAUSS BROS.

the friends of India to watch care¬

fully

1-573

Lot Angeles

Crescent Public Service 6s 1954
East Coast

RED ROCK

Eastern

BOTTLERS, INC.

MISSION DRY
Sold

-

,

Quoted

—

Pr.

American Cyanamid
Eastern

—

Service 4s

5Hs

1948

1951

Victory

Minneapolis & St. Louis Ry. Issues
Securities Co. of N. Y. A% Consols

SEVEN-UP OF TEXAS

Bought

Public

Minnesota

loan

Preferred

Sugar Associates,

bonds

Common

United Artists Theatre Circuit, Common

HoilRQSESltaR
ESTABLISHED

:

1914

„

?

■

\

\ • .»'• ."<•''*>

■

'[

Vv,\-J

.

"

SECURITY

DEALERS

ASSOCIATION

Bell Teletype

5, N. Y.

j

j' i"

?

v

?

Preferred

&

A

Common

j 50 Broadway, N. Y. 4

1«M>4

•

;}

HAnover 2-3380




Teletype NY 1-955

68 William

weekly

service

BOSTON:

•if

predicting

!

'

Street, New York

201

Devonshire
' •1

V

-

by

}

PETER BARKEN

id: -T.L vr

32

-

an expert

on

Dow's theory.

Send $t for Four Weeks' Trial

INDUSTRIAL

jl

.

■

/

Tete

GAYLOKU
204-C

NY 1-2500

gi

-

I

"®

,(

M

♦ mt

kit

INLAND BUILDING

»• »• *

r •

f

INDIANAPOLIS

».. r

.

t'.,.!.

t ■

,

*

i

«'

',

i.:

Knowledge

WOOD

•,

BONDS

STOCKS

INVESTMENT

>
■

Broadway, New York 4, N. Y./

Tel. WHitefrall 4-6430

■■■■

MUNICIPAL,
RAILROAD, PUBLIC UTILITY

»-

v

■

} GOVERNMENT,

-

r:?

^

*

v

future trends in the stock market

CHAS. H. JONES * CO.

Established

•

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

&

j

>.

Members New York Stock Exchange

NY 1-897

THE DOW THEORY BAROMETER"

•

! W. J. Banigan & Co.
to

*

Members New York Stock Exchange
J

Gilbert :& Bennett

-

'

R. W. PRESSPRICH 8C CO.

REQUEST

Successors

''

•

Gude, Winmill & Co.

' -'-Incorporated>'
Y.

American Insulator

xv?-V:..^v.->■

ANALYSIS ON

«*'>/'

*

DIgby 4-7060

Eliminator

Company
.

N.

Wall Street, New York

Carbon Monoxide
V

.{

63

Teletype: NY 1-375

Farrell-Birmingham
;-

MEMBERS

Trinity Place, New York 6, N. Y.

Telephone: BOwling Green 9-7400

1

FREDERIC H. HATCH & CO.

Specialists in Soft Drink Stocks

74

To-day

Subscribe
k

"

.

...

Experience

••

for Investors

*•

*'

m

'

~

1

fl:6

Fecililie|
\

:

BALTIMORE

Oregon Portland Cement Co.
»

Churchill
lr

,

,

{

*•'

•<

,

Good

Preferred

•;

,

(

Book value—around $18.

>

Distilling
'

„

1

'

war

period.

i>

.

through

all

earnings

l

.

'-i-

-j

benefit substantial¬

Company would

>

from tax reduction.
Oregon's
huge
highway
»dy
%, .,U "
ready to start.
ly

Davis Coal & Coke

'

program

Market about 11

Circular available

STEIN BROS. & BOYCE
Members

York

New

6 S. CALVERT

Bell

ST., BALTIMORE 2

Tel.

HUB

Teletype BS 69

1990

fected

Telephone Rector 2-8327

New York

Following the usual course of events, the Silver Question is
again. It will not down!
For more than three-quarters of a
tury it has in-;,
us

J

Teletype BA 393

Farm

*

BLAIR 6- CO.
'fh

I

/•'

Light Co.

New Recap

f

a

ago,

renewed

gets

and

life

comes

DES

low priced

•

speculation

aggres-r

market

•

on

/

Manufacturing Corp.
Reports furnished on request

?Hv' iv..

..

...

i

q

A.M.S.k,l.k.

%

the

silver

t

Silver

cohorts

urg¬

are

management suddenly decided to

ing President Truman to raise the
price of silver metal produced in
the United
States to $1.29 an

request

'■;

of

his

and

:

-

Pont, Homsey Co.
SHawmut Bank Building

v'

the

(the statutory limit) and to
forthwith coin the metal and put
it into circulation.
He has already
introduced a bill in the Senate to

Mercier, McDowell
& Dolphyn

BOSTON 9, MASS.

this

effect,

Members Detroit Stock Exchange

Teletype BS 424

.Capitol 4330

Buhl Bldg.,

New England

| Lime Co.
Chemical

-*■

John Irving Shoe common

H. M.

WHITE, NOBLE & CO.

Paint, Rubber, Paper,

MICH.

Phone 94336

TRUST

%-2).
still

Byllesby & Company

Stock Exchange Bldg. Phila. 2

I

GRAND RAPIDS 2

Textile Fillers

brief

mendous

these

showing

study

the

Penna. Co. lor Ins.

Corporation

Dayton Haigney & Co.
Tel.

STREET '

MASS.

Liberty 6190
Private

Rector

ceive

certificates

actively traded recently

(the year's range is

The fact that the stock is

nine

approximately

shares

(as under the first plan) or 15/6
shares, as under the latest plan.
Under the plan it is proposed!
merge into Long Island all the
principal
subsidiaries excepting
Kings County Lighting (control of
which
will
probably be lost)—
Queens Borough Gas'& Electric,
Nassau &
Suffolk Lighting and

to

Long

Gas.

Beach

Lighting

would

standing

(in

have

bonds

out¬

institu¬

addition to

tionally-owned

Island

Long

then

and

loans)
ferred

stock

bank

101,520 shares of 4%
(par

$100),

pre¬

and

Telephone '?

2-5035

stock
per

with

share.

stated

a

The

value of $1D

following

table

indicates the terms for each of

Los Angeles

tion to market value and

dividend

arrears:

(Continued

selling at 1V2, or about two

on page

2242)

Light

Common

Lives, etc.

BOUGHT

'

i

\

'

N. Y. Phone

Phila. Phone

Los Angeles
<

SOLD

—

QUOTED

Paine, Webber, Jaekson& Curtis

Land Title Bk. & Tr. Co.

1SI0 CHESTNUT ST., PHILADELPHIA

Philadelphia 2

;

^

—

F. J. MORRISSEY & CO.

Stock Exchanges

1529 Walnut Street,

N. Y.

Rittenhonte 8500

Hagerstdwn, Md.

Bell

Telephone—WHitehall 3-7253

Private Wire System bettbeek
Philadelphia, New York and Los Angeles

.

Whitehall 4-1234

System Teletype

/

Boston Phone
Enterprise 2050

PH279

Associated Gas & Electric issues

'•

General Public Utilities Corp. com.

ST. LOUIS

Associated Electric 5s 1961
.New England Markets'
New

England Coverage
/

Company

STIX&CO.

Common Stock

'

e'

,

">

Secondary Distributions

>

INVESTMENT

Bag & Paper Co.
Common

Industrials—-Utilities

f

?

Southern Advance

/

Bank and Insurance Stocks

*

Inactive Securities

•

f

-

SECURITIES

'

S09 OLIVC

<

STREET

'i/

BOENNING &. CO.
1606 Walnut

77 Franklin Street, Boston 10, Mass.

LIBerty 2340

St., Philadephia 3

Penny packer 8200
Private

Providence

Phone

W"
to

N.

PH 30

Y.

C.

COrtlandt

7-1202

Members St. Louis Stock Exchange

Gilbert J. Postley &
29 BROADWAY, NEW

-

"

Co.

YORK 6, N, Y.

Direct Wire to Chicago

Springfield




Portland Electric Power 6s 1950

'&?

St< Louis l,Moe

Tel.

-;

''

F. L. PUTNAM & CO., INC.

Portland

•

„

/'///V;/;/1 ;

T

Stock

•■V1
*

1953 & com.
Central Public Utility 5%s 1952
Crescent Public Service 6s 1954 & com.

Amer. Gas & Pr. 3-5s & 3.6s

Southern Colorado
Power

.<

the

principal security issues, in rela¬

ESTABLISHED 187»

York, Philadelphia and

Pittsburgh, Pa*

BUY VICTORY BONDS

on

BUCKLEY BROTHERS

New York

Portland, Me., Enterprise 7011

Retail

1,-

059,036 shares of no-par common

Public Service of Indiana

International Resistance'Com. & Pfd.

Members New

Tele. BS 596
York

New

in

partici¬

common stock—
whether each 100 shares is to re¬

the

by

pation

some

developed

stock

also be some continued con¬

fusion over the degree of

P. T. C. Com. & Pfd. 3s-6s
•

.

10,

has

may

Philadelphia National Bank

'

BOSTON

not immediately

Girard Trust Company

Request»

FEDERAL

25,

favor of

or

Common

Fidelity-Philadelphia Trust Co.

Textiles, Inc.

idland Utilities

75

with

revised

be

can

Common

of

shares.

on

filed

October

the present plan
modified in
the equity holders. There

strong hopes that

National Bank of Germantown & Tr. Co.

tre¬

Eastern
Circular

giving partial effect

Federal Water & Gas

possibilities

leverage

low-priced

He has been serving in the U. S.

Teletype GR l 84

r

PHILADELPHIA
A

a

Army for the past four years.

Delaware Power &

TeUtypB PH 73

Phone Rittenhouse 3717

BLDG.

Building Lime

-*■

formerly

PHILADELPHIA OFFICE

t

Members Detroit Stock Exchange

common

around 1-1 Vk

Wawaset Securities

;

which

have been

Warner Co. common

-

■

Magnesium

->

•<

Listed and Unlisted Securities

-^Metallic Powder

ing

f

Brokers in

&

were

was
on

low-priced holding company equi¬
ties this year, Long Island Light¬

Empire Steel Corp. com.
Pittsburgh Railways Co.

Dealers

plan

copies

terest

A

Botany Worsted Mills pfd. &

Underwriters & Distributors

new

Commission

garbled reports
par¬
ticipation of the common stock
appeared in the press.
In line
with the tremendous market in¬

Philadelphia Co. common

Michigan Securities

The

that
regarding

Dealer Inquiries Invited

Markets in

last spring.

taken

available in quantity, so

GRAND RAPIDS
"...

corporation) and work on a new
plan (presumably in collaboration
with the SEC staff) was under¬

but

1952.
(Continued on page 2243)

VICTORY BONDS

BUY

up

old

the

page

Tele. DE 507

Cadillac 5752

is referred to

which

"Chronicle" of Oct. 25, on

in the

Detroit 26

the fight.
Accordingly,
plan was scrapped (ex¬
cept insofar as it was technically
embedded in the articles of in¬

give

ounce

du

was

Harris, Upham & Co.

which was finally approved by the Commission December 14.
later the Company filed a certificate of reduction of capi¬

jurisdiction
over
Long
Island
irrational en¬ Lighting as a holding company
Purchase :(despite the company's intrastate
Act of 1934, whereby the national
operations). While the SECcl^ims
currency is diluted and unstabilwere
rejected by two Federal
ized, and rendered susceptible to courts it appeared likely that the
attack
because of vulnerability, Commission would carry the case
Senator Pat McCarran of Nevada
to the Supreme Court, and the

Shelter

Descriptive memorandum

fv'-I

satisfied

actment

Electromaster, Inc.

trading

a

of

Exchange.

Plan for Long Island Lighting

with the absurd and

underwriting

We maintain

itself.

ts

Not

DETROIT

Stock

plan. Trading in the new securities began on the Curb but
;was
quickly stopped when th<<S>
————
—SEC (presumably at the instiga- to three times its estimated statistical value under the new plan,
tion of a preferred stockholders'
committee)
asked
the
Federal seems to be evidence either of
courts to hold up the plan pend¬ unreasoning optimism on the part
the {speculative
public,
or
ing determination of its claim for of

favorable op¬

sen

Bell Tele. DM 184

828

members

to the

be¬

portunity ore-

IOWA

MOINES. 9,

in

financial

a

BUILDING

EQUITABLE
Phone 4-7159

Nicholson

Mr.

tal, etc., in the office of the Secretary of State,

sive whenever

An interesting

York

New

the

Street,

Two days

It-

fixture.

Common

CAPITAL STOCK

Seventeenth

Long Island Lighting presented a plan of recapitalization to the
Public Service Commission of New York about a year and a half

permanent

Packing Co.

with Boettcher and Company,

i-

Bloc,

have become

& Rys.

Preferreds

Rath

J '

/

Group in Con-:
gress seems to

Preferred s

United Light

;

Si1ver

the

Iowa Power &

cen¬

F.

Will

associated

the

..Like

INCORPORATED

with

become

economic

progress.

BOSTON

has

—

disturbed

bur

WHEELOCK & CUMMINS

Nicholson

COLO.

•

Chronicle)

Financial

The

our

has

BUY VICTORY BONDS

to

DENVER,

and

politics

DES MOINES

:

partner in

j

OFFICE SQUARE
BOSTON 9, MASS.

POST

10

Bimetallism.

Interests to Reestablish

e

LERNER 8c CO.

Stock
exchanges

Baltimore

&

Exchanges and other leading

i

(Special

and Threat
to Increase Treasury Silver Purchases and Dilute the Currency.
Re¬
counts Same Situation in World War I and the Fall in Silver Prices
Thereafter.
Contettds "New Deal" Silver Policy Maintained, Up to
the War, an Artificial Price for the Metal, and Predicts That Prices
Will Again Decline and That This Will Bring Out Effort of the Silver
Political Effect of Rising Silver Price

Economist Notes the

Capacity—900,000 barrels annually.

>

|

Boeltcher in Denver

SAKOLSKI

By A. M.

Class "A"

CoTtiftiwt

Bayway Terminal

W. F. Nicholson With

Question Again!

The Silver

|//fWe Suggest

Thursday, November 8, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

2206

J"

Volume 162

v! ?

.

Number 4436

THE COMMERCIAL & FINANCIAL CHRONICLE

G. I.

Exaggerated Inflationary

' i

2207

Four

Rejoin Staff of

J. F.

Profiteering in

Reilly & Co.

,

L

J. F. Reilly &

By ROBERT S. BYFIELD*

By HERBERT M. BRATTER

Investment

Analyst Argues That the Inflationary Psychology Engendered
by Articles and Reports of Many Economists Neglects to Take Into
Account Our Great Production Capacity Which Can Absorb the In¬
creased Monetary Supply.
Holds Because U. S. Depends Very Little
on Imports, Our Position Differs From That of France After World

Writer Recounts the Sources of Soldier

psychology

seems

Army Is Operating a Foreign Exchange Business
Encourages Dishonesty and Illegitimate Practices. Says Only the
United States Treasury Is Losing by the Transactions and Describes the
Attempts to Stop the Evil. Sees Need of Clarification of Army's Policy.
^ The1 story of American military currency -in the

panied by an unusual number of articles and reports by economists
reputation
bewail
this procedure might be defla¬
the
cumula¬
tionary, and might result in tak¬
tive unsound¬
ing something out of the* workers'
ness of a decpay envelopes.
h
ade and
a
Clients who have been readers
who

casional

of

Fed-,

financial

eral

policies.
must

the

it

of

theoretical
economics

alone,

the
and
credit policies
monetary

such, and

seems

the

as

'

difficult to get
Department to disclose

facts

has*

to

do

with

J

a

Robert

S.

Byfield

Active

in

price level.
Gov¬
high compared to
wealth, money in circula¬
tion has almost quadrupled since
1939, too much of the national
debt is carried by banking insti¬

crease

tutions

and

of

HAS

ADMITTED

BEEN

>

AS

A

LIMITED

PARTNER.

WE REGRET TO ANNOUNCE THE WITHDRAWAL OF

>

Mr. Fred A. Fendel
'

■

'

AS A

GENERAL PARTNER.

far

too

Common

variety.
It is
further argued that the Govern¬
ment, having financed itself by
lowest

interest

these

rates

in

if

rates

it

-..V

:

39

Request

New York Hanseatic Corporation
120

to

DONALD
*

Telephone:

BArclay 7-5600

t

1.

..

;

.

New York
EDWIN H. WARMS

.

'

NOVEMBER

Member New Ytrk Stock
LIMITED

Exchange

!

PROSKAUER

RICHMAN

;

DRYFOOS

GENERAL

Teletype: NY.1-584

'

■

Chicago Board of Trade
New York Produce Exchange
Exchange

Broadway

Member Neto York Stock

BROADWAY, NEW YORK 5, NEW YORK

"

shift the burden of the public debt

*Tor\ Stoc\ Exchange

/

GEORGE COOPER

his¬

seeks

.

r

on

Members 7i/cw

v

.

JACQUES COE

find it difficult to

now

f

•••

...

Analyses

-

Hew T or\ Curb Exchange J Associate)
Commodity Exchange, Inc.
Hew Yorlt Coffee & Sugar

UNITED LIGHT & RAILWAYS

is

much of it

JACQUES COE A CO.
•

Exchange

FART NEKS

PARTNERS

2, 1945

from the banks to

private invest¬
ors.
.Furthermore,
and this is
particularly important from the
orthodox
viewpoint, it is going
to be politically very difficult to
change
credit, policies
because

:•?* *

PANAMA COCA-COLA
Quarterly dividend paid October 15, 1945 -

"

We

pleated j to announce

are

that

;

*

Mr.

DIVIDENDS:

Byfield

Lewisohn

is a partner in
Co., members of the

&

New York Stock

$2.25 —'1944 $2.75

(to date)

1945

Exchange.

—

WILLIAM. H. GARDNER

1943 $4.50

Customer Service Department

Approximate selling price—30

SYDNEY HOLTZMAN

New Analysis on request

V--..•

:

General Manager

American Bantam
,

Com.

&

■
•

•

X-

: ESTABLISHED

74

Angerman Stores

Dealer

Trinity Place, New York 6, N. Y.

Telephone: BOwling Green 9-7400

,

ROBERT A. DUNCAN

1914

Specialists in Soft Drink Stocks

Pfd.

Sales

&

Service .Department

NORMAN W. THOMPSON

Teletype: NY 1-375

Statistical & Research Department

\

'

.

-

-

have returned from the Armed Forces

Automatic Signal

and

are

now

associated

with

Firm

this

*Dri-Steam Products

General Public Utilities Corp.

^International Detrola

J.F.Reilly&Co.

(Successor Company to Associated Gas & Electric)

Members

New

York

Security Dealers

Association

>

40

Bought—Sold—Quoted
Common Stock

—

New York 5, N.JY.

Exchange Place

When Issued
Telephone

*Circular.

on

Memorandum

J. F.Reilly&Co.
.•«**•<

;

New York Security Dealers Assn.

40 Exch. PL, New York 5, N. Y.

70 Pine

Bell

System

Wires

to

Chicago

&

Co., Inc.

We

are

pleased to

Mr. D.

N¥

Teletype,

Chicago-Los Angeles

1-2480

Los

>

announce

WHitehall 4-4970

Kingsley Waldron

Teletype NY 1-609

Angeles

has become associated with

rr

in
s: We

believe

cement

companies

our

*

J:

will

-fl

WE SUGGEST

and

Curb and Unlisted

f-

Oregon Portland Cement

| Mr. Charles M. Daull

Securities

-

Mr. William M.

Consolidated Cement
Circular

on

request

Riverside Cement

„

in

<

MICHAEL

viiH,:

t

Circulars

!.

'Sj-yt

•

•

67 Wall

Street, New York

Telephone

HAnover

2-9335

Teletype NY 1-2630




;

I

Inactive
10

POST

Securities r

OFFICE

'

Joseph McManus & Co.
'

*

SQUARE

BOSTON 0, MASS.
/

Tel. HUB

1990

Teletype BS 69

"

Sales

Doherty V

Department

W. J. Banigan & Co.

■

LERNER 8c CO.

our

,

-

Available
_

JAMES M. TOOLAN S W

HEANEY, Mgr.

WALTER KANE, Asst. Mgr.

Spokane Portland Cement
,•'i

us

Trading Department

operate at capacity for several years.
:

that

Street, New York 5, N. Y.

HAnover 2-4785

Private

Private Wire®

NY 1-2480

Request

G. A. Saxton &

Members

■■■-■

on

HA 2-4785

Teletype

Request

Members New York Curb

Exchange

'

50

Chicago Stock Exchange

39 Broadway
Digby 4-3122

New York 6
i

Teletype NY 1-1610

Scranton, Pa.

re¬

associated with the firm.

Richman proskauer

MR.

Common

Pfd. and

Part.

short-term

raise

now

AS A GENERAL. PARTNER AND

ARDEN FARMS
$3

tory, will

are

the

national

the

have

turned from the armed forces and

•

ernment debt is

the

Statistical and

Department,

Trading Markets in

great in¬

very

Sales

Dealer

HAS THIS DAY BEEN ADMITTED

the

•

in

W. Thompson,

Research

*

•

could

result

Duncan,

Department, and Nor¬

-MR. DONALD DRYFOOS

Government

A.

Service

man

war

we

*

of the Federal

Cus¬
Syd¬

WE ARE PLEASED TO ANNOUNCE THAT
'*

which

to be very

War

the

on

have profiteering which an unknown
not hesitated to criticize practices, but apparently large proportion of
which sought * to i iiullify some • of GIs have engaged in Europe. The
the
obvious ; laws
of economics problem arises out of the sale of
which, regardless of the growth goods—both personal property of
of technology, must remain im¬ the GIs and stolen military and
mutable.
Nevertheless, it is our other supplies—at often fantastic
opinion that while there may.be prices in terms of European local
(Continued on page 2220) C;
(Continued on page 2239)

on

basis

Market Comments for the

economists

ad¬

mitted that

mains to be clarified and

past several years well know that
we have no quarrel with orthodox

It

be

our

Gardner,

Department;

guarded
press
releases
jointly by the Treasury

out

put

and War Departments. One aspect
of V the question which ^ still re¬

,

of

Robert
&

H.

Service

Holtzman, General Manager;

ney

is one
which has had to be told piecemeal because the
facts have been
obtainable chiefly from the oc¬

of

half

tomer

Which

to be accom¬

William

that

Profiteering in the Occupied

Areas and Contends the

War I and That There Is No Danger of Dollar Devaluation.
The present wave of inflationary

Co., 40 Exchange;
Place, New York City, announce

Investment Securities

Broadway, New York 4, N. Y.
Carlisle, Pa.

,

,

THE COMMERCIAL &

2208

period ending Feb. 28, 1945 were
11.26%

that sell above par.
:
t

V

v

,

--

-

6s 1953VBuilding 5%s 1963--.Midtown
Enterprises 5s 1964
—
110
Prince & Lafayette Street Corporation 5s 1952
125
Trinity Building 3s 1949
*01
In the case of the majority of these issues, these bids have been
result of the reduction of the issues represented, either in re¬
Estate

Jones

'~\4 Lincoln

;

was

117
101
J03 "
112
163

1952
3s 1953

,

ing $21,000,000.
Previous to re¬
organization the debenture issue
paid oIT and at the time of
reorganization each first mort¬
gage bondholder received a new
$500 bond. Important to the bond¬
holders at the time of reorganiza¬
tion, was the purchase of the
leasehold portion of the property
and the furniture and fixtures of

'.J-'A

.

i Bing & Bing 7s 1950--.
Equitable Office Building 5s
East 30th Street Corporation
Hotel Lexington 4s 1955

,

Savoy Plaza Hotel 3-6s 1956
selling in the middle 70s—The
Company originally had two first
mortgage
issues
combined,
amounting to$14,500,000 and a de¬
benture issue Of $7,000,000, total¬

Real Estate Bonds
Real Estate Bonds

Those used to the large discounts at which
have been selling, will be interested in the list of

the bonds.,

on

Thursday, November 8, 1945

FINANCIAL CHRONICLE

Hotel, Which are now addi¬
tional security for the bonds.
In
the
order to purchase the leasehold
organization or nnAiin^inri earnings^I
by good nf
iK.
fact that the bonds carry with portion of the property and pay
permitting the operation of sub¬
them stock representing a share reorganization
expenses,
it was
stantial sinking funds, plus the
in the ownership. This share, of necessary to place a first mort¬
course, becomes more valuable as gage ahead of the -bonds of $2,the funded debt ahead' of the
800,000. This loan has now been
reduced to $2,000,000 with the in¬
equity is being retired.
Promise
for
enhancement
in terest cut from 5% to 4 Vz %. In?
value for other Real Estate Bonds terest will be further reduced to
Bond issue
because of the same reason seems 3%% Oct. 1,' 1946.
to be apparent in many other is¬ reduced to $7,000,000 due in 1956
and
still
outstanding: in
that
sues, for instance:
REAL ESTATE
amount
carries
with
it
stock
Governor
.Clinton
Hotel
2s
representing an equal share in
1952
SECURITIES
selling in the low 80s—
60% of the ownership of the prop¬
These bonds came out of reorgan¬
ization in 1937 as a second mort¬ erty. Property is assessed at $10,800,000. For the year ended July
Primary Markets in;
gage bond with a $750,000 loan
ahead
of
them.
This loan has 31, 1945, percent earned on the

Construction Costs and House
Price Controls Discussed
Senate Small Business Committee Hears Chester

Bov/Ies, OWMR Direc¬
Snyder, and Other Officials as Well as Representatives of the Build¬
ing Industries on the Problem of Curbing Prices and Sales of Homes.
OPA Drafts Bill to Control Prices of New and Existing Houses.
tor

Stating that sales prices of houses have increased from 30 to 150%
throughout the country and that production of new housing in the
next

bonds

4's

Hotel St George,

4K's

165 Broadway,

870-7th'Ave. 4%'s
(Park Central Hotel)

N.Y. Athletic Club 2-5's

(Sherry
Netherland
Hotel)
5%s
1956,
bonds selling below 70, came out
of reorganization in 1935 with a
Sherneth

Corporation

$6,000,000 bond issue. Since that
time $497,800 bonds have been re¬
tired or cancelled, reducing the is¬
sue to $5,602,20.0.
Property is as¬
sessed at $3,585,000. Bonds are a
first mortgage
and carry stock
representing ^an equal share in
88.4% of the ownership of the

13.35%.

4's

Beacon Hotel,

11.06%.

was

*

Lewis Morris

Apartments 4-5%
bonds due Aug. 31, 1951, selling
1944 earnings on
in the low 90s, came out of re¬ property.. In
the bonds were 7.55%.
organization in 1936, Since that
61 Broadway 6% 1974, selling at
time
$208,700 bonds have been
retired,
reducing the issue to about 98, was reorganized only
last year and the first mortgage
$840,800. Bonds carry stock rep¬
resenting an equal share in 100% was cut in half, each bondholder
of the ownership of the property.
receiving a $500 bond for each
Six: months
earnings for the $1,000 bond formerly held. Bonds
.

SHASKAN & CO.
►K'v

Member* New Yorlt Slock Exchange
Memhert New York Curb Exchange

40 EXCHANGE PL, N
Bell

Dlgby 4-4950

.Y.

Teletype NY 1-953

We buy and Sell;

SPECIALISTS

Certificate*
and'

TITLE CO.

/

/ {•

,

"

•

.V;.'

'

f

>\

ln

■

Real Estate Securities

PRUDENCE AND ;>-*■
'-i

.

'

•••••

i

Mortgages

v*

.r

5.

>'*,\ v

t i

Since

1929

infla-

o

r

a

n

by this subcommittee

In

Mr.
pointed out that 1,500,000
are reported to be "doub¬
ling up," and this figure is ex¬
pected to be increased by 2,000,000
families

American

public, Ches¬
Bowles,

ter

new

first

an¬

potential demand for 1,250,000
The construction
industry will not be able to build
more
than
400,000 to
500,000

homes per year.

last week, be¬
fore the Com¬

Bowles

Chester

the

homes

Senate

Small

Busi¬

Committee, of his legislative
plan to control the prices on new
and existing houses.. : r
\ This proposal, coupled with an
expansion
of
dollars-and-cents
ceiling prices to include all im¬
portant
building materials and
contractors' services, was the deness

in

mand

Subittee

comm

of

for

1946.

with them stock represent¬

ing an equal share in 98% of the
ownership of the property.
The
bond issue is now only $3,961,000 compared to an
of

assessed value

$7,800,000 for the property. For

the
1945

7.66%.

was

Feb.

indicated

earnings

bonds

ended

months

six

28,

the

on

low

Hotel), bonds selling be¬
Issue

90.

First

reorganization.??
ahead

of the

cut in

was

bonds

half in

The Office of Price Administra¬
tion has

authority to set dollarsall factors of

and-cents ceiling on

construction and will

immediately
Bowles

reduced

$900,000

barometer of the

of

value

assessed

as

possible.

many

ernment has

ahead

move

Mr.
prices
costs of construction
However, the Gov¬
no authority to con¬
according

establish

to

as

to

these

trol the

selling prices of finished
either new or old, and
legislation will be necessary to
houses,

establish such

a

program.

In

urging the enactment of this
legislation, Mr. Bowles explained

hotels

in

New

*

things:

\ '

r

Bowles Explains Legislative
Plan for House Price Controls

Mr.

mortgage

now

plus bond issue of
$4,055,200 places funded debt of
the Hotel at $4,955,200 compared
to
assessed
value of $6,725,000.
Bonds carry stock representing an
equal participation in 66%% of
the ownership of the property.
1944 earnings on the bonds were
16.14%.^
to

de¬

that he believed it would do two

„,

870 7th Avenue 4%s 1957 (Park
Central

The pent-up

homes, aggravated by
veteran needs, will*Jn Mr. Bowies'
opinion, force prices on new and
existing
homes Unto a
(dizzy)
spiral within the next year./ f

on

carry

12,500,000

t—a

nouncement

plaints

estimates

He

homes will be needed in the

United States in the next 10 years

istrator, made
the

1946.

in

Admin¬

OPA

support of his program,

Bowles

the

of

hands

on problems
construction in¬

confronting the
dustry.

y

pressures
of
"spending
money" in the

An interesting

REAL ESTATE BONDS

with-

stand

CI

off and $62,000 of
the bond issue has been retired,
now leaving as a first mortgage
a bond issue of $4,937,500.
Prop¬
erty
is
assessed
at
$4,500,000.
Bonds carry with them stock rep¬
resenting an equal share in 100%
of the ownership of the property.
For the year ended 8/31/44 per¬
centage earned on the bonds was

;——

la.yed bomb which exploded in the
midst of three-day hearings held

sibly

the

since been paid

year

cannot pos¬

"First, it would prevent
lative

specu¬

reselling of
existing
homes.
The price at
which any existing home is first
sold after the passage of the legis¬
lation
would
automatically
be¬
come
the
ceiling price on that
buying

in

home

case

and

of

a

sale.

future

Obviously this arrangement would

place

restriction on the price
present owner would

no

which
receive

the

the first sale.

on

"Provisions should of

course

be

York

Seligman, Lu bet kin & Co.

SIEGEL & CO.
39 Broadway, N. Y. 6

Incorporated

<

Members

DIgby 4-2370

41

Broad

York

New

/

...

tor

the Hotel

On Nov.

Warwick.

or

Court

hearing will be held
accept an all
cash offer for the property of $2,100,000. The property is assessed
at $2,700,000.
y: f S r V :

27

a

to decide whether to

Security Dealers Association

Street, New York 4 ;

Teletype NY 1-15)42

City,
compared
to
their made for
adjustment of ceilings
actual value,
might be gleaned in cases
where improvements have
from a cash offer made this week
been made after the first sale

HAnover 2-2100

DAILY "FLASH" BULLETINS
—

OFFERINGS WANTED

| FOR DEALERS

Broadway Motors Bfdg.
'•

'"¥

4-6/48

-

If you

w,

bulletins

on

Montgomery St., San Francisco

,

,,

Teletype SF 61 It 62

\J

'*■

,

,

supply you via first class mail with all future

issue—at no cost or obligation,

.»

will also appreciate your requests for Bids or Offerings

Securities.

|

c

.

L '

New York 7, N. Y.

TeL BArclay 7-2360

ing price so that a person who
buys a home and later decides to
sell will not have to take a loss.
lish price

These ceilings would be set

suffi¬

ciently high to cover all costs of

Partnership in Investment
House.

production (not in excess of legal
(Continued on page 2230)

Ample

capital available.

Box C-

Banking

111,

Incorporated

150 Broadway
:

\ *•

Amott, Baker & Go.

;

4

•

issues and

each
we

all Real Estate

;

J. S. Strauss & Co.
Bell

on

Of course

s.

7 ,■

will tell us which Real Estate issues are of interest to you, we

will index the

•

155

?

timely topics.

Midtown Enterprises
.5/64

WANTED

important news on one or more Real Estate issue
clears
through
our
Real
Estate securities Statistical Department.
Dealers are invited to use our "Flash" Bulletin Service covering these
day

every

special
circumstances
the
first
sale.
It

would be proper also to provide
that the customary real estate
commission be added to the ceil¬

"Second, the plan would estab¬
ceilings on new homes.

—

Almost

where

surrounded

The

Commercial

&

Chronicle,

25

Financial
Park Place,

Salesman Available

New York 8,
Experienced Security Sales¬

N. Y.

desires

man

Teletype NY 1-588

house

position

handling

with

diversified

classes of securities; Box SE

Real Estate Securities
Prince & Lafayette Streets
5s

Lott

'52—New

York

,

Allerton Ne« York

|f

Corp.

Hotels, Inc.—Chicago

Devon

Corp.

Income 3-6s 1955

Detroit

w. s.

Louis

'■

Circulars

on

request

All

Plans

for brokers and dealers only.

Myles Standish Co. Boston

Its

&

Co.

135 So. La Salle St.

Walter Murphy, Jr. & Co.

Central 4402




-i:'i V;V'

*

^ Incorporated

131 Cedar Street

49 WALL STREET,
HA

2-6470

y

•'

s

New York 6, N. Y.

Telephone COrtlandt 7-5060

NEW YORK 5
Teletype

NY

1-1440

Boston Chicago

Park

Place,

Russian Interpreter

Guenther taw

-

CHICAGO

CG-81

y ■

-

25

New York 8, N. Y.

Br anches

Prepared—Conference Invited

Albert Frank

Valiquet

Chronicle,

ADVERTISING
In

Roosevelt Hotel, Common
St.

118, Commercial & Financial

FINANCIAL

'Philadelphia San Francisco

woman,
Vassar
knowledge "Russian and
credentials),
desires
connection with interested
New
York concern. Box L118, Commercial &
Financial Chronicle, 25 Park Place, New
York 8, N. Y. .;V- ;
V-.??

Russian

alumna,
French

born

American

perfect

(U.

S.

Government

Volume .162:, Number 4436

Holds

THE COMMERCIAL & FINANCIAL CHRONICLE

High Level Auto Output
Increased Wages,' Profits

|

2209

NASD Censures HaSsey, Stuart & Co.

;

In Connection With

Underwriting Connecticut Light Securities, Business
Conduct Committee Criticizes Firm's Action in
Seeking Opportunity 10 j
Bid, and Charges High Pressure Methods. Firm Replies That Complaint
Commerce Department Makes Estimates on "Projected" Was Based on
Misconceptions, and That Its Actions Were Designed io
Post-War Production and Says: Case Is Illustrative
>: /
"T
o|f •Help the Seller.
Other Industries With Large Volume Output.
The National Association of Securities Dealers, through its Busi¬
■

v

_

Conduct; Committee, issued findings Nov. 2 censuring Halsey,

ness

Secretary of Commerce Henry A. Wallace, during his press con¬
on Nov. 1 released a report issued by his
Department, dated
Oct. 25, in which it is estimated«e>that under high level operationsj productivity
have been
elimL

&

which

decision follows in full:

ference

will

automobile

the

experience

industry

illustrative

is

with

industries

of

earning power under con¬
ditions of volume operations."
v
Continuing its analysis, the re¬
port states:
Using projections of the prob¬
high

,

able sales for the next three years,

profits were calculated after an
analysis of cost-price relation¬
ships.
The resulting estimates
shown

are

on

the

below.

chart

Using 1942 prices for the products
of
the
industry,
this chart is
drawn on the following assump¬
tions
with respect to passenger
car
production and the changes
from current wage rates and ma¬
terial costs:
Material
Production

Wage rates

(Millions)

hated.

the next few

over

substantial wage increase
to employees can be granted and
high profits maintained. The re¬
port adds that "the automobile in¬
dustry is not an average case but
years, a

costs

(Increase over 1945)

1946

3.5

15%

No change

1947-;

5.5

25%

6.0

25%

5%

The 25% increase in wage
would

bring

the

into

account

increases

that

times

several

the

have

in

the

past, nor a probable spurt in pro¬

given to the probable
decision by the industry to intro¬
duce
major
changes
in
their
was

nual

over

in

increase

the

to

each

the
of

effects

an

bile companies.

chart

<

..,

that

shows

increase

in

.:lV

with

a

rates 1946
profits would be less than in 1941.
wage

of

The increase in materials costs in

the past four years and the rise

levels

is made under
Article III, Section I, of the Rules
of Fair Practice of National Asso¬

n

past

wages,

and

(Continued

on

on

forecast, ex2231) Y

page

commercial

The

record

in

this

reference

case

siderable

favor

which

of

argument in

competitive
bidding
which found its way into the rec¬
ord

is

extraneous

disregarded.

•

be

It is not competitive

but father
tactics in attempting
itself an opportunity
is in question.
The

bidding,

this

should

and

committee

respondent's
to

for

secure

to bid, which
issues before

would

be

essen¬

In

The

called

1. That

the

reasonable

conduct
in

respondent

by

exceeded

bounds

its

of

decent

action
negotiation

aggressive

to force a
complainant.
2. That
respondent's
proposal
made at the Hartford hearing was
not made in good faith.
!
3. That respondent's conduct at
the
Hartford
hearing was im¬

trying

with the

The

for
complainant's president

then advised

record

shows

that

the

that

com¬

"Conditions do not permit a
favorable consideration of your

request/'

/

Not content .with three rebuffs
which would have been sufficient
for many, respondent sought to
enter

a

to

proposal

make

such

it

on

an

cha 11

e n

g e

d

soundness

the
of

6,*—

the

report

[see adjoining
column] of the

circumstances

difficult

It

proposal.

was

ignore

a

high-

attempt to sen respond¬
ent's services and to compete for

pressure

Commerce
a.

letter

in
to

A.

Wallace.

"the

only

reduced

labor

Mr.

It is difficult to define exactly
the
precise
conditions
under
which aggressive efforts to estab¬
business contacts

(Cnotinued

re-;

cease

on page

question

to

efficiency

in

which

crease -

"in and
Romney

Geor,.

se,f„

of itme£|nt

mating

the

criticized by Mr.

K

Bureau

of

Labor

Statistics

193-3-1939

as

the

future

profits

Pierce, Fenner & Beane,

is

guson

ment

for

esti¬

are

was

SCHENLEY

itiVESTMent

"Forewarned.;'

be

By MARK MERIT

,,

BANKERS

Members New York Stock Exchange
Other Leading

S.

UCMBCSSt
NEW

20

PINE

NEW

STREET

YORK

5




YORK STOCK

YORK

CURB

r".

and

In

our

important

war

of this important message
to all of us in
'

Private Wires

•

Home Office Atlanta

I,

their savings

by all sorts of get-

•

Phone LD-159

ulate

the

Commodity

Research

splendid efforts to

the holding of present

bonds to

maturity—pointing

out the

RED ROCK BOTTLERS, Inc.
,

Copy of

letter to stockholders,
dated October 20, 1945, outlining
company

,

/ •'

Expansion

;

established

1914

profit to the holder, who
becomes an instrumentality, in the

74

the

fight

against

dreaded inflation.
We

child

bond

hope
in

every man, woman

America

will read,

investments."

FREE—Send

-

mark

,

Trinity Place, New York 6, N. Y.

Telephone: BOwling Green 9-7400

in

meantime,

and
and

heed, "how to protect your war

;

Specialists in Soft Drink Stocks

EXCHANGE

A

with memories of

erty Bonds were swindled out of

Bureau for its

available on request;

BUILDING

us

whep many of the holders of Lib¬

Hon Rose Slfcgsim

FRANCISCO

anyone

what occurred after World War

*

RUSS

very

rich-quick schemes, will congrat¬

'T

SAN

a

being given
Those of

INVESTMENT SECURITIES

Direct Private Wire

15aa

desk this morning

opinion, it is vitally

Schenley.

Exchanges

BROKERS OF BONDS, STOCKS, COMMODITIES

EXCHANGE

SAN FRANCISCO STOCK EXCHANGE

on our

T:

Treasury Department and

A copy
is

UNDERWRITERS AND DISTRIBUTORS OF

Kaiser & Co.
NEW

CORP.

holding war
specifically how to
protect the holder from loss and
get the most out of his bonds, I;.,;;;

Plan of Proposed International

A list of these stocks is available upon
request
over our

DISTILLERS

bonds. It tells

the New York Curb

Quotations apd executions promptly handled

women

NOTE—From time to time, in this space,,
there will appear an advertisement which
we hope will he of interest to our
fellow
A mcricans. This is number 106 of a series.

reau.

also

Exchange
also
traded on
the
San
Francisco
Stock
Exchange
between the hours of 10 a. m. and 5:30 p. m.
(E.S.T.)
17

few

business.

important to

Romney.

FRANCISCO TRADING IN NEW YORK STOCKS
on

the

SCHENLEY DISTILLERS CORPORATION

war

Twenty-twfr stocks traded

of

one

was a re¬

Mrs. Fer¬

executives in the invest¬

account

encourage

SAN

of

the National Better Business Bu¬

of

basis

manager

pared with the cooperation of the

varying
bases of comparison. At times, the
Department used passenger cars,
parts,
refrigerators
and
other
goods made by the auto compa¬
nies, without clearly defining "the
automotive industry."
Use by the report of th e years

higher profits.
;.
ry'T*\
Regarding this point Mr. Rom¬
ney Teferred to studies made by

Ferguson,

by the
Commodity Research Bureau, Inc.,
82 Beaver Street, New York, arid
is copyrighted by them. It was pre¬

compared with prewar levels."
Romney also took exception,

partment, for its

in¬

Ora

Mrs.

the : trading
department ' of the
Louisville office of Merrill Lynch,

that 85 million Americans hold

Mr.

that

an

Ferguson Visits

Wall Street

ject, "how to protect your war
bond investments!." Itinformsus

in his letter to the Commerce De-

show

W.

booklet.- It is written oh the sub¬

plants is closer to 25% than 50%

ductivity
of
labor will

are

::

We have

the

3$

use

municipals,
Murray

and

what we believe is

about

He

pro¬

Moss

Mrs. Ora

2237)

Romney

assumption in
the
report
the

G.

bonds. The booklet is issued

the

-

denied

in ;Texas

Jack

'

automobile industry is its extent—
whether the decline
in
specific

Secretary

Henry

time,"

stated,

izing

U.

this

Republic Bank Build¬
to Murray W.

successor

trial and municipal issues, special¬

the issutr iinder competitive bid-?

1935-40.

"At

the

as

ding.

—

tween

in

ces

ing,

as

embar¬

and

which, he held, showed that labor
productivity declined
11%
be¬
tween
1929-39, while unit costs
per
worker increased 21%
be¬

Department of

Formed in Dallas

occasion

rassing for complainant to

the

,

Moss, Moore & Co.

cent visitor in Wall St.

George Romney, Manager of the Automobile Manufacturers
Association, according to a special dispatch to the New York "Times,"
Nov.

eastern

Moore.

telegraphed respondent:

GeorgevRbmney, of Automobile^ Manufacturers Ass'n,
Denies That Labor Productivityin Industry Has Increasecl
dated

re¬

On April 20, 1945, after receipt
of a further request from respond¬
ent
to
be
allowed
to
bid
in
this very transaction, complainant

lish

'V;. •'

proper.

of

group

.The

several

Moore & Co., Inc. Partners in the
Mr. C. B. iirm, which acts as participating
respondent, distributors and dealers in indus¬

1945,

acting
on

was

and under

stance:

high- I

plainant would.'not deal with
spondent.

same

complaint charges in sub¬

January,

Stuart,
arid

a

ject to registration requirements
and had omitted all that part of
the proposal which provided for
subsequent competitive bidding.

a!

purchase in¬
large privatelyowned blocks of stock. No change
in management is contemplated.
cludes

confidence
and
trust | ;
DALLAS, TEX.—Moss,.. Moore
in my opinion
should! & Co. has been formed with offi¬

of its securities."

if respondent had
proposal to purchase com¬
plainant's bonds at 107 V2, sub¬
made

was

exist between issuing companies
and the underwriters or
buyers

A very con¬

amount

the

up

so

of

resenting

stockholders.

and

unreasonable and un¬
fair and not calculated to build

to

issue.

an

was announced by Donald A,
Loftus of Washington, D. C., rep¬

handed,

honor

is

Directors

ing me an
replied to your letter

.

of

Inc.;

giv¬
opportunity to have

and
just and equitable. prin¬
ciples of trade."

full

of

stock of Investors Syndi¬
cate, Minneapolis founded invest¬

to the Commission without

"A member, in the conduct of
his business, • shall observe-high
of

Board

my

MINNEAPOLIS, MINN. — Ac¬
quisition of the majority of the
common

company, by Bert C. Gam¬
ble, President of Gamble Stores,1

"I feel that the method that you
to

Bert C. Gamble

ment

~

unsuccessful

followed in going over my head

.

Auto Producers Challenge Data
Issued By Dept. of Commerce

—

been

complainant.
On Sept. 21,
1944. complainant wrote respond¬
ent ; in part as follows:
y
"

ciation of Securities Dealers, Inc.,
as follows:

standards

had

in earlier attempts to do business

which reads

tially the

.«

equal

period
production

complaint

such, is not

assumption, that
the
probable
wage
increases
throughout all manufacturing may
affect prices of many automobile
materials suppliers. The assumed
increase,
however, is generous.
The; sales figures represent not
only passenger cars, but also re¬
pair parts, trucks, and a small
percentage of other products pro¬
duced normally by the automo¬
on

increase
1919-1941, after

year

annual

average

This

is

based

•

with

models in the next few years. ;f
The increase in materials costs

year (exclusive
military products) will prob¬
ably be about 8% below 1941,
profits accrued from these sales
be
pay
for the- longer work week.- would
approximately
oneThe productivity of labor presents third lower.
Profits before taxes
a problem, but in the chart on the
would, however, still be higher
subject we have assumed ah an¬ than in any year prior to 1941.

$60 weekly
envelope for the 40-hour week,
the same as the recent take-bome

',

competitive
bidding that it- is necessary to
state that competitive bidding as

The

a

in<*

-

hourly, While sales next

average

to $1,50, giving

pay

methods

business of the Connecticut Light
Power Co. 1 The opinion and

machinery

tion

its

for

spondcnt

that can be expected
from the introduction of the new

and machining tech¬
niques developed during the war.
On the other hand, no considera¬

Co.

,

ductivity

15%

rates;j

take

rapid

more

assumption

productivity

not

occurred

3%

1946——

.

This

does

&

Stuart

trying to obtain- the underwriting

Investors Syndicate
Control Acquired by

Teletype: NY 1-375

corp.,

merit

a

postcard

of schenley

'

or

letter to

distillers

350 Fifth AveN. Y. 1, N. Y.,

and you

will receive a booklet contain¬
ing reprints of earlier articles on various
subject^ in this series. ....

Chicago Brevities

Trading Markets in
*

Bunte Bros,

equipment and other assets of its
etihcilillfirV
"fVlT
flU**
sleeping car subsidiary for ap
proximately
$75,000,000 to- the
railroads
last
Spring,
when it
elected to dispose of its service

C. L. Schmidt & Co.

."3?

Established 1922

Street

,

Tele. CG 271

Tel. Randolph 6960

/>£**»

operating unit to comply with an
antitrust decree. The offer, how¬

CHICAGO 3
i

evoked little interest among
the railroads at the time.
ever,

railroad offer is in

The present

CARTER H.C0RBREY& CO.

effect

'a--?-::-

.

•

Middle West

—

.•

recomputation of depreciation and
for deferred mainte¬

•

Other bids to buy the service

MARKET

investment

CG 99

State 6502

of Cora-

Steel Spring Company

The latter offer,

manufacturer.

LA 255

acquisition by

Is based upon the

of

Spring

Steel

Standard

parts

automotive

Pa.,

opolis,

650 S. Spring St.
Michigan 4181

135 La Salle SL

house;

Forgan & Co., Chicago
firm; and Standard

Glore,

LOS ANGELES 14

CHICAGO 3

Co.,

&

hanking

Cleveland

DISTRIBUTION

Pullman

Otis

by

made

were

from

unit

operating

UNDERWRITERS
SECONDARY

and obsolescence.

nance

•

.

modifica¬

with

proposal

allowances

Pacific Coast

For-V^C-iv-.

acceptance of Pullman's

Modifications sought are a

tions.

Wholesale Distributors
if.-'•/; v:

an

earlier

Member, National Association
of Securities Dealers,

^>3

Recommendations arid Literature

-

It is understood that the firms mentioned will he

Among the bids was the

eldoiniHid"

>120 South La Salle

to send interested

as¬

possible

earnings

just

$17,171

de¬

the

for

despite

ended,

in

crease

a

on
the outlook for
Alaska Air Lines, Inc.; All Amer¬

ental Air Lines, Inc.;
Corporation; Expreso Aereo InterAmericano,
S.
A.;
Inland Air

unusually good mar¬
ket for its products, Westinghouse
Electric
Corporation's
prospects
for profits are clouded as a re¬
sult of wage demands and rigid
OPA price control, A. W. Robert¬
son, chairman, stated in reporting
earnings
for the nine months
ended Sept. 30. Net for the first
nine months of the year dropped
18%
to
$13,673,825, or $1.05 a
share

an

the

on

common

and

Inc.; Mid-Continent Air
Lines, Inc.; and Taca Airways, S.
A.—Troster, Currie & Summers,
74 Trinity Place,
New York 4,
N. Y.

and

of $40,000,000, for
purchase
vby the railroads under existing
options modern lightweight
sleeping cars and parlor cats
now
owned by Pullman, with
ing

Consolidated Gas
Utilities Corp.

Chicago Corp.

Circular

•

Completion of the pur¬
chase would be contingent upon

HICKS & PRICE
Exchanges
Chicago Board of Trade

Members Principal Stock

Co., 14 Wall Street, New York 5,

—Abraham & Co., 120 Broadway,
New York 5,

of

period.

*

Com*
Tubes Co., Com*

Request,

Mai RDavis &Go.
Established

1916

Members Principal Stock Exchanges
<:

Chicago Board of Trade

;

;/V

>:«

*

o

of Pullman, Inc., continued to
experience difficulties in meet¬
ing scheduled delivery of troop
sleepers as a result of a strike at
Simmons
Company,
Kenosha,
Wis., which tied up delivery of
1,200 beds for installation in the
sleeping cars.
Out of 350 cars
scheduled for delivery in October,
only 40 had been completed. The
order placed with Pullman-Stand¬

Also available Is the Fortnight¬

ly Investment Letter.

building

the

on

floor space of its

More

Bissell

<

of !

f

i'fi

A traction

hearing on objections
to the amended plan for purchase
lines

and elevated

&

bulletin—Laird,
120 Broadway,

Meeds,

Indianapolis, Ind. r ;

Rockford, 111.

v>

-

Cleveland, Ohio

by thd Chicago Transit Authority
was
scheduled
before
Federal

Real

Estate

Security

$

Dec. 31 to
of the already

veterans.

war

Marshall

Coal & Coke

Four

Wheel

Auto

the

company's Chicago properties,
Reporting

COMSTOCK & Co.

Jl,033,819,

CHICAGO 4

'"if

'

050,990,
the

a

30,

net profit of *

45 cents a com¬
$1,-

share, compared with

mon

Dearborn 1501

or

the

earnings for
ended Sept.

showed

Yield's

"

Teletype CG 257

quarter

42 cents a share for

or

corresponding 1944 period.

The

of

refunding

recent

Sale

lines.

the

to

volves

Blair &

Co.—descriptive memo¬
interesting low-priced
speculation in financial under¬
writing—Du Pont, Homsey Co.,
Shawmut Bank Building, Boston
9, Mass.
on

Railroad—cir¬

Boston & Maine

&

Peck,

Wall

63

Central
New

Paper

Company, Inc—

analysis—Loewi &

Co., 22&

Study of 50 active New York City
securities, discussing the current
situation—Amott, Baker & Co.,

Dollar—Sterling
Issues

Inc., 150 Broadway, New York 7,
N. Y.
Bought

—

Sold

—

Quoted

ZIPPIN & COMPANY
Specialists

208

in

Foreign

Securities

S. La Salle Street

Chicago 4, Illinois
CG 451

Randolph 4696

counts.

total distribution of $88,-

a

100,850 to security holders.

the

•

"

f

—We Maintain Active Markets In—

—i—jjl—■

for

demands

last week.

•

third

V

also

was

higher wages and a closed shop.
Picket lines formed in front of all

Howard Aircraft

available are analyses of
Liquidometer Corp., Delaware
Rayon and New Bedford Rayon.

Security Transactions From In¬

Judge Igoe earlier this week.

elevated

Y.

Also

city of Chicago Surface Lines in¬

& Co.

their

enforce

to

Company

231 So. La Salle St.

*

»>:

Field

experiencing labor trouble with
800 service employes out on strike

Drive

Corporation

of 1,-

troop sleepers by

lighten

Corporation

f

Index—

the

200

*

Central

and post-war
prospects—F. H. Koller & Co.,
Inc., Ill Broadway, New York 6,

Under
an
amended
plan for come Tax Viewpoint—Questions
purchase of Chicago Rapid Tran¬ and answers—Vilas & Hickey, 49
Wall Street, New York 5, N. Y.
sit Company, an estimated $15,Also available is a memoran¬
000,000 would be available for
on
Railroad
Income
Ac¬
distribution to security holders of dum

ard had called for delivery

Company—An¬

of condition

Quarter Statistical Comparison of
19 New York City Bank Stocks.

ing

Teletype CG 405

in

Third

on

the woes
overburdened railroads in return¬

3

10 So. La Salle St., Chicago
Tel. Franklin 8622

issues

BRAZIL
!

surface

Baker-Raulong

present prop¬

$

Engi¬

Stock Extras Seem

Bank

i New York 5, N. Y.
Also a new bulletin
!

erties.

of the

Real Estate

cular—Adams

Imminent—New

the

double

than

more

Wellman

Street, New York 5, N. Y.

contemplates
new site will

combined 450,000 square feet

all

alysis

New

Broadway,

poration,
120
York 5, N. Y.

the
purchase.
The
modern, one story factory which

have

method

forecasting major trends of
business and security prices—Na¬
tional Securities & Research Cor¬
of

nouncing

company

and

New York City.

randum

Timing—A

Investment

production facilities
because of the

Glass,

proof

New York 4, N. Y.

Beaver Street,

inadequate

the

Earnings—Analyti¬

Coroprate

Foun¬

on

dation Co.; Fashion Park, Shatter¬

service predicting future

cal circular— H. Hentz & Co., 60

agricultural machinery in¬
dustries, B. A. Graham, Presi¬
dent of the company, said in an¬

\*

Lubetkin &
Co., 41 Broad Street, New York 4,

N.

-and

ary

Mfg. Co., Com.

Prospectus Available on

company

Company, manufacturing subsidi-;

Wells-Gardner & Co., Com*
*

Standard

public.
the

over

Having only recently settled its
own
labor
troubles, -PullmanStandard
Car
Manufacturing

Central Steel & Wire,
Steel

take

A

Effects of Recent Tax Proposals
on

growth of the firm in recent
years in the electric appliance-,
industrial
furnace,
hardware

public financing .and with
only banking aid.
u-

^Thej George W. Borg. Corp.
♦Burton-Dixie Corp., Com*

♦Oak

Flexible Shaft Com¬
will consolidate and expand
operations under one roof on a
54-acre site purchased from the
Chicago Board of Education. The
company at present operates three
plants in the Chicago area.
The
price offered the board for. the
tract of land was $543,969.

without

H

Globe

the

to

would

—

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

Chicago

distribution of se¬

the

Arizona Edison Co.—Descriptive

circular—Seligman,

tically

Barometer

weeks'

e

its

Glore, Forgan & Co. offer

curities

SALLE ST., CHICAGO 4

Randolph' 6086—CG 972
New /Yotts Office i- 1 Wall St.

*

The

Co., Board of Trade Build¬
ing, Chicago 4, 111.

neering Co.; and reports on prac¬

N. Y.

Theory

Dow

pany

Present

potentialities—Knee-

of

land &

Also detailed circulars

Construction Industry—Circular

weekly

are

American Vitrified Products Co,

—Study

New York.

New York.

trends in the stock market—Four

with the railroads.

proposes

&

Lewis

in net for the

a.

Mich.

Statistical

H.

employees
in
six
of
the
company's- plants
in Sep¬
tember contributed to the decline

contracts/

service

of

signing

231 SO. LA

$35,000,-

estimated value of

an

000.

Request^

on

value

a

cash, and contemplates

—

salaried

^

Socket—,

Young, Larson &
Tornga, Grand Rapids National
Bank Building, Grand Rapids 2,

par¬

strike

20-day

a

Bulletin

Aviation

memorandum—John

Termination of war con¬

tracts

American Forging and
Circular—De

Lines,

ticipating preferred, from $16,711,097, or $1.29 a share, the year
before.

Murphy, Jr. & Co.,
Street, New York 5. N. Y.

49 Wall

&

Contin¬
Delta Air

Southern Air Lines, Inc.;

*

*

Sr.

Despite

Chicago

Inc.;

Airlines,^

port

cular—Walter

Inc.; American Ex¬

ican Aviation,

stated.

company

Allerton New York Corp.—Cir¬

Pamphlet

—

pleased

parties the following literature: J>

reporting

net income, the

total

Transportation

Air

the

quarter

made

preferred

three cents increase in per share

sets of Pullman Company, hav¬

The

Broker Investment

railroads

Ray-O-Vac

."

'

"last minute" offer from a group of 22
representing users of more than 80% of all Pullman
services, made a week before the hearings were scheduled to open.
Pullman had offered to sell the^
-r~
~
:

Nu Enamel

>5

Dealer

Company, sleeping
Monday before the

Hearings on four bids to purchase Pullman
car subsidiary of Pullman, Inc., were opened last
United States district court in Philadelphia.

i Central Electric & Gas

Thursday, "November 8; 194$

FINANCIAL CHftONICLE

THE COMMERCIAL &

2210

King & Co. Officer

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

/ ROCKFORD, ILL.—King & Co.
of Rockford has been formed with

GALVINMANUFACTURINGCORP.Com.

offices at 321 West State St. Offi¬

DEEP ROCK OIL CORP. Com.

j

are

cers

Joseph

King, Presi¬

D.

dent, Lelia King, Vice-President,
and Albert E. Surprise,

Treasurer. * Mr.

viously
Other

with

U.

were

S.

•;

Incorporated

*

135 So. La Salle Street, Chicago 3

Army.

members

Byllesby and Company
'•

Surprise was pre¬
the

officers

H. M.

Secretary-

Teletype CG 273

'

Telephone State 8711

of
New York

Philadelphia

Pittsburgh

•

i

King & Co., a partnership.

Minneapolis

I SINCE 19081

L

Fred.W.FairmanCo.
Members

Chicago

Stock

Chicago

Board

of

Insurance
Si

'

Co.
**«.'•

'/V.*r.'

v'»/.

-

Sincere and
Members

4, ILLINOIS

and

New

Other

York

Common '

"Exchange

s\
„

Bell

System

CG 537




-

;

>

^;

State 2400'.

Principal Exchanges

CHICAGO
*

«■

;-VV

4

•

;

• v

.

/

■/!'•

-

....

RAILROAD STOCKS

—
•

■*

..

,

<

-'v3'/ P'4and

'■»

-

PEACETIME EARNINGS

Glober Steel Tubes Common

120 South

L& Sllle Street

•Tele.

CG *1122

•

**

-

ILL.

Phone Central 5690

current

stocks

and

currently

^

study

re-appraises

reveals

favorable

overlooked.

Copy

these

factors

sent

on

request.

,

request

CHICAGO 3,

V-

CG 252

Our

Prospectus

Available

THOMSON A McKINNON
I

231 South La Salle Street*

•,

on

CASWELL & CO.
!

Randolph 4068

Direct Private Wire to New York

:?

United Stock Yards Preferred

Mississippi Glass Co. I

Company
Stock

'

"

Copies

'

i

Delta Electric Common

'

208 SOUTH LA SALLE ST.
Telephone

TRADING MARKETS

>•)

Bought—fold—Quoted .'

study of Midland Utilities

CHICAGO

—

General Box

Midland Realization
Write For M-3—

,

.1-

Trade

Midland Utilities

A

We have recent analyses of

:t

Missouri Life

Exchange

WilliamA.FulIcr&Co.
Members of Chicago Stock

209

Exchange

..

.*
Y
New

and
^

Tele. CO 146

Members

..

Stock
Exchange
principal exchanges

231 South LaSalle Street

S/t8Salle Street* Chicago 4

TeL Dearborn 9200

,

,

York

all

CHICAGO 4
New^York^

^

Indianaj»olis.

1

Toronto

Volume 162
East

Mason

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4436

Street, Milwaukee 2,
' * 7 *
'"'C*

'Wisconsin. '

Howell Electric Motors Corp;—
Circular—Adams & Co., 231 South
La Salle

'

Cliffs

Corporation

dum—Kitchen

Street, Chicago 4, 111.

Le

Roi

Company

stock

common

as

a

—

Study

oi

sound specu¬

lative

offers

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

New York 5, New York—ASk for

Pittsburgh

Commonwealth
Gas
Corp.—
Study
of
the
situation
which

.

interesting possibilities—
Thornton & Co., 60 Wall Street,

Circular

Also

available

Pattern

"CCC."

studies

are

Railways,

of

Simplicity

Co., Inc., and Winters &

Crampton.

Consolidated

,

Class

Cement

A—Bulletin

de¬

velopments—Lerner
&
Co.,
Office
Square, Boston

10
9,

Post

Magnavox Company—Report—
Cruttenden & Co., 209 South - La
Salle Street, Chicago 4,

Also

available

circulars

are

on

Central Iron & Steel, Oregon Port¬
land Cement.

Consolidated

i

The

Gas

Utilities

and

Corp.—Circulars—

Chicago

.

Chairman of the Board, Standard

Prominent

Midland

Realization

and

Utilities Common

land

ment in

Private Affairs Can Re Prevented.

Inc.—circular
'

Iron

Malleable

Dayton

Co.—

Study of outlook and speculative

for- appreciation for
this company—Ward & Co., 120
Broadway, New York 5, N. Y. Also

possibilities

available

late memoranda

are

American

Great

Alabama

on:

Industries}

American
Hardware; Douglas Shoe; TACA
Airways;
American
Window
Glass;
Michigan
Chemical;
Mills,

Inc.;

Port.

Lawrence

ford Paper; and

Cement;

Ox¬

Purolator Prod¬

chain

-

—

Wohl

on

Mid-;

Revised

1

hrough Social-Economic Fields,

a

Trust—Study—
issue of

Contained in the current
and

Railroad

Quotations

Other

Pizzini & Co., 25
Broad Street, New York 4, N. Y.
issued by B. W.

Electromaster

Inc.

—

Recent

available

Also

report

a

on

Steel—circular—J.
F.
Reilly & Co., 40 Exchange Place,
New York 5, N. Y.
Empire

I

Also

available

are

circulars

Clyde

Products,

Dri-Steam

Por¬

study

of

Co.—

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

| General Public Utilities Corp.—
of

Pittsburgh Equitable Meter Co.
—Memorandum—J.

Co., 37
City.

Wall

White

G.

&

York

New

Street,

New York
j

Also

an

Pine Street,

5, N. Y.
analytical memorandum

Northern States Power Co.

on

Rubber

Gro-Cord

—

Tool

Company—Special

report—Maxwell, Marshall & Co.,
647
South
Spring
Street,
Los
Angeles 14, Calif.

H. K. Porter Company—analy¬

sis—Sills, Minton & Company,
Inc., 209 South La Salle Street,
Chicago 4, 111.
available

Also

memoranda

on

statistical

are

Liberty Loan Cor¬

poration; Maryland Casualty Co.,
Serrick Corporation.

and

less

of

our

Thermatomlc Carbon Co.; Red

analysis

of Panama Coca-Cola.

.Schenley Distillers Corporation
articles they have
running in the Chroniclewrite to Mark Merii, in care oi
Schenley
Distillers Corporation
Fifth

New

Avenue,

York

1

N. Y.

needs.

Inc.

—

—Buckley Brothers,
Street, Philadelphia

returned
Armed

to

resume

from

Also

memoranda

Eastern

on

a

remark¬

Today, of
problems

course, there are still
of physical production.

need

to

of

live

full

American

TS.

and

Vinco

Corp.—Circular

Now,

however,

lems that

those

WE

ARE

ACTIVE

Mr.

West

was

Galvin

Army

manager

IN

Mfg. Corp.

Michigan Chemical

statistical

department for
Glore, Forgan & Co.

Bloomington Limestone

CHICAGO, ILL. — Donald R.
Muller is again with
Harris, UpCo., 135 South La Salle St.,
after serving in the U. S.

Bendix Home

Missouri

ham &

-

Appliances

>

State Life

Central Soya

Army.

West Ohio Gas

CHICAGO, ILL. — James; T.
Magnus has rejoined the staff of
Lynch, Pierce, Fenner &
Beane, after serving in the armed
Merrill

forces,

i

■

HICKEY&CO.

'-"A-;

staff of

Bldg., Chicago 3

Randolph 8800

CHICAGO,
ILL. — Robert & E.
Keriyon has been added -to 'the

CG

1234-5

Direct wire to New York

Slayton & Co., Inc.
BBTJ

CHICAGO, ILL.—Henry Crom¬
well Brummel

is

Wad-

with

now

Active

den & Co., 208 South La Salle

St.,
Army.
In
the past Mr.
Brummel was
with
Medway, Wadden & Wil¬
after

service

liams.

-yt-

in

the

U.

S.

of

are

^Howell

material

Common

*

An

address

the

Federal Electric

■

|

"A"

4-

*-•

•

*•.

••

Common

-

^

•

Interstate Aircraft

.

-

& Engineering Corp.
Common

prob¬

To.

E. H. Rollins & Sons

output.

by Mr.

■??■.-

R. Hoe & Co., Inc. ;

Chicago Corp. Common

difficult than

American

-

Howard Aircraft Common

They
more
difficult because they
less tangible.
These are the

before

Electric

.

under¬

face

we

more

Trading Markets

JJ5 Motors Corp.

Incorporated

135 South La

Dirset

Asso¬

,

Wires

To

Oar

1945.

t

"■

'}y:

'
.

■

■

"-.v**=-r.'Sv

'/

:

:

:

•Circular

on

r

:V:

request

Street,

ADAMS & CO.

Central 7540
Offices

231

In

Principal Cities Throughout
the Country *

ciation, New York City, Oct. 24,

.

-

Salle

CG 530

Gallagher
Gas

v-'

"

CHICAGO 3

We have

South

^

;

Chicago 4, Illinois

La

Teletype CG 361

-

prepared

a

revised bulletin

Salle

Street

Phone State 0101

NEW YORK

on

MARKETS

MIDLAND REALIZATION

—

and

for the

MIDLAND UTILITIES COMMON

MIDWEST

James

Copies available

Whiting Corp.—Late

request

STRAUSS BROS.
Members

DOYLE, O'CONNOR & CO.
...

V

.V

New York 4, N. Y.

Direct

'

NORTH SHORES

& €0.

> Tele. CO 650-651

Members

sy2t, '52

i

;:

New

York Stock

iiM; CHICAGO

CHICAGO 4

■&&&*CG

First Securities Col

York

Oftico

96

Member

'

4

.

i,;

105

-~

HOLLEY, DAYTON & GERNON
Member—Chicago Stock Exchange*-*
105

Chicago Stock Exchange

South

Salle

La

CHICAGO
Andover

1520

:

St.

CG

So. La Salle
262

Eeu Claire

3
CG

Central

0780.

in Wisconsin

Fond du Lac

Madiron

13M

St., Chicago 3, I1L
•

Offices

;;

-

La Croe$e

Wausau

Tr~.
.

i.!

,

All Wisconsin Issues*

of Chicago

-

'

T: t i t -

;

Exchange

New York Curb (Associate)

231 S. Ia Sallt Street

208 S;L4 Sail* Street
Stat* 9868

New

Gisholt Machine

Common Stock

/

'Chicago Stock Exchange
Chicago Board-of Trade

Brailsford & Co.
Tel.

Ass'n

Macfadden Publications^

Henry C. Lytton & Co.

|V

St., Chicago 3, IU.

Dealers

Bldg., Chicago 4

.

|yy The Hubf|||;j§

i

Wire to

Teletype: CG 1200 'i

i

JOHN J. O'BRIEN

C. P. U.

Security

Teletype CG 129

CIHCAGO 3, ILLINOIS
Telephone: Dearborn 6161

York

Telephone: Harrison 2075

135 SOUTH LA SALLE STREET
memoran¬

New

Board of Trade

INCORPORATED

Comprehensive...

the

i: i-* I •'•is i k I • L

upon

Engineering Co.—cir-;

dum—Strauss Brothers, 32 Broad¬

forces




the

S.

Analysis Available

York Stock

■

1942

of

joining the U.

New Problems

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

that

Exchange
Members Chicago Stock Exchange
Associate Member New York Curb

t •« -«r

C.

1

Co., 67 Wall Street,
York 5, N. Y.

Wellman

way,

STRAUS & BLOSSER

135 South La Salle

in

healthful

business

^New York Coffee & Sugar Etch., Inc.

Tfel. ANDover 5700

to

large-scale production.

si

his position in our

New

Prior

an£ practices the technique

Tybor Stores — Analysis —
Raymond & Co., 148 State Street,
Boston 9, Mass. Ask for analysis

--Trading Department

Members

Alfred

But by and large we can see ways
to supply the goods that people

Memorandum

1529 Walnut
2, Pa.

Businessmen did

able job in that field.i.

are

Textiles,

not

ly met them in the past.
But in
past, problems were mainly
those of production — of organiz¬
ing the great resources of this
country to meet people's jrnaterial

are

Nathan M. Silberman
has

—

that

^

announce

ILL.

Recent

| Hajoca Corp.—Circular on in¬
teresting possibilities—Hoit, Rose
<& Troster, 74 Trinity Place, New
York 6, N. Y.
| Also available is a memorandum

pleased to

CHICAGO,

Field
are

us.
American business
has successfully and constructive¬

been

New

are

Scores

war.

Tele. CG 573

;

Chicago Personnels

,

strange to

»—Brochure of

.111.

We

vast

country, must be
answered.
Many of them must be
answered by American business¬

M. Toolan &

Rock Bottlers, and a new

are

questions, affecting the whole

future

lives.

analysis—Caswell
&
Co.,
120
South La Salle Street, Chicago 3,

on

Chicago 3, III.
Tel. STAte 4950

Co.—

Tanning

descriptive circular—Amos Treat
Co., 40 Wall Street, New York
5, N. Y.
4
$

135 South La Salle Street

page 2236)

andnoless

Challenges and problems

Corporation and Midland Utilities.

Greiss-Pfleger

con¬

no

Gallagher

KITCHEN & CO.

men.

company
to
& Electric—G. A.

'Saxton & Co., Inc., 70

the

peace

urgent than those of

successor

.Associated Gas

the end

problems.

of

of

350

study

not

there
if are sign s
aplenty that
t h e problems

R. W.

on

v

•

.

does

On

possibilities—

leverage

Airlines

Conclu-; West has
rejoined Glore, Forgan
of
the
& Co;, 135 South La Salle
St.

trary,

Co.—Brief

Lime

Mid-Continent

v

;

(Continued

final

a

o n

of

stands

Birmingham

-

relationships/

us

■

jestic Radio & Television.

Far re! 1

i

war

-

on

celain, International Detrola, Ma¬

^

s

Co.—Anal¬

26, Mich.
Sheller Manufacturing Corp.

of

MARKETS

Chicago & Southern

problems of distribution, of gov¬
ernment, of security, of human

I
am
sure, that
the
job
was

ysis, for dealers only—€. E. Unterberg & Co., 61 Broadway, New
York 6, N. Y.
:
Vi

England

TRADING

Says Rusiness Men Must

aware,

mean

New

Lt. Cerf was formerly
duty with the U. S. Navy.

on

,

-

Plomb

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

all

not

Street, Boston 10, Mass.
Collateral

of living.

But

of

D. L. & W.—Morris & Essex Di¬

vision

our

way

Dayton Haigney & Co., 75 Federal

ucts.

to

one.

stores

Radiator

partment.

i

serious

threat

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

National

120 South La Salle .St.,
of the Syndicate De¬

Our nation has just ended, a
major wa£ victoriously.
A great
challenge has been met,. A task has been
completed—the task of
beating down$>

Company,

this operator

retail

of

Co.,

manager

Relating to Living Standards, Social Security, Health
Leisure, and Urges That New Trails Re Blared

selling

a

as

.Protection. antL Greater

are

Miller

Cerf

Leadership

Supplying Material Goods As
Matters, Warns That if Today's Managers of
Private Enterprise Fail to
Supply Necessary Leadership, Government
Will.
; Holds if America Has Proper Leadership, Intervention by Govern¬

Hicks & Price, 231 South La Salle
The

of

Will Not Re Concerned So Much With
With Social and .Other

bulletin—Doyle, O'Connor & Co.,
Inc., 135 South La Salle Street,
Chicago 3, 111.
/'

Street, Chicago 4. 111.

Oil Company (N. J.)

Industrialist, Asserting That New Problems

Syndicate Manager

CHICAGO, ILL.—Lt. Floyd D.
Cerf, Jr. has rejoined Floyd D.

111.

Mass.
f

V-■ y-

Solve Questions

Corp.

recent

on

As

By R. W. GALLAGHER*

&

Co., 135 South
La Salle Street, Chicago 3, 111.

Floyd Cerf Jr. Resumes

Leadership And American Business

memoran¬

—

22*11

4.

•

I

make the difference

selection

can

between

being right and wrong.

He

that most investors be¬

warns

Thursday, November 8, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

2212

Inflation,Unless Greater Production

progressively more careless
as prices rise.
£
Brevits concludes that the dan¬
come

,

by Mr. Smith can be
overcome by the broad diversifi¬
cation |of
securities
as avail¬
able through investment company

cited

ger

"No Strings Attached"

||
cf

Most

will

us

whole-heartedly with Vance, Sanders'
that it is refreshing (whether

agree

current issue of Brevits

comment in the

right or wrong) to find a statistical service willing to predict a major
continuance of the present bull market with no "strings attached."
They quote the following from the
visory Service bulletin:
"Because we were the one ma-f-

latest Poor's Investment Ad¬

advisory
organization that
predicted this bull market right
when it began back in 1942, and
as
that opinion proved to be so
accurate,
we
believe that you
would like to know our present
long-range forecast.
"After making a careful survey
of profit and income potentialities
of the stock market, our conclu¬
jor

LOW PRICED

sions
1.

2.

A PROSPECTUS ON REQUEST

3.

*

OR

Distributors Group, Incorporated
63 Wall Street

New York 5, N. Y.

•

the

account

;

5.

A MUTUAL INVESTMENT FUND

The

the

Keystone
issue

current

of

states

memo

cessful

investor

that

the

suc¬

to

two

adheres

£

The

inflation

intensify

now

under

rather

"Carelessness

Keynotes

Rise."

Mr.

points

live in

we

a

out

that

be¬

world of con¬

change, securities, like ev¬
erything else, go through a process

way

than

change. Therefore, in setting up a
long-term
investment program,

Prices

Smith

points out that
while in the early stages of a bull
market poor selection makes the
difference between being more or
less right, in the later stages poor

provision should be made for ade¬
quate diversification and constant
supervision.
,
An

example is given how $50,allocated

be

could

000

among

S-l, S-2, S-3 and S-4. . . . Dis¬
tributors Group—Steel News en¬

Sanders

.

.

.

.

Vance,

.

Prospectus

Revised

1, 1945, on Boston
Hare's, Ltd.—Up-toon
Stock
&
Bond

.

folder

date

on

Shares.

—

Nov.

dated

Shares of Institutional Se¬

Group

Selected In¬
Co.—Latest
issue
of

Ltd.

curities,

vestments
"These

.

.

.

Impor¬

Seemed

Things

Keystone

Fundamental Investors

Dividends

Group Securities, Inc.—The fol¬

lowing dividends payable Nov. 26,

423 to

In

Letter

hi$

to

Shareholders;

the Fund, reports that the net
/

set

value

per

share of the

as|

com-

—For 4th

Quarter—
Tot.

Reg.

Extra

.035

Class—

.175.

.21

<

McGrath

L.

as a

ing

fundamental of maintain¬

profits,

business

"to

but

the

at

time stressed the point that

same

continuing stable em¬
and payrolls, we must
have in this country a willingness
assure

upon the part of the people in our
plants to turn out a full measure
productivity."

of

"This

question

economic

and

of

productivity
entire

industrial

struc¬

ture," he added.
"Some trade unions of this coun¬

.50

.40

.30

try have developed the idea that

.15

.15

the

.055

.215

.27

job

.035

.465

.50

Fully Administered—_

.045

.135

.18

General Bond-

.065

.185

.25

.02

.13

.055

.095

Electrical
Food

Equipment-

_■

—

Industrial

Machinery—

Institutional

Bond

.15

.15
1.00

1.00

Investing Company
.045

.25

.23

.26

0.2

.08

.10

.06

Mining

.205

.03

Priced

Low

.09

.15

.315

.34

.095

.055

Railroad Stock

.085

.035

.12

Steel

.05

.04

.09

.02

.11

.13

.025

.295

.32

Fnr»oment_-

.08

Rejoins Hornblower Weeks
MASS,—Lt. Comdr.
has rejoined the
underwriting department of Hornblower & Weeks, 75 Federal St.
He entered the Navy in June of
BOSTON,

W.

