Full text of Commercial and Financial Chronicle : October 12, 1944, Vol. 160, No. 4324, Section 1

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

it §44
Final

Edition

ommetciaL an

S. Tat.

Reg. U.

4324

Number

160

New

Office

Oct.

•

national Busi-

Corp.
the

Only Provide Five Million Post-War Jobs, But Will Be A
Powerful Factor In National Defense And In Expanding

Com¬

mittee;

the
importance of
foreign trade
connection

the

re¬

building

ing

estab¬

the

■

observed .Victory Fleet Day by pay¬
well-deserved tribute to the American-flag steamship compariies who
are
operating

happy to join in the warm welcome the Chairman has ex¬
the 1,500 and more delegates present, representing the for¬
eign trade in-

tended to

lishment of

enduring
peace.

Tliomas

He also

J. Watson

pointed to the
of replacing

Merchant Ma¬

veloping peace we will not
in. terms of revenge."

tries

the

raw

the

Mr. Watson, "I
•

am sure

Regular

few, days,

Merchant Ma¬

Confer¬

rine

ence, we

shall

Features

methods by
our

merchant fleet
can

This

adapted

Land

Emory S.

its

peace¬

time role.

significant period in

On Victory
Fleet Day the War Shipping Ad¬
ministration was happy to call to

our

the

discuss

continued
that with

Ohio Securities Section on page

Index

maritime history.

1608.

by Admiral
Land before the National Foreign
address

*An

may

Council, Hotel Pennsylva¬

Trade

nia, New York City, Oct. 9, 1944.
(Continued on page 1588)

interstate
Aircraft & Eng.

Co.

wall trying to secure
cut off a

to investigate the status of
manufacturers rams his, head into
information. Strict and necessary censorship

who

investor

wants

has

complete

<S>-i

t——
'
rise has been discussed repeatedly.

pic¬

ture

Will.it be so?

of these

c o m

pa n i e s

since 1.942,

for

true

the

War

and

rose

of aircraft

investment.

product, is as com¬

consumer

the

known

industry

present some of
peculiarities of

supplement

the

regular reference data.

tion

Government

officials,
whom

to
are

for

indebted

their

annual

participation
the

pro¬

ceedings,

and

for their help¬

ful

coopera¬

through¬

tion

the

also

Address

before

3tst

Trade Convention, New

(Continued

attend-

whose

countries,

other

National Foreign

York Oct. 9, 1944

on page

1595)

State and

Thomas A. Boal

(Continued on page 1598)

this

Eugene P. Thomas

rep¬

resentatives of

only about 50% of
empty" of a fully

build
"weight

panies
the

would

welcome

major aircraft com¬

All but two

aircraft

parallel

lesser

the

period. The
p o s s i bility
shares

tions and then to

high levels in
a
very
short

that

designed to set
on
the right

plicated as aircraft, it is felt wi&e
to outline first some basic defini¬

automobile
shares

going

Because no other semi-consumer

end

the

delega¬

out the years.

Following
World

this industry.
the

article

reader

benefit when you think

story

;

■

track, to produce for you a story
easier to understand and of some

reports do not
reflect

Ttiis

the

financial

mere

—

include in this

large

of the major "airframe"

one

any

war.

which

(Continued on page 1584)

page

trade

cautious

The

for¬

at the Annual

the same

1586; Wisconsin on page 1584.
:

prospects
our

after the

same

the large countries.
"If we can do that,"

Suffens, Boai & Associates, Los Angeles

eign

access to
materials of the world as

opportunity,

consider

for

that the small coun¬

will have exactly

By THOMAS A. BOAL

the

think

believe," Mr. Watson
stated, "that world peace on a per¬
manent basis must come through
world trade on a basis fair to all
countries,

welcome

Today

still

nation.

rine.

in popularity
the "word "revenge" by the word
"justice," since, he said, "in de¬
need

the

terests

A Look At Aircraft Investments

war-time

our.

World Economy.

A few days ago the nation

the world and
in

And Restoring Closer Trade Relation¬

Our Foreign Trade

em¬

phasized

with

For An Orderly

He Points Out That Our Maritime Industries Will Not

New i

York

Its Eminence As A
Admiral Land Urges: American Ship¬

To Make Greater Use Of Our Merchant Marine^

pers

conven¬

tion's

tion Era Must Be Based On

The Elements Necessary To Restore

and

Chairman

After Stating That Our

Leadership In The Reconstruc¬
Unity Of Foreign Trade
Policy Mr. Thomas Outlines Tasks Ahead To Insure \
International Peace And Cooperation And Expansion Of
Our Foreign vTrade Essential To The Solution Of Our
Post-War Employment Problem. These Include (1) Re- S
newal Of Reciprocal Trade Pacts, (2) Removal Of Un¬
certainties In Webb-Pomerene Act, (3) Resumption Of ;
Normal Trade Channels Through Discontinuance Of;
Lend-Lease And Government Restrictions, (4) Recon- '
struction Of Government's Foreign Trade Promotional :
Activities, And (5) Creation Of A United Nations' Unity

Maritime Nation,

Machines

ness

Shipping Administrator

Contending That The United States Now Possesses All

Inter¬

the

By EUGENE P. THOMAS*
National Foreign Trade Council

Maririe Insurance Market.

9, Thos. J. Watson,

President-of

Copy

ships Throughout The World. He Defends The Ship
Subsidy Policy And Other Provisions Of The Merchant
Marine Act Of 1936, And Favors A Strong American

I In addressing the 31st National
Foreign Trade Convention in New
on

Cents

Chairman and President,

Chairman, U. S. Maritime Commission,
War

Unity In Foreign Tiade Policy

By ADMIRAL EMORY S. LAND*

To Peace: Watson

Price

York, N. Y., Thursday, October 12, 1944

Our Maritime Future

York

\al and.