J.

Dacey

and

the

from

service

saw

productivity of a man on a
should be limited.
That is
based on the mistaken assumption
that
if productivity
is limited,
more men will be required to turn
out
the work.
This philosophy
utterly disregards the basic factor
of costs, which under any com¬
petitive system is the fundamental
factor having to do with a com¬
pany's capacity to compete and to
survive and to provide steady em¬
ployment. Insofar as some labor
leaders oppose the philosophy of
maximum productivity, they arb
defeating their own purposes and
threatening the whole principle of
employment continuity.
£
"Fortunately,
there
are
now
coming into prominence some la¬
who

leaders

bor

machine is

that

realize

device

a

that

the

enables

the workman to increase his pro¬

ductivity.

And

under

insofar

the

as

classes of shares of

Lord, Abbett & Co.
INCORPORATED
•

Chicago

•

Philadelphia

•

Atlanta

"Looking, across
the
country
a
country literally torn

today,

Total

"If

.035

.175

.21

.53

.04

.46

.50

.82

.11

.29

.40

.82

Building

04

.26

.30

.60

—

.15

.15

.37

Elec. Equip

055

.215

.27

.70

.79

035

.465

.50

Fully Admin...

.045

.135

.18

.065

.185

.25

.80

Indust'l Mach..

.02

.13

.15

.055

.095

.15

.02"

Petroleum,.

.65

.26

.06

.65

Railroad

Bond..

.025

.315 1

.87

Equip.

.025

.055

.08

.32

Railroad Stock,

.085

.12

.40

.02

Tobacco

......

or

Prospectus

may

be obtained from

•Regular dividends
'

your

Keystone Company £ £

local investment dealer, or

>-'

025

Utilities....
~

Congress Street, Boston 9, Mass.

,

.035

-

are

.13

.30

«

CORPORATION

ONE COURT STREET. BOSTON 8,

MASS/! ^

.295

.32

.52

are

Distributors Group,

pay

buy."

from net
divi-

'

themselves.

more

They

money per

hour,

it right out again in the

things they

■

...

'

*

NEW. YORK 5, N. Y.

Pennefeather With

t

;

Incorporated >

Notional Distributors
•

and

get

"

<

from net realized profits. '

63 WALL ST.

would

T

...

THE: PARKER

workers

increased prices of the

'

.11

investment income and extra

dends

.30
.45

:.09£ .34 '

Stooi;.05 £>0*.

M

a

benefits

the

:

,

in wages under

principle of inflation;
nobody, least of all

and

Railroad

unds

.08

of the

ance

:
j
!

i

,.,09

pro¬

in wages.

■

.10
,15
.34

..,

the

system of limited productivity is
nothing but an outright accept¬

1.45
1.45

.25

.23

045

.03

Mining.........

1.00
1.00

.205

1.00
1.00

—

Low Priced

Merchandising.

accepts

"An increase

.51

Investing Co....

industry

crease

.52

Institut'l Bond.

for

hourly

productivity, the inevitable result
will
be
a " general
increase
in
prices which will destroy all the
advantages
which
the
worker
might get as the result of an in¬

.60

General Bond..

Food

in

posed increase in base rates with¬
out any improvement in rate of

1945

Aviation....?.

increase

rates.

base

For

Chemical......

than

substantial

a

Total

Reg.* Ex.*

well

"Organized latyor is asking

Inc., have been declared payabfe
November 26, 1945, to shareholders

For

end to

nigh hopeless.

Group Securities,

Los Angeles

one

the other, the outlook seems

various

of record November 10, 1945.
•

SHARES OF CAPITAL STOCK OF

of Boston

compensation
increase his own

with labor strife from
The following dividends on the

New York

be obtained

sound

a

plan, he can
earning power.

Automobile..




W.

prosper¬

.26

Agricultural..

50

t

m e n

.29

Group Securities, Inc.

f

Y.

local investment dealer

ity

full

of

employ
and

.46

Chemical

Class

your

impor¬

tance

.04

Fourth Quarter

The

the

.04

:

—

DIVIDEND NOTICE

RESEARCH CORPORATION

from

nc r easing
production,
poi nted out

ity

NATIONAL SECURITIES &

may

the workers in
i

workman increases his productiv¬

Prospectus upon request from
your investment dealer or

Prospectus

o f
and
payrolls
b y
improving
managem e n t
and getting
the support of

.11

Building

Mexican border to Attu.

Priced at Market

us to

creating

wages

is at the very bottom of our

$17,396,991.

Philip W. K. Sweet, President of

concern

example

record

of

shareholders

to

1945,

Nov. 10:

'pUroad

During the nine months ended
Sept. 30, 1945, the net assets of
this Fund increased from $12,420,-

own

ployment

tant."

Shares

120 BROADWAY

folder

Steel

ties

Foreseen";
Group Securi¬

Famine

"Steel

1942

New York 5, N.

K-2,

K-l,

.025

Funds to
income and sec¬
ondly capital appreciation.
the

of

seven

achieve primarily

SPECULATIVE
SERIES

Series

of evolution—their characteristics

di¬

Edson B.
Editor of the
on the subject,
As

to

stant

quotes

Grows

likely

desired results.

percentage of
your capital should be placed
in higher-grade common stocks
which can
bring you betterthan-average profits, liberal in¬
come
and greater security of
principal."

s

most

which
produce the

current

Investment;

Funds

todian

se¬

lects the types of securities

increasing

then

if he is

or

He then

interested in income.

minish, and you will fare bet¬
ter by having yl|ur funds in
common stocks, not cash;
An

price appreciation,

cause

Stock

portfolio folders on Keystone Cus¬

Fund.

rules.

.

Financial
Boston "Herald,"

Securities Series

question

in

Brevits

of the

in

Co.—A revised issue
of the booklet "A Guide to Com¬
mon

using the ex¬
perience of his

stability

Keystone

revised

Investment

Your

the

Heater Co.,

of

titled
'I

William¬

son

as an

27.1%.
Mutual Fund Literature

Aim
Is

is

asks

are

the

Sept. 30, 1945, was $31.43.
This compares with $24.73 at Dec.
31, 1944.
The increase in value
during the nine-month period was
pany on

trade.

Keynotes.

there may be shortinterruptions such as that
caused by raising margin re¬
quirements
to
75%
recently
these will not for long hold
back the further broad ground-

Smith,

One

retail

Though

will

4.

Philu. 7, Pa.

is

"Already prosperous and fever¬
ishly active, the merchandising
companies now have new sales
peaks in prospect.
Their stocks
have
been
deservedly
popular.
Carefully selected issues in this
group still offer substantial ap¬

First, he determines his in¬
vestment objective in advance—
whether he is. interested mainly

business;

•

ulus

"What

strongly situated to benefit
from
certain
huge
post-war

Building

immediate stim¬

direct and

most

Co.

Addressing the Production Conference of the American Manage¬
Chicago on Oct. 30, W. L. McGrath, President of

ment Association in

a

Aim?"

amazingly

are

720 Real Estate Trust

covering letter on a revised
Merchandising Shares folder, Dis¬
tributors Group reports that when
wages advance on a national scale
the industry which receives the

The market still has not taken

swell in values for stocks that

Prospecius/rom your investment dealer or

In

range

FROM

YOUR INVESTMENT DEALER

Wage Increases and Retail Trade

Investment

high earnings due to be shown
for certain better-quality stocks
—earnings which in our opin¬
ion will force prices of these
securities to far higher levels;

[/

shares.

preciation possibilities."

predict that a large share
of
this major bull market is
still ahead;
We

into

£

follows:

as

are

W. L. McGratK Tells American Management Association Steady Em¬
ployment an<h Payrolls Can Come Only From Better Management and
Full Measure of Productivity, if Inflation Is to Be Avoided.

I

j

*

Blair/

Major- James/' D. Pennefeafhejr

has 'been-; released-frbm
Forces and has joined-the

•department
/44-*Wall,

Si^;'iifkew^5^k

the. *Ajr

trading:
;

Volume 162

Number 4436

THE COMMERCIAL & FINANCIAL CHRONICLE

Gehle Discusses Government's
f||

Post-War Borrowing Problems

part

of

many

will

be

able

people
soon

-

-

that

to

they
their i

use

savings
to
purchase "peacetime
goods on a large scale. The fact
that savings bank deposits are on
the

increase

pessimistic;
savers

are

deposit

ings

-

does

not -make

great

both

increasing

accounts

me

numbers

and

their

i

of

their
hold¬

of;E-bonds/and

member

;we must re¬
that sayings funds may

be used to

funds

purchase bonds. These
targets for our hard¬
sales forces."

are

working

Disavowing alarm

;

rent

rate

of

the cur¬

over

redemptions,

Mr.

Gehle stated that: "The large cur¬
rent redemptions, are neither sur¬

prising

nor

alarming.

In

past

drives many persons bought bonds
beyond
their
ability, and the
funds they would ordinarily have
maintained to meet household and
domestic obligations were invested
in an excess of patriotism. Needed

home

purchases

which

are

forestalled

were

being made. It is
wholly a normal condition that
among the 85,000,000 holders of
now

$29,900,000,000;
should

be

a

E-bonds

certain

need

to

meet

emergencies.

ment

will

convert

there

number who

their

bonds

to

The

continue to

govern¬
cash will¬

ingly all E-bonds submitted to it
redemption.
That
was
its
promise and it will maintain that
promise.
Bonds cashed
in
the
early years of their term means,
for

.,

of

course,
that the government
has had cheaper use of the
money

represented since interest rates on
E-Bonds are so scaled as to bene¬
fit the

holder in the later years."

Asked about the relative impor¬
tance to be attached to
(a) grow¬
ing public fear of inflation, (b)
unemployment

and

fear

of

in¬

creasing unemployment, and (c)
previous
overemphasis by
the
Treasury of the patriotic motive
at the expense of self-interest in-

This is under

no

circumstances to be construed

solicitation

of

an

offer to buy,

any

of

sua

offering of this Stock for sale, or as an offer to buyt or as"4
offer; is made only by means of'the Prospectus."^

h The

November 8,

840,000 Shares

Wisconsin Brevities

Central Arizona Light and
Power

Company

Common Stock

Copies of the Prospectus may be obtainedfrom such of the under,
signed as are registered dealers in securities in this State.

Bought

Our

new

—

Sold

—

Quoted

ANALYSIS will be sent

on

request

'

."225 EAST MASON ST.'::5
PHON£S--paly 5392

-

MILWAUKEE (2), WIS.

Chicago: State 0933




.

H

Teletype- MI 488

'

1945

"Vv<

SttSlS

Thursday, November 8, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

zzMrz

Mansel Griffiths Dead;

Labor Biggest
By BRUCE

Cost Item in
Automobiles, Packard Pres. Shows

WILLIAMS

have recently been expressed with regard to
the Canadian export trade position following the termination of
Mutual Aid.
Although it is true that the Dominion has a greater
Some misgivings

dependence on world markets
this fact more appreciated than

JThe problems of peace are be- &
^irig tackled in the well-planned,.

$1 billion exclusive
of-aid to Britain, are under con¬
sideration.
It is fully realized
transition

difficult

stage

(CANADIAN BONDS

President
1

'

;

great re¬

a

for

outright
gifts helped
largely to stimulate the national
economy and created new markets
for Canadian goods. Every effort
is now being made to retain and
extend foreign markets. The De¬
partment of Trade and Commerce
with its Export Planning Division
and its steadily expanding Trade
Commissioner system give every

Motor Car Co.,

said at
Nov.

"There

the
-

MUNICIPAL

instituted

has

Commerce

Trade

of

Department

port division
CORPORATION

the

an

which will
stimulation

trate

on

and
im¬

concen¬

of

im¬

The Dominion wisely fore¬
sees
that many importing coun¬
tries such as Britain, which are
short
of
"hard
currency"
ex¬

change, will be obliged to confine
their
purchases
abroad to the
countries which buy from them.
Therefore, pessimism regard-

Dominion
foreign
prospects which largely

A. E. AMES & CO,

| ates
!

INCORPORATED

trade

ing

.

Canadian

from

would

to

seem

be

eman-

sources

indicative of

5 a characteristically conservative

outlook rather than any lack of

TWO WALL STREET

confidence. In a world of acute

NEW YORK 5, N. Y.

shortages Canada has
alled

RECTOR 2-7231

N Y-l -104 5

surpluses. It will not be
sult

as a re¬

of planning

lack

of

unriv¬

commodity

of

variety

an

or

re¬

fusal to face the economic facts
of life,

that Canada will fail to

the

IN

of

products

its

its

farms,

mines, and its factories.

•

>

Turning to the market for the

Province of

past week, there were at last signs
of a revival of activity in the high

ALBERTA
(all issues)

grade external section, especially
in bonds in the bank eligible cate¬
gory. This movement is somewhat
overdue as the Canadian market
has not

so

fluenced

far been sufficiently in¬

by

the

ward trend of

securities.

general down¬
yields on domestic
r

*

*

time

a

when

try,

120 Broadway, New York5,N.Y.

markets in general were register¬

|

231 So. LaSalle St., Chicago 4, 111.

ing strong advances, the Canadian
market was retarded by the un¬
certainties of the Canadian Fed¬

eral elections.
political

the

STOCKS
Industrials

was

Banks

—

Mines

been

surprising

therefore

It
to

extended demand for bonds

about

to

Toronto

~

We

offer,

I

only

of

mean,

course—the value of materials in
their
ore

original form—such as iron

under the earth's surface and

rubber

plantation

tree..
Workmen have to transform thesea

on

original elements into a finished
product.
Payment for all this
work, which the car manufacturer
assumes
when buying materials,
plus the labor costs in his own
plant, make wages by far the
greatest factor.
Profits are re¬
sponsible for the remaining costs,
but

entire

the

indus¬

automobile

more than 5V2
working margin."

try can't average
to

7%, barely

a

Vigorously contending that
there
can
be
no
wage
boosts
whatever with prices frozen, Mr.

Christopher

able

to

charge

for

biles," he said. "Wage boosts de¬
pend upon price increases, despite
what anyone may say to the con¬
trary,
but
the
price
increases
don't necessarily have to equal
"Unless

have

to

rupt,"
talks

'

-

have

we

controlled

.

these

increases,

down, or go bank¬
contended.
"Everyone
more

money,

but no-:

body talks about what they're
going to do to earn it. I say to the
boys in the shop, Tm not half as
with

concerned

what

I

for

equities

make

in continued de¬

is

-

funds held

steady

Following the termi¬

possible,; but;; the; high

in

San

of

forces

absence

Lieutenant

He

Francisco.

leave

armed

took

to

join
the
1917, serving as
the U.
S. Army.

in

of

Returning to the firm at the close
of the war, he became manager of
the Portland, Ore., office in 1922
Northwest

the

of

resident

and

Vice-President

manager

two

later.

years

a

director of

corporations,

including

Griffiths

Mr.

many

was

Arcade

said
there
were
technological advances dur¬
ing the war, but that they applied
mostly to war production, not to
the building of automobiles.
Christopher

many

he

Packard,

had

explained,

to

buy approximately 3,400 machines

produce
56,000
Rolls-Royce
Aircraft
engines,
used in
five
to

types of fighting planes, fcnd 13,engines, used
in all PT boats, during the war.

Alaska Pacific Salmon Co.;
Building & Realty Co.;
C. D. Johnson Lumber Co.; Haw-|
Co.;

ley

had

"we
these

converted," he said,

we

to

dispose

war

of

purpose

many of
machines,

in

the

manufacture of automobiles.

&

Co.;

Paper

Eastern

Oregon

Railway

Co.;

ing; Olympic Forest Products CcL
He

also

was

dent
for

and

oif

a

Director and Presi¬

Orpheum

Inc.,

Co.,

and

several years, was a Director
President of Olympic Hotel

Corp. and Pacific Terminal Co.
Mr.

000 Packard marine

"When

&

Pulp

Pacific

Vancouver Medical Dental Build¬

Griffiths

was

member of

a

Rainier
Athletic Club,
Arlington
Club of Portland, Bohemian Club
American

the

Club,

Washington
Tennis

Seattle

Club,

Francisco.

San

of

Legion,

We

which

had

unuseable

were

to

buy

machines

we-sold

about
we

The

machinery.

new

the

of

value

equalled the cost of
had to buy."

those

Expresses Optimism Over New
York

Business

"For

pros¬

continued,
in
the five days ended Oct. 31, 1945,
were
$6,955,016,000,
a
gain
of

PHILADELPHIA, PA.—Charles

Co., 1500 Walnut St.,
Henry L. Fonda,
Townsend C,
Anderson, and Henry Morelli have
become associated with them in

he

Francis

that

the

A.

sales

Cook,

department.

York's " bank tclearings

15.1%
This

example,"

Four; to Sales Staff
announce

pects in the New York area are
exceptionally bright.
"New

Adds

A. Taggart &

Prospects

Christopher said business

Chas. Taggart

over

the

contrasts

1944

same

with

bank

week.
clear¬

ings for the 24 largest cities of
$11,358,252,000 or 7% above those
for the

like

1944

York

week.

still

Wm. Cavalier Dies
William

California

prominent

Cavalier,

and

financier

ment

banker,

after

a

died

at

He

illness.

brief

invest¬

his ranch
was

a

special partner in the investment

is the

nation's

banking

firm

of Dean

Witter &

capital in business and finance,
despite outside attempts to make

Co., San Francisco, since the con¬

it otherwise."

solidation
with

his

that

of
own,

Wm.

organization

Cavalier

&

Co., several years ago.

Jos. F. Hammel With

J. J. O'Conner & Co.
(Special

to The Financial

CHICAGO,
has

Hammel

Chronicle)

ILL. —Joseph
become

F.

associated

with J. J. O'Connor & Co., 135
South La Salle St. Mr. Hammel
has been serving with the armed
forces;/ In the past he was with

Doyle,7 O'Connor & Co.,- Inc.,
their municipal department:

in

John B. Farra Joins

The turnover continued to

were

firm

you

pay

Domin¬

and free

after' graduating

Blyth & Co., Inc.; Iron Fireman
Manufacturing Co.; Seattle Times

dual

would

we

born *in

was

and

policy of controlled increases in
both wages and prices for indus¬
tries
in
which
wages
are
the

*

shut

he
about

products will collapse by June,
1946, if this country doesn't adopt

automo¬

wage! boosts."

He

Blyth &

a

"New

"We can't even go into the mat¬
ter of wage boosts with the Union
until we learn how much we'll
be

the

clared

of

and

executive
de¬
market for industrial

Packard

The

said that:

demand

at 9 5/16%.

rate

that,

By

$24.

ma¬

is

automobile

an

to

nation of the Ninth Victory Loan
next week some reaction in the

wires

in

terials

on

•irect

Montreal

The intrinsic value of

item.

addition

mand

and

greatest cost

the

are

ion

10-year

Broadway, New York 6,N. Y.
.WHitehaU 4-8980
private

wages

and Price

Adjustment

indus¬

automobile

yields still obtainable

the

Internals

Members Toronto Stock Exchange

a

maturity

within

be restricted by scant supply but
demand at higher prices is likely
to stimulate offerings.

CHARLES KING & CO.
61

not

range.

Bought—Sold—-Quoted

ff

never

direction of lower yields.

see an
—

has

clearer, the market is now free to
respond to the general pressure in

CANADIAN
i

As the Dotnipion

horizon

the

in

"But

v

Urges Controlled Wage

up

only

them.

investment

;

adds

small
part
of
the
net cost. Wage increases, advocated
by the President, would not re¬
sult in a tremendous hardship for

the

At

la¬

bor

distribute throughout the world
DEALERS

e

which

to

Christopher

Geo. T.

ports.

CANADIAN STOCKS

i

r

"in

It is indicative of the Canadian
flair for capable planning that in
order to assist the export trade

are

-induss," h e
pointed
out,
t

.

PROVINCIAL

on

5.

many

that Canada will obtain

about what you can pro¬

am

dent

greatest cost item.

press

a

conference

appropriate share of world Ex¬
port trade.
;

P

Man-

Packard

of

an

GOVERNMENT

and

President
General

I

as

duce.'"

the

greatest cost
item, Geo. T.
Christo p h e r,

and

assurance

which

wages are

Moreover, it is frankly appreci¬
that during the war Mutual

ated
Aid

industries

in

devolves upon the
creditor nations of the world.

exceeding

b^rthe Canadian people that in

ahead

immediately

under the new wage-price policy enunciated
Truman, will have to give special consideration to
price increases 4>

The Government,

by

sponsibility

courageous

•the

Alturas, Cal.,"
from the
University of California in 19161
became associated with the Blyth

'

fashion which was
-^characteristic of the Canadian
war
effort.
International loans

-

George T. Christopher Explains That Materials In Car Are Worth Only
$24 in Their Original Form, Objects to Any Wage Boosts While Prices
Are Frozen. Is Optimistic Over Business Prospects In New York Area.

than any other country, nowhere is
within Government circles.

:

-

Vice-Presi¬
Co., Inc., and
prominent West Coast financier,
died in Seattle, Wash., at the age
of 56.
■'

Mansel P. Griffiths,

bonds

in

internal

any

Staff of Otis & Co.

pronounced exchange weakness a

CINCINNATI, OHIO.—John B.
Farra has become associated with

remote

Otis

,

possibility, especially as
sterling at the moment is firmly
holding its ground.
With

pects

that

regard

to

it. can'only
an

upward

.market is

future
be

pros-<

repeated:

move

In

long overdue.-

the:

&

Co., Mercantile. Library
after serving in the
armed forces. In the past he was
an officer of Holton, Foster & Co.

Building,

of

Lexington, Ky.

he

was

with J.

Prior

thereto

D. Van Hooser

More Bonds

&

Co. and A. Iselin & Co.-

subject:

$100,000

Canadian Pacific

Railway Company

4% Perpetual Debenture
Price 106.25 and
interest,

yielding 3.76%

Wood, Gundy & Co.
/

14 Wall

Incorporated

jDoMttuox Securities
Taylor, Deale

&

Company

Grporatiom

•

Street, New York S

Direct Private Wires to Toronto <6
Montreal




Buy Victory Bonds

StO(?k

64 WALL STREET,

NEW YORK 5

WHitehall 3-1874

40 Exchange Place, New Yor^
Boll System

Teletype NY

5.N.Y#

1-7Q2-3

]

"2215

Nationalization Without Tears?!
^JBJIrAULvE

■

V

bankers

compel

formation
is

Political Correspondent/ London "Financial- Times"

disclose

to

to

adopt

Railroads Aro Looking Ahead

v

;

for

political purposes. To do so
be, howevety 'so utterly
against recognized standards of
morality that it would do the

!

fti !

even,

would

Important

i

By JOHN J. PELLEY*

in¬

policies

believed by many people
that these powers might be abused

Writer States That There Is General Satisfaction "With

Measure to Nationalize^ the Bank of England and That No

Changes Are Expected in the Bank's Policy

and

dictated from official quarters. It

Formerly Foreign Editor of London ''Financial News"

British Financial

viewed with strong disapproval is
the one empowering the Bank to

v

.

President, Association of American Railroads

J

After Recounting

War Work of the Rails, Which Handled More Thaqi
90% of Military Freight and Troop Transportation, Mr. Pelley Points Out
That, Contrasted With Losses Under Government Operation in World
War I, the Railroads in Recent War Paid Federal Taxes of Over $4.2
Billions. : Says Railroads Will Serve Public Better by Research and

Personnel, v Sees Aim .to
Expresses View That Government the utmost harm. The
tabor Government is Anxious to Collaborate With Capital and Private possibility of using the powers
improved Equipment and Points Out That New Railroad Investment
to secure discrediting information
Enterprise, v.
-rf
•'
;!-v
about the accounts of political opWill Be Hampered if Discriminated Against by Public Policies Relating
The Bill providing for the nationalization of the Bank of England •porIents,? or to: grant Joan to So¬
to Transportation.
Holds Rail Prosperity Dependent on Continuous
or

Extend Greater Control Over Private Banks and

to be accepted with resignation by the London banking
munity. From

appears

^

the

moment

the

election
were

he

has

strengthened

known

it

of

the

Governor

was

considered
cert

i

a

a

t y,

n

though

even

the speed with
which

Mr.

Dalton

pro¬

a

s

u

caused

some

Gen-

is

cor-

to

say

that

the

tails

of

de¬

not
the

worst

The

fears

confirm

the

bankers.

of

compensation

be

to

disregard

lightly.
^ !
All these
"mitigating circum¬
stances"
are
duly realized and
appreciated in the City. The only
provision in the Bill which is

paid

to

stockholders of the Bank is con¬
sidered by most people as fair, in
that it leaves their
earnings un¬

true, there is some talk
about the allegedly huge hidden
of

the

to

Bank.

But

imagine

which

it

is

circum¬

stockholders

could possibly have received their

share of those

county
val

the

of

Bank

the "outward
of

form

England.

The

Bank will not be converted into

a

Treasury Department; it will re¬
main outwardly an independent
financial

tinue to

institution.

profit

earn

It

will

more

con¬

less

or

in the same way as it has been
earning until now; it will pay to
the Treasury the amount it has

hitherto
as

OPA

half-yearly dividend; it will be
to taxation, and its sur¬

plus earnings will be added to its
As

reserves.

far

as'is

known

at

this stage,

the executive officials
employees of the Bank will

and

.

not

become

Government

officials

but retain their present status.

Above

allj fears that the nation¬

alized Bank would be

managed by
Treasury officials and politicians
have proved
dation.

aried

nor

as

the

holding sal¬

anyone

Government

eligible
And

to be without foun¬

Neither Members of Par¬

liament

office

will

be

members of the board.

Governor, Deputy Gov¬
Directors, once ap¬

and }

ernor

~

and

buying

country

to

popularize

a v:

continued

•

need for price ii
control."
Vi

Federa-9

tion pointed to
OPA

an

:

pro-

motion in two f
T

n

n

e

Of

OPA

This should
retain

a

pendence.

that

mean

certain

office.

of

they will

degree of

.Although

inde¬

they

will

■

forts

to

for

continuation of controls far

a

in

"sell people

advance

mination

Price

of

the

of

date

Control

present, ter¬
Emergency

the

Act

in

position to protest against it
in public.
a

the

much

of

elaborate

taxpayers'

Remain

Governor

Met that

v

been
.and

j

to

asked
that he

is regarded
the

to

-has

remain

Governor,

is willing to remain,
as

an

Government

indication that

does

not

intend

how

money

programs

were

costing and in what manner they
were
authorized by the Bureau
They also wanted
to know why these programs were
held without also setting forth the
"tragic results of current OPA
restrictive
absorption and preticketing policies not only on the
manufacturers, wholesalers and
of the Budget.

merchants but
and

their customers

on

employment in general."
"We wonder," said J. T. Meek,
executive secretary of the Federa¬
tion, "why there are not displays
on

such

those

as

before

coming

on

the

the
new

market

Smith

goods
the

from

producers—goods
far inferior in quality and far
higher in price than the merchan¬
dise which is not being made by
new

of

manufacturers

be¬

the

price squeeze.
We
wonder why the bare shelves of

retail stores are not
and

Catto

30,

determine

to

these

cause

are

June

on

Illinois retailers also asked their

Congressmen

established

they

Treasury,

2234)

waterways and airways. Each part

men

of

vast

tott-

which has resulted from this great

g e s

of

and
n

a

of

the

freight over
long distances
and

a

displayed.
government

taxpayer

all

its main dependence,

as

During v the

ganized
the

sys¬

troop

United

tem represents

the investment

of all

by

r

a

i 1

more

than

century,

a

movements within

States

were

made

We

photographed
wonder why

agency

money

for

can

the

utilize

purpose

bidder.

The auction

railroads

'justified" the
imposed in them, not

confidence

25

billion

dollars

in

invest¬

I: * An: address of Mr. Pelley be¬

by our state ' and national
governments, chiefly during the
last quarter of a century, of an

fore the Chamber of Commerce ox

tracks and trains, and the
ment

even

the State of New

York, New York
City, Nov. 1, 1945.
v '
(Continued on page 2219)
greater amount in highways, C '

This advertisement is neither

■

offer to sell

an

nor a

solicitation of

foffers Id buy Any of these securities. The offering is made
/
only by the Prospectus.
New Issue

C>

,

the

eral

so

\

#1"

,■

-t

V

;

< m

attorney

State

that the

50,000 Shares

:

Chase Candy Company
Common Stock
Par Value

cleared

was

$l .00

per

Share

,

gen¬

adjustments made

later would be legal and no con¬

troversy would arise.

/

Price $8 per

,

Share

:!■ "The car sold for

$2,500, sugar
fof $36, tires for $29 and $30 and
lard for $15.
After the auction
it was explained that this was an
object lesson to show what peo¬
ple would pay for scarce items.
The purchasers were then sold the
items at OPA ceiling prices. - The
car, which has not as yet been
priced by OPA because it was an
unreleased model,
was
returned
to the factory, but the man who
bought it was given a certificate
allowing him to buy the first Ford
issued to that area at the regular
ceiling price.
"Merchants pointed up the

testi¬
of servicemen in their win¬
dow
display.
They priced $75
men's suits as they are priced in
France
at
$400.
Shoe
stores,
haberdasheries, food stores, laun¬
dries and specialty shops cooper¬
ated
in
this
form
of
display.
Merchants also
displayed
goods
priced as they were after World
War I and gave comparative post¬
war II prices."

Copies of the Prospectus may be obtained
from the undersigned.

quality

necessitate the controls of tomor¬

OPA

not being manufactured
large extent by the restric¬
tions of the present.
We wonder,
in truth, whether or not the citi¬
zens
of this country are simply
being readied to bombard their
Congressmen
with
requeststo

'

Herrick, Waddell & Co., Inc.
November 2, 1945.

This advertisement is neither an offer to sell nor a
offers to

buy
Is

NEW

any

solicitation of

of these securities. The offering

made-Only by the Prospectus,

ISSUE

150,000 Shares

KoldrHold Manufacturing Company
(a Michigan corporation)

COMMON

"It was," concluded the Federa¬
tion, "a skillful presentation but it

shortages of today which might

;

,

"

mony

presenting only one side of a
We wonder why the pro¬
gram is necessary if OPA is sin¬
cere in 4ts hope, to abandon con»
trols ■ soon.
We I wonder if the

'

-<•

STOCK

from OPA policies which discour¬

of

story.

did

tell

not

There

are

Inflation

many
can

whole

the

Par Value

from

$1

per

Share

4

.

story.

Price $2.00 per Share

kinds of inflation.

come

inferior

.

.

to abuse its
;that

on

,the

extent

power.

The story goes

the night of July 26, when

of

the

Socialist

vic-

j tory became known, a London
;banker dined in New York with

partners of J. P. Morgan

&
Co. They were naturally gravely
concerned about the repercussions

•some

i
^of ?the change. "Poor Catto," said
one

of

them, "I

suppose

he will

|now be executed."

Instead, the
ISocialist Chancellor ( of - the Ex¬
chequer spoke of him in two pub¬




row

to

are

a

of

goods

restrictions.

resulting
It

can

adequate production, lower
and invite inflation. It
from regulations that
distort normal practices.
And it
can come through steady elimina¬

price control

—

and the

tion

come

of

sound

small

merchants

emergency—borne June. 30!"
.7

"Flans how

are

being made'to

who, by being out of the competi¬
less con¬

tive scene, make prices
trollable ' by
normal,

competition."

vigorous

^

-

"

Smith, Hague & Co.

the supply

,

continue

Copies of the Prospectus may be obtained
from any of the undersigned,

from
come

age

can

by

more

war

These

;

John' J. .Pelley

of

than

to

rail.,
In that~ period, the total
freight
load
on
the
railroads!
doubled, the passenger load mul-i
tiplied fpur times.* /

-

c o m~

panies, over a
period
of

more

according

war,

than 90 per cent
freight was hauled bjr

train, and

road

is

figures made public only since the
war closed, 97 per cent of all or¬

the year.
T his trans¬

portation

useful, and during
all were used, but when

war

turned
J

of

seasons

system

transportation

t|ie

the emergency of war came it was
to its railroads
that the natidn

it

do

to

.

investment

most

through

have to carry out the policy dic¬

the

the need

on

1946."

tated

by

T. Meek

Joseph

ef-

factories of

term

on page

adequate

to handle mil¬

lions

brought
public
enthu¬
siasm," continued the Federation's
statement, "was an auction on the
public square where a new Ford
car,
100 pounds of sugar, auto¬
mobile tires and 50 pounds of lard
were auctioned off to the highest
the

about

examples

as

the

their

(Continued

tion

war

cent carnival week which

counties

see

Committee of so-called

of

; V

*

through which we have just passed could not have been
fought and won overseas had we not had, here at home, transporta¬
The

"Qne; of the features of tHe re¬

s

e

pointed by the Government, can¬
not apparently be removed until
end

that the Bill simply
aims at securing legal right to
reinforce, if necessary, the Govto;; suppose

this carnival type promotion
into about 2,400 population cen¬
ters," reports the Federation. "We
presume they will be held in Illi¬
nois and we expect that business
men here will also 'cooperate' be¬
cause non-cooperation could eas¬
ily be construed by the wellpropagandized citizenry as mean¬
ing that merchants were for in¬
flation!
They are less for it than
anyone else could possibly be. But
they are beginning to wonder
whether these carniyals are less
to fight inflation and more to per¬
petuate controls."

u 1 timately
if:
planned for>>'

paid to the stockholders,

subject
1

reasonable

carry

being.

now

The

point quoted in favor
of the measure is that it will not
with

seems

another

carni¬

program

staged by the

reserves.

Another

interfere

quite

CHICAGO, ILL.—The Illinois Federation of Retail Associations
asked the Illinois delegation in Congress to "investigate the

has

centers of the

It is

in

is

Challenges OPA as Unfairly
Propagandizing for Retention of Power. Use of the Taxpayers* Money
for Elaborate Programs Questoned.

ment.

impossible

purposes

Illinois Federation of Retail Associations

2,400

deserves

expected to be used solely for
of
broad
policies.
Whether
those
policies will be
are

right or wrong
question. But it

Growth of Traffic.

may

powers

Retailers Seek Motive Behind OPfl Carnivals

changed and it slightly increases
the capital value of the invest¬

stances

The

speedily and
dependably in

the
d i d

measure

Einzig

position

a

safely be dismissed.

loan

a

Smith

e

r

speak-

V;

advice he will not be in
to

insistent

Mr.

this

duced
e

the position

whose

Conservative

to

lic speeches in terms of the high¬
est possible praise.
In doing so,

results

Paul

cialist Mr. Jones and refuse

com-

-

Detroit, Michigan

White, Noble & Co.
Grand

F. H. Holler & Co., Inc.
New York, N. Y.

Rapids, Michigan

November 8, 1945

•

-

v

*

THE COMMERCIAL & FINANCIAL CHRONICLE

2216

Thursday, November 8, 1945

5

turned

|

strong from the outset and moved
forward
4%
points by Friday.

j

points.

The

common

Elimination

important news development in the railroad field in
was the announcement on October 30
that the

The most
the

few

last

weeks

New

Equipment for Economic
Rail Operation

the

prospect of
adding materially to its earnings
through < absorbtion
of
Nickel
Plate brought some selling into
Chesapeake & Ohio common, the
price
of
which remained un¬
changed during a period of gen¬
of

'

^ By BURT T. ANDERSON*

comprehensive merger plan of Chesapeake & Ohio and three of its
affiliated roads had been abandoned, at least temporarily.
Such
strong opposition had developed among the Nickel Plate preferred
stockholders that it had become obvious that at least insofar as that
road was concerned consumma-^
tion of the plan on the terms pro¬ effectuate the plan.
As Chesa¬

question.

posed was out of the
The offer of exchange

of securi¬
Chesapeake & Ohio for
those of Nickel Plate and Wheel¬
of

ties

ing & Lake was withdrawn.
At the same time it was an¬
nounced that the offer to stock¬

nearly 70%
fo the common, no trouble is ex¬
pected from that source.
Grant¬
ing a price of 115 for the new
Chesapeake & Ohio preferred the
peake

Pere

Ohio

&

owns

prior

Marquette

preference

stock will be paid out in full for
their

and it is

they
will vote in favor of the plan.
There is left only the plain pre¬
ferred as a potential dissenting in¬
terest.
Chesapeake & Ohio and
a
wholly owned subsidiary own

a

some

would

holders of Pere Marquette
be

^renewed on the same basis as
formerly.
No organized opposi¬
tion

the

to

offered

terms

Pere

has as yet appeared
apparently felt that such
strong group as objected on be¬

Marquette

preferred
to fight the Pere
Marquette proposal.
A favorable
vote by holders of two-thirds of

half of the Nickel Plate

will not emerge

each class of stock is necessary to

claim,

of

16%

presumably

so

this

124,290 share

This stock has a claim, inuding' dividend arrears, of
$171.25. Taking a value of 115 for
the new Chesapeake & Ohio pre¬
issue.

cl

ferred and the

market of

current

57 for the common, the

plain pre¬
ferred would receive an aggregate
of $114.80 for this claim.
It re¬

Republic Pictures

mains to

there is

NEW

.

If

and

Walt

issued)

if

Ohio

plan

common

preferred at 129. ; Following the
announcement, Nickel Plate pre¬
ferred fluctuated^; erratically as
impatient holders liquidated on
the
theory that
settlement of
Nickel Plate's affairs would be

postponed for a further extended
period and long term investors
were
active on the buying side,
convinced that
dropping of the
merger
negotiations was highly
favorable to the stock/ * By the

Common
and

&

Chesapeake

Disney

as

to

closed at 56%, Nickel Plate com¬
mon
at
48%
and Nickel Plate

Debenture 4s, 1960

(When

issue

ment of abandonment of the

Productions

;

not

or

On the day preceding announce¬

.

Preferred & Common
as

whether

this junior preferred
object effectively.

Deb. Inc. 4s, 1965

(When

seen

sufficient concentration

of

(oration
•:«;

be

a

Issued)

close

Friday

on

scored;

net

a

the

shares

advance

of

eral

Union

is

apparently a good
prospect now that Nickel Plate
may merge with Wheeling & Lake
Erie and that eventually that con¬
solidated property will be merged
into the Chesapeake & Ohio. Such
a
piecemeal accomplishment of
the original objective would pre¬
sumably
work out
very
much
more
favorably for the present
Nickels Plate
security
holders.
Chesapeake & Ohio

certifi¬

owns

cates of

deposit representing prac¬
tically all of the $11,609,000 prior

lien 4% stock of Wheeling.

Of the
337,723 shares of Wheeling com¬
mon certificates of deposit repre¬
senting 168,000 shares are already
owned by Nickel Plate and 78,145
shares by
Chesapeake & Ohio.
Another 59,400 shares is owned
b,y Pennroad. The three interests
together own more than 90% of
Most of the $10,the common.
213,958 junior preferred is owned
by the public but is callable at
par.
If, as has been intimated,
Chesapeake & Ohio is willing to
dispose of its interests in Wheel¬
ing such a merger would presum¬
ably present a minimum of diffi¬

Switch

Anderson, Ascribing

&

''/?■. 7.

Signal Company

%

Railroads

Performance of

the Remarkable

During War Period to Improved Signaling Equipment, Describes die

System of Central Traffic Control and Inductive Train Communication.
Says Central Traffic Control Increases Track Capacity, Reduces Need
for Available Rolling Stock and Reduces Operating Expenses.
Holds
Successful Inductive Train Communication by Voice and Signals Has
Resulted From Almost Two Decades of Research and Though Not Yet
Perfected to Replace Other Means of Communication for Rail Oper¬

ation, Is

a

Valuable Auxiliary to Existing Facilities.

Harbor the railways of the U. S. A. have handled
and freight traffic with considerably less passenger
locomotives and men than3>
*r
before.
The 1945 passenger ried in 1941 and yet the railways

Since Pearl
more

cars,
ever

load

passenger

is

expected

to

be

two

and

one-half times the load carried in

1918, and four times the load

car-

are

expected

to

with 30% less

than in 1918.

Signaling

Railway

this load

carry

cars

has

been

important
factor
in
help-,
ing to move this increased traffic
during the war period with dis-an

:;:An

address

before

the

Mr. Anderson

by

New

York

Security
Analysts,
City, Oct. 19, 1945.

Society of
New
York

patch and economy for it saved
(Continued on page 2234)

NSTA Notes

culties.
In the meantime it is generally
expected that directors of Nickel

Plate will take

tion

the

dividend

some

ac¬

shortly,
probably at their meeting on No¬
vember 20.
A $6.00 payment on
arrears would cost only $2,163,462
on

which

is

preferred

than

less

estimated

net

one-tenth

SECURITY TRADERS ASSOCIATION OF NEW YORK
The
of New

Nominating Committee of the Security Traders Association
has compiled the following list of candidates for the

York

ensuing year:

of

working capital by

the end of the year.
Also on the
basis
of
anticipated
post-war

earning

should

make

to

it is expected that
be in a position
substantial
payments

power,

the road
towards

had

three

Mr.

advances.

There

:vV

•

Transportation Research Director

_

a

reduction

cumulations

ing

a

in

the

in

addition

regular $6.00

to

ac¬

pay¬

a year.

Ernst&Co.
itrdt

MEMBERS
New

York

Stock

Exchange

and

victory-

other

leading Security and Commodity Exchs.
120

Broadway, New York5,N.Y.
now

||o. LaSalle

231

St.. Chicago 4. lit,"

;

you

can

invest in it!

William A. Titus, Jr.

C. E. de Willers

Michael J. Heany

Specialists in

pflugfelder, bampton & rust

RAILROAD

Members

SECURITIES
Selected Situations

all

at

61

INCORPORATED

Broad Street

Stock

Exchange

New York 6

Chicago, Milwaukee, St. Paul &

guaranteed railroad stocks-bonds

25

York

Times

'

>

New

Broadway

Pacific Railroad Co.

New York 4, N. Y,

Telephone BOwling Green 9-6400
Teletype NY 1-1063

We will discount profits and assume losses

in

the

above

"when

issued"

contracts.

sutro bros. & co.
'

Boston & Maine
-■

•.

i

7

A i \

,k

"
.

■-»

'/

.

•'

.

-7z4*

•

.

.

,,

t ..Vi&V*

Railroad.

;

E.

First Vice-President:

Telephone REctor 2-7340

.

7

;

,

/

(Continued on page 2236)

Prior Preferred

KEYES FIBRE
Circular

on

Clan

A and

request

EXPRESO

BUY

Common

AEREO

5'.-27 (25% Pd.)

63

Wall

Street, New York

BOwling Green
Boston

9-8120

Tele.

Philadelphia

*

NY

5

1-724

Hartford




1. h. rothchild &

0:i,

Mclaughlin, baird & reuss
Members New York Stock Exchange

co.

Member of National Association

rV

o/ Securities Dealers, Inc.

i;:

:

loan

<

AIR CARGO TRANSPORT

Adams &. Peck

BONDS Of the

Victory

CHICAGO RAILWAYS

.

:

? 52

wall street

HAnover 2-9072

■

Phillips

President:. Chester E; de Willers, C. E.de Willers & Co.
William A. Titus, Jil., F. J. Young Co., Inc.

120 BROADWAY, NEW YORK 5, N. Y.

V

Howard

T. G. Horsfield

Members New York Stock Exchange

'

-

n.

y. c.

5

Tele. NY 1-1293

ONE WALL STREET
TEL.

HANOVER

2-1355

NEW YORK 5
TELETYPE NY

1-2155

Volume 162

Number 4436

'••

THE COMMERCIAL

".{5i'A-l,#'Vf« £<'

|: Looks for No Heavy E Bond Redemptions

The Incasso-Bank of Amsterdam Furnishes
Data

'

i

City

pank of New York contains an analysis of the problem of. redemption
of the outstanding Series E War *
Savings Bonds. After comparing in 1944 and 1945.
Policy loans
the situation that existed follow¬ have diminished steadily month
So far the only per¬
ing the first World War with pres¬ by month.
ent conditions, the Letter comes to ceptible
effect of war contract
on

life insurance has

on

(.creation

of money resultant from
the increase of the Reichsmarks-

the Eilect of War

Monetary Conditions in Holland. Recounts the Process and Effects
of Monetary Inflation
During German Occupation.- Says Measures Have
Been Started to Liquidate
"Floating Purchasing Power/' / ;■-//
on

Rather Than Consumer Goods.

cancellations

vestment was largely the cause of
the surplus in our balance of
pay¬
ments with
Germany, so that the

in Holland

World War 1 Will Not Be Renewed.' Holds Bulk of War Sayings Bonds
Will Be Used to Acquire Permanent Assets Such as Farms;and Homes,

the conclusion that because of the

2217

j

National City Bank Letter Points to Improved Financial Position of In¬
dividual as indication That the Rush to Cash in Bonds That Followed

The November issue of the Monthly Letter of the National

& FINANCIAL CHRONICLE

portfolio of the Netherlands Bank
represents
this

A

■:

pamphlet prepared by the Statistical
Department of the In¬
casso-Bank of
Amsterdam, Holland, and entitled "A Holland in War
Time'*' - lurnishes
some
striking *—//r-'1
..'■// r,i <■
figures on the effects of the war
In this country, like in
others,
and

the ' German

Holland.
of

ess

•

occupation

of

In

describing the proc¬
monetary inflation and its

influence

economic

on

conditions

the

influence

of

the

war

the

sulted
of

large extent dis¬

a

creation

in

Apart

money.
of

from

money

re¬

widening of the flow

a

income

(rises

in

and

wages

salaries, employment of the labor
reserve,:/ women labor, etc.), a
phenomenon
which, in
several

the

on

to

investment

monetary situation has been char¬

other countries/ was responsible
for the lion's share of the expan¬

acterized by a marked
expansion
of the quantity of
money, both
bank notes and bank
deposits, an

sion of the

quantity of money.
of been a sharp decrease in sales in in/Holland, the report states:
; The.split of the created money
will August, especially group policies,
expansion that was* not, accom¬
into income and capital money
but September held up well.
not be repetition of a rush by the
what order will he draw on
cash, panied by a proportionate increase; is
of great consequence for the
"The British also achieved wide deposits, war bonds and
public to cash their governmental
insur¬ in the flow of goods available for
nature 'of the
bond holdings.
distribution
of
monetary strains
'
4
- •
savings
bonds, ance?
for consumption and investment.
which the money-creation brings
"In many quarters," < states the called National Savings Certifi¬
"As to the great
majority, who In this respect the situation in
in its train.
These tensions, in
National City review, "apprehen¬ cates, during the war.
These Cer¬ remain employed, will they hold this country can be
compared with
sion has been expressed that the
tificates, like our Series E bonds, their bonds because they want the that in most other countries where fact/are a result of the owners'
impulse to spend the money.
end of, the war might be followed pay no interest currently but ac¬ security of personal
It
savings, or in fact a similar development has
will
be obvious
that the threat
by a rush to redeem a large pro¬ cumulate it until maturity (also will they cash them and spend taken place.
of inflation is much greater in the
10 years) at 3.17% per annum the proceeds
portion of the $46.7 billion United
because, on the con¬
An element
pre-eminently char¬ case of / unspent income money
States Savings bonds outstanding,
(compared to 2.90% for Series E) trary, they feel security by rea¬
acteristic of the development in
than
in that of hoarded capital
thus
aggravating
the
inflation for the fully taxable series and son of having a job, with unem¬ this
country is the relatively great money. ' - /
•
1 \ /,
danger while goods are still scarce 1.41 % for the tax exempt issue. ployment compensation and old
/
importance of the creation of
and burdening the Treasury with Likewise they are non-negotiable age pesions to fall back on?
■As
regards the sources from
money to cover disinvestment, ow¬
which the creation of money has
heavy demands for funds in addi¬ but cashable at stated advances
ing to, the fact that on a large scale
Survey of Liquid Resources
over the purchase price at stated
tion to its current requirements.
arisen, two main factors .are to
a
process has been witnessed of
be mentioned:
People remember that after World intervals, and are available in
"People have been endeavoring
conversion
of real
capital into
to amass facts upon which to base
War I many Liberty bonds were small
denominations,
with
re¬
1. The granting of credit to the
money capital.
The liquidation
thrown on the market with so lit¬ strictions on the amount which an opinion on these questions, and
"State, and
<
/
of commodity
stocks, the sale of
tle regard for what they would may
be
held.
Redemptions of the correct answers are of great
2. The
purchase of Marks by
investments, the seizure of indus¬
bring as to drive them at one time British War Savings Certificates, interest to those who have goods
trial equipment and durable con¬ the Netherlands Bank.
in 1920 to an 18%. "discount.
Of on an annual basis, rose from to
sell,
to
government
policy sumer
goods (motor-cars, etc,),
course, no real analogy can
be about 4% of the amount outstand¬ makers, and to financial institu¬
Credits to the State y*.
the
non-replacement
of
worndrawn because the present savings ing in 1943 (compared to 7Ms %
tions; Because of the importance
The
money-creating grant of
bonds may be redeemed at cost for U. S. Savings Bonds) to nearly of learning more about the hold¬ parts of equipment, all these are
factors making for disinvestment credit to the state was effected
plus accrued interest—the $33 bil¬ 5% in 1944, 5*/2% in the first ers of liquid assets and their atti¬
and in so far as the owners of on but a comparatively small scale
lion of Series A to E on demand eight months of 1945, and 8%
in( tudes toward their holdings, the these
objects
were
recouped by the Netherlands Bank (there
and
Series
F
and
G
on
one
September, 1945. Roughly, then, i Board of Governors of the Fed¬
periods
during the; war
month's notice—but it is a matter the British small saver has been' eral Reserve System requested the through creation of money, it may were
be said that the expansion of the when this credit instrument was
of concern to everyone that the only about half as ready to cash Bureau of Agricultural Economics
good effects of wartime savings in his war savings as the Ameri¬ to conduct two experimental sur¬ quantity of money created no in¬ entirely unused) and by the issue
should not be undone.
can, but in each case the rate of
veys.
The results !of these sur¬ come money, but capital money. of currency notes;. by far the
"However, the figures to date redemption is half against as high veys, made in January and Feb¬ In other
ex-occupied countries too greater part was furnished by the
The ruary, 1945, in Birmingham, Ala¬
indicate that redemptions of sav¬ since the end df the war.
this process has taken place; in private banks and the rest by the
ings bonds, while ; substantially higher rate of redemption in the bama and Douglas County, Illi¬
the warfaring and neutral' coun¬ Postal Cheque and Transfer Sys¬
higher than last year or earlier United States may be due in part nois, are described in the Sep-:
tem.
The figures were the fol¬
in
1945, were little affected by to the volume of bonds sold on fember Federal Reserve Bulletin. tries it Remained within much
condition

financial

favorable

the people as a whole there

-

-

1

-

;

which

plans,

deduction

V-E

payroll

alarming

the British have not used..

V-J Day.

"As in the past, redemptions of
F and G bonds, purchased largely

Day and have pot reached
proportions even since
Redemptions of all U. S.
Savings bonds reached a peak of
$464 million in the tax month of
March, 1945. Lower figures were
reported for each of the next four
months, followed by a rise to $531
million in August, $528 million

"Perhaps

the

most significant
by the Board,
subject to qualifications relating
chiefly to the scope of the survey,
conclusion

by corporations, banks (for trust
funds) and religious, philanthrop¬
ic
and
educational
institutions,
are much lower than for Series E,
which may be

held only by indi¬
in September, and $616 million in viduals, and the smallest denomiI nations show the highest rate of
October.
"September was the first month ■ redemntion
to show an excess of redemptions 1
R
Average Man's Position Improved
over sales, which were $514 mil¬

'that

is

the

security
been

desire

economic

for

advancement

and
most

the

has

leading to the accumulation
liquid assets.' The 'security'
purposes most stressed were for
hard times* 'rainy days,' old age,
emergencies and children's educa¬
tion, while 'advancement' meant
chiefly the purchase of permanent
assets—farm, farm equipment or
home for farmers, and home in
the case of non-farm families.
Farmers also saved to repay mort¬

,

/• {„'

y//>

October. /

,

value of about $1,000.
Personal
has diminished during the

•'

debt

"Although each form of saving
is influenced by factors peculiar to
'

war

All

itself, it is interesting to note that
turnover of savings bonds
com¬
pares
favorably / in
with that of savings

now

as

much

/ generation,
sources/
"On the other

insurance is

as

in

ous

deposits, al¬

the previ¬

liquid

re¬

c

tant factors

decreased from 26%
of
amount on deposit in 1941 to a
21% rate in the past year, and

redemptions from now on.
Al¬
though employment may increase,
unemployment also will probably
rise for a while since reemploy¬
ment can hardly keep pace with

have

about

the

same

so

far in

the

1945.

panies on account of lapses, sur¬
renders, etc., according to the In¬
stitute of Life Insurance, have de¬
creased from nearly 20% of the
total

reserve

against

rate of

return

of

men

from

military to civil life. While loss of
pay is cushioned by tax-exemot
unemployment compensation, will

Payments by life insurance com¬

the unemployed

worker draw on
maintain
his
living* or will he cut
expenditures to fit his reduced
*
—.

his

savings

to

'standard of

insurance

policies —-— contracts
and —
itstanding in 1941 to about 6% f income^ ? If he uses up Savings/in

and hllllUHj
annuity




*

ble

t

deflation

in

case

wide¬

of

spread unemployment or depres¬
sion.

hand, two impor¬

will tend to increase

drawals

of deposits from mem¬
bers of the Savings Bank Asso¬
ciation of the State of New York

paratively small part for readily
consumable goods, but rather for
permanent assets such as farms

the, .average family is and homes. They may, however,
worth
probably
at
least constitute a cushion
against possi¬

told,

three times

proportion

the comparison with life
less favorable. With¬

though

to the lowest point in years.

*

1940

1941

'

1942

1943

1944

(In millions of guilders)
Private

Bank

83

261

18

176

404

1.034

1.586

1.726

2.016

202

"310

358

407

509

_

Banks*

320

Postal

Cheque & Transfer System
Currency notes—

:

165
•

Total

\

1:

1

•

486

690

91

117

138

217

2.079

2.447

2.742

41

1.646,

2.920
584

-

:

263

3.858

"Figures
of
the
Amsterdamsche
Bank,
Incasso-Bank.
Rotterdamsche
Bankvereeniging and the Twentsche Bank ("Big Four") —the - Nederlandsche Handelmaatschappij (Netherlands Trading Society) not taken into account, because the balance
,

sheets

2 to

included

reach

a

Dutch East-Indian business up to 1940—multiplied by the coefficient
rough estimate for the whole group of Dutch commercial banks.

(Continued

•'

2218)

page

on

NOTICE OF REDEMPTION

*

•

V.

;

r.
„

v.

■

£«*/.

i

;

ht'&i

<•"

:•

v-1

i:/ / •?;V.T-&S ^/V./

-

'.•>£ v' 'J

'Jf-X /«• ;•%/.//:,£ V-' '• /'/•.•/•

to the holders of

NORTHERN PACIFIC

.

•

1939

•

Netherlands

tive

of

lowing:

The said disin¬
1938

important incen¬

"In trying to foresee the prob¬
gain in amount
outstanding was reported, after able scale of redemptions over the
crediting $41 million accrued dis¬ near future, various conflicting
count
(increase
in
redemption influences appear.
Most impor¬
value of outstanding bonds).
In tant, perhaps, is the fact that gage debt. These traditional ob¬
October,
which included three people as a whole are better off jectives of saving were cited as
In their prime motives by 85 to 90%
days of the Victory Loan, sales financially than ever before.
exceeded
redemptions
by - $8 the past quarter century per cap¬ of the respondents, only about
ita savings and other time depos¬ 10% admitting saving for current
million.
its have more than doubled, de¬ expenditure. Whereas 60 to 75%
"Because sales are so large dur¬
ing drives and relatively low be¬ mand deposits and life insurance of those replying expressed will¬
in force have each trebled, and
tween drives, a better measure of
ingness to cash war bonds to buy
the significance of redemptions is currency
in
circulation
quad¬ permanent assets, only 20 % would
their relation to the amount of rupled.
Individual liquid assets, use them for the purchase of
bonds outstanding.
Since Pearl including only currency, deposits 'durable goods' and 11 to 15 % for
securities, are 'luxuries.'
Harbor, redemptions of savings and government
„/ V. •, *«V/'\ *
bonds have risen from an annual now estimated at .approximately
"To the extent, then, that these
rate of 3% of the amount out¬ $1,000 per capita or nearly $4,000
replies are representative and in
standing, in late 1941 and in 1942, per family, to which should be so far as people live up to their
to 11% in January-July, 1945, to added life insurance with a face
worthy intentions, it would ap¬
14% in August, 14% in Septem¬ value of another $4,000 per fam¬
pear that holdings of war sav¬
ber
and
16%
per
annum
in ily and with a present asset ings bonds are destined in com¬

lion, but a slight

bounds.

narrower

drawn

RAILWAY COMPANY

REFUNDING AND IMPROVEMENT MORTGAGE

6% BONDS,

SERIES B, DUE JULY. I, 2047

to

NOTICE la HEREBY GIVEN tha.t Northern Pacific Railway Company has elected
pay off on January 1,1946, all of the above-mentioned Refunding and Improve¬

redeem and

ment Mortgage

interest on such

6% Bonds, Series B, at 110% of their principal amount, together with accrued
principaiamount to said date, in accordance with the terms of said bonds and
F Article

"

*"

.....

--

oonds at the office of J. P. Morgan & Co. Incorporated, in the
Borough of Manhattan in The City of New York, N. Y., the principal thereof, together with
a premium of 10% of such principal amount, and accrued interest on such principal amount
to said date. From and after January 1, 1946, interest on said bonds will cease to accrue and
payable upon eacn oi saia

any

coupon

for interest appertaining to any such bond and maturing after said date will

become and be null and void.

,

r,

•

,

,

f

'

.

Coupon bonds should he presented and surrendered for payment and redemption as

attached. Coupons due January
1,1946, may be detached and presented for payment in the usual manner. Interest due January
1, 1946, on fully registered bonds will be payable only upon surrender of such bonds for re¬
demption. Registered bonds, in cases where payment to anyone other than the registered owner
is desired, must he accompanied by proper instruments of assignment and transfer.
aforesaid with all coupons payable July 1,1946, and thereafter

-

NORTHERN PACIFIC RAILWAY COMPANY

"After World War I the peak of
bond liquidation came more

war

By

A. M. Gottschald,

than

a year after the Armistice,
and bank holdings, of governments

New York,

Y., September 26, 1945

Secretary

most

sharply in 1922.
This
time some increase in redemptions
is to be expected; from now on
in any case, because the figures
rose

include the automatic

redemption
maturity of the earliest issues,
began maturing in March,
1945.
But these redemptions at
maturity are a minor factor, the
at

which
r

total

due

in

being' only
bonds

now

the

2.8%

next

of

3 V\

all

outstanding.''

years

savings
%

r !

/

/

/

OFFER OF PREPAYMENT

;

/

Holders desiring to receive immediate payment of the full redemption price including
interest to January 1, 1946, may do so upon presentation and surrender of said bonds at the
office of J. P. Morgan & Co. Incorporated, in the Borough of Manhattan in The City of New
York, with the January 1,1946, and subsequent coupons attached.
•

effect

Netherlands

1941
1941

1940
1940

1939
1939

1938

7-.q.

(in millions of

the

of

portfolio

Reichsmarks

,'j.Netherlands Bank

4.518

there

too

proportion between the money*creation through credit exten¬

the

was

a

In

spite
of these measures,
and prices have risen to a
certain degree.
Since May 1940
no index numbers of prices have
wages

and through Marksportfolio to
nancing and back again.
Both
the growth of the Marks portfolio
factors, subsequently, should be
was-cto a certain extent, depend¬
considered in connection with one

sion'to the Treasury

circumstances. Thus

ent on casual

published anymore,and of¬
ficial statistical data concerning
the course ; of wages
have also
been
lacking.
According to a
rough estimate the retail trade
index number, since May 1940, has
risen by 50% and the wage level
been

another.

contributions for
Besatzungskosten" (ex¬
ternal occupation-cost) used to re¬
sult in a shift from the Marksportfolio to Treasury financing.
An increase or reduction in the
amount of this cost would have
the3 monthly

"aussere

Commercial Credits

Decline in

and Gold

Against these two factors that
increased the quantity of money,
there were. two which had the

the Treasury financing opposite effect viz:
Marksportfolio more into
(a) The decline in the volume
prominence.
The same remark of commercial credits and credits
applies to the period from the against securities, and
end of June 1944 to the middle of
(b) The decrease of the gold
August of that year, when the stock of the Netherlands Bank.

in

Treasury, in

out

brought

connection with the

gf?'*
Loans

<b)

Gold stock

1.026

903

932

931

1.873

1.635

1.443

1.407

1.349

—310

•"

:#•>

(in millions of guilders)

Bank

2.116

3.034

41

117

138

1.480

1.975

2.452

2.588

3.493

2.649

2.633

3.568

4.685

5.760

V 7.188

-

—2

Total

-

1944 Total

1943

1942

1941

1940

(in millions of guilders)
935 1.117 1.075 1.428 2.207 6.746

'

-

tal

5.078
'263
4.054

9.395

figures,

a

when they are compared

such. The growth of
the population, the mobilization of
the labor reserve, the rise of the
price level, are all of them fac¬
tors allowing of an increase in the

with the

development in other countries.
The
divergence
between - the

both those
figures arrived at_by means of
approaching the increase in the
the two methodS~of approximation
quantity of money from the side
above figures,

The

of the

of money creation

sources

those

and

based

on

the different

parts of circulation, are not suf¬
ficient to afford a perfectly exact
and complete insight in the actual
monetary situation.

Increase

For

in Banjk

Deposits

thing it would be un¬
that all the selling of
treasury paper to private banks
and
to the Postal Cheque and
Transfer. System has had a money
creating effect.
Whether this is
so or not, depends on the nature
one

the

institutions
chases in

of which

out

means

financed

question.

of this remark bears

tion

the

the

pur¬

The antipole
the ques¬

on

if all withdrawable

with

these

banks and

balances

the

above

divergence
which, it will be noted, appears
only for some year periods and
not for the end figures) may be
mainly due to the fact that the
figure for bahk deposits does not
comprise the "other deposits" in
the

true to say

of

outlined

Netherlands

(a

Bank.

On

pur¬

these deposits have not been

pose

included

to

avoid

ing, because
majority of
those

double

these

deposits

of the banks.

other

count¬

then

and

now

In

far

so

not

be

done

they

as

The subjoined ratio figures (in¬
dex numbers, basis 100; close of

Postal
Cheque and Transfer System are 1938) may convey an impression
to be looked upon as bank money. of
the
proportion between the
Part of them should undoubtedly monetary
development
in
this
be classified as time deposits and country and elsewhere. It should
are therefore unjustly counted in
be
observed
in this
connection
as
bank money.
On the other that for the majority of countries

hand, important amounts of treas¬
ury
paper have been taken
up
also by the savings banks, whilst
a
proportion of the means en¬
trusted

to

these

complete, or even approximate,
figures can be found regarding

no

the volume of bank

available

institutions,

owing

with

a

slow rate of circulation

least for the

the

divergence

have inaccurately influence
figure, which is an aver¬

may
very

which

between the rises of the note cir¬
culation and
the bank
deposits

though formally savings, is in sub¬
stance bank money, albeit

to

deposits. The
figures had to suffice,

(at

the final

present).

age number.
1938

1943

1944

100

186

210

u.

100

242

271

100 •

356

486

100

451 k

100

2712

100

315

100

151

100

137

s.

a._

'Germany

f/

France

duction

restored

is

"full

to

.

_

:

—IIII

Belgium
Sweden

stands

It

liquidation

to

of

12

Switzerland

2

.

502

to

no measures

had been^taken

have dtvciuyeu.

400

167
,

.

'
'k.-

■

153

l^ute

everywnere

pansion of the monetary circula¬

else, the authorities in this coun-i
try too have tried, by measures

tion

of

prevent the effect of the ex¬
.pn

prices and wages, a trend

towards inflation

would,

no




doubt,

price

em¬

„

.

as

was

namely the growth of
portfolio of the Nether¬
lands Bank, the money market
might on balance have shown
greater abundance, unless the rise
of the banknote circulation more

country,

the Marks

this creation of
in fact mostly the

the

substantial part

a

circulation
will be the nearest object of the
monetary policy of the Govern¬
ment. Part of the money-quantity
the

of

excess-money

will, of course, be "extinguished"

the pay¬

quasi-automatieally. by
ment of the excess of

this

the

in

exports

future, but

near

factor will by

no

whole

for, the

count

imports over
means ac¬
■

monetary

surplus. ?he .monetary recovery is
in fact one of the striking eco¬
nomic needs. These measure have
already been started by the can¬

;of the
banknotes, of
and will shprtly be con¬

cellation

f 100,—

steps.;

tinued by further rigorous

has

versal

been

a

money

private

the

needs

most

be

money

control,- rationing, -and tively,
fixation of wages, to check this central

that

rates

on a

market has been

great ex¬

could

supply

authorities
so

al¬

far it can;

conditions

low level in view

rates

interest

the

on

war
treasury

in this country were fixed
open
market, the paper
being allotted 2 by tender; since
May 1940 the situation has been
such that the Treasury fixed the
rates at which treasury bills were
sold.
If
the total need of the
paper

in

the

in

the

plans

Act,

Company

was

on

schedule this week.
The American Power &
Co.

terday

block of 840,000
stock of the

a

on

Light '

to open bids yes¬

due

was

shares of common

Central Arizona Power & Light 1
Co.
Best indications as the time for

placing of bids approached, were
at
least
three
investment

that

banking groups would seek the
stock, for reoffering to the public^
Canadian Call Due
another

As

step

its official

in

for reducing as far as
possible the volume of its out¬
standing obligations payable in

program

than

other

currencies

Can¬

the

dollar, the Dominion is ex¬
pected shortly to call for redemp¬
tion early next year $55,000,000
of 3%
bonds due to mature in
adian

1967.

any

is subject to

issue

This

•

call on
104 and ac¬

interest date at

crued interest.
It is recalled that Canada,

quite

called for payment on
Nov.
15 next, $40,000,000 of its
3% bonds which have until 1968
recently,

to

run.

Should

of

3s

call be issued for the

a

1967,

it

expected,

now

as

would suggest that

similar action

might be expected as soon as pos¬
sible with regard to

$30,000,000 of

3s of 1953 and a similar amount

of

,

greater than the
money market
could supply, so
that in case of free market condi¬
tions with a normally operating
mechanism of rediscounting the

Treasury

interest

ities,
sold

Bank.

3s due in
on

45

tariffs

have

would

gone

the

the
could absorb at a rate of
convenient to the author¬

whilst
direct

remainder was

the
to

Thus it

the

Netherlands

could happen that,

1958.

days'

after Jan.
'

Both

■

Hard

-

for

i'-xi,X

■;

-

Investors

Canada

Should

pursue

be the case,

who has

The

the

indicated above, and there

is every indication that

not be

callable

at any time

notice,
%

course

are

1 next.

•

was

such will

the lot of the investor

hejd such securities will

especially
supply

enviabfe.
of

new

bonds 1

coming to hand is so infinites-*;
mal that those who would be

forced to yield their bonds

q»«C

der a call, would face a severe"
had to sup¬
problem in the matter of rein¬
port the market in such a measure
vestment.
that a fairly large amount of paper
was
taken by this
institution,
However, at the moment there*
yet the tariffs at which the paper
is an increasing tendency on the
was offered were sometimes low¬
ered, a policy which was funda¬ part of investors in the direction
mentally:; different
from
that of choice equities, judging by the
which was customary when the

while the central bank

market & remained, % rela¬
easy.. However, the, money-market
nnoratp frpplv
bank in most countries

very

of the

position. Before the

budget

interest

entirely. " In

said

everywhere was

war

the

in the
almost
to keep interest

conditions

under the

arising

Holding

market, because the policy

this

banks

of

the

quantitative

market

in

developed, the

discount rates has
always clearly reflected the
of

course

uni¬

predit needs of the gov¬

the

the money market

practically

phenomenon

that the

countries where
the
above-mentioned
tightening
of
the

In

up,
the amount offered to
market was confined to what

The Money Market
It

was

.* *

of those huge op¬

one

public utilities to bring them¬
selves into ' conformity with the

case.

not

v

that

reason

ernment, which rose by leaps and
bounds. In fact, the situation in
most countries has been such that
the ad hoc creation of money by

355
•

had also other sources,
in fact the case in this

struc¬

of

There where the creation

reasons.

amount of
power
of

leaves an
purchasing

round f7 milliard.

tent the

"

Holland

v.If

■;

erations

of money

money, as

able to cover to a very
England

on

the Victory '
of sup- >

Big Stock Issue
Another

than compensated

are

unknown; the consequence is the
possibility of divergence.

authorities,

balance, of the
money-market position was logi¬
cally to be expected for the above
tightening,

a

culating mediums, if the rise in
prices, which has taken place, is
of a lasting character, and if pro¬

floating

are

tension of credit to the

milliard, it may be as¬

ployment"

as

exclusively due to the ex¬

once

portance to the savings
ture of the nation.

panded creditor balances in ac¬
count current, on the other hand.
There where the creation of mon¬
ey was

tap,

on

porting that rate which it main- *
tains
is
of
inestimable
im-r

and first liquidities (other
money-market material)
carried by the banks, which were
the sequal' of the strongly ex¬

sumed that the actual need of cir¬

the

keep 4 deposits
with the central bank they should
be included in the figures.
This

circulation due to pub¬

long-term
ineligible •
constantly or fre--

a

money-

the necessary conse¬
the expansion of the

,

Loan is over, as a means

since the

This tight¬

'.

issue,

than

only be rough ones. Basing one¬
self on a total quantity of money
of fl0-ll

of

ex¬

suggest that the Treasury

It

cash

quantity of money without any
development of floating purchas¬
ing power.
'
"
Estimates in this
respect can

institutions

could

the volume of the

as-

money

should

was

while

Federal

the

to

higher yield issues.

term

expenditure on; the one hand,
and of the increased amounts of

money" and "capi¬

measure

the

noticeable

of the war.

banknote

money."

To

was

it

credit,

tending their holdings of longer-*

lic

floating purchasing power, is by
no means a simple task.
Of course
it would not suffice to regard the
total increase of the quantity of

be viewed
certain reserve, especially

consequently,
with

1039

217 "

above-mentioned

-The

ground of these figures

the increase arrives at:

—16

3.478

1.552

1.656

deposits

On the

,

1.152
1

992

——

notes

ening

the

respect f to

wfth

"income

into

1944
' ,

1943

1942

1941

1940

1939

1

Banknotes

particular

of

tightening

quence

fundamentally important division

'.'■■i

Currency

the following

'

.

1938

already above re¬

the character of this
"floating purchasing power," in

garding

monetary increase appears from

The nature of the

terms

also

outbreak

bank

of

Inflation

holds,
is
inevitable under the
present setup which induces banks
to
borrow
from or
sell shorts

appealed to for the fi¬
nancing of the ultimate needs of
the state.
On balance, therefore,

the excess
over the
needs. Some remarks

have been made

1943
1944 Total
guilders)
1.731 2.362 6.727

sequent inflation of bank credit.

quently

market

they

themselves found lodgement

or

adopt

some

that

ground

of other securities to the banks

intermediates will fall off
with
the passage of
time.
In the two year period,

supply

money

circulation
1941
1942
(in millions of
851
1.105 ' 988

1940

1939

.

figures:

the

of

the

there after the drives with con¬

ury

was

intermediate matur¬

on

on

either caused excessive shifting

sharply

chasing power," being

arrive at:
'&$>.-

price

the

of

rise

and/or

the

ahead at

look

a

the bank, recently 2

says

offerings, the volume of Treas¬

the

the outlined development
has, also in this country, given
rise to the accumulation of a sub¬
stantial amount of "floating pur¬

418

1 102

considered as

ably grown without any propor¬
tionate increase in the flow of

above-mentioned the figures of increase

ground of the

On the

475

1.998

2.512

Total

540

1.014

1.461

Netherlands Bank

609

ities

effect of Government
as regards
rates and
maturities, the bank points out
that, unless replenished by new

far-reaching monetary effect).

goods
level,

776

Taking

com¬

are

have been cutting down the

volume

possible
policies

quantity of money has consider¬

1944

984

1.051

security

collateral

»

'

against

advances

1943

1941
1942
(in millions of guilders)
1940

1939

slightly under 2.5%.

pure

Like in all countries where

following:

the

percentage
other countries

principal

symptom of inflation, but
rather as a result of scarcity with¬

from

may

the

these are not to be
a

these

consequent on
be estimated

money

factors

1938

■

.

and

(a)

of

certainly not

is

City Bank raises the ques¬
further the de¬
cline
in
bank eligibles can go
without affecting rates on ineligibles also.
The yield on longestterm bank ineligibles, it notes, is

Still,
we

tion of how much

than the average

Banks

to

holding short-term in¬
terest rates at their present level."

tional

rises in
prices in the black market, but

quantity

reduction in .the

The

conditions prevailing in the
money market, took over a part
pf the holdings of Marks from the
Netherlands Bank, and to the foleasy

Citing the steady decline in
yield rates on intermediate and
long-term government paper, as
note
the drop in yields in the
five
to ten-year category
from
1.70 to 2.13% at the end of 1942;
to 1.35 to 1.64% currently, the Na¬

spell

Reserve

the

and

(not reckoning the strong

the

or

which

25%,

by

more

latter

to

seem

mitted

the other.

creation from
Treasury fi¬

the accent of money

Holland on one

in

Belgium and France on

side and

In these cases
casual shift of

the

figure may
scarcity to
many," says the bank," it can
easily prove such in a money mar¬
ket that must be kept constantly
supplied with funds so long as in¬
flation of bank credit continues,

difference

situation

the
tion was reversed.

"While

hardly

respect there is a
between

this

In

ances.

fundamental

—

—

be observed that

figures it may

1944

3.214

billions to

perience that a rise in prices ac¬
companied
by
an
advance in
wages cannot be undone any more
without
serious
social
disturb¬

the above lowing period, when this transac¬

with

In^connection

1943

1.742

930

15

—

1942
1942
guilders)

will slump from over $33
barely $10 billions. ;

years

respect, as it is known from ex¬

by the

1946 to Jan. 1, 1948, se-

curjtles'callable in fiveto ten

great importance in this

been of

(Continued from page 2217)

creation as a result of the purchases of Marks
Bank is illustrated by the following figures:

money

Jan. 1,

possible.
The
in particular has

as

fixation of wages

Monetary Developments in Holland
5
1 The

much

as

.Thursday* November 8, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

2218

mechanism
k

■

"

could

behavior: of such stocks in recent

weeks.

v"

""

Volume 162

Number 4436

THE COMMERCIAL & FINANCIAL
CHRONICLE

in

Railroads Are

Looking Ahead

*2219

some

cases, or for a
of the two.
Where

tion

combina¬
traffic

turned from the rails for

sucn

(Continued from page 2215)
only in the way in which they

to

communications. It deals with the

transportation facilities, and the
impact of taxation.
The importance of investment

economics of cutting down grades

in

as

or

straightening out curves, or of
increasing the pay-load of freight
cars by reducing dead weight.
It

hardly

is

the

load, but also in
the economy with which the job
was
done for the government. In
three

the

war

1918-1920, there
the railroad

years

^

collected

was

from

'

companies $146,000,000 in Federal
!

Income taxes—but

there

years

during the same
deficit resulting
operation of the

was a

Federal

from

railroads amounting to more than

$1,600,000,000.

During the three
between

and eight months

years

Pearl Harbor and the end of

war

with
Japan,- the railroad com¬
panies paid in Federal taxes more
than $4,235,000,000—and there was
deficit

no

account

on

Federal

of

to be met by the tax¬

operation

matters

of

track

structure, of
bridge engineering, of signals and

transportation

service

tion

How successful that type of re¬

the interior of

the railroads

railroads,

be gauged by over-all results.

may

bearer

Perhaps the best single statistical
of

put
for

the

as

freight train

average
hour it is

each

the

on

of

Value

Privately

Operated

Railroads

This net difference of nearly six
dollars

billion

position of
treasury in the two

Federal

the

is

wars

the

but

in

of

measure

one

the

value to the nation of its

privately
.operated
railroads. During the
.first World War and the period
immediately
afterward,
it was
necessary
to
increase
freight

man

by an average of approxi¬
mately 60 per cent.
At the close
of the second World War, freight

figure which reflects not only
train loading but also train speed

he

is

the

kept moving without interrup¬
tion.
Twenty-five years ago, this
hourly transportation output of

higher than when

no

were

began, despite major wartime
taxes and the

war

still

of

adequacy

contrasted

as

war

dependability and
rail service in this

the

was

culties of

a

with the diffi¬

quarter of a century

ago.

There's the record—but it is one
which

on

railroads have not

the

of

quarter

a

it

achieve

to

such

the future at

Progress
service will

the

take the

better location of

of

to

keep trains moving
steadily, greater strength fir

combined with lighter

cars

weight,

improved

springs and smoother
trucks, more powerful and more
efficient locomotives, capable of
higher sustained speeds—all to

the slightest intention of resting. I
mention the record here merely to

the end that trains

bility and expansive capacity, the
dependability, the same effi¬

same

and

ciency

the

abled

economy,

railroads

which en¬
meet

to

the

nation's need in time of war, are

just as necessary for the peacetime
prosperity of the people of the
United States.
Rails

their

Ahead

Look

war

through

not

are

job, and will not

the, armies are home and
demobilized, but, while they are
finishing that job, the railroads
are
looking ahead, and working
ahead, toward the better service
which is expected of them, and
which
they
expect to
render.
Never in all the long history of
railroading has research been car¬
ried on so actively, in so many di¬
rections, on so broad a front, ana
with such promising possibilities,
toe until

"

This research is being

,

carried on

individual railroads, by
groups of railroads with common
problems, and by the Association
of American Railroads, acting for
the whole industry.
But what the
railroads are doing is but part of
the
picture.
Railroads do not
make, but buy, most of the equip¬
ment and materials which they
use in their business of manufac¬
turing transportation service, so
that the vigorous research of the
companies which furnish railroad
equipment and supplies consti¬
tutes a most important part of the
overall picture.
the

toy

'

is not easy for

It

fessional
1 out

of most

is directed
as

to

eye

see

the non-pro¬
what comes

pf this research.

It

to such improvements

seemingly slight changes in the

shape of rail, for example, or the

] f6rimto^|ail joints,
'

ular

composition

the

;
■

to

imiproved

cally

steel

It goes

methods of chemi-

preserving

cross-ties,

or

welding; worn
hidden-flaws in

ahetals.




i

It/goes

,

better

schedules,

The

They will be better ventilated and

air-conditioned,

better

lighted. Seats will be more com¬
fortable, and many of them will
be adaptable for both day and
night use.
There will be a great
increase in the number of

private-

sleeping accommodations on
trains, to be sold at prices little
room

above

that

of

berth,

and

a

three-tier

the

lower
line of new

present

whole

economy

in which berths

sleeping

are

to

cars,

be sold at

prices below that of the present
upper berth.
There will be new
and

smart

dining

lounge
club cars, recreation cars of

cars,

various

cars,

sorts—all
designed
to
trip by train a thing of
comfort
and
relaxing

a

restful

pleasure.
The people M the United States

expect

such thing* as these of
railroads, and that expecta¬

their
tion
to

the railroads intend to meet

the

must

full.

In

doing so, they
face problems and surmount

difficulties. Some

are

in the fields

of railroad

technology. These the
railroads can, and will, deal with.
«r

Public

Policies

Toward

Railroad

Investment

Other questions cannot be dealt
with and disposed of by the rail¬
roads through their own efforts,
but must be acted upon finally
by public authority, in the light of
public understanding and senti¬

ment.

"

These
cases,

problems are, in
important and

many

more

more

difficult of solution than the tech¬

jprtobierh$ ; Which

roads can
resources.

;

the public

ih£ ^frail*-

handle* with "their

own

They have .to; do v with
policies which f affect

the nature and source of the in-

vestment

*

necessary

create

All

of

money

War

them.

rail¬

the

and

service

public.

In

the

case

other

of

general transportation,

4 i
forms

little

because

railroading is

the
of

country.
that

The

private

•

.

Postwar

Planning Corifmi'ttee:
Amos C. Sudler, of Amos^C'.l.Sudler and Company.
Personnel

Committee:

JBurdick

its

in'

other way.

no

nest
and

get the

best

results

in

Aaron

and

is

an

,

,

Educational

among

Committeef J. *W. '

Coxhead, of Bosworth,
Loughridge and;
Municipal
B.,

all

Chanute,

Committee:

Coughlin,

Company.

of

Edward

knd

Coughlin

■

-

f

for
Legislation Committee: W.;.C!.
transpor¬ Brinker, of J. K. Mullen Invest¬
high or¬ ment Company.
' ,v> 4:^.

as

Taussig Heads IBA
Mississippi Vy. Group;

the best service of which
they are

capable, produced and sold
lowest

■

Committee:

a

4''. 4.44

-

4

Conduct

W.

calling

and

statesmanship of

So far

Stone,*. Moore

Pleasants, of Interna?-,
Trust Company.
^
Corporation* Securities"* Com-v
mittee: J. Fred Brown, of^Boett-'
cher and Company."
* ~

To create such

task

a,

of

tional

the

such

E. Stone;
Company.

Business

Peacetime

the railroads are con¬
cerned, their peacetime task is to
provide transportation service—

■

The following Committee heads
also elected:
i

,

meeting vital needs in great emer¬
gency, as they could have been

■

of

!

"jwgre:

self-supporting, Simons, of Sidlo, Simons,:R0berts
tax-paying railroads, under busi-r and
^ • C"
ness
management* are capable of 4 Entertainment Committee: Er¬

der. '

to

chosen

were

has

war

T'\
officers

lin
of
Coughlinand Company;
Secretary-Treasurer: Bernartcj£ F.
Kennedy of Bosworth, Charriite,
Loughridge and Co. ^ f ^
^

people,

this

or

Vice-President: Edward B. Qbugh-

The question is of real
moment,
not just to the
railroads, but to
all business, and all the
shown

on

annual

Other

in which success
depends to so
great an extent upon the volume
oLtraffic.

of

the

&

more

business

a

elect¬

was

about Nov."23,
convention^l; in
Chicago. Mr. Youmans succeeds
Earl M. Scanlan, Earl M. Sc'anlah
after

diversion of traffic from the rails
is serious—and the more serious

tation

required for

rail

to take office

pf providing and op¬
erating the moving vehicles. Such

public consideration

private

better

while
forms

cover

Paul E. Youmans of

Company,

Rocky Moun¬
tain Group of Investment Bankers

than the cost

Private

which will be

better

,

other

some

need

conditions

lars. And private capital is lookedto to make the further improve¬
ments

the. service,

the costs involved.

than eleven billion dol¬

more

of

transport

job, considering service

the

on

of

rates

Oct. 23

ed Chairman of the

as
will
cause traffic to flow
naturally to
that agency which can do the best

investors
capital has
improved them, having spent for
that purpose since the first World

for

comfort, with no great increase in
top train speeds but with im¬
provement of overall schedules
through better sustained average
speeds.
Cars will
ride
better.

nical

of

4 from which rail is made.
•-r.

on

cars,

costs

ahead, there must be
equality
of
conditions
transportation agencies

just
but the
signals,

terminals and

On

Sullivan and
.

must be sufficient to cover all the

To

of the total invested in them.

built

carry more

In the passenger field, progress
will be toward smart and spacious

make

new.

as

freight

better

railroads

The

with

,

2%

the better serVice of the public.

can

and

4

But that is not always the case
and much traffic is diverted from
the rails because railroad rates

time

roads have amounted to less than

tracks, improved

and operation of yards,
refinements in signals and commu¬

more

locomotives and

costs.

own

render.

not

—

bearing its

footing

same

equally require the
service which railroads alone can

•

railroads

the

on

commerce will

of

ton

a

mile.

private investment.
public, funds ever spent

lay-out

nications

hauling

to

met

the whole thing—are the creation

freight

direction

which

man

of

basic

bring to your attention the point
that the same qualities of flexi¬

,

the

accelerated pace.

an

in

for

one

tracks

in

on

service
as

per

American

results

today, and will go

hour—but

an

30 cents per
The American rail¬

mile.

cent

freight

efficiency which enabled the failon

much

roadway

one

roads

no

employed,
earns a wage averaging
nearly a
dollar an hour—but the transport
tation service which he produces
is sold for an average of less than

The progress in technology and

goes

cent

-

himself

laboriously produces costs

user as

of

century

a

the

for

own

hard
Chinese
as

worker, on the other hand)
using an average of $6,500 worth
of rolling stock and $13,500 worth

ago.

increases in wages,

price of supplies, while the level
of passenger fares is lower now
than it was even before the first
World War.
And more important

only

was

what

his

road

average

times

with

work,
earn

a

human-

Working'

transportation
so.

ton per

train
was
in
the
neighborhood of 7,000 net tonmiles, or the equivalent of mov¬
ing 7,000 tons of freight one mile.
Now it exceeds 17,000 ton-miles—

rates

rates

the

the

work

can

can

than

more

two-and-one-half

where

must

carrier

road

—a

the

China, remote from

unaided muscle.

is the transportation out¬

measure

on

every

cost^.

on

be

American railroads, where
man's capacity is multiplied
and his work eased by the
plant
and equipment provided by in¬
vestment, and transportation in

per

per day, and per train per
hour, with less expenditure for
fuel and other operating

tation stands

can

overestimated.
The
illustration I can give you

best

car

search has been

facilities

of how great is its importance is
contrast between transporta¬

$imed, in short, at turning out

more,

transportation

and the extent to which the train

payers.

.

Elects Paul Youmans

sons, no railroad man could objec.
—provided each form of transpor¬

handled the

•

Rocky Mf. IBA Group s

is

rea¬

cost.

That

at the

ST. LOUIS, MO.—At the annual
election meeting of the Mississippi
Valley Group of the Investment
met the war needs of the nationBankers Association of America,
looking ahead and going ahead held Oct. 26, 1945, the following
toward better and better
service, officers were elected to serve for

tackling with the
determination

job they

with

are

self-reliant

same

which

they

capital provides the vehicles—an¬ year after
year.
So far as re¬ the fiscal year 1945-46:
~
4 .'
alogous to the cars and locomo¬ search and
technology go, the rail-?
Garfield J, Taussig, Chairman,
tives
of
the
railroad—but
the roads
know that this can be done,
much larger investment required
*
provided only there is kept up Taussig, Day & Co.
to provide the highways, water¬
that flow of investment in rail¬
Chapin
S.
Newhard,
Viceways
and
airways over which road facilities which in the
past Chairman, Newhard, Cook & Co.
these

vehicles

used

are

in

the

commercial business of transpor¬
tation is made out of public funds.

has

Bert
H.
accomplished results so great
Horning,
Secretarywhich offers for. the future
Treasurer, Stifel, Nicolaus & Combright a promise.
That, how- pany, Incorporated.
f

and
so

'

This difference in the

source

of

the. funds which have created and
the

maintain

ways

business, is

portation
creates

cult

fixed

the various sorts

which

for

the

carried

railroads

a

competitive handicap.
must sell

roads

enough to

over

of trans¬
on,
diffi¬

Rail¬

their services for

cannot
be accomplished
public policies which, in
all fairness, give to each form of
transportation equal treatment
and equal opportunity to do for

H. Schmoldt has become

the

the

ted

can

Terminal

ever,
without

railroads must
cover, out of the rates they charge,
the cost of building their tracks
and of maintaining them.
That
represents, for the ^average mile
of railroad, an investment in road¬
way, signals and the like, of about
$65,000 and an average annual up¬
keep of about $5,000.
And

these

tracks, railroads
must pay, also, real taxes—that is,
taxes not to be^spent on railroad
tracks or for the special benefit of
railroads, but which are spent for
the support of the general activi¬
ties and services of government,
such as national defense, public
safety, public education, public'
on

health and the like.

do

The movement of most

cial

traffic

commer¬

is

highly sensitive to
price considerations.
It tends to
go where the rate is lowest, pro¬
vided service is satisfactory.
Jn
the United States this

means

that

most freight goes by rail, because
for most articles of commerce and
over

mdst distances rail

freight,is

the cheapest and most satisfactory
form
of;; transport.
For
some

freight r moving
between
some
points, other forms of transporta¬
tion
are ^preferred,; perhaps
by
reason. of
the particular service
offered, o,r because of a lower rate
.

> vl

I*

•

v*i

country
of them

one

best.

/:•■/;

and

CITY, OKLA.—J.
associa¬

Small-Milburn Co.,

with The

Building, in Oklahoma

Texas.

.„

-

.

\

.

Now
Gordon
now

sole

Julian White Proprietor

Proprietorship
Stafford

Saunders

proprietor

of

is

ST.

64 Wall St., New
York City. Ferris S. Moulton was
formerly a partner in the firm.

White

Saunders

Co.,

MO.—Julian ' M.

LOUIS,

Gordon

White

is

now

and

sole

Co.,

proprietor

506

Olive

.

i.

/

i

•' & i' i*

of
St.

George M. White was previously
partner in the firm.
/

a

11—ir==nr=ni—11—ir=ni—11—ir=^ir=ir=ir=g

0
0
0
0
0
0 :
0.

NEW

YORK

STOCKS, INC.

RAILROAD SERIES

.

Importance of Traffic Volume
«

this

OKLAHOMA

cover

addition,

in

of

work which each

the cost of pro¬
viding and running their trains.
In that respect, they are like all
the other forms of transportation.
But,

people

With Small-Milburn Co.

0
0
0
0
0
0
0
0
0
0
0

Prospectus

on

Request

HUGH W. LONG and COMPANY
INCORPORATED

'

48 Wall

Street

New York 5

634 $0.

Spring St.

Los Angeles 14

.

Thursday, November 8, 1945

Glore, Forgan Will

Exaggerated Inflationary

Insurance Stocks
and

Bank

CHRONICLE

& FINANCIAL

THE COMMERCIAL

2220

Represent Mexican

Financial Interests

By E* A. VAN DEUSEN

(Continued from page 2207)

This Week

—

Insurance Stocks

World War I, fire insurance companies ehtered
prosperity and profits; it is not unreasonable to
after World War II the fire insurance industry will again

of increasing

era

assume

that

expansion and increasing profits, though not
necessarily in the same degree. It is of interest, therefore, to review
briefly the record of a group of 21 important fire insurance com¬
panies, since the Armistice of No-^
low year was 1933, with a volume
vember 1918. The companies in¬
of $241,576,000, but this low point
cluded are as follows:
was higher than in 1918 by 7.5%.
Aetna Insurance
The .year 1944 hit an all time high
Agricultural Insurance
experience a period of

Boston

with

Insurance

Continental

;

Insurance

Fidelity-Phenix Insurance

1

It is significant to note that
this rising volume of premium
business has been achieved against

Franklin Fire
Great American

a

Hanover Fire

average

fire premium rate
around $1.07; in 1929 it was

was

America

Insurance Co. of North

$0.89 and in 1942, $0.61.
Cur¬
rently, it probably averages less
man $0.60.
Net
investment
income
also

National Fire

Hampshire Fire

North River Insurance

Insuarnce

expansion
after World War I, moving from
substantial

showed

Prov. Washington

St. Paul Fire & Marine

$14,261,000 in 1918 to $28,414,000
in
1925, an advance of nearly
100%.
In 1930, which was the

Insurance

Security

the

1918

In

rates.

premi¬

country-wide

Home Insurance

Phoenix

stiff downward trend in

um

Hartford Fire

New

$438,024,000, ap¬

peak.

Fire Association

r

volume of

a

proximately 87.5% above the 1818
volume and 18% above the 1928

Springfield Fire & Marine
U. S. Fire

peak year instead of 1929, the fig¬
ure was $42,066,000, or very near¬
ly three times the 1918 total. The
"depression" low was reached in
the year
1933 with $26,631,000

On Dec. 31, 1918 the aggregate
liquidating values of these com¬
panies, comprising capital,, sur¬
plus and 40% of unearned pre¬
mium reserves, amounted to $232,066,000.
Steadily this value grew,
reaching $451,245,000 by the end
of 1925, an increase of 94.5%. By
1929, liquidating value reached
the year-end peak of $752,790,-

which,, nevertheless,

000, approximately 224% greater
than at the end of 1918. Liquidat¬

1944.

more

cf

1930, aggregating $40,625,000 in
.

'

•

underwriting profits
characteristically erratic,
Net

are

yet

,

of
losses, moved irregularly upward
these

too, despite some .years

approximately $10,000,000 in
to $15,502,000 in 1927 and
$28,382,000 in 1929; The depres¬
from

1918

At the end of 1944 ag¬

gregate liquidating value amount¬
ed

quite reached the boom total

hot

approximately 95% above the

1918 value.

the

than

low, net investment income
has steadily risen, though it has
this

ing value dropped from this peak
to the depression low $451,802,000
in 1932; but even this low was
fractionally above the 1925 figure
and

was
87%
1918 total.
Since

sion low was reached in 1933

$993,955,000.
Thus, 1944
year-end
aggregate
liquidating
value of these 21 companies, stood
328% higher'than at the close of
World War I and 32% higher than
the 1929 peak.'
'*
I
to

total

a

of

War

World

losses,

in

the 1918

The volume of business written

fire

underwritingprofits

net

shrunk

excessive

and

losses

rine

with

During
II, due to heavy ma¬
$21,625,000.

1944

approximately

to

aggregated

was

$370,126,000,

or

approximate^ panies since 1918.

ly 101 % greater than in 1918. The

In that year

their dividend disbursements

ag-

RUSSELL

BANK

The

time..

fell

franc

is

inference
from

around

20<J

that country, has appointed Glore,

reasonable

which

might find offering a

Americans

safer harbor than the U. S. dollar
itself.

the

But

greater

which will

valve

is

evident

become

sooner

or

safety
later

enormous

our

in

similar degree.

What they forget
is that foreign trade plays a much
larger role in the French econ¬
omy than it does in ours, and that
it was relatively easy for French¬
men to export their capital abroad
either for the purchase of com¬
modities or for simple safety. In
other words, a readily usable ful¬
crum
was at hand by which the
franc

The

forced down.

was

an-

had

almost

doubled, aggregating
$19,039,000, while in 1929 they to¬
taled $30,281,000.
The depression
low was $22,603,000 in 1933, yet
this was higher than
1925 dis¬
bursements
1918

total.

and

132%

the

above

1944 the total

In

was

$31,570,000.
In general, the record shows a
long-term secular growth for the
fire insurance industry, though
severely distorted at times by
cyclical reversals and also by the
of

curse

secular

this

And

war.

trend should

continue, for we are
growing nation, and it is
logical to expect so essential and

still

a

universal

industry as insurance
keep pace. It is inter¬
esting to observe what was hap¬
pening to population, industrial
production and national income
an

at least to

during the period that insurance
companies were experiencing the
growth we have reviewed, as fol¬
lows:—
National

Index Ind.
Year—

Population

Income

Production

Billion $

73

1918—

Almost

that

expects

everyone

bly
lines
are
again operating
efficiently we will have no diffi¬

in satisfying the accumu¬
demand of the war years,

culty
lated

but also in

need for

understood

We

fairly healthy domestic economy
during the war with the assistance
of a minimum of rationing, de¬
a

spite the fact that 12,000,000 to
14,000,000 Americans
(including
civilians)
were /in
the
armed
services.
We supplied them and
a
good proportion of the needs
of our Allies, at the same time
building the world's greatest navy
and the world's greatest merchant
marine.
The
equipment
with
we

has

beyond the
supplies
of
World War I.
For example, in
1917-18 the Quartermaster Corps
supplied infantry units with 3
models of shoes, but in World War
II there were 15 models, many of
them requiring huge amounts of
leather.

1940—

131,669,275

1944—

The

the

83.4
69.0
40.0
70.8

that

77.3

celled,

156.2

in

this

extension

productive forces
inflation

Espinoza
United

are

Bell Teletype—NY 1-1248-49

Senor

to

the

Carrillo

is

which have been financed include

steel, paper and pulp, coke, glass,
synthetic fibers, electrical goods
equipment, cement and vari¬
ous public utility projects.

and

Owned 51% by the government
and 49%

by private interests and
banks, Nacional Fi¬

commercial

nanciera in the past ten years
done

has
participated in, the great¬
of Mexico's industrial fi¬

or

est part

nancing.
Glore, Forgan & Co. is cur¬
rently handling several negotia¬
between

tions

American

indus¬

Nacional Financiera.

trialists and

Asiel

& Co., 11 Wall St., New
City, members of the New
York Stock Exchange, announce
that Joseph D. Croll has returned
from military service and has Re¬
sumed active partnership in the
firm.

in

thrive

a

set

Royal Bank of Scotland

econ¬

an

Incorporated by Royal Charter 1727

plethora of
is

the

component, but by

unknown

late

Spring

1946

time

factor

The

consumers

HEAD

of

LONDON OFFICES:

expanding peace-

our

productive

throughout Scotland

and

investors should begin to be very
conscious

OFFICE—Edinburgh

Branches

3 Bishopsgate,

capacity.

8 West

E. C. 2

Smithficld, E. C. 1

Charing Cross, S. W. /

64 Neva Bond Street, IV. I

OF AMERICA

COMPANY

TOTAL ASSETS

KAISER-FRAZER CORPORATION
,".

£115,681,681

KERN COUNTY LAND COMPANY

Associated Banks:

NEW YORK 5

1 WALL ST.

Gibbs, Manager Trading Department*

Ambassador

States.

Burlington Gardens, IV, /

Members New York Stock Exchange
and other leading exchanges.

Finan-

the

commodities.

ARDEN FARMS

BArclay 7-3500

Nacional

succeeded Antonio
Los Monteros, now

following the policy inaugurated
by Senor de Los Monteros over
the past 10 years, developing va¬
rious projects in association with
American capitalists.
Industries

%'

Members New York Stock Exchange

Telephone:

de

Mexican

49

Laird, Bissell & Meeds
1180 BROADWAY, NEW YORK 5, N. Y

of

having

in¬

Now

because

where there is

omy

] time

expected to participate.

General

siera,

contracts have been can¬

cannot

latter

rifle.

recoilless

mm.
war

defeat

to

the

of

57

a

figures. From
now
on, however, the long-term
normal upward trend of economic
expansion should
be
resumed.

tor

York

74.3

flected in the 1944

an

the Mexican government and
supervises the securities markets
in addition to promoting and fi¬
nancing
industrial
and
public
utility projects and limited com¬
mercial banking operations. It is

platoon had Springfields, Garands,
Browning automatic rifles,
ba¬
zookas, 30 mm. carbines, 40 mm.
carbines, 30 caliber machine guns
and 50 caliber machine* guns, plus

69.8

terrific impact of the war
nation's economy is re¬

I

War

to

CroII Resumes Activity
As Asiel Co. Partner

125

1939__

World

In

new

organization serves as fiscal ageqt

platoon
had Enfield or
Springfield rifles as a small arir
and Browning machine guns.
In
World War II the same infantry

fantry

235

1932-

equaled

certainly went far
relatively
meager

109

122,775,046

armed

our

been

never

history of warfare, and it

the

in

58

1930—

furnished^

which
forces

of wealth and

industry in Mexico. The

municipal governments in Mexico.
Antonio Carrillo, formerly Di¬
rector of Credit of the Treasury
Department of Mexico, is Direc¬

able to maintain

were

sources

also financial adviser to state and

poten¬

great

new

we

-

91

1929

on

58.1

the

are

7

association - with
industrialists, Na¬
cional Financiera has given in¬
creasing attention to the creation
in

ex¬

tialities of this production and the
accompanying danger of eventual
over
production.' The simplest
figures should illustrate" what we

110

1925—

and for

use

What may not be so widely

port.

75

105,710,620

producing all that

our own

enterprises in

States

centers of

91

1920—

Working

:

United

of

mean.

gregated $9,735,000; by 1925 they

the United States.

service industries.

have been surmounted and assem¬

new

Forgan & Co. of New York and
Chicago as its representatives in

productive power not only on the
farm, but in the factory and in the

after our reconversion difficulties

BANK

L. A.

development of

transactions,
does not exist

to

trend, the insurance industry may

Bought—Sold—Quoted

with our domestic
and
the rf currency

and that

decline in purchasing power

of

A.,

S.

rfrOO

nAivtm

the U. S. dollar must now suffer
a

Financiera,

when compared

CO.

STOCKS

the

that

about 4c U. S. currency,

be

INSURANCE

and

I

War

that statistically our posi¬
tion is even worse at the present
argue

And)

MANUFACTURING

and

World

after

France

net

$234,012,000; in level and 100% above the 1918
1925 the total was $364,022,000, a
level, despite heavy war losses
rise of 55.7%. The peak year was
and heavy wartime taxation. :■;+,&■
1928, not 1929 as in the case of
It is also pertinent to cite the
liquidating value, and the total dividend record of these com¬

ten

will
be applied.
What the economists
disregard is the human element
involved, and this is obviously an
unpredictable force.
For exam¬
ple, some economists are compar¬
ing our position with
that of

F. R.

profits in
1944, which comprise both net
underwriting results and net in¬
vestment income, were approxi¬
mately 20% above the 1925-27

t

M

—

certain that any match

figure.
operating

Total

by these companies has also shown
a strong upward trend, though not
as
steep as that of liquidating
value. In 1918 net premiums writ¬

Ii.i1 A.

A. •

from

Nacional

of course, is that our for- Mexico City, the Mexican govern¬
eign trade and our need for im- ment c o n t rol 1 e d organization
vnrvv>4-/\rl
A/Utl'flP 'it*
TlAt
ported commodities is not great which is directing capital to the
swer,

a

After the close of
an

great amount of inflationary
tinder lying around at the present
i
ifn
time awaiting ignition, it is far

,

PACIFIC GAS AND ELECTRIC COMPANY

Telephone DJgby 4-2525

.■

:7

•*-

•

7 '■^ f" C *

'.r:-.'4-"

Glyn Mills

"

Quoted

Sold

Bought

BANK and INSURANCE STOCKS

Deacon's

&

Bank,

-

Ltd.

Co.

GAS AND ELECTRIC COMPANY

SAN DIEGO

PRIMARY MARKETS IN

(Preferred#)^"

•

■:

/Williams

I,' '

jr.;

^' •

> ,s

»/'

«

*

J;

•

.

/v

7/

.V /)

NATIONAL BANE
'

.-.

.

of INDIA, LIMITED
•

Boston

9

NEW YORK 5

.

10 Pos* Office Square
HUbbard

0650

/

'

r

WHitehall

NY 1-2875

V'v:

PHILADELPHIA,

ST.

LOUIS,

FRanklin

LOS

NEW

CG-105

'

Enterprise

.1

300

"

ANGELES,

SAN

Nil

'

PORTLAND,

FRANCISCO,
v-

707''

YUkon I55L

Enterprise' flaggy

Teletype SF 431

:

SEATTLE

'7

Enterprise

~

in

Head
✓"T

A

*

San

~

>

'•

-

:

;

;

Spring Street

Office: 26, Bishopsgate,
:'London,'E, C. " ' > *

In India, Burma. Ceylon, Kenya
Colony and Aden arftl Zanzibar

*

LOS ANGELES 14

Subscribed Capital

77^. TUcher 3151

>

,

.Teletype LA '533

432

Paid-Up Capital
Reserve Fund-,

The
Oakland

/, ;/•
?M»

■"*

.•

650 South

Montgomery Street

SAN FRANCISCO 20

h

PROVIDENCE,;




■

.INCORPORATED

the Government

Branches

YORK, BOSTON, CHICAGO,

TELEPHONES TO -7
HARTFORD,

7535

.

to

;, Kenya Colony and Uganda

INVESTMENT SECURITIES

*

231 S. La Salle Street

3-0782

PRIVATE WIRE SYSTEM CONNECTING:

-.'-V'/-'

Chicago 4

67 Wall Street
>

Bankers

First California Company

Huff, Geyer & Hecht

'••it"-.'/**,r

*'/•'/ San Jose A/,.5* Stockton

/ Beverly Hilla

Diego
vy-

**

>T

r".

»

> , Long Beach
Santa Ana . .
Monterey
.•* /. Frestfo
Sacramento • 'v. -Paasdena

'■•>*-V*

^si>.+>.e RcnOj

m.*"*

*

IScvfidft

?'* '-+-V*

•*

*

* 'V ■»-**£"

:

*'•/',

./y.r• /."-v/.V;/'-y/j'./"v

'

i

Bank

£4,000,000
-£2,000,000

*:

£2,200,000 / /

conducts

every
description. of
banking and exchange business J. ■; )

i; Trusteeships and Executorship*
/:•/••
-also undertaken >V-

V

.

Volume

162;

Number

4436:

V

.

-—




_THE COMMERCIAL & FINANCIAL CHRONICLE

•
*

"

;

t

1

■

:

,,j

,

.'i

,y

4

Our War Bond dollars
to

make

It is

bring
care

our

our

our

obligation

to

armed forces home,

our

wounded, maintain

occupation troops, provide

veteran

the

victory possible.

now

for

helped

rehabilitation,

care

for

dependents of those who

made the supreme

sacrifice.

BUY VICTORY B01
INTERNATIONAL BUSINESS

.

■■

^

2221

FINANCIAL CHRONICLE

THE COMMERCIAL &

2222^

of crops

casts

We Ask You, Mr.
(Continued from first page)
sus

Com-

estimates for the Senate

maintained during

the

war.

xnittee^pn Banking and Currency

(Q) Wouldn't more realistic re¬

labor force will average

shown if the 12,uuU,Uuo men in the Armed Forces
were excluded from the employ¬
ment figures?
Wouldn't
such an
adjustment
bring out more clearly the in-

that th£

60,470,000 in 1950?
Doesn't the difference of 1,500,-

OOOjnake it necessary to reduce
his

by corresponding

.yardsticks

'1'
Wouldn't the reduction be still

amounts?

?

-

lationships

be

ilafed nature of the wartime

econ¬

if the Census estimate of omy he is desirous of extending
59,160,000 for April, 1950 were into peacetime?
|ft, ; j .ft
used?f ft )••'••• '/ft :
ft^ ft!- '•
*
ft*
Isn't it also important to em¬
(6) At page 17, ii is stated that
phasize that this labor rorce of 59 "Five cents an hour is too high if
or 60%
million includes 2% mil¬ the worker doesn't earn it."
lion who will probably be in the
I (Q) What is the relationship
Armed Forces
(pp. 40-41), thus
larger

leaving 56% to 58 million availtable for civilian jobs; and that of
the latter total at least 2 million

fraction¬
ally unemployed, thus reducing
be expected to be

may

required to

of jobs

number

the

t656 million?

54 Vz

make

Wallace's

figures
of
60,000,000
the resulting gross na¬

jobs a£d
tional

product of $200 billion?

spending?

the effects
of the non-spending devices that
spending will be started at once

ficulty of determining

the

before

reserved if subsequent
quarterly forecasts suggested that

be readily

should be done?

If) "that by 1950 it will re¬
quire iBO million persons at work
at an average of 40 hours a week
to maintain the output of goods
3 and

would

which people are

that

and

war

the result.
experience is cited for
"automobiles and washing
ma¬
was

.

variety of other

a

•

(Q) Isn't this evidence that im¬

portant segments of industry are
fully aware of the advantages '"of
low
prices and that they have
voluntarily adopted such a pdlicy
without Government coercion?

is

Why
r

"entitled"

anyone

goods and serv¬

.

(12) At

Isn't " it

that
who

have

frontiers

contracts

some

calling

less
week?

for

than 40 hours of work per

Suppose that the pressure grows
for

a

30

hour week

35

or

whole

in

successful

and

in

or

of the
"goods and services to which the
people are entitled"?
.
; 1
Doesn't
that

estimates

his

the

all

goods and services while
tire

history

shows that

more

en¬

our

we

have

elected to take these gains in part
in the form of more leisure time,
retirement

earlier

entrance age into

"the

/ ft/*// /ft/ft

lost

105,000,000 man
years of; production in the 30s."
The period covered is 1930 to 1941
and

the

"loss"

is

attributed

"the planlessness of the 20s

to

(and)

the lack of courageous action im¬

mediately following the collapse."
On page 10 it is stated the "New
Deal

faith

the

restored

fidence

in

in

people's

themselves

their

and

a

broader

base

for

our

* 'ft *. ft'f f

ISP reference is
piade to the "lack of action" dur¬
ing the Thirties.
(9T At

page

If the Thirties

(Q)

acterized

by

"lack

a

U.

S.

output?

war

twenties, the Federal
Deserve Board attempted to sta¬
bilize the price level by manipu¬
lation of credit?

-

•

Despite? the ^'rebirth of faith"
true

that

until

the

war

developed, the total
unemployed failed to
average less than 7% million in
any year from 1933 to 1940?

program was

number

of

Didn't this large volume of un¬
employment remain with us de¬
spite tremendous government in¬

tervention, and large scale plan¬
ning and despite the development
of deficit

financing to the largest
peacetime history?

extent, in
i".~

our

}

*

ft;

*

*

labor force

million in 1944

or

as

about

63

the total inclu¬

sive of those in the Armed Forces.

By the inclusion of this
close

relationship

group,

between

reduction in hours

labor

has

productivity
increased?
Hasn't
of

a

Facts

Employment
and Production" (Senate Commit¬
tee Print No. 4, Committee on
Banking and Currency, Sept. 1,
1945,

pp

Labor

the

labor

costs

rose

46% during the war because pro¬
*

(11)

on

1, 3).




It

is

*ftfft'

..ft

(at page 61)
President, in submitting the
national full-employment budget
to Congress each January, would
give his appraisal of current jobcreating expenditures by business
and consumers.
If it seems likely
that they will not spend enough

employment, then

it would be the duty of the Presi¬
dent to suggest two specific types
of incentives.

One type involves

government

no

would

embrace

ing devices
centives
sumers

as

to

spending,
such

stimulate

other

both

type

tive would include the
ernment

funds,

to

in¬

incen¬

use

of gov¬

as

or

or

grants-

localities

for actual invest¬

directly by the Federal

ernment

in

development

resources."

for

of

gov¬

expendi¬

estimates
with the

new

tax

as

credit incentives and

more

determine

or

are

whether

working.

How

and

vide

not
a

they
time

cut

collec¬

tax

Federal aid for

health,
housing, education, and social se¬
curity than before the war—if by
1950 we have 60 million people at
work producing $200 billion worth
of goods and services" (page 75).
more

(Q) Without these services, the

billion. The peak wartime tax col¬
lections, inclusive of large collec¬
tions

an

corporate war profits was
$45 billion.
On Mr. Wal¬

on

about

lace's

that
more
thus leav¬
ing lower corporate profits, would
assumption

should be paid to labor
total tax

not

stantially

collections

than

lower

sub¬

be

the

war¬

time peak?

Wallace

Mr.

claiming

as

a

gain to be derived from this plan
the elimination of wartime excess

of bank

credit created to finance

profits taxes? If not how can tax
collections be cut in half and the

and

budget

war

the attending

prob¬

Isn't it

of the faults of this

one

approach that it oversim¬
complex interrelation¬

balanced

a

*

£

entire

Or isn't it

be balanced?
important to
have
budget, some time?

"it is

plies maintained at record levels?
What studies have been made

payments more fully, such as life

insurance, and the sale and repay¬

spending down" (page 75).

the accuracy of

establish

to

past

forecasts?

Department of Commerce
forecast a decline of 13% in retail

compared with
1942;
actually retail sales rose
TO.5%. For 1944, an increase of
3.6% was forecast; the actual rise
was„8.8%.
Is this a "considerable
degree Of accuracy"?
in'

sales

How

1943

very

*

The

(18)

*

*

the

ment

E

of

we

record, to the

war

successful, applicable

was

'transfer'

of

effect

account

which

bonds

that do not

in the 'net' figure."

appear

Isn't: it true that the cash¬

(Q)

ing

that
shall need

states

Secretary

probable that

show

to

in

of

bonds can upset
prepared fore¬

war

casts

business

of future

activity?

Will not the volume of such re¬

demptions be affected by psycho¬

logical

which

factors

cannot

be

determined in advance?
sis

#

unplanned, unscheduled peace®

(19)

production and consumption?
*

•

.

that

*

•

v

'

Wallace
states that
"Logistics, the science of supply,
certainly can be put to work for
(13)

peace

Mr.

well

as

as

.
.
.
within
enterprise."

war

the framework of free

(Q)

How

135,000,000

can

with

sumers

different

con¬

tastes,

"There

is

real

a

danger

in the first few
after civilian production re¬

years

strictions

lifted, will draw too
heavily upon wartime savings in
their
eagerness
to
buy houses,
automobiles, refrigerators, wash¬
ing machines, and other things
denied
them
during
the
war"
(page 70).
are

ment?

civilians

without

Will not the rise

for

done

be

regimenting

them?

(Q) Why assume that private
enterprise can carry only "most
of the burden" and not all of it?
Isn't this basic to his entire ap¬

proach to the problem?

advocated

in wage rates

at page

20 tend to
centuate this pressure?

ac¬

*

i;.

*

(14) At page 62 it is stated:
"Actually the quarterly check on

Mr. Wallace says (at page
73) that "To avoid the deflation¬

the

ary

and

ness,
tion

upon

current informa¬

employment,

on

consumer

(20)

I

effect of heavy payroll taxes,

believe

of

the

should

that

costs

substantial

a

of

be

regular

paid
Federal

part
social
security
for out of the
budget—that is,

expenditures,
and
inventories.
This
would make it possible

out

for the President to

power/ we Should also be prompt
in lowering the rates on the rest
of the tax at the first sign of a

.

.

.

present to the
the
country,
three months, a statement
and

Congress
every
on

the

total

to

of jobs that

number

is
currently
providing and is likely to provide

private
in

enterprise

immediate

the

future."

(Q) Won't business men try to

thus upset the plans and policies
adopted?
Will there hot develop a ten¬
dency to anticipate these actions
and thus place government policy

the
guesses?

upon,

How

can

tions

business

from

to

basis

precarious

men

adjusting

these

ac¬

without

controlling their actions?
-ftftftftv

(15)

ft!;;

Mr.

page 63) to

*

*

Wallace

order

general taxation—and, in
to
maintain
purchasing

business recession."
v

(Q) ft Wouldn't this program

make

social

security taxes

a

po¬

posed.

Doesn't

emphasize
theory?

thesis

this whole

the

over¬

purchasing power

„

*

*

*

*

refers

ft

(at

additional

of these

public works in connec¬
the National Budgef,
possible to reduce taxes
significantly, if at all?
ing for

with

tion

will it be

^

$

*

,

(25) A national program
in¬
volving
"maintaining wage s,"
"maintaining prices of farm prod¬

industrial
consumption" is
83.

"adjusting

and

prices to promote

proposed on page

main¬

wages/ maintain
prices of
materials and lower prices

raw

is
a
sharp
in-^
productivity? J Under
shouldn't the
emphasis be placed upon
there

uhless
crease

in

these circumstances,

main

of

means

in

ments

introducing improve¬
industrial productivity?
*

*

*

^(26) In connection with the ex¬
perience, after World War I, it is
stated at page 31 that "we had
perhaps the wildest commodity
price inflation this country has
ever seen. This broke in the sum¬
and down we slid,
theft depth of this de¬
pression in the fall of 1921."
ft/
of

mer

1920,

went

true that the

Isn't it

(Q)

(21) Secretary
Wallace
pro¬
poses that "if the inflation dan¬
ger Were serious ..
we could also

on

that the

and
to

new

promptly

than

.

raise income, taxes."

a

economy

heights? Weren't

adjustments

these

oA

ex¬

of 1919-20 were cleaned out

promptly

in

effected more
the Thirties

when the Government

intervened

large scale?

(27)

In referring to the period
the point is made

of the Twenties,
mean

by in¬

prices are meant
would higher income taxes be the

flation? If rising

the Government fore¬

all

programs
are
adopted
and to them is added the spend¬

cesses

Why should it be assumed that
payroll
taxes
are
deflationary
and that heavy general taxes are
not?
ft
i 'ft

(Q) What does he

*

If

(Q)

spending

reaching

of

be pre¬

their

forecasts

of

litical football?

anticipate the-trends forecast and

r-

(Q) Will it be possible to

'

projected budget would be
based upon reports to government
on the investment plans of busi¬

*

»

On page 83 a program in¬
cluding "reducing taxes," "pro¬
viding a housing program," "ex¬
tending social security and health
insurance,"
"promoting
educa¬
tional equality" and "promoting
resource
development"
is pro¬
(24)

ucts,"

.

this

been

consumers,

habits, etc., be compared to 12,(Q) If this happens where is
000,000 members of. the Armed
Forces
with
their
regimented j the danger of mass unemploy¬
could

has

the most carefully

:J:

time

"The

(23)

ernment

ships?

as

the

is

extent it

plifies

for billions of savings

The

-

long

could

tions almost in half and still pro¬

depth of the depression in 19321933? And weren't available sup¬

our

time to

of "the
employment" it is

certainty that gov¬
provided with
the power to prevent unemploy¬
ment
should
give business the
courage to carry most of the bur¬
den of full employment itself—
and thus help keep government

vented

non-spending devices

Didn't top OPA of¬

final results?

ficials, with access to all the data,
predict - in
1942
that civilians
would have as few goods as at the

ft

(Q) It takes time to enact such

"We

stated

*

%

indication

an

low cost of full

Is

oversimplifi¬
cation
of
what
has
happened?
Doesn't it ignore the large amount
Isn't this

(Q)

*

As

(22)

unemployment
for
conflicting

the

capital

Haven't
these
way
out of line

been

con¬

more

of

either

states

public works,
ment

credit

and businessmen to spend

The

in-aid

hut

non-spend¬

tax and

and therefore to create

jobs.

of

and,

needs;

through taxes."

sums

call

tain

stated

full

Federal Govern¬

the

—

<«

"The

to furnish

1944

for

over

could use for construction

other

and

How

unit

left

this, how much business and con¬
sumers

tastes?.

industries

purposes;

war

civilian

essential

Statistics

em¬

ployment and these various types
f'Basic

be

a

Bureau

for

need

recently reported that for civilian

more

(5)-Several charts (on page 16)
show the

ft

How can
main¬

payments

with

(Q) Isn't it true that during the

it

'

(Q) Weren't wartime wage pay¬
ments made, high to induce -the
wage

In discussing the Nation's

Budget at page 66, it is stated that
"In

and

happen to
policies?

post-war Federal budget already
seems
destined to be about $25

have

ductivity failed to increase?

"planless"

isn't

'

*

ments.'!

tained

about this

say

"cooperative" effort?

our

how much would be

action,"

t

unless '

economic

of

S (10) At page 20 it is stated "we
need to keep something very "close
to the present level of wage pay¬

total

have to

of Justice

statisticians and econ¬ ment spending enormous sums for
been projecting na¬
war, borrowed all of the 37 bil¬
tional budgets a year
and two lions of consumers' savings, all of
years ahead.
These covered not the 9 billions of business savings,
only how much the nation would and all of the 2 billions of state
produce as a whole—but also how and local government savings—in
much of the total the government addition
to
raising
far greater
1940,

omists

r

*

required

stated
in

is

it

62,

"ever since we began to rearm

to

be action?

sharply

;

char¬

were

what would Mr. Wallace consider

con¬

Bolstered by this rebirth of faith,
the nation surged onward toward

life."

the

fron¬

geographic

our

'Jftftfti/ftft/

their

institutions.

free

with

closed

vft/ftft/ />•ft

It is stated (at page 8) that
nation

economic

J(Q) Isn't it true that the New
Deal Administration, of which Mr.
Wallace was a member, was the
main exponent of" the economic
maturity idea in the Thirties?

to

industry?

ftftft ft/
(4)

and later

age,

economy—

the

that

were

of

closing

mature

a

tiers."

assume

technology

gains of

will be taken in the form of

is

believe

is

part,

then what happens to part

:

ours

Through another

What will the Department

NRA?

lems?

philosophy of those, who believe

indus¬

that

true

is this "cooperation"

How

effected?

be

*

*

page

tures."

(8) Reference
is made to a
"negative and undemocratic busi¬
ness
philosophy"
namely
"the

tries, for example coal (35 hours)

mean

♦

#

»

therefore,

not,

prompt recourse to the WPA type
project?

(Q)

to this output of

ices?

this

page 64 it is stated "Business
cooperation is also needed to solve
another major problem—that of
finding ways to put stability into
capital investments
for plants,
equipment, inventories, office and
other commercial buildings."
at

(Q)

continued to be a large volume of
unemployment?
Would such an
action be politically feasible?
Doesn't
this
proposal
make
something other than unemploy¬
ment the basis for his program?
What happens if the two tests—
"inflation"

sjc

(16) He frequently stresses the
need for cooperation. For example

to

flexibility

more

%

*

of

entitled."

(Q)

achieve

To

sions?

(17)

similar

chines, and in

expendi¬

proposed

tures in public works and in the
development of resources, long
term commitments which cannot

would

.

plan?

theft

Aren't

(Q) Aren't these forecasts fre¬
quently way out of line as com¬
pared with final results and aren't
they subject to monthly revi¬

»

consumption

mass

A

of the
the dif¬

Isn't it true that because

unavoidable time-lag and

*

*

♦

Evidence is given (at page
17) that the prices of radios and
refrigerators
were
sharply
re¬

lines."

(3) Mr. Wallace states (on pages

and services to

higher minimum wages?

*

*

«

1;

Mr.

meaningless

the

and

statement

(7)

duced

Isn'tfthe effect of such adjust¬
ments-^

this

between
Jrive ior

period will elapse before there is
resort to the second alternative of

under this

and livestock out¬

put.

Wallace!

of incomes is shown to have been

Thursday, November 8, 1945

•

antidote if at the same time there

on

31 that "those were the
when thousands of people
they had found the road to

page

days
felt
ooou

txroQlih

Ywt

fnllnwincf

th<^

rr

THE'COMMERCtAI,& FINANCIAL CHRONICLE
magic path of speculation. \.
Even it arty: leader of Govern-

enterprise

had dared to tell

the truth

(Q) What Government

ernment

officials

or

would

(Q) Why is reference made to
"recurring swings" when unem¬

ployment of the magnitude of 12
to 15 million has occurred only

Gov¬

once

.strong enough to tell tne people
that

men

boom must be halted?

a

V Would the people have

In

Is

been will¬

Wouldn't this be

important

which

the

(28)

*

*

In referring to the period
Twenties, Mr. Wallace also

of the

pointed out on page 31 "By ex¬
panding private bank credit we
greatly increased the poten¬

in

consumer

the

purchasing

United

States

—

<Q) Are

power
far too

ing

we

financing than

we

were

to expand it

through private bor¬
rowing in the Twenties?

While it

.

too

went

money

without

*

post-war period
that

the

"does

wartime

President

must

control

for
not

powers

was

before in

mean

the

be

ever

Government
have to be

point

line

of

is

to

for

be

such

the

be

Z

i'fi

sources—busines,

con¬

.

(Q) Has not our economy been
characterized

out

.

be

made

for definite action

.

.

find

we

in

ample evidence
indus¬

automobile

the

Wallace predicts that
basis,
the

(36) Mr.
"On

Doesn't Mr. Wallace in ef-

conservative

a

automobile industry, for example,
would have to produce from 6 to
million

8

cars

a

year

for four

or

five

circumstanced,

the accumulated demand at home

what happens to
possibility of reducing taxes

which

Mr.

Wallace

refers

Z

at

(Q)

1
'

/

the

(31) "The planning involved in
drawing up a national full employment budget would lead to
more competition rather than less.

over

i

\

y~:~

'

of

large
the

this large

does

automobiles

to

accumulated

next

demand

five

four or

pro¬

meet

years

predictions at
page 32 that we may have a "sud¬
den sharp smash in prices in 1947

inflation, less
deflation and less speculation" ac¬
cording to Mr. Wallace at page 36.

■

or

1948"?

out

•

tion

costs

and

from

ineffective

implied at page 35 and in other
feectiohs ypf : this > volume, how

selling methods; from high labor

would it be

;

costs

possible to have "less

Is

it

likely that there will be

~^esS^pecuiatidriy if^tho^fedidont
should
'

in advance what

announce

he und
be

believe would

happening to

our

economy?

competition fit in with the
V reiterated emphasis upon greater
.>'r cooperative effort throughout this
-. volume?
more

/.

*

.

./

*

^ ♦

ii * (32) The

Secretary states "If
f free enterprise meant recurring
Swings from 1 million to 20 mil¬
lion

nevertheless

do

not

j^xp^tatloh'Vof vplume of Construction."

..

■

which

provide
adequate
wages ' year
round, and from the multiplicity
of other ailments, including the
improper building codes and ap¬
plication of agreements between
employers
and
unions
in; the
building trades which restrict the

inflation"?

.{

men

unemployed, then free




1930

from

1950

to

the

in

years.

preceding 20
Why should it be assumed,

under

these

volume

circumstances

of

employed were in many cases the
labor

less efficient members of our

produce less than the average?

production should
much? As addi¬
on

rate

than

G. H. Walker & Co.

indicating the importance of

double

each

20

years,

the labor force factor?
♦

*

>

Mr. Wallace estimates that

(44)

Colonel

man years of
and that "on the
basis
of
present
prices"
this
"meant a loss of around 350 bil¬
lion dollars.'*
1

(Q)^ Isn't this : estimated of $350

tion?

;

terrific: overexaggera-

a

;What justification is there

|or; estimating these
basis

the

of

with

be*

H.

Wall St.■■
■

lost 88,000,000

billion

has
G.

Potter

H.

Co., and will head the
municipal bond
department in
.the firm's New York office,
1

employment

-'

J.

associated

come

Walker &

*

for the 12 years 1930 through 1941,
we

WHk'

OoU. H. Poller

this point isn't

it true that per capita production
has increased at a much slower

thus

able to

and probably were

force

that

as

tional evidence

housing to which
gives so much em¬
phasis provide such a stimulus?

from

come

losses

present

"on

Potter

Colonel
Field

for

over

Wright

at

was

in charge

year

a

,of aluminum allocations for the
Army, Navy and British Govt
ernment. He spent over 2 Vz years
,

Transport

in Alaska with the Air

Command, first

as a

manderd and later as

station comdeputy chief

-prices"?

United

the

if

States

suitable

arrangements for its fi¬
nancing were worked out."
-

-K'vv.;

t

-

v:y;/v:.

.y.V.: s--V

■,

-

;

*

,

-

t,

•

"

Who will extend the funds from

:

this country?

Will not such loans
government make it dif¬
balance 'the budget and

by the
ficult

to

to lower taxes?
z

z

z

that we
ought to take measures to "insure
(41) It

is

suggested

that^rregulatibhC bf ^ foreign

ex¬

change and Commerce will not be
used as d means to throttle com¬

thisv not; an inconsis¬
Doesn't the im¬
position of foreign exchange con¬
trols
result in
a
"throttling of
trade"?
Haven't the great gains
in trade in the past been made
when foreign exchange has not
XQ)

.

should

be

done

to

lower high % building costs which
to be the crux of the prob¬
lem?
seem

.

What

should

be

done

to

elim¬

inate make work tactics which in¬
crease

costs?

.

m

We held sort of

z

z

a

will work for the benefit of
sumers

as

well

as

producers

a

(Q) Are we to haVe intergovern¬
agreements
to
regulate
commodity prices?
Haven't such
agreements frequently been.very
unsuccessful in the past? Haven't
they been used to raise prices?
*

z

z

n

,

the

ected

lines

are

the estimates^
drawn and proj¬

to 1950.
Why were these
drawn to connect only past

peaks? Isn't the result' of this
procedure to make a higher es¬
timated
projection
for
1950?
Aren't trend lines usually drawn
through the center of such fluc¬
tuations

to

make

allowance

for

they

telephones

for

them

•

reasons

all

understood;

for the shortage

big majority placed the re-1

sponSibility for lack of service
thb unavoidable circum-:,

trn

stances of war,
;

Mora

than

telephone
all it

72%>said the'

could for

them.

doing
More

than
be

69% agreed they should
waiting their turns for

service.
;

About

]

%

BELL

LlStEN

TO

"THE

to the

opinion, but

we

the views Of the

HOUR"

grateful

also respect

minority who

think otherwise.
\

We've

to all
-

turned

the

corner

to peace

and we're
way to give service

war

our

on

who want it.

In the next twelve months,

we

expect to install more tele¬
were in all
Belgium before

phones than there
the

TELEPHONE

TELEPHONE

we

majority for their good

of France and

19% thought they

could

than

18% thought others got
telephones ahead of turn.

from

company was

we

had.
^

telephone facilities and the

in

doubled ■} every; 20

obtain

how

more

had

10% felt

Of course, we are

Practically

■

To

them

and

once

do

felt about it.

(43) Several charts are shown
(on pages 4 and 5) designed to
prove thdt 60,000,000 jobs and a
$200 billion gross national product
by 1950 are in line with historic
trends in this country.
In addiiibfi -il^i^Mate<i> tjibt in 4he past,

^productioft

asked

and

have

at

number of people who were;

waiting for hom£ telephones

,■

/

should

We mailed questionnaires to

con¬

on a

mental

-

Telephone Service

on

world wide basis."

-

Town Meeting

z

Secretary
endorses
"international regulation of gov¬
ernmental commodity agreements
through a central office which
(42) The

trend lines

Mr; ^ Wallace

::(Q):What^;does
recommend

Is

been controlled?

(37) At page 39 it is pointed
that the
building industry
"suffers from too high distribu¬ '-V;

,'v"

(Q) If large scale Government
^Spending were involved as was
.

less
did

increase twice

our

with

up

affect Mr. Wallace's

It would lead to less

]{

just to catch

How

duction

Z

z

years

and abroad."

page 83 of this volume?
;

it

tency in terms?

•

activities jobs for all? Under these

to

On the basis of his charts, the

the

Wallace

booting to which he refers?

say
that
the
Government
shall underwrite with its spending

the

construct

than

less

been

have

merce" (page 56).

.

feet

.

'

it IS through public spending that
it is hoped that ''full employment"

Mr.

,

labor force is expected to increase

slightly

-

would

cost

$200 billion, isn't that true?
Don't these lower figures *alsp
overstate the loss because the un¬

>'

than

■'added^;,^^-^■
fsh t this further evidence that
j

try, radio, refrigerators and other
leading
American
industries?
What is this competition of free-

.

responsible

to

(Q)

this

through¬

entire history?

Don't
of

and finally
supplement (private) demand,
if necessary, with productive
pub¬
lic activity."
.

our

by competition and

productivity

increasing

.

programs if such stimulation fails
to do the whole job.
Govern¬

must

"cpmpetition
,

Government—should

.

have

must

productivity rather than com¬
petition in freebooting."
•
< i

Government should be authorized
to initiate its own
supplementary

I

It is concluded at page 36

we

and

add up to enough year after year
to provide full employment.

ment

of $10 billion a year
for public Works should be

Repayment? ".
that

(30) At page 35 it is stated "The
total of job creating expenditures
from all
and

migration?

major

a

con¬

*

V

sumers

Federal

slowly due to the declining
birth rate and cutting off of im¬

average

more

put of about $2,200 per worker
during the years 1930-1941,c the

the basis of the average out¬

On

more

budget be balanced if to the ex¬
penditures already- contemplated j
an

$250 billion assuming the
of the 88,000,000 figure?

about

a

contribution, to f (Q) Are foreign countries in a
improving the relationship be¬ position/4o - borrow these huge
tween business and government? sumsfr*Wlth£ the realistic hope^ of
(35)

'

.

without

even

National Budget, would not

a

trols?
/

the

of

inferring

Wallace

activities

its

that

stopping

peace-time

could

trends

accuracy

persons

:

Mr.

Is

such

that
would

reimposed?

'

What

mean

controls

to the

or

If Government were to stream¬

extension

power

Government

"good"? •

(Q)

required of them

wartime

some

How

should

that the Government cannot do its

tipie of peace."

V_ (Q) Doesn't this
■

(Q)

past

the

$65 billion worth of plant and
equipment in the few years im¬
work in a business-like' /manner mediately after the war. Approxi¬
without such a National Budget? v mately half of this could easily

be given the respon¬

a

million

- '
Don't the large number of new
*
* • '
v-w-\',£. Inventions and industries •SUch hS
(34) Mr. - Wallace states that electronics, " television,
plasties,
*'The National Budget to promote
etc., provide such a stimulus?
s;i
*
full
z
employment will make
it 'V
possible for government to organ¬
(40) At page 51 it is estimated
ize op a business-like basis those that
"Repairing the war devasta¬
activities that the people want it
tion, plus the initial steps toward
to carry on continuously year in
industrialization
in
backward
and year out" (page 36).
countries, will require from $55 to

sibility for prompter, mOre de¬
cisive, more comprehensive action
than

four

for five years." \

...

perpetuated
peace—but it does mean
that the President and the Con¬

-

than

in

the labor force is expanding much

backlog of productive jobs for

a

*

the

of

Why

This would be enough to provide
more "

move¬

data

doubled production every 20 years
be expected in the future since

year

Is this determination

"good"?

not

into the

gress must

na¬

tion's backlog of full employment
in the immediate post-war .years.

stimulus? Doesn't the need to re¬

*

planning

ahead

go

worker? Suppose the worker says
he won't work because the job is

page 33 it is stated that

Government

can

left to the

*

A- (29) At

in

public projects in the

these

past
why is it assumed that in 1950,
the actuality Will or should coin¬
cide with the high trend line?

up¬

dollars

is

investments,
savings and
spending activities of our people?
*

sound

billion

50

of

ment

v(Q) Don't the large volume of
deferred demands provide Such a

over

•

of

list

to

the

into

complete

wards

side

Shouldn't they be related to the
period in which they occurred?;
The highest output per year per
Workef took place in 1044 when
it averaged $3,144.
On this "basis
which allows for current prices,
wouldn't the total cost havC^been

;

Considering the erratic

,

What is meant by a "good job"?
Who determines whether the job

stock market, how would it be
possible to prevent this in the fu¬

ture

time the work¬

same

which could be
adopted. He notes "it would be on
the conservative

.-j:

"free

necessary Contraction?

the

of

far

be true that

may

much

^,

■

Z

Z

public'■ proj ects

periods of overexpansion and the

Wallace

.

better off expand¬
bank credit as a result of Gov¬

ernment

be

not

page 46 Mr.
the magnitude

after year Will be achieved?"
without fear of not being able to :>v"
*
z
- z
'
find a good job!"
;
(39) At page 47 it is stated: "I
do not see upon the immediate
(Q) What is there to prevent
horizon
any
new
business men from investing their technological
capital unwisely and as a result development which will give the
vast stimulus to private enterprise
of
these
mistakes
going
into
as did the railroads, automobiles,
bankruptcy even during period of
electric power and the radio."
"full employment"?
ers

much of the money went into the
stock market."
•*'

' ~

\

while at the

had
tial

figures

into actions

enterprise instead can
be made a system which enables
the ordinary farmer and the aver¬
age business man to go ahead pro¬
ducing abundantly year after year
without
fear
of
bankruptcy-

election

years?
*

us

It is also stated at page 36

(33)
that

such

would

otherwise
Z

in

:

of

use

adopted?

particularly

a

problem

20

unemployed?

time to have it halted?
;

have

we

attempt to scare

an

ing in the Twenties, and would
they be willing at some future

did

not

? ' ! ^
million

history?

our

When

feel

(38) On

;

estimates

V

y

,

.then, he would have been blamed
for causing the •
very - thing that
finally happened.'*
y

known it

as we have
would not last long."

.

ment

£2223

EVERY

war.

*

-

*

SYSTEM

MONDAY

EVENING

OVER

NBC

The

who

sense.

common

^

doubt in our country,

no

trators

be

practical

which

furnish

attempt

arbitration

right of industrial

"the

opinion,

justification of

The law, therefore,

self-interest."

justifiable

strikes

makes

Court

Supreme

a

and

But, in that same opin¬

necessary.

ion, the late Justice Brandeis also
asserted

the

right

superior

of

the Government to limit "individ¬
ual and group

and

"substitute

to

of justice for the more

processes

trial

of

method

primitive

welfare?

by

ernment,

or

resistance to Gov¬
the effort to control

Government

organized force
organizations
granted
immunity

by

combat."

and violence?

strikes is to
unjustifiable and un¬
necessary by a law which will es¬
tablish and require the use of

are

The way to prevent

make them

of justice for the settle¬

processes

ment of industrial disputes,

But,

discussing further the de¬
such a - law to prevent

before

of

tails

economic strikes, let me point out
that there ;'is a new breed of

which

strikes

beginning

are

to

States, which

United

the

harass

justifica¬
political strikes
quickly and com¬

have no legal or moral

These

tion.

are

which should be

already
laws

from

Strike

The political strike,

which has

been used to destroy governments
in other nations, has slapped its

ugly threat across

faces sev¬

our

eral times in recent months.

that telephone

recall

will

You
oper¬

ators struck for several hours one

day, not against their employers,
but against the Government. They
struck to warn public officials
that

law

a

to

must

be

applied

so

the strikers or else
the public Would suffer from the
stoppage of an essential service.
The strikers did not worry about
as

please

of

thousands

inestimable

communications

importance

in

of

busi¬

ness
and social relations,; which
they
interrupted.
They
were
actually threatening a worse ca¬

lamity

unless ; the
and

wrote

Government

applied law to

.

Are

violence.

serve

enforced

to extend these

we

special privileges to permit labor
unions to organize insurrections
whereby public authority is made
subservient

the

to

strikes

of

settled

food.

under present

express

per¬

union.

It

is

call

fering,

cult to draw the line between
nomic strikes and

eco¬

political strikes

That is another
undertaking to elim¬
existing justifications

by labor unions.
for

reason

the

inate

for economic strikes.

We

can

end

by law all excuses for sudden and
arbitrary strikes. We can make
that before any

strike can be
lawfully called there will be am¬
ple opportunity for a peaceful
settlement and full public infor¬
sure

Then you will recall that John
L. Lewis and his volunteer and

create

dispute. The first, certain

conscript army of miners put on
another disgraceful exhibition of
organized, ruthless force.
They
stopped the production of coal
and
permanently
reduced
our
winter supply, although the mine

with

separate quarrel

the

employers and with the
Government over his attempt to
organize supervisors. So

political

strike

for

had

we

weeks

irreparable injury to the
public welfare.
Of -course when political strikes
carried

there is

by

on

labor

unions

great effort to confuse

a

them with economic strikes and to
make it appear that labor's so-

called "right to strike," covers
any
of strike for any purpose.

sort

But

the

strike
the

fact

is

is

that

lawless

a

a

political

assault

upon

people and their Government

which

a

cense

to

labor

strike is

carry

union

has

A

on.

essentially

act,

majority of disputes will be
peacefully. That has been
proved by the success of the Rail¬

settled

a

no

li¬

political

revolution-'

be that

the

tions of

pose, such
vented or

strike can be pre¬
speedily broken by a
prosecution.

criminal

The

a

third

result

will

that

be

public officials will be able to
determine whether the public in¬
jury from a stoppage of produc¬
tion

will

be

great and so in¬
form of Gov¬

so

tolerable that

some

ernment

compulsion must be used

settle

the controversy without

to
a

strike.

;

and

seriously
of

a

cratic

violence

until

economy

and

demo¬

Government.

If

anyone thinks that I exag¬
gerate the evil consequences of
political strikes, let him investi¬
gate what has happened and is

happening
in
other
countries
where the political arena has be¬
come a battle ground of organiza¬




a

the

executive

arbitration

which such controversies

How

hfter

New

of

cide such
decision

..y.

..V-

-

the

.strike

against
Consumers Power Company ended
in
Michigan?
Governor
Kelly
forced the acceptance of a • com¬
promise wage increase, with the
guns of the state militia behind
his command that public utility
was

How

board

cedure

or

fuel

Where to Apply

V-

No Remedy

There
a

are

objections

many

to

compulsory arbitration law. It
discourage
voluntary

agreements;; and the relations of
employers and employees should
be

based

on

compulsion.

agreement, not on
disputes in¬

Labor

volve questions of fair
wages

working
there

are

.

conditions
no

fixed

it is hard to find

for

themselves,

but

objective but public

their

service, and who contributed
time
and
energy
without

any

compensation.

presented
Hatch, Bur¬
ton and Ball who, after spending
several weeks making extensive
This

committee then

its draft to Senators

introduced the

revised

June 20, 1945, as

S. 1171.

revisions,
draft

on

Compulsory

'•••

spoke strongly at
that time of the need to prepare
for inevitable legislation to pro¬
mote industrial peace. They ex¬
senators

The

A:';

plained that this bill was not as¬
sumed to be perfect, that no one
would contend that it ought to be
enacted exactly as written. But,
it would provide the groundwork
for the legislation that must be
written and which should be writ¬

-

;

ten, not under pressure of special
interests seeking selfish advan¬

but under pressure of an
well-informed public

tages,

and

alert

opinion
seeking primarily the
protection of the public interest.
t

The Duty of Government
conclusion

In

let

me

reassert

that it is the

primary duty of any

government

to

maintain

peace

and good order among its citizens.
Let us not deceive ourselves as to
strikes

They

be

en¬

by the
courts, a pro¬
similar to the ordinary

are.

not

are

production, to prevent peo¬

stop

ple from working, to prevent peo¬
ple from buying or selling things
they want to buy or sell, and to
inflict injury not merely on op¬

posing employers but on the gen¬
eral
public.
These /strikes are
conducted with a lawless disre¬
gard for civil rights and for the
criminal laws which are normally
upheld by local, state and federal
governments. But in strikes they
are
usually treated as dead let¬
ters.

These strikes are, a disgrace td
but boasted civilization. They are
destructive of our national wel¬
fare.

can

In

.

the

Arbitration

well inquire:

face

of collective

these

recent

There

threat of more
ahead, doesn't
it sound a bit silly when labor
leaders
hysterically shout
that
they will never submit to any
compulsory arbitration?
Doesn't
it sound a bit silly when business
and

men

with

of

worse

the

strikes

visions

ly assert that they do not believe

people

that

Federal

is

dead

other

many

pro¬

Hatch-Burton-Ball

labor and by some

in any compulsory arbitration and

opinion

are

in the

spokesmen for

management. Time will not per¬
mit any extended
comment on
these
criticisms.
Furthermore I
should like to make it plain that
I
am
not going
around urging

and editorial writers solemn¬

public

what is the purpose
bargaining? : w-

bill which have been criticized by

and

impartial arbi¬

then

referee.

which

standards; and

no

They undermine our

ence

we

influ¬

international affairs.
If
follow the long ^established
in

guideposts
would

to

be fair

a

that

labor. law

and just to all, we

make eco-^
nomic strikes unnecessary and to
find

the

way

to

.

prohibit political strikes that arev
actually insurrections against the
Government.

'

events,

would

one

no

had

who

judicial
proceedings.
Certainly
organized labor will not J claim
that labor contracts should not be
enforceable.
If labor contracts
are not to be enforceable we may

the nation of an essential
supply?
President Truman
used his war powers to seize the
properties, and, with the, com¬
pulsion of war legislation, forced
prive

,

-

it threatened

sented

Surely such a method of en¬
forcing a contract cannot honestly
be called compulsory arbitration.
It has been the law for centuries
that a contract cart be enforced by

the strikers to return to. work.

not

will

process of referring a mass of
small claims to a judicial master

to de¬

parties should be left free to suf¬

should

or

decisions

forced

the oil-workers' strike

was

dispute. So the Hatchprovides for the
cases by an ad¬

of such

justment board, one created by
the parties themselves, or, if they
fail to act, appointed by the Fed¬
eral
Board.
These
adjustment

*

•

a

Burton-Ball bill

had declined to arbitrate.
"V:

computed; but a
would be too expensive

wrongly

and cumbersome a method to de¬

hardship?
Governor
Dewey forced the strikers to sub¬
mit to arbitration the issues they
How

undertook, to apply

principles and methods of the
Railway Labor Act to industry
in general, making such adjust¬
ments and additions as seemed
necessary to meet the more varied
and
numerous
problems which
must be solved. The prginial draft
was the product of bver a year's
work of a self-organized com¬
mittee, whose
members repre-.
the

peaceful refusals to work. They
are
forceful, violent efforts to

lawsuit

suf¬

untold

fer

authors of the Hatch-Bur-

The

what

been

City,
people

and

employers.

practical matter by the courts. A
worker could sue for wages due
and claim that his time slips had

York

dollars

controls

provided no basis for a peace time
machinery which would eliminate
frequent and spreading wars be¬
tween
labor organizations and

disputes"—cannot be settled as a

are now

making millions of
millions

"grievance

find a so¬

Wartime

Act.

Labor

the meaning

called

—commonly

the building workers'

ended in

blanketing the

which arise out of labor contracts

t,

was

We have state

contract.

application of all kinds of
contracts--- including labor con¬
tracts.
But
the
petty disputes

by

ended when

they

menace the preservation

free

but

application of

decide disputes over

course,

be, pre¬
vented.
So long as there is no
substantial public injury in per¬
mitting an unsettled labor dispute
to develop into a strike or lock¬
out,
perhaps
the
irreconcilable

be,

Compulsory Arbitration

size

of

labor

disputes

of

decision

the meaning or

and

compulsory
something new,
judicial arbitration in place
is,

for

problems

imperative

the Congress must

lution.
Pre-war methods
of
avoiding strikes were a demon¬
strated failure, except for the re¬
markable success of the Railway

nation, which are empowered to

service must be maintained.

.

It may be that all strikes can¬
not

a

arbitration—not

lose

punished
as
crimes
they
will
surely increase in numbers and
in

This

to

the

require that men ne¬

and federal courts

Government fact-find¬

binding on the parties for a trial
period of normally one year.

is threatened for

fer the consequences of their in¬
ability to wbrk together; "

an

a

upon

management

It is not compulsory ar¬

judicial

over

can be enforced
arbitration award and made

strike

unlawful pur¬

a

Hatch-Burton-Ball

ing commission
as an

character of the dispute will
be made clear, so that, if a strike
an

the

compulsions

tration to provide, as the HatchBurton-Ball bill does provide, for

provide that, in this limited
class of cases, the recommenda¬

ended. *

result will

attempt to control.
Government by force.AUnless such
strikes
are
made
unlawful
and
ary

of

thors

years.

second

Govern¬

bill

of

The

N'o

few.

in¬

gotiate before they start fighting;
but it is a compulsion which many
noisily resent. Too
many of them wish to be free to
act like gangsters and mobsters if
that will help them win a dispute;
and they are unwilling to be re¬
quired to behave at all times as
respectable, responsible citizens.
It is also not compulsory arbi¬

can.

Labor Act in maintaining
peace on the railroads for over 19
way

a

with

vast and

are

result of such law will be that the

no

a

which

issues

a

the

labor leaders

,

vast

a

the

to

of.

that
does

and

bitration to

permit itself to be
paralyzed and made impotent to
protect the public interest.
Facing *the fact that such labor
disputes are always settled by
Government compulsion, the au¬
ment

labor

public.

disease and death as the
advancing the selfish

interest

and

and

money

bill

fulfill their ^responsibilities to

of

means

however, very diffi¬

this

upon

however,

true,
many

both

dispute and to maintain
essential service.
No com¬

End Sudden and Arbitrary Strikes

is

clude

munity can permit a private army
to menace its citizens with suf¬

It will be,

have seized

to denounce the whole

excuse

It

end the
an

Yet labor leaders with crook¬

Hatch-Burton-Ball

exercising temporary war
seize properties. But
in some way the executive power

less coercion?

no

The Hatch-Burton-Ball Bill

dent,

accept the further degradation
having political strikers regu¬
late Government by similar law¬

war

lem of

ton-Ball bill

V,.

bill as a compulsory arbitration
bill; and a large number of mis¬
guided writers have helped to
spread the falsehood. /
''

will be used and must be used to

of

a

thin

powers, may

.to

that

or

ed tongues

The arbiter

and civil government subjected to
a
rule of private force. Are we

as

Mr. Lewis had

ice.

the police. The governor may
out the militia. The Presi¬

use

crisis

governor,

provision for com¬
pulsory arbitration in the HatchBurton-Ball bill except for this
small number of dangerous dis¬
putes which threaten to deprive
a community of an essential serv¬

be a mayor, or a governor,
the President. The mayor may

or

of

time

a

a

There is

law, always a com¬

arbitration.

in

power?

may

shameful enough in economic con¬
flicts to have civil rights denied

labor

explain brief¬

strike there is,

a

it a bit silly not to pro¬

the Presi¬
dent protect the people by an ar¬
bitrary use of uncertain executive

where the Fed¬

of such

case

It is absolutely clear

which the national administration

mayor,

v

,

In

. •
"Ai
that, with
controls, the prob¬

will be enacted within a year.

preserving industrial peace
becomes one of the most difficult

mand

a special finding that severe hard¬
ship will be imposed upon a com¬
munity by the stoppage of an es¬
sential service, such as a public
utility service, or of the supply
of a vital necessity such as fuel or

pulsory

by

widely

compulsory arbi¬

disputes,

vehicles al¬

mation

dispute with their
employers. On the contrary, they
were
working
under
contracts
which prohibited stoppages."But

arbitration

been

has

legislation is not only needed but

the end of

and judicial action to meet
such an emergency? Isn't it a bit
silly for men to oppose the writ¬
ing of a reasonable law to safe¬
guard the public from wanton and
intolerable injury, and then de¬

eral Labor Relations Board makes

streets, cit¬
public

enter

their personal interests.

workers had

a

stoppagmof essential produc¬

Isn't

ly why that charge is unfair and
misleading. The bill only pro¬
vides for the compulsory arbitra¬
tion of a limited number of un¬

recent

to

only
a

as

the

travel

allowed
of

In

denounced

tration bill. Let me

seen

have

we

lowed to
izens

commands

dictators?

private

mission

Political

The

elsewhere

against monopolies, against in¬
timidation, extortion and riotous
assembly, which permit them to
gain their ends by force and

buildings,

pletely forbidden by law.

Labor

bill

this

Yet

insurrection except

an

organized

an

fight it out, but the in¬

ing

negotiation,

voluntary

of

vide by law for a judicial hear¬

reliance of the Hatch-Burton-Ball

mediation,

~

people generally, and indus-*:
trial
leaders
in
particular,
to
realize
that
new
federal labor

r

of all unsettled labor

bill is upon voluntary

here

urge

force..

day

That is why the main

disputes.

doing, and the
today, is to

am

came

pulsion is needed. The larger the
injured public, the greater the
demand for the use of public

solid foundation for the

a

I

tion be ended by whatever com¬

and Government fact-finding.

"
is

What

rights of aggression

defense"

«nd

professes to be loyal, to
to paralyze an essential
industry and thus to force public
officials to make or apply laws
to serve the special interests of a
class, regardless of the general

some

those

The combatants may

war.

I

What

1171.
reason

public^al ways demands that

arbitration
system.
reached a state of
common
understanding Of/labor
problems and the bases for their
may

an

com¬

to

We have not yet

which

is

victims

the innocent

are

labor

the

compulsory

solution

there

want

today to pre¬

way

strikes is not to establish a

vent

to the limits of the

of

in

establishes,

today

words

or

that

jured

,;':-

The

combatants to push their struggle

law

The
the

passage

a

acceptable to both

sides.

strike to compel the
repeal of laws, that
such
a
conspiracy
could
and
should be prevented and punished
as a crime.
But is it not likewise
criminal
for
an
organization,
general

a

Limited

Be

judg¬

unfettered

whose

will

ment

if avowed Communists attempted

Aggression Should

Group

the

sustain

would be

r"

,

to overthrow or to
government.;; There

tions striking

is

truth

overwhelming demand for
pulsory
arbitration
from

How to Prevent Strikes
(Continued from page 2204)
speaking,
he won't be talking

Thursday, November 8, 1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

2224

set
r

JUjL

CO

to

support

Industrial
\vJLilkCil

proposed

the

What is needed today is not

iillO
\.i

~

prevent

good order and to relegate
less,
can

and

lawless

need¬

striking to the ash.
with duelling

of history along

trial

by combat which were

Act

outlawed by civilized nations

X~ti.il

Relations

the

of some new way to
strikes. There are just
procedures * that
have
been
thoroughly tried and found ef¬
fective. What we need today is a
national will and determination
to insist on industrial peace and
discovery

dfeO.

long

^

-'Jr'-

Volume 162

Number 4436

THE COMMERCIAL & FINANCIAL CHRONICLE
"

1

I

(Continued from first page)
ciiate postwar period
when, with
increased
equilibrium
between
supply and demand, they hope to
get on their feet again?
The ef¬
fect

on

both, in

other than that it be substantially

raised.
"How

the

at

one

business

the

on

be

ask

be

en¬

and

hand

one

time

same

well

may

small

can

couraged

opinion, will

my

But

discouraged

by raising

and making rigid one
greatest costs—the cost of

with

not

long continue under a truly
free enterprise system.
k;., ;
When Henry Ford startled the
world

by introducing a $5

day
minimum wage he could afford to
do

He

it.

had

a

the

be calamitous if this
legislation is

passed in its present form or even
it is seriously debated for a

.

of

labor paid in the form of wages?"
One
must
reluctantly conclude,

bigness of an
business, as well as
large surplus and reserves to fall
back upon.
It was a very com¬

therefore,

mendable

if

long period.

by

any means under

small

the

provisions of the Fair Labor
Standards Act—hereafter referred

to

the

as

FLSA—but

ginning of 1941 it

in relation

For

or

more

FLSA."*

firms

The

the

granted in this field.

we

are

year

in

nancial

Chronicle" for Jan. 25j,
1945, pp. 414-415) instead of the
60,000,000 Mr. Wallace still talks
hopefully of, and at least 14,000,-

industries
visions

affected
to

as

are

the

fully effective

come

on

Oct.

650 in the first
new

supporters
60

a

third years,
evidences that

of

or

the

bill

hope

wage.

650

a

its

short

The

vacation

a

case

before

V-J

"Chronicle" for Sept. 13,
1257 ff.). In two of his

see

1945, p.

direct proposals and in at least
one of his "assurances"
these in¬
consistencies crop out.
In Item
No. 15 in the summary of his mes¬
sage
under Small Business we
read.

"Asks encouragement for small

business,

but

makes

no

specific

recommendations."

But

by

under

the

the

assurances

Government

confidence, he

proposes

"Assurance that
merit

to

policy and

given

the

But when he arid

present bill, theiivage item
changed to the; progressive

was

amounts

as

Schwellenbach
the Senate

Secretary

appeared

committee

-

before

Sept. 25

on

in

support of the bill, it was
notable that he did hot comment
on

the

proposed

35 cents.

increase

He based the

above

figures in

In

..

.

ever,

under

its scope.
Hence it may well be that Pep¬
per and his nine fellow sponsors

thanr they expect to get, #nd Jn
the compromise which
may de¬

velop, if they can get 650 or even
600 they may be well satisfied.;:
Why "Big Business"

the—

Could Pay

Govern-

pointed to promote maximum pro¬
duction and employment in
pri¬
vate; enterprise."
direct • contradiction. how¬
to measures which will pro¬

While
the

increased

same

crease

Fair

he

proposes:
"

"Substantially raising the

pres¬

ent minimum wage

which

from 40 cents,
President regards as

the

more

minimum

much

in

the

of

Large

or

by

saving

these

tend to cut

not

the
apply to
business

react to such an in¬
minimum wage by

prices
labor

wage

hardship

does

business.

concerns may

Either

Act,

too

condition

small

raising

Standards

big business could pay

without

mote employment in small indus¬
tries^ at least, in No. 2, Under the

Labor

installing
machinery.

actions

if

taken

down labor's share of

total income. If prices go too
high
demand falls off and thus produc¬
tion and the use of labor, are cur¬

tailed, If they are forced by the
when established
greater labor costs to substitute
insufficient to assure
more
capital goods in the form
the
maintenance of
the. health,
of labor saving machinery for la¬
efficiency and general well-being
bor, the consequences to labor are
of the workers.'"
/ < obvious.
At
the
present
time,
He does not go on record as to
under a continuation of price con¬
what the minimum wage shall be'
trols, it is proposed that prices

inadequate
in

even

1938 and

*C/.,
in

£40-41.

Daugherty,
American
-

.

be
Carroll,

Labor

Industry,

"V




Prob¬

<1941).

pp.

position

a

to

do

kept at

wages

the

same

may, ' or

raised. "But

this

level

even

while

must,

condition

be

could

rather

economic

however,

important
to

than

those

to

will

generally

digest.

of

we

a

small

business

burdens

ent

stead

an¬

can-

thing,"

a

of

real

many

and

placing

chance

by

of its pres¬

restrictions

others

in¬

upon

it?

Its problems of readjustment dur¬

ing

the

reconversion

already great.
survive

some

It

or

period

if

most of them.

increased

any

nual

are

be able to

may

probably will not be able

and

guaranteed

which industry

we

mini¬

A

good

the

Unless

be

may

freeing it from

so

waff©

and

It
see

but in the meantime why not give

of

nual

to

wage in the sweated indus¬
tries and in most large industries

taxpayers' money, meets the costs
a

order?

easier

of these "reforms"

absorb

can

in

set

much

is

industrial

our

again
be

benefits

reconversion

mum

cost

where Government, with

industry and

is

then

how many

is

wholly socialized

a

and

house

almost

statesman.

going

are

economy

minimum

are

forced

do

wages

form of guaranteed

wages

It

to

an¬

it.

upon

•

ARKANSAS WESTER^ GAS COMPANY

;

| Nof ice of Siock Purchase Righfs to Stockholders
.'fe-V •

^

.'r~

.

•

■'

'

I

•'

'

'v\ £•

Subject to the conditions noted below, the Board
authorized the issuance and delivery to stockholders

1

-

of, Directors has

of record at the.:
November 8* 1745, of rights entitling such'stock¬
purchase for Five Dollars ($5) per share,
payable in cash, one (I) additional share of common stock of Arkansas
Western Gas Company, par value Five Dollars ($5), for each five (5)
shares of such stock held of record on that date; provided, that no
fractional share of stock -will be issued. Stock Purchase Warrants to
close, of business
holders

this

compulsory minimum
wage arrangements it suffers ac¬
cordingly.

'

or

on

their assigns to

.

purchase

Why Small Business Is Hurt
A

small

labor

units

one

of

of $5.20

a

or

650

per

suicidal

the

business

combination

Its

concern.

small

of

the

factors of production is
not

good

as

frequently
that of its larger

as

competitor. Capital is scarce for
such cohcerns; expert manage¬
ment
is
beyond them; highly
skilled laborers

are

often not ob¬

exercisable only when accompanied by like
a right to purchase one (I) whole
scrip will be exercisable in the manner and time

therein.

stated

„

'

•

\

f

Arkansas Western Gas Ccmpany
£ after the record date but at any time prior to expiration of the warrants and warrant scrip, In payment of a dividend in shares of Arkansas
;
Western Gas Compcny (declared by Southern Union Gas Company, a
(Delaware corporation,: to its stockholders of record on November I,
19^?, end to persons thereafter becoming its stockholders upon surrent der- pf. old stock certificates issued
by the other merging corporations,
as provided in en Agreement cf Merger and Consolidation dated Sep¬
tember 2, 1942), will not be effected by the record date of November
8, 1945, as to stock so received, but will contemporaneously with their
;
receipt of such stock, if prior to expiration of the warrants and scrip,
receive warrants and/or scrip described herein entitling them or their
•;n;: assigns to purchase for Five Dollars ($5) per share, payable in cash,
one
(l) additional share (or each five (5) shares of stock so received.
The issuance and delivery of warrants and warrant scrip is conditional
upon formal
authorization by Arkansas Public Service Commission of
the stock sale involved and upon approval by a majority in interest of
Arkansas Western Gas Company's stockholders of an amendment to the
Certificate of Incorporation increasing the number of authorized com¬
>

•

a

hour, would often be

for

of record

Persons receiving stock certificates of

the

as - would be the
under the proposed increase

case

Warrants and

be

to

establishment*
to

names

scrip representing jn the aggregate
share.

day or $1,300
to the lowest laborer in the

year

whole shares will be issued in the

transfer by delivery but

to

Vv'

like

Hence

labor.

such

or more

subject to exercise or to assignment, and Stock Purchase
Warrant Scrip for fractional shares will be issued in bearer form subject

usually has
of its greatest costs.;
tap the large capital
to
get funds for labor

as

one

it; stockholders

business

cannot

■V

.

.

-

tainable;
often

or

If by

the

hence

made

ficient

not

are

adjustments
the

desirable. ;.

most

mon

ef¬

at

their

wish

that

he

he

or

the office of The

First National Bank of Chicago, Transfer Agent, Chi¬
Illinois, to stockholders cf record on November 8, 1945, and to
other persons who shall have received since that date and prior to
such mailing any shares of Arkansas Western Gas Company in
payment
of the dividend, as aforesaid. If not exercised all the warrants and war¬
any

his

cannot

rant

scrip, and all purchase rights represented thereby, will expire
according to their terms approximately 31 days after the date of such
mailing. Warrants and scrip to which other persons become entitled, by
virtue of receiving Arkansas Western Gas
Company stock in payment of
the Southern Union Gas Company dividend prior to said
expiration, will

on locally invested
He may operate for a
year or two without discovering
that his own wages of manage¬
ment Or "profits" are nil.
But
ultimately for one or more or all

capital.

these

he is

reasons

be mailed

backbone

of

our

contemporaneously with payjv u
; j
''•>,«
believed to be exempt from registration
they have not been registered, and it is not intended that they will be
registered with the Securities & Exchange Commission; but such exemp-

If

small

business

is

be

reconversion,

and

with

em¬

ployment ^offices crowded with
people filing claims for unem¬
ployment benefits, why add to the
burden by forcing other industries
cut

of

wages

less

business

of

wages

ployment
also

their

fall.

by raising the
employees?
Un¬

are rigid, when em¬
declines wages should

Now

with

employment
declining rapidly in many fields
and in many areas of our econ¬

'

,

,

that the securities have been either

y.

'

-

,

•
■

.

may

;'.J

number of shares not

of warrants and warrant scrip is 20,611, and the maximum is 20,861.
It is estimated that the expenses incurred and to be incurred in con¬

workers being laid off in Chicago,
Detroit and other industrial cen¬

ters, due to the falling off of war
and the timG necessary

,

are

be issued for the purchase of an addiexceeding 250.6 (based upon the maximum
number of additional shares possible to be issued hereafter in
payment
of the Southern Union Gas Company dividend as set out
above). Ac¬
cordingly, the minimum number of shares subject to sale upon exercise

Timing of Proposed Change

business

,

*

>•

presently outstanding) and

tional

With hundreds of. thousands of

for

.

or disapproved by the Commission or that the Commission has
considered the accuracy or completeness of the statements herein made.
Warrants and warrant scrip will be issued Tor the purchase of 20,611.2
shares of common stock (based upon the total number of such shares

encouraged why not encourage it
by not. raising the cost of its
most important cost item—labor?
Poor

' '

approved

free

to

dividend.

tion, if available, dees not indicate

enterprise system, is forced to the
wall.

J

otherwise delivered to them

Because these securities

business, and the demand for
his goods goes to the larger con¬
cern.
Big business gets bigger
while small business, which has
the

or

ment of such

forced out

of

been

;;

;

cago,

make returns

of

be held at Dallas, Texas, No¬
Following such authorization and approval warrants
scrip will bo mailed (on or about November 30, 1945) from
1945.

27,

and warrant

soon

meet

cannot

interest on bank debts

106,000 to 150,000, such amendment to be acted upon

special meeting of stockholders to

vember

or

marginal product,

finds

shares from

a

.

by law the small
businessman begins to pay his
laborers more than they earn,
more
than the money value of

„

lems

tician

under

payment

indicated.,
Likewise " w hen;

promote

program will be

dinarily in

most

raised

gains and

until

y

impos¬
sible heights, are emphasizing the
position and needs of the poli¬

or¬

product attribute to labor

600.

under

be

social

labor"

completed

the other that small

on

business's
shall

through the "principle of substitu¬
tion," if one factor becomes too
expensive less of that factor will

and

<

"the

of

less inevitable that those

aged and

production—capital,

Small business is not

'

'

meet, would it not be better

to defer some of these extensions

who propose on the one hand that
small
business shall be encour¬

land, labor and management—and

be used.

not

of

of

encouragement

conclusion,
or

Company," making

"nine other Democrats" sponsored

FLSA to

bill to raise

a

wage

*

every

one-half

the

minimum.;

of the bill may be asking for more

,

and

-and

The

more

saving capital goods. It cannot, in
the long run, pay labor any more
than
the
value of its
marginal
product—i.e., the rvalue of that

the

$1,300 for a year of work." He
proposed
also that, the FLSA
provisions as to hours and mini¬
mum wages should be extended to
agricultural processing industries,
just as Secretary Anderson on
Sept. 27, in supporting the 650
level, suggested directly and by
implication that it would help ag¬
riculture
by providing a large
market and by probably bring¬
ing more agricultural workers

sage

tection

small business."

the most effective combination of

markets

propose.

dent's recent message to Congress
on Sept. 6
(for full text of mes¬

Motor

when

Pepper announced
Congress reconvened

time

hours

counters

sop to

Fords, Lincolns, tractors, etc. Big
business
through its
economic,
statistical; and scientific research
programs; can usually work out

in

his argument on a minimum wage
of 650 per hour, "representing $26
for a standard work week, and

J At least three inconsistencies in
this regard appear in the Presi¬

"Ford

It

24,

Message

with

two

—

under the FLSA—there prob¬
ably never would have been a

Senator

he would introduce

400
be¬

Presidential

hours

pay

the

on

second year, and to 750 in the
third year and thereafter, as Sen¬
ator
Pepper and his supporters

in

ten

overtime

that

bill, to 700 in the

Inconsistencies

work

Government

measure

labor at this time may be
more
important politically than
any
real concern for "the pro¬
a

move on

profit

the factors of

and

some

to

of

2225

'

increasing the
costs
of
production
which,
if
adopted, will inevitably lead to
greater unemployment. There is,
of course, a Congressional election
in the offing in 1946, and hence

-

his part in the
sharing or in re¬
ality of sharing the earnings of his
business
more
equitably.
But
until his concerns were making
millions he could not afford this
luxury.
If he had been com¬
pelled
when
his
industry
was
small, working with six or eight
employees, to pay each a mini¬
mum
of $5.20 a day for eight
hours at 650, or $7.15 if they had
field

Day

of operation

year

second
are

is

for

look with equanimity upon hav¬
ing that minimum pushed up to
under the

650

established

point. Before Congress adjourned

conditions

2945—seven years after the FLSA
went into effect in 1938—will not

or

;

vagueness
"substantial" increase is

would; have
difficulty, in meeting the

present requirements of a
minimum wage when they

600

President's

the FLSA, then the importance of
: changes in this
act as they
affect the minimum wage is more
or less
self-evident.
Many busi¬
nesses,
both - large and
small;

found

bigness.

upon

of operation, and 700 and 750

the

for

in

any

-

many

point out that probably the most

the pro¬
and hours of

which except for War
and
war
contracts

the

can

hence, like

from 400 to 650 in the first

there

by

wages

readily meet this

premium)

wage

and Fi¬

one-fourth of these

proposed or imagined.
given below big busi¬

more

for

January (in "Commercial

or

even

could

While the present bill provides
an
increase of the minimum

to

have 56,000,000 or 57,000,000 jobs
after the war as I estimated last

000

or

business

Real Goal Probably a
Minimum

powers

If

small

concern;

ther

interpretation of the in¬
terstate * commerce clause of the
arid

to the revival

policy

;

other Government measures, the
proposed increase in minimum
wages will tend to drive out the
small business firm and put a fur¬

the

constitution

can

small

provisions of the
act covers those

incon¬

more

increased labor cost than

commerce or in the production of
goods for Commerce," which cov-;
ers a very wide field in the
light

of

so

reasons

ness

employees "engaged in

or

A

contradictory

of

hardly be

about 14,000,000
employees,
roughly 25% of the total gain¬
fully employed population, were
"subject, actually or potentially,
or

one

and

survival

estimated

that

to

business.

sistent

by the be¬

was

in

it is but another example of
"slobbering lip service" in - the
protection and encouragement of

know, of course, that not all
even a majority of small busi¬
come

in this, as

ness,

I

nesses

that

many other of the so-called ben¬
efits to be granted to small busi¬

.Fourteen Million Gainfully
Employed Affected
or

its

1

the

omy,

Small Business and the Minimum Wage

1

1

t

,

with the distribution of the warrants, warrant
scrip

nection

and common
stock, including cost of preparation and delivery thereof, will not exceed
$5,250 or approximately 25 cents per share of common stock which may
be sold upon exercise of the warrants and
scrip. There will be no under¬
writing discounts or commissions.
the securities are being offered by and for the benefit of Arkansas
Western

Gas

Company. The net proceeds from the securities wi ll be
general funds of the Company and will be used for the
acquisition of property, the construction, extension or improvement of
added

to

the

its facilities

or

the

improvement of its service.
L

Fayetteville, Arkansas, October 26, 1945

L. BAXTER,
'

President

I

*

k'*m-w.va:-

1

CHKONTCU

THE COMMERCIAL « FINANCIAL

2226

comparable to an error of 3% on

What the Full

In every

(Continued from page 2202)
is how to app

now

Now

ernment has found it necessary to

that there wouxd oe

appear

deep depression the Gov¬ Board,

of

crisis

the

during

that

thoughtful men that there are
important v fundamentals
upon
which all can agree.

Problems

Solve

Within Free

called
the
Conference
on
Unemployment
which met under the chairman¬

In fact, there

are two funda¬
which the American

people already are agreed.
The
first is that our economic prob¬
lems must be solved within our
system of; free enterprise.
The
second is that the most important

maintain

of these problems is to
full employment.

In 1931,

Congress passed

crisis,

greater

midst of an even

the

in

the Em¬

ployment Stabilization Act estab¬
lishing a board composed of the
Secretary of the Treasury, the
Secretary of Commerce, the Sec¬

Enterprise ..System

mentals upon

gress

retary
of Agriculture
and the
Secretary of Labor.
The whole
experience of the 1930's is con¬
crete evidence that the Govern¬
ment must deal with the problem

cannot abdicate this

it

that

and

responsibility.

V

v

During
depression
we
are
conscious of the need for govern¬
ment action, but as soon as we

unemployment
is
the
have prosperity we seem to forget
source of most of our social and
it.
In 1928, in the midst of the
economic evils; it is the greatest
menace to economic security in great boom, Senator Wesley Jones
this country. We cannot periodi¬ of Washington introduced a bill
for a reserve of public works to
cally condemn 10,000,000 unem¬
be constructed during depression.
ployed to bear this burden.
We
cannot declare these
men
and The bill was killed according to
women
industrial surplus and the Senate Committee report on
Mass

an

The

dispose of them in that way. That
is not the American way of doing

wise to mention depression

I do not subscribe to

the pessi¬

campaign.

Presidential

a

things.

same

before
That

Senator Wagner intro¬
Stabiliza¬

year

duced the Employment

unemployment
tion bill. It was a bill to provide
is inevitable and that any effort
for the advanced planning and
to prevent it is a threat to free
regulated construction of public
enterprise.
Our people Want to
works, for the stabilization of in¬
keep the economic system under
dustry and for aiding in the pre¬
which
this
country
achieved vention of
unemployment.
This
leadership.
They know it offers
bill, which could have been so
the best hope of continued eco¬
helpful when the crash came in
nomic progress and higher stand¬
1929 lay dormant for three vital
ards of living.
They will never
years.
It was only in the midst
abandon this system so long as
of the deepest depression of our
they can cherish this hope.
The
history, when it was too late to
that

mistic, view

enterprise in
icatieoriie frbm mass

only threat to free
this country

unemployment.
Our task is to
remove this threat by meeting the
problem.
And

let

this clear:
not the fault

make

me

is

Unemployment

Jof business. Business

men

do not

want
to
stop production or to
lay off men.
They know that
profits come from production. So
long as they can find markets
they
are
prepared
to
employ
labor and to produce goods.
It
is only when ,the demand falls
off, when goods cannot be sold,
that they close down or reduce

their force. Give American busi¬
the markets, the demand for

ness

the

will witness
that
will surpass everything we have
seen
before.
Unemployment is

a

output,

and

we

miracle of production

new

take

what should have
When the bill was

done.

been

that

catastrophe,

the

realized

we

have

might

that

measures

prevented

finally passed in 1931, it was in
emasculated form*
' +
•
Unemployment Stabilization
Insufficient
The

Act

Employment Stabilization
not provide for a com¬

did

Act

prehensive program oh unemploy¬
It

ment.

not concerned with

was

types of

many

be taken

to

It dealt
exclusively
planning and timing of
public works as a means of pro-*
viding employment during de¬
pression.
It was enacted during
a great crisis when public works
with

the

could

do

no

more

than

alleviate

,

the fault of business. On

not

contrary,

business

the victim of

like

the

labor

is

depression,

It is equally clear that unem¬
ployment is not the responsibility
business.

When

demand

falls

off, business men have no alter¬
native; they must cut production.
If they persist in producing goods
for which there are no markets,

they will incur losses that may
force
bankruptcy.
In general,
-when business

ciently,
prices,
wages,
do

can

profits

produce effi¬
when they sell at fair
and when they pay good
they have done all they
and they are entitled to
from production.
Busi¬

cannot

ness

bility

on

men

assume

the responsi¬

unemployment.

Government

have

us

that
to

we

a

our

see

must
a

admit

that all

responsibility

to

economic system

that there

are

of
see

works,

opportunities

for jobs for men and

women

will¬

ing and able to work.
This is a
responsibility of all the people,
and

we

ment,

must look to the Govern¬

acting

for

all

the

under the Act and this was done

far
As

a

offices in the smaller communities.
The bill

was

Hoover.

In

another

000,000

people,

to meet this responsibility.
There is nothing revolutionary

bill

for

President

Congress passed

authorizing $3,300,works.
The

public
so

authorized

was

through the P.W.A.

The

Employment Stabilization
contemplated the sub¬
mission of a national budget with
Act

never

recommendations

to

with

deal

depressions.
It only
provided for plans to arrange the
construction of public works in a
prospective

manner

which would assist in the

stabilization Of employment.

The
useful

timing of public works is a
of a program for dealing
with prospective unemployment.
But by itself, it is entirely inade¬
part

quate. .Under any circumstances,
it

would

not

be

possible to do
anything now under this Act, for
these functions, which had been
consolidated

in recognizing this responsibility. National




vetoed by
1933

with

those

Resources

of

the

Planning

In dealing
problem of preventing
mass unemployment, an error of
3% could not impair the useful¬
ness
of the national budget.
In

It provides for a
that will show
the amount of production neces¬
sary to maintain full employment,
and it requires estimates to
be
made of the prospective demand
for this production*
Such a na¬
tional budget will be transmitted
by the President to Congress each
year and will be considered by a
Joint
Congressional
Committee
which will report to the Senate
and the House of Representatives
its findings and recommendations
with \ respect
to
the
national
budget.

practice, the problem, will not be
tne elimination of minor errors of

national

budget

This procedure seems to me the
and
dollar-wise

common-sense

to deal with the problem of
unemployment — through preven¬
tion rather than through relief.
The first step is to get the facts
and place them before those who
have the responsibility for deal¬
ing with the problem.
way

The

been made
budget calls
attention
to
a
prospective de¬
ficiency or excess of demand, de¬
pression or prosperity will start
that

at

has

argument

if the

national

The

once.

does

evidence

bear out this view.

not

We don't get

prosperity or depression merely
by predicting it.
If we could, we
would

of

have

never

1929

1933,

to

that

prosperity

the

had

crisis

the

Business

assured time and time

were

just

was

Business

corner.

men

again

around
act

men

on

the prospects for demand for their

products

from

their

customers.

When demand falls off they stop

A

production.

national

budget

that recognizes a prospective de¬

ficiency in opportunities for em¬
ployment and carries recommen¬
dations for dealing with the prob¬
lem
can
give increased
confi¬
dence to business
with their

men

to continue

investment, their

pro¬

duction and their employment.
Government

in

Position

In

spite

statement

of

the

that

the

required by this bill, I
on record as stating
that the government is in a posi¬
tion
to
make
reasonably good
estimates.
In dealing with the
tax and savings program during
to

go

war we

had to make estimates

prospective income and

diture.

expen¬
From these estimates we

developed

program to reduce
and limit over-all expenditure to
a

the available

goods.

supply of consumer
Nobody claims that the

is

a

pressions are the price we pay
for freedom, are doing no favoir
the

to

The

freedom.

of

cause

of private enterprise has
enabled the United States to outr

system

produce every other country in
the world, and to win this most
destructive of all wars with a
minimum loss of American lives
and a maximum reliance on the

goods industries which generally

will

precedes a great depression.
The
national budget will be submitted

I am sure

peace,

made

will be

quarterly

but

annually,

The

Full

budget will com¬

pel the attention of Congress and
the Executive Departments to

of employment.

be

would

a

mistake

to

submission of

the

that

assume

serious

the

But it
a

budget can of itself prevent mass
unemployment.
The responsibil¬
ity of the government does not
end there.
The important thing
is to take the positive steps that
will facilitate and encoufage an

expansion of consumption and
private investment Whenever this
becomes necessary to prevent a
great depression,
v
There is no reason for assuming
that the remedy that iwill be rec¬
ommended, when a deficiency In
employment
opportunities
ap¬
pears, will be government spend¬
ing.
There will be times when
changes' in our tax policy will be
needed to help maintain employ¬
ment and production.
There will
be times when changes in credit
policy will be needed.-,There may
be times, of course;-when because
of a decline in private construc¬
tion, the proper remedy will be
an expansion of public: construc¬
tion.
We should be ready to pro¬
ceed promptly with the construc¬
tion of necessary and useful pub¬
lic works whenever there is a fall¬
ing off in private construction.
a

Spending Bill
a

spending bill.

ItNdoes not authorize any expen¬
diture.
Whenever legislation may
recommended

be

budget

in

in

the

of

the

with

connection

maintenance

national

employment will

to Congress and will be sub¬
ject to the same procedures as
now.
In fact there will be the

go

additional opportunity
the

tee

Joint Congressional

of having
Commit¬

the national budget give to

on

Congress its report on the
policies that should guide Con¬
gress in dealing with legislation
relating to the national budget.

the

addition

In

to

the

specific

perfect.
They can and will be
improved under this bill. Esti¬
mates of the national budget will

Employment Policy
vs.

Alone Cannot Prevent
Unemployment

national

problem

if its friends wiil stop in¬
that it must produce de¬
pressions to realize its natural
destiny.

sisting

conditions.

account of changing

Budget

reports

to Congress taking

of free enterprise
us to
win the

enable

also

Relief

these

of

second

The

Union

League Club arguments is that a
full employment policy is expen¬
sive and
that relief is cheaper.

Mr. Rufus Tucker,
the General
Corporation, told the Sen¬
ate Banking and Currency Com¬
mittee that the taxpayers ". . „

For

example,

the chief economist of
Motors

may

[he said only "may"] have a
obligation to keep any citi¬
from starvation
." but thai;

moral
zen

.

.

often be fulfilled
cheaply in other ways than
by providing jobs. I am sure thai
you will agree with me that this
is an excessively narrow view of
the problem. Ignoring altogether
its callous disregard of the feel¬
this obligation can

more

of

ings

unemployed, it errs

the

for
symptoms of un¬
employment
and
makes
no,
attempt to effect a cure.
It is
like the view taken by a doctor
even

on

the side of expense,

it treats only the

prescribed
that
a
poor
patient should wear a truss all
through his life because the doc¬
tor feels that an operation would

who

unduly expensive; or bother-;
•
■
t- -

be

some.•

,.

Lastly, some of the Club "intel-.
lectuals" believe that a pool of

unemployed helps to keep labor
its place, and is conducive to,
the
profitable operation of the
enterprises with which they are
connected. Naturally, these per¬
sons
seldom express their opin-.
ioris for the records.
;
In addition to the three broad

in

of opposition to the full
employment -bill which I have
just mentioned, there are other
persons whose opposition is based
on
the
honest belief
that die
currents

adoption of some policy or

policies

particularly advocate
the attainment of
the objective of continuing full
employment.
To the extent that
these people are right, there is
room
for the consideration and
which they

will

in

result

of their policies within
of the Full

adoption
the

broad framework

Employment-Bill.

criticisms of the bill which I have

discussed, there are certain broad
objections offered by some—and
apparently
believed • by
many

have

now

we

,

false dilemma which
gives us the choice between full
employment and a free society;
and those who tell us that de-r
Vlt

products of industry.

are

statistical data

that,' and"
have

.

that the system

Not

type

want

I;.

also.

than

system

that you gentlemen

know

I

demand is developing in the con¬

This bill is not

qannot make accurate estimates of

the free en¬

faith in the vigor of

struction, equipment, and durable

to

oft-repeated
government

the

the

estimate; the real problem will be
to
see
whether a deficiency in

Estimate National Budget

of

matter of

fact, John Gar¬
bill through in 1932
authorizing expenditure of $2,200,000,000 for public works. This
bill followed the principles estab¬
lished in the Employment Stabili¬
zation Act.
The money was to be
used only for the construction of
public works previously approved
by Congress or the Executive,
except for—$79t,G0O70G|O ~ for post
a

put

ner

number

the

jobs from
employed.

500,000

is actually

Employment Bill

opportunities.

the

possible.

as

undertaken

responsibility on
unemployment. There can be no
vacuum, no void of responsibility
on
the most important domestic
problem confronting the Amer¬
ican people.
When we face the
issue

mass

construction

Responsibility

Now the fact is that somewhere
there must be

unemployment that al¬
ready existed. This could be done
as

f

of

the

3% would represent a
of not more than 1,-

of

with

that can
great de¬

pression.

the
An

logical development of the Act
of 1931. It recognizes the continu¬
ing responsibility of government
to see that there are enough job

measures

prevent a

Full

national

of

components that is

difference

a

,

S. 381 because it was deemed un¬

Employment Bill
Improvement

sday, November 8, 1945 §

terprise

significant for purposes of
proposed national budget.
error

Full

year,

Harding

President

in this country
on how this can be done.
But a
ship of Herbert Hoover.
more careful study will convince
less disagreement

:<

Con¬

abolished by
in 1943.
* 1 \
were

In 1921,

deal with unemployment.

estimate

the

is

It

income and its

,

war

first

at

.

to the peace.
glance,
it might

the

lessons of

Employment Bill Will Do

;?■•;>

income.

national

fiui

Bill Does Not Undermine
Free

Enterprise

to emphasize
objections the again that this Bill is in complete
business on the basis of data pro¬ Union League Club objections be¬ accord with our system of free
enterprise. It does not authorize
cause they find their / most enthu¬
vided by business.
siastic
supporters in the stuffy the government to operate any
I have seen some doubt cast as
environs of the most exclusive plants or factories or productiveto the competence of the govern¬
It does hot authorize
clubs.
But they deserve* to be facilities.
ment to prepare a national budget
use
of
any
compulsory
held up
to critical and public the
on the grounds that the govern¬
measures
in determining where
ment has not done very well in analysis where their merits can
people are to be employed. Every
be evaluated.
be

made

after

with

consultation

estimating its expenditures and
receipts.
I should like to com¬
briefly on the receipts side
of this criticism, since the esti¬
mate of receipts is a statutory re¬
sponsibility of the Treasury De¬
partment.
In the six years be¬
fore the war, from 1935 to 1940,
the average error between esti¬
mated
and
actual
tax
receipts
averaged about 6%.
In four of
these six years, the error was 5%

ment

or

less.

Now

this

is

not

a

bad

it is more diffi¬
cult to estimate tax receipts than
it is to forecast business condi¬

record, because

tions.

by

We

starting

business

6%

in

estimate

with

an

conditions.

tax

receipts

tax

receipts
estimate of

An

is

error

of

probably

The

most

pervading

of

these

League Club arguments is
the defeatist attitude with respect
Union

Mr.
William L. KleitZ, Vice President

to

our

of thd

economic

system.

Guaranty Tfust Company

of; New York

City,: for example,

told the Senate Banking ahd Cur¬
rency
are

Committee that depressions

inevitable

under the free en¬

terprise system. Such depressions,
of course, will be only minor in¬
conveniences to
Mr.
Kleitz.
I
should

want

I call these

more.

,

Finally,;■ I

like

to

put ' myself

>

on

from the view
that the free
enterprise system
makes such periods of unemploy¬
ment necessary for those less able
to
bear them.
I have greater

record as dissenting

♦

free to run
always has*

business man remains

his
The
to"

business

as

he

government's sole function is
exercise

the

necessary

fore¬

sight in dealing with prospective
developments that affect employ¬
ment and to take such measures
as are
authorized by law to pre¬
vent a
deficiency or excess i»
demand.
The whole spirit of this

legislation is not to coerce indus¬
try but to provide an environment
in which industry can realize its
enormous

potentialities for
Employment.

pro¬

duction arid
■

The

•

to

the

Employment
Bill
assumption with respect V;

Full

makes no

general

economic

character of our

problems

at

any

par-

Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4436

ticular time.

The Bill specifically
provides that the National Budget

shall

make

recommendations

the control

this shall

for

of inflation whenever

be necessary

as well as
for
achieving
maintaining full employment.
There is nothing inflationary in

recommendations
and

this

opponents

this

of

Bill

leveled most of their attack

alleged promise to provide
job.

an

every man and woman with a

The

Bill

merely

production.
For
dollar spent on housing
are
two dollars
spent in
other

breeds
every

Some

does

this.

do

not

recognizes

the

It

govern¬

ment's

responsibility to see that
there are enough opportunities for
productive work to employ all
men and women willing and able
to

(Continued from page 2205) !;
tion > industry,
but
because we
know
that
construction
activity
\'v

Bill.

have
on

The

The Construction Reconversion Problem

The

work.

chance

to

earn

a

living is so fundamental a human
right that it cannot be denied by
quibbling or by the equivocal use
of words.

In

a

industrial

modern

there

The existence of a

other markets.
for

market

houses

existence of

market for numer¬

a

commodities

other

ous

the

means

house

—

furnishings,
consumer
durables,
textiles,
radios,
automobiles.
Home building generates activity
in road building, school building,
the building of stores, the exten¬
lines. : It

sion-of bus

em¬

means

ployment not alone for the log¬
gers and lumbermen and carpen¬
ters, the brick manufacturers and
the bricklayers, the

plumbers and

lending on mortgages.
They will
enlist
voluntary
cooperation of
banks
tions

other

and

lending institu¬

minimize

to

inflated

prices

the

due

of
excessive

danger

to

communities

Fifth, representatives of indus¬
groups
are
to be called to
Washington to map out with Gov¬
ernment a voluntary program to
increase quickly the production of

ercising due caution in the exten¬

:

.

try

all materials and facilities needed

for

an

expanded

home-construc¬

tion

industry, and also to help
fight inflated building costs and
real estate prices.
'.
Sixth, >the
National
Housing

service

But it

of this country know that un¬

ers

employment in American industry
means
low prices and the accu¬
mulation of surplus crops.
They
know that a sound post-war farm

must start with plenty
and good wages in in¬

program
of jobs

dustry
which
in

that

so

abundance

what

produce

can

business

and

depression

men

to

means

them—reduced output, losses and
even
failures. -The maintenance

of

production and the profits of
depend upon an ade¬

business

quate demand for output. Such a
demand requires the prevention
of

unemployment.

mass

Some

people

seem

afford

full

to think we
employment.
is a confusion of thought
It
is unemployment
that

cannot
There

here.

afford.

cannot

we

The

unem¬

ployment of the 1930's cost
far

income

lost

this

and

in

us

than

more

'

cost

not

was

•

on

home

values available

If

we

can

of

duction

50%

increase

pro¬

our

goods

production

capital

construction,

cluding
than

Of

100%

the

above

We

and

not repeat the error of
1931 of trying to deal

with this

problem when it is too

must

1921

late.

This

be

enacted

because

and

can

I
on

'£•

•

•

100%

above

levels.

pre-war

one-fourth

let

cannot

We

of

re¬

our

sources go to waste. As Secretary
of the Treasury, I say that it will
be

much

harder

balance

to

budget and to service
'■*.

debt if

our

national

drift into another great

we

depression.

f

our

.

i

want

we

can

prevent

mass

unem-

decide to deal
intelligently with ,this problem. I

>

said

have

; say

wars,

we

it

again:

it

are

makes
>

if

can

we

before

and

I

shall

"Depressions,

not acts of God.

them.

If

we

make

unmake them.

We

like

Man
them,
must

create, in peace, a new prosperity
and a greater opportunity for jobs
than has existed before."
We shall not solve the

of unemployment

it

threat

to

clines

read

but

to

deal

depression

:

one

'

business

men

with

now

of

this point:
"When

deal
now,

it to

need

we

the

should

will

paragraph
, :
-

problem
by ignoring it.




previously

houses wherever and of whatever

means

of

is to withhold loans
the basis of. inflated

appraisalsP?'pP^Pi;|P:|P.::PGentlemen, we are faced with a
complicated situation.
There are
the

on

hand

one

credit,

vast

sources

of

liquid

tremendous

plus

assets in the hands of individuals.

On

other

the

there

hand

is

built to satisfy the demand.

We

know, of course, that the
removal of L-41 is only part of
to

answer

today's construction

The

removal of the
order does not,, of itself, increase
the supply of basic building ma¬
terials.
Nor does it bring back

problem.

not

our
present intention to ask
Congress for such legislation.
If the Congress decides to con¬
sider such legislation providing a
simple workable machinery that

John E. Wheeler With

rather

than

retard

construction, it would receive our
support.
It is our present inten¬
tion, however, to
exercise
the

I have

outlined here, to
six-point program
discussed, and to ask the
cooperation of the industry and

powers

the

undertake
I

;

Turner-Poindexfer Co.
LOS ANGELES, CALIF.—-John
E. Wheeler has become associated
With
629

Turner-Poindexter
South

of

the

he

was

Spring
firm

the

St.

Co.

&

and will
the floor

on

Los

Angeles Stock Ex¬
change.
Mr. Wheeler was re¬
cently released to inactive duty;
Air

Officer

the

stimulate

are neces¬

from bothersome controls.

represent

;

given to the advisability of price
control on finished houses.
It is

will

the controls that

today can be lifted.
But if
production
is
stifled
and
re¬
strained, controls will Continue
necessary for a longer period.
As
I have said, we must have your
help. Only by complete coopera¬
tion now can we provide for a
level of production that will help
us to fill the housing demand and
bring about earlier prosperity free
sary

an

Considerable attention has been

with

Combat

Intelligence

fighting

19 aboard the U.

squadron

S. S. Lexington.

Mr.

Wheeler, who was formerly1
of John E. Wheeler &
Co.,
Chicago, still retains his member¬
ship in the Chicago Stock Ex¬
change, where he acted as a spe¬
cialist odd-lot dealer, trading such
leading stocks as General Motors,
Libby, Sinclair Oil, etc.

head

have

the

Paul Barnes

financial

moting

a

basis

a

type the times demand.

institutions, in pro¬
construction program on
fair

of

and

reasonable

If such a program does
not seem to be meeting with suc¬
cess, we will determine on what
further
steps
the
Government

Staats Co.

prices.

should take.
I have

>

LOS

on

V.-P.

ANGELES, CALIF.—Paul

V. Barnes, who has been on

a

mil¬

itary leave of absence from Wil¬
liam R. Staats Co. since
now f-

merely touched

Rejoins 1

as

some

completed

returned

again

be

de¬

laid

his

1942, has

service

and

Nov.'

problem of unem¬
ployment may again become
serious.

It

will

then

be

ress.

A

subcommittee

of

NOTICE OF REDEMPTION

the

Construction
Com¬
mittee set up in my office will
give continuing attention to solv¬
ing the problem of any shortages
which develop.
Some price in¬
creases,
to stimulate production,
already have been granted, and
numerous priorities for obtaining
needed
equipment
have
been

THE DAYTON POWER AND LIGHT

Interagency

financing

the

and

of the

First, on the question of sup¬
plies and materials, we believe
we are making considerable prog¬

In

addition,

referred to banks
Government lending agencies.

or

You of

too

were

course

are

COMPANY
First

First and

familiar with

Bonds,
Mortgage
Series Due
Refunding Mortgage Bonds, 3'4% Series Due 1962

NOTICE IS HEREBY GIVEN

denture dated

that,

pursuant to

the provisions of the In¬

of October 1, 1935, the First Supplemental
thereto, dated as of March 1, 1937 and the Second Supplemental

some

plants which heeded assistance in

off

on

program:

authorized.-

as

Indenture]
Indenture!

thereto, dated as of January 1, 1940, all executed by the undersigned toi
Irving Trust Company, as Trustee (hereinafter together called the In¬
denture), the undersigned has elected to redeem and will redeem on'
December 1, 1945
,
.
;
,
(

for

late

any

cept relief for the unemployed
tmless we now address our-'
selves to the task of

ing,

or

preventat least reducing, these

extreme fluctuations

activity.

contrasted

>

of busi¬

Prevention

with

policy of continuing an inven¬
tory ■ control program to prevent
hoarding or preemptive buying of
building materials which might
delay
construction
by
creating
artificial shortages. ' Inventories
are limited to a practical working
our

ex¬

measures

ast

relief is pos-

minimum,

but

only

sible only through foresight,"„

are under inventory

This

;

"i

v

is

a

statement as

timely

when it was made by the

now as

Committee

headed

by Owen D.
Young and appointed by Herbert
Hoover as chairman of the Presi¬
dent's

Conference

ment in

1921.

on

Unemploy¬

,

In my

opinion the Full Employ¬
requires
us, to deal with the problem of
unemployment while there is still
time, before it is too late.
-

ment Bill enables us, yes

:

-There is no doubt in my mind
that

J ployment

that

promptly.
In
my
an urgent bill—not

when it does come.

increase

must

bill

need

we

because

ness

we

a

unemployment

mass

me

consumption by 50% and expand
construction and
investment by

is

opinion it is

view;:foP£het faets^ W^

that

on

ex¬

get

1, 1945. He
high points. We believe we has been elected a
Vice-President
the skilled workers of the build¬ are following a course of action of the firm
and appointed man¬
ing trades and the allied supply which will help to achieve a high ager of the Pasadena
office, it has
who
have
been ' scattered level of production.
But, in the been announced
terials so that building will not lines
by John Earle
It does not, of final analysis; the solution of the Jardine, President.
be delayed by artificially created during the war.
Mr. Barnes
itself, increase the number of con¬ construction problem depends on was a
shortages.,
Major in the United States
and
supply £ concerns the initiative of American busi¬ Army Air Forces, and-was an ex¬
Third, the Office of Price Ad¬ struction
men.
♦ Consequently,
the ecutive officer of a
It
does,
however, ness
ministration will strengthen price operating.
fighter squad¬
Government looks to you for pull¬
control over building materials to facilitate the distribution of sup¬
ron in England.
plies and allow for more types of ing men and materials together to
counteract inflationary pressure.
Wm. R. Staats Co., members of
do the big job of building the
construction.
Fourth, the Federal credit agen¬
the Los Angeles Stock Exchange
Now let me say a few words houses that will do much toward
cies will do everything possible to
is located at 640 South Spring
about what has been done under leading our country to full pro¬
discourage excessive and unsound
Street.
1
the six points of our construction duction.

-

r

couple of days

a

Administration, is strength¬
ening inventory controls to pre¬
vent
hoarding of building ma¬

level.

convinced

be

Production

which

limited
construction—so that the industry
can get going without delay and
get into the business of building

the

War

the

tion

"Director of War Mobilization and

has

shall

bottlenecks

Board, which in

chart, based on a Commerce
Department
study
when
Jesse
Jones
was
Secretary, shows in
more detail what full employment
means
to business.
My own re-

Reconversion,

price and
priorities to

will become the Civilian Produc¬

This

;

active

an

necessary

increases and

Second,

goods, in¬
by
more
1940

be

granted.

our

consumer

shall

where

break

by

above the 1940 level and

50%

that

put our full resources to

we

work,

there

wage

tion—in the elimination of Order

L-41,

campaign to increase the supply
of scarce building materials, and

with

Can Increase Production

It

program.

First, that through inter-agency
action

the

dis¬
tributed
among
all the
people
on
an
equitable basis.
It was
concentrated in large part on the
unemployed workers and the de¬
pressed farmers.
We cannot af¬
ford another depression like that.
war;

this

provides:

can

materials

and

farmers

our

know

workers

our

the foods

consume

with

familiar

in the interest of agri¬
culture and industry.
The farm¬
less

no

this

very

willing and able to work.
is

One

credit.

of

doing
made

country by

Agency, in conjunction with in¬ acute
shortage of housing and the
dustry representatives, will prO<^ likelihood that it
may be a long
vide an information and advisory
time before enough houses can be

opportunity to work the plasterers, the paint manufac¬
It also to any prospective home buyer
basis of the inalien-^ turers, and millWorkers.
of
whether
Federal
able and God-given rights of life, opens up jobs for railroad men regardless
in
and truck drivers, for delivery- assistance
financing is
in¬
liberty and the pursuit of happi¬
volved.
men and retail clerks, for teachers
ness.
Now, obviously, all these steps
and
people in scores of other
; There
is no class or sectional
involve
specific actions on the
interest in this Bill.
It is truly types of work.
Recognizing this, the Govern¬ part of Government, but they also
a
national
Bill to promote the
ment has set up a six-point pro¬ involve specific and constant co¬
general welfare by protecting the
operation on the part of the in¬
national economy.
Of course, it is gram to stimulate the construction
in the interest of labor to have an industry immediately, so that as dustry and of business generally.
fast as possible we may build the J
For instance, Government at
adequate demand for our produc¬
the same time that it formulated
tion so that there will be suffi¬ new houses that people must have.
this program took a specific ac¬
I
am
sure
you
are
already
cient jobs for all men and women
the

sion

and

expand produc¬
houses built the

sooner.we

and

sooner

throughout the country are aware
of the dangers inherent in a lax
credit policy.
They are interested
in
protecting
their
own
longrange interests and those of their

demand.//;;:;-:/^

society the
is

tion

I speak for the President of the
States when I tell you

United

scarce

items

eontrol.

I believe that the price control

of OPA is necessary for
present in holding the line
against inflation.
program

the

P Continuation

of the OPA pro*
gram to maintain the lid on rents
alsoduring the critical period
ahead is of equal importance to
the people who rent houses and
the people who build them.
If
rents
go
out of control, it in¬
creases

the likelihood of specula¬

tion
in housing,
good for business

and

that

or anyone

,

103&% of the

principal amount thereof and accrued interest to

said redemption date, all of its First and Refunding Mortgage Bonds,
354% Series Due 1962, outstanding under the Indenture; and

'

,%■.;///

at

106'A% of the

principal amount thereof and accrued interest to
date, all of its First Mortgage Bonds, 3% Series/
outstanding under the Indenture,
; ;
V

said redemption
Due 1970,

•

Upon presentation and Surrender of said Bonds at the Corporate Trust
Department of Irving Trust Company, One Wall Street, Borough of Man-;
hattan, New York 15, N. Y., on or after said redemption date, together
with, in the case of coupon Bonds, all coupons thereto appertaining, matur¬
ing after said redemption date, said Bonds will be paid and redeemed;

*

Registered Bonds without coupons

or coupon

Bonds registered

as to

principal must be duly assigned in blank, or accompanied by proper
,

instrument

of assignment in blank.

>;

;

»

After December 1* 1945, the Bonds shall cease to bear interest,
coupons

for interest, if

any,

and the

maturing subsequent thereto shall be void.

THE DAYTON POWER AND LIGHT COMPANY
By: FRANK M.TAIT, President
Dated: New York, N. Y., November 1,1945

isn't

else.

controls : also
Full Employment P Credit
can
be
legislation as the basic frame¬ vitally helpful in holding down
work upon which a large share of speculation in housing.
We are
our
efforts to solve the central working now on a program of co¬
problem of full production and operation between the Govern¬
full employment must rest.
He is ment and the financial institutions
most anxious that the legislation
which would help reduce the dan¬
be enacted at the earliest possible gers of inflation in this field.
We
moment.
'
feel
sure
that ; business
men

that he regards

at

Notice of Immediate

Payment

Holders of the above-mentioned Bonds may immediately obtain the full

redemption price thereof, including premium and accrued interest to
December 1, 1945, by surrendering such Bonds in the manner abovementioned to Irving Trust Company at its said office.

THE DAYTON POWER AND LIGHT COMPANY
By: FRANK.M. TAIT, President
Dated: New York, N.

Y.f November 1, 1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

,2228

Thursday, November 8, 1945

retail competition.

I cannot. The

made

which

factors

some

manu¬

facturers, wholesalers, and retail¬

(Continued from page 2204)
5
return from the service,

women

and

in

jobs

as

get

plants

war

scarce, we may expect the number
of small stores to grow rapidly.
,.

!

foregoing

the

All

;

facts—and

there are still others which could

Expansion of Existing Retail
Firms

.

.

Many existing retail organiza¬

tions will

grow.
Probably there
chain systems but havz

few

are

sale

whole¬

operations of such firms

as

for

expansion

10-50%

a

within the next 5-10 years.
The
statement
of
the
President of

Franklin

Simon

will

willing to make a flat predic¬
tion; while such cooperatives have
not yet reached the peak of their
growth—in fact, because they now
do such a small part of our total
retail business, their percentage

chains.

wholesale

cently formed

While the

re¬

Consolidated Groc¬

Corporation—which,

wholesale food firm in

the

coun¬

growth

its activities—and this statement ap¬
plies to large scale retailers as
Arnold well as small retailers. Even now

open

Long

Island,

and

Constable & Co. is planning an.
undisclosed number of such units.2

We

y.

tion

continua¬

may also expect a
of

the

for

trend

existing

firms to join hands.; This trend is
indicated by
the
recent Schiff

Co.-A. S. Beck merger, Henry C.
Lytton and Company's (Chicago)
purchase of Young-Quinlan Co.
(Minneapolis), Federated Depart¬
ment Stores'
purchase of Foley
Brothers
Dry
Goods Company
(Houston), R. H. Macy's acquisi¬
tion

of

O'Connor

Moffatt

witnessing the formation of
buying offices,
for example, the Independent De¬
partment Stores Association, Inc.,
store-owned

new

which

will

of the

stores

twenty-five

serve

midwest.9

And

we

consumers'

tives make out in

coopera¬

of
expanding
retail
facilities?
I
TCcognize that there are many
people who believe that the era
of

the

consumers'

cooperative

is

here—that the coop will soon de¬

velop into

major form of whole¬
retailing. 3 As Harold
Green, writing in "Printers'
Ink," puts it: "The cooperatives in
this country seem to be on the
saling

a

and

E.

threshold of

unprecedented de¬
Furthermore, I rec-r

an

velopment."4
ognize there is much evidence to
support this conclusion.
For ex¬
ample, some of our labor unions
are taking an interest in
promot¬
ing cooperatives. ■>. Many people
)re
being educated to
cooper¬
ative

buying

i.e.,

the

addition 'of new
recognize
that I am probably voicing a mi¬
nority
opinion.
Many
people
think that the rapid expansion of

the last two de¬

over

cades has been

as

peacetime production is

resumed.

I doubt it.

tion of the

The evolu¬

modern

drug and to¬
bacco stores, the addition of hand¬
bags, gloves, hosiery and so on in
the shoe store, and the women's
department in the men's clothing
store, pre-date World War II by
many years.
As recently as 1940
but 16% of the D. A. Schulte
stores sold general merchandise
in

addition

to tobacco products.
1943, however, 85% handled
many kinds of general merchan¬
dise.
Compared with 1940, their

By

sales

of watches

and

strikingly upward
having dou¬
Moreover, in
Chicago we are now witnessing
;he first attempt of a cooperative
corporation to develop a large—with dollar volume

'

its

will result in

/cale
one

cooperative

of

even

1937.5

food

chain

our

major cities.®

more

important,

some

co¬

operative leaders in this country

are

becoming

British

aware of

cooperative

something

leaders

have

Some

tig known; that "the ideological
t

be

>ility

unduly stressed; the
of

jvell-defined
ways

been

pos-

distribution

mass

of

commodities has al¬
the

basis

cooperative success,

of

just

modern

it

as

is

She basis of the chain and the de¬
partment store."?

rative leaders

In

now

brief,

coop-

know that to

jucceed their merchandising methds

to

the

more

of

consumer

it

Wholesale

At the wholesale level the

assured.

Already Butler Brothers
expanding its cooperation with

retailers
ware,

for

into

new

fields—hard¬

example—while

vast

expansion

their
agency outlets.
Through such co¬
operative arrangements, the small
independent retailer's competitive
position is substantially improved;
it will be improved even more as
plans

for

—aid the retailer to become
ter merchant.

their stores,

»re

merchandising

and

attractive

in

manner.

•ft




a

Gam-

ble-Skogomo, Western Auto Sup¬
ply arid others have announced

tore fronts

for

con¬

and Walgreen agency types, of co¬
operation among middlemehseems

these

package

the

Developments

must
be improved.
Conseuentlyrthey are making plans to
dopt more aggressive advertising
policies^ to secure more uniform
*

in

tinued growth of the I.G.A., Butler
Brothers
and
Gamble-Skogmo,

is

pulse behind cooperation should

convenience

future.,

in

What is

show

that

such

have

branches

provided

and

many

more aggres¬
sive selling at the wholesale level.
As competition is intensified, other

manufacturers will seek these ad-

experience.

Hence, I expect (1) a further ex¬
tension of price maintenance, (2)
the growth of other competitionlimiting practices, and (3) strong¬
er trade associations to play a part
in

enforcing these practices.

As postwar competition reduces

gross margin and

failures in¬

as

groups

extend

more

ac¬

counting aid to their retail mem¬
bers, increase the use of store su¬

pervisors, and—in still other

: r
-i

:As. 9

ways

a

bet¬

« ->

we

of

expect

pre-war

the

the

may

In the years

the

war

immediately before

there developed what be¬

known

came

the

as

consumer

movement

movement

—

sought

provide the

anti-trust

Great

case

Atlantic

Company
Danville,
means

with

the

a

this

to

drive

the

for

"little

While the small business

fellow."
man

may

took

movement

Some

forms.

tory

so

labeling

grade

went

far

various

,

demanded

and

demand

to

as

manda¬

few

a
a

Fed¬

„.s

Price Maintenance. I would like
to

pay

my

respects to

maintenance laws.

try

our

In this

price
coun¬

experiences with such
a relatively few
years.
Consequently, while pre¬
liminary studies indicate that by
limiting price competition they
result in higher prices, final con¬
our

laws is limited to

clusions cannot yet be drawn.12

But Britain has had long ex¬
perience, with this type of price
fixing.14
This experience points
to the definite conclusion that, if
we
continue to recognize resale
price maintenance, we will soon
find other techniques of limiting
competition at the retail level will
also appear.
For example, the
same

retail

trade

associations

which have fostered price main¬
tenance

in

Britain

have fostered

the practice of distance limits, un¬
der which manufacturers will not

supply new stores opening within
a
given distance of an existing
store. - The use of such techniques,
as well
as successful price main¬
tenance itself, presupposes strong
trade associations which will play
an

important part in enforcement.

Such

trade associations have de¬

veloped in Britain.
I would ex¬
pect
them
to
develop
in
this
country..
V
1: - ,i

predict a reversal
of this trend toward limitations on

c

;

>

»„

make out, the

great majority of distribution peo¬
ple look for great' expansion of
marketing research in the years
just $head. They emphasize that
company presidents are becoming
increasingly marketing - minded.
Moreover, they point to the large
amounts spent on production re¬
on

marketing research (about a 50-1
ratio), with the inference that the
difference gives some indication
of the forthcoming possibilities of
expansion in marketing research.
as

research

firms in

manufacturers

and

middlemen to

what

The great majority, how¬
ever, were willing to settle for (1)
more careful
testing of products
by manufacturer, wholesaler, and
retailer,
(2)
informative labels,
(3) more factual advertising, and
(4) better trained salespeople who
might be of aid to the consumer in
selecting merchandise.
Writing in the spring of 1940, I
said: "The present strength of the
consumer

movement

the next decade will
in

achieving

suggests that
see

progress

of its aims

some

.

factual

more

advertising, more in¬
labeling and perhaps
required grade labeling

formational

likely."15 It seems to me
that the trend is still strong in the
direction;

same

perhaps

it

has

been accentuated by the war.

even

More manufacturers than

be¬

ever

fore have been educated in pro¬
ducing to exact specification.
It
is but a short step from produce

ing for government specification
to

groups
will not use more
factual sales presentations to pass

information

on

to

potential

cus¬

wish
to
buy,
they wish to buy it, at
prices and in what quanti¬
ties. But I do want to emphasize
the absurdity of the foregoing in¬
what

ference.

as an

doing this, voluntary
grade labeling sometimes accom¬
panied by informational labeling
continues to make progress. Ap¬
parently many of the large buy¬
ing organizations intend to in¬
their

use

time

it

mandatory

of this aid to bet¬

buying.

consumer

one

seemed

While

to

me

at

that

grading
might meet a real need, further
experience on my part with gov¬
ernment operation forces me to
change my mind.
In practice, I
think the consumer will gain more
from the labeling which is devel¬
oping naturally under competi¬
government

While the

consumer

will benefit

from all of these trends—specifi¬
cation buying by large organiza¬
tions based

on

studies of

consumer

informative

labeling, and
voluntary grade labeling — the
most important advance will con¬
tinue to come in the steady im¬
provement of products fostered by
manufacturers striving to keep up
with
the
competitive
parade.
Daily we read of large sums being
invested
by * manufacturers ; in
product research.
The words of
Charles
E. Wilson, President of
wants,

General Electric Company, are but

typical

of

those

business

of

hundreds

leaders.

"We

of

company

that its expenditure on the

soever

latter is too low.

is

ison

no

Such

percentage of

because

a

a

valid

more

statement that

compar¬

than

the

greater
firm's dollar goes
a

to labor than to top management,
the latter is underpaid. The only

significant test is: Is the firm
spending enough to do the mar¬
keting research, job it should be
doing?
The quicker distribution
people adopt this point of view
and stop drawing invalid infer¬
ences, the more rapidly they will
gain the respect of top manage¬
T

ment.

It is my best guess

that, while
marketing research activities
of private firms will continue to
expand,'no startling growth is to
be
expected.
Already there is
the

statistical

some

evidence

to

sup¬

port this point of view. Of 75 na¬
tional advertising firms who were
asked what they intended to do
with marketing research in the
post-war years, but 15 indicated
any substantial expansion,1?
As
the tax situation changes so that
can

not be done on

the 10c

dollar,

15 may

change their minds.

even soma of these

Conclusion
One

last

word—which

is

a

word of

hope rather than one of
prediction. Bitter experience dur¬
ing the past twenty years makes
it crystal clear that a regulated
with restrictions

economy

individual

ished a

on

the

dictatorship

and

hand in hand.

go

We have just fin¬

to

achieve, in Presi¬
dent Truman's words, "a victory
of liberty over tyranny," which
it seems to me, means a victory
of a competitive over a
highly
regulated economy. If we mean
war'

to retain the fruits of this

victory,

the real job ahead of you and me
is to make our competitive econ¬

function to its fullest possible
If we do not, then a reg¬
ulated economy with its inevi¬
table dictatorship will still come
to this country, even if it is not
imposed upon us by the-Nazis. Let
us
not get so immersed in our
daily jobs in marketing that we
overlook this significant fact.

ia.our

extent.

-1

1945,
3

H.

Economy, of

Survey

of

the

Current

Third

Year

Business,

of

Feb.

pp.-18-19.
R.

Bowen,

"Significance

of

Recent

Chances

in -the Business- Population," The
of Marketing, July, 1945, p; 25.
I 3 Printers'
Ink, May
25/ 1945, p.
82;
June 29, 1945, p.
80.v-' -;V
-

Journal

4

Cf. his "Consumer Cooperative
Growth
Challenges Profit Business,? Printers' Ink,
Dec. 29, 1944, p. 17.
/
.

/

history.in research

"The

War,"

are

prepared to invest more than ever
before

a

production re^
search
than
on
marketing
re¬
search gives no indication what¬
on

omy

tion.

other

because

more

aid to price con¬

vented from

ter

Just

spends

such research

The war brought the matter of
mandatory grade labeling into the
open, since OPA wished to use

crease

consumers

where

trol. While that agency was pre¬

of price
'

can

out

public.

cost

other type

I

as

hand

such labels

some

near

determine—among other things—

Department
to
"best buy" lists to the

maintenance laws and sale-below-

I wish I could

Ji

Marketing- Research
As

Consumer

tomers.

or

greatest

advance.

eral

again seek the aid of more and
higher discriminatory chain store
taxes,
even
large organizations
will seek refuge in resale price

floor legislation.

consumer's

the

minimizing the need for more
on the part of individual
solving their distribution
problems. Such research, I be¬
lieve, is greatly needed to help

she wished to buy.

products

Such

at

aid

that

will find its

I do not want to be understood

be

the
Tea

being

information concerning

more

This

which

no

against
Pacific

now
being heard
Illinois.
And
by

will

confined

and

channel

consumer

to

producing consumer goods ac¬
cording to specifications laid down
by large wholesaler and retailer
groups—which base their specifi¬
cations upon studies of the mer¬
chandise desired by their custom¬
ers.
It seems quite unlikely that
after
buying
on
specifications,

•

,combating the
-jPjt-i.l
*.

crease

this
well

search and the small amounts
Movement

Consumer

even more

additional aids.

had

clocks

articles

bled

since

to

lapse

re¬

139%, leather goods and smokers'
400%, and men's toiletries
and sundries 45%.11 Although this,
type
of
expansion
results
in
greater administrative problems,
its effect on operating costs, and

/ales trend

going direct to retailers. There is
new available enough experience

in business."12 Already we see the
forerunner of this development in

place in

years is largely a result of
wartime shortages and will col¬

increased 182%, men's furnishings

the

whole¬

salesmen

cent

lines which has taken

suc¬

through

coperative

own

of

a renewal
drive for legisla¬
tion to protect those who find the
going "tough."
In other words,
various groups will attempt to be¬
come "effective in
politics to the
degree that they lose effectiveness

In saying this I

purchasng
by farmers marketing co¬
operatives.
Although total sales
ire
still small, the cooperative

of

cess

and

British

with

line

seem

lines.

this period

of their

fur¬

Regulations to Limit Competition

Scrambled Merchandising

dising,

will

use

branches

sale

extend

manufacturers with

Affiliated Retailers, Inc.19
organizations
with
large
buying power and the ability to
develop their own brands will
play a major role in distribution.
the

Such

the Straus and Schram furniture

Consumers' Cooperatives

ther the

will

in

We may expect the further de¬
velopment of scrambled merchan¬

How

spite of the additional cost,

salesmen

,.

so on.

In

manufacturers

large
organizations
like
Macy's and May joining together
see

(San Francisco) and the many
Spiegel purchases—including the
Sally Chain, the Beverly Shops,
chain, Federal Stores, and

sales

training programs and,
pertinently,
better
sales
training techniques."

we are

Co.

&

of

more

jobs, better working condi-/
tions, and more goods for - more
people at less cost."*® Such re¬
search must lead to better prod¬
ucts and—to repeat—it is through

cutting policy, that price mainte¬
nance—now that they have fought

by the
their way to a "place in the sun"
purchase
of
various
wholesale
—is not a bad idea.
This too is in
houses, has become the largest

ers

will not become a

fifth suburban branch in Garden

City,

price maintenance be¬
are
still present.
Moreover, I am afraid there is a
war

to the con¬ Butler Brothers, Walgreen's and
growing feeling even among, some
consumers' co¬ others, more independent whole¬ of the large marketing organiza¬
operatives in this country. But I salers will join -hands to form tions which developed on a price
be assembled—point

will be substantial—they try—is far larger than the aver¬
major factor in age group which will be formed,
retailing in the next two decades. it illustrates the trend.
Edison Brothers Stores, Inc., in Why not?
Because the evidence
Marketing by Manufacturers
his 1944 annual report is quite indicates that they cannot operate
At
the
manufacturer's
level,
for less than aggressive private
typical: - •
»
*
—
Neither can they buy for major expansion will take ;■ place
"... your company, for its post¬ firms.
in terms of the redevelopment of
war expansion
program, is now less. Finally, aggressive merchan¬
a sales staff.
The recent 1945 An¬
gearing its operations to handle an dising policies are as available to
nual Report of the American Man¬
annual sales volume of no less private firms — and
perhaps I
than $75,000,000 (68% in excess of should say, are more available to agement Association puts the mat¬
ter well:
1944 sales of $44.5 millions) and private firms—than to
coopera¬
And these three factors—
"Perhaps the marketing execu¬
has already consummated leases tives.
for twenty new additional units, operating cost, buying advantage, tive's greatest problem
will be
most of which will be major in and
merchandising policies—are that of revitalizing sales forces
that have become steeped in atti¬
the major factors in determining
Expansion will also come as de¬ the growth of any kind of whole¬ tudes foreign to that of selling.
The sales staffs
of many com¬
partment stores continue to de¬ sale or retail institution.®
panies are depleted; a sizable re¬
velop units in suburban areas.
Buying Groups
cruiting job will be required. The
Already, among many others, Lord
I look for retailers to cooperate task
of
and Taylor has announced plans
reactivating
the
sales
for
12
new
suburban
units; more in group buying and related force will require intensification
plans

favor

ers

fore* the

tinued growth 61
am

/

chain store and the large

that it will insure for tomorrow

so

more

sibid.
«

p.

..

'...-v

Women's

l.
5 Hermann

Wear

v

DailyJuly:

26,

1945,

•'y,

Levy,. Retail

Trade

Associa*

Volume 162^

*

COMMERCIAL

THE

Number 4436

& FINANCIAL CHRONICLE

i*

*

■:SVy:
a i

l:M'k

|

(Continuedfrom firstpage)
with

and

the

-

determination

to

their differences in their
long range interest,, it: will

'compose
own

be

refusal

the other fellow's point of

see

view have

and

a

ar¬

place in these meet-

no

be long before we have put
industrial strife behind us. La¬
not

bor is the
ment

Nation Is Concerned

best customer manage¬

Our

has; and management is the

worried about

is

country

relations.

It

has

right

a

^source of labor's; livelihood. Both

our

;are wholly dependent on each
other; and the country in turn is
dependent on both of them."

to

halls of the Congress in the

This conference has been called

to*

provide

a nationwide opportu¬

nity to
fullfill that objective.
-Representatives of labor and management are meeting. here at this
conference table, to discuss their
common problems, and do settle
differences ip the public interest.

-

-

thel

form
of lall kinds of proposed legisla-i
tion,/ You have it in your .power
to;

stop that worry. I have su¬
preme confidence in "your ability*
to find a democratic way to com¬

industrial difficulties.

pose

*"

.

That worry is reflected in

be.

Under the patriotic, pressure of

desperate war crisis, manage¬
ment and labor have performed a

a

miracle

democratic

process

turned

here

in

the; expectation

that you will furnish a

broad and

permanent foundation for indus¬
trial peace and progress.

Not
I

Government

a

want

is

this

make

to

your

Conference
it

that

clear

conference—a man¬

agement-labor

conference

'

—

and

not a Government conference. You

have

not

chosen

been

by

me

or

Government official. You
have been selected by* the lead¬
ing labor and industrial organi¬
by

any

in

zations

<

has

There

the

States.

United

been

interference

no

have

already

gone.

the first

soon as

ones

And yet as
were taken

off, industrial strife appeared.
Some of it was expected by the
American people in this period
of adjustment. But I am sure that
they never expected anything like
the amount of strife which has
been threatened. And I know that

the American people do not like
it—especially after the solemn

promise by representatives of both
management and labor that they
would co-operate with their Gov¬
ernment through the reconversion
period.
,

I make no
effort to fix the
by Government in that selection.
By the very nature of the task blame. I have tried to lay fairly
before the people the position of
'before you, you appear here not
labor and the
position of in¬
as representatives merely of the
organizations .which chose you; dustry. They both have problems
but as .public ? spirited citizens, —grave and worrisome problems.
who during the deliberations will But they are not insoluble prob¬
consider the interests of all groups lems. Essentially they are prob¬
of our people. Bach of you is now lems of adjustment tp the drastic
changes brought about by three
a member of the team, which the
American people hope will rec¬ and a half years of war.'

ommend. definite

in

the

relations.

We

policy

industrial

field of
must

begin with the firm real¬
ization that every citizen in our
nation has an identity of interest
and

great stake in. the main¬
tenance of industrial peace .and
in the development of mature and
effective ways of achieving it.
a

time

The

has

come

labor

for

and management to handle their
own
affairs in the
traditional,
way. I hope
give tip the President's

Solution Essential

important thing is to re¬
member
that
those problems—

to

can

wartime

powers

as

soon

pos¬

as

management and
labor can again have the full and
undivided responsibility for pro¬
viding the production that we
must have to safeguard our do¬
mestic economy and our leader¬
ship in international affairs.
sible,

that

so

Government, although it
is acting as your host, has no hand
Your

the

in

direction

or

the

recom¬

mendations of this conference. It
has

no

vote.

opportunity to
prove that you can come to un¬
derstanding and agreement with¬
out
political
or
governmental
is

This

your

.

The

pressure.
conference

outcome

this

of

rests with the repre¬
of management and

until

productive capacity, we
hope to proceed toward
our goal of full employment and
an increased standard of Jiving.
cannot

If labor and

Finding the best way to ac¬
complish that result without gov¬
directive to either labor

ernment

industry—that

or

There

are

At

involved.

the

by their interest and concern, can

duces

if*

p.

27.

" /■.
detatted analysis

Houphtcn

of Jriy
the future of consumer co¬
cf.
my
Marketing,
(Boston:
Mifflin
Company, • 1938),
pp.

512-23.

'■

—

l*For

more

a

opinion on
operatives,

.

t

® Women's

Wear

Daily, Aug.

1945,

28,

Ink, July 27, 1945, p. 92.
D. A. Schulte, Inc.
for the year ended Oct. 31, 1943.
t ■
12 Does
Distribution
Cost
Too
Much?
w

Printer?

11 Annual Report of

York:

(New
'

1939),
is

Fair

P

e.

p.
t.

-

.

.

246.

'

Grether,

v

Price

Control

(New York:

•'

„

,

Under
Oxford

1939), p.' 316.
MJLevy, -op. cit. p. 316.
<.
is Charles F. Phillips.
"The Next Dec¬
ade in Marketing."
Annals of the American Academy of Political and Social Science, -Vol. 209, May, -1940, p_ 193.
i«:Advertisement in Wall Street Journal,
Press,

.Aug. 28; >1945. p. 3.\
' -i7 "More.'Market*
Research

*
'

WarPrinters'- Ink,- July -20,




After

49*«i p.

the

the

of

basis

table—
to

them

*,

with

and

reach

fairly i-

If that fails, if

'

an

a

agree¬

r 1

bargaining

pro¬

results, then there must
be a willingness to use some im¬
partial machinery for reaching
decisions on the basis of proven
facts
rumor

no

and
or

realities,

instead

propaganda

statements.

eliminate

That

is

of

partisan

or

the

way

to

friction.

unnecessary

That is the way to prevent lock¬
outs and strikes. That is the way
to keep

dence

in

unionism

We
not

shall

Industrial

the
as a

the

On
ment

have to find

methods

lifetime

of

once

such
made

contracts.
must

be

of

trade

jurisdictional strike.

other

JOHN

BUTTON;

ability of a
conduct himself and his sales presentation, so that he
gains the attention, respect and liking of the prospect" are outlined
and explained in a pamphlet entitled
"Getting Sales Results." This

discussion is limited specifically to the human side of selling—the
relationship between prospect and salesman. It has been prepared
by the National Securities & Research Corp. and it was written by
their

manage¬

JVice-President, Douglas Laird.

Every time
manship

we

1

;

"

;

,

/

.•

,V

something that has been written about sales¬
instinctively pick it up and read it through. Sometimes
we see

find very little that is new. But in this instance we must admit that
Mr. Laird (who has established; himself as a leading sales producer

we

in his field

of the investment trust) has presented his ideas in such
that no matter how- much you too have read about selling,
had better get hold of this little pamphlet and read it from cover

way,

you

hand,

The Human Equation in Salesmanship

*>\

.

ft^en laws of salesmanship which deal with "the
salesman to

a

to cover.

*-•;/

upon

'

<

■'

\

>

.

.

.

Here are his ten laws dealing with the human side of selling!
stepchild of
(No. 1) Work. (No. 2) Listen, (No. 3) Don't Interrupt; (No. 4) Don't
its business, to be disregarded un¬
(No. 5) Use the Question Method at the Beginning
til the controversy has reached a Be Belligerent.
of the Presentation.
(No. 6) Re-state Clearly^ in Your Own Words,1
point where real collective bar¬
the Prospect's Objections As Soon As He Gives Them. (No. 7) Con¬
gaining becomes very difficult—if
not almost impossible. It happens centrate Your Fire. (No. 8) Expect Business, (No. 9) Watch Personal
*
*
all to frequently that in the ac¬ Habits and Appearance. (No. 10) Create Confidence.,£■
tual process of collective bargain¬
How many of these laws of selling can you break and get away
ing, delaying tactics are practiced with it? Mr. Laird says that you cannot break any of them and still
with the result that there is no do a successful selling job. And yet he gives this • word of
wisdorr^
real bargaining. There can be no in the foreword of his pamphlet. "Although this material has beep
justification for stich tactics at the boiled down so as to make it possible for any new salesman to obtain
the art and science of salesmanship in a single hour's reading, it-is
present time, or in the future.
If this conference can recom¬ not possible to cover the whole field of selling in such a short article,
mend answers to the public de¬ AND NO MATTER HOW LONG ONE HAS BEEN A SALESMAN,

relations

for

mand

as

a

machinery to prevent

settle industrial disputes, it will
have made vast progress toward
or

industrial peace. It will have laid
foundation for an era of pros¬

a

perity and security.

HE

WILL

CEASE

TO

A

BE

GOOD

KNOWS IT ALL.
-We

ONE

WHEN

HE

THINKS

HE

^/i--ife:s^v.:

;

"

not going to try and take out any of the'solid nuggets
of sound advice that Mr. Laird has used to illustrate his points. If
you

are

want to get the best out of this fine -article you should write tq

the National Securities & Research Corporation and read it all for

,

The whole world now needs the

produce of our mills and factories
—everything stands ready and
primed for a great future. But

yourself.

But there

is

point that we particularly like.

one

Iri his

discussion under law number three Mr. Laird. offers this bit of saget
advice.

"Regardless of how interrupting may affect, us socially, it
is an undeniable fact that it is far too expensive a luxury for the
situations and circumstances can salesman to indulge in.- I don't care how good, a mind reader you may
change rapidly. Our unparalleled be, or how impatient you are; how1 slow the other fellow is, or how
opportunity may not long, remain quick witted you are, the fact remains that you cannot "be a good
open. We must have production— salesman unless you have sufficient patience and understanding to
vast production.
We must have let the man you hope to sell have his say out without interruption.
it soon.
It may take a lot of patience on your part BUT YOU GET PAID
>
,

FOR IT,"
Production Means
In

Employment

order to have it,

-

■.

-

•

V.-.y-

That's the point of the whole selling operation—do

labor and

management must work together

that make the other

fellow feel comfortable

in

the things

your presence.,

Be

expand the economy of our na-: considerate, give the other fellow his due, play dpwn your jmr
tion—as they worked together to portance, your wit, your smartness, DO THE THINGS THAT MAKE
protect the safety of our nation HIM FEEL IMPORTANT.
REMEMBER YOU GET PAID FOR!
during the war. If we get the pro¬
IT, IT'S YOUR BUSINESS.
J
t
/
.(
duction that we need—the pro¬
duction which our resources and
Of course Mr. IJaird doesn't imply -that empty flattery, or fawn¬
industrial skill make possible, the
ing over the next fellow, is good selling technique. ' But he" does
present problem of wages and
make his/point very clear when he says "Remember you get paid,
prices will be easier to solve.
to

.

.

.

lllfflf®!

;||||

Pro¬

duction

economic health.

means

higher
It

and

wages

It

employment.

means

It means

prices.

lower

the difference between

means

for winning an argument, but for getting the other

not necessarily

fellow to do business with

you."

certainty and depression..

the new men there is helpful and

in

this

room

;

direct

a

ference.

bit when he reads it.

Hytron Radio & Electronics Corp.
Common Stock

■

>

Prospectus oh request

The American people know

the
But
the, stakes, are enormous too. If
the people do not find the answers
here, they will find them some
place else.
For these answers
size of your task.

enormous

will

and

whole

long, long

interesting advice—for the experi¬

enced salesman, he too can brush up a

try, and lead American labor of
opinions. But you will fully suc¬
ceed only if labor and industry as
a whole will willingly accept your
decisions, and will adopt the con¬
victions developed out of this con¬

must

a

indus¬

cross-section of American

Stakes Are High

selling in

Why not get some copies for your own sales organization? For

time.

men

:

This is one of the best we've seen about

Strength and prosperity, /and un¬

be

of

system

The

found.

private

Herrick,Waddell & COm iNd
55 LIBERTY

enter¬

STREET, NEW YORK 5, N. Y.

prise and individual opportunity
depends upon finding them.
When industrial strife becomes

widespread, all of us lose the
things we need—the wages that
labor
wants, the earnings and
that

dividends

businessmen

0 ver-the- Counter

and

want, the products that

consumers

No

want.

*■!!

realist

Quotation Services

For 32

years:fe|s^;r'f-v:: ^.

expect the millennium of a
perfect no-strike, no lockout era
can.

Con¬

lived

absolutely essential to progress.

to, and should be changed only
in the manner agreed upon by the
oarties. If we expect confidence
in agreements, made, there must
up

-By

But continued production
expanding industry—un¬
hampered as far as humanly pos¬
sible by stoppages of work—are

of peaceful negotiation
of labor contracts, but also of in¬
suring industrial peace for the
only

tracts

motives

often has looked

too

labor

the

Peace

stop-j

Hits Delaying Tactics

investors

production going.

Ensure

Fund,

Century

.

Trade Legislation

University
,

Twentieth

ment

Securities Salesman9s

Labor has: a particular in¬

The

considerations

no

terest in this matter—for nothing
is so destructive of public confi¬

job.

your

all, is not only the right, but the
duty, to bargain collectively.
I
do not mean giving mere lip serv¬
ice to that abstract principle. I
mean
the
willingness on both
sides, yes, the determination, to
approach
the
bargaining
table
with an open mind, with an appreciation of what is on the other
resolve

(New York: Oxford University Press,

is

many

firm

2944).

an

ment, a way must be found of
resolving their differences with¬
out stopping production. *

labor. But—as in all other public
affairs—the outcome also rests
with the American public who,

1Hons

management, in

industry or in a company, find
that they cannot come to agree¬

of

.

successively recon¬

we

for

vert

side

sentatives

our struggle
war to peace.

from

reconvert

For

in

can

moral

no

ping production - while Tival or¬
ganizations ,' contend with
each
other.

and their solution—cannot be al¬

lowed to stop us

be

can

economic justification for

or

,,

The

American, democratic
that I

1;..

which management
rightfully have no part and

action—in its best form.

in

'Kl

labor, in

interest.- There

i '

Business

simply cannot stop, life and prop¬
erty: just cannot be endangered,
merely because of some internal
disagreement between factions of

of

production for four
years—working together volun¬
tarily but under a measure of
On this conference have been
based many high hopes of the Government control. Those con¬
trols must soon disappear. Many
American people. Their eyes are
the

is

Here

for jurisdictional strikes.

A

„V»

Some substitute must be found

that

reminder

selfishness

bitrary
to

"4

be responsibility and integrity on
both sides in carrying them out.

constant

a

at once.

and

1

an

That

is the

home .and

to

cannot fail in

forward

on

road to security at
peace
our

abroad.

We

efforts to move

that road.

NATIONAL QUOTATION BUREAU, Inc.

;

'

'

*

*

-

-

V

Chicago

v

*"

'

Established 1913

-

-

;

• •

••

46 Front Street, New York 4, N. Y.
^•

".San Francisco

Thursday, November 8, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

2230*

vent

.Discussed

Construction Costs and House Price Controls
(Continued from page 2208)
price ceilings for materials and
services) plus a generous profit
margin to the builder or devel¬
oper.
"In

legislation
to remove uncertainties and to
encourage builders to start con¬
struction/immediately it should
such

for

order

he wishes,

permit the builder, if

get an approved ceiling price
before he starts to build.
On the
to

by segments of the construction in¬
relating his findings on the oper¬ dustry in attacking problems.
ations of the "6-Point Program,"
dle

to

wishes

1945.

18,

Sept.

previous
issues of the Bulletin, but should
be restated in the light of recent
discussed in

been

based

the highest earnings of

on

in

industry

the

be

should

profits

production,

recent

prewar

"In order to insure

limited to

legislation is

this

of

that the use

needs, it is recommended
that the law be only permissive
and that ceilings be put into ef¬
actual

fect, not nationally, but only in
those areas where a finding of
is war¬

facts indicates that action

ranted."

•

,

the
legislation should extend through
{1947, Mr. Bowles said* A copy of
The

proposed

draft of this

the

powers

of

proposed legis¬

inter-agency action
active campaign to increase the

1. Through
an

strengthening inventory controls
to prevent hoarding of building
materials so that building will not
delayed by artificially created
shortages.
be

Administer Proposed
Program? And How?

5:

Members

of the subcommittee

jVvere not able to pin down, in
cross-examination

their

of

(1) statistical foundation
establishing need for such legis¬
lation; (2) whether the plan was
|he proposal of a sub-committee
of the over-all Construction Ad¬
visory Committee or whether it
had; the complete group's ap¬
proval; (3) whether the advice of

industry as a
whole had been sought in formu¬

[the-construction

lating such a policy, or (4) what
delays and difficulties might arise
in

of

administration

the

such

a

program.
_

Mr. Bowles frankly stated that

he did not want the administra¬
tion

of

the

plan

suggested
Blandford, NHA
Administrator, would be the log¬
ical man to have it.
In subse¬

that

John

and

B.

quent testimony, Mr. Blandford
side-stepped this suggestion by
referring to OPA as handling the
complete
p r i ci n g
program.
OWMR
Director
Snyder,
who
went on the stand before Mr.
Bowles,

stated

that he had not
seen the
proposed house-pricing
legislation and would have to be
Sure such a plan would not inter¬
fere with production before he
could endorse it.
Mr.

Snyder steered

a

safe mid¬




how

assured when WPB

personnel in the field was down
to a skeleton and would pass out
the

of

time

completely

picture

under

Inventories

3.

Nov.

pressures

tible to

not

were

on

war¬

suscep¬

satisfactory control—with
down now, hoarding of

bars

would

materials

doubtedly

difficulties

un¬

Snyder

Mr.

increase.

admitted the

said

but

that

CPA, successor agency to
WPB, would do everything in its
power to maintain checks.

Mr.

Bowles,

asked

subcommittee

The

this could be

critical

Will

necessary

The War Production Board is

is

[Who

grant

made.

been

the

,

to

price and wage increases to stim¬
ulate production and to attract
labor into key operations had also

lation; as submitted for the record,

given further below.

regard¬

buyer

and

of

member

a

The Office of Price Adminis¬

3.

Electrical Contractors Association,

that

stated

and-cents

effort

an

to include all
materials and serv¬

ceilings

construction

clude

all

construction

and

services

into

effect

and

district

and

as

materials

which

rapidly

offices

as

can

will

go

excessive

and

unsound

lending on mortgages. They will
enlist
voluntary cooperation of
banks

and

other lending

institu¬

Readjustment Di¬
vision of the Army, the Surplus
Property Divisions of both Com¬
merce

and Reconstruction Finance

Mr. John

D.

Small, WPB Chief
of Staff, gave a most concise pic¬
ture
of materials shortages and
emphasized
a
point—somewhat
neglected in
other testimony—
that manpower is the all-impor¬
tant consideration in stepping-up
production of construction mate¬
rials.
The shortages that- we have
—brick, clay products of all kinds,
sewer
pipes,
foundry
products
such as cast-iron soil pipe, and
lumber—are all in relatively lowpaid industry. Wage adjustments
must be given in some cases, price
adjustments in others in order to

provide incentive for the recruit¬
of

ment

opinion,

In

labor.
progress

but admits it is a
In

to

Regulation of credit mechan¬
isms, Mr. Snyder pointed out, can
only reduce and not solve the in¬

flationary problem.
main

is

reasons

One
that

of

the
vast

a

amount of potential purchasing
powef would remain beyond the
reach of such controls, in
the
hands of private lenders, commer¬
cial and savings banks and insur¬
ance
are

companies.
further

is being made,
tough- job.

question on pos¬
Mr.
Small stated that Army fs not now
buying lumber and is shifting its
answer

a

sible Army lumber surpluses,

that

purchases
means

of

of

homes

attacking

a useful
inflationary

as

pressures.

5.

Representatives of industry
including
real
estate,

groups,

building suppliesand construction
men,

have been called to meet in

Washington next month to map
out a voluntary program to in¬
crease

quickly the

production of

all materials and facilities needed

for
tion

an

expanded home-construc¬
and also to help
building costs and
estate prices.

industry

fight inflated
real

The

subcommittee

urged more
voluntary cooperation of this sort
and

closer

consultation

with
w

'

«

all
■

*

are

un¬

plans for controlling prices of new
existing homes.

and

W.

Frank

Mr.

Cortright. Exec¬
of the Na¬

Vice-President

utive

tional Association of Home Build¬

that
the
answer
to
in housing is production

said

ers,

inflation
of the

largest possible volume of
housing.
Public knowledge
an
unrestricted building pro¬

new

of

of the

Act

are

pro¬

longer

no

to deal with the existing
emergency,
whichever

The provisions

of this Act

be applicable to

the United

(c)

fill

will

probably be in dqnnage or
crating
lumber,
unsuitable
for
utilization in construction.
This
information
was
confirmed
by
tor of

There

is

no

time

for

grass

to

under the feet of this broad
continuing program. Day-to¬
day developments make it neces¬
sary to keep the facts on record.
One suggestion was made for an
over-all
Government
Industry
grow

and

Committee to act on
and construction prob¬

Advisory
building

The Senate Small Business

lems.

represented in building and con¬

struction;—will hold further hear¬
ings

of

interested

Reconstruction

and

Finance

Corporation testified that
existing surpluses in construction
materials thus far declared were
not in any amount to have a fa¬
vorable effect

on

the

the

of

statement

Lambert, Jr., retail lumber dealer
of St. Paul, Minnesota, Estimating
lumber
reach

production

30

in

board

billion

sible

1946

and

the

estimate

one house at 10,000 feet
lumber, you would get a foot¬
age
of 5 billion, which is only

needs for
of

one-sixth

in

duced
year,

what

of

the

will

United

be

the

before

mony

testi¬

his

subcommittee,

Mr. Bowles submitted the follow¬

of proposed legislation
by the Office of

ing draft

feet.

figure on
in

13-B,
Wash¬

recommended

500,000 as an outside
house construction pos¬

the

Administration

prices

of

new

to

control

existing

and

houses:

in

or

a

manner

this Act, he may by regulation or
establish
maximum
sales

order

prices

for

housing

accommoda¬

tions in

accordance with the pro¬

visions

of

Act.

this

such

Any

regulation

or order may be lim¬
ited in its scope to such geograph¬
ical area or areas and
to such

classifications of housing
as
in the judg¬

or

ment

of

the

of this Act.

poses
any

President

effectuate

to

necessary

regulation

may

the

be

purr

Before issuing
order under this

or

section, the President shall, so far
as practicable, advise and consult
with representative members of
industries affected by such regu¬
lation

or

order, and he shall give

consideration

dations

and

their

to

to

recommen¬

recommenda¬

any

tions which may be made by State
and local officials concerned with

housing
affected

conditions in any area
by
such regulation or

order.

Any

(b)

regulation

order

or

issued under the authority of this
Act establishing maximum sales

prices

housing

for

accommoda¬

tions the construction of which is

completed after the effective date
this Act shall provide for the
fixing of a maximum sales price
consisting of (i) the actual costs
of

the

construction

which

not

are

in

of

unit

the

excess

of

legal maximum prices of the

the
ma¬

terials and services entering
such
construction, (ii) the

into
fair
with

in

housing
event

no

accommodation,
less

than

the

but

actual

cost of land purchased

prior to the
effective date of this Act, and
(iii) a margin of profit reflecting
the generally prevailing margin
of profit upon comparable
during the calendar year

units

1941.

basis of estimated costs the pros¬

1

pective

to

speculation

prevent

realization

Section
this

of

excessive

(a). The purposes of
are:
To
stabilize the

Act

prices of real estate to be used for
housing purposes and to prevent

Representatives of the construe*

extent

an

Applicability

Bill

the

profits in the sale of housing and
to insure the availability of real
estate for housing purposes at fair
and reasonable prices.

Mr. Lambert said.

(

to

inconsistent with the purposes of

Purposes: Time-Limit:

A

and

pro¬

Controls

the

Any prospective,. seller of such
housing accommodations may ap¬
ply for the establishment of a
maximum sales price at any time,
including before the commence¬
ment of construction, during its
progress, or after its completion.
In any case where a maximum
sales price has been fixed on a

States next

Industry Protests Further

rise

the

with

connection

In

Price

Million at¬

President

market value of the land sold

Committee,
Room
Office
Building,

1946

tained in 1942 and 28 billion pro¬
duced in 1945.

Taking

Requests should be ad¬

supply.

ington, D. C.

Leonard

the

of

will be available in limited

nesses

Senate

Goods

Completely reversing the gloomy
outlook
on
the lumber
supply
the

construction

the

in

copies of the hearings
giving the full testimony of wit¬

ness

Produce

of

sales prices of housing accommo¬
dations have risen or threaten to

the

dressed to the Senate Small Busi¬

supply.

Lumber Industry Says It Can

that

as

program.
Printed

Divisions

Property

was

problems

these

on

ing reports. The Committee wel¬
comes any comments and sugges¬
tions from the industry or others

the Sur¬

;

accommodations

Army's Readjustment Divi¬

Representatives from

judgment

Prices

(d). Whenever in the

types

will do much to reverse the
inflation, Mr.
Cortright said.

needs arise and will issue continu¬

sion.

Housing
Section 2

gram

Hausemdn, Direc¬

Gen. David N;

bia.

recent trend towards

protect the interests of small and
individual enterprises—so heavily

complicated

••
loans.
The
subcommittee
wishes to study further the possir
bility of credit regulation on the

Council

alterably opposed to any and all

Committee, whose business it is to

to

heeds.

The Chamber and

Producers

If

around

no

for

the

of

date is the earlier.

con¬

surpluses occur in the future, they

stock

Credit controls

by the
single yardstick of
value is used by bank examiners
in making appraisals as a basis

fact

Small's

Mr.

existing

by

attainment

that

the

This compares with 36

-

visions

necessary

possible and to protect

as

trols of prices.

will

demand.

large volume of construction as

quickly

Corporation and the War Produc¬

inflated

prices

a

tion Board.

tions to minimize

the danger of
due to excessive

Houses

States, its territories and posses¬
sions, and the District of Colum¬

from the

prices.

courage

repre¬

two

Congress, declaring that'the

national

Whitlock,

Douglas

resolu¬

concurrent

a

Commerce, stated that his organi¬
zations' No. 1 objective was to get

in

called

subcommittee

nesses

regional
the

The Federal Credit Agencies
will do everything possible to dis¬

Mr.

thereunder, shall terminate
31,1947, or upon the date

Dec.

specified in
tion by the

wit¬

the

post

4.

con¬

The provisions of this Act,
regulations and
orders

all

issued
on

econ¬

shall

plus

only to
dollars-and-cents ceilings which
will be extended by OPA to in¬

down

boil

and

orderly

peacetime
v
" 1

senting the Producers Council and
the
United States
Chamber of

Commerce

referred

to

impossible for

a

flicting testimony on materials
shortages and possible surpluses,

counteract inflationary pressures.

Snyder

dollars-

of

extension

him to operate.

financing is involved.

tration will strengthen price con¬
trol
over
building materials to

Mr.

National

the

ices would make it

In

Construction Program

2.
-

home

to any

Souder, electrical
contractor of Washington, D. C.,

swift and

a

to

omy.

(b)

T.

L.

promote

transition

to Mr. Farr.

in

mendations

order to assure maximum

"In

values available

home

prospective

the 6-Point

Developments in

supply of scarce building mate¬
rials
is
being undertaken and,
posed ceiling price for checking
where necessary, price and wage
and approval by the appropriate
increases and priorities to break
Government agency while he pro¬
bottlenecks are being granted.
ceeds Immediately with his build¬
Mr.
Snyder
said
the
Intering. In either case he should have
an opportunity to adjust the ceil¬
Agency Construction Committee
ing prices after the building is set up in his office had taken
completed if unforeseen circum¬ steps, in the ease of short mate¬
rials production, to help producers
stances have so raised his costs
that his profit would be endan¬ obtain equipment to increase or
gered under the ceiling originally get back into production. Recom¬
set.

conjunction
with
industry
representatives, will provide an
information and advisory service
on

a

Mr.

in

to

facing
physical impossibility, according

ceed ceilings, he would be

less of whether Federal assistance

developments:

if to save time he
start building without

waiting for a ceiling price to be
set, he should be privileged to
submit his cost estimates and pro¬

revoked on
The six points

Supply Picture

6. The National Housing Agency,

Construction Limita¬

WPB

have

Materials

him,

by

tion Order L-41 was

hand,

other

testimony

announced

originally
when

his

in

course

post-emergency collapse
housing field and

a

of values in the

speculative, unwarranted and ab¬

tidn industry, including builders,

normal

ther

prohibit

increases

in

the

before

seller may,
first sale

the

any, time
and upon

at

showing that the actual legal costs
substantially exceeded the

have

estimated
revision

costs,
of

the

for

such

maximum

apply

sales

selling
realtors, contractors and mortgage prices of such re.al estate; to price as may be justified under
lenders all expressed their wil¬ eliminate and prevent profiteering the circumstances; and the Pres¬
lingness to go along with OPA's in the sale of real estate, the ident may similarly reduce the
existing controls on materials and hoarding of materials necessary maximum sales price if the esti¬
mated costs were substantially in
services through the formula type
for the construction of housing
of regulation.
They were unani¬ and other buildings and other excess of the actual legal cost?.
No
subsequent
sale > of
such
mous in their protests against (1)
disruptive practices; to encourage
expansion
of
dollars-and-cents the production of housing at a fair newly constructed housing ac¬
commodation shall be at a higher
prioe ceilings on all materials and profit; to improve the housing of
price than that established for thte
services and (2) any attempt to the
people of the nation in order
control prices on new or existing to foster their health and general first sale.
houses.
(c) Any. regulation or order
welfare; to encourage employment
Mr.
Newton
Farr,
Chicago in the housing construction indus¬ issued under the authority of this
Act establishing maximum sales
builder, said that he would not try and to maintain such industry
prices for housing accommoda¬
build if he were faced with fur¬ at a high level of productivity; to

'f red

tape
and; delaying
OPA. • A builder

an

undue dissipation of

may

savings of the people in the
nation in-the purchase of homes

a

at

mechanism

by

employ 20 subcontractors on
construction job and if he has to

certify that each material used by
each

subcontractor
I

MX

does

not

ex¬
»

A

the

speculative

returning

prices;

veterans

to permit
to
acquire

housing: at-fair^pripes; ahd^ to pre^

tions in existence

date

of

this

date

of

this

Act

on

the effective

Act

shall, except as
hereinafter set forth, provide that
the price of the first bona-fide
voluntary sale after the effective
shall

thereafter

Volume 162
be

the

such

maximum

unit.

sales

price for
regulation 5 or

Any

;

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4436

-

order under this section shall pro¬

vide for
the making
of appro¬
priate adj ustments in the "< maxi¬
sales

mum

price where substan¬

tial-improvements

have

been
sale.

made subsequent to the last

may promul¬
regulations as may be
necessary and proper to carry out
any of the provisions of this Act;
and may exercise any power or
authority conferred upon him by
this Act through such department,
agency or officer as he shall di¬
rect.
Any regulation or order
under this Act may wntain such

(d) The President

gate such

classifications

differentia¬

and

tions, and may provide for such
adjustments and reasonable ex¬
ceptions, as in the judgment of
the

President

are

necessary

or

in- order to effectuate the
purposes of this Act.
:
proper

•

of

(e) Whenever in the judgment
the President such action is

necessary

the

effectuate

he

Act,

in order to
purposes
of this

proper

or

by. regulation

may

order make such
deems

necessary

circumvention

or

or

provisions as he
to prevent the
evasion thereof

prohibit
speculative or manipulative prac¬
tices* (including the requiring of
the purchase of land prior to or
and

as a

he

regulate

may

or

condition of undertaking con¬

struction work or the requiring of
the purchaser of housing accom¬
modations to buy additional land
or any commodity or service as a
condition of securing such housing
accommodation)
iru. connection
with
the
sale
of
any
housing
accommodation
which
in
his
.

L, M. Blancke Director

of Brentano's
Blancke^ managing parte
Hemphill, Noyes & Co., 15
Street,

of

ner

Broad
New

elected
rector

a n

national

retailer

was

recently

r e-

active

partner¬
ship at Hem¬
&

for

unlawful

any

to effect, either as prin¬
cipal or broker, a sale of a hous¬
ing unit at a price in excess of
the ceiling price which shall be
applicable under the provisions
of this Act, or to offer, solicit,
attempt, or agree to making any
such sale.
Notwithstanding any
termination of this Act as con¬
templated in Section 1 (b) here¬
inabove, the provisions of this
Act, and of all regulations and
orders issued thereunder, shall be
treated as remaining in force for
person

of sustaining any
suit, action, or prosecution
with respect to any such right, lia¬
the

purpose

proper

bility, or offense.

September Truckload'g
Lowest Since Early'42
volume

action taken pursuant to any
regulation or order issued under
the authority of this Act may pe¬
tition the district court of the dis¬
trict in which he resides or has
of business for a review
action, and such district
shall have jurisdiction to

his place

of such

enjoin or set aside, in whole or in
part, such action or to dismiss
the
petition.
No
such action
shall be enjoined or set aside, in
whole or in part, unless the peti¬
tioner establishes to the satisfac¬
tion of the court that such action
is not in accordance with law or
is arbitrary or

trans¬

by
motor
carriers
in
September dropped to the lowest
level of any month since early
1942, according to statistics com¬
piled by the Department of Re¬
of
American
Trucking

search

The September
below August

Associations, The.
volume

7.1%

was

and 10.2% below

September, 1944.
Comparable reports received by
from

carriers

191

in

36

states showed these carriers trans¬

aggregate of 1,309,914
tons in September, as against 1,410,132 tons in August and 1,458,086 tons in September, 1944.
The
ATA index figure, com¬
puted on the basis of the average
monthly tonnage of the reporting
carriers for the three-year pe¬
riod of 1938-1940 as representing
100, was 158.83. This is the low¬
est index figure since the 144 of
an

February, 1942.
Approximately 85% of all ton¬
nage
transported in the month
was
hauled by carriers of gen¬
eral freight.
The volume in this
category decreased 7.2%
below
August and was 10.8% below Sep¬
tember, 1944.
Transportation
of
petroleum
products, accounting
for
about
9% of the total tonnage reported,
a

decrease of 10.7% below

August and declined 10.0% below
September, 1944.

Review

any

court

freight

ported

aggrieved by

Any person who is

of

Carriers of iron and steel
ucts hauled about 2%

prod¬

of the total

tonnage. Their traffic volume was
2.5%
below August
and 14.2%

172

257

About 4% of the total tonnage
reported consisted of miscellane¬

commodities, including to¬
bacco, milk, textile products, coke,
bricks,
building
materials,
ce¬

and household goods. Ton¬
in this, class decreased only
0.4% below August but was 5.5%
above September, 1944.
:
ment

nage

(c)

205

of the

(e)

and

Price

and

Control

Act

(a), (b),

Emergency
1942, as

\

trator,"

years 1936-39 ore used as a
reference here because they serve

profits tax and by OPA in
developing
profit
margins
for
price setting.)
With more rapid
technological advance these prof¬
its could be bettered, or prices
could
be
lowered.
The
profit
estimates

deemed

to

references

der"
Act

be
to

under
shall

to

same as

be

and

regulations or orders
this Act; and

modity" shall be
to "housing

issued under

references to "com¬

deemed to refer

accommodation,"




markets,

favorable

for still higher

authorized to be ap¬

propriated such
necessary

the

or

provisions

sums

proper

as

may

be

to carry out

and purposes of this

If any
the
to

Separability

provisions of this, Act

or

application of such provision
any

person

or

circumstances

shall be held^hvalid, the validity
of the remainder of the Act and
the applicability of such provision
to other persons or circumstances
shall not

be^affected thereby,

<

-

de-

employment by 1948.

1941.

not take into account any

that

nounce

benefits

Leary,

Speed-up/ in the amortization of
facilities bought in the last few
years,
since such profits wquld
be allocated to the war years and
hence
would
swell / war-time,
rather than post-war, profits.

resumed
the

M.
re¬

active

activity

duty and has J

as

partner ini

a

John U. Norfleet, hav¬

firm:

ing been discharged from, the U.
S.

.

Army

and

special*

completed

assignment with the U. S. Army;
Ordnance

Significance

has

Department,

also

resumed his association with Bar¬

It is apparent that

present costrelationships
are
such

price

A.

from

leased

Lt.

Comdr.

USNR, has been

Jr.,

that may accrue to the industry in
1946 and 1947 from the permitted

row,

Leary & Co.

j

-

AUTOMOTIVE INDUSTRY* RELATIONSHIP BETWEEN
PROFITS BEFORE FEDERAL INCOME

TAXES AND

^

PRODUCTION, IS4T

15

A shift

would

make

relationship between pro¬
and
profit for a given
period can clearly be seen in the
illustration
for
the
year
1947
charted on the next page.
Pro¬
duction is plotted along the hori¬
zontal axis.
In this study pounds
used

were

the

as

for

unit

com¬

bining the diverse products of the
industry—passenger cars, trucks,
parts, refrigerators, etc.
To help
production figures to
numbers more commonly recog¬
nized, the number of passenger
cars associated with each produc¬

relate these

volume

tion

vertical
of

ume

given.

measures

The
vol¬

the

profits before Federal in¬
In both Line A and

taxes.

come

also

is

scale

15

hour)

an

difference

The

lines

from

the

mt model

1942 model

for

stems

Line

A

Line

would

B

that
that

materials

fw AT

pay at

costs

prices, average hourly earnings of sl.so (y/eloins 1944
week), and current materials costs.

page.
Both lines show two

prices,

40 hour

average hourly earnings of sl.so (yielding 1944 "take home"

week), and 3% increase in materials costs.

SALES

AUTOMOTIVE INDUSTRY:

prominent

m

•

I
+

.15

1.5

a

larger between the
and

tends

to

ex¬

diminish

;no
0E

„

<

higher levels of output.
prices are high
enough to yield profits at low
volumes of output—even with
the high wage and materials
model

cost assumed for

1947.

ufacturing

process

output.

car

with

a

2-

i

J/p,

u.

o

\

c/>

j

♦ 5

2

o

// ^ sales

3
-i

\
Y>

'

;

.r-,

k

v

■

_

'

gjr

■

xr 0 '::

ut

—d

loss in

only

-•

,

i\

-

/

\i

\$y:'

one

V>':r '

..A'-:

•

year—1932.

a

the
profit-making
the *v industry
was
measured in terms of profits befar,
capacity
of

■

Jto

:

have been characteristic
of this industry. The automo¬

experienced

•

1 ms

*

<

</>

ity

has

-

{left scale)

ui

Prices that would yield prof¬
its at low utilization of capac¬

group

scale)

o

Profits

would be made from the man¬

profits
i right

mi

the

Thus

.

AND*PROFITS

BEFORE FEDERAL INCOME TAXES

results:

tive

"take hone"

40 HOUR

a a 4s-7et

higher—the latter
was the assumption used in arriv¬
ing at the
1947
profit figure
plotted on the chart on the first

1942

PASSENGER CARS

3%

be

A. For

4

MILLIONS OF

two

the assumption
materials costs

for

20

3

assumed.

were

between

'

BILLIONS OF POUNDS

Line B, 1942 model prices and a
25% increase in wage rates (to

$1.50

\

SHREVEPORT, LA. — BarroW,
Leary & Co., 515 Market St., an*

These estimates do

prices.

million

Section 7.

if

The

B.

Authorized
are

income!

sufficient to pro*

duction

at

the /president,

deemed to. refer to

Thus, after taxes, profits in 1948
higher

than in

a

There

be

be

proportion of higher-priced
luxury models, in the face of

treme

be

section of said

in pre-war years.

■

wage
secured

in the

Armed

Section 6. Appropriations

670

would be about three-fifths

the

on

to

to

full

,:://');;

higher

Leary and Norfleet
<-)
Rejoin Barrow, Leary \

610
__

assumption that the proportion of
the different models produced in
the next few years will be the

Forces.

"regulation or or¬

any

calculated

were

ice

the

J,

excess

much

of

390

of

reached

::

the base in calculations for the

as

Amott, Baker &
Inc.,
150
Broadway, New
York City, after completing serv¬

of

reference shall

such

large.

as

—

is

have

423 *•

1948

(The

Co.,

amended, are hereby made a part
of this Act with the same force
and effect as if they were mcor-,

porated in full. For the purpose
of this Act, wherever any such
section refers to "the Adminis¬

one-half times

390

1947

in materials

duce

338 :v vt!
U.-

further increase
will

•

have

mand

former

of restricted opera¬

a

much

will

the

be given for 1947 when

rates. /-•

A

451

—

jJ

1946

331

costs,
profits three times larger than in
1936-39 can be expected on sales

have returned to

Sections 202

269

pated in 1947 and 1948 even on
the basis of 1942 prices.
Even
with a 25% wage increase and

Rejoin Amott, Baker

members

peak

in

be granted with¬
results in the first

year

and
can

production

v

'

1937..

,

194
304

given set of cost assump¬
tions
in
a
particular
year,
profits rise much more rapidly
than production. Thus, a six¬
fold
increase
in
production
yields as profit 13 times highftf.
The
differential
is
naturally

as

10%

corporate
income
tax
elimination of the' excess prof its

194t*v—'li

The results indicate the high
profits that are generated by high
volume, such as may be antici¬

Lionel Asen and Walter Fideler

and

tions,

The automo¬

can

adverse

prewar

40%
and
the

is

industry

out

case a

much.

so

class—15%

profits after taxes for
good prewar years com¬
pared with the next three years,

would be the same as In 1945 and

September, 1944.

ous

capricious.

Section 5. Administration
Enforcement

158
247

increase

bile

selected

1940

178

169

.

below

Profits

130

and

probable

data show

tax:

more,

afford

could

not

some

post-war taxes, the same general
picture is seen.
The following

1929

100)

144

two

after /deducting

even

Soma

industries

But

taxes.

dollars)

Sales

some

showed

Section 4. Judicial

Center,

Training

Construction

ported

be

Naval

Davisville, R. I.

this Act,
Section 3. Prohibitions

Blancke

trative Officer at the U. S.

ATA

shall

M.

L.

Adminis¬

The

=

1946

Personnel

as

and

(1936-39

1941

service

active

an
average would mean a
rise of 15% or a little more in the

(Millions of

1940—

years'

income

indexes:

1929

after

three

Such

manufacturing industries.

Federal

assuming in, the latter

end sales position of

Year—

Noyes

•:

Co.

same

v:/'.;

the following

duty

to his

phill,

the

remembered

\

The. profit

returned

and

At

be
an

the next three years is compared
with selected pre-war years in

of

lieved;

was

creases.

Blancke

judgment are equivalent to or
likely to result in price increases
inconsistent with the purposes of

It

of

Cmdr.

books.

should

extraordinary
profit year, not only because of
the large production but also be¬
cause
of substantial price in¬

o's

t

ren

Inc.,

19487—

that

of

B

1941.

to

it

1941

time,

di-

a

fore

basic

a

wage increase is possible without
raising prices. For 1946, a gen¬
eral increase of 10% is possible.

(Continued from page 2209)

relative

City, has been

throughout industry that

Holds High Level Auto Output
Permits Increased Wages. Profits
plain next year's profit position

York

223(

\
-5

.

I

l

1

1

1

i

t

1

tiii

1929*30 *31 '32 *33 *34 *35 '36 '37 '38 '39 '40 '41

.1
l. -.5
*4| *47 '48
gt*s~rt*

FINANCIAL CHRONICLE

THE COMMERCIAL &

2232

Chile without very high tariff

as

protection.* V

The Bretton
(Continued from page

-

of /.toe

Chairman

foreign financial transactions—in¬ closure by the NAC itself, the
decisions which ^ that Council has
cluding the Export-Import Bankreached in its several meetings to
keep the National Advisory Coun¬
cil fully informed of their activ- date are to be looked for In an¬
nouncements from other sources.
ities.

22021
iuort

The purpose
Congressmen who wrote
particular provision was to
Snake sure that the conservative
voice of Mr. Leo Crowley—at that
time Chairman of the Export-Im¬
Bank of Washington.

of

the

S?

this

Meetings of the Big

expressing its
confidence in a particular official,
end by implication a lesser degree
©f confidence in the then Secre¬
tary of the Treasury, Mr. Henry
Morgenthau, Jr. The fact that both
Mr. Crowley and Mr. Morgenthau
were so soon afterwards to resign
the positions they then held serves
to point out the futility of Con¬
on

(although at this
it is rumored^ that Mr.
may be reappointed to

personalities
writing
Crowley

chairmanship of the Export-

the

flmport Bank).
U

An Anomalous

Situation

The creation of these two super¬

,

Ad¬

the National

bodies,

visory

visory Council and the Advisory
Board, with identical membership
but with two different Chairmen,

brought about an anomalous sit¬
uation.
It was inevitable that at
of the meetings of these five

some

officials

representatives

their

or

five

decisions would have to be

all

meetings thus far held have
taken place in the office of

who has person¬

Secretary Vinson,

ally presided at the meetings.
sistant Secretary of State,
Clayton, represents his

superior,
him

with

occasion

on
one

Will

immediate
bringing
advisors.

more

or

As¬

Commerce Henry
Wallace has personally attended
most
meetings, although
some¬
times he has been represented by
Mr. Amos E. Taylor, Director ot
the Bureau of Foreign and Do¬
mestic Commerce.
Chairman Eccles of the Federal Reserve Board
regularly takes his place at the
National Advisory Council's meet¬
ings. So too, until his resignation
from the Government, did Mr. Leo
Crowley, who was accompanied
there by Mr. Wayne ChatfieldTaylor.
After Mr. Crowley re¬
signed, Mr. Chatfield-Taylor as
Acting Chairman of the ExportImport Bank has represented that
institution at the meetings of the
of

Secretary

National Advisory Council.
The first formal meeting

made

both
Export-Import
Bank and other foreign loan pol¬
icies.
Should it ever happen that
affecting

The

today.

finance

ternational

was

passing long-term legisla¬
the basis of ephemeral

gress

tion

Ad¬

the

and

Council

visory Council may be described
as
the big five in American in¬

occasions, the Congress in

instance

this

Five

membership of the National

The

Advisory

port BanJc-^woiild be decisive in
the Advisory Board's decisions. As
in the case of Mr. Jesse Jones on
other

Advisory

National

place Aug. 21.
occurred

on

National

the Secretary of the Treasury and
the Chairman of the Export-Im¬

Council

of the
took

The fifth meeting
Thus, the
Council has

Oct; 30.

Advisory

been averaging one meeting each
port Bank find themselves unable fortnight.
to work together harmoniously, it
NAC's Operating Structure
i
is easy to imagine a sort of GoingIn making studies incident to its
tos-J erusalem game as the two
take turns in occupying the chair decisions the National .Advisory
at the head of the table. Actually, Council draws upon the research
of course, that has not yet hap¬ facilities of the departments and

At the meetings of this
group held so far Secretary Vin¬
son has been permitted
to keep

agencies whose heads comprise it,
as well as other agencies such as
the
SEC.
Mr. Frank
Coe, the

pened.

his

seat

the

at

of the

head

table

undisturbed. The possibility of a
question being raised by some
future Chairman of the Export-

Import -Bank has suggested that
Congress might be well advised to
clarify the set-up.

Treasury Department's Director of
Monetary Research, is Secretary
National Advisory Council
and Chairman of its staff commit¬

of the

tee.

a

the Advisory
Board of the Export-Import Bank
are neither as great nor as broad
as those of the National Advisory
Council. The Export-Import Bank
Act of 1945 merely provides that
the Advisory Board may make to
the Board of Directors of the Ex¬
port-Import Bank "such recom¬
mendations

as

...

it

deems

visable, and the Board
tors

shall

consult

whole has held only two or three

ad¬

of Direc¬

the

Advisory
Board on major questions of pol¬
icy,"
As its name indicates the
Board is really just advisory.
In the case of the National Ad¬

visory Council, however, the law
provides that these same five Gov¬
ernment officers shall recommend
to the President general policy di¬
guidance of the
representatives
of
the
United
States on the Fund and the Bank;

advise and consult with the latter
with
the President of the

and

arising Un
the Fund
nate

so

and

far

as

major problems
administration of

on

the

Bank,

Bank,

and

,

the Bank; coordi¬
practicable the pol¬

or

From

the

Treasury, Mr. Harry
Mr. Coe and Mr. Nor¬
man Ness; from the State Depart¬
ment, Mr.
E. G. Collado,
Mr.
Phelps,
and
Mr.
John
Parke
Young; from the Commerce De¬
partment, Mr. Frank A. Waring
and Mr. Hal B. Lary; from the
Federal Reserve Board, Governor

Szymczak,

Mr. Woodlief Thomas
and Mr. Walter Gardner; from the
Export-Import Bank, Mr. Wayne
Chatfield-Taylor and Mr. August
Maffry, and from the SEC, Mr.
Walter Loucheim.

Since there has as! yet been no
public report on the work of the
NAC, ne detailed information on

NAC have participated,

although
they are reported to have done so
in their individual-capacities as
Cabinet

or engage

due

financial, exchange or
transactions, etc.
The

members
rather

to

the

financial

Advisory

and

than

this is the

discussion^

fact

as

case

agency
a

body.

is| perhaps

that

the British

included

not !: only

and

monetary

matters,

but also commercial policy.
The
chief American spokesman in the

Council important specific powers
with regard to American decisions

discussions

with

in connection with the work of the

been Assistant

Fund and

the

British

has

Will

the Bank, requires the
Advisory
Council
to
make various reports, and spec¬
ifies that the various American
oiLcxaxS

enga^ea




m

Secretary of State

Clayton, rather than the
Chairman of the National Advis¬

National

Cruvernment

for

future activities

pattern

are a

of the Bank.

" r -V

:"'hv:'V

/

-

Council, Secretary of the
Treasury Vinson, y-Vv.^vory

'

«In

the

absence- of

official

dis¬

Borrowings Lower in

port-Import Bank appears to have
been guided by the intention to
operate without net loss to the
Government.
Thus,
as
noted
above, the variable rates in the
new
Netherlands credit agree?
ment, averaging about 3%, will
yield about 1% more than the
over-all
cost
of money to
the
American Treasury, or enough to
take care of the Export-Import
Bank's operating costs in connec¬
this credit.

with

tion

dentally,

And, inci¬

believed that the
is sufficiently

is

it

over-all rate of 3%

high to

attractive to the in¬

prove

vestment

market,

in

rise

general

assuming no
interest rates' in

Between the terms of this credit

the Netherlands and

to

The' New York Stock Exchange
on
Nov. 2
that
the

announced

total

The

purchases

loan

are

all

by the
through

financed
made

be

to

those

which the British have been

for

ask¬

ing since the termination of LendLease there is

According to

wide difference.

a

what

reports,

press

private American trade channels.
interest

The

2 V,5%

with

payments, starting
during
the
period

ending Dec. 31, 1950, and increas¬
ing by steps to 3 %% during the
last five years, indicate that the
policy of the Bank and the NAC
is to cover not only the interest
cost to the United States, but also
the operating costs of the ExportImport Bank in connection with
the loan.
Thus, there appears to

are
asking for con¬
large element of "gift" in
the guise of waiving interest and

tains

a

sinking fund payments, both dur¬
ing an initial period of grace and
during any year when balance-ofpayments conditions would render
such debt service by the British to
this country burdensome.
What
the

British

Lend-Lease

of

is

want

a

aid

will

Sept.; 29.
The following is the Stock Ex-"
change's announcement:
The
from

the full cost to the United States.

rather

the

intention

to

but

ment

Public Flotation Seems Envisaged

The
tion

of the

announcement

Dutch!

credit

of

reveals

the

new

inten¬

the

Export-Import Bank
to
replenish funds lent to the
Netherlands through the sale of
Netherlands
obligations
to
the
general
public
in
the
United
States
by
the
Export-Import
Bank. •
The
Bank's
agreement
with the Netherlands Government

provides that the notes which that
Government gives the Bank in

their

of

shall

have

the Bank specifies,
interest coupons at¬

as

if requested by the Bank,
shall be registered by the

and

the

Government

Securities

Act

By thus raising

1933

of

amended, if the Bank

so

under
as

requests.

the pri¬

money on

vate investment market here the

Export-Import Bank expects to
help channelize private capital to
a
public purpose.
Utilization of
this technique is to be expected in
future Export-Import Bank cred¬
its to foreign governments.
That
this policy has the endorsement
of the National Advisory Council
is a safe assumption.

time

be

cited

made
ton

them

to

basis.

Administration

policy which, while not
the

endorsement

loan

new.

has
is

of the NAC,

in. the

Export-Import

Bank's recent announcement of
$33,000,000
with

! credit

Chile.

a

arrangement
Chilean

The

Gov¬

investors,

tinued

the

service

discon¬

having

reduced

rate

voluntarily

of bond

in

resumed

Among those in Washing¬

British

are

1936.

Since

000

of

Chile

then

uses some

revenues

has

di¬

$23,000,-

earlier

desig¬

NAC
So
set

Not

far

Goldfish

a

is

as

down

excluding borrowings from other
members

the

his

own

facts

making.

for

this

unable

was

recent

Export-

Import Bank credit to Chile is
case

a

pre¬

of

the

seems

publicity not of
In gathering the

credit

a

is

defaulter.

The Chilean

being criticized also

the ground

on

that^ the steel plant to

which the bulk of these funds

are

tp be devote(d cannot, pperate eco¬
nomically in such a small market

States

ber firms

31,
$911,115,092.'
The

by

the

ments

well

goldfish bowl.
the

instance

defaulted
the

action

state

attempt

any

Export-Import
on

Bank

basis, as of
the close of
business
Sept. 29,
1945, was, (1) on direct obliga¬
tions guaranteed as to principal
or
interest by the United States
Government, $349,844,174; (2) on
all

other

collateral,
$947,256,180.

Total

,of

score

various

settle¬

bonds

the

Interests,

conditions

would

like1 to

attached

to

loans

by the Bank to foreign govern¬
ments; and that the past activities of the
Bank, by strengthening the economies of
in

countries,
the

debts.
steel
that

have undoubtedly helped
of
instances to make pos¬

number

a

sible

resumption

Persons
mill

it

of

familiar

project

has

been

service

with

said

are

under

that

years;

the

to

Chilean

emphasize

careful

the

old

on

study

best

for

available

American

engineering talent has been re¬
that the
technical
staff of
the

tained;

Export-Import
haustively
that

the

Chile

Bank has

from
mill

any

which
will

every

will

be

increase
not

are

analyzed it ex¬
point of view; and
put

in

into

operation

existing

imports
high.
hopeful
that

particularly

Washington

is

before

resume

long

the

sus¬

Bookshelf
Investment

of

ORANGE,

N.

mund Reed has formed

&

Co.

and

National

Securities

Method

Trends

Security

of

Prices

&

—

Research

Corporation, 120 Broadway, New
York 5, N. Y.—paper.
Making People Like Your Bank
—New

York State Bankers Asso¬

ciation, 33 Liberty Street,
York 5, N. Y.—paper—800.
Manual

of

Stock

New

Transfer

Re¬

quirements—Raymond J. Berlin
and Raymond C. White—Fairchild

Tax

Program

for

Solvent

a

America, A—Committee

Post¬

on

Tax

Policy, 50 West 50th
Street, New York, N. Y.—paper.

war

War

Loss

Recoveries

—

Report

—

Trade

National

Will

„

Negroes Get Jobs Now?—

Herbert
No.

R.

Northrup—Pamphlet

issued

110

by Public Affairs
Committee,- Inc.,;, 30 Rockefeller
Plaza,
New York 20,
N. Y.-u.
paper 100.
t J

Ohio

Valley Group cf

IBA Elects Boles
LOUISVILLE,
KY. —At
the
meeting held by the Ohio
Valley Group of IBA on Oct. 29,
annual

1945

the

at

Pendeijnis Club, the '

following officers

were

elected:

Chairman:

Ewing
T..
Boles,
Company, Columbus.

The Ohio

Vice

Chairman:

Provident

C.

T.

.

-

.

Secretary-Treasurey:
Linch,

Diehl,

Savings Bank & Trust

Co., Cincinnati.

Dale; F.

Berwyn T; Moore & Co.,

Louisville,

J,

Executive

Committee:

J.

A.

White, J. A. White & Company,.

Ed¬

Bros.

Edmund

National

Bank,

Chester
&

A.

Cincinnati,

Lucas,

Stein

J. R.

J.—

with offices at 519

business..

Foreign

Council,
Foreign
Trade
Council, Inc., 26 Beaver Street,
New York 4, N. Y.—paper.
Inc.

Ohio;

Main St. to engage in an invest¬
ment

Major

Business

coln

Edmund Reed Co. Opens

Reed

Timing—A

Forecasting

Cincinnati, Ohio; J. E. Sohn, Lin¬

pended service on its dollar bonds.

EAST

_

Business Man's

might
of

purpose

made

debtor

$597,412,006.
"
<

the

loans

operations,
which
is
to
promote
the
foreign trade of the United States.
They add that, not the bondholders alone,
see

same

the

link
with

dollar

statutory

of
on

that,

to

Bank s

but ^a

borrowed,

money

the

on

tional

defend

defeat

aggregated,

of the Tax Committee of the Na¬

to do in the
course of a oublic
address about
the middle of November. In other
words, the NAC is not conducting

thi3

of

total

compiled

1945

assist¬

This he is expected

hand,

of the close of busi¬

as

Oct.

ness

writer

from Treasury officials on
particular subject until such
time as Secretary Vinson makes
some
public statement thereon.

in

was

the

this

a

Government*

$323,057,245; (2) on all other col¬
lateral $588,057,847; reported by
New York Stock Exchange mem¬

any

of using taxpayers' money to

reward

or

obtain

ance

Official

the

to

on

article

to

its work in

securities

direct

obliga¬
obligations guaranteed
principal or interest by the

tions of
as

national

(1)

facts

not

chairman

not to desire any

duties,

viewpoint,

the

have

National Advisory Council

without

bondholders'

of

exchanges,

Publishing Co., 8 East 13th Street,
New York 3, N. Y.—cloth—$2.50.

Bowl

known,

above

that

reason

bonds.

the

are

our

viously appeared in print for the

nated forthe service of the dollar
From

officials who

some

frankly
concerned
about
creating such a precedent.

several

verted to other

businesslike

a»

on

who want this country to be
liberal as possible with the

as

other

Another

other Govern¬

by

reason for renegotiat¬
American-Government loans

ing

Bank

Defaulters

to

even

ments as a

'Those

Loans

is

possible that the extension of a
gift-credit to Britain might some¬

of its borrowings under
credit shall be of such de¬

nominations

It

needs.

evidence
the

total of money borrowed
banks, trust companies and

other lenders in the United States,

It is inconceivable that the grant¬

equivalent if not identical treat¬

con¬

of busi¬

bit

be

recover

attempt to

case no

gift to the borrower,

a

mem¬

Oct; 31! Was $911,115,092,
compared with $947,256,180 on

as

palatable to us in this post-war
period—a gift dressed as a loan.
ing of such lenient terms to the
British would not be used by other
countries
as
an
argument
for

be in this
ceal

of the close

as

re¬

as

form

new

that

borrowed

money

by Stock Exchange

ber firms
ness

British

the

of

ported

United

this country.

<

Month ef October

Throughout its history the Ex¬

-

ican

concerning financial aid by
this Government to the United
Kingdom all five members of. the

heads,

monetary

feasures of this loan

cials

participate in the

law vests in the National

made

loans

future

subject is available.
In the
conversations with British offi¬

That

foreign

in

by the Export-Import Bank.
So,
also, may it be assumed that other

ernment has long been one of the
conspicuous Latin American de¬
faulters on bonds held by Amer¬

the

they
in

embodied

apparent
NAC's Work and Decisions

-

or

sub-committees include:

D. White,

the Government to the extent that

make

American products
for export to and use in the met¬
ropolitan territory of the Neth¬
erlands.
It may be assumed that
this principle of tying the loans
to
American products has been
approved by the NAC and will be
specified

Netherlands

mittee

the
Export-Import
all other agencies of

making of foreign loans

of

set up.
Technical specialists who
have participated in one or more
of the meetings of the staff com¬

icies and operations of the United
States representatives on the Fund
and

The $50,000,000 is to be used by
the Netherlands for the purchase

tached

rectives for the

United States

Specifically, we may * turn for
light to the Export-Import Bank's
public statements on loan agree¬
ments
it has concluded*
That
Bank's disclosure oil Nov. 3 of
the terms of a second $50,000,000
credit
to
the
Kingdom of the
Netherlands is enlightening.

meetings. For the study of special
subjects subcommittees have been

of

powers

He is assisted by Mr. Roman
The staff committee as

A. Home.

Powers Not Co-Extensive

The

- - •'
\j "

r

1

.„

Concern Over British Request

;ri-x

h*y

Thursday; November 8, 1945

;

,

v

Boyce,

Louisville,

Ky.;

Burkholder, Almstedt Bros.,
Louisville, K.y.; Thomas Graham',
ex-officio,

The

Bankers

Companv, T^svm^c jKyvx;

Bond
-

;

§#;
•'

/;

■ ?■

■

/ -rw'i '•;>■

-.

jVoIume 162

.1'

".•'?•

1

.

Number 4436

TMF

COMM F.PCTAL

*

CHRONICLE

FINANCIAL

■k

ffOur

Reporter

moved up.

J"

on

would

be limited to 30%

Walter

(minus
regulation

.

.

means

.

.

of these institutions to make loans
ment obligations. .
'
V ~
.

.

.

Undoubtedly this decrease in purchasing
allowed

to

take

place, since

indicated

it is

that

the banks

will

•

•

By doing this their

•

to

will be available to take on

reserves

outstandiiig eligible Government obligations that
into the market, as

come

Consider

Last

likiely

are

result of "normal portfolio adjust¬

a

week

out that

ments.

"Federal" unless

be for sale.

may

deposits will

it
.

want to borrow from

is necessary, to buy the
outstanding issues that
The restriction upon the creation of War Loan

.

,

doubt discourage the practice of inducing customers
to sell outstanding issues to raise cash for new
subscriptions.
no

It is also believed that it will slow down
trading in the outstanding
securities during the drive.
The

Treasury by new regulations
through rigid enforcement of old ones, hopes to eliminate the
objectionable practices of previous drives.
This will be con¬
.

.

siderable

of

task

a

since

almost

.

to

get in on the
Victory Loan, which may be the last large public drive for funds.
.

Also

be

it

is

available

purchasers,

indicated

that the premium which
longer term bonds will have

in the

in

who

holders of the

the

issues

past,

have

they took

not

been

will

drive

issues.

Government

prices.

bond

.

IV This

.

market,

on

for

very

...

for

make

should

which

.

permanent
during these drives.

Victory Loan, nevertheless will
the

of

.

probably

attraction

These restrictions and regulations which have been envoked

the

is

have

better

a

a

good

for

distribution

the
higher

effect

eventually • headed

on

for

...

PRESENT

MARKET

A good demand still continues for the bank
with the 21/2% due 9/15/67/72, the

eligible obligations,

trading favorite.
After making
alltime high this bond reacted slightly on light volume, only
to advance again early this week to another alltime
top. . ...-The
June and December 2s of 1952-54, were active at new highs for the
a

.

.

.

new

with a good damand appearing for the 2!/2s due 1952-54, and
2i/4s of 1952-55.
Some switching was reported out of the

year,

the

.

.

.

2!/2S due 1056-58, with the funds being reinvested in the drive issues
and the 2y2s due 9/15/67/72.
;
The partially exempts were bettter
with the 2%% due 1960-65 moving on to a new all-time
high.
.

.

.

The

restricted bonds moved

along with the rest of the market, and
a new top.

the 2!/4S of 1956-59 climbed to

.

.

.

POST DRIVE PREMIUM
It

is

indicated

that

the

longer term drive issues will go to a
The
opinion is widely held that the 2J/2s will be selling between 101 and
101V2 shortly after they are avalaible in the open market.
Also
there are many who believe that this bond will sell at 102.
The
2J/4s will probably not be far away from the levels, reached by the
2V2S, although the higher coupon obligation seems to be the most
sizeable premium after the completion of the Victory Loan

.

issue at

It

for

may

21/£s

be

over

long

a

bonds.

.

Indications
foe

well

.

.

In

the

fixed

present fiscal

.

the

reason

for

the greater

214s is attributed to

time

before

there

is

the

another

of

it

the

.

the Treasury, after the Victory

funds

which

should

carry

them

without further

Loan, will
through the
If the deficit

borrowings. ;
'.
of the Government should decrease sharply, as is expected by some
market followers, the Treasury in order to cut the debt burden will
probably finance the bulk of its decreasing needs with low coupon
short term obligations.
Although the Treasury could finance
smaller deficits, with short term issues, they might offer some
long
term obligations
If this should be the case it is believed that
the coupon rate of these securities, will be lower than those now
being sold in the present drive.
year

.

.

.

.

.

.

.

ket's

interest

than

an

rates

today are much more of a political factor
economic one, it is to the interest of the Government to
keep

them low and to reduce them whenever and wherever it is feasible
to do so.
There is no doubt of the ability of the Treasury to
.

control

rates

.

.

the money markets, which means that the level of
be where the Government wants them to be.

will

It is believed that the British

reduce the

-

interest rate

on

interest
.

.

*

In the not distant future will

long term obligations, just

as

they

'

did

on

short term securities.... It is indicated that this reduction

in the! long term rate is to be made not only to further relieve the.
debt burden, but also to keep down the cost of new housing
in

England, which will need substantial amounts of long term
capital.
The funds for new building, it is reported, must be
.

.

.

obtained at

a

low interest cost.

.

•

^

•

.

^

^

H. A.

Fred D. Stone Rejoins
Ackerburg With
Shillinglaw, Bolger Co. John Nuveen & Co.
CHICAGO, ILL. ~ Shillinglaw,
Bolger & Co., Inc., 120 South La

St., announce / that Harry
Ackerburg, editor of the Ill¬

)Salle
A.

inois

the

"Journal of Commerce" for

past ten years, has joined their

sales

department.

.




mar¬

as

it

was

reflected in stock action,

was

given.
/"'

We

"

*

'■

now

*

*

come

to the

point
reappraisal of the entire
situation, not because of la¬
of

CHICAGO,
ILL. —Fred
D.
Stone, Jr., Lt. Commander, USNR,
who

was

formerly associated with

September, 1942.

fact

that

market is

a lot better
in many a week.

than it has

acting

Readers of this column
aware

that

even

are

though I ad¬

vised the retention of various

stocks, I

basically bear¬

was

':v:' .*

*

;y

•"

*

■

•'

'

Among the rails there

are
that act better than the

some

group and some worse.
For
example Delaware & Hudson
is about 10 points under the
average.
On the other hand
Great "Northern preferred is
about 10 points better than
the

of the rail

rest

The

average..

disparity exists be¬
ish. I saw what I believed to
tween Southern Railway com-;
be
certain barriers to
ad¬
mori and the preferred. The;
vances which I
thought would common is about 3 points
take considerable doing to
above the group while theovercome.
But there is one
senior issue is just about even
thing I have learned, and that with the market. This doesn't'
is never to fight the market.
mean
that the ; laggards are
At this writing it looks as if
"due" and should be bought.
prices of more than just a On the
contrary it usually in¬

problems,
the

handful of stocks

are

same

headed

mar¬

>

gest are as follows: -Allied
Mills, buy between 34 and
34V& with a stop at 33. Lock¬
heed, buy between ZIV2 and
321/£ with a stop at 30.
Buy

Snyder
Admit VeEdran;
Lee Is With Firm

Western Union between 51

Ingalls & Snyder, 100 Broad¬
way, New York City, members of
New York Stock Exchange, an¬

and 52 ^

general

retired

has

partner,
firm.

the

from

am

Chester

C.

Vel-

with

or

Western

that

aware

^

stop at 50.

a

with

Union is faced

that Thomas B. Berentsen,

nounce
a

I

a

/ *

More

' ♦

*

-

/

..

...

Thursday.**
v—Walter Whyte

next

...J.;#

/

expressed in this

[The 'views

article do not necessarily

at any

those

of the

with

coincide

time

They are presented a$

Chronicle.

those of the author

but the stock itself

only.]

strike,

indicates

LAMBORN & CO.

dran, associated with the firm for
15

years,

partner,
formerly

higher prices and that is what
general we
go by.,

has
and
a

Davis & Co., has been made man¬
ager of
ment.

99

become a
Norman
C.
Lee,
partner in Fellowes

their investment depart¬
:

You still hold A. M.

23-24

Raffensperger, Hughes
to Resume Business
INDIANAPOLIS,
fensperger, Hughes

with

Byers

stop at 20 ^ The

Exports—lmport8-~Future$ yf

strength of the rest of the
DIgby 4-2727

Pacific Coast

the investment business from of¬
fices

at

3615

Coliseum

George

are

Established

Avenue.

Securities

Raf¬

W.

']f ;£>Vv'-'

•

fensperger, President and Treas¬
urer,
and
William
Shannon
Hughes, Vice-President and Sec¬
retary.
Mr. Raffensperger has
been on active duty with the U. S.
Reserve

since

1942.

——BBPWP——

.;•*%

Orders Executed

- •

Members.

y

.

11■—

.

'

?.

y

ly.

Leon

R.

Opens

Harrison. is

investment
181

New York Stock

business

New

of¬

fices

at

York

City. Mr. Harrison, who has

East

93rd

St.,

New

serving in the U. S. Navy,
formerly

senior

Harrison & Lein.

York

partner

of

V

Exchange

Exchange

Exchange,
Inc.
yBoard of Trade

Orleans
And

'

Cotton

other

Exchange

Exchanges

Exchange

Curb Exchunoe

(Associate)

Chicago Board of Trade

resuming
from

C h i c a g o

;

Cotton

York

New-

New

Curb

York

New

I v Commodity

:

Exchange

Stoc'c

York

New

Members

L. R. Harrison

.

"

Pacific Coast Exchanges

Schwabacher & Co,

1856

H. Hentz & Co.

%»%'

on

Mr.

Hughes has been with the, FEA.

the

M

SUGAR

loaded
sales, but in view of the
still

is

range

IND. — Raf¬
& Co., Inc.,

which discontinued business for
the duration in 1942, will resume

Officers

WALL STREET

NEW YORK 5, N. Y.

at 19 with a

N.
1

14 Wall Street

New York 5, N. Y

Teletype NY U928

COrtlandt 7-4150

Y.

Cotton

Exchange Bldg.

NEW YORK 4,

Private Wires to Principal Offices
San

Francisco

Monterey

—

—

Barbara
Sacramento

CHICAGO

DETROIT

N. Y.
PITTSBURGH

Santa

Oakland
Fresno

—

GENEVA,

SWITZERLAND

•

-%£[.jjv;

least labor difficulties,

at

.

■■ >

;

.

been

the service since

be raised to 212/2;

now
'•

of

rumors

the

a

.

was

in

the

is likely to go
But the-stop should

^

He

been

man¬

conference.

it

through.

.•

John Nuveen & Co.* 135 South La
Salle St., has rejoined the firm.
had

unlike

market,

dicates that the stronger is-;
higher. The rails, for exam¬ sues will continue, to be
ket is doing so well in spite ple, which have been holding strong and during a reaction
back, have, on Monday, ad¬ the
of it. Obviously this improved
laggards may react more,
vanced sufficiently to practi¬
than the group. A (direct ap¬
action is a reflection of some¬
cally confirm the bull trend plication of this would mean
thing more than trial bal¬ in
the industrials.
It is pos¬
to
loons.
You remember that
get out of such stocks'
sible that this confirmation
which don't do as well as the
prior to President Truman's
may be a boomerang.
That market, even though they are
speech there were all sorts of
is, it may confirm just enough in the
black, and most partic¬
"authoritative"
statements
to make everybody wildly op¬
that he would recommend
ularly when they're in the'
timistic and when everybody
salary increases anywhere thinks the millenium has ar¬ red, holding on to those that
are as good as, or better than
from 15 % to as high as 30 %.
rived, it may turn arbund and the market.
The market believed the re¬
go down again: Still, that is a
ports and declined.
" *
chance one has to take.
*
Sic
*
Jjr "
By the way last Wednes¬
*
#
When the speech was fi¬
In
the
meantime
stocks day's lows, which were so;
and that
nally made there was no di¬ look higher and some of them important, held,
more than anything else was
rect recommendation of wage
sufficiently so to warrant
the tip-off for a change in
lifts and the market promptly
buying. The stocks I now sug¬ heart.

bor-management

but rather because

Naval

.

the

viewpoint, insofar

.

POLITICAL NECESSITY

Since

the

days addi¬

evidence of

.

that

offering

f
that

with

.

demand

opinion

.

are

holders,

few

past

tional

is

pointed

.

pointed out that the

was

the

this time.

was

which worried

news

.

.

.

favored

warrant

.

wants

everyone

now

market itself Wasn't worried.

and

.

it

security

many

Also it is reported that the banks do not

,,:V

outlook

despite the plethora

of strike
DULL TRADING INDICATED

It is the

labor

an¬

with

Support at last Wednesday's vious one remains to be see
lows
turned entire market But leaving the news, and the
picture from bearish to bull¬ rumors of news, alone, it

sufficiently good to
new buying.

keep War Loan deposits within the limits set by the Treasury.
the

—By WALTER WHYTE-

ish.

will not be

power

Whyte

.

purchase outstanding Govern¬

or

heavy

news.
-

have

we

Paramount, bought at 30 M>,
Truman's > speech,
this one is
just about through its ob¬
is
apparently looked at by stacles from 44 to 4b. So
long.,
the market with
optimism. as it acts
okay, hold it. But
Whether this feeling is
any the
stop which last week was
more
justified than the pre¬ 40 should now be lifted to 43,

Says —-

of Deposits,

Treasury balances) as of Oct. 31, 1945.
The new
that the banks must pay for customers
subscriptions in cash
when the peak figures in War Loan
deposits has been reached.
The payment of excess
subscriptions in cash will reduce the reserve
balances of the banks, with a
corresponding curtailment in the ability
.

agement
But-

Now

situation

potential

Markets

A rising Government bond market was
slowed temporarily last
week, following the announcement by the Treasury, that War Loan

banks

other

Tomorrow's

By JOHN T. CHIPPENDALE, JR.

accounts of the

2233

is

It

(Continued from page 2216)
locomotives, cars, railway material
and personnel. It has eliminated
"bottle-neck" points of conges¬
tion, increased capacity, reduced
delays, saved mdn-hours and in¬
railways.

the

of

efficiency
While railway

operating

the

creased

signaling is generally installed to
increase the safety of train op¬
eration, during war time condi¬
tions, with its shortage of railway
material, equipment and labor, it

beyond all doubt that
j.
it is an important factor in in; C ,creasing operating efficiency and
has proven

('.economy.
.
■■■k,
Centralized
Traffic
Control,
Automatic Block Signals, Car Re_

and

Interlockings

tarders,

^

Con¬
of

Cab Signals are some

tinuous

important signaling systems
have helped to make the
railways operate so economically
and
efficiently during the past

the

which

available

In the short time

years.

today, I would like to call your at¬
tention to the economics of e.T.C.
and one of our newest develop¬
ments, Inductive

Train Communi¬

cation.

Centralized Traffic Control

of railway operation by
of
through

means

of which the movement

trains

over

and

routes

section of
track is directed by signals con"'
blocks on a designated

r

from

trolled

one

Extent of C. T. C.

T. C. in 1927, there were yn

pointt without
of train orders

Jan, 1,

1945, 314 installations on 53 rail¬
ways totaling 6,290 track miles in
the U. S. A. and Canada.
These

projects controlled 940 sidings,
3,070 switches and 9,210 signals.
About 1,500 additional track miles
will be installed during the year
1945,
Several hundred miles of
C. T. C. are in service in Canada,
Mexico,

France

England,

Brazil,

larger users of C.
Santa Fe, B. & O., B. &

Some of the

M., C. & O., C. B. & Q, Milwau¬
kee, Rock Island, D. & R. G. W.,
Erie, L. & N., M. P., N. C. & St. L.,
Nickel

Plate, N. & W., P. RR., P.
M., 'Frisco, Cotton Belt, S. A. L.,
S. P., T. & P., U. P., W. P., and
Economic Advantages of C. T. C.

locomotives, cars, train

1. Saves

stops and personnel. The saving in
locomotives and cars is often more

C. T. C.

Several

projects saved over four
locomotives, 100 cars, and 100,000

train stops.
2. Saves

train hours,
minutes per

freight

averaging over ,100

The

miles.

train

100

day, C. T. C. should be de¬
signed to suit the traffic require¬
per

ments with economy.

Application of C. T. C.

While

C.

been

T.

C.

has

installed

in

the

on

and

average

freight train time saving on 20
C. T. C. projects was 1.34 minutes
per train mile, while in a few
cases the saving has been 2 to 3

their
economic advantages, it is prob¬
able that some of the 50,000 miles
of
non-automatic
block
signal

reduced

period is bound to affect
some
multiple
track lines on
which the traffic can be handled
the

war

more

economically

trackage

and C. T. C. operation.
higher

ects,

,

the

at
the
Division
Head¬ train varied from 1 to 16%, on one
quarters and connected by a line project the GTM per train hour
circuit to field stations at sidings increased 89% and on another
along the railway. The person op¬ project 95%
more
loaded cars
erating the machine is aware at were handled west bound and
all times of the location of all 135% more empties handled east
trains in the territory by means of bound.
small lamps located in a track
4. Increases track tcapacity by
diagram on the upper portion of greater utilization of existing fa¬
the
machine.
There are small cilities, The per cent, increased
levers and push buttons on the capacity will vary with local con¬
cated

front of the machine by means of
which

the signals and switches
are controlled. The controls issued
from the machine are checked by

?

the

wayside signal system which

determines

that

it

safe

is

for

particular control to be executed
before the control can become ef¬
fective to change the position of

function.

9 ny

Thirteen installations
saved

in

out

nals,

struct the train
:

two wires

The

work

are

r

C.

the

T.

C.

time

trains

as

direct

control

of

each

same

ratio

of

for

sid¬

overtime.

-

The annual saving in operating
less

the

increased

cost

a

few miles to

vision of 171 miles

pending

upon

or

local

a

more

di¬

de¬

operating

conditions.

Siding switches are power oper¬
ated and protected with controlled
signals
matic

ings

with

block

intermediate

signals between sid¬

to facilitate

movements.
switches and

auto¬

As

following train
the

signals

are

.

8. Increases the safety of train
as main track switches

operation

power operated or equipped
with electric switch locks. It re¬

are

and it eliminates chances

properly

opening

a *

ments

improve

the

of im¬

main

switch in front of or under
9. The expedited train

a

line
train,

move¬

competitive

position of the railway and fits
in with the future
development of
the railway plant.
10, Provides increased capacity
to meet sudden demands for han¬

dling extra traffic due to defense
activities, floods, detour move¬
ments

•would

conditions with considerable

sav¬

ing in delay time. Non-stop meets




electronic

principles just the same
as radio, but it is not "radio" in
the commonly accepted sense of
the term. It operates on a modu¬
mitted

over

use

a

It is ready
stand¬

are

ing or moving, coupled or un¬
coupled, or whether the equipped
vehicle is

on

or

off the rails;:

or

other emergencies.
Cost of C. T. C.

through

Expedites
an

average

freight

indica¬
by the greater
range cf verbal instructions. Spe¬
cial instructions can be promptly
is

tions

transmitted to suit the local con¬

vestment.

Published

that

operations are expe¬

mile

$3,000 to
depending

over

upon

reports have been
yard I. T. C. in¬
Colum¬

three

on

stallations at Sharonville,

DeCourse.y which showed
average saving
of the
three yards was about 100% per
year.
..
h, *
It is hoped that this brief sum¬
mary of C. T. C. and I. T. C. will
give you a better picture of how
bus and

the

operation dependent upon
signals can be expedited
especially with 100-125 car trains.
3. When entering a siding, the
conduqtor may quickly notify the

4. The conductor can

notify the

engineer to resume, speed prompt¬
ly after the rear end of the train
has

Better

5.

coordination

is

ob¬

engine and train

ih comparing ;: orders; and
planning,work at stations. Should
it be deemed necessary by the

crews

conductor to stop the train,

he can

immediately request the engineer
instead

the air from

of applying

rear

of

train with

the possibility

of

break-in-two.

The engineer

a

also inform the conductor as
to the reason for an unusual stop
may

and. of

action

that

may

be

re¬

quired.
6. It

experience
with
many
signaling developed

basic

requisites

munication

as

for

train

com¬

follows:

shocks
and
vibrations
found in railway service.

,.

Nationalization
Without Tears?
(Continued from page 2215) 'f'
requests to the Bank
and the Bank's requests to the
ernment's

privately owned banks, "for the
of securing the execution
of its economic plans.
' ^ V
"But if that is the case," argued

permits means of convey¬

a

critic,-"then

Conservative

poses

it is dangerous." To this a
supporter
replied:
contrary, if the banks
to collaborate with the Gov^

Government
the

"On
mean

in

ernment

sufficient

ment

to

then

may

vent an accident.
-

hazards sighted along
track or right of way.

of possible
the

8. When trains are

stopped un¬
requiring flag pro¬
tection, or when it is evident that
an adjacent track may be fouled,

der conditions

immediately warn
in ad¬
dition to providing the required
flag protection.
1
9. It provides means of report¬
ing immediately to the wayside
stations any unsafe condition that
may be observed, such as irreg¬
ular track surface,
high water,

the

crew

in

the

_

7. Other trains can be warned

can

other trains in the vicinity

slides, live stock on right of way,
etc., which may avert an accident.
10. Trains stalled or stopped for

the Bill is

it
is,
from -A the
Government's
point of view/- necessary
> ^In reality, the mere possibility
of
nationalization k would
have
been

which

case

any

harmless, while if they contem¬
plate refusing to collaborate then

shifted
lading, .etc.,
reduce delay or pre¬

door,

the

superfluous; while if it is
meant to be used for other purris

Bill

ing information between trains
concerning a. hot .journal,-, loose
car

helping the
safely

are

purpose

passed over "slow track."

tained between

systems

was

such

;

secure

for

Govern¬

Why,

proceed
haste with; introducing

a

Bill? ' Perhaps

ment

the

obedience.

it necessary to

wanted

to

nationalization

the

carry

of

Govern¬
out the
and

the- Bank

the acquisition
trol
the other

of powers to con¬
banks, while the
going was good.
It is possible
to visualize a position some years
hence in which a split between
the moderate and extreme wings
of the Labor Party

the existence
In

such

might imperil

of the Government.

situation it is

a

conceiv¬

able, in the absence of legal means
to control the banks, that they

might seize upon an opportunity
disobey the Government, know¬

to

ing that the latter would no longer
be in

a

strong enough position to

effect their nationalization.

The terms of the Bank of Eng¬
can report the cause
land Bill seem to... indicate that
to
delay, the time required the Government is anxious
for
clearing
the
trouble,
or collaborate with capital and en¬
whether assistance is required^ ... terprise rather than antagonize
11. It will enable the dispatcher
them beyond .the extent that is
audible only to qualified railway to
keep in closer contact with inevitable .as. a result of its pro¬
personnel.
v* train movements and sometimes gram
of
nationalization.
Evi¬
4. Interference *with other- com-;'
eliminate delays for meeting and
dently, the Government is willing
mu n i cat ions must be avoided with
to spend a few additional millions
passing trains.
It - increases • the
railway or other communication
supervision of train movements. ■> of pounds for the sake of reaching
systems*;
12. It will he helpful in the han¬
friendly
settlements
with -the
5. Ease and economy of mainte¬
dling and disposition of cars that owners of industries.Jt wants to
nance must be fcroyijied so as not
nationalize. And it is more than
develop defects enroute.
to delay train operation. "
.
;
13. It-has immeasurable safety
willing to retain the ;services of
^Train communication 'j$. not ing value for train operations in foggy
tended to replace other methods and inclement weather and espe¬ tiiosd who have managed > nation¬
of
alized
conveying orders
to
trains
enterprise
while under
cially during the winter months.
which must be4 given by rules,
14. Provides facilities; for in¬ capitalist; owner^j^^l Rven^;so,
time-table and train orders, or by
stantly changing passing points nationalization is bound to cause
signal indication.
No system of
with conflicting traffic as required
presentment," and a gradually stiff¬
voice communication can, by it¬
by unexpected operating condi¬
ening
resistance
has ; to
bd
self, afford the degree of safety
tions.
and operating facility provided by
reckoned with. The formula of
15. Eliminates the necessity for
signal systems, nor can it substi¬
"Nationalization: without tears?*
stopping trains when necessary to
tute for signal indications in the
has yet to be invented.
communicate with train crews.

2. Simplicity of operation

must

be provided

and as simple to use
as the ordinary telephone.
3. Communication must be pri?
vate so that the conversations are

reason

any

of

the
.

.

.

The cost of C. T. C. has varied

from

road installations,

expected that the time and
other savings will more than jus¬
tify
the
cost
of
maintenance,
operation and interest on the in-,
is

cars.

2. Routine

■

actual economic data

no

is available on

it

made

dited; air tests can be completed
time; trains can be started
sooner
in cases
where flagmen
have been sent out and recalled.

5

While

of 30 minutes

in less

replaced

ditions.

trip on a divisional run re¬
sulting in quicker turning of loco¬
motives
and
release
of freight

.

Our

kinds of train

^

under di-

ders be held at distant points and
move
the trains as required by

It functions on

line-wire circuits.

severe

controlled

rect control of one person, he can
frequently
advance
trains
that
ordinarily under train or¬

for the purpose of securing
additional channels over existing

usually pays for the project in one
to five years.

C. L.

per

tal

1. The system must be rugged
in order to withstand the very

duces chances of personal injury
pendence upon operators
and to trainmen running ahead of train
train orders and their resulting
to open switches and running to
delays.
The
territory involved catch train after closing switches
from

so,

of maintenance and operation and
interest on the C. T. C. investment

train is made possible without de¬

varies

or

by induction.

expenses

involved in op¬

practically eliminates
element
in
directing

and radio for the past year
actually the railways have
been making tests for the past 30
years,
The first installation on
road freight service was made in
1931 and in yard service in 1938.
I. T. C. is related in fundamen¬

press

whether trains

crew

irrespective

erating a C. T.C. machine is con¬
siderably
less
than
the
older
method of
directing trains by
train orders and time-table,

discussed in the

for

the

of track

cost

Reduces annual operating ex¬
penses due
to saving in: train
hours, train stops, locomotives,
cars, train order offices, personnel,
track
facilities, signal facilities,

of the length of controlled terri¬

tory.

has been widely

receive

of the

7.

main track, to take siding, to
•leave siding or to stop. The controls and indications from the
on

by voice, as well

by signals, between trains and
fixed points, between points on
the same train and between trains,

ings required for meets and passes

one-tenth
about

about

cost

P. RR. and A.

Economic Advantages of I. T. C.

Communication,

Train

path made up of
the tracks and the existing line
wires parallel to them.
Wayside
stations are coupled to the track
and to line wires which parallel
the track. Vehicles transmit and

to

equipments, as follows: The rail¬
way yard projects are on the A.
C. L., Big Four, C. B. & Q., C. &
O., G. N., L. & N., N. & W., P. RR.
and T. RR. A. of St. Louis. Road
installations are on the B. & L. E.,

aboard.

from 20 to 50%.

on

handled

track

maintenance per year.
6. Reduces the number

to proceed

machine to the field stations

Inductive Train Communication

lated carrier wave which is trans-

with

Wayside sig¬
involved; in¬

crews

second

of

T. C.

limited

engineer when the train is in the
clear, and, upon leaving a siding,
when the hand-thrown switch has
been closed and the brakeman is

many

$19,000,-

to

with

accordance

indications.
at the point

signal

miles

of C.

road

as

application of C. T. C. on
lines will become desirable
in the post-war years.
wider

C. T. C. costs about one-fifth

000.

traingraph records the "OS" time
j of each train as it passes a siding switch.
i
All regular train operations are
carried

332

estimated

automatic

An

railway reported 93
one day.
additional trackage.

one

Saves

5.

the

number of wayside signal

these

ways

trains handled in

secured

can

ways

railways to expedite traffic
and economically.

ditions

track and

be

19 yard

hand

85%.

a

improve the competitive
position of the railway. '
18. In yard operation, instruc¬
tions can be given directly to the
engineman without interference
by fog, smoke or other conditions
which might obscure the wayside
signals. Better speed of operation

Any

principle to the familiar tele¬
phone and telegraph carrier sys¬
tems used on many American rail¬

but will vary from 50 to
Several projects have han¬
dled 60-75 trains per day on single

>

The expedited train move--

for railway employees will
in efforts being made to
handle
railway operations with
increased efficiency. It is there¬
fore believed that the field for

as

With C. T. C., a machine is lo¬

17.

result

communication

miles per
C. T. C. proj¬
increased tonnage per

15, 1945, there were
or under construction
installations on nine rail¬
with 87 equipments and four
installations on 655 miles of
on
three railways with 488

service

in

of trains is eliminated.

ments

wages

train hour.

f

■.

with reduced

The increased demands for

While

On eight

Extent of I. T. C.
As of Oct.

1.

and safety.
traffic following

communication

and

systems.

trains

minutes per mile.
3. Increases gross ton

,

signal

side

ing lines can be equipped with C.
T. C. in order to meet competi¬
tion with economy

in¬

formation as to what is happening
on the railroad and permits more
effective utilization of the way¬

mileage on light passenger carry¬

single track, \ 1

.

installations will

such

continue to be made due to

requiring the use
and without superiority of trains.
The system is adaptable to single
or multiple track, the majority of
installations being on congested

:

track

single

congested

years

generally
past four

of

dispatcher better

the

gives

road

Future

The

N.

C.

crossing

protection, number and classes of
trains, etc. C. T. C. is applicable
to light traffic lines of less than
20 trains per day as well as for
heavier traffic lines of 65 trains

lines

and Russia.
T. C. are:

highway

interlockings,

Since the first installation of C.

16. Reduces chances of personal
auxiliary to
communications injury to train crews as necessity
operation
because it for'personal contact with head end1

valuable

a

means

train

for

naling replaced, siding extensions
and track retirements, number of
sidings and signals controlled, the
number of main track switches,

either train.

without stopping

than sufficient to pay for

applied to a

C. T. C. is a term

system

occurrence and
of the meets are made

frequent

of

are

often 50%

other

Operation

Equipment lor Economic Rail

New

Thursday, November 8,-1945

& FINANCIAL CHRONICLE

THE COMMERCIAL

$10,000 per
existing sig¬ direction of trains.

'

.

Number 4436

Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

for Tiade With India

Qui
(Continued from page 2205)
highest award for valor in

:

ent

Immigration law. These In¬
are
already^ assimilated.

The

They

Out of

total of

a

life;

after

receiving

a

served

blow represented by such defeat
to grant any benefits to us
by in¬
creasing trade with us. On the

These sons,

contrary, the encouragement that

part and parcel of

are

India

expect

dians

the British Commonwealth is the

Victoria Cross.

Over 200 of their

sons

our

far, India has won
?1, as compared to 11 awards to
Australia, 7 to New Zealand, 3 to

In odr armed forces.

Canada and

under my bill, become eligible for
citizenship.
'
'
The passage
of my bill will

India to do business with
I do not wish to

create

gained in establishing conditions

120 awards

^

Paying%
1945, "to

so-

to South Africa.

1

tribute on Feb. 27,
the splendid fighting
record." to use his own words, of
a

the Indian troops in his command,
our
General
Clark, Commander

fn Chief of the Allied Armies in

Italy, said: "No obstacle has

suc¬

in

ceeded

delaying these troops
or lowering their high morale in
fighting spirit. I salute the brave
soldiers of these three great In¬
dian divisions."
cian

Truscott,

And General Lu-

who

in

was.

com¬

mand of the American Fifth Army

in Italy, said:
in

this

"The Indian troops

theater

admiration

and

associated.

the

won

of

diers with whom

respect

Allied

all

sol¬

they have been

The

they
have achieved in a long compaign
under trying conditions of weather
and
terrain
bespeak their sol¬
dierly progress. During the brief
period under my command they
have
ments

successes

executed
and

difficult

move¬

accomplished success¬
fully the most difficult operations.
It is an honor for any commander
to have such troops under him."
India
produced and manufac¬
tured 80% of its own war equip¬
ment, uniforms, guns, tanks, how¬
itzers, planes. It supplied much
clothing for our own troops in
the Indian theater, as well as con¬
siderable

ordance

British

for

troops in India and Burma. Indian
troops and labor built scores and
scores
of airfields, airfield run¬
aways, and strips for British and
American planes.
.--If we are to follow the logical
consequences of the repeal of the
Chinese Exclusion Act, then in¬
disputably, the argument forces
itself upon our consciousness that
the people of India and their de¬
scendants are deserving of no less
equal and equitable treatment, u
^
But leaving aside the potent ar¬
gument
that from the
Chinese
-

have

been

the

removed

uncon¬

bein£

born

here,

citizens.

great

psychological

economic benefits for

Indians

history behind them.
the

resent

a

foe on the bat¬
Burma, Italy, North

Africa, and against the Japanese
in
southeastern
Asia, a higher
morality demands that

we

prove

to ourselves and to the world that

preachments

our

are
*

of

democracy

not empty tenets.

We cannot, on one hand revile

the

Nazi

of

theories

racial

su¬

and, on the other ignore
the sinister implication of our im¬
migration
legislation
that
bars
one
people and not another, re¬
premacy,

strictions

based

on

moral

no

or

ethical ground save that of man's

origin.

*

-

esteem and respect.
/
v
:
It is interesting to note the ef¬
forts India is making to improve

the

will make permissible

admission

of

somewhat

less

tion

widening immigra¬

legislation.

based

But; opposition

such arguments has no
foundation in fact when we coh-:
on

aider that only 100

,

may come

in

•each year. It would'take 100 years
to admit

10,000. It would take 50
years to admit 5,000. Surely labor
has naught to fear.*
.,

It is not
*

a

special, privilege

we

accord the East Indians in estab¬
.

lishing for them
quota, nor
descension

is

it

' from

an

immigration

an

act
our

of con¬
favored

heights.

It would be, 'rather, the
acknowledgment of our sincerity
In

our

and

still

echoing

battle cries

renewal in the faith of

a

.founders.

It

is

our

there

are

istered

under the Alien




while

of

the

It

deserves
in

States

dollars

to

goods.

These

of

the

industrial

leaders

of

India

and

economic

in

putting for¬
ward
the
Bombay. Plan.
The
Doyens of the business commurii-

ity

seek

to

develop the Indian
economy and are preparing a blue¬
print for action. In a word, the
objective is to raise the standard
of living
of the masses of the
population by doubling the pres¬
ent per capita income from
$22
to $45 per year within a periodrof
fifteen years. I could
hardly be¬

The

balance

of

passing.'

The
over

coun¬

buy

converted

with

cannot

touch

the much
dollars

the
the

needed

have

been

into

pounds and
pounds frozen in the sterling

the
area

bloc

issue.

One further fact must be

tioned.
letter

William

State

L.

Clayton.

Dear Mr.

Great
of

Britain

during

negotiations

loan from

that
the period

for

external

an

(at a rate that will
not
even
pay
service charges)
would soft-pedal on the abomin¬
able

us

trade

barriers

Yet

she

erects

only recently orders have

been issued through the office of

supply

port to enable him to proceed to

India

India for trading purpose.
Heretofore Sir Grija Shanker

them.

A

deadlock

results.

it

exceedingly difficult, if not im¬
any American citi¬
to obtain

zen

visa to his

a

pass¬

when I read that the average in¬
of India is only $22 per year.

This

currencies is not

and

print

before

my

eyes

come

for

is

totally

the

most

inadequate
essential

ments of life. The Plan

even

require¬
points out

that the absolute minimum

needs

with

that

now

The

being done
the

is

war

industrialization

require annually at least $25 per
The plan emphasizes
year.
the
importance of basic industries and

India,

India

long

as

tion.

calls for the

away
over.

of

cannot go forward just so

sumption
service

development of

goods

con¬

industries

industries.

It

and

contains

the sterling bloc pool is in opera¬
The shortage of consumers

goods

is

,

It is

tion,

causing
inflation
in
an intolerable condi¬

not to

School

be countenanced

a

Board

$3,000,000
Both

Bajpai,

Agent

ered to issues visas at

Washington

citizen traders

our

were

not

,

results,

of

issue

by

more¬

issues,

produced

ding
%

and

groups,

been

that

Cincinnati,

these

competition

inciden¬

somewhat

that

callable

tender
for

was

amounts

the

winning

offer

iy4s,. and the

fer

was

same

so.

Chicago
1, 1956,

1947,

an

or

Jan.

stated

in

in

has

pronounced

issue,:; due

beginning

bid¬

among

trend

a

of

Ohio.

exceptionally

during the past month
In
the
case
of; the

of

100.432

of¬
price of 100.418 for the

a

runner-up

The remaining six

coupon.

bids, all for IV4S, were closely
bunched, with the first three be-*
ing

us.

corpo¬

-1

;

attended the other prin¬
offerings of recent date,
such as the $2,750,000 Chicago

and

Clayton:

It is reasonable to suppose

virtue

suffers;

good

cipal

School

General of
the
Government of India, was empow¬

the

recent

undertakings.

group
that

of the

many

over,

It

speaks for itself:

the trade of the United
States
suffers,
but
the
device
which England found necessary
during the war to conserve hard

lieve

successful

closed

unlike

attended

Equally

men¬

I have sent the following
to Assistant Secretary of

possible, for

to

not

tally,

for consumer and capital goods.
England cannot supply them. The
United States is not permitted by

device

has

highly
rate

months, was
underwriting

the

manner

;

close

the British Embassy which makes

this

a

which

purposes be returned.

satisfy her

of

by

in

This

against

growing demand

several

out

disposition of
Chicago
Park
operation,
the largest in the municipal field
District

pool, India has the dollars
to buy and yet is precluded from
trading with the United States to
ever

for

the
speedy
$28,475,000

was

the

than

more

trade

bond

market»
during
recent weeks, particularly
with
respect
to
the
distribution
of
new issues, most of which
were
placed
with investors in
rela¬
tively short order. Highlighting
this aspect of the much spir¬
ited performance of the market,

instance, with the huge favor-,

able

municipal

has acted extremely well

made

sterling

sterling

resourcefulness

the

and

courage

I

tries is creating a dismal climate
for all international trade.
India,

United

and

forget

centralized control of Britain
the pounds of the

the

forthrightness

back

blocked

mention

with

based

100.302

prices

on

and

of

100.32,

100.285,

respec-

t

'

As

for

the

Cincinnati offering,
this marked the city's first sale
of bonds on the market for many
years,

the

as

municipal

sinking

fund

has been the depository of
the other issues that the city has

had

occasion to sell.
With this
departure from previous practice
constituting an added incentive,
considerable

a

cates

number

participated

of

in

the

syndi¬
bid¬

ding.

unduly
hampered
in
securing
The first two bids offered to
yisas for India.
take the bonds on the same
Complaints in increasing num¬
combination of interest rates—
bers have recently reached me
$2,000,090 as Is and $500,000,
that the power to
grant these f: D/is, with the accepted tender
visas has been now summarily re¬
naming a price of 100.2199, as
moved from the Agent General of
contrasted with the second bid
India an cK that power has been £ of 100.1199. WVv
Va';
:/•
vested with the Indian Home Gov¬

a

moment longer than is absolutely

hydroelectric
power developments, engineering
and transport projects. The pres¬
ent total of 300,000 miles of roads

necessary. The Sterling Bloc pool
in effect is like a controller of

ernment at Delhi.

Thus,

mation

trust funds

now

process will
And when the

lend support to the recent revival
of confidence on the part of deal¬

beneficiary and
then saying that the money can't
be spent anywhere but where he
orders -it to
be spent.
Leaving

application finally reaches Delhi,

ers in their ability to interest in¬
vestors in issues having both in¬

referred to the Secretary of State
for India, resident in London, with

vestment

aside

consequent additional delay.
After filing an application for
a visa one will be constrained to

to

vast

is to be

,

for

program

doubled, railroad mileage

is to be increased by 50% over its

shipping

$150,000,000

to be spent for coastal

are

and

improvement

of

harbors.
The
loan

of

handing out dribbles
to

money

a

the effects

trade,

we

can

international

on

readily

this affects all efforts

Plan

from

evisages
the

external

an

United

States

of

how

see

the part

on

of India to proceed with any plan
for internal improvement.
Those

two billion dollars.

Thus, through pounds must be unlocked and re¬
India's creditor position converted to dollars as they were
and her huge/trade balances in originally, leaving India to trade
her
favor, India can realize a freely
wherever she finds the
goodly portion of the sums to aid goods she drastically needs.
in the carrying out of this plan.
I have talked at length about
Supplementing
these
financial accord
between
India
and
the
the loan,

arrangements

sources,

made for

will

internal loan

an

be

of

ten

billion dollars.
The

entire

.

plan, however, will

fall to the ground

unless there is

non-blocking of the sterling
pound; to India's satisfaction, a
point which I will come to in a
a

We,

or so.

must

United
will

be

States, but all
for naught if

our
we

efforts
have a

continuation of what is happening
in Indonesia. Britain has had the

remember

that

the

of

consum¬

visa

the

take months.

India, it will, in all likelihood, be

wait

an

inordinate period,

twid¬

dling one's thumbs.
The good people of India are
clamoring for our capital
and
consumers' goods, of which there
is a grave dearth in India.
But
Britain
apparently

that,

come

what

may,

businessman

ican

no

shall

India to show and sell his

wares.

against us.

has

territory, and in addition
the

had

hardihood

to

use

and

planes
This

equipment,

with

marked

American

plainly
insignia.

hardly be said to be

can

a

of

sessed
The

Pool

1 ;
• -v
t -'
restrictions of the Sterling

militate

ciently.

against

us

suffi¬

But now injury is added

to injury by these new visa
strictions and shenanigans.

re¬

America

contemplated when the
agreement was first made. It is

If that's what the British call
"cricket," let us play it that way.
Let us deny * British merchants

contemplated

difficult to understand the motive

access

that India will send to the United

that actuates the British authori¬
ties
in
their use of American

cial

resources

vast

are

and

tapped, her foreign balances
substantial. -It Js
States at least

a

few hundred

un¬

are

men

Lend-Lease

of

use

weapons

for training in all spheres of eco¬

Lend-Lease

nomic activity; and America will
send; to India her engineers, tech¬

sinister purposes.. It was natural
for the Indonesians and for the

nicians, chemists, businessmen and

Indo-Chinese to infer that Amer¬

this will de¬
velop a great impetus to imports
from-the 'United States, the only

ica

fighting them.
It is past
understanding how Secretary of
State Byrnes merely tapped the

country that can really meet the
Indian
demands.
Industrialized

British

that

India will foster larger and wider

taken

trade between the countries. Rais¬

remedy; the situation.

administrators.

ing

the

India's

greater

All

standard

millions

impetus

of

will

for

living

lend

for

even

import

a

and

export between the countries.

materials

such

for

was

the

on

wrist

American

the
off.

asked

and

insignia

be

That certainly did not

Government

possesses

The U. S.
the power

under its Lend-Lease contracts to

deny

to

nations receiving

Lend-

to our country.

I urge that

The

armaments

country
that

used

can

Lend-

for

such

The fact is that the extent of
issue

new

for

activity

example,

has

original
the

volume

of

for

far

from

The

light

rather
the

of

Moreover,

substantial

any

financing

andl the

now

Is

in

forecasts.

outlook

V-J,

since
been

between

of the

close

year

promising.

calendar

y,

this

at

writing
includes only five items of ma¬
terial size, with the first two, the
$13,050,000 Baltimore (Md.) and
the
$1,500,000
Detroit
(Mich.)
sales, scheduled to be completed
today (Thursday).
On Nov. 20
the city of Florence (Ala.) will
market $1,245,000 bonds, and the
other two transactions are set for
,

December, with the State of Cal¬
ifornia award of $15,000,000 to be
made ? on
the
11th,
and
Rich¬

(Va.) to open bids the fol¬
day on an
offering of
$2,840,000.
lowing
r

It

.

is

more

that

than

likely,

how¬

of

addi¬

number

tions

tions to the present list will be

Keynes and Halifax, the British
Commissioners,
that
American
business men deeply resent these
restrictions and members of Con¬

made,
quence

a

particularly
in conse¬
results of Tues¬

of the

day's elections.
Aside from this possible source

gress, certainly, are not likely to
view with much favor Britain's

number of other communities

requests for economic and finan¬
cial aid.
Sincerely yours,
(Signed) EMANUEL CELLER.

already
definite
market
pros¬
pects. /The City of New York,
for example, is not likely to long
defer
the
acquisition of funds

I

don't

wish

to

be

misunder¬

condition precedent
must rip out and do away with
these
artificial
and
irritating

must—demand

ply side.

ever,

Strongest representa¬
should be made to Lords

tive uprisings or to overrun neigh¬

boring nations.

the

for India.

stood.

Lease

and
price
attractive¬
Contributing
importantly
greatly improved senti¬
ment, of course, is the absence
thus far of any evidence of a
pronounced increase on the sup¬
ness.

mond

that the
power to issue these Indian visas
be restored to the Agent General
you urge

Lease aid the right to use United
States weapons, to put down na¬

—and

Many other examples could be
in like vein,
all of which

disappointing

India is legally pos¬
a
$2V2 billion balance

although

French

•v

cited

vows

Amer¬
get to

Only a trickle of dollars is al¬
lowed India out of the Sterling
Pool with which to buy our goods,

temerity to use Indian troops to
quell disturbances in Dutch and

American Lend-Lease tanks, air¬

We thus have a golden oppor¬
interesting to note, that
about 3,896 Indians reg¬ tunity
in India.
How
silly *' it
Registra¬ would be, therefore, not to pass
tion Act. Most of them, came in a bill like my own. If
my bill
before 1924, the date of the pres¬ were not to pass, we could hardly

w

little

mention

for

economic
development of India
.than' i00 Indians annually. The
will be of great : .advantage
to
,opposition - makes_ much of the
America.
India's internal finan¬
competitive labor* argument and;

of the evils of

A.

be

respect.

her economic and industrial posi¬
tion in the world.
I am struck
the

to

basis of morality. Let's not
that for one, moment.

mere

to

benefits

urge its passage on the

we

pound.

them by the failure of
pass.
Passage would
establish a bridgehead of mutual
bill

moment

My bill

aspersion

us.

We stand on
firm, if not firmer, ground

as

the

common

of

when

cast upon

dollars

fronts

mutual

just

They would

continued

present 41,000 miles.

tle

of

ter-*

proud people with
thousands of years of culture and

passage

commercial

'..M,

are a

on

overemphasize

the

and

passage would involve a
ribie let down to India.
'

follow

of my
bill would sharpen the desire of

Failure

us.

of

and

leaving aside the equally un¬
answerable
argument
that
the
soldiers
of
India
have
bravely

would

are, naturally
All the others here
will,

scionable stigma of "lesser breed,"

fought

223$

We

England needs our help.
want to help England, but

England as

a

trade restraints.

of

supply, there is the fact that a
are

necessary to finance some part of
its extensive public works pro¬
gram. In addition, voters of San
Antonio, Texas, previously sanc¬

tioned

the

issuance

of

about

$5,000,000 bonds for various new
capital projects.

Thursday, November 8, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

£235

mMm NSTA Notes

Leadership and American
putting forward any alter¬

natives.

the

of

need

chief

the

When

without

2211)

(Continued from page

*

evidence,of thi? we have
only to consider the support that
goods,-certain
can be obtained for what are often
covered means for meeting those
called
"crackpot
ideas"
when
needs, and they became the great
those ideas seem
to offer solu¬
businessmen of the country. Be¬
tions to problems which face large
cause they found ways to solve
numbers of people. The Townthe problems of their day, they
send Plan is a good example. It
exercised leadership in their so¬
won thousands of followers
be¬
ciety.
That leadership
carried
cause it offered a scheme, how¬
America far towards the goal of
ever impossible of practical opera¬
individual freedom and happiness.
If American businessmen are tion, for meeting the desire Of
to continue to
lead they must people for economic security. It
lost its. force following the adop¬
bring to the problems of today no

man

has

no

leadership

of

out

example, the greatest number of
novel ideas usually springs forth

where there is.most pressing de¬
mand for a new way to do things.

duties in broader terms than sim¬

I

>

not

do

want

to

I

am

any
re¬

in

may,

endangering

the

of the basic

one

tions Of all
t; When
'

:

our

very

people.

cases

that

our

the

private

threats

meet

the

If America has
proper

few

situations

will

citizens.

„*

-

#

there

ence

states

that

"their
sent

3

just

of

is

a

together.

governed."

and

chance

turned

later

out

be

to

of

benefit.
Consider, for ex¬
that in
1832 a Boston
newspaper, discussing a proposal
to shorten the customary working

want

business
encour¬

first

occupy

Answers

place, businessmen

positions of leader¬
achieved through

ways in which they met the
demands
of
society when
our
problems were principally those
of production. In attaining* those
positions, businessmen have ac¬

cumulated
valuable
experience.
They are accustomed to solving
problems. They are used to get¬
ting things done. What is more,
they have the will to find an¬

con¬
me

77:

swers.

say that, in
society, leadership derives
from the willingness of
people to

follow.

Look'around

ready

we

from

mented

14

10 hours, com¬

to

follows:

as

/

"It strikes the very nerve

of in¬

the

good old rules of our fathers
and pointing out the most direct
Course to poverty; for to be idle
several of the most useful hours

can

someone who

Bank of Commerce

today.

others,, let
where

their

/

7
1
Assistant

.

ViceDepartment, Nation¬

in New Orleans.

Joseph

P.

Bond Trading Department,
Fenner

J. A. Hawley, Resident
Securities Corp., New Or¬

Secretary-Treasurer:

Equitable

Manager,
leans, La.

M.

R.

Directors:

present

us

our

gate, Manager Municipal Department, John Dane,
Orleans, La.; Joseph H. Weil, Alternate

New

Arnold, New Orleans, La.
directors'
terms expire
Sept.

Delegate. Weil &

Officers'

and

30, 1946.

The Investment Traders Association
Mid-Winter Dinner

on




>

there

BOND

is

demand

greatest

sit

cannot

we

on

of which

many

indirectly to
ness

our

7;. ftV-ft

7';"

DENVER

CLUB OF

tion, at which two of the

meetings
Associa¬

leaders in the industry will be speakers.

details!
7"- ^ftftft

being made for subsequent luncheon meetings and

Plans are

ftft

will be announced later.
Interest

has

been

'-7 7t-.v

v

displayed in again having a bowling league.

Carl Stitt have agreed to head a

bowling committee

the members, as to whether or not they are
in favor, are invited. It has been suggested that four-man teams be
arranged, all to bowl under handicap; the captains to be appointed
by a committee, J.t is planned that the cost to each member for
three games will be one dollar, and in this way a fund will b£ avail-'
able for prizes and, it is hoped, a party at the end of the season.
Arrangements have already been

party.

vr-

■

BOND

TRADERS

made for the annual Christmas

■

-Xv! I

■'

CLUB OF CHICAGO

Club of Chicago will hold its annual Fall

Bond Traders

The

party on Tuesday, Nov. 13, 1945 at the Furniture Club of
America, 17th Floor, American Furniture Mart Building, from 5:30
dinner

Elevator service is at the west entrance to

to 1 a.m.

ing only, 667 North' McClurg Court, between
three blocks east of Michigan Avenue.

the build¬

Erie and Huron Streets,
7
•
V >"7

Calendar of Coming Events
Nov. 13, 1945—Bond Traders
Club

Feb. 21,

sidelines.

the

related only
immediate busi¬

are

We should furnish

concerns.

ourselves

with

facts, not preju¬
dices — form accurate opinions,
make plans and expound them.

of

Club o! Chicago annual Fall dinner

America.

party—Furnitura

.

,,

1946—Investment Traders Association of
Benjamin Franklin Hotel.

Philadelphia Mid-Winter Dinner,
rv.:7;,77
7:7

Henry Dalby to Manage Reginald Foss; Ei AL
Join Coffin & Burr
Dept. at W. E. Burnet

Incorporated, 70
City,
Foss,
perience, we are saying that we
formerly a Colonel with the Army
Street, New York City, as man¬
have experimented, that we have
Air
Forces, is again associated
tested and tried. The words "ex¬ ager of its department of research.
During the war years Mr. Dalby with them, and that George E.
perience" and "experiment" come
served with the American Eco¬ Arnot, J. Albert Leek, and J. Kirk
from the same root, meaning "to
nomic
Mission
in
the
Middle Miinor, formerly a Major with the
test," "to try."
East, being stationed at Cairo, Army Air Forces,, have joined
American business won its posi¬
* .77 * Egypt,
and
more
recently
as their organization. *
When

we

say

that we have ex¬

of leadership

by its willing¬
push out into uncharted
territory, to measure with skilled
judgment the risks connected with
such
enterprise, and to irpove
ahead With daring and vigor.
tion

ness

to

Now,
new

Henry B. Dalby has joined the
York Stock Exchange firm
of W
E. Burnet & Co., 11 Wall
New

Lend

-

British

Lease

East

Kenya Colony.
nected

Board

with
in

trails

to

He

the

also con¬
Production

was

War

Divi¬

the Conservation

sion.
Prior to these assignments
before, there are Mr.' Dalby ; was associated with
be blazed through financial houses for approximately

of

14 years.

He

was

,

„

•

'.

.

' .lli 1*

VJlJS

'I'??. IHIOW

h'jr.

Coffin & Burr,

Pine

Street,

that

announce

New
York
Reginald E.

representative
in
Africa in Nairobi,

as never

social-economic territories

the

me

r&tir 't,jkl

Franklin Hotel.

The Bond Club of Denver has arranged two luncheon
with the Rocky Mountain Group of the Investment Bankers

*

*>*.03 1fnrxC''

of Philadelphia will hold its

We must examine trends and ideas

1

r

Buckner

PHILADELPHIA

Feb. 21, 1946 at the Benjamin

with the former
the modern world—pathways to Stock Exchange firm of Fenner &
quote from a recent- article by
sert leadershio which ignores their Russell Porter of the "New
lew
and better forms of human 1 Beane for some time up to 1940
York
needs
<
'
pr
which is limited to Times," reporting his impression ichievement..
;
and before that with Van Alstyne,
criticizing proposed solutions kof American businessmen::,. 7 ;\ft 7 ft Let us lead the way!, ft;'. 7
Noel & Co.7-.7;;7.'
Let

E.

Errol

-

INVESTMENT TRADERS ASSOCIATION OF

own

progress.
f
If we are to exercise leadership,

Al¬

solution.

Partner,

Senior

Woolfolk,

Woolfolk, Huggins & Shober, New Orleans, La.;
National Delegate; Harold Dane, Alternate Dele¬

for

who

assuming leadership in busi¬
recognize the important prob¬
lems of our time and are moving

.

Buckner,

Minetree, Manager
Merrill Lynch, Pierce,
& Beane, New Orleans, La.

Vice-President:

plans for change of American life

are

towards

E.

President and Manager Bond

p.m.

offering our sound
appraisal of programs proposed by

Tpytic

that those

you

see

intemperance and

to

In addition to

ness

tries, to find answers to their
deeply felt needs. They will de¬

Errol

Carl Mayer and

ruin."

the

•„

elected:.

and directors were

President:

Orleans Se¬

Association, the following officers

and expressions from

lead

the

curity Traders

al

TRADERS ASSOCIATION

recent meeting of the New

great

morning and evening will

ship—positions

free

People will follow

so

surely

In

derive
Let'

be

never

us

of 'the

Already

need.

from the

every

They
new

Business Men Will Find

paraphrase that and
a

work

things must be provided
not just here and there but on a
large scale. I think the solutions
to these problems can come large¬
ly from American businessmen,.

which

governments
powers

the

tical

These

Independ¬

phrase

Let

pointing out the ten
good reasons why something Won't
work that we give the impres¬
sion we don't want it to work!
In criticizing, let us always re¬
member that many innovations
which at first appeared imprac¬

a

on

ing the hours of labor, abrogating

-

.

enjoy it healthfully. They want
raise their own living stand¬
ards and to give their children
opportunity for still higher ones.
They want dignity, self-respect
and jobs in which they get credit
for what they do.

of

,

negative ot: ob¬

appearing

intent

At

ample,

to

ex¬

* •

risks

to

is

which

.

,

In the Declaration of

important that such dangers be
pointed out.
But we should not
stop with criticism. Showing up
fallacies is a very important job,
but when business stops there, it

agement.
They want leisure and the means

will call for intervention
by gov¬
ernment in the private affairs of

its

is

dustry and good morals by dictat¬

given

leadership,

arise

It

mentioned.

have

I

day

to

but is induced by the inade¬
of those who normally are
to

ideas"

structive.

They want industry and labor

quacy

on

for reactionary elements;

to power

chief earner,»

Often is not really interference at

depended

brands
democracy has paved the way

protected against the death of the

ciety has entrusted to them. Socalled "government interference"
all,

where

countries

other

in

through sickness, accident, unem¬
ployment and old age. They want
the standards of their families

fail to accept and
responsibilities that so¬

the

£ ,!

want protection against
to their living standards

They

country

meet

«.

than that.

the

leaders

-*■> '

;
Obviously, they want a plenti¬
ful supply of low-cost products
and services. But they want more

of government will be used

ment will be exercised to the

■

1

American public today? r

aspira¬

question

'

!'«•.,

J

general, the great mass of
a
people have a pretty accurate
sense, of the important* needs of
their time.
What are some of the
needs which most
concern
the

to regulate, and to what
degree
Such regulation may become
per¬
manent. It seems certain to me that
the regulatory powers of
govern¬
tent

"*

of American Public

small business and

simply how. far in such
power

were

In

men in gov¬

The

1

Needs

Private Leadership Fails

the

J.'*-*-

>«.'J

ernment are hostile to the liberties

of

they

error.

people.

This is hot because

were

NEW ORLEANS SECURITY

prove

perience which enables him to see
the
dangers in those "crackpot

making progress
for air of us by that most basic
device of the researcher—trial and

fact, be
freedom

Which is

that the United States,
with its free enterprise system,
regulated of course for the public
good and in the national interest,
but not controlled by Government
bureaucrats and secret police, can
and will avoid the debacle suf¬
to

the problem of easing the
gathering grain, the earlier

suggesting that to¬

He

depression,

right in some cases, left in others."
The experience of the Ameri¬
can businessman is a very valu¬
able social asset.
It is this ex¬

and

am

double.

between

and revolution and he is out

war

devices
imprac¬

discarded. But at
least the inventors were trying—

warning that when man¬
agement, or labor, or local gov¬
ernment or any other group turn
to Federal aid to solve problems
they ought to be capable of solv¬
ing themselves, they should realize
that they generally will have to
give something in return.
If one
asks, for example, that the police
powers' of the state be used for
his benefit, he does not get the
advantages
of 7 that 7 powerft for
nothing. He has to pay, and often
pay

relationship

of

toil of

Fund: Edward H. Ladd, III, The First Boston

.

33 Eng¬
reaping

swer to

Trustees of Gratuity

management,

in

C;

*ftftftftftft77

.

■ >*.
production, engineering or one or Corp.; Andrew R. Steven, Jr., Bond & Goodwin, Inc.
other technical professions. . .
Delegates: Harry L. Arnold, Paine Webber, Jackson & Curtis;
He wants sustained high levels of Abraham Strauss, Strauss Bros.; John F. Reilly, J. F. Reilly & Co.
Alternates; Lee Sherman, L. D» Sherman & Co.; Theodore Plumproduction and employment at
good productive wages, in an at¬ bridge, J. Arthur Warner & Co.; Henry R. Schmitt, Pulis, Dowling
mosphere of industrial peace at Co.; Oliver Kimberly, J. K. Rice Jr. & Co.; Joseph Kane, Geo. D. B.
home and world peace abroad ... Bonbright & Co.
"
I
v. '
he takes a great deal, of pride in
Nominating Committee (Four to be selected): Leslie Barbier, G.
the fact that the American sys¬ A. Saxton & Co., Inc.; David Goldstein,* Newberger, Loeb & Co.;
tem
outproduced all the totali¬ Walter V. Kennedy, A. M. Kidder & Co.; Allison W. Marsland, Wood,
tarian regimes in the world com¬ Gundy & Co.; Frank E. Mulligan, E. H. Rollins & Sons, Inc.; Walter
bined during the war and con¬ E. Sullivan, Carl M. Loeb, Rhoades & Co.; Alfred F. Tisch, Fitzgerald
siders it a matter of prestige as & Co.; W. Foster Webster, Hard.y & Co.
' *7'^'
well as survival to do the same in
Members of the Nominating Committee are: Arthur W. Bertsch,
time of peace.
He is very con¬ Charles H. Jann, T. Frank Mackessy, Harry E. Reed and Willis M.
scious
of
the
cause-and-etiect
Summers, Chairman.
717 !
^

tical—-"crackpot ideas"—and when
McCormick found the right an¬

day's complex economic problems
do not at times require the help
of government in their solution.
But I

specialist

Union Securities Corpi; George V. Leone, Frank

& Co.

Masterson

Inc.

McLaughlin, Baird & Reuss; Gus¬

Directors; John F. McLaughlin,
tavo J. Schlosser,

the inefficiency of diluted

French, 22 American and
lish attempts to make a
machine.
Many of those
were no doubt completely

sponsibility is ours alone. What
J am saying is that unless we bear
our share of the load, the initia¬
tive will pass to others by default.
Neither

keen

Secretary: Thomas G. Horsfield, Wm, J. Mericka & Co.,
Treasurer: Howard Phillips, George R. Cooley- & Co.

the country is a

traveling around

fered

his reaper in 1831 there
records of one German, two

machines
convey

The typical businessman and
one meets when

were

show the way.

impression that I believe the

.

strated

sponsibility; must see their func¬
tion
in
society from a modern
viewpoint, and must assume ac¬
tive roles. 7:7
It
is
not
enough
merely to
"adapt ourselves" to changed con¬
ditions.
We ourselves must help
change conditions; we ourselves
must find and

McCormick demon¬

Before Cyrus

of public re¬

sense

a

for

invention,

scientific

of

field

ply the production of goods. They
must have

are

problem. The more such schemes
there are, the more important the
problem is likely to be. In the

the difficulties and
flaws in the proposals of others.
If today's managers of private en¬
terprise are to justify their posi¬
tions, they must conceive their
point

ideas"

symptoms
which
may
deserve
more respectful consideration than
we usually give them.
Their very
existence may call attention to a

content simply to

are

"crackpot

that

serve

are

of the deep

who

objec¬

same

w 7
• ftft, 'If; f>. ft 7
In this connection, I might ob¬

aspirations
Of people and ability to provide
constructive suggestions as to how
those aspirations may be realized.
Leadership will not be granted to
those

the

measures

tive/

\:tion.v;^M;'-.;:£^.r■'77 V.'-7 7:i .vL.7;
Essentials

practical

more

attained

which

plied to the problems of produc-

awareness

of

tion

imagination, no less energy,
less ability than they have ap¬

,

.

;

& co.

and so has the stuffed
a dollar sign on front.

industrialist whom

,

less

gone

shirt with

McManus

Joseph

Heaney.

J.

Michael

Vice-President:

Second

the American business¬
since 1929.
Elmer ^Gantry

come over

As

material
individuals dis¬

people was for

American

2216)

(Continued from page

has

change

fundamental

"A

to

'

Soden & Zabner Is
Formed in Kansas City
KANSAS CITY,
Zahner
fices

in

is

7

MO.—Soden &

being formed with of-:
Insurance Exchange

the

Building;>

Principals

are

Soden, Robert W. Soden and

JV P.*
V. H.

Zahner, all of whom were officers:
of Soden & Co; in the past.

77L-1 nytZ-j

•

f.j'.-

j

7-r.'t 77ti7on;j'*>x

Volume 162

Number 4436 if^Ay,c,y.

THE COMMERCIAL & FINANCIAL
CHRONICLE

>«;

223^
j

KASD Censures

Neighboring Nations in One World
determine for itself its way of life.
We believe other nations have

~

right to know of

a

the

of

our own

governed;

conviction

and

While
of

non-intervention, we
that
knowledge of what

distrust.

And

suspicion

justified.
blackouts

are

all

too

We

have

:4

the approval of local tyranny. Our

regional

policy is intended to protect the
right of our neighbors to develop

tioned by the Security Council of
the United Nations Organization.

freedom

own

in their

arrangements

Moreover,

own

we

be

sanc¬

adhere strictly to

them free rein to plot against the

the policy that cooperation among
the American Republics does not

freedom of others.

justify

It is not intended to give

in

-

concern

against

Republics have practiced the
policy of equal treatment for all
states which respect the -sover¬
eignty and integrity of their fel¬
can

the

past ten years
Fascist plans for

that Nazi and
external aggression started with
tyrannies at home which were
falsely defended as matters of
purely local concern.
We have
-learned
that1 tyranny anywhere
must be watched, for it may come
to threaten the security of neigh¬
boring nations and soon become
the

discrimination

non-American states. The Ameri¬

We have learned by bitter ex¬

;

perience

low

states.

-

Inter - American cooperation is
hot inconsistent with world-wide

cooperation among the
nations.
Regional arrangements, like the
inter

American

system,
which
respect the. rights and interest? of

of all nations.

-

If, therefore, there are develop¬
ments in any country within the

other states and fit into the world

inter-American

in

mutual

protection.
- '
We Americans can take genu¬
ine pride in the evolution of the
good neighbor policy from what
in

its beginnings in
We surely
cannot and will not deny to other,
nations the right to develop such
a

way

were

the Monroe Doctrine.

policy..'*''..j

a

Far

from

sympathized

opposing,
with, for

have

we

draw into closer and

example,

ly

association

more

with

her

Central

European
neigh¬
bors.
We are fully aware of her
special security interests in those
countries and we have recognized
interests

those

made

in

for

the

the

arrange¬

occupation

and control of the former enemy
states.

We

can

Union's security and way

of life.
And American will never join any
groups ifl those countries in hos¬
tile

mtrigue' agairi^f" the

Union. We
in

are

Soviet

also confident that

Soviet Union

the

But

of world peace.

cannot

we

recognize re¬
as a substi¬
tute for a world system.
To do
so
would
promote the common
and
paramount interests of all
nations, large and small, in world
peace.

We

r

live

in

would

hostile

not

intrigue against
this hemisphere.

join
in

us

is

national

We

;

in

isolationism.

cannot

one

another.

It is

have

the

kind

of exclusive influence and

of

special

privilege.
This

belief that all peoples
should be free to choose their own
form

of

government, a govern¬
ment based upon the consent of
the governed and adapted to their
way of life..
\
^

,,

We have put that belief into
practice in. our relations with our
■neighbors. The -Soviet Union has

; C




members

high

com¬

standards

honor

that

so

of

there

the

of

great significance

Moscow

Declaration

of

That joint statement of pol¬

1943.

icy
pledged
the
world's
most
powerful nations to mutual co¬
operation in winning the war and

maintaining the peace.
landmark in.

It was

a

efforts to create
world community of nations and

a

of

our

international

relations

public.

Admittedly, respondent's pro¬
was highly conditional.
It

:

'

United

the

Nations

London

Organization

Council

of

For¬

eign Ministers were created in the
spirit of that Declaration.
International
I

cooperation must

emphasized in

recent
Council—

my

relations

world-wide in

scqpe.

The
the

principle of the
equality of nations.
That

nations

does
are

not

equal in

influence any more
are

But

for

sovereign

mean

all

and in
than all men

power

equal in power and influence.
it

the

eignty

does

mean

equal

respect

individuality and. sover¬
/ nations,large -and

of

to

abandon

if

Halsey proposal."
(Record,
pp. 7-15).
Complainant voices a
doubt as to the legality of re¬
spondent's proposed purchase on
May 14 without prior registration.
Registration, if necessary, would
almost certainly have been impos¬
sible by that date.
Any reason¬
able

doubt

that

point would
alone have justified complainant
in refusing to entertain the pro¬
posal.
The record contains no
evidence tending to show that the
on

respondent had obtained

ruling

a

had been advised that the May
did not
require

or

14: transaction

registration.
It is beyond the
province of this committee to -de¬
termine

wh

e

t h

e r

suspension

whole

to

of

best

its

them through

carry

successful

a

it

that

sense

conclusion

to

the

ability.

There is no
reason to believe that respondent
was not ready to act immediately
its offer had it been accepted.
As regards respondent's conduct
at
the
Hartford
hearing,
the
facts

undisputed.

are

Respondent

walked into the hearing ignorant
of the price at which complainant
had decided to sell its bonds, and

case,

a

or ex¬

of

KoM-Hold Mfg. Co.

respondent's

pating ), was of the opinion that
respondent, in violation of Article
III, Section 1? of the Rules of Fair
Practice, indulged in high-pres¬
sure tactics without
proper con¬
sideration for complainant's wishes

and

without observance of ele¬
mentary principles of decency and
courtesy which are inherent in
the conception of
high standards
of

commercial

honor.

reason, respondent is
sured under Article

For

this

hereby cen¬
V, Section 1,

of the Rules of Fair Practice, and
ordered to'pay all the costs of this

proceeding.

on
Offering

.

that

the

the

on

priced

miscon¬

ception that at the hearing before
the Public Utilities Commission
of Connecticut

we

were

competitive bid and

making

a

were

trying
to force the company, against its
will, to deal with us.
The com¬
pany criticizes
our
proposal as
repugnant to the spirit and prac¬
tice of the competitive bidding
which we advocate (Reply, p. 9).
"As

clearly

appears

from

the

to

share.

shares

of

;

the

public

at

$2

*

per

!

*

„

Net proceeds to be received
by
the company
through the sale of
this

stock

chase

will

be

used

to

pur-

machinery

and equipment
and the balance will be added to

working capital.

:

Upon completion "of this finance
ing the S Qutstanding capitaliza^

:

-

of

the

will consist

company

249,505"

-

stock

shares.of

common

($1 par value).

-•«,
;
'
The company was organized in

complaint

basic

150,000

ufacturing Co. is being made to¬
day (Nov. 8) by a banking group
composed of Smith, Hague & Co.,
White, Noble & Co., and F. H,
Koller & Co.-, Inc. - The stock is

of

Halsey, Stuart at* the hearings

of

stock of Kold-Hold Man¬

common

tion

Ilalsey, Stuart's Reply

registration

implement its

instant

Boynton,. F. S. Moseley & Co.,
New York City; T. Jerrold
Bryce,

per¬

acts, the committee, by a majority
vote (three members not
partici¬

"proceeds

to

the

George N. Lindsay (Chair¬
man), Swiss American Corpora¬
tion, New York City; Herbert F.

However, reviewing the'
sequence

conclusion that respondent acted

in the

in

are:

Clark, Dodge & Co., New York
City; Philip L., Carret, Carret,
Gammons & Co., New York City;
tiate with
respondent, the latter'? James
Currie, Jr., Troster, Currie
publication at the hearing of a
& Summers, New York
City; Roy
proposal addressed to, but not
W.
Doolittle, Doolittle, Schoellpreviously shown to, the complain¬
kopf & Co., Buffalo, N. Y.; Wright
ant was clearly a
planned lastminute attempt to embarrass and Duryea, Glore, Forgan & Co., New
York City; A. James
Eckert, Mo¬
harass
complainant
into
doing hawk
Valley Investing Company,
business
on
respondent's
terms
Inc., Utica, N. Y.; Tracy R. Engle,
and regardless of all other
con¬
Buckley Brothers, New York City;
siderations.
Wilbur
G.
Hoye,;: Charles
W>
The'eommittee unanimously deV
Scranton
&
Co., New Haven,
plores the conduct of respondent
Conn.; George J. Leness, Merrill
in this matter. If the
respondent's
Lynch, Pierce,, Fenner & Beane,
various actions are taken
step by- N. Y.
C.; Julius A. Rippel, Julius
step, the committee can find no
A.
Rippel, Inc., Newark, N. J.
j
violation of the rules which would

contended

not intend

jurisdiction

by the Utilities Commis¬
sion.;; But in the light of the com¬
plainant's prior refusals to nego¬

would have been necessary.
There is no evidence to support

in-bad faith

private sale."

The members of Business Con¬
duct Committee No. 13, which had

mitted

pulsion.

by

competitive bidding, at
highest price obtainable, and

not at

right to attend the

hearing and to be heard

involved

other technical uncer¬
tainties outlined in complainant's
description of "Problems raised

as a

upon open

the

its substantially com¬

a

matter, to pre¬
desirable alternative, foF

a proposal that the se¬
curities in question should be sold

pleted private placement negotia¬
tion and subordinate its
plans to
the
respondent's ' desires. ;• Re¬
spondent had

the

ing public,

a position
compel complainant

warrant the application of such
strict penalty as

Michigan in 1932.

r

Products to be

manufactured include
liners

essential

>

plates and

the

to

refrigera¬

tion systems. Outlets will be man*
facturers in the refrigeration in-,

diistry;
will

especially?} those
products* for

who

develop

mercial and

com¬

such as

consumer use

not

were

v

deep-freeze, cold lockers, restau¬
rant

and

store equipment, farm
coolers, soft-drink coolers/
as continuing of its serv¬
ice to meat packers, dairy and
ice cream manufacturers, and to
milk
as

well

from the record, we
making a competitive
bid. but were offering a guaran¬ the various distributors of lie*
teed minimum price for the bonds frigeration
products
who > use
conditioned upon their being of¬ plates and liners for a multitude
fered at open competitive sale. of purposes.
^
'
t
In other words, we were merely
underwriting an open competitive
and

answer

:•;

.

respondent planned to
possible, complainant's
price and bad prepared
offer

complete

small.

except

Nations, like
be

That

"top," if
proposed
written

a

for

inser-

equal

individuals,

before

the

law.

principle

is the corner¬
inter-American sys¬

stone of our

as is the cornerstone of the
United Nations.

tem

Adherence

to that principle in
making of the peace is neces¬
sary if we are to achieve enduiv
ing peace. For enduring peacf is

the

concern

of

few

large states or
a few large groups of states.
It is
the concern of all peoples.
Believing this, the position of
a

the United States will continue to
be
that the
nations, large and
small, which have borne the bur¬

dens of the war must

participate

in

making the peace.
In centuries past powerful na¬
tions have for various purposes
to

divide

themselves.

the

world

left
through the centuries.
have

success

where

even

in
all

neighbors.

among

They failed, and in
a
trail
of
blood

failing

forts

that

public

a

possibly too brief a time for the
it contemplated exten¬
if necessary, "by mutual
consent"
(obviously a situation
which might enable respondent to
escape from any commitment) and

tried

world; system which we
create must be based on

was

Respondent clearly
sought to take advantage of the
information necessarily divulged
by complainant at the hearing and

sale of the bonds.

"Such

the

less

,

.."i/V;

of

world

modern

nations

<

Such ef¬
chance

have ^become
^;

_

Today the world must make its
choice., There must be one world
for all of

us

or

there

world for any of us. --

-

will

be

no

T—

-

a

sale in the

case

of this

high-grade issue, in view of the
relative smallness of the

amount

involved, would have attracted
number of bidders.

a

We might or

might not have been the success¬
bidder.
As
the
company's
reply itself states (p. 7):

ful

"'Moreover,

there

was

no

Clogher 4 Co. lo Be
Formed; NYSE Firm
As
Stock

of

Dec.

15,

Clogher

and
of

ding required by the Halsey
proposal would have resulted ip
Halsey being the successful bid¬

sociated

der.'

for

"Furthermore,

under

our

pro¬

there

was

no

company,
risk of loss on the

company, but, on the other hand,
the
company
was
guaranteed
107.50 for its bonds as against the

private

nlacement

price

of

106.980365."

Stuart further stated
that they "deny any violation of
either the letter or spirit of the
Association's rules, and contend
that

the

transaction

Harry

the

referred

to

was subject to the approval of the
Connecticut Public Utilities Com¬

S.

Stock

Graham,
Exchange.

Clogher, who will make,hi?

headquarters
a

ham

in

with

Florida,

J.

S.

has

dividual

of years.
been active

floor

was

Bache

number

broker.-

&

as

as¬

Co.

Mr. Gra¬
as
:

an

inr

.

Burke & Co. Admits

Fargo Balliet

'

Partner

Fargo Balliet, member of the
New

Halsey,

York

Clogher &

Miami,

member

posal, if accepted by the

New

Fla. and 61 Broadway,, New York
City." Partners will be Dudley J,

Mr.

->

the

Exchange firm

Co. will be formed with offices at
37 North East First
Street,

certainty that competitive bid¬

indivisable. It "is not the exclusive

'■

—as

the

month—

sions,

should

have come the Dumbarton Oaks,
Teheran, Crimea, San Francisco
and Potsdam Conferences.
And
and

under
a

purpose;

Out of the Moscow Declaration

the

registration

Securities Act within

based

exclusive spheres of influ¬

upon
ence.

degree of restraint
decency which are
for the protection of the

ethical

on

the

was

seek to

our

its

with

proposals and

,

necessary for peace
divided into spheres

world

a

dangerous than

more

national

genuine friendship. And that
kind of friendship, among nations
depends upon mutual respect for

It

exist that

and

did

even

and

concerned to promote

from

necessary

ism is

friendship not strife among neigh¬
bors everywhere.
For twice in
pur
generation
strife
among
neighbors has led to world con¬
flict. Lasting peace among neigh¬
bors has its roots in spontaneous

are

any

high-pressure tactics.

commercial
will

a

report on the London
dpeend upon intelligent compro¬
mise.
It does not require us or
any other nation to neglect its
special relations with its nearer
neighbors. But it does require that
all neighborly relations be fitted
into an organized system of inter¬

We

exact

world, and in
this atomic age regional isolation¬
one

to abandon the discredited system

appreciate the deter¬
mination of
the people
of the
Soviet
Union that never again
will they tolerate the pursuit of
policies in those countries deliber¬
ately directed against the Soviet

4.

the structure

gional arrangements

friend¬

Eastern

ments

become strong pillars

can

cooperation

**.., •,<',7

\,

the effort of the Soviet Union to

and

system,

system

which,
realistically viewed, threaten our
security, we consult with other
members in an effort to agree
upon
common
policies for our

of

required

case

of armed

attack, requires that en¬
forcement
action
taken
under

their

justify

posal

The policy of non-intervention
in internal affairs does not mean

way.

lem

pliance

freely

not

that the drafers of the
indifferent to the prob¬

were

and collective self-defense in

often

^

does

thought

accepted the
Charter of the United Nations,,
and we recognize the par amount
authority
of
the
world
com¬
munity.
The Charter, while re¬
serving to us and other nations
the inherent, right of individual

the handmaidens of

oppression.

Practice
rules

necessary
that the National
Association of Securities Dealers

with the rest of the world.

and distrust are
censorship
and

For

spelled out in the Rules of Fair

is

curity interests in this hemisphere
do not require its isolation from
economic and cultural relations

brings tolerance and a
to cooperate in the
adjustment of differences.
Censorship and blackouts, on
the other hand, breed suspicion

this

prohibiting certain action
the" part of salesmen, was not

,

standing

and

section

marriage, is not an.exclusive ar-;
rangement.
The best neighbors
not deny their neighbors the
right to be friends with others.
We have learned that our se¬

]willingness

It

price,

a

to place complainant in

on

do

people are thinking and doing
brings understanding and under¬

tion of

hearing.

which would

:

assert
other

Bankers

rules of conduct for
The fact that a similar

salesmen.

> But the
point I .wish to empha¬
size is that the policy of the good
neighbor, unlike the institution of

..
\4> . t
adhere to ithe policy

we

reasonable

forth certain

strengthen the bonds of friend¬
ship among nations everywhere.

and under¬
standing among nations can best
be furthered by the;free; exchange

exceed

Investment

sent

of

the best interests of the
company,
its stockholders and the consum¬

page 2209)

brokerage houses in 1934, specifi¬
cally included a section which set

.

that peace

vof ideas*

The

<

Code, voluntarily adopted by a
large number of investment and

acceptance of this principle by all
United
Nations
will,
greatly

firm

our

limits.

force

the Soviet system on its
neighbors.
The
wnole-hearted

deep attachment
to
the
principles
of
democracy and human rights, our
profound belief that governments
must rest upon the free consent

.

legitimate and

also declared that it does not wish
to

Halsey, Stuart & Co.

(Continued from

iU-v

(Continued from page 2213)

sideration

York

been

admitted

Curb

Exchange,

has
partnership in
the Curb Exchange firm of Burke
& Co., 50 Broad Street, New York
City. Mr. Balliett in the past was
a
partner in Mayer & Ldrin and
to

Avery & Co. and did business
an individual Curb broker/'

as

*

Arthur F. Bonham retired frorri
mission, and that the respondent
properly endeavored, in connec-. partnership in Burke & Co. as of
tion with the Commission's con- Oct. 31. •
>
—

i

THE

2238

Thursday, November 8, 1945

COMMERCIAL & FINANCIAL CHRONICLE
'

of

"One

Congressional Agreement On Tax MeasureEarly Presidential Approval Expected
\

Final approval of the bill cutting Federal taxes to the extent of
$5,920,000,000 was given by Congress on Nov. 1, when the Senate rati¬
fied the measure as it came from conference, following the approval

Oct. 30 of the conference report. With the Senate
approval the bill went to the President for his signature. a
On Oct. 27 the conferees agreed on details of the interim tax
legislation and produced a meas-"
deductions from wages and sala¬
ure cutting taxes in the calendar
ries will be adjusted to reflect
year 1946 by $5,920,000,000, com¬

by the House on

pared to proposals by Secretary
of the Treasury Vinson which
amounted to only $5,000,000,000.

rates."

the reduced

With

no

day's de¬
Oct. 24
1946 amount¬

than

more

a

bate the Senate voted on

for

reductions

tax

agreed unanimously
compromise bill, Which ing to $5,788,000,000, the Asso¬
ciated Press reported from Wash¬
would repeal the wartime excess
ington.
The bill, differing from
profits tax on Jan. 1, reducing the
the House-passed measure of two
tax bill of corporations by ap¬
weeks earlier by the adoption of
proximately
$3,136,000,000 and two
major amendments, increased
that of individuals by $2,644,000,House cuts by $155,000,000.
De¬
000. The individuals' cut would be
tails of the bill as passed by the
increased to about $2,784,000,000
House were given in the "Chroni¬
by repeal of the automobile use
cle" on Oct. 18, page 1869. The
tax, amounting to an additional
changes in the House bill which
saving of $140,000,000.
the Senate Finance Committee had
When compromise was reached
recommended on Oct. 23, were
on the question of excess profits
readily agreed to by the Senate.
tax repeal, firmly opposed for the
Under the measure passed by the
present by the House but insisted Senate on Oct.
24, according to
on by the Senate, the remainder
the Associated Press, the follow¬
of the bill was easily agreed upon,
ing was the proposed reduction
Mr. Crider reported.
The com¬
for tax payers:
promise permits the excess pro¬
Individual
income
taxes,
$2,fits repeal Jan. 1, instead of a
644,000,000.
year later as the House wished,
Corporation taxes, $2,934,000,000.
and
reductions
are
added for
Repeal of use tax on automo¬
corporate taxpayers not in the biles and
boats, $140,000,000.
excess profits brackets.,
Repeal of 1941 excise taxes on
On Oct. 29 Representative Knutsporting goods, stoves, electrical
son Of Minnesota, senior Republi¬
appliances, business jnachines, and
can on
the tax-initiating House
photographic apparatus, $70,000,Ways
and
Means
Committee, 000.

The conferees

the

on

I,

hailed the tax reduction as a boon

to business enterprise. Future re¬
ductions, he said, "will depend

bn full production and elimination of wasteful spending by the

:

administration."

Associated

Press

advices from Washington as given
in the New York

;

"Sun"

Oct.

on

29, reported as follows on what
Would be accomplished by way of
relief for individuals and cor¬
porations under the new tax legis¬

lation.
1

Boon

Individuals

for

"1. Reduce their payments by
$2,644,000,000.
"2. Sweep 12,000,000 low-income
taxpayers off the rolls complete¬
ly, and assure 10% or more relief
for millions of other persons earn¬

ing up to $50,000 a year, with
smaller-cuts, down to 5% in the
highest bracket, for persons With
incomes above $50,000.
"3. Set up special treatment for
veterans of World War II by for-

■"

.

*:

giving

enlisted

men

'

income levies

on

Federal

all

their service pay

during the war years and giving
a three-year time exten¬
sion for paying their back taxes.
officers

Corporation Levies Cut

,
'

"For corporations:
"1. Cut business levies by $3,-

bill

Senate

The

also

specified

special tax treatment for veterans,
the Associated Press reported. It
forgave taxes on service income
during the war years, and provid¬
ed an extension of time for of¬
ficers

to

during the

accumulated

taxes

pay

Provision for re¬

war.

peal of the excise tax on miscel¬
laneous items came as a result
of approval of a floor amendment
proposed by Senator Robert A.
Taft (R.-Ohio), who asserted that
the
levies
had
been
placed on
these goods to conserve strategic
materials for war production and
not
to
produce
revenue.
The

floor

other

by

was

Senate

the

Senator

H.

Vandenberg

Arthur

lief

for

the

excess

1945

small

corporations

profits, tax

income,

on

from

their
that

providing

by

the combined credits and exemp¬

tion
less

against the tax shall not be
than

$25,000. It would not
affect
large corporations which
already have more than $25,000
in credits and exemptions.
Before acceptance of the amend¬
ments by Senators Taft and Van¬

denberg, the bill called for the
following reductions, the Asso¬
ciated Press stated:

'

*

"$2,644,000,000 for individuals,
by three changes: (A) putting the
3% tax on the same exemption
as the graduated surtax levy,
(B) trimming 3 percentage points
off each bracket of the surtax, and
(C) providing an over-all 5% re¬
duction
in
the
tax
as
figured

under the first two steps.

firms

with

incomes

up

to $50,000 and two points for those

earning above $50,000."
*

The Associated Press also said:
"No

definite

date

cut-back in the
cise

is

set

| for

high wartime

levies

a

ex¬

on}. such things/ as
liquor, furs, luggage, jewelry and

.

.

cosmetics, but the legislation has
these other provisions:

Security — The tax
against employees' pay and em¬
ployer's pay roll is frozen at 1%.
Without this freeze the tax would

jump
Jan.

to

2.5%

against

each

On

1.

"Automobiles—The

$5 a year
repealed, effective next
July 1, at a saving of $140,000,000
use

i

to
'

-

tax is

automobile

and truck owners.

The tax cut, which becomes effective next July 1, applies to
next

year's taxes. It will amount

•

increase in take home pay
for millions of persons on wages

to

an

salaries.

basis

"$2,849,000,000 for corporations,
through repeal of the excess prof¬
its tax, the capital stock tax and
the declared value excess profits
tax, and by making reductions in
the graduated surtax on corpora¬
tions

The pay-as-you-go




with

$60,000

'W.

"Social

of

be solved
conference, is the treatment of

wartime excise

continued.

(Continued from first page)

taxes," the Asso¬

ciated

Press

voted

House

such

"The
the rates

reduce

to

liquor,
toilet articles, movie tickets, light
bulbs and
luggage to the 1942
level on next July 1, for an esti¬
mated loss of $695,000,000 in the
on

things

"The

furs,

as

1946.

half of

last

how¬

Committee,

Senate

ever, recommended that, the rates
be
allowed
to
stand
until six

proclamation

months after formal

of the end of the war."

When
clined

Oct. 25 the House de¬

on

to

the

in

concur

amendments

Senate

tax-cutting

the

to

bill, the measure was sent to a
joint Senate-House committee for
differences to be settled, accord¬
ing to Associated Press advices,
which pointed out that the chief
sources
of
dispute
centered
around:

insistence

House

1.

that

Con¬

at this time write only a
partial repeal of the war-imposed
excess-profits taxes on corpora¬
gress

The final

jewelry,

luggage,

that

a

and

furs

cos¬

metics.

outright
of the excess-profits levy
Senate

The

repeal
but

declined

end

for

provided

to

write

excises

the

definite

a

on

so-called

luxuries.

provision for vet¬
exempting from taxation
the service pay of enlisted men,
and providing that both enlisted
men
and
commissioned officers
Senate

The

erans,

incomes

than

less

of

a year.

con-

I take it, is industrial
peace—arrived at by consent ol
the parties involved, and not im¬
posed by one party upon the other
or by the Government upon both,
iou
are
seeking labor-manage¬
ment relations that will be lasting
—and if they are

lasting they have

profit both sides, and the public
large. In short, your objective
is
to
find
ways
and means of

to

at

-

.

be highly undesirable in the light
of

national debt.

our

There

which

two

are

the

perspectives

relationship

in

between

prices and
One

wages may be viewed.
the question that
every/

is

plant executive must keep in mind
—price minus cost equals profit.
The other equation of
prices and wages and profits is the new na-,
tional concept which we all mustr
face.
This is the concept of the

nation's

universal col¬
will promote
the optimum not only of employ¬
ment but also of production and

budget,
which
makes?
that, in order to avoid the
deflationary spiral, the sum total

consumption.

must

and

real

reaching

lective bargains that

Any bargain, to be a real bar¬

gain, must satisfy the real needs
of
labor, management and
the
consuming public. It is doubtful
that a collective bargain can long
endure if it favors management
the

at

the

of labor, labor at
management, or
expense of the con¬

expense

of

expense

both

the

at

suming public.
last¬

kind of real and

the

Now

definite
cut-off date should be provided
for
the
high
war-time
excise
levies on such things as liquor,
belief

House

2.

objective of this

ference,

tions.

ing bargains, the socially valid
agreements
that
will maintain
harmony in our industrial struc¬
ture—these
must
by
definition
based

be

knowledge

on

on

long

not

will

un¬

If
they
are
not
reasonableness, they

derstanding.
founded

and

of

be

benefit

to

and they certainly
will not meet the controlling re¬
either

side;

of serving the public

quirement

interest—which is simply the gen¬
of the whole nation.

eral welfare

the

believe

We

facts

necessary

agreed on; we
and must reach a

and

found

be

can

may

have three years in which to

believe

pay

deferred taxes, was accepted

-

clear

of

the

nation's wages and profits

provide

total

a

purchasing
buy the

great enough to
nation's output of goods
vices.
power

In the present
of

wage

earners

and, unless

and

i

declining

are

substantial increase

a

in wage rates is
granted,
cline will continue into
such

this de¬
1946

to

that

extent

an

ser¬

situation, incomes

prices must
inevitably be affected. Even with
an increase of
10% in basic wage

rates—say, 15% on the average in
manufacturing industries and corr
respondingly smaller increases in
other

activities—total

and

wages

salaries will be down from $20 to

$25 billion from the total realized
this year. Profits before taxes will

down proportionately, but cor¬
profits after taxes
will
probably be unaffected and perhaps even show a small gain. If

go

porate

such

increases

in

rates

wage

are

not

made, the decline in wage and
salary
incomes
will
be
even
greater
then

than

will

billion.
There
downward

$25

be

severe

general understanding among our¬
selves and throughout the coun¬

the conferees.

by

The total of the bills

providing
$5,920,000,000,
accounted for by the

cuts

amounting to

has

been

conferees in the following manner:

Reductions for Corporations

profits tax __$2,555,000,000
Corporate surtax
347,000,000
Capital stock tax
234,000,000
Excess

Total

$3,136,000,000
for Individuals

Reductions
Income

tax

Automobile

use

___._$2,644,000,000
140,000,000

profits and prices.
spell out here will
need reexamination as time goes
tween

The

$2,784,000,000

Besides

outright repeal of the
profits tax on Jan. 1, com¬
promise on corporation taxes was
achieved by
mixing the treat¬
ment provided under the Senate
and House
versions on regular
corporate income taxes, increas¬
ing the reduction in these taxes
from the $63,000,000 stipulated in
the
Senate
bill to $347,000,000;
excess

the

version

House

them

surtax

by
on

had

rates

was

arrived

at

by

allowing House reductions on net
income up to $50,000/-and then
mixing the treatment* under both
bills for net income above $50,000. The effective rate range for

corporations with net incomes of
less than $50,000 would be from
21 to 38% under the adopted plan,

him.

this

But

would

be

a

very

shortsighted view of the situation
—for

there

vulnerable

are

-

areas

change—be¬ .in manufacturing and especially
in the trades and services.
Fur¬
cause there is only one thing that
is absolutely certain, and that is thermore, the prices received by
that conditions will go right on the largest single group of pro¬
changing. But we must find these ducers, the farmers, are most vul¬
conditions

and

answers

nerable of

now.

immediate

the

future,

we

involving price
controls until production of peace¬
time goods comes up more nearly
still have problems

to

us

None

demand in certain lines.

of

wants to

flation.

see

any

Neither do

further in¬

we

structure.
A question

of fact, therefore, is

how far

we

natural

desire

of

can

go

of

in meeting the
labor

avoid

to

prospective loss of
wartime wage income without un¬
some

its

and

duly squeezing management

stockholders between rising

wage<?

When we find
shall then have
found a real basis for compromise
—-for a
real bargain of lasting
value to all parties.
anjd ceiling prices.
the

-

facts,

If

we

we

maintain

levels

of

that

all

1946

be

the

on

is estimated
by the end of

it

income

would

third

the face of de-^

in

incomes;

farm

reduction

basis

in

the

without

almost

down

of

corporate profits and

any

price

affect the whole

seriously

dining

even

want

considerable deflation that would

reduced

$405,000,0(10. Compro¬
corporate normal and

wages',

answers we

In

Total

can

we

pressure on prices after the Spring
of next year, and profits will be
correspondingly endangered.
try of what lies ahead.
Management, in some indus¬
The question of greatest interest tries, may feel fairly secure in its
established
to the public in the labor manage¬
prices—and
if
the
other fellow is not in the same,
ment field is, of course, the old
problem of the relationship be¬ position, then it's just too bad for

on

mise

rates for

*

points

(R.-Mich.), calling for limited re¬

.136,000,000.
"2, Repeal outright, effective
Jan. 1, the war-imposed 85.5%
excess profits tax; eliminate the
capital stock and the declared
value excess profits tax; and re¬
move four percentage points from
the graduated normal and surtax

*

major

Senate bills, which must
in

amendment

adopted
proposed by

the

difference between the House and

a

a

sustained

one-fourth

total

bill;,

wage

for

allowance

a

*

price decline.

Now, wages and farm income
together comprise the large bulk
the

of

purchasing
markets;

power

domestic
that

no

situation

these basic

I

and
in

in

our

submit

which

both

of income

sources

are

greatly reduced will long permit
the

maintenance
of
industrial
prices and profits, no matter how
a backlog of demand may be
„

large

thought
expect

to

that

No

exist.
its

group

can

position

will be
long protected if the whole of the
nation's income declines.

Management in

pro¬

general

surely'

prefers steady price levels. Iii i&
ef¬
plans for reconversion and the in¬
fective, purchasing demand—levels
stallation of necessary equipment
anywhere near approaching full
and the accumulation of necessary >
employment—there are clear in¬
materials
supplies,
management
dications that basic wage rates can
rate.
should be able to proceed without
be raised substantially in' many
Excise taxes, under the compro¬
fear that its capital will be inw: *
mise bill, are to be according to industries without generally in¬
paired by declining values. Re¬
the Senate version, which con¬ creased ^prices and without im¬
covery will be assisted by confitinues these taxes subject to the pairment of the profit position. dence in the
stability of prices •
present law which automotically Unless this is done, the contrast and values. Lack of such confi-;
provides for their abolition six between profits and other forms dence will contribute to a de¬
months after the President pro* of income would generally be so
business
quickly flationary spiral which will mak^- claims the end of hostilities.
The extreme t that
much more difficult the realizaIn
House would have repealed the would incur public disfavor.
tion. of our basic objectives.
* «
wartime rates as of July 1, 1946. fact, if' wage rates are not in¬

while

corporations with greater
than $50,000 net income would be
subject to a 38% combined rate,
compared with the present 40%

duction and wage income and

,

.

"$140,000,000
automobiles

for

and

owners

boats,

repeal of the $5-a-year
One

effect

of

of

through

use

tax."

the

Senate-ap¬
proved changes in the individual
income tax, the Associated Press
pointed out, was to remove an
estimated 12,000,000 persons from
the

rolls.

Of

the

36,000,000

re¬

maining, 32,000,000 in the lowest
surtax bracket would

ly

the

same

relief

get precise¬

as

under

the

' 7

'/

,/i

>

1;i

.

As

far

as

individual

income

concerned, the confer¬
ees agreed on the Senate-version,
eliminating about 12,000,000 tax¬
taxes

are

payers :ih; the lowest brackets by
the
method of substituting .the

creased,
he

prices undoubtedly will
down, and this .would

forced

So here

a

we

are

"Crossroad.- If

at some kind of

vou

men

of

man* *

agement and of labor fail to work

family under the present "nor¬
mal" tax. - In addition, 3 percent¬

out

the procedures

.

J"-/.' f

;

i

■-

including

points are cut from the rate
applicable to each surtax bracket,
and ^understanding—theft,1whether
and the amount of the tax due
under the new basis will .fbe re¬ you will it or hot,"you will'have
duced by an

surtax

exemption of $500 for each

taxpayer's family
himself, for/the single
exemption for thewhole

member of

a

age

additional 5%.

'

and practical
machinery for reaching 5 real and
lasting bargaining- agreementsbased
upon
factual knowledge i

$500

House bill, with a combined nor¬
mal and surtax rate of 19% on
taxable income above exemptions,
rather than 23% as under
present

'aw.
•s,i

.

chosen

the

road

that

would

lead

..I'
f!,-:..

eXc'■•

Volume'162- Number 4436

G. I.

page

2207),

to Confirm the

reports of exten¬
sive abuse in Germany.
V
To prevent GIs from sending
home the gains of theft and prof¬
iteering the Army has sought to

«

currencies; and subsequent efforts,
all too often successful, to remit
the proceeds home to the United
States.

Sometimes the sale of such

-goods is made on the legal mar¬
ket; sometimes, on the black mar¬
ket, when the merchandise sold
is

on a

rationed basis,

limit

The

problem is not solely an
American one, of course, since the
troops of our Allies ,have also seen
The

goods

which the soldiers sell, apart

personal
watches

from the
wrist, Let

like

property
and

GI is

the

ingenious fellow. As one of
them put it to me, "There is al¬
ways an 'angle.'" If a GI cannot
himself buy all the dollars he
wants at his finance office, he Can
go to another finance office. He
is not required to do business at

v< <

opportunities.

But

an

•

the

remittances.

window

same
us

all

that

assume

the

time.

certain GI

a

1

may

finds his local finance officer in

be obtained from Army stocks Or

Frankfort too inquisitive. He can
either come back at another hour,

fountain

pens,

by purchase from post exchanges.
Part of the problem, too, re¬

when someone else is

lates to the sale of, American cur¬

he

Europe's black markets.

money

invasion

rency on

some

-Whereas

occupation
currency is used only in territor¬
ies conquered from the enemy, the
'problem of controlling illegal cur¬
rency

or

when he gets to Wies¬
Paris or London.

more

baden

or

Alternative
marks

into

transactions by members of

duty, or

on

change a small amount of
at Frankfort and change

can

of

ways

other monies

or

dollars

to

are

a

confined

forces

to

is

Finally, it should be pointed
out, the problem is not confined

man

told

sent

nance

/

*

hands

of

[as to

the

and

fellow who had

a

Another told

show

to

camera

for

his

stay

in

Money That "Cost Nothing"
What

struck

American

in

me

other

and

talking
soldiers

to
in

the complacency with
which they viewed the matter of
stealing
from the
Government.
Taking a few pounds of coffee to

Europe

the

like,
have made it easy for GIs to get
their
hands
on
marks, francs,
•guilders, crowns, etc.
Naturally
the boys yt&nt to send their in; come home in the form of dollars,
!
which creates a problem for,.the
"Army.

sell

on

was

the black market for local

■

arrange

to have

part of his pay deducted
and sent to his home, abroad he
1 is paid, in the currency of the
; country where he is stationed. In
France he is paid in French francs;
!

I

.

a

[hears in

travelling

abroad

other

articles.

He

pleased

"Not .at all,"

was

about to call in.

he. replied, "I'm go-,

ing to turn this in to the Army
finance officer tonight in Brus¬
sels."

Military personnel whose duty
requires them to shuttle back and
forth

one

between

certain

sometimes make

gives

the

it.

I

of

truck

a

countries

good thing of

told stories in

was

drivers

and

Belgium

fliers

who

made

a regular business of carry¬
watches
to
Berlin, selling
them
there,
and
returning' to

,all the facts are not available
here.
Some fragmentary figures

ing

[have

Brussels for more watches.

*•

out of Europe, enough

come

Wv

us

•

;

-

'

^

Always

back into social-economic jun-

,gle<
,

were coming in to cash
My informant would simply
save them the trouble of
standing
in line, by cashing their
money

them.

orders for them.
From time to

time

the

newspaper, "Stars and
throws a little light on

Army
Stripes,"

what is
abroad in this field of
enterprise. Last July that paper
reported
that
33,000
American
troops in Berlin paid about $1,000,000 in the form of marks and

going

on

home

sent

through
the
Army
$4,000,000 in American
Any non-governmental em¬

about

funds.

ployer

would

broke

go

that

on

kind of business.

The boys were
cashing their mark profits
on
trading with the Russians.
•

an

tect

inadequate effort to

the

American

Army issued
110% of

taxpayer

order

an

pro¬

the

limiting to

soldier's unalloted pay
the amount he might remit home.
The

a

commanding

officers

were

made responsible for the enforce¬
ment of the restriction. !
Appar¬

ently,

the

110%

rule

does

not

'

.through full production, full em¬
ployment, with higher real wages
and more lasting profits than we
ever

dreamed of before.

Army
a

"Angle"

whose finance

sympathetic with
"angles." *'*

officer is

GIs

may

need some

In Paris I-was standing with a
at Pigalle watching the local
black market itrcurrency at work.
A squad of-six'or "eight MPs were

abundance.

i

from

Only the U.

S.

Treasury Loses

The "Stars and Stripes" of
Sept.

20,1945, carried

story from Ber¬
caption, "Very Fru¬

lin under the

a

Yanks in Berlin Save More
Than They Earn." Calling GIs the

gal

"thriftiest soldiers in the world,"
the article reported that in
August
some

30,000

Berlin

American

sent

home

exactly $109,234
were

paid.

well

within

troops

in

$3,163,519, or
than they

more

This* however;

was

the

permissible $3,348,646 they could have sent home

during August under the full "un¬
alloted pay
article

plus

added

tioned above

10%" rule.

that

drawn

in

out

card

its

the

10%

The
men¬

receives

sent

the

to

home

from

money
Berlin

the
or

otherwise banked during August,
our
GIs there spent $305,418 in
the Post

Exchange, the "Stars and

Stripes" learned.

Sept.
12
Stripes" carried
lin

which

was

the

"Stars

next

day de-

On the other

get

is

convertible

Col.

Bernstein

our

plates

ficance,"
would

said

Just
was

how

incorrect

The
that

the

apparently could not be
J

Sept. 12 article predicted
Army would institute a

the

card system with the aim of lim¬

iting GI's home remittances to the
unencumbered part of their pay.
It quoted Col. Bernard Bernstein,

author of the card system, as de¬

scribing it

designed to check
profiteering by American soldiers
as

payers. An important contributing
factor was the sale of watches by
GIs

to

Russians

and

fantastic, prices,

the

Germans

"Stars

at

and

Stripes" reported.
One

adding:

want

Russia's

"Obviously

the

their

presses

and

were

with

wild

the

like

watches

other

and

Army Finance Officers

are

he

will

want

the foreign money into

to

♦United States Forces
'

offer to enter,

or

arrangement

or

trans¬

action

providing for payment in
delivery of a currency other,

or

than

Marks.

The

.

schedule

includes denomi¬

printing.

y2 mark to 1,000
denomi-[

1,000-mark

issued

never

by

What gave the picture a lop-sided
twist was the fact that the Rus¬

United States forces and therefore
is the only denomination of Allied

sians

Military Currency which Ameri¬

reportedly

take

to

marks

do

under¬

not

for

convert

their

into, rubles.

can

troops

Under

Army

Finance

Officers

not accept.

such

will

.[;.[.., •[.

conditions the marks the Russian
in

Germany, covering both
and

current

have

lose

The

has been paying to its sol¬

army

diers

to

be

their

overdue

in

back

pay,

spent in Germany or
This gives the

of

added

an

bidding

for

incen¬

the

Americans

wrist

until

a

Mickey Mouse watch with a black
face, provided it ticks, can be sold
for $700 in marks. Naturally, Mr.

Are

the

tell

was

Money
more

„

facts

about

}uC?

was

the

officer

himself,

fi-

he; told

t

me

that finance officers certainly

do
accept Russian-issued marks from
GIs "and why not?"
". •
'
Lt. Col. Kelly

District,
qouted in "Stars and Stripes"
July 9, 1945, as saying that
there never had been any thought
of
refusing
to
accept
Russian
marks at American Army finance
offices, the only qualification be¬
ing that our troops must offer a
good explanation if they attempt
to send home an "unreasonable"
of

~

Soviet-issued

"reasonable"

seems, no

notes.

it

amounts,

explanation

was

asked.
.

~

Col. Brazier denied
the Russians

rumors

issuing

were

v

thatj

occupa¬

tion marks on'a wholesale scale.

had been

Col. Brazier

saying

rency

was

that

would

1.

ited

1 soldiers will be lim-

to

sending home little more
than their monthly unencumbered '
Pay*"

Brazier, fiscal of¬

of

amount

Nov.

as

after Nov.

John J. Moore Dies

ficer of the U. S. Berlin

was

For

on

were
interpreted in
meaning that the boys
Were to have a one-month period
1
Qf grace during which to get their/
money
home before the Array
clamped down. Said the "Stars
anc} stripes": "The probability is,
I
according to fiscal of{icers> that

out when

Anny finance officers most
assuredly
do
not
accept; such
marks from GIs. When I reached

introduced

based

Europe

but his assistant told me

«

that

American

He

be

together, the official press1
on which the two stories,

were

re-

occu-

by

officers.

restrictive financial controls.

releases

,

marks

pation

6, it reported,
"WD to Tighten
Controls," that new and

Taken

the

„

Oct.

Would

Facts?

told, would be able to

the

me

On

under the caption

Last week I called up an officer

who, I

[C

Sending Money Home—If ^'Legit¬
imate.' "

Hanes' disclosure caused questions
to be asked.

What

Latest Word

Pending
clarification
of
the
Army's policy on the cashing of
GI
profiteering
gains,
reliance
must again be put on the "Stars
and Stripes'" Frankfurt reporter.
On Sept. 30, that newspaper re¬
ported
"No October Limit for

value.

soldiers

watches

dol-

European

enter,

was

as

Theatre.

or

any

The

printed in Philadelphia.
The rumors mentioned developed
after one American infantry com¬
pany sent home more than $8,000
during its first week of contact
with
the
Russians, "Stars and
Stripes" reported.

chances

into

nation

transactions.Generally,

the

make

marks.

the personnel of the Finance Of¬
fices all over the world are as

turn

•

as

nations of from

overall

accomodating as possible to Uncle
Sam's travelling warriors, If a GI
some
cigarettes
at
fancy
prices in guilders, marks or francs,

Prohibited Transactions

marks the Russians

were

t

Except

ing dollars for the soldiers' marks,
they were in effect redeeming the

He expressed the view—evidently

sells

v.

authorized by Mili¬
tary Government, no person shall

the
giv¬

were

any

4.

from

if

shall discriminate

Allied

"[

"run¬

articles

person

Article H

turning out on
Certainly
were spending
water, buying wrist

soldiers,

Military

1

are

and

American

legal

Military- Marks
other legal tender Mark
currency of equal face value.
•V ?'v '"V
,[' [
'
\ i'

Russians in Berlin
marks

No

and

marks

erroneous—that the Russian marks

card

3.

between

mile-a-minute basis."

a

the

be

.

Allied

for

Sept. 9 that the

marks

shall

Mark notes
will in all respects be equivalent
to any other legal tender Mark
currency of the same face value.

Russians had been supplied Amer¬
ican plates for the
printing of oc¬

hog

the

the

2.

the currency."
Mr. Hanes, it will be recalled,
disclosed in the New York "Jour¬
nal American" of

cupation

in

of

in

Marks

specified

hereto

any

we

plates

same

Military

it I

■

Marks

occupied territory
Germany for the payment of
Mark debt.
>•
'

of

use

thing the above-mentioned
system would do would
be to limit exchanges of one cur¬
rency into another. At present a
GI travelling about Europe can
change
his
money
successively
into francs, pounds, lire, guilders,
dollars, etc., with no check on his
new

tender

"without signi¬

was

nance

rect."

into

Army redeeming
Russian-printed occupation marks,

"premature and not entirely

learned.

Allied

I

Military

denominations
schedule

dollars."
Taking issue with John
W. Hanes' recent statements about
the American

demption of Russian-issued

story

jJ Article
Allied

hand, what¬

ptibed by USFET's* chief of staff,
Lt. Gen. Walter Beall Smith, as
cor¬

for the military gov¬
Germany contains inj
part the following provisions;
[,

of

ernment

Russiamsoldiers'; pay Is in occupa¬
tion
£ currency convertible into
we

1

reading of
law governing Ger¬
a

Law No. 51

G5, USFET,

military marks

ever

from

today that American Army
officers have no right to
discriminate against
marks put
into circulation by the Russians.

pay their soldiers the same as we
do.
However, only part of the

and

story from Ber¬

a

the

currency

in the same manner as we do* and

Cards to Check GI Profiteering
On

clear

finance

of the Finance Branch

tive

addition

is

many

told the "Stars and
Stripes" that
the Russians "print

ury[:V-;j[%
In

the

Col. Bernstein, a former U. S.
Treasury lawyer who is now chief

rubles.

and

*.•

It

book.

pass

''

draws

or

"Stars

Eisenhower Order Is Clear

money or remits funds home. It
will function much as does a bank

Russian

boys

;

will

holder

Government to the foufl

Red Army pay in Germany rung
from 52 marks per month for
pri¬
vates to 5,600 marks for majors,

has

sums he

German

occupying
powers,
Stripes" added.

foreign currencies.
be inspected and
brought down to date each time
The

designed to take
care of gambling gains.
According
to the figures quoted,
nobody loses
in Berlin,—except the U. S. Treaswas

the

home, etc., and

ning

GI

that you are pushing
.ahead; into the new frontier of
knowing

...

is'no

trying'to, prevent just that,

fellow

not

In

down this road, you
here will have the satisfaction of
us




:

good unless sometime you are able
to turn the foreign currency you
get
into
dqllars,
rather
than
watches injBelgium.
With the

trial peace through a mutual coq.cern
for the general welfare—

guiding

an

Of course, such a business

^

The other road is that of indus¬

have

work.

Col.

summarize

will

holder's financial- status, his pay
received,
remittances
obtained

of

In

at eventual cost to American tax¬

impression that it must
[be quite extensive. Unfortunately,
[the statistics which might reveal
one

quite

Government

'

stories

and

camera

in

with

Belgium I met an Amer¬
ican officer who had just spent
two
days in Holland and was
bringing with him a fat bankroll
of ten-guilder notes. I asked him
whether he was not making a mis¬
take in bringing out of Holland
paper currency which the Dutch

To assist him in

the

soldier

Also in

change currencies for its men. I
[saw such facilities operating in
[Norway, Sweden and Denmark,
•as
well
as
in Belgium, France
Germany and England. The sys¬
tem was designed to meet the
[legitimate needs
of
our
men
.abroad. But abuse has crept in,
to

Canadian

a

by
selling
some, locally-scarce
goods which had cost him nothing.
Perhaps Canadians find their fi¬
nance officer a bit tough when it
comes to giving dollars for francs.

Navy provides its men similar
[facilities. Thus, wherever the ATC
[flies the Army undertakes to ex¬

listen

at the
be

may

with a wrist
watch he had just bought with
Belgian francs which he said had
cost him nothing. What he meant
was
that he had got the francs

[Offices all around the world. The

to

met

was

.this the Army has set up Finance

and

be converted
of exchange

Brussels whose blouse bulged

in Germany his pay is in Allied
military marks. If he draws more
pay in
local currency than he
.spends in the country where he
.is stationed, or if he leaves that
country, he is entitled to convert
[at the official rate of exchange
[such of his pay as he has not ex¬
pended into the currency of the
.country to which he is going or

[else into dollars.

rate

just petty larcency, but it differs
only in degree from the hijacking
of whole truckloads of gasoline
or
other Army supplies, such as
went on in France right in the
midst of that country's liberation.

Army Is in Foreign-Exchange

V',' •;
;
Business 4
Whereasa soldier may

to

currency

official

•

t

orders from

money

home and

of a

me

Germany.

the relative values of dif¬
currencies

of

$36,000 before the Fi¬
Officers
started
asking

GI who had got $15,000 out. Rare
is the GI who has not at least a

public everywhere
when the fighting ended, the large
military expenditures since V-E
[Day, the varying degrees of cor¬
ruption of public morals as a resuit of the war, the uncertainty

ferent

me

questions.

-

The scarcities of goods abroad,
'the abundance of currency in the

'

received

home

to Europe.

j

had

friend

In

abroad

:

•

me
he had a pretty good
angle. This was to stand in the
Army PO and wait for GIs who

not

territories.

such

presum¬

told

converted

have

civilians*

some

J

by

Bernstein

ably for American cigarettes il¬
legally acquired. My companion

getting

do it, or buy a war bond (that's
patriotic), or buy some goods at
countries
like
Belgium, France, the post exchange or elsewhere.
the Netherlands, etc., there have The trouble with buying goods
with local currency
been active black markets in for¬
at the PX
eign currencies such as the dol-, is that there is always the tempta¬
tion then to sell that goods and
lar and the pound. A soldier may
so start the process all over again.
come
by
the
local
currency
One hears really fantastic stor¬
through the sale of his own coun¬
ies of GI "profits."
One enlisted
try's currency.
armed

our

searching

22W

lars at the full rate of
exchange.
The
card
mentioned

Profiteering in Foreign Exchange

'

(Continued from

THE COMMERCIAL & FINANCIAL
CHRONICLE

all

be

further quoted

invasion

withdrawn

cur¬

and

replaced by money issued by the

John

J. Moore, retired partner
brokerage firm of Frazier
Jelke & Co., 40 Wall Street, New*
York City, died at the age of 79.'
Mr. Moore, known to his friends
as
"the Judge"
because of his
in

the

,

keen interest in New Jersey pol¬
itics, retired a year ago from the
Company with which he had been
associated for nearly 25 years. He
began his career in Wall Street as
a railroad bond specialist for the
fjrm 0f Winslow, Lanier &
Company; among his clients were
numbered J. P, Morgan, the elder;

Jacob Schiff and John D. Rocke¬
feller.

-

•

.<

Paul G.
Paul

G.

.

Courtney Dead '*
Courtney,

Vice-Presi¬

dent, and director of Lee Higginccn

Corporation,

is

Courtney made his

dead.; Mr.
headquarters "

at the firm's office at

Street, Boston, Mass.

50 Federal

,

Thursday, November 8, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &
2240

State Their Aims as Conference Convenes

tabor and Management
2

2203)

(Continued from page

'

responsibility. Nor should
we try to so deceive the people of
this
country.
When we agree

of

IRA MOSHER

originally

phrased the objective of

conference. > ■
:..
Management and labor have a
interest in substituting
"industrial
peace
for industrial
warfare.
Never in our country s
this

common

wholeheartedly,

proudly

can

we

point to our joint achievement. If
we disagree in any details of our
agenda, we must face the facts and
tell the truth, each as we see it.

With
so
many
hopeful
eyes
home-front peace focussed on these deliberations,
been more essential. Quick recon¬ we dare not do otherwise.
version and the early establish¬
This
conference
holds more
ment
of high production levels promise of genuinely constructive
are the only trustworthy defenses
results than any conference of the
against
the inflationary forces kind that has ever been held. Pre¬
which
press
upon us from
all vious efforts to develop laborsides.
management understanding- have
So it is that all the management resulted,
all too frequently, in
♦-delegates here today approach the pressure upon management and
task before them, united in hope, labor to ratify a compromise de¬
of one mind in purpose, and with cision imposed from the outside.
•a common determination to think,
This, on the other hand, is a
i
and act, as "men of goodwill" who genuine
labor-management con¬
can, and must, "resolve their dif¬
ference. The agenda has been de¬
ferences for their own and
the veloped entirely by the manage¬
common welfare's sake"—if I may
ment and labor participants.
As
borrow another trenchant phrase
a result, the meeting opens in an
'from Senator Vandenberg's letter. atmosphere of confidence that our
/ I think that I would be remiss,
deliberations will be along prac¬
on
this auspicious occasion, if I tical lines.
devoted the brief time at my dis¬
If we can hold to the under¬
posal to expressing merely the standing that Government is mod¬
hopes of the group I am privileged erating — not dictating — the dis¬
to speak for today.
For we come cussions held at these sessions,
into this meeting with something
there is every reason to hope for

history has such

-

'

'

than hope.

more

We come with a wholehearted
determination to find the answer

]

■

'

the peace.
come

with

a

people everywhere.
come with an overwhelm¬

all

can

has

ference

deep conviction
that labor unrest is bad—for us,
for the workers of the nation, for
We

It has been well done.. To
that initial preparations
influence the result, this con¬

ning.

the extent

be

to

reason

every

successful.

experience, par¬

It has been my

ticularly in recent years,

that most

conceive of a conference
between labor and management as
ing desire to provide the highest nothing more than a meeting to
possible standard of living and the consider whatever demands labor
greatest possible degree of secur¬ may elect to press. I think, there¬
ity and protection for all,
fore, that it is essential to a full
"We
come
unequivocally com- understanding by the public of the
tnitted to the principle of free real character of this meeting, that
collective bargaining despite our I tell
you, in honest New England
serious misgivings as to the man¬
fashion, that we are not here to
ner in which it is being practiced.
"meet demands" or to defend a
We come conscious of the dig¬
flock of "sacred cows."
nity of labor and the right of
:
On the contrary, we are ready
workers to organize; firm in the
to present to the delegates assem¬
belief that management must have
bled here a program of sound,
the right to manage; convinced of
constructive
proposals
covering
the
integrity of the gentlemen
every
item listed on the agenda
with whom we are to negotiate;
of the meeting.
We are ready to
sure
of the fundamental sound¬
confer, in the real meaning of that
We

people

'

"

,

•

'

millions

the

of

ness

workers

of

that they represent.

We

»

faith that what
;

an

abiding

accomplish in
will eventually

we

the days to come

be translated into terms of secur¬

ity* and opportunity and a better
life
for
every
American who
works for a living.
And finally, we come here with
an
ideal which we, in common
with all true Americans, will never
compromise—the ideal of individ¬
ual enterprise that is the essence
of our cherished way of life; the
very
foundation of the system

'

-

•

has

which

These

are

these

our

resolution

to

see

word and act here

every

is, first of all, in the interest of
the public welfare and for the

'good of
'

1

As I

poses

fine

our

employees.

it, one of the real pur¬
of this conference is to de¬
of

areas

disagreement
management,

agreement

and

between labor and
that the American

so

people, in whose hands the destiny
of all labor and business rests, may
reach an informed and just deci¬
sion.
For this reason, I sincerely
hope that we will find great areas
in

which

all

existing differences

between these two groups can be
resolved.
For the same reason, I
also
of

sincerely hope that any areas
disagreement that may be dis¬

closed

here

—

back up our
hopes for this conference with
specific suggestions that we have
measured
carefully against the
ready

are

yardstick of the public good

and

If

there

come

trust

we

that

be because
of a

liberal

and

progressive program.

r.t

not

be

will

because

come

we

rigidity of mind or heart.
It will not be because of any limtation on our faith that all things
possible between men of goodvill, steeped in the American tralition of fair play.

ire

the utterance of

•exist.

ride in

this conference

to be

party.to any side-stepping

can




afford

ment

seek

spirit and a strict adher¬
for which the

to the purpose

ence

conference
The

a

point

Which

which grow out

problems

This is labeled

as a

Labor-Man¬

and

to and

yearning, on the part of the
worker, for
the realization of
higher standards of life and living
and the enjoyment of economic
security. These are phases of fam¬

employers, nor employers without
workers. Labor and management

identical with the best in¬
terests of our nation. Under our
workers cannot get

the

In

other

ference.

procedures by

industrial relations
most

can

be

effectively at the

levels where they belong.

V,

We must remember, always, that

effectiveness will depend upon
to which the inherent

the extent

"rightne«s" of

our

conclusions will

justify £the rvoluntary support: of

along without

each

reach
other
and

an agree¬

and

not

work

other.

against

action

lies

at

the

foundation of the democratic
in industrial life.
The
right of workers to belong to un¬
ions and to work jointly for mu¬
tual aid and protection must not

very

process

interfered

be

achievement.

Freedom

living

perience and effort to the pro¬
ductive performance of the enter¬
is a part of that manage¬
responsibility. Equally im¬

prise

is the development of
whereby chosen represen¬

portant
means

who perform
given a cooperative
share, by joint consultation and
agreement, in the decisions made
of

the work

workers

:

are

by management affecting the wel¬
fare of all employees and designed
to better the productive effort of
the

enterprise
itself.
In \ other
words, in every phase of labormanagement relations, provision
should

made

be

for

union-man¬

agement cooperation.
On
our
acceptance

of

these

basic

of

Freedom

with

or

workers

of

abridged.

to

organize

principles depends our abil¬
ity, to
stamp
out
the
major
sources
of
industrial
disputes.
Strife of any kind, and

industrial
well, can be prevented
only through the removal of its
causes. To attempt to outlaw dis¬
putes by legal mandate is to ig¬
nore
the real problems that un¬
derlie disputes.
strife

as

with more and to select representatives of
Labor cannot and will not for¬
materialistic forces.
Correspond¬ their own choosing is essential to
ing with this purpose and policy make the process
of collective feit its right to protest. It cannot
and will not surrender its right to
of wage earners is security of in¬
bargaining possible. - Without col¬
strike.
The right to strike is a
vestment in industry, the earnings lective bargaining there is no or^
upon said investment, the growth
derly process for fair determina¬ part of the free enterprise system.
and expansion of industrial enter¬
tion
and
acceptance,
by By curbing this inherent right we
joint
prises, the cost of industrial pro¬ those who manage and those who would take a decisive and irrev¬
duction and the problems of com¬
work,
of the standards
under ocable step toward far-reaching
whicn men and women are pro¬
regimentation not only of labor
petition in the sale of goods.
but of all industry as well. Un¬
Both groups, however, must real¬
ductively employed.
ize that the call of the moment is
Freedom
of
self-organization, qualified recognition of that right
is indispensable to the success of
for the exercise of sound judg¬
which
underlies
collective bar¬
ment, patience and understanding, gaining, like every other freedom, our task: to devise sound and just
openly
agreed < to,
and the demonstration of a sincere
carries with it; a-, corresponding procedures,
which would make
work stop¬
and frank attitude toward each
responsibility. It is the responsi¬
deals

Management

they must deal
faith.

short,

In

other.

bility
for
orderly process
and
responsibility for discipline.
Neither
management, labor nor

with each other in good
Conference Should Be

the

Limited To

the

public, must lose sight of this
all-important fact that collective

Agenda

opinion that this con¬
ference should
confine itself to
consideration and action upon the
is

It

my

to

their

agenda.

other

these

dustrial relations must be

The introduction of

acceptance of collective bargain¬
ing is worse than no acceptance
at all. The goal of collective bar¬
gaining is an agreement/ The em¬
bodiment of that agreement is a
contract. When management and
workers enter into a contract they

and

such

For

obvious

reasons

questions which should

be dealt with between labor

a

and

sense

this is

a

peace

honor.

and

to

individuals and
therefore, is purely

group,

reach

we

here

should

a

better

ever

be,

is

or

let me

or

management, y Rather, it
of the public

contract has a

and wholeheartedly ac¬
cepted by all, labor. It is for us
to
provide means whereby this
right can be clearly defined and
spected

accorded

universal

acceptance

throughout industry.
Responsibility

good of the nation. Hum¬

of Management

rights of management, like
rights of labor, carry with
them corresponding responsibili¬

bly, therefore, we here repeat our

pledge to the President:
"We shall do everything we can
to assist the conference.";h

party to the

basic right to organize
bargain collectively and the
full acceptance of that right by
the employers stands side by side
with the right of employers to
manage their enterprise and di¬
rect its operation without inter¬
ference. That right should be re¬

must be the welfare
and the

a

Labor's

strategic advantage for either la¬
bor

both the letter and the

and

for all our
At least that shall

temporary

obligation
to

out the contract and

personal responsibility in abiding
by its terms.

tomorrow

some

that the manage¬

inviolate

of workers but every worker who

try to rephrase our ultimate goal
here.
As I see it, it is not, nor can
it

an

and

spirit of said contract* It means
that not only the representatives

have con¬

And finally, gentlemen,

carry

accord

means

adhere to

siderable influence in the shaping
of

It

has

ment

Our function, as
a

are mu¬

accept¬
ance of every person covered by
its
terms
and
by
their sacred
derstanding,

free American citizenry.

as

obligations which

v

,

ties. ;;The

responsibility

of man¬

when

resort,

of settlement have been complete¬

ly and finally exhausted.
In
this meeting
we
must
frank

well

as

as

be

realistic. We must

not only come to grips with mani¬
festations of the disease, but also
deal
with
the
real
source
and
cause

of trouble.

Let me, there¬

fore, place before you, in broad
outline, the following program as
a basis for deliberation, discussion
and

agreement.

Scientific Collective Bargaining
In

the

modern

world

of mod¬

industry and technology, scK
ence has led the way to progress.
Advances in scientific knowledge
and
their application to man's
ern

technical skills have made greater
strides

than

before

ever

history of mankind.
admit

to
we

that

have

in

we

the

have

human relations

in

failed

But

to

apply

our

ad¬

knowledge to practice. In
many
situations involving large
numbers of people, failure to ar¬
rive at an understanding, failure
to reach an accord, represents a
failure in our ability to devise
vanced

procedures, to deal with facts and
"make those facts understood.

to

■'/> A major source of disagreementf
and strife on our industrial scene

In the
especially in the last
have done much
to help unions develop technical
knowledge and factual informa¬
tion necessary to bring a better
understanding to the workers and
their representatives at the bar¬
gaining table of the operating
problems of industry, and of pro¬
duction and management prob¬
lems, facing
their > employers.

is the question of wages.

past,

and

fifteen years, we

Technical
now

research facilities have

been established by the ma-:

jority of our national and inter¬
national
unions, and have pro¬
vided them With new tools for
meeting
issues
which:, confront:
workers and employers.
Time and

The

the

except as a last
all peaceful means

pages unnecessary

genuine

Perfunctory

tually binding upon them.
An
operating
collective
bargaining
agreement is backed by the un¬

collective
industrial or

management, free labor,

free
a

real

an

wholehearted.

assume

through

management

bargaining on
plant basis.
In

anarchy.

of collective bar¬
gaining as the most democratic
and the most efficient tobl in in¬

the consideration of
listed in

controversial subjects,

are

collective bar¬

Acceptance

wages,

conclusion.

means

is industrial

gaining

full employment and
legislation, for consideration -by
this conference, would make fail¬
ure of the conference a foregone
as

a

The alternative to

each of the seven points
the

to

ers

included
inthe
agenda. Surely all of us must be
fully conscious of the complexities
of the problems which we will be
called upon to solve if the work
of the conference is confined ex¬
clusively

for work¬
maintain self-discipline in
dealings
with employers.

bargaining is

points

seven

words,

to recommend those

other

with

each

realize these objectives

two

this is not a
bargaining con¬
Our function is simply

each

with

ment

is charac¬
terized by an intensity of purpose
and a feeling of determination to
secure, for themselves and their
families, the enjoyment of eco¬
nomic justice, educational oppor¬
tunities and that freedom which

system

get along only if they under¬

can

stand each other,

ily life and in most instances the
formulation of policies designed to

an

industrial

and

economic

of industry and commerce.

national collective

parallel

and management are

bor

labor-management
relations
are not easily solved. Invariably,
there are involved in these prob¬
lems the welfare of those who toil,

of

associations fellow citizens.
But in be pur fervent hope if, as I be¬
reality, not one of the delegates lieve, we. can here chart the road
here can make contracts that are "to productive peace instead of
binding on the group or industry disruptive war on the industrial
front."
1
that he represents.
ganizations

long-range interests of la¬

The

decent

earn a

at rates of pay which accord with
his contribution through skill, ex¬

tatives

lockouts.

and

strikes

called.

was

may

agement Conference.
Its confer¬
ees are leaders of certain labor or¬

attainable

and, if possible, find a way
to minimize industrial strife and
deal with the cause or causes of

through the maintenance and ex¬
hibition of an
unselfish, broad,
tolerant

arrive at the
way
of working

can

the worker to

I want to make one more

our

gentlemen, that neither

best

assured

be

only

-

long-range

a

which "employers

workers

agement extends most directly to
through service to
their
employer, acquire over a
period of time a tangible interest
in their job.
Stability of employ¬
ment, job security and ability of

workers who,

together, producing together and
serving the public together in har¬
mony.
It is not a conference to
outlaw all disputes and abolish all
strife. That is not its purpose. In¬
stead
we
are
commissioned to

point advisory
inspirational, if .you
be over¬ please. Yet we are here as repre¬
sentative American citizens called
looked in time by those who will
be following our progress
here to this task by the first citizen of
the land. As such, the conclusions
with the deepest interest.
.

conducted

a

not

here with any lack

glossed

pious platitudes and the appearance of a harmony that does not
I submit

disagreements,

are

it will

therefore,
we

which

by

and

employees.
We are ready, gentlemen, to do
)ur
full part "to establish longterm
policies which will make
possible better human relation¬
ships in American industry."

they will be limited—will not be
over

to

the best interests of all

clear;

see

the

■

,

We

can

evolve

to

through

and

jective of this conference is finally
reached. The success of the con¬

.vith any

deliberations, these, and

unshakable

that

the

the things we bring

^

an

nation

of the world.

envy

to

this

made

word.
:f

with

here

come

of the plan

experience
through
which we
have passed in dealing with labormanagement problems we fully
comprehend the difficulties which
must be overcome if the high ob¬

v

is

which

responsibilities and because

follows such

K-...

the advance plan¬

So much for

*

to many of the industrial relations
! problems that are today plaguing
'

genuine progress.

peace

WILLIAM GREEN

ference

It is» an industrial
conference the purpose of

conference.

(Continued from page 2203)

our

of

workers

again representatives
face employers who

refuse to share
tial

information

with them essen¬
about the oper-v

THE COMMERCIAL & FINANCIAL CHRONICLE
ation of their
of

enterprise. This lack

information

results

in

of

understanding, lack of confidence, and lack of willingness to
accept

fair

a

settlement

and

to

assume a mutual

responsibility.
"In dealing with all issues, more

4

attention has

understandings.

lack

a

been

given to the
settlement of disputes that have
already arisen, and not enough to
problems which can be solved

Letore

they
become
disputes.
Agreement
on
disputes which

the

are

]

result

they

ized.

irresponsibility

the part of either the manage¬
ment or the, workers.. There is
on

no

effective

more

means

of

ex¬

virtue

and

value

to

of

bargaining.
Many
looked with disfavor upon it be¬
cause, in their opinion,
meant union
recognition

it

only

and

the

right of their employees to
belong

to

Union and to be
represented
through their Union. They failed

;

a

jto visualize the complete
tion

of such

tential

.

,

value

in the

ment

i

a

trial

opera¬

plan and the
of

such

po-

develop-

promotion of indus-

peace.

We

#

have

come

a

long

way,

however, in the

promotion of col¬
lective bargaining. It has
become
more

and

more

regarded

instrumentality r through

as

an

which

human relations in
industry have
been
established upon a sound

basis, industrial stability has been
fostered and
efficiency in pro-

eduction

has

creased.

•however, if
be

been

greatly

in¬

Collective
made

genuine,

free

bargaining,
effective, must
from

pretense
hypocrisy. Those who

and void of

participate in collective
bargain
ing must be honest,
frank; and
candid

"

side

with

each

should

other.

participate

by

nation.

for

means

than providing

them

a

of

sharing witout reservation in the
responsi¬
bility of improvement and prog¬
ress
of the
enterprise.
UnionManagement committees set up to
improve the working conditions,

of

problems
which
settlement of all dif¬

ferences which may develop.
The record made
by those who
have led in the promotion of
col¬

lective

bargaining

shows

vital

interest

that

it

does not and cannot remain static
or fixed
but, instead, it has been
consistently progressive, expand¬
ing and adapting itself to the
technical and scientific
changes
IWhich have taken place in in¬

to

workers

when

they know that they can share in
the return from
improved oper¬
ations.
The union represents an
agency
in which workers can
place their

full confidence and be

that

sure

proposals accepted by the unions
not

are

the

device

sacrifice

to

labor standards or workers' wel¬
fare; That is why
union-manage¬
ment cooperation is the
only true
and effective form of labor-man¬

agement cooperation.
Let us devise ways and
to

extend the

of

use

These

sumer.

union-man¬

cooperative

and

can

should

be

pro¬

used

to

improve conservation of
materials, maintenance of equip¬
ment, improvement of quality,
reduction of lost time, safety, and
a
multitude of other factors 6f
A

clear

line

be

status

management.
be

taken

of

drawn

functional

to

distinction

between

the

unions

and

of

Great
avoid

should

care

transgression

upon
the rights of either.
The
right of management to manage,

free from interference

of

the

union

should

lously recognized,

on

be

the part
scrupu¬

the right

an.d

of the union to administer its

affairs,

free

of

ence

from

the

own

interfer¬

should

management

be

dustry and industrial production.

uncompromisingly maintained. It

No better plan has ever
yet been
devised. In fact, no other

trial

interests

plan

it in effectiveness.
It is the only
satisfactory method
which has been
successfully util¬

ized

to

develop peaceful settle¬
of disputes and to set
up
and working standards ef¬

ment
wage

fective

definite

over

fixed

pe¬

riods of time.

4.4.: Injustice

and

instances

most

of

When

grievances

and
are

the

disruption

precedent.
which

right

a

in

strife.

corrected

a

part of

enable

wrong

body of
experience
us
quickly
a

under similar

conditions.

Lasting value can be
past experiences, in
correcting the practices and pro¬

derived from

4

cedures which have led

trial

unrest.

employers and em¬
ployees develop that union-man¬
agement cooperation can render
the highest type of service.
Once Such

a

cooperative effort

is put to work, we shall be ready
to deal with the larger problem

a

principal

and

are

making

-

would

of

union-management
tion, industry-wide in

injustices are righted, they
likley to be forgotten and are

seldom made

to

grievance

are

causes-

.

activity, where the mutual

of

Now, Union-Management
Cooperation

;

been

to indus¬

Union-Management

..cooperation can provide the ma¬
chinery for means and methods of
solving basic human problems in1

labor-management

relations, not
only democratically, but also sci¬

entifically.
Not
all
grievances are real.
Sometimes they arise out of mis¬




means

of

cooperative

coopera¬
scope,

as

planning

has

■

been

The salaries of its

arbitrators

have

disproportionately low.
found

it

difficult

to

It

attract

to hold men of top skills.
Many of those who have served
its

on

staff

have

done

so

despite

the inadequate compensation
paid
for their work, because
they real¬

ized its

vital importance to the
welfare of the country.
Much needs to be done, also, to
enable the
Conciliation Service
derive

to

in

from

successful

putes

its

experience

settlement

of

dis¬

record of continuity which
would develop techniques applic¬
a

in

able

similar

The

cases.

first

step
toward this end has al¬
ready
been
taken
by
Secre¬
tary
Schwellenbach
and
Di¬
rector of Conciliation Warren. An

advisory committee has been re¬
cently
appointed, consisting of
representatives of employers, la¬
bor, and the general public, to
help develop long-range concili¬
ation policies. It may be well to
h&ve such advisory committees
extended to the regional offices of
the Service.

sible

current

perience

conciliation

and

and

means

the

This will make pos¬

continuing reexamination

a

the

of

Service

effective.

and

is

disputes

be

can

last,

Now,

boards

has

greatly

mod¬

effective.

Arbitration

of

for

arbitration

proved

and

to

be

efficient

of

of

facts

without

an

means

reconciling
differences
bringing
decisions
on

Let

and
the

partiality.

suggest that this Confer¬

me

explore

of extending,
improving, and implementing the
methods of voluntary arbitration
as a
part of the due process in
the adjudication of the issues in
ence

means

dispute.
1
~ \'
'*5
Voluntary arbitration is

as

fective

settle¬

ures

it

method

a

for

the

ef¬

of

disputes as the proced¬
which are designed to carry
To

out.

tion must

result from

ciliation

reconciled?

be

effective, arbitra¬
"be voluntary and dem¬
if

it

is

based

compulsion. Compulsory ar¬

bitration

past

has

not

will

and

worked

not

in

the

in

work

the

A

future.

compulsory imposition
either management or labor

upon

of

fails

the

uninvited

and

the

unac¬

cepted judgment of a third party
can only bring about
more un¬
rest instead of promoting indus¬
trial peace.
Compulsory arbitra¬
tion

against
the very

goes

democratic

setting and achieving the goals of

management

industrial progress.

So much for

equal

V

foist

against

precept,
grain of ' the

every

process.

must

strength
arbitrary

When

disputes

available

arise

procedure

and

the

established

by agreement between labor and
the employer has been exhausted,
conciliation presents the first ef¬
fective and tested step toward the
settlement
of
differences.
The

a

ti

of

labor

and
one

in procedural

management rela¬
which has its source
difficulties or dis¬

agreement
over
non-economic
If in this conference we

matters?

to apply a perfect

were

therapy to

Labor
resist

and
with

any
attempt to
compulsion upon

States

Conciliation

and
ary

we

can

jointly

fields

explore,

which

we

can

strengthening of conciliation de¬
vices, would there be removed
from

the

national

the

scene

root

of the disagreement between
the employers of this country and
their employees?

cause

I have given this
problem much
thought, for surely it would be
tragic if we permitted the ab¬

of

sence

devices
rate

elementary

procedural

mutual respect to sepa¬

or

from industrial peace.
But this solution is too simple,
us

too

This
show

both

of proportion
first order of

sense

a

our

of

sense

will

proportion

there

that

us

stub¬

no

are

Stub¬

bornness is not in the facts but in

called upon to deal with
facts.
Once we bring toler¬

men

the

,

beguiling.

The

understanding

But while there is

v

paralyzing
less

excuse

very

feeling of the American employ¬
ees—this

are

lem

lie?

All

for t"

excuse

no

America

life

faces

clear-cut and fateful alternatives:

cooperation or vio¬
or coercion
by law. 7 It is imperative that we
choose and choose wisely if our
amazing economic vitality is not
peace or war,

lence, self-regulation

to

be

squandered

where

bickerings

in

the victors must lose

even

than

more

they

conceivably

can

\

this

is

which

fundamental C choice
the

confronts

labor-man¬

conference. If we make
that
choice
clearly,
unequivo¬
cally and unanimously, we shall
in effect be registering a vote of
agement

confidence

in

American

the

way

of life.

Yet, this will not auto¬
matically solve our multitudinous
detailed industrial problems.
Bui

American

it will

workers have joined in a crusade
for a very simple objective—the

define

over,

tasks,

our

alarm, there is even
for complacency.
In

economic

its

simple

and

human consciousness to

It

of the dyna¬
We shall

some

remove

mite from social unrest.

spacious area of accord.
give us an opportunity
mutually adjust the elements
a

restoration to their pay envelopes

This will

of

to

loss

in

take

maintenance of
of living.

home

the

pay,

human standard

a

Of discord.

While

V

Only
an
improvident
short¬
sightedness .could obscure the fact
that what*is involved in this uni¬

chosen

versal wage restoration campaign
is no mere quest for personal and

4

private

advantage.
What is in¬
deeply the public

volved

affects

interest,
cannot

bate

for

fair-minded

deny

which
land

our

that the
now

men

Great

We

spiral

which

dilemma—the

dil¬

have not been disposed
even
to bargain with respect to
workers'
wage
restoration
de¬

/V''1;

a

The

our economy

the nation

and for

whole that economic stability

and

purchasing

power
which
healthy, pros¬
perous
economy.
At the very
time when history, has cast col¬
lective bargaining in such a crit¬
ical role, at the very time when
it can yield the most for the com¬
mon good, it has been rejected by
so many American employers.
I say "rejected", advisedly, not

characterizes

to call

names

as

the

but to recite

a

bare

For, there is nothing quite
plain, clear and unadulterated
the word "No."
■
'
•

The word "No" has, by and
large, been the answer of Amer¬
ican industry to the workers' plea
a

decent life.

The

word

answer

"No"

has

not

been

of the President of the

Serv¬

'r«t

-+

w

\

2242)

to sustain adequate purchas¬

and

the

raise

to

income,"

tional

na¬

President

The

ating the specific factors which,
in his words, "add to the ability oi
industry to increase wages." :';'v44
The

word

War

of

"No"

the

not

was

staff of the Office

of the

answer

Mobilization

Recon¬

and

version whose recent report con¬
demned the word "No" as lacking
a

dollar-and-cents basis.,
V ' ; 7
The word "No" has not: been

he

answer

Commerce

sponsored
stantial

situation.

have
left
workers
stranded,
deeply
mindful of the brutal depressions
of past eras, eager to achieve for
their families

that

the

on page

power

moreover,

as

face

ers,

us.

of shrinking wages and ris¬
ing living costs. These employers,

shifting tides of

t4

should

(Continued

ing

emma

the

were

meet here

we

emphasized that the answer could

Strong segments of the Amer¬
ican employer group have, to put
it mildly, not been receptive to

mands.

partisans,

as

Americans.

as

we

not be the word "No" in enumer¬

our

threatens the welfare of all of

workers'

sense,

a

through

ranges

involves the fate of

deflationary

a

4v*V:'4

in

De¬

entire economy and the avoidance
of

the

for

major crises

bornly insoluble problems.
the

win.

arduous

task

of

might well be
the day.

wide¬

for

common

magnify

to

now

into

major crises into revolution¬
upheavals. The deliberate cul¬

spread character of our current
differences with management, the
bitterness
which
identifies
the

together cultivate.
In the next
days we can only make a
beginning in what is a long and

few

just

quarrels

tivation

of

of the Department

which

recently

has

that

assurances

increases

wage

sub¬

are

now

economically feasible.
Our true problem then cannot
be defined as wholly a procedural
one.
Our true problem is the lit¬
tle word "No."

And we must not

forget that the most effective and
facile procedures which the wit of
man can devise can't conjure away
the
word
"No," nor heal
the
which

wound

common

I

threatens to

it

welfare.

our
;

.

7'

that
to meet the basic
problem. which
nov/

therefore earnestly

urge

the conference,
industrial

confronts the nation, address itself

the

to

the

urgent need of protecting
standards of American

wage

workers.

fact.

fertile

tend

half the job will be done,

so

which

,

another.

one

We
minor

ance,

employers and workers. It is my United States. In his recent radio
ice has made a great contribution hope that we approach this initial address, he stated that "wage in¬
in the past toward reconcilement task
with
statesmanship
and creases are therefore imperative—
of differences between both sides
bring out practical proposals for to cushion the shock to our workby skilled conciliators whose good the development in time of faroffices
were
mutually
accept¬ reaching solutions of our common Americans, is for labor and man¬
able to the parties.
agement
a
joint responsibility
problem.
In manv ways t^e facilities of
To work together in a common which they have accepted and in
the
U.' S.
Conciliation
Service purpose, in the interests of all which
they should not fail,
need to be improved.and modern* consumers, . all citizens, *and. all thank you.
;'«i
United

bit
with

such problems as labor and man¬

Now, I have laid before you,
In broad outline, four areas in
four

military effort without prec¬
in history have left milus a bit punch-drunk,
a
frightened, a bit impatient

edent

lions of

agement responsibility, the prompt
disposition
of
grievances,
the

them.

Now, the Conciliation Service

are

Does it result from

by management or labor
up to collective bargain¬
ing agreements? •
•
In short, is the present collapse

tionships

total

devices

mediation

live

to

Consider

Arbitration

con¬

failure

ocratic.

upon

and

it

Does

breakdown of

a

an

manage¬

whereby differing viewpoints

the

.

ment

by labor of
prerogatives?

ment's

this

of

cause

the roots of the problem.
Where
then does the answer to our
prob¬

more

Voluntary

effective

invasion

the

is

Does it result from

machinery

sections of our indus¬
try and trade, voluntary submis¬
sion by both parties of issues in
dispute to an impartial arbitra¬
tor, mutually agreed upon, has
become a part of accepted and
tested
procedure.
Provision for
and

What

though helpful does not reach into

it

area

In many

arbitration

tion.

collapse?

in

improve

one

available

ernized and made

ERIC JOHNSTON

(Continued from page 2203)

more

of

for the prevention and settlement
of

PHILIP MURRAY

(Continued from page 2203)

alone tells us that we
in the midst of a condition for
which
a
procedural
solution

to

render

This

the

ex¬

development

methods

in which the management and the
retain the initiative for

-

of

staff

and

workers

that.

suf¬

and

is in the exclusive field of indus¬

approximates

Its

conciliators

has

lack

long

recogni¬
Congress of its value to

undermanned.

basis

production.
should

from ; the

which
means

agement cooperation toward the
basic objective of increasing and
improving production, reducing
unit costs, and thereby
assuring
fair and better wage
standards,
a greater
margin of earnings for
the ^enterpriser and lower
selling
prices for the benefit of the con¬

so¬

all
a

strengthen the competitive posi¬
tion of the firm, is a matter of

also

a

lution

or

in

lective

arise and

plant

cedures

bargaining with mental
reservations. They should
partici¬
pate in the deliberations which
take place between
management
and labor
representatives with a
fixed determination to find

fered

impbrtaiit: to

has

peace,

the

Neither
col¬

industrial

tion

enterprise

industry. Improvement
collective of efficiency and of production
employers standards, which
serves
to
the

and the; most

ment

the

f

as

service, one of the
democratically
constituted
agencies of the federal govern¬
v

tending a full^sense of responsi¬
bility to all workers engaged in

have already
<leveloped is more
painful and less lasting than the better the efficiency and produc¬
advance agreement on
remedies. tivity of a plant or department
Collective bargaining is a
pri¬ can do more than an outsider in
mary
requisite
to
(industrial bettering the productive record
peace. This fact has been made, of that plant or department.
clear by labor and
By union-management cooper¬
management
representatives who have nego¬ ation I mean an active
policy on
tiated agreements in a
large num¬ the part of unions in cooperating
ber of industries over- a
with management under
long pe¬
a^ col¬
riod of time,. Int the
early days lective bargaining relationship for
it was entered into as a
form of the
purpose of
promoting the
experimentation.
Many
among common interest of both man¬
both employers and
employees agement and the workers in the

entertained misgivings

This

most

Sometimes
of

2241

In meeting the challenge of
basic
that
to

problem,

let

its

unfolding.

this
remember

us

we are no mere

idle witnesses

We

ourselves

have participated in and

shaped it.
We ourselves have the present
power to resolve it not only by
urging others but also through
our

own

actions.

President

-The

of the United States has

supplied

the framework for the resolution,
of

this

greater

burning

issue.

contribution

What

could

we
make to the welfare of our coun¬

try than to use this conference as
medium for sponsoring the re¬
sumption of bargaining on the
wage issue within the framework
a

of the President's

speech?

„

relatively small.

Laboi and Management State Their
Aims

frightened

The public is

peace.

flow from this con¬
This nation needs a code

must

ference.

a national charter, a
principles, a national policy
to govern the conduct of industrial
relations.
This code should rest
sion, we have neglected the first
rule of sound industrial relations on the foundation of four funda¬
which is "sit down and talk it mental principles:
First:
Labor unions are
nowover."
Contract making between
labor and management is a hard, woven into our economic fabric
and collective bargaining is an es¬
matter-of-fact ; business negotia¬
sential
part of the democratic
tion. We should not take the case

much at what has

not so
as
.

*

happened

fears may happen.
In starting the job of reconver¬
at what it

public until we decide
ourselves where we agree

the

to

among

and where we disagree.

if

can't succeed

We

live in

we

atmosphere of agitation and
irritation.
We won't succeed if

hurl

side

either

for

spokesmen

and biting

thunderous statements

at each other like oldmilitary commanders

epithets

rival

time

in battle.
gentlemen, is the
natural enemy of sound industrial
relations.
Name-calling is the
about to engage
The

epithet,

democratic

deadly foe of the

most

process.

We

...

hardly blame the Amer¬

can

ican people if they become a little
sour
at our constant
bickering.

They want peace more than they
anything else in the world—

:

want

well as peace

at home as

/ peace

abroad.

-

-

.

prosperity we all

The industrial

hope for will never come if we
frighten the buying public by our
conduct of labor-management re-

*

lations.

:

;

I suggest

,

set of

that in the future, we

the headlines

-.meet less often in
and

often around the coun¬

more

That's

table.

cil

democratic

the

of doing business. I say these
things bluntly but with the utmost
i good humor. This is an excellent
time for self-analysis and selfcriticism. The wrong way to apway

'

*

1

proach the problems that face this

*

conference is with
a

and

The people of

hearts.

warm

cool heads

is with

them

proach

hot head and

a

The right way to ap¬

cold heart.

and industry

process.
The nation
must accept this as a

I mean
accept it, not from the lips, but
from the heart.

Management must re¬

Second:

tain the unabridged right to man¬

Its right to initiate, the right
decisions, must remain

age.

make

to

where it is now.

Both labor and manage¬

Third:

that

recognize

must

ment

ever

higher standards of living come
only from increased productivity.
Anything which retards output or
cuts into quality becomes by defi¬
nition
immoral, anti-social and
untenable. <
'■
'
Fourth:
The
consumer,
the
worker and the investor must all
.

in the fruits of in¬
production. Their respec¬
tive
shares
might
be
labeled
lower
prices,
higher wages,
sounder profits. There is no limit
to the abundance of good living

this country demand
accord.
-

that

we

V-

'

reach
"

'

that each of you realize
that you are not here representing
your individual company or in¬
dustry or union. You are here as
American citizens, chosen because

strife

of

Americans whose

and

here

not

are

representation- here

direct

being protected and preserved by
That is the responsibility of

you.

I know you will not

each of you.

of this

acceptance

These

are

prin¬

the four pillars of a

practical,
sound, labor-manage¬
ment relationship. We start today
to take the first step—always the
biggest step—to reach these

ob¬

The whole¬
hearted answer of it by both man¬
agement and labor is the basic
requisite for peace in industry,

collective bargaining.

but

than

more

This nation owes its existence to
a
group of men who sat around
the council table to attain agree¬

The nation has

progressed

to greatness by

the

The

asking one ques¬

people

tion:

;

"Are

are

'

same process.

*

Return to Collective
that, with

knew

of

controls

the

week and every

every

reten-

day and
month that

every

passed would increase the danger
that they might be engrafted per,'manently
; a

result

into

system.Such
disastrous to

our

would

be

democratic

our

of

way

life.

It

would be inconsistent with every¬

thing for which
the war was
fought. It would fly in the face
;-of every pledge- made
to those
their lives. There¬

*who sacrificed

fore

the

Government

made

the

decision to relax the controls and
to

them

take

off

rapidly

as

as

could be done with

We

economy.

there

action

safety to our
knew that in this

would

be

involved

conflicts, and controversies
V and the process would be painful
and difficult.
:
In
the field
of
managementmany

there

labor relations

was

another

which

factor

required the Gov¬
change its
course.
The whole system of wartime con¬
trol of labor disputes and man¬
agement and labor relations was
founded upon the no-strike and
no-lockout pledge.
The removal
ernment

of

that

to

left

wartime

our

method

of

handling such disputes without
any
basis upon which to rest.
Finding it impossible to secure a
renewal of that pledge, we real¬
ized

that

wartime
tions

to

continue

controls

would

not

over

with

the

labor rela¬

be

merely the
existed, but
the creation of entirely new con¬
continuance of

trols.

what

For the Executive branch of

the Government to do this during

time of peace by decree or




direc¬

tive, would have been repugnant, to

principle of our democracy.
Therefore, it was decided that it
should be the policy of the Gov-*

every

to

ernment

return

collective

to

bargaining which always has been
and

always; should be the system

in any democracy,,

Frankly,
however,
industry and labor

American
were
both

rather rusty in the techniques of
collective bargaining.
Four years
have passed since either side had

much

practice
at
it..
Great
changes have come about in both
industry and labor.
Therefore,
we felt that if collective bargain¬
ing was to have a fair chance to
succeed
it
was
necessary
that
representatives of industry and
labor meet together'In order that
they may lay down and define
and

make

clear the

ground rules

under which collective bargaining
would operate, 5 Within one week
after the war's end, the President
had put

in motion the machinery

out of which this conference grew.
It is your conference.
The Gov¬
ernment

not here

is

to dictate to

but it is here to be helpful
to you.
A large amount of spadeyou,

work

has

been

done

to

prepare

the way for the conference.

The

extensive

preliminary
prepara¬
tions have, in my opinion, covered
every field.
The success of the
conference
think
of

in

you

the task

every

the

rests

know
and

with

the
the

individual in
outcome

I
importance
you.

stake

which

America

and

the

has

results

obtained here.

The

undercurrents

cause

illwill—the

kind

of

problems

inclined to neglect and for
fail to establish ma¬

we are

which

we

in our bargaining con¬
tracts to expedite their settlement.
I am going to speak candidly and
frankly today and try to point
out just a few of the things I feel
are responsible for bad labor re¬
chinery

lations.

I

direct

want to

re¬

my

Far

too

often,

local

t

union

size

of

this

conference

is

72

that

$2 can be paid in dividends
(which is on the liberal side un¬
less restrictions are removed) the

which

might sell around an
price of 40. However,
making allowance for continuing
restrictions against income and
possible rate cuts to absorb part
or all tax savings (as may become
the regulatory fashion next year)
it would be safer to figure a price
range
of 30-35.
In the
above

1945,

of

$2,320,540,

was

$676,675 was "Reserved"—that is,
restricted against dividend pay¬
ments by order of the Public Ser¬
vice Commission of New York.
Formerly

larger amount of in¬

a

thus restricted, but the

was

of $600,-

present amount consists

plus interest on
certain bonds held alive in a sink¬
000

annum

per

ing fund. The company is atr
tempting to void this last restric¬
tion by refunding the debenture
bonds with a bank loan, but it is
uncertain

as

yet whether the Pub¬

lic Service Commission will agree.

succeeds in re¬

If the company

gain will be lost in
gross saving is esti¬
and the net
at $88,000.
To'this may

taxes.

The

mated

at

amount

$142,000

5%

added

be

55%

and

taxes

saving in income
of excess profits

due to the new
The total estimated in¬

payments,

tax

Tax Bill.

in

crease

earnings is about

1946

$900,000,
making
the
adjusted
figure approximately $3,200,000.
From this must be deducted the
dividend

requirements

estimated

table

price of 100 has been as¬
for
the
preferred stock
should be of fairly good
quality, with overall coverage oftwo or better), and a price range

management's

quate machinery peacefully and
speedily to adjust all grievances
arising under its operation.
Too often today we find

have

inter-

bobbing up in bar¬
management.
The
hard to understand
disputes, many of
reconversion

created

Surely,

the

within

of the great labor or¬
ganizations represented here, a
fair way to determine these ques¬
structure

tions

be

can

Ob¬

out.

worked

viously, the present jurisdictional
committees do not
provide the
solution. Maybe the answer would
be to examine the techniques de¬
veloped to meet somewhat similar
problems that have existed in the
motion picture industry and in
the field of professional baseball.
If

today has ac¬
unions? as most of

management

cepted
them

labor
profess,

must

devote

management

then

attention

more

to

working out ways and means of
living fairly together with labor.
Top management during the war
has

been

inclined

little time to

to

active

in labor problems.

devote

but

participation

As

a

(which

of 30-40 for the

to lick management.
This has not
developed a good atmosphere for
cooperation.
Moreover, an occa¬
sional union leader has felt that
the Revolution had come and that
labor should take over industry.
On the other hand, management
has, in some instances, signed con¬

has

but

tracts

sincerely

not

ac¬

cepted > unions.
As a result,, a
supervisory force schooled in how
to fight unions was never trained
in how to get along with them.
Many of our troubles can be and
should be adjusted at the plant
level.
Since labor problems are
human
relation
problems they
should be dealt with at this level
of contact.
;

I

*

only briefly to
of the practical
I have not
fully
to
explore it.

have

tions

time

Absentee management and boards
of directors should let operating

management

have

a

freer

much

That will be the task of the con¬

As

President

the

said

this morning, this is your confer¬
ence.
The Government is here

during the course of the confer¬
you
find need for more
assistance, we will attempt to
supply it.
ence

.

other

The

I

day

Press

spoke

to

about

Club

I

When

conference.
my

entertain

If

good

send

speak
tiate

relations

to

are

for management
with

unions.

to

exist

to

The

nego¬

office-

boy union-buffer type labor rela¬
tions man will always end up in
disaster. -The only thing he can
say with safety is "No."
Most unions have been born in

it

answer

can

unions, management must
responsible people who can

&

Lewis

Daniel

N. 1 C. —Mc¬
Co.;, Jefferson

investment dealers an4Robert
B.
Dixon,
field representa¬

that

nounce

heretofore local

tive of the company, is now in
charge of the trading department,
succeeding S. A. McFalls, who is
now no longer connected with the
firm,

i

-

'.v."

Dixon

Mr.

/:■/

•/'-•

.

in

his

-

.

present ca*>

parity will handle dealer contacts,
buying and selling, and in addi¬
tion

continue

to

other customers.
one

state arid is active

dealers in the

in

and

oldest I investment

the

of:

local

serve

The company is

and selling cor¬
bonds and

underwriting

poration stocks and
municipal securities.

Chase

Candy Stock
Offered at $8 per Share
Her rick,
to

Waddell &,Co., ®c4
■

the

public

on

Nov.

1

issue of 50,000 shares of $1

new

value common stock of Chase
Candy Co., 69-year-old Missouri
manufacturer of candy bars and

par

confections.

other

The stock

was

cause

to

possibility that it
Gentlemen, this confer¬

will succeed. ir.
we

I refused
I refuse

the

fail.

ence

because

are

I

say

that be¬

facing problems, the
to which are

solutions

successful

future
Amer¬
icans always succeed when such
occasions arise.
I know you will

vitally

welfare

succeed.
are

essential
of

I

our

to
the
country.

know

Americans

anything else.

:1

it

because you

before, you

the sale of 4%

pany

debentures at par

will be used to retire a 41/£%

promissory installment note is¬
sued
by the company ^to F. S.
Yanlis & Co., Inc.

the
this

completed

have

with

Mgr.

For McDaniel Lewis

and interest to an insurance com¬

purport of that question was what
the Government proposed to do if

their workers.

:

If

technical staffs and draftsmen.

this conference failed.

in contact with

time for
plan and

priced at $8 a share.
Proceeds,
along with $450,000 received from

daily with the problems are much
more
qualified than those who
come

some

only to provide assistance. I be¬
lieve that it- has provided that
assistance through a secretariat—

hand in dealing with people under
their supervision. Those who live

never

take

"clear" the

Dixon Trading

a

remarks I was asked a num¬
ber of questions.
I tried to an¬
swer all of them except the last.
That I declined., to answer.
The

field.

to

attempted

time

this

may

gain court approval.

offered

National

to

it

SEC

the

aspects in this field.

ference.

stock..'

gation between the subsidiary and
parent * company interests. Ber¬
ceuse of possible legal complica¬

touch upon some

Top manage¬

attention

common

Z It is obvious that, while Long
Island
Lighting Company is a
relatively small system, its hybrid
plan of merger and recapitaliza-r
tion presents a variety of prob¬
lems with respect to allocation of
values
to
subsidiary preferred
stockholders, to parent company
preferreds, and to the common.
There has already been some liti¬

Building,

supervisors were
taught how to fight unions. Union
leaders in turn were taught how

ment," in my opinion, should de¬
vote a considerable portion of its
and

a

sumed

GREENSBORO/
against the opposi¬

struggle and

grievance procedure

in violation of
grievance procedures. This prac¬
tice must stop or labor will do
great injury to itself, and every
union contract should carry ade¬

stock

new

the pro¬

on

posed issue of new 4% preferred
stock, leaving approximately $2,800,000.
This amount is equiva¬
lent to about $2.65 a share on the

their

have struck plants

Assuming

stock.

common

new

outlined

and

:

the

Exhibit 2 in

to

According

tion of management.

contracts

*

96

-

plan (page 35) net income of the
consolidated
company
for
the
twelve months ending August 31,

stewards and officers have failed
in

-136

102

2.40

marks first to labor.

which

2203)

3.40

71

part of the

questions need not be theo¬
The experience of the
past provides the answers.
Experience shows that it is usu¬
ally not the big problems which
cause the trouble, but rather the
little
problems
which
irritate

politics
gaining with
public finds it
jurisdictional

Bargaining

47

these

to

answers

%

Va-

54

-

-146

120

74

retical.

The

down.

2.67

.01%

funding its bonds, interest charges
will be somewhat reduced, but

break

bottlenecks.
also

of it is
under¬

standing of its techniques—what
helps it to work—what impedes
it and hampers it and causes it to

union

?tion

an

,

big enough to do the
present job?" Gentlemen, I think
we are.M^;wX,":.; ?
>
we

(Continued from page

answer

an

There must be

needed.

133:' -164

"

.40

lVa

pfd.

to follow the

jectives.

ment.

to you about

do want to talk

I

'Range of Est.
Market Value'

3.12

.40

46' 4

91

Common

Pfd.

«po3

102

/See explanation below.

come

shirk it.

of

hearted

must

be assured that their interests are

workers and

flow from the whole¬

The mil¬
voices
who have no

be minimized.

can

lions

industrial

wherein

system

1%

Nassau

New Shares Received

"?

Arrears

Price

ability and experience to
work out for the American people
a

Div..

Recent

pfd._
Long Island Light. B 6% pfd._
Long Island Lighting common
Queens Borough 6% pfd

Long Island Light. A 1%

of your

creased

can

(Continued from page 2206)

which you must con¬
Since it is so small, it is

share equitably

which

Public UtiKly Seqiriliijs

problems

fact.

ciple.

•

„

conduct,

of

an

>

fundamental result

There is one

which

was necessary

necessary

(Continued from page 2241)
something has gone wrong in our
mental reconversion from war to

It

keep it small if it could func¬
effectively with the intricate

tion

sider.

Conference Convenes

as

to

Thursday, November 8, 1945

& FINANCIAL CHRONICLE

THE COMMERCIAL

2242

are

Milton Underwood to

Reopen InW Business

:

HOUSTON, TEXAS—Milton HL
Underwood, upon his release from
(he Army *Air Corps, Is reopening
his office under the former name

of Milton R. Underwood & Co. in

the Gulf

Building., ; /

Florida Sec. Dealers
Hold Post-War

Meeting

Securities Dealers
Association is holding a post-war
Florida

The

meeting Dec.
Inn,

Punta

■Rpnph

6,

7, and 8 at The

Vedra,

Florida.

Jacksonville
=/'

.

'

•V

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4436

162

tially responsible because of our
draining of silver from' that coun¬
try in 1934 and 1933—has led the
natives

(Continued from page 2206)

Thus, there
threat

more

is an/inflationary world

insidious

damaging than

and

silver

be

can

reduced

rem¬

depreciation, when their
currency was restored to a stable
basis, and coins again began to
circulate, had less need for silver
bullion than formerly. Moreover,
Mexico, the leading silver produc¬
er, had about ended its period of
internal
political
disturbances,,
and silver mining there was re¬

the

saturated

national

with

widely

currency

issues of

valuedmetal*

But

that-

an

is

over¬

fluctuates
purchasing

in

price and
power, there is no economic .proc¬
ess by which It, Can be' restored to
a

stable

and

normal

basis.

sumed. The Mexican Government,

-

The basis for the
the

new

Treasury's

urge to

price

Another factor leading to lower
silver

world

price of silver during the
War.. This is not an unusual
phenomenon and it in no wise
can

be taken

as

the

metal

as

a

by¬

tion both in the United States and

has risen permanently in
value and that the prevailing new,
larger and more widespread demand for silver in relation to its

'

of

product of copper production. The
larger volume of copper produc¬

silver

*

prices Was the greater ex¬

traction

indication that

an

South

80%

increased

America

world's

silver

of

United

'supply will endure.
in

World

"the skids."
The use of silver
in industry and even in the arts
on

has been greatly expanded
during
the war;
One reason of course is

the scarcity of other metals that
have been allocated for war use
and for which silver can be sub¬
stituted.

This condition

silver

arose

from

War I

uses

in

the

copper

As there were no new
of silver and demand became

'

rather

'During the last World War, sil¬

production.
Instead of being
mainly a by-product in the min¬
ing of other metals, silver will
again be mined from low grade

which, during the interval
Of low prices, were abandoned or
ores,

neglected.
conditions,
United

Because

of

wartime

production

States

in
Canada

and

about greatly declined.

output and

domestic
States

the

mining.
Silver

go

its

and sold in China.

of

silver is the substantial rise in the
'

stored, silver is likely again to

gotten hoard,

but is constantly being intensified.

increase

porary, and, as after the last war,
when normal conditions are re¬

may pre¬
illvail for Some time since there is
sold vast amounts still a
heavy domestic and foreign
of silver.
Considerable profit was
demand for silver bullion.
But a
made by American interests at the
time that bought silver in Mexico high price for silver will stimulate

desirous of "cashing in" on its

The

depreciation hot only stays putj
.

to fear

paper money inflation, result¬
ing in "hard money" hoarding.
These factors are tending to en¬
hance the price of silver bullion.
But' it is likely to be only tem¬

of

currency

greater production and excessive
credits can be liquidated.
This
when

contents

In India also

of

their subsidiary coins. Those na¬
tions
which
underwent. drastic

inflationary trend,
High • prices encourage

puts an end to the inflation.

silver

hoard.silver and keep

rising price level has led

a

European

the

to-

it from the market.

lower

because of the rise in the

edied and -the

halted.

prices.

to

nations,
price of
silver bullion caused by the war,

more

other method
of currency 'depreciation.
When
fjrices rise because of a shortage
of
goods or over-expansion of
any

credit, the condition

conducive

were

the
has

In 1944, the out¬

put in the United States alone de¬
clined almost 50% below 1941 and
there was a similar decline in
Canada.

However, both Mexico

static, the price of silver,

the

and Canada are in a position to
greatly increase their production,
law of supply and demand, tended
and in this country, there are still
to decline.
3
existing old low-grade ores and
"tailings"
which
with
modern
The New Deal and Silver

advanced from

could be
What happened in 1933 and 1934
profitably worked into bullion.
when the "New Deal" Adminis¬

metal

ver

underwent

the

in accordance with the economic

same

wild and excited climb in market

■

value.

Despite the release of 2,-

000,000 ounces of silver bullion by
Treasury under the Pittman
Act of 1918, the price of silver

fine

ounce

in 1920.

in

around

56 cents a

1914 to above $1.19

was no

hoarded, because the
had

s

about

after

1921

came

and- continued

;

and

Should. silver

reach

bullion

is

well

known

and

Laboratories,

Perry Heads United
Eng. Trustees, Inc.

/

New

York,

elected
Engineering
meeting on
Oct. 25 in the Engineering So¬
cieties Building, 29
West 39th
Street, John H. R. Arms, Secre¬
tary, announced. Mr. Perry suc¬
of

Trustees,

Inc.,

ceeds

F.

,was

United

at

a

M.

Farmer, Vice-Presi¬
consulting engineer of
Testing Labora¬
tories, New York. United Engin¬
eering Trustees is a corporation
set
up
jointly by the four na¬
tional engineering Founder So¬
cieties, which have an aggregate
membership
6f nearly
75,000.
dent
the

and

Electricial

These Societies

a

price around $1.29

re-elected Treasurer; C. R. Jones,
Eastern Transportation Manager
of Westinghouse Electric Co., re¬

H. R. Arms, also Secretary of the

Engineering Foundation,

American

Institute

df

DIVIDEND NOTICES

THE FUNTKOTE

COMPANY
30 Rockefeller Plaza
New York 20. N. Y.

November 7, 1945

Preferred Stock

Elec¬

trical Engineers.

The Corporation
promotes the advancement of the

the Panic

of 1929

when sil¬

| the passage of the Silver Purchase

merely

as

Act of 1934—as monstrous

a

the pretense that raising the value
of silver by an edict would greatly

^present

ularly with China, India, Mexico
and other silver using countries.

and

war,

our

the Asiatic peoples,

particularly the East Indians,

increase

our

foreign trade, partic¬

this

that it would

hoarded silver in fear of inflation

The contention

$nd, there resulted

lower the prices of our goods in
terms of foreign currencies and

a

rising value

was

interests

were

and

active at the

attempted

#

■'

at

the

of

dividend

A

of

this

and

greater

Should

a

Federal

secured

Reserve

bank

notes,

and

specifically by Treasury tary system- shall not exceed

certificates arid dhe-year Treasury
notes.
The silver bullion thus ob¬
tained vyas sold at $1.00 per ounce

fourth

of

the total

silver flowed

into

-

water down a hill.

Thus, the arti¬
appreciation
of silver
about the prevailing world ficial
price. In May, 1920 silver bullion through the Treasury purchases
drained silver from the Orient and
dropped rather suddenly from, a
high of about $1.20 to less than played havoc with China's mone¬
$1.00 and the Secretary of the tary standard and caused a de¬
Treasury, in accordance with the pression in that country.
But it

Mr. Perry has been

feast for the silver purvey¬
and speculators!
"

was a

ors

for three

ears

The

Vice-President

country

an

estimated bonus

of about $58,000,000.

V During
Treasury

the
was

period
involved

that
in

ing out the terms of the.

the

carry¬

Pittman

Act, circumstances throughout the




price abroad ranges
much higher than the domestic
"nationalized" newly mined silver

price.:- Because of the drastic

pa¬

monetary inflation in China—
for which the United States is par¬
per

the

share on
outstanding common stock of the
payable No vember 24,1945,

Bruck

to

shareholders of record

the close

at

of business November 7, 1945.
H. C. STUESSY,

October 2d,

Secretary & Treasurer

H

NUMBER

The Board of Directors of the

At a meeting of the Board of Directors
held November 5,1945, a dividend of

thirty-seven and one-half

(37%c)

cents

share was declared on the Common
Stock of the Company, payable Decem¬
ber 15) 1945, to stockholders of record
per

the

on

W. M. O'CONNOR
Secretary

j

declared the following dividends

capital stock, payable on December 12,

1945, to stockholders of record at
ness,

close of busi«

three o'clock, P.M., November 15, 1945 4

Regular semi-annual cash dividend
5Of} per share; and

the close of business November 21 ^
1945. Checks will be mailed.

November 5/1945

j •/

>

COMPANY

OIL

(Incorporated in New Jersey)
has this day

at

Extra cash dividend of

of

75f per share.

Checks will be mailed.

...

A. C.

(

i

;

r

,

MINTON, Secretary

November 1, 1945

DE SOTO

DODGE

PLYMOUTH

NOW

.

MAKING WA«

PRODUCTS

holders

9

C A LIF, —*
joined the

DIVIDEND

•

ON

COMMON STOCK

Mr.

The directors of
have declared

five Cents

a

Chrysler Corporation
dividend of seventy-

($.75f

per share on

the

outstanding common' stock, payable
of

Rejoins

with the rank of First Lieutenant.

For four .years prior to joining
D. White & Company in 1939
Mr. Ochs was with Geo. B. Gib¬

record

the close

at

November 17,

1945.

of

Tecord

at

the

close

of

business

No¬

.

-'T

•

December

payable
record

15,

at

15,

1945,

close

the

to

stockholders

business

of

of

November

1945.

In payment of these dividends will be
mailed to all
stockholders of record at their
addresses as they appear on the books of the
Company unless otherwise instructed in writing.
*r~~
J J MAHER, Secretary.
Checks

..

business
'

r

4

B. E. HUTCHINSON

Chairman, Finance Committee

A

dividend

share
iar

,ias

on

value
been

50

of

per

Stock,

$13.50 per share,
declared, payable

Dec. 15, 1945, to

the; buckeye pipe line

cents

Capital

the

of record Nov.

stockholders

15, 1945.

THE UNITED GAS IMPROVEMENT CO.

company
30

^

revert to inactive status

;

of

15, 1945.
*
•
regular quarterly dividend of Seventy-five
Cents (75^) per share on 1,298,200 shares of
Common stock without par value of Southern
Railway
Company,
has
today
been declared,
out of the surplus of net profits of the Company,
for the fiscal year ended December 31. 1944.
A

With Schwabacher & Co,

R.

SOUTHERN RAILWAY COMPANY "" }■
New York, October 23, 1946.
*
A dividend of One Dollar and Twenty-five
Cents ($1.25) per share on the Preferred stock
of Southern Railway Company has today been
declared, payable December 15, 1945, to stock¬
vember

has

& Co., 530 West Sixth Street.

Co., Inc.

per

Com pany,

STANDARD

Bruck has just returned from the
He was previously

bons &

dividend of

a

Seventy-five Cents (75c)

anil

December 14, 1945, to stockholders

The

of Directors

Manufacturing

has declared

THE ATLANTIC REFINING CO.

Present Situation

fect.

Board

of Eaton

Di¬

a

DIVIDEND NOTICES

war, silver
has again risen in Staff of R. D. White Co.
price. Furtunately a ceiling price
William C. Ochs is again asso¬
on imported silver was fixed here,
ciated with R. D. White & Com¬
of the Silverites in Congress, re¬ which
kept it from overwhelming
fused to complete the replace-' us in a silver
flood.: The recent pany, 120 Broadway, New York
•ment, which still lacked 900,000 lifting of the imported silver price City. Mr. Ochs has been in active
with the United States
ounces.
The whole transaction, to 71.11 cents an ounce—to correr service
Re¬
though not causing a loss to the spond to the domestic price—will, Army since February 1941.
Treasury, gave the silver interests for the time being, have little ef¬ cently returned from overseas, he
of the

DIVIDEND NO. 83

:

1945

Armed Forces.

now

GREGG,

and Treas*

Cleveland, Ohio

Wt

rector for the past ten years; was

trading department of Oscar Kraft

will

Vice Pres.

use.

ANGELES,

Now, at the end of this second Wm. C. Ochs

21, 1945. Checks will be

EATON MANUFACTURING COMPANY

Engineer¬

He has been

ing Trustees.

Dept. of Kraft Co.
O.

of business

trust

CHRYSLER

LOS

close

''

.

closely af¬

filiated with the United

Brack Is in Trading

Frank

the

-

one-

money value,
the country as

qt

requirement of the law, began the
purchase of displaced silver at the
stipulated price of $1.00 per ounce.
When the price declined substan¬
tially below the $1.00 level, the
Treasury, having already pur¬
chased 2,000,000 ounces,
stopped
buying, and, despite the protests

value for future

on

10, 1945 to stockholders
at

record

Soci¬

the

of

has

payable

of

thus

the value of silver in the mone¬

share

per

corporation,

genheim Medal Board of Award.

con¬

,

of

$.45

December

DIVIDEND

of business

of

been declared on the Common Stock

Library, the Founda¬

COMMON

Volume

business

of

'

Award, and the Daniel Gug¬

"free and unlimited"

intensified by a larger

was

close

Common Stock

titular

Engineering

Building

funds of the

coinage of silver movement gain
permit these countries to buy
headway, it would undoubtedly do
number of transactions
arising out more. Domestic prices would also considerable damage to the na¬
of the war,
To relieve the short¬ be raised, it was argued, and thus
tional economy.
It would be an¬
age of "hard money" in India, the business would be stimulated and
other instance of "tinkering with
British Government requested the debtors would be better able to
the currency," a recurring incubus
United States to release a
part of meet their obligations with "cheap which has oppressed the nation
its supply and permit its
f- throughout its history. Nothing is
shipment money."
to India.
But what happened?
Coined silver dollars to
probably more disturbing to eco¬
Since a provision of the Silver
the number of $271,000,000 were
nomic stability than a threat of
melted down for this purpose and, Purchase Act of 1934 required the
altering the base of the monetary
to provide against the
resulting Secretary of the Treasury to buy system, by means of which we
I reduction
of
the
currency,
the foreign as well as domestic silver make
exchanges, provide for de¬
Federal Reserve Banks were au¬ within the stipulated prices, and
ferment of payments, and store up
thorized to issue the same amount limited only by the condition that

Which

the

30, 1945. Checks will be

Dialled.

CLIFTON W.

of

of

15, 1945 to stockholders of

mailed.

owner

the

De¬

on

inject

to

the outworn principle of Interna¬
tional Bimetallism into the delib¬
erations.

payable

record

November

November

eties

per

on

Stock

cember

The

the

$1.00

of

declared

Preferred

corporation,

with increasing demands upon it.

ignored in the international mone¬
tary setup. Moreover, the silver
ference

Cumulative

$4

.

is

dividend
been

has

share

a

British ally
to relieve the scarcity of circulat¬
ing medium in India.
As in the

"grant-in-aid" to

quarterly

A

engineering arts and sciences in
all their branches, through two
departments,
The
Engineering
Foundation and the Engineering
Societies Library. The Corpora¬
tion currently has total assets of
nearly three and a half million
dollars, not including the value of
its Library, and is facing a pro¬
gram of expansion to keep pace

Corporation

re¬

was

elected Secretary.

the movement • was given at the
served on the Engineering Foun¬
piece Bretton Woods
Conference, when
ver
reached
the
low
pri£e
of of monetary legislation
as
has the silver
Board
for
three
years.
producing nations en¬ dation
around 50 cents an ounce.
been placed upon the statute books
tered a protest that the position Everett
S.
Lee,
engineer-inin the last half century.
It will be recalled that the PittThe leg¬
of silver as a monetary base was
charge, of the General Electric
man Act was
islation was based largely upon
passed
until

Assistant Treasurer. John

elected

Society of Mechanical Engineers
and

Ralph

Roosevelt, mining engineer,
Canaan,
Conn.,
VicePresident; Albert Roberts Secre¬
tary-Treasurer of the Minerals
Separation North America Corp.,

American So¬

are:

con¬
Other,

are;

New

ciety of Civil Engineers, American
Institute
of
Mining and Metal¬
lurgical Engineers, The American

value) there would exist

.

Schenectady,

Vice-President.

a

M.

J. P. H. Perry, Vice-President of
the ■ Turner
Construction
Com¬
President

as

officers elected Oct. 25
of

:

pany,

tinues

tion, the John Fritz Medal Board

The Danger In the Situation

«.

(its monetary
a splen¬
hardly
needs
recounting.
The did
opportunity for the silver in¬
clamor for "cheap money" which
terests to agitate for "free coin¬
is generally prevalent during
a
age" and bimetallism. Thus, there
period of business depression and is a likelihood of a returri of the
financial crisis was appeased ..by
"Bryan Era."
Some indication of
silver"

for

cur¬

throughout
the
abated, the price de¬
cline was rapid and drastic.
This
decline continued despite the gen
World

eral-rising price level which
4

to appease the
gain
political
support, sought "to do something

inflation

rency

order

inflationists

longer

paper

in

tration,

But when peace was re*

stored, when silver

*

economies in treatment,

224$

The
this

Broad

Street

.

JOHNS HOPKINS, Treasurer

'*

New York, N. Y., October 30, 1945.

Board

of Directors of this Company has
declared a dividend of Twenty (20)
per
share on the outstanding capital
payable December 15, 1945 to- sharehold¬

day

Cents

stock,
ers

of

ber

16, 1945.

record

at

the

close

©f

business

Novem¬

C. O. BELL, Secretary.

October 23, 1945

Philadelphia, Pa.

THE UNITED STATES LEATHER CO.
The Board of Directors at a meeting held
October 31,
1945 declared a dividend of

Class A Participating Mid
pavable December 15, 1945
15, 1945.
..."
C. CAMERON, Treasurer
New York, October 31, 1945
i

per share on
the
Convertible Stock,

to holders of record November

Thursday, November 8, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

£244
ARTICLE

f

./**»♦

ti

'

*,

*

■;

.*/•-.

' j. •••.' 7

•

•

•

•' 'vr

■

t

■

t

"

-

?. ;■ :t

;

ments

Broker-Dealer Personnel Items

view

■*;" •*. )'

; <»

-

<t./.

Dutch National Bank Maintain

f .<

contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publicntionjn this column;
11

you

'

Co», lac*

&

7

"

'

M.
of

DETROIT, MICH.—Minton
has joined the staff

Clute

Buhl Build¬

Baker, Simonds & Co.,

Mr. Clute has

in the U. S. Army.

Prior thereto
Securities Co.

he

with Straus

was

in

their

tween

areas

direct and

serve

.

which

not

do

useful economic

.FRANCISCO,

,

CALIF.—

f

*:■

,

.

bilateral

-

recently been

ing.

other

each

policies and, in particular, with a
view to preventing transfers be-,,

!

i7 *7
Chronicle) ;7k

1

to The Financial

(Special

:

assisting

0£ .commercial-purposes.,7
v>
Continuing the policy of publishing the eompdete text of the
>■;'.'»•
:■!*
J i
monetary agreements between Great Britain and other
•0 .7.§; ARTICLE-v7 ; 7:7;
Owsley B. Hammond, formerly countries, the "Chronicle" prints below the text of the Agreement
Any sterling beld by* De Neder¬
with E/F. Ilutton & Co., has been between the United Kingdom and the Royal Netherlands Governlandsche Bank shall be held and
add£d to.thestaff of Kaiser & Co., ment/ dated September 7,1945 and released by the Foreign Secre¬
invested only as may be agreed
Russ Building.
tary of the British Government.
7
; i i 7^
-<
by the Bank of England and any
Monetary Agreement between the ^
I Special to
Netherlands guilders held by the
The Financtal Chronicle)
Government of the United King¬ the credit - of "De Nederlandsche
SAN
FRANCISCO^ CALIF.— dom of Great Britain and North¬ Bank's; No. 1 Account with the Bank of England shall be held
Emory A. Jackson has become af¬
as may
be
Bank of England amounts to £5 and invested only
ern Ireland and the Royal Netherfiliated with Livingstone & Co.,
Dev Nederlandsche
million plus the additional sum re¬ agreed ' by
7:;' lands Government.
Russ Building.
7;,7;;;v::7-7
••
--J
ferred to in - sub-paragraph (<t) Bank.
ARTICLE 8.
London, 7th September, 1945
.-7.77
above, against gold to be set aside
(Special to The Financial Chronicle)
The Government of the United in the name of De Nederlandsche
O) If during the: currency of
; SAN
FRANCISCO, CALIF.—
Kingdom of Great Britain and Bank at the Bank of England, jliis;.Agreement the Contracting
Willard Hr Sheldon has become
Northern Ireland of the one part London.
Governments adhere to a general
7".
'
associated with Walston, Hoffman
and the Royal Netherlands Gov¬
Monetary
Agree&
(iii) De Nederlandsche Bank international
Goodwin,
265
Montgomery
ernment of the other part have
shall at
all times maintain on ment they will review the terms
Street.
He was formerly with
of the present Agreement with
agreed as follows:—
their No. 1 Account with the Bank
Stewart, Scanlon & Co., and prior
of England a minimum balance a view to making any amend¬
>
thereto did business as an indi¬
ARTICLE 1.
the amount of which will be de¬ ments that may be required.
vidual dealer, f 7 7
(i) The rate of exchange be¬ termined in
(ii) While the present Agree¬
agreement with the

SAN

Mclnerney is with
V J'

to

keeping capital transactions with¬
in the scope of their respective

(Special to The Financial Chronicle)

i

H.
A. W. Benkert
70 Pine Street.

YORK, N. Y.—James

NEW

a

a

England and That Gold Set Aside at Amsterdam Be at: Bank 7 of
England's Free* Disposal. Provides for Free Exchange at Fixed Rate
Between the Two Conntries and Sterling Area;

.

I

£1, and Requires That ihe
Balance of £5 Million In Bank of

Compact Fixes Guilder Rate at 10.691 to

177''.J' 7

6.

two Contracting Govern¬
shall
co-operate
with a

7; The
i

.

.

'

'

>

Chronicle)

to The Financial

(Special

•

MICH. — Karl E.
with Slay ton & Co.,

DETROIT,

v

Wagner- is
Inc

(Specl&lto The Financiae Chronicle)

i

:

GRAND RAPIDS; MICH—Robert Irwin has been added to the

Co.,
Build¬

staff of Dudley H. Waters &

Commerce

of

Association

ing.
(Special

ald

to The

(Special to

S.

The

Netherlands
guilder
sterling shall be Neth¬
erlands guilders 10.691= £1.
(ii) This rate (hereinafter re¬
ferred to as "the official rate")
and the

IND. —Edward
R. Berg has joined the staff of
Thomson & McKinnon, 108 North
Street.

Main

is now associated
Miller &
Co., 650

*

-

«y

,

Fairman & Co.,

Revel

with

South Spring

Street.

The Financial

TOLEDO,

Chronicle)

OHIO — Richard J.
Todd have

7

(Special to The Financial Chronicle)

7 LOS

rejoined

Bell &
Madison Avenue.

ANGELES, CALIF.—Clif¬

Beckwith,

have

Heybrook

L.

William

and

:

Inc.

V(Special

519

with

is

Sanborn

United

W.

C.

National Bank
She was* previously
With the Wisconsin Company.
First

Company,

to The Financial

(Special

O'Mahoney

Hotel;

Commodore

shall

the

the

yord Building.

Dec.

on

which they

5.

y:

7'

ator;

(Special to The Financial Chronicle)

to

Clark

Davis

(Special

to

The

Chronicle)

Financial

FLA.—Raymond

MIAMI,

being worked out
year's meeting the

this

be

is

Chairman

the

of

Newman & Co., Ingraham Build?

and has appointed a special com¬
mittee for this event; The Lunch¬

Committee

eon

(Special to The Financial Chronicle)

*

have

Walter

and

been

added

W.

the

to

is

under

permitted to make to
residents of the sterling area—

staff

of

The Wisconsin Company, 110 East
Wisconsin Avenue.
'

Home

Insurance

Butler

of

the

Co.,

Charles

Insurance

to be credited at the official

to

(Special

to

NEW

7

mund

C;

The Financial

HAVEN,

Monterose

Lane

&

CONN.—Ed¬

is

with

Co., Inc.,

70

George

Mutual Life

Ins.; C. L. Desoard;
Floyd N. Dull, Continental Casu¬
alty Co.; W. R. Ehrmanntraut,

College

Street.

with

is

count

of

America; G. A. Bucking¬
ham,,New York Board of Trade;
Clancy
D.
Connell.
Provident

Chronicle)

Bank

Account

P.

Co.

the

of

England's

De

rate

No.

1

Nederlandsche

Bank, provided that the balance
standing to the credit of that Ac¬

North

.'

(a) against Netherlands guilders

the

ley of the Maryland Casualty
Company and includes the fol¬
lowing: Walter F. Beyer of the

Stebbins

Netherlands

are

area,

Chairmanship of Charles S. Ash¬

MILWAUKEE, WIS.—Edwin W.

Schenk

the

Area, under the ex¬
change regulations in force in that

Federation's Executive Committee

American

not

thereby

increased
guil¬

above 53,450,000 Netherlands

or
'
(b) if the balance to the credit
the Bank of England's No. 1

ders;
of

Account

with

Nederlandsche

De

Bank amounts to 53,450,000 Neth¬
erlands guilders, against gold to

Surety Co.; James P.
be set aside in the name of the
Fordyce, Manhattan Life; James
Bank of England at De Neder¬
Garrett, National Casualty Co.;
is
with
Griffith
Co.,; Farnam
landsche Bank, Amsterdam.
J. E. Lewis, Aetna
Affil. Cos.;
B uilding. 77
777J
(ii) De
Nederlandsche
Bank
R. M. McClaskey, Travelers Ins.
'C
•' '
Co.; A. R. Quaranta, Marsh and (acting as agents of the Royal
7
(Special to The Financial ChronicuO ;
shall
McLennan;
Wm.
A.% Riordan, Netherlands Government)
ORLANDO,
FLA. — Quenton
Aetna Affil. Cos.; H, Salmon Jr., sell Netherlands guilders to the
Farr, Foy D. Kenney, and Arthur
Bank of England (acting as agents
Johnson &
Higgins; Archie C.
H.
Sampson are now connected
of the United Kingdom Govern¬
with
Southeastern
Securities Seymour, Ehgle Indemnity Co.
ment) as may be required for
Corp., 304 West Adams Street,
payments which residents of the
Jacksonville, Fla. Now Ferris & Co. Inc.
sterling area, under the exchange
WASHINGTON, D. C. — T h e regulations in force in that area,
(8pecial to The Financial Chronicle)
firm name of Ferris, Exnicios & are
permitted to make to resi¬
PASADENA, CALIF. — Walter
Co., Inc., Washington Building, dents of the Netherlands Mone¬
H. Rees is with Milton C;- Powell
has been changed to Ferris & Co.,
tary Area—
Co., Security Building.
Inc<
Officers and staff of the
firm, which is a member of the ; 7(a) against sterling to be cred¬
(Special to The Financial Chronicle)

OMAHA, NEB.—Elmer N. Stein

•

R.

—"—

,

.

which

of

balance

will

be

'

*

(Special

;! ST.

to

The

Financial

ited at the official rate to De Ne¬

Chronicle)

Washington,

D. ; C.
Stock
change, remain unchanged.

LOUIS, MO.—Joseph Brone-

meler has become associated with

has

Mr. Bronemeier

been

Army.

serving, in the U. S.
Prior thereto he was with

Smith, Moore & Co.

7

7- ST

The

Financial

7

PETERSBURG, FLA

'

LOS ANGELES, CA^IF.—Karl

Lott,

,

Securities Co., Florida
Building.

tional Bank




the

Jr;

has

rejoined

the

Dar¬

Advertising Agency,
South Spring Street, after 46

months

of

Mr. Lott

service

in

the

Army.

not

Bank

that

the

the

credit

of

of

England, pro¬
balance standing
that

thereby increased above
plus such additional

borne

lands Monetary Area;

s-.ci

Belgium, France and Germany.'

unit

and J

saw

action

in
-

£5
sum

alent to the net amount of sterling

Na-v
;

a

is

as; the contracting parties shall
have agreed to recognize as equiv¬
owned

was

Account

million

technical sergeant
and served overseas with an air¬

—

Michael W* Sullivan is with Flor¬

ida

to

win H. Clark

'7.7 777/7
Chronicle)

with

Rejoins; Darwin Clark

541
(Special to

derlandsche Bank's No. 1 Account

vided

Bemple, Jacobs & Company, Inc.,
408 Olive Street.

Ex¬

at

the date of this Agree¬

ment by residents of the

-(h)

if

Nether¬

or—7;-:;

the balance standing

to

Eng¬

Bank,

The

cumstances.

Bank

agents of their respective Gov¬
will maintain contact
all technical questions arising
out of this Agreement and will
collaborate closely on exchange
control matters affecting the two

as

ernments,

derlandsche Bank.

on

ARTICLE

3.

*

(i) The Bank of England shall
have the right at any time to sell
to De Nederlandsche Bank, against

(iii) As opportunity offers the
Contracting
Governments
shall
seek with the consent of the other
interested

Bank

shall have the right

to

sell

at any time
the Bank of England,

to

official rate

in

sions of
of

ARTICLE 5.

use

7 7
,
Notwithstanding that each
of the Contracting Governments
shall be alone responsible for its
monetary'
relations with third
parties, they shall maintain con¬
(iv)

v

tact

terests of

payments to residents
the sterling area; or
transfers

(c)

to

residents

Monetary

Area

and

the

dom. 7

of

erlands Monetary

sterling

Neth¬

Area" shall in¬

the following

clude

territories:—

Netherlands Territory in

be authorized by the United
Kingdom Government under the
arrangements
contemplated
in
Article 8 (iii) hereof.

Royal

7;-

(ii) The expression "the

may

The

of the present

tions in force in the

to the extent to which these

(ii)

7
9.

exchange control regula¬
United King¬

by the

of

countries outside the Netherlands
area

the other;

For the purposes

7

(b)

re¬

Agreement:-—
7*
(i) The expression "the sterling
area"
shall
have the meaning
from time to time assigned to it

Monetary

;

the-monetary

ARTCLE

(a) transfers to other residents
Netherlands

wherever

lations of the One affect the in¬

the availability of sterling at the
disposal of residents of the Neth¬
erlands Monetary Area for mak¬
ing—

the

and to
their

sterling area.

Government
of
the
United Kingdom shall not restrict

of

Monetary. Area,

Netherlands guilders at

disposal to make payments of a
current nature to residents of the

The

Area;

Area

sterling

use

erlands

England's free disposal
be exported
7

(ii) Gold set aside in London in
accordance with the provisions of
Articles 2 and 3 of the present
Agreement shall be at De Neder¬
landsche Bank's free disposal and
may be exported.

(i)

Monetary

at their disposal
to make payments of a current
nature to residents of the Neth¬
to

Articles 2 and 3 of the

and may

Netherlands

the

provi¬

present Agreement shall be at the
Bank

Monetary

Netherlands
,

Amster¬

dam in accordance with the

-

Area; and '^.77..
(b) to enable residents of coun¬
tries outside the sterling area and

4.

set aside

the

and

or

ARTICLE

Gold

at

countries outside the sterling area

gold to be set aside
atDe Nederlandsche Bank in Am¬
sterdam.
77
7; 7':
-7

(i)

7 /
guil¬

ihe disposal of residents
of the sterling area and sterling
at the disposal of residents of the
Netherlands Monetary Area avail¬
able for making "payments of a
current, nature
to residents; of

ders

Nederlandsche

De

parties—

to make Netherlands

(a)

of England in London.

(ii)

'

areas.

part of the sterling balances
held by that Bank, either Nether¬
lands guilders at the official rate
or gold to be set aside at the Bank
or

Europe

(the Netherlands), Islands of the
Netherlands Archipelago in Asia

(Netherlands Indies),

Netherlands

and Terri¬

tories of Curacao and

•-

v

of

land and De Nederlandsche

the

deter¬

mined in agreement with De Ne¬

Nederlandsche Bank

of

residents

minimum

a

co¬

operate to apply it with the nec¬
essary flexibility according to cir¬

1 Account with De Nederlandsche

Bank

amount

Con¬

shall

Governments

tracting

against all or part of the Nether¬
lands guilder balances held by
that Bank, either sterling at the

,

required for payments which

Henshaw,

Paul

77

>

Monetary

Green is connected with Frank D.

;■

De

ling to

Gustave R. Michelsen of Hall and

v

control.

ment remains in force the

England.

at all times maintain on their No.

or

(acting as agents, of the Royal
Netherlands Government) as may

largest in the history of the Fed¬
eration, with an expected attend¬
ance
of
approximately
1500.

Com-

Langford Building.

,

*

with

is

won

above

(i) The Bank of England (act¬
ing as agents of the United King¬
dom Government) shall sell ster¬

Plans are

make

spread

!£"ARTICLE 2:7.,;'' 1>':

A.

Company, will introduce the Sen¬

} MIAMI, FLA.—Frank M. Han-

maximum

below the official irate which will
be
authorized
on
the markets

Lincoln, President of
Metropolitan Life Insurance

Leroy

Lang-

Bank, as agents
respective Governments,
fix by
mutual agreement

their

of

of

(iv) The Bank of England shall

all

De Nederlandsche

Joseph

eration of the State of New York,
in the Grand
Ballroom
of
the

C. Byrne

Is with Clark Davis & Co

relationship between the

(iv) The Bank of England and

Senator

Luncheon of the Insurance Fed¬

Chronicle)

Frank

MIAMI, FLA.

i' /

Meeting

States

of Wyoming will
be the guest and principal speaker
at the 31st Annual Meeting and

'^Building.

a

two currencies.

Insurance

Milwaukee

The

volving

.

WIS. —Mary

the basis of all transactions in¬

as

0

./

to The Financial Chronicle)

MADISON,

•

varied

(iiij In all territories where
they have jurisdiction the Con¬
tracting Governments shall en¬
force the use of the official rate

ford D. Bundy, Ralph C. Hatton,

joined the staff of Slayton & Co.,

be

not

cept after mutual consultation.

Foote and George M.

Bank

£

by either of
the Contracting Governments ex¬
shall

(Special to

the

tween

Chronicle)

Financial

SOUTH BEND,

Financial Chronicle)

ANGELES, CALIF.—Ger¬
G. Croft, formerly; with

LOS

v

•

'

Surinam.

Government shall not restrict the

(iii)

availability of Netherlands guil¬
ders at the disposal of residents
of the sterling area for making—

Bank
ered

(b) payments to residents of

the

Netherlands Monetary Area; or

residents

of

countries outside the sterling area

Monetary
Area to the extent to which these

and

may

" the

Netherlands

Royal
trboveramenfr^7 wnder

be authorized by the

Netherlands

the arrangements

Article 8 (iii)

area

and the Netherlands

Monetary Area.

of the sterling area;

to

between the

transactions between the

as

sterling

(a) transfers to other residents

(c); transfers

Transactions

of England and De Neder-;
landsche Bank arei to be. consid¬

contemplated in

hereof. 7*7

'

-

Transactions entered into

(iv)

by the Government of any terri¬
tory included in one of the two
areas

defined above

shall be re¬

garded as transactions entered in¬
to by a resident of the said area.
7

ARTICLE 10/77

*7)

Anglo-Netherlands
Agreement of the 14th June, 1940,
continues in force, the provisions
While

the7

'*

^

«■*

^Volume

'

162

/Nuniber/4436/

;s;of r the ..present: Agreement

THE COMMERCIAL & FINANCIAL
CHRONICLE

shall

not

modify .the arrangements set
•out; in that Agreement for pay-

I.'

jments

between

the

sterling

area

i -and the'Netherlands, Indjes, On
tthe expiry or abrogation of that
1 ;Agreement the
Contracting Par¬
w

lies will review the terms of the
jpresent Agreement with, a; view

Wk

.to

making

amendment

any

.may /.be, /required/:

'$0:$

that

^Meanwhile,

sterling balances " which Have al¬
ready accrued or may; hereafter

':-uh;$s,*

-accrue; under

the

terms

of

the

and

,

which

are

residents of

at„the disposal of

the

Netherlands

ment.

•

ARTICLE 11.

ent

pres¬

Agreement, the Anglo-Neth-

-^.erlands Agreement

(Curacao and

Surinam) of the 25th July, 1940
«hall be abrogated and the bal¬
ances

which

under

shall

cordance

have

be

with

the

in

/~ /;//

ment.

step

the

development of a sound
program for the future security of

and strengthen

ItyT

of

the

each

first

the

was

opposition to the proposed
Expressing the view

vital

problems

within

defects,

Senate

he

bills

have

many

offered, according to
Barkley, in special

R.

it

proach to

as

"erroneous

an

"Some of the affirmative

port for it is based
subcommittee

mission

of

"eminent

adjustment after mutual

drawn from Government and bus¬
iness ranks to study the issues,

tion, especially in connection with
the operation of Article 2 (ii)
(a)
and Article 10, shall come into
force on the day of its signature.
At
any
time thereafter either
Contracting
Government
may
give notice to the other of its in¬
tention
ment

to

terminate

and

the

-

and

to the "Times" continued

Mr.

emments agree otherwise.

whereof

the

nomics

have affixed thereto their seals.

On

behalf

of

the United

the

Three

Government

Kingdom of Great

curity Resources Board,
This

It

uous

on

and

years

in the

Frank.

Jr.

Eberstadt

a separate depart¬
co-equal
with
War
and
Navy." He added:

"But

I

do

with General
Arnold (Commander of the Army

and

Air

agree

Forces)

that: steps must be
taken to prevent these forces from

reverting

.

automatically

Mr. Forrestal's forceful

of

Senate

A.

Siegel, partner in
the firm
of
Siegel & Co., 39
Broadway, New York City, was
discharged
from
the
U.
S.
Army on Oct. 28, and has now
firm.

participation

Harry Foshko,

member of the

Curb " Exchange,

New

York

been

admitted

to partnership

has
in

Samuel Abrahams & Co.,"25" Broad

a

presen¬

critical

eight members

Military

Affairs

se¬

curity council and the proposed
Secretary for Air put in he thought
the plan not much different than

that

one

national

department would
any one

that

was

man

defense

be too

big for

to administer.

about

the

best

the Secretary got.'
■ Mr. Forrestal laid his

But

support

has

Mr. Foshko

been, active as -an

Curb Floor broker for

the

individual
some




from

lessons

and air forces.

sea

Continuing, the Associated Press

time.

line

and

declared:

.

"The

future; of both Germany
and Japan is bound, up with the
general justice, of peace - settle¬
ments in Europe and Asia.
The
•

destruction

of German and

militarism

nese

will

not

Japa¬
imperialism
if white

and

preserve

peace

imperialism, J British, American,
French, and Dutch is perpetuated
Europe remains under Rus^-

and

siari

•
antf/D*it|sb Spheres,*** nf. in*
fluence.. /V;/*;>X":,r -i VI
of the worst the / "lit repeated ' .resolutions
we

as one

ever seen.

^

called

The Na¬

attention

to

the

,

"

enforced

dreds of thousands of men in the
army

and navy.

■

toward

•

^

which

the

-

does

look

not

realization

of

-

world

economic and
dangerous growth 'Wide, federation
American militarism and im¬ political—of free peoples: 1
/
/

of

means a

—

view

■

*./"I do not appear here simply

ican

people from
of unemployment.
our

a

a worse winter of hunger and cold
during the.' war.' UNRRA

than

real cure

has all but broken down. Material

reparations are extorted from na¬
proclaimed lib
tions made slums by Allied
policy
Such control was exercised, he erals advocate this policy of prosaid, through the wartime joint longed occupation as necessary or lack of policy,
for the reform of Japan and Ger-1
"It is not yet too late for a
Chiefs of Staff after "we learned
from
the
hard
experience" of many. Mostly this contention is' policy of true cooperation* But
stated:

,

<

_

"Certain

/

self

""

r

.

The Secretary said that the sin¬

the

on

that

noted

war

fronts but

in

here

.

,

ing

uo

as

one

jobs

toughest

of the biggest and

confronting

Con¬

gress.
The

proposed consolidation of
the War and Navy Departments
was described on Oct. 23 by Fleet
Admiral Ernest J. King as "work¬
ing out the problem backward."
Associated

Washington
lows: 'W

advices

Press

quoted

him

as

from

fol¬

said.

"This

to be the

the world by

site

theory."

mittee

.

nation

Jias

mosf powerful in

following the oppo¬
In his, appearance

Military Com¬

shortly

before President
Truman gave his views on -the
military situation to a joint ses¬
sion of Congress, he supported a
substitute program for post-war
national

defense

advanced

by

Secretary of the Navy Forrestal.

on

From the Associated Press

quote:

>

of

we

alse

: •

He [the Admirall summarized
in.
opposition to unification. I prefer his post-war planning this way:

it

vengeance,

is

Allied

nese-—white American

now

racial

.

ar¬

late. The direction of
policy must be changed
peace is to be won.
No

very

hate and—in the case of the Japa¬

if

overwhelming
force, no
inter¬
"Already Germany and Japan national organization can or will
are
rendered incapable of new long enforce a peace of vengeance,
aggfesion, save asMn the future, imperialism and hate."
,.;:,. .
one ot another of the Big Three /' In another release from the So¬
cialist Party headquarters in New
1. The Navy should continue as York City on Oct. 6 it is stated
rogance.

~

that

separate service "unhampered
operation" by of¬

a

ficers "unfamiliar with naval op¬

erations,"
2.

..

.

'•r

..

■;

War and Navy
should be retained,
each headed by a civilian Cabinet
.

::

to

military

energy

control

Closest

5.

tween

in

Board should

The

should

liaison

be

said

disastrous results.
the

that

other

and

involves

a

use

,of atomic

own

Cabinet

Party said, and in¬
that any attempt to assess

reparations against the Japanese
people should take into account
this

air

use

question

for Congress,
"dividing the War

sharing
energy

of

their

or

substance,
tence

of

national

discussing here

v.

in

use
-

a

or

natural

we are

of the atomic bomb,

r; The Socialist Party opposed any

mem¬

King/said; that this would be
"preferable to the proposed single

*
-

formula

of

atomic

explosives or of any
artificial. radio-active
which
contemplates
,

war or

police
or

under the pre¬

by

power,

any

international

au-

'

today.""

v

Socialist

sisted

Department into two parts."
Al¬
though
opposing this,
Admiral

deoartment

atomic energy,

the constructive

the

He added that

question .pf/a/separate
is

of

The use of the atomic bomb on
Hiroshima and Nagasaki was one
of the "maior crimes of the
war,"

had tried out
various
mergers
of all armed
forces into a single agency with

ber

an

•

v::

already

force with its

use

that

be available for non-profit
enterprises and not for private or
Government monopolies.
: /
r

at. Cabinet

Admiral

and

It asked

authority be set up
of produc¬

methods

energy

•

departments.
nations

war.

/Through its national executive
committee, of which Maynard C,
Krueger is Chairman, the Social¬
ist Party insisted that researches

level be¬
the War, Navy and State

maintained

for

supervise

tion

the War Production Board

be continued.

con¬

States ask all nations
the
use
of atomic

international
to

cies "expanded and amended."
:
4.
Civilian
wartime
agencies
as

Party

renounce

;

should be through the Joint Chiefs
of Staff with subordinate agen¬

such

Socialist

the United

The separate

departments

officer.
3.
Over-all

the

demned presidential and Congres¬
sional moves to keep the atomic
bomb a secret and demanded that

in function and

and War Manpower

"I

come

-

--

rationalization

a

divided control.

r

-

$>t., New York City.

land,

before the Senate

committee.

O'Mahoney

said
he
agreed with Mr. Forrestal's argu¬
ment

as

soldiers.,.

divert

other

and

mander

"super-duper" national

the

than

perilous form of boondoggling to

bomb

of the

-

before

rather

nation's

Associated Press, that the atomic

Acting Chairman, said that if the
Secretary of State were taken out

Senatpr

as

act

direction of unified control of the

17, according to the

regard it as a step backward
to attempt to regiment military
thinking, particularly at high lev¬
els," the ; Navy's wartime com¬

Committee which received it.
Senator Johnson of Colorado,

those

Harry Foshko Partner
In Samuel Abrahams & Co.

of his views met

the

their

/

Activity in Wall St.

active

to

status."

from the

to

pro¬

warrants

power

.

over

to

trained

-

Oct.

on

tary policy appeared to be shap¬

with the
that "air

forces

police

rival

turned

possible to special volT

"Instead of moving in this di¬
perialism at great cost to Amertaxpayers. It may: be made' rection the Big Three are pushing
the excuse for perpetuating mill- j their
rival imperialisms and
tary conscription. It will be a' spheres of influence., Europe face|

tee

"Washington
there was no single military com¬
•
mand."
;
The formation of post-war mili¬

tation

the

Mr. Patterson told the Commit¬

of

basejs; of
tional Executive Committee's a just peace/ These/have been
resolution follows:
generally
V'
ignored
by the Big
"The Socialist Party vigorously Three and in
cohsequence thd
protests the obvious intention of making of the final peace treaties
the government to prolong in¬ has become more difficult; -Bui
definitely an occupation of Ger¬ it is not yet too late to insist thai
many and, Japanvrequiring hun¬ no lasting peace can be made or

"This

manders"

in his statement
"not yet prepared to

reaction

with

respon¬

said

was

direc-j'

the
people.
that the tem¬
policing these

urge

be

as

unteer

Maynard C. Krueger

were

continent has

Forrestal contended.

he

Sidney Siegel Resumes

returned

monetary and other needs of the

Arthur arid Eisenhower and Ad¬
miral Nimitz as "supreme com¬

pre-war

Sidney

The legislation also would hand¬
icap Congress in examining the

ment

Vice Presi¬

as

advisers."

the creation of

Exchange Bank Trust
Company announces the appoint¬

dents^ of the bank.

He would be

although
Mr.
Forrestal
of this program' as "my

posal

The Corn

Albert

could be based.

its

plan,"

Exchange Bank

Elliman

which

upon

under various theater command¬
ers.
He
listed
Generals
Mac-

agree"

M.

that

use

power and certainly beyond his
capacity to obtain and digest the

knowledge

countries

rapidly

described

the capa¬

to

gle, unified control system actu¬
ally had operated in the field

But

Assistant Treasurer.

of Donald

man

spoke

Appoints Two V.-Ps.
ment

agencies

permanent

that he

Corn

one

headed by a chairman directly un¬
der the President.
///..•'/•■■

Navy, resumed his position
that day at J. P. Morgan &
as

any

body to make
policies for maximum use of the
country's natural and industrial
resources
for ftational
security,

S.

Co. Inc.

and

It would be complemented by a

similar

Morgan & Co.
one-half

coordination between the de¬

sible for foreign and military pol¬
icies and their implementation."

was

three

would

partments

;p; lieftinck. 1

announced on Nov. 1 that
William
B.
Weaver, Jr., after

U.

group,

program,

Weaver Resumes Post
At J. P.

Secretary beyond

one

..

.

our

by;

we

task

porary

en¬

"The bill before you is unsound
because it concentrates power in

chosen

ments

Meanwhile

use

it has accepted a principle without
of reasons why it
should be accepted.

/

v

upon

to
plan
for
the
speediest possible relinquishment
of Germany and Japan to govern¬

the

of

;

call

World War II all pointed in the

.

according to the
be designed to
"maintain active, close and contin¬

hugh dalton.

On behalf of the Royal Nether¬
lands Government:
'>"& '?i

(L.s.)

;

tion

imperialism.

therefore

government

apparently moving in the

examination

city of

"We

Eco¬

at

industrialists to ex4

or

and

ance

•

imperialism
ih
spheres of influence in Europe.
These drives, the Committee
added, are behind the .slow de¬
mobilization of troops as well as
behind the drive for peacetime
military training.
r
The Socialist Party called for
a policy of true cooperation with
the
peoples of Europe
which
would help them through a winter
which
the
Allies
complacently

separate armed services, lessen
competition between them in de¬
vising effective weapons and thus
fail
to
provide "guarantees of
either efficiency or economy," Mr.

posed Secretary for Air, and the
head of a proposed National Se¬

Britain and Northern Ireland:

(l.s.)

coordination

security council," headed by a ci¬
vilian chairman directly under the
President, would preside over a
policy forming and advisory body
composed of the Secretaries of
State, War and Navy, and a pro¬

v Done
in London in duplicate
this 1th day of September, 1945.

of

closer

a

pro¬

is

University of
Chicago, said
that
the
Big

I find that report

request he made six months ago.
Under this program, a "national

under¬

signed
plenipotentiaries,
being
duly authorized: thereto by their
respective: Governments,
have
signed the present Agreement and
'

offered

specific

•

whose
man

fessor of

Joint

tirely in the hands Of his military

a

faith

a

the

proposed commission.
" //
This program had been drawp
up for him by Ferdinand Eberstadt,
New
York
investment
banker, he said, as the result of

shall terminate three years after

-In

for

gram

the date of:its coming -into force
unless the two Contracting Gov-

t

also

containing

in part:

among service agencies
and all
others concerned with national de¬
fense as a "basis for study" by the

cease to have effeet three-months
after the -date of .such -notice.' It

v

Forrestal

chart

Agree¬
Agreement shall

:

to the President and
Mr. Barkley's advices

report

Congress.

the

./

citizens"

Chiefs of Staff.

of

Com-

encourage it. Not
time will be neces->

break the power of fascists,

ploit their own people. No con^
quering army ever successfully
imposed true democracy on an
occupied country. What the na-t
tions need is American example
of democracy freed from venge¬

a rd C.
Krueger, Pro¬

lacking in searching and thorough
examination; it seems to me that

consulta¬

'*

.

or

more

militarists

May n

sup¬

creation

com¬

sary to

;•

The

mittee,

report by

on a

for

a

much

5

by the:

"c hai r

fragment of the intri¬
complex problem that

proposal

of

<

gov-

people.

permit

may

a

chosen

a

and

The present Agreement, which
shall be subject to review and

•

ded

;

ap¬

a

•

de-

ernments

partments concerned y^ith national
security."
/ ?.
Continuing to slash away at the
unifications
plan, he also de¬

cate

Frederick

;

Japan to

confronts us," and continued:

the

--2

man

give adequate attention to an ef¬
fective coordihatioh of all the de¬

scribed

on

Oct.

department, and it fails to

on

Washington advices to the New
York
"Times,"
an; alternative

>

ARTICLE 12.

:

Committee

our national secur--

with

secur¬

Condemns Secrecy

Citing the overwhelming demand of American soldiers to bo
to civilian life, the Socialist Party
through its National

.

'
r
" " V;,
• / / 1 speedy
relin-/
pending
program
falte quishment of
two points—fails to deal Germany and •

:

"The

armed forces is best

our

•

-VA

executive i

short

to voice

•■{'

t

forces is. an essential

v»\»

■

returned

to present a comprehen¬
sive and dynamic program to save

that

Article 5 (i) of the present Agree¬

of Atomic Bomb.

to appear

legislation.

ac¬

provisions

our

James W. Forrestal

accrued there¬

available

of

ity and the continuation of world
peace."
It
had
been
anticipated that
Navy Department officials would
oppose the merger suggestion.1 On
Oct. 22, Secretary of
the^ Navy

-

Upon the signature of the

"the /unification

armed

Big Three Are Pushing Their Rival Imperialisms.

opinion," Mr. Pattersons-

my

calculated to maintain that

(i) of the present Agree
.f ;;
://

,

/'In

•

.

proposals to merge the War and Navy Departments into a
single agency, was told by the first witness, Secretary of War Robert
P. Patterson, that
prompt action ~to bring about such a merger would
constitute a step toward maintaining world
peace, the Associated
Press stated in its Washington advices of Oct. 17.
////////■

stated,

Imperialisms

Socialist Party Advocates Early Return of Germany and
Japan to SelfGovernment. Says UNRRA "Has All But Broken Down" and That'

various

ization of

In¬

Sees Rival

The Senate Military Affairs Committee, Which began heatings oh

/

the American people.
The adop¬
tion of such a program of organ¬

dies shall be available in accord¬
ance with
the provisions of Ar¬

ticle 5

Military Croup Studies Merging of the:

IpKJmiM-Armed Services/////I:/;/

to

-1940 Agreement mentioned ;above

I,

/ Senate

2245

thority."*

"

*

•

-

THE

2246

its Washington bureau

Increases

The Economics of Wage

■■

Pirofcsmoar' and
-

Warns Against Thinking

That Raising of

Simply Has Beneficial Effects and in No
•Way Affects Prices.
•
H
A policy of moderation in settling disputes and problems ari$*
ing from reconversion from wartime to peacetime production was
Wage Rates

by Dr.

urged

! In supporting its belief that no
government hydroelectric

Wolman,

Leo

Economics of
C o 1 u mbia

University,
of
The Mutual
and trustee

Insur¬

Life

Company

of New York.

Speaking
before

a

re¬

companies have also
fully met the demands of an un¬
precedented requirement for cur¬
rent to run the factories operating
day and night on war orders.
"Farmers in the Northwest will
not get a saving in the freight
rate on wheat shipped to Liver¬

tric

gional confer¬

held at

ence,

Hotel

the

Pennsylvania
October 9,

on

by The Mutu¬
al Life, Dr.
Prof. Leo Wolman

Wolman

warned

that

faulty thinking of a decade ago
has led this country into a policy

discriminatory

of

forms

all

international

in

treatment

com¬

payments, and investments.

merce,

in part:
The decision to seek agreement
advices added

The

reached

commercial policy was

on

in the

of

negotiations, now
completed, on settlement of U. S.
and Belgian Lend-Lease accounts.
course

Conclusion

of

Disclosure

power

convoke

of

conference

States-Belgian

commercial policy

on

contained

was

to

decision

the

United

a

in

De¬

State

the

partment announcement of the
agreement reached on the settle¬
ment of Lend-Lease accounts.

ped from Lake ports to Montreal
at 4V2c, and the Seaway will not

Of Food

scale to meet competition which have been around $600,000,with similar manufacturers.
The 000. These figures are based on
"thinking" in this case, he con¬ construction costs in 1926 and
tinued, "was that if the firm was 1927; costs are far higher now."
The Chamber has opposed the
permitted to reduce wages, it
would start a country-wide defla¬ St. Lawrence project since it first
was advocated, more than 20 years
tion! I do not hold to this theory.
Bather, I believe that it is defi¬ ago. It is also opposed to having
international agreements of this
nitely deflationary if a firm is not
permitted to meet competition character exempted'from the re¬
quirement of ratification by twoand Is forced out of business."
Dr. Wolman said that techno¬ thirds of the Senate, as is now
logical improvements do not pro¬ proposed. "If both houses of Con¬
vide a satisfactory and immediate gress are to ratify treaties (by a
majority vote), the Constitution
answer to the problem created by
should be amended accordingly,"
a substantially higher wage scale.
"In
manufacturing industries, the Chamber Committee declared.
improved technique is an

important factor in reducing
costs," he added, "such improve¬
ments have come only gradually.

Moreover, most of the country's
employment is not in manufac¬
turing industries where improved
mechanical techniques can sub¬
stantially reduce costs. Most work¬
ers are engaged in non-manufac¬
turing activities in which the op¬
portunity for improved technique
is small.

Parley f

At its second

plenary session, the
Food and Agri¬
culture Organization's conference
at Quebec heard a message from
Nations

United

businesses

are

entirely

View St. Lawrence

§

Project as Injurious
Contending that construction of
the St. Lawrence waterway and

project would be injurious
to the nation's railroads, shipping,
coal mining, public utility and

power

privately-owned enterprises,

Executive

the

Chamber

State
on

of

Committee of the
Commerce of the

of New York made

public

Oct. 28 a report urging Con¬

to
defeat the proposed
undertaking.
The report whidh
will be presented by Peter Grimm,
Chairman of the Committee, at
the
monthly
meeting
of ?< the
Chamber today (Nov, 1) criticized

gress

*

,the project as "economically un¬
bound" and an unnecessary ev-

pehditure of public funds in the
face

of

an

unbalanced

Federal

-budget and huge war debt.




President

which

U. S. to Pay Belgium

inevitably

must

urged all
together for the
accomplishment of one
of the most
important steps in
establishing universal peace, the
ending of hunger throughout the
world.
The

following is the text of Mr.
reported by
which was
conference by the
read to the
leader of the United States dele¬

Truman's message, as
the Associated Press,

,

States

agreed

Clinton P. Anderson:

zation

truly

the

United

will

immediate payment of
to Belgium.

make

we

had

harder to win the peace than we

It

begin

to

not

won

our

victory

common
a

an

$61,000,000

in the world
cency

no

for candor and de¬

would

there

room

for

an

have

international

these
First,
that people in all parts of the
world can and should have plenty
of food and of other products of
the farm; and second, that the
world's people who draw wealth
dedicated to
propositions:

organization
two
simple

from

,

earth and sea

the

should enjoy their fair
the good things of life.

and

can

share of

reach

to

Food

and

Creation

them.

of

a

Organiza¬

Agriculture

in itself will not be enough;

tion

Sept. 2.

tions

we

nor

to the patient co¬

must look

of

the

through

rneans.

But

family of

FAO

the

and

work

na¬

other

you

are

beginning at Quebec is an essen¬

000,000 of lend-lease goods which
were on their way to Europe when
lend-lease was terminated.
The

tial

Belgian government will not Lave
to repay the United States for
these goods.
*

The

,

4. To give the

Belgian govern¬

ment $45,000,000 ih Army surplus
medical supplies, clothing, shoes,

trucks,

trailers

construction and

According to

and building re¬
raw materials.

advices to the New
I York "Journal of Commerce" from

step forward, and a long one,
The world is watching your ef¬

forts

for

still

Food

and

another reason.
Agriculture Or¬

ganization is the first of the new
permanent world organizations to
grow out of the wartime coopera¬
tion of the United Nations.
Its
early stages, for good or ill,
do much to set the pattern

will

for
the other world organizations that
must follow if we are to succeed
;

of

Guar-1

the

berg in the last year, bringing the
total membership to'769, including

chapter in London where the
has had offices for 43
years.
An address was made byWilliam L. Kleitz, Vice-President
of the company and a member
of the club, and Clifford B.McCreery
accepted a membership
a

company

certificate

behalf

on

of

all

the

newly inducted members.; Senior
officials

of

the

bank

who.

are

bear their full sharesi mittee; W. Palen Conway* Vice*
responsibility for a success¬ Chairman of the Executive Com^

of all, and to

of the

ful outcome.

mittee; Eugene W. Stetson, Chair-

convey

my

pends on your work during the
days ahead. I am fully confident
you. will
accomplish your pur¬
pose,
no matter
what obstacles
may arise. Working together you
fail.

cannot

of the Board, and Charles E,

man

Dunlap and Cornelius F.

Iitf'l Differences Will Be

Albert

Adjusted Says Truman
queried Presi¬
dent Truman at his press confer¬
ence on Oct. 18
as to the differ¬

Russia over
policy in the Balkans and Japan,
Palestine,

over

the President indicated an assur¬
that these would eventually

ance

through' negotiations, an

Associated

Press Washington

re¬

port stated, adding that Mr. Tru¬
1.

declared that:
The stalemate

over

the Bal¬

minister's
meeting in London, which now
has spread to questions of Far
East control, will be worked out
in correspondence with other gov¬

kans

at

foreign

the

ernments.

2. He has asked Prime Minister

Attlee of Great Britain to permit

immigration

the

forthcoming

was

.

of the club for
year,

succeeding

Vincent G. Potter, Assistant Man¬

of the Foreign Department.
Membership in the club is hon-

ager

-

In addition to membership
certificates and service emblems,
members other than officers re¬
ceive

annually

years

extra

an

attainment

upon

of service.

week's i
of 25

4

,•

Truman Hails

Czechoslovakia

The British

Government still has the question

consideration,

but

thinks this figure too high.
3.
Generalissimo Chiang

Attlee

Kai-

shek's

issued

Truman

President
statement

Oct.

on

a

congratu¬

22

lating Czechoslovakia on its first

independence anniver¬
according to Washington ad¬
the Associated Press,
which
quoted C the President as i
postwar

sary,

vices from
follows:

"On the anniversary

of Czecho¬

slovak independence I wish to ex¬

tend

my

own

personal greetings

and the wholehearted congratula¬

tions

of

people to

American

the

President Benes and the people of
Czechoslovakia.
This
commem*
oration

of

the

founding

of

the

Republic is of par¬
significance■* in marking

Czechoslovak

stateless ticular.

100,000

of

Jews into Palestine.
under

company,

elected President

with

Britain

with

and

the

of

Auditor

Assistant T

Gettman,

newsmen

existing

ences

Vi
L.

vacation

When

Kelley,

directors..

orary.

the

first time

since the German

occupation that the. Czechoslovak
people have been able to cele¬
brate their independence in their
own homeland as a free people.

suggestion that the Japa¬
people determine Emperor
Hirohito's future is a good plan,
as he views it, although no policy

ciples of democracy and freedom,
out of
which the republic was

has been established

torious

nese

on

that ques¬

tion.
new "Big Three meeting"
contemplation to iron out
difficulties
which
developed
at

in

London.
5. He does not know

Ambassador

Washington

why Soviet
Gromyko came tc

on

a

flying trip this

week* wishes he cUd, and can only
suppose it was on the Ambassa¬
personal business.

Continue

as

Staff Chief

Commenting
on
an
editorial
which appeared in the Washing¬
ton "Post," to the effect that Gen¬
eral George C. Marshall, Chief of

Staff, should be put in charge of
the proposed universal military
training program, President Tru¬
man stated on Oct. 25, according
to
the
Associated
Press! from
Washington, that the General was
still
needed in
his
preseht ca¬

pacity, even though he woiild add
prestige to the training program.
The "Post" editorial, the Associ¬
ated Press stated, said that Amer¬

the^ coun¬
Marshall^ and

ica could not disregard
sel

of

General

added: "He should

be placed: at

the head of the universal military

training

program

he

prin¬

realization that the

have been vic¬
wars will

born 27 years ago,

in

two

the

world

people

Czechoslovak

their contribu¬
world peace.
/ "V

to make once more

tion to

"The

watch

people

American

sympathetic interest the dil¬
igent efforts now being made by
the Czechoslovak people to erase,
the effects of the Nazi rule and
with

to restore their independent na-.
tional life on the traditions which
have always been identified
the Czechoslovak Republic.

President Wants Marshall
to

"The

inspire

4. No

is

are

world

directors

prepared: members of the Quarter. Century
Club include William C, Potter,
to work together with the delega¬
tions of other nations for the good Chairman of the Executive Com¬

dor's

high goals. Neither
any single nation
has as yet even come close to
achieving either. It will take time
These

the

operation

Belgium $42,-

room

and mutual helpfulness.

Certainly
been

no

and

to this conference

come

which the people

Nations

sacrifice,

2. Tho repay Belgium in dollars
for the goods and services given
to
United
States
forces
since
3. To transfer to

on

United

the

occasion.

momentous

a

occasion

an

is

Nations

United

There would have been

Belgium

States

the

of

ficers

•

man

My thoughts and the thoughts
of the people of the United States
of America
today turn toward
Quebec. The first conference of
the Food and Agriculture Organi¬

effort and com¬
meeting such as
this would have been impossible.

in dollars
monthly for the francs it paid to
the United States Army since Sept.
2. As a result of this arrangement,
pay

Food

Organization:

mon

on

: m,

anty Trust Co. of New York who 3
have served the company for 25 4
keenly. The tasks of repairing years or more, held its annual
the ravages of war and building dinner on Oct. 25 in the Grand
for a saner future are tremendous/ Ballroom of the Waldorf-Astoria
Each day it becomes clearer that with 500 members attending. The
in
many
ways
we
must work club has inducted 204 new mem-

be settled

delegates of the United
and
Agriculture

the

To

Nations

through

Oct. 20 to compensate Belgium for
repaying the United States $90,000,000 more in reverse lend-lease
than it received in direct lendlease. This was indicated in Wash¬

1. To

Agriculture

of

Secretary

gation,

If

Mutual Trade Pact Seen

,

so

President

cultivate, if not yet to gather, the
fruits of victory.

Reverse Lend-Lease
United

the

in

17

Oct.

on

successful

of

$90,000,000 for

The

Truman

members to work

is

incapable of offsetting the wage
Increases of 40 or 50% that have ington advices Oct. 20 published
been advocated in some quarters, in the New York "Herald Trib¬
and any attempt to force such une" which likewise said:
The State Department said this
wage scales upon them will result
in an upward spiral of prices, situation has Created serious eco¬
nomic problems for Belgium, and
smaller consumption of goods and
as a result of financial conferences
less employment."
the United States has agreed:

other

that

difficulties

best wishes
to the delegates of the host Gov¬
ernment of the Dominion of Can¬
ada and to the delegates from the
other United Nations.
Much de¬

,

wage

Guaranty Trust
Quarter Century Club

follow military victory in so great
a war have made themselves felt

Please

Truman Lands Work

.

Dinner of

your

these

pool of 8c to 10c per bushel, as
alleged. Wheat is normally snip¬

"admitting to the school of lower rates from Montreal to
thought that raising of wage rates Liverpool.
,
~
"General merchandise will not
simply bas beneficial effects and
move
at any time through, the
in no way affects prices."
"Forceful and forthright public Canal in an important way. Speed
opinion is necessary to help the and frequent sailings are essential
muddled thinking of some policy in most items for export and im¬
makers that consumer prices could port.
.
The Great Lakes and
be held although wage rates are other channels are not navigable
increased," Dr. Wolman declared. during cold weather, which often
He cited the case of one firm that' lasts seven months. The total cost
of the seaway project will be far
was forced to curtail production
Government
estimates,
because it could not reduce its beyond

"Such

foundation for world

and prosperity.
particularly fortunate that

It is

The Guaranty Quarter Century 3
meeting comes at this time,
cial policy agreement that will out¬ when some of the problems and Club, composed of employees, of¬

of

where

in building a

peace

negotiations did to win the war. But we know
was announced by the State De¬
that the peace can be won. One of^
plants for power or canalized
the major victories can be won at
waterways for moving freight are partment over the week-end.
Pending the calling of the con-, Quebec.
now essential, the Committee said:
The United States is eager and
^ "The
railroads have demon¬ ference, the two governments have
undertaken to avoid "the adoption proud to take its full part in your ;
strated their ability during the
efforts.
The success of this alH
war to
move an unprecedented of new measures affecting inter¬
amount of freight in the face of national trade, payments or in¬ important first step in the life of
vestments which would prejudice the Food and Agriculture Organ-j
heavy passenger traffic, and in¬
the objective of such a confer¬ ization is the primary aim of, my
ability to get new equipment and
country's delegation. Its members1
sufficient manpower.
The elec¬ ence."
more

professor of

ance

Oct. 21, the

soon.to initiate a
series of discussions with the Gov¬
ernment of BelgiumforA commer¬
United States is

law

Labor Expert,

Thursday, November 8, 1945

COMMERCIAL" & FINANCIAL CHRONICLE

has * spon-

with
Lain

confident that the American peo¬

ple will aid the Czechoslovak peo¬
ple in
every: way possible to
achieve this

1

goal."

•

{

Baylor University to
Give Truman Degree

:

t

Baylor University, Waco, Texas',
has announced that it is

expecting

President Truman to arrive there

honorary doctor of
laws degree, Dec. 5, according to
the Associated Press, which added
that it
is anticipated that the

to

accept an

President will address the annual

session
Grand

sored.

of

the

His

Masonic
his visit. '

Texas

Lodge* when

on

leadership

will be

a

guarantor at once of its effective¬
and of its Americanism."

ness

i

3

Volume 162

Number 4436

THE COMMERCIAL & FINANCIAL CHRONICLE

224?!

Calendar of New Security Flotations
to

working capital.

of

List

of

statements

days

registration

will

effective,

become

course

hours

maintenance

enlargement

of

facilities;

filed

be

NASHUA

Sept,

MANUFACTURING

17 registered

common,

on Aug. 22 filed
registration statement for $440,000 first
refunding
mortgage
serial
and
sinking
fund bonds series A dated
July 2, 1945,
due serially Jan. 1, 1946 to July 1, 1957.
Details—See issue of Aug, 30.
Offering — The
offering
price to
thi
public will be as follows: $82,000 of 3s
at 100, $85,000 of 3V4S at 100 and
$273,000
of 3 %s at loo.

York,

X Underwriters-*-B. CX Ziegler & Co., West
Bend, Wis., Is named underwriter. /

a

Registration Statement No. 2-5994. Form
(10-31-45).

S-2.

holders

common

on

each

unsubscribed
writers

shares

at

to

FLEMING-HALL

i

^

NOV.

SATURDAY,

10

statement
cumulative con¬
and 100,00b shares of common, 10 cents par. -

$10,

par

22

Oct.

on

for

filed

6%

preferred stock,

N.

par $5,

of

share

one

t

bacco

burger

?■

filed

a

New-

*

t

Corporation as of a record date to be dis¬
shares

!

Swick

in

and

balance

full

payment

for

about
about

the

Cerf

D.

group.

...

heads

Co.
\

,,

underwriting

into. /

entered

has been

S-l.

(10-31-45).

;

:

filed

has

CORP;

UNDETERMINED
present below a list of Issues
whose registration statements were filed
twenty days or more ago, but whose
offering dates have not been deter¬

registration statement
mortgage bonds, 3%
47,104 shares of $2

and

1975,

due

series

a

first

$3,400,000

for

Details—See

issue of

mined or

.

unknown to

are

.

us.

issued

holders

be

privilege of exchanging
for each
preference under Op¬

of common

shares

convertible

of

tion A.
Under Option B
they may ex¬
change convertible preference for prior
preferred and common stock on the basis
of one share of prior preferred and
two
shares

of

vertible

will

ING

preference.

of

i

,

-

X .-vt X-„ XX

:

Offering—The company is
stock for subscription to its

stockholders of record Oct.

filed a

of

registration statement for 177,318 shares of
common stock,
par $1.
The shares regis¬
tered
are
outstanding shares owned, by
Union Securities Corp., and constitute all
of the outstanding common shares except
owned by

12

I

will

curities

filed

be

by
Se¬

statement

number of

Cal.

Angeles,

.

Business—Air
*

Offering—A

figure

and/or

for

common

share.

■per

shares

are

shares, par $1.

'.

■

Employees'

through

•

.

is

be

will

t

(lied

registration

AIRLINES,

statement

INC.,

for

has

a

net

ment.

$2,000,000

Alaska.

: -V'

property and mail within the Territory of

generally.

1

X

Offering—To be filed by

.

X >-

amendment.

-

.

Proceeds—The net proceeds will be added




Class

X

Is

will

tne

$10;

warrants

to

pur¬

FIBRE

:

purchase warrants.
Details—See

issue

of

Oct.

priced to
the public at $102.50 and the stock at $15

Offering—The preferred
offered

The

purchase
the

public

which

of

$10

at

entitle

be
share.

is

to

per

the holder

to

stock at $5 per share for

common

period

a

the

to

warrants

stock

three years

underwriters for

Underwriters—F.

5

to

are

be

cents

per

Koller

H.

&

sold

to

warrant.

Co.,

Inc..

H.

Union

—

Rollins

underwriters.

Securities

& Sons

Sept.

on

24

^

scription

no

and

par

warrants

LIGHT

1,818,719

CORP., LTD., on Sept. 28 filed
registration
statement
for
2,595,000
of common,

of

Oct.

Mines

4.

Finance, Ltd.,
commitment to

firm

purchase
480,000
shares
at
$1.23
per
share, and has an option on 1,920,000
shares

the

at

The

price.

offering
is to be made among the shareholders of
Ventures, Ltd., Frobisher,
Ltd.,
and La
Luz Mines, Ltd.
(Canadian companies) at
$1.95

same

share,

per

holders;

Price

and

Is

stock¬

Eureka

to

expressed

terms of
acquired

in

Details—See

entitling

issue

be

entitled

of

to

shares of the

new

in

its

turn

offer

subscribe

Va

to

share

the

of

holders
to
share., :\"X'x

■

Sept.

;X

27.

common

Power

subscribe

to

stock

new

the

Light

one

Co.

will

right

company

the offering, as aforesaid.
195,000 shares are to be

purchased by the company geologist, offi¬
and

employees.

1

"

GENERAL SECURITIES

and

filed

28

to

to

be offered in

A

and

units

shares

2

unit.

250,000

"

of

of

to

registration statement for 200,000 shares of common stock, par $5.
a

Details—See

for

17

505,000

class

A

at

$62.20

heads

the

de

Ga.,

Saint-Phalle

&

underwriting group.X

FARMS

CO.

on

:

Aug.

filed

31

8

registration statement for 50.000 shares of
B3

cumulative and participating preferred
stock, without par value.
, /
Details—See

:

issue

of

Sept.

6.

company
Las granted
preferred stock rights to
subscribe to the new preferred at the rate
of one share for each 2% shares held at

Offering—The

per

of

its

share.

Unsubscribed
✓

ment.

be

shares

its

ol,

Power
of

share

commofl

in

holdings

common

filed

by

amend¬

registration statement for 166,063 shares
of common stock, par $1.
Oct.

4.

XX

the

Underwriters—None.
[ V,*'

'f-

\

*'**•'

<

Oil

Co.

of

share,
each

the

at

five

new

the

common

rate

shares

of

held.

Sept.

on

INC.

of

Sept.

on

5Vz%

24

MATERIAL

registered

cumulative

($100

CO.,

shares

12,500

preferred

par)

Stock.
Details—See issue of Sept. 27.

Offering—Company will offer holders of
outstanding $1.50 dividend cumulative pre¬
ferred "stock

1 l-10th

cash

the

right

new

stock

shares

of

to

exchange
the

on

5Vz%

with a
shares Tor

adjustment for fractional

each

four

shares

of

their
of

basis

preferred

old

Un¬

preferred.

subscribed shares will be offered the public

through underwriters

at $102 per share.
Underwriters—Include
Dallas
Rupe
&
Son,
Dallas
Union
Trust
Co.,
Rauscher
Pierce & Co., Inc. and Pitman & Co.,

Inc.

24

Oct. 18 filed

on

&

common

stock

Details—See issue

.

shares

of

In connection

shares at $3

one

new

change
basis

share

Rights expire

for

of

old.

of

at

8%

1.15

preferred

shares

new

Unexchanged
$10

per

offered

to

of

share.

(par
for

New

common

Underwriters—Newburger
Kobbe, Gearhart & Co., Inc.

share

underwrit¬
also

preferred

stockholders

preferred for
at $9.25 per share.

ex¬

$10): on

each

through

share

one

common

in

on

basis

shares

10

of

of June

loaned

with

the

to

t

sbarei

Hano
'

and

7,

of

;

V

Underwriters—Willis

York,f.,

a

of

E.

\

•

>

Burnside
'

.

»

& Co.,

-,

WILSON & CO., INC., on Sept. 10 filed
registration statement for 250,000 shares
cumulative preferred stock and on un¬

number of common shares.
issue of Sept. 13.
Underwriters—Smith, Barney & Co. and
Glore, Forgan & Co. named principal un-i

specified

Details—See

derwriters.

X-XX;;, ,Y>?X-X
""X' -'-v XV
Financing Temporarily Postponed—It waa
Sept.
28
that
the
proposed

■

announced

financing

temporarily

was

Results of

postponed.

1

-

Treasury

the

Ben
wil

lik«

registrant

acquisition of

Inc., Is

the sole underwriter as to an ad
100,000 shares of, common regis
The balance of 530,823 shares o:

stock being registered have heretofore beer
to Bennett & Co., Inc., in exchange

Issued

Bennett & Co., Inc.. Dallas. Texas.

X

;

Stop Order Hearings—Stop order hear¬
ings to determine whether the effectiveness
of registration statement should be sus¬

pended now pending before the SEC.
COMPANY on

TOWING

ROBERTS
11 filed

July

registration statement for $500,4Vz%
equipment trust certifi-

a

serial

000

Detalls—See issue of

July 19.X 1

' /
Offering—The price to the public of th«
series

average
100.47.

as

to

The

Nordman

:

St

details

GAS

TENNESSEE
CO.

for

ment

17

Oct.

on

an

&

filed

1'

cepted in full.)

,

bids:

-

x+x,nv.

*

-

-

per

its common stockhold¬

The basis

of allotment and

Inc., BIyth & Co.,

without

underwritten

99.905, equivalent rate of

discount

(60%

of the amount bid for at
price was accepted.)

low

There

ilar

was

issue

maturity of

a

bills

of

compensa¬

TRANSIT CO. on Oct. 3 filed

In

By amendment filed Oct. 30

stock

(par $50).
registration -the

amended

by

stock

holders

80,000

will be offered by cer¬
Company is making

an

shares

of

exchange

to

offer

held

the

80,000

$4,000,000

for

three present, holders.
Of
the
$4,000,000 of

of bonds
The three
bonds

are

Securities Corp.; A. C. Allyn &
Co., Inc. and Paul M. Davis of Nashville,
Tenn.
•».
X.„- V
Harrlman Ripley & Co., Inc. is listed in
Equitable

■.

the

amendment

received
will

be

The

by

as

the

$4,000,000

the

sim-;
in

8

$1,318,740,000.

»

ing

mark

from

as

company

cancelled.

principal
of

in

bonds

Money

'

attempt to avert threaten.-financial
catastrophe
the

an

Finnish

has

Oct.

a

from

Stockholm

the

been

it

16,

from

devalued

is

wireless message

New

York

that

on

"Times",

learned

Oct. 16
date

to

which

further stated:

The hew official rate of 136 to
the dollar (pre-war rate about 23
to
the
dollar)
means
a
12V2%

jump from yesterday. This is the
third time since June, when the
rate was about 50 to the dollar,
that

Finland

under¬
to

be

has
„

revalued

her

.

Finnish financial circles regard

b

company
proposes to
sell $6,000,000 4%
debentures and 80,000 shares at 5% cumu¬

the

a

Nov.

on

Inc.,

registration statement for $10,000,000 con¬
vertible 4%
sinking fund debentures duf

In

0.376 %

approximately

per annum.

currency.

preferred

1;

annum.

Low,

Finland Devalues

tion.

1965.

■■

High, 99.908, equivalent rate of
discount
approximately
0.364%

registration state¬
undetermined
number
of

Corp., Kidder, Peabody & Co..
Lehman Brothers, Mellon Securities Corp.,
Union Securities Corp., White, Weld & Co.,
W. C. Langley & Co., Paine, Webber, Jack¬
son
& Curtis, Central Republic Co., Inc.,
Bosworth,
Chanute,
Loughridge & Co.,
George H. Clifford, H. Gardiner Symonds
and
Robert
K.
Hanger.
The new issue

Aug. 1,

•

of accepted competitive

Range

First Boston

UNITED

*

Average price, 99.905+; equiva¬
lent rate of discount approximate¬
ly 0.375 % per annum.
,•

a

price will be filed by amendment.
No
public offering of the co.mmon stock pur¬
chased by the underwriters will be made
on the basis of
the prospectus.
Underwriters — The
underwriters
are

be

f

for, $2,076,526,000.

X

TRANSMISSION

Offering—The company, subject to the
approval of its common stockholders at a
meeting to be held next month, will offer

will

are

-

■

Total X accepted,
$1,.$16,426,000
(includes $54,811,000 entered on a5

shares, par $5.
Details—See issue of Oct. 25.

rata.

*

issue

fixed price basis at 99.905 and ac*

common

pro

the

at the
Nov. 5.

on

this

of

Total applied

Inc.

Co..

that

opened

were

follows;

as

the

Cunningham.

2,

Federal Reserve Rank

102

.•

K.

John

and

99

5

Nov. 8, and to mature
7, 1946, which were offered

Nov.

on

to the publicxis given

price
'

Underwriters—S.

Pittsburgh,
Louis, Mo.

from

ranges

'

Nov.

on

dated

Feb.

54 9;

Bennett & Co.

all of Federal's stock.

for

Secretary of the Treasury

tenders of $1,300,000,000 or there-.
;
abouts of 91-day Treasury bills to
be

7.

registered will be issued to stockholders or
Federal Steel Products Corp. in exchang.

writer.

&

Gil-

is

Broadway*

.

Details—See
Issue
of
Aug.
2.
Offering—The offering price to the pub¬
lic is 60 Vz
cents
Canadian
or
55
cent®

The

of the outstanding stock of Seatex Oil Co.
Inc.
In
addition, 150,000 of the shares

preferred

offered

165

y;

LAKE MINES, LTD. on
registration statement for
capital stock,
par
$1

a

shares

announced

shares registered

Offering—Of the

tain stockholders.

perferred

underwriter

;

stocl

V'fc

'

for 990,793
(par $1).

shares of preferred

Offering—New

io

RED

filed

220,000

T

statement

a

registration statement for 60,000 shares
par)
55-cent cumulative
convertible
preferred stock.
' X
.
'

public

Na

RED BANK OIL CO. OR May 31 filed

registration

lative

IRONRITE IRONER CO.

'

16.

the

Texas,

'

National

v*'»

\

Stone & Webster,

ers

:

Offering—Holders of common stock of
record Nov. 1 will be given the right to
subscribe to

CO.

J '

.

stockholders.

the new common to

Details—See issue of Oct. 25.

a

per

At¬

Co.,

agent.

OIL FIELD

HOUSTON

X'*

BARIUM STEEL CORP. on Sept. 28 filed

for

Finance

is

Underwriters—None named.

■i

of

public

"

and National has agreed to take
shares
not
taken
by its remaining

($8

f

issue

fiscal

is

4.

the

to
vX*v

28 filed a registration statement for 95,544
shares of capital stock, par. $5.
Details—See issue of Oct. 4.

shall

by the board-

.

XXX,Xv XX X

Oct.

MANUFACTURING

shares' for
ARDEN

of

price

Underwriters—General

lanta,

per

-

Underwriters—Andre

Co.,

■

shares of class

B

issue

Offering—The
$7.50 per share.

on

Foun¬

,

(46.56%)

ers

July

on

shares

10

class

Sept.

on

XX

A

Issue

CORP.

Gilcrease

to

the

issued

sold

share.

York, N. Y.

June

held. Electric Bond & Share Co. has agreed
to take the number of shares proportionate

The

Finance, Ltd., the

will make

tc

the basis

on

Pennsylvania

for each
&

1,818,700

National

common.

stockholders

new

Light
tional

Toronto Mines

remaining

by

are

.

Offering—National Power & Light Co. as
of all of the outstanding common
stock of Pennsylvania Power & Light Co

different

itself

New

sub¬

holder

Canadian money,
Shares not so
will
be
offered
generally to the public.
Should
the
option
not
be
exercised
by

The

price

shares

sold

being

x

:•

•

143,659

the

shares
are'

Thomas

Underwriters—The
crease

New

o'

for various obligations of the registrant.
Underwriters
—
Principal underwrites

par $1.

issue

Offering—Toronto
has entered into a

the

$12.50 per

COX

shares

1,818,700

purchase such stock at $ 10

tered.
EUREKA
a

13

for

JJnited States funds.'

registered

stock,

common

Corp.
principal

named

PENNSYLVANIA POWER &

dltional

ig; named underwriter.

Aug.

on

Of

being

are

and

'X;,'X

(Canadian).-

share.

Underwriters

and E.

number

4.

of

CO.

statement

30,191

outstanding

VIRGINIA

issue of Oct. 4.
Offering—The bonds will be

nett & Co., Inc., parent of Red Bank,
receive 209,970 shares in return for a

stock

common

and

Details—See

issuable

of

113,468

and

Offering—The

CO.

of

exercise

by

Stock.

par

upon

OIL

Details—See Issue of Aug.

Sept. 26 registered $3,500,000 15-year
4*4 ft sinking fund debentures due Oct. 1,
1960 and 400,220 shares ($1 par) common

preferred

60,000

headed

Inc.

stock.

A

registrant

;

VULCANIZED

class

registered

dation.

Co

stock; 100,000 shares of
$1, issuable upon conversion
of preferred and 60,000 shares of common

sold

be

directors

and 50,000 shares class B common

common

Details—See

Business—Air transportation of persons,

Alaska

of

stock

vXX'^-'.

:7.

of

proposes

to

Address—Anchorage,

i

*'

public

corporation.

Underwriters—To

filed

the company.
The
(number of shares will be .filed by amend¬
to

shares

efforts

of directors.

common

60,000

registra¬
shares of

a

TRAD¬

' '*

be sold at such price as fixed

MONDAY, NOV. 19

com¬

common

cials

capital stock, par $1.
and 250,000 shares of Class B stock, par
10 cents.
X
XX XXX;'---"
In
amendment filed Nov.
1, company

$52

originally filed at San Francisco.

ALASKA

a

nolders

Registration Statement No. 2-5993. Form
8-1.
(10-29-45).
Registration statement

14

the

the

to

HOMES, INC.
registration statement

shares

•

>

contemplated

not

underwritten.

;

registration

a

ANCHORAGE

$16.50 per share under an
Stock Purchase Plan and a

issue

The

convertible

cumulative

GRAY

applied
towards the payment for additional air¬
craft now contracted for with the Douglas
Aircraft Co., Inc., aggregating in cost ap¬
proximately $5,499,000.
For this purpose
it is contemplated that the proceeds will
be supplemented by operating income and
by loans secured by mortgages on the air¬

the

filed

price

employees of the

Management Stock Purchase Plan.
Proceeds—The proceeds will be

that

PALESTINE

3

Underwriters—The

shares,

public at the offering price
In addition, a total of 76,310
being offered to officers and

craft acquired.
Underwriters—It

Oct.

on

$5.50 per share;

of

number

XX

X 4-.X -X

transportation business, -v.
certain

CORP.

Offering—The

at

employees

named.

ative preferred non-voting shares.
Details—See issue of Oct. 11.
X

Indetermi-

an

purchased
"VX

cumul¬

Hollywood Boulevard,. Los

to

the

Aviation

statement for 400,000 shares of 4 %

be supplied by amendment
are
being offered to stockholders through
subscription warrants, the price and ratio
to be supplied by amendment.
The shares
not
purchased through subscription war¬
rants will be offered for sale
to the of¬
ficers
and
directors
of
the
corporation
the

to

AMPAL-AMERICAN

Address—6331

St

entire

&

of

the amount of

Corp.

registration

%i/z shares

per

Underwriters—None

ING

nate

the

common

Corp., as stockholder,
and 59,784 shares will be offered to other
stockholders.
Any shares not subscribed

WESTERN AIR LINES, INC., has filed a

r

X

the basis

on

by other stockholders will be
by Aviation Corp. *
f"X
tr

by. Union

selected

be

tot

.

share.
Rights expire
Of the total, 85,304 shares will be

offered

Details—See issue of Nov. 1.
Underwriters—Names

$14.50

at

Oct. 30.

directors.

amendment,

16

additional share for each

one

held

;

issue of Aug. 24.

"
offering

named.

covering

Details—See

on"Aug. 24 filed a registration
for
145,088 shares of common

Details—See

' CAMDEN FORGE CO. on Oct. 29

the

Sept. 28 filed

on

statement

shares

.

MANUFACTUR¬

new

f

CO.

common,

mentioned.

CENTRAL

stock, par $1.

SATURDAY, NOV. 17

,

con¬

CORP.

statement

XX/'

share

each

for

common

Underwriters—None

the un¬

Underwriters—Burr <& Co. heads

derwriting group.

X.
the

.

preference for common on the

basis of 4Va
share

the

AMERICAN

public

the

price to
filed by amendment.

Offering—The

of

convertible

and

outstanding

and

25.

an exchange offer
convertible
preference
stock

be offered

will

being sold by certain stockholders.
Details—See issue of Nov. 1.

{

Oct.

on

Offering—Under

Oct.
25 filed a registration statement for 60,000
shares
cumulative
convertible preferred,
$20 par, and
260,000 shares of common,
par $1.
The dividend rate on the pre¬
ferred will be filed by amendment.
The
common registered includes 100,000 shares
reserved for issuance upon conversion of
the preferred.
The 160,000 shares of com¬
is

CO.

CAR

a

Details—See issue of Oct,

GENERAL INSTRUMENT CORP. on

stock

BANTAM

registration statement for 83,547
shares of prior preferred stock, par $10,
and 375,971 shares of common, par $1.

.

.

of

XXx :.'XXX

CROSS

chase

AMERICAN

18 filed

TUESDAY, NOV. 13

mon

X'X

5*/a%

headed

V

.......

y

Ullrich,

sale

Warner

OSAGE

registration

a

behalf

V-X'X^-XX.-XX

Arthur

is

group

Ripley & Co.,

VALLEY

filed

shares

on

will
L.

will manage the

stock,. par

by Paine,
Webber, Jackson & Curtis; Stone & Web¬
ster and Blodget, Inc., and Mitcnum, Tuily
CO.

21.

pany proposes to market Its own securities.

.

Underwriters—Group

&

per share.
Underwriters—William

Louis,

Underwriters—None

1.

Offering—The prices to the public of
both the bonds and preferred stock will be

amendment..

of June

$35

tion

Nov.

issue

.

preferred stock, no par.

filed by

Details—See

Company
shares ol

principal underwriter.

NATIONAL

$25

shares of common stock,
r
Details—See Issue of April 26.
Offering—Price to the public Is 30 cento
per share.
'
,.

DATES OF OFFERING

TELEPHONE

ASSOCIATED

of

COVENTRY GOLD MINES, LTD. on AprP
a registration statement for
333,333

We

INDIANA

$500 with the un¬
commission

21 filed

'

/

is
a

Issue.

f

.

agree¬

-,

stock

receiving

15 filed

..

oamed

per

8.

Offering—Price to the public is given at

Registration Statement No. 2-5995. Form

MONDAY, NOV. 12

\

five shares of

XX'XX

Underwriters—J.

the

sold to under¬

be

share..

per

amendment.

present

share,

utilize-31,001 Yz

make this offer.

to

common

.

Offering—The public offering price for
unit consisting of $500 of debentures and

derwriter

corporate

general

.-X

..C '

Underwriters—Floyd

per

are

Underwriters—No

ment

a

directors.

of

board

(no par).
Details—See issue of Sept.

CONTAINER ENGINEERING CO. on June
a registration statement for
25,00c
shares common stock (par $10).

able

share.
The sub¬
exclusive of a certain
group
who have already subscribed for
the stock.
Any stock not subscribed pur¬
suant to rights may be disposed of by the
$6

stock

Underwriters—Barrett & Co., Providence,
R. I., underwriters.

Frank

and

purposes,

number of shares

Corporation at
scription rights

offered

be

$750,000 in payment of current notes pay¬

will receive rights to subscribe for
of
Crosley Motors for the
same
as those held in Crosley

closed,

will

registration statement
20-year debentures due

and 10,000 shares class A

1,' 1965,

Sept.

;
in

RACING ASSOCIATION
a

preferred of Health Cigar Co., Inc.;
$150,000 for additional equipment,

Crosley

the

of

stock

■

-

•

28 filed
$1,000,000 6%

Aug.

for

of
the balance due for the purchase of 79,348
shares of common stock and .328 shares of

well

stock

Offering—Shareholders

'

.

BURRILLVILI.E
on

at $1,946,685, about $175,063 plus interest
will. be paid to Max Simpson, Irvin Stud-*

(no par).
Details—See issue of Oct. 25.

t

"

Offering—The

MOTORS,

shares of common

Company
cigarettes,
cigars

consisting of one share of preferred
and one share of common at $15 per unit.
Proceeds—Of the net proceeds estimated

INC., on Oct. 22
registration statement for 235,099

CROSLEY

;x"
and
subsidiaries
and smoking to¬
manufactured by

sell

."

'

New

X/'V"-*' 'V"

units

are

and
"

Inc.,

Co.,

&■

—

and

others.

unit.

per

underwriters

The

—

Gearhart
& Hano.

Kobbe,

is $5

common

Underwriters

Fifth

*

Business

Details—See issue of Oct. 25.
Offering—^he offering price per unit
consisting of one share of preferred and
I

of

;■v..*:;.;,;x/xx
Avenue,

,

Y.

manufacture

f

shares

150,000

$1.
• *
'x;
Address—595

registration

a

shares of

100,000

vertible

INC.,

CO.,

6%

and

par

MANUFACTURING

AETKRAFT

TOBACCO

registration statement for 150,cumulative preferred stock,

shares

000

CORP.

a

$60 per

will

$58.30

have

would

at

by

Underwriters—The

right to subscribe to ne*
of Vi share of common

held

filed

Harriman

basis

share

Offering—The price to the public will ba

on

shares

Sept. 20.
will
offer

Offering—Company

for

CO.

common

X XX'X'X ;

par value. : X
Details—See issue of

'

has filed

31.085

without

common

BENSON HOTEL CORP.

'

amend¬

by

ment.

XX

V

and

Underwriters—To

un¬

v"i

vXX X

reduce

procurement
of
instrument flight
facilities which will increase revenue flight

at the discretion of the

less accelerated

SEC.

which

costs;

twenty

than

less

Nov. 19 at 3 p.m.:(EST).
There are no
underwriters, but corporation reserves the
right to sell any unsubscribed shares at a
price which will net the corporation at
least $3 per share.

primary purpose

financing is to provide
for
standardization
of

equipment

grouped according to dates
registration statements will

ago,

normal

in

filed

were

which

en

whose

issues

The

the
proposed
adequate
funds

MEW FILINGS

the situation pessimistically, Hel¬
sinki dispatches say. They believe,
further

devaluations

cannot

be

Government

is

avoided. vX,x--':

X

Finnish

The

seeking
to
adjust foreign ex¬
change rates to increased produc¬
tion costs—including forced wage
and

salary increases—so that ex¬

ports can be maintained and even
This

increased.

country

under

tions

deliver

to

the exchange

to Russia.

:

is

vital

Finland's
war

for

the

obliga*-

reparations
J

THE COMMERCIAL &

2248

nal

Certain
Private Imports and Exports

Fiance Authorizes
:?■"

«

PAUL SIMON

By JEAN

1945,

Britain *
countries may

Great
and

premiums may be payed
to exporters to compensate them
for the loss they
would sustain

ling Area has
author¬

been

selling abroad instead
market.

by

ized.

is

It

that French

than
those prevail¬
ing on exter¬
higher

Clearing House.

tion

is

It

clear

quite

economic policy, not

nal markets.

f

\

that such an
without sim¬

ilarity to the one conceived
Dr. Schacht in Germany at

did

not follow

disbursements and receipts

The

much

France

,

relating to imports and exports
are handled through a Compensa¬

internal prices
are

of on

the domestic

fact

a

the

by
the

time, can only be justified in as
much as it is a measure of ex¬

methods

adopted in

nature and to

in

temporary

purely

pediency,

Belgium
and
the
Nether¬

The

cludes!'

last only until cir¬

permit the restoration

cumstances

where of a stable basis for French cur¬
drastic defla¬ rency.
'
tionary measures took place.
Trading by private exporters of
V Consequently
as
the French France is free, but they must ob¬
franc stayed pegged at $0.02, the
tain
export licenses which
are
French Minister of National Econ¬
granted in proportion to their pre¬
omy
provided
that
payments war export volume.
amounting to the difference be¬
The resulting foreign exchange
tween external
prices plus cus¬
toms
duties and French prices must of course be credited to the
lands,

.

■ *

than $20,000 or
rency

meaning of the agreements men-?
tioned above. This first step in the

right direction can only be wel¬
comed by the United States, Can¬

ada, Great Britain and in generalby all the United Nations who
have repeatedly stated that they
aim toward the abolishment of all

New

all kinds.

exported

be

to

Air

from

Animals for breeding.
be said that it is es¬
sential at the present time that
France should rebuild her indus¬
tries and resume her role in in¬
the
French
authorities have
to ternational trade. The tragic cir¬
which vprevaiL haVe
demonstrate that the merchandise cumstances
compelled France to abandon her
to be imported is of prime neces¬
sity to the French economy.
It traditional doctrines of liberalism
in economic policy.
is only then that they will be able
However, a most determined ef¬
to be supplied with the necessary
foreign exchange
and shipping fort is made in the direction of
(5)

It

'

-

,

?

v.

Appliances "

Du Mont Laboratories

(4) Seeds.

purchased through
Supply Councils of
Washington, Ottawa, London, cer¬
tain categories of commodities are
released to private trade,
im¬
porters to obtain a license from

v

England Public Service

France.

French

"

Bendix Home

(3) Certain raw materials and
articles specifically intended to
enter into the production of com¬

continue to be
the

barriers.

trade

Sterling.

$22,000 or £5,000

modities

That is the

freedom of exchange.

in Canadian cur¬

(2) Spare parts of

required will

*

complete shipment less than five
and valued at less

metric- tons

Canada, Great Britain and the
Sterling Area countries.
Although it has to be pointed
out that the bulk of foreign com¬
modities
and
merchandise
or

equipment etc.

weighing for

chinery and trucks)
a

States,

United

the

*;■;>v;' '•'

v(l) Manufactured products (ex¬
clusive of industrial equipment,
machine tools,' agricultural
ma¬

provisions of the three identical
agreements entered between
and

in order to bring the mer¬
into France. ~
-•
released merchandise in¬

chandise

Republic of Sept. 8, 1945.
v
Here in broad outline are the

France

imposed on importers.

be

Also

Ster¬

the

of

space

public of July 18, 1945.".'."r*
Thereafter similar
agreements
were
entered into with Canada
and the United States; the relative
notices
being published in the
Journal
Officiel. of the French
,

with a French Presidential Order of April 20,
the resumption of private trade with the United States, Canada,
accordance

In

Re¬

French

the

of

Officiel

Thursday,. November 8, 1945

FINANCIAL CHRONICLE

j

v:';

Cargo * Transport
Majestic Radio
U.S. Finishing
KaUe*-Frazer.

may

M. S. WlEN&CO.
ESTABLISHED 1919

v.,

Members N; Y. Security Dealers Ass'n

<

HA. 2-8780

Exchange PI., N. Y. S

40

i

v

Teletm N.

■

We suggest:

.

X. t-1397

.

Jean Paul Simon

,

.,.v

Bank

However,

France.

of

ex-

portdYs who before the war were
selling abroad on 30, 60, 90, 120
?
" r"* 7
;
'
Page
Bank and Insurance Stocks
.2220 days credit terms, may continue
Broker-Dealer Personnel Items
2244 to do so as long as the sales are
Business ' Man's Bookshelf
2232 made under "an irrevocable letter
Calendar of New Security Flotations.2247;;
r
lw.;v,./
-Canadian Securities
2214 of credit."

index

| Oceanic

Trading Markets in

Trading Co., Inc.

Amalgamated Sugar
Baltimore Porcelain Steel

Ironrite Ironer

Bendix

& Com.

Int'l Resist. 6% Pfd.

Lear Inc.

Helicopter

Bendix Home

interested in high

to dealers

trusts.

investment

leverage

Majestic Radio & Television

Appliances

Clyde Porcelain Steel
Du Mont Laboratories

Utah Idaho Sugar

Globe Aircraft

Wilcox &

RALPH F. CARR & CO.

Telecoin Corporation

9,-MASS.

: T5PSTON

'Teletype

Boston

Gay

New York

Hubbard 6442

Hanover 2-7913

BS 328

,

Dealer

Broker

-

Investment RecomLiterature..
2210

.2216

.......

Report..............2218
on Governments
2233
Securities.I..........2206

Reporter

Utility

..Public

currencies

2235
2212

Notes

,NSTA Notes v."
Our Reporter's
-Our

be effected in foreign
in French francs,
but in the latter case the currency
is not the "internal French franc"
Sales may

and

mendatlons

♦Municipal News and
«Mutual Funds

but

Markets—Walter Whyte
.2233
,

,

,

INCORPORATED

franc."

Government has al¬
ready signed the first agreement
relating to resumption under li¬
cense of free commercial relations

Securities

Tomorrow's

"external free; French

Kobbe, Gearhart & Company
Members

The French

.2216
"Real Estate Securities...
......2208
fSecurities Salesman's Corner.......2229
Railroad

,

New

York

NASSAU

45

Security

5

YORK

NEW

Teletype

Bell

telephone

Enterprise 6015

REctob 2-3600

.

,

,

Association

Dealers

STREET,

philadelphia

telephone

.

Insurance and Bank Stocks
Industrial Issues
Investment Trust Issues

l

l

new

york

1-576

.

;

V

,

Public Utility Stocks and Bonds
TEXTILE SECURITIES
Securities with

a

New Eng. Markel

with

channels

private

through

specialize in all

We

or

*

Illinois

Securities

2210 and 2211;
2213.

pages
page

Section on Great Britain. A notice to French
Wisconsin on importers and exporters was pub'
v > fished to that effect in the Jour-

Frederick C. Adams & Co.
Specialists in

.

A Market Place for

Unlisted Securities

Hew England

24 FEDERAL STREET. BOSTON 10

Low Priced Unlisted Securities

Established In, 1922

Copper Canyon Mining
Cuba Co.

Foreign Securities

Fred T. Ley

;

Electric Steam

& Co.
Airplane

Luscombe

Dri-Steam Products

markets

Tel. HANcock 871S

Kellett Aircraft

TYB0R STORES

Elk Horn Coal

1-971

Southwest Gas Producing

Greater N. Y. Industries

Standard Aircraft Prod.

Happiness Candy

Upressit Metal Cap

Jardine Mining

Teletype

Shawnee Pottery

Globe Oil & Gas
NY

Vacuum Concrete

parl marks & no. inc.
FOREIGN SECURITIES

Retail food
cha lid Ise
cream

a

nd general nter-

stores,

theatre, ice¬

plant, milk

pasteuriz¬

ing plant, bakeries; also t'ots
general wholesale and job¬

a

^

;

V

J

Pressurelube

Sterilizing

Tele.v BOston 23

bing business*. A

SPECIALISTS

*

Telephone

50 Broad Street

New York 4, N.Y#

•

HAnover

AFFILIATE: CARL MARKS & CO. Inc.

2-OOSO

CHICAGO

,

50

',i

/

Established 1924

„

sales and earnings,
in each year
incorporation.
Management prominent.
-A low-priced speculattoh.
Expanding

.■■

^

HANOVER 2-4341

BROAD ST., N. Y. 4

dividend payments

since

TELETYPE—N. Y. 1-2860

NEW

;^

^

Morris Stein & Co.

ENGLAND

***

JE4
T/wv T T W 17 e:
ilk;V;jJL M JL; MJd 9

New

RecentFrlce.

$

***

England Local Securities

JPrke
H

Specializing in Unlisted Securities

WALTER J. CONNOLLY &
INCORPORATED 1923 'A'

24 FEDERAL STREET,
Telephone Hubbard 3790

'

CO.

BANK

—

INSURANCE

''V^

BOSTON 10, MASS.

J

PUBLIC UTILITY

INDUSTRIAL

—

—

148 State

REAL ESTATE

Tel.

Bell System Teletype BS-128

Auto

SHOE RATIONING OFF

Parts

:

U. S.

Smith

'

1 *

1

■

BOUGHT

:

& 'Wesson

EARNINGS PER COMMON SHARE

1944—_$4.01
2.78

1943
,.-f v

■'..

•

W. T. BONN & CO.
;

New

-V

*1 '

-

•

Amos Treat & Co.
40 Wall

St., New York 5, N. Y.
BO 9-4613

Bell Teletype NY 1-886




SOLD

-v''t \

—

4 vfc

'!y.-

'1

' "I'..'-

I

t

wanted

'*'

QUOTED

Blocks
of Securities

RANdolph 3736

'• v'.\

York 5

Telephone COrtlandt 7-0744

•

Mass.

Teletype BS 259

208 So. La Salle St., Chicago 4 *! ;

4.41

1941

;•

Circular Upon Request

Broadwav

'

REHER, MITCHELL i REITZEL, INC.

$2.66

1942

^

120

v,» ; i

Common Stock;

;

Radiator, Pfd.

"'S'v.;

Griess-Pfleger Tanning Co.

Sunshine Consolidated

Pressurelube, Inc.

BONDS, PREFERRED AND COMMON STOCKS
"

St., Boston 9,

CAP. 0425' 4C :

V-.Televhcn. HAuover 2-7914

S

LUMBER A TIMBER

Columbus

call for recent
analysis T$. •
or

BELL

WESTERN UNION
TELEPRINTER

"TJ

-

\

.

SYSTEM TELETYPE
a

CG-989

f:.-.'

Hill, Thompson & Co., lac.
Markets

"wux-

:r

120
t

i

and Situations

for Dealers

Broadway, New

nr..

o

nnin

T.I a

York 5
WY