Volume

In 2 Sections-Section

YEARS
O

ESTABLISHED

Municipal

Buy War Bonds

Bond

for

Brokerage

Bonds

Service

VICTORY
for Banks, Brokers

Hirsch, Lilienthal & Co.

PROSPECTUS

Members New York Stock Exchange
and

other

London

R. H. Johnson & Co.

Exchanges

Geneva

Established

Rep.

HAnover 2-0G00

Chicago

Teletype NY 1-210

Cleveland

64 Wall Street,

Buffalo
Williamsport

Albany

Troy

Pittsburgh

New York 5

■

York Curb Exchange

NEW YORK 3

LOS ANGELES

Trading

Markets,

always

tTeL DIgby 4r7800

International
Detrola

INDUSTRIALS

Kohbe, Gearhar t & Co.
INCORPORATED

MEMBERS NEW YORK STOCK EXCHANGE

Members N.

TELEPHONE-RECTOR 2-6300

Y. Security Dealers Ass'n

New York 5

45 Nassau Street
Tel.

CITY OF NEW YORK

Public

Manufacturing Co.

REctor 2-3600

Teletype N. Y. 1-576

Philadelphia Telephone:

Enterprise 6015

Utility

Preferreds
AND

Corp.

Commons

U. S. Truck Lines

14 WallSt., New York 5.N.Y.

THE

Tele. NY 1-733

Philip Carey

ELECTRONICS
RAILS

Bull, holden & C°

NATIONAL BANK

New York 4

634 SO. SPRING ST.

WALL STREET

THE CHASE

Actual

BROKERS

Members New

30 Broad St.
48

Department

York Stock Exchange

INCORFORATtD

Syracuse
Dallas

BOND

Members New

HUGH W. LONG and COMPANY

PHILADELPHIA

BOSTON

from

Bond

Hardy& Co.

DEALERS

AUTHORIZED

1927

and Dealers

FROM

OBTAINED

SECURITIES '■

INVESTMENT

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

MAY

HART SMITH & CO.
Reynolds & Co.
Members New York Stock

120

Exchange

IRA HAUPT & CO.

Members
New

York

52 WILLIAM

Broadway, New York 5, N. Y.

Security

Dealers

ST., N. Y. 5

Bell Teletype NY

Assn.

IIAnover 2-0980

Telephone: REctor 2-7400
Bell

Teletype NY

1-635

New

Yojk

Montreal

Members

of Principal Exchangee

111 Broadway,

1-395

Toronto

REctor 2-3100

N. Y. 6

Teletype NY 1-1920

Thursday, October 12, 1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

1578

,jfrt

Trading Markets in: ZZZZ

NORANDA MINES

Rohr Aircraft

National Airlines

Mid-Continent Airlines

BROWN CO. 5s. '59,

Dealers Ass'n

York Security

Telephone BArclay 7-0100

Elk Horn Coal,

Com. & Pfd.

Chairman, Investment

Preferred

Common

Sweets Steel

REctor

New

NY 1-1557

Orleans, La.-Birmingham, Ala.

Direct wires to

2-7815

Exchange

St., New York 4, N. Y.

Hftnover 2-0700

our

branch offices

WOrth 2-4230

Y. 1-1227

Teletype N.

Bell

Holding Sound Common Stocks.
the subject

Savoy Plaza

reported
Exchange

Y. Curb

New

Telephone

The

at¬

any

Common

Indiana Limestone

satisfac¬

tory

Byrndun Corp.

result so
all

I shall put

Charles

Collins

Preferred

3-1223

1-1843

I believe this was set

future.

including Wilkes-Barre^ Stroudsburg and Siinbury in Pennsylva¬

Central States Elec. (Va.)
& Sx/:j %- Debentures

*5%

con¬

ducts

business

general

securities.

vestment

Preferreds

in" in¬

American-LaFrance Com.

Mtge. Guar. Com. & Pfd.

Preferreds

Steel

a very

opportunity, to address,a body of men of the caliber of the

The

J..

;

bankers,

^reertecmACompaYi^

times
too

men

Exchange

York Curb

WALL

York Curb Exchange

NEW

ST.

YORK

HAnover 2-9470

Teletype NY 1-1140

7^ s

The Cross

Company

Laclede Christy

Clay Products

Great American Industries
1

Indiana Limestone 6s,
Memoranda

1952

request

F. H. Koller & Co., inc.
Ill

Broadway, New York 6, N;Y.

there

exists

serious

need for

urgent

thinking,

straight

think¬

ing, and plain speaking./

jily

NY 1-1026

BArclay 7-0570

FA It It. &
Members

New
New

CO.
■

York Stock Exchange

••

York Coffee & Sugar Exchange

120 WALL

ST., NEW YORK

throughout the country,

Today

of, char¬

acter and

SEGAR SECURITIES

sta¬

Quotations Upon Request

that word sta^-

Mr; Collins be¬
of Customers'

bilty, the key¬

fore the Association

note

remarks
W.

M. Jeffers

occasion.

this

Oct. 10, 1944.

York City,

post-war planning is havihg a run
jike a popular song. The singers
bility!
And I are sometimes on key, many times
Want to make
off.
Stability must be made the

He made it clear that
a forecast as to what
actually would do in this VI or

Brokers, in the Governors' Room
of the N. Y. Stock' Exchange, New

conserva¬

damcnta

not

*An address by

little

tive—but fun-

Assn.

St., N. Y. 5
Hanover 2-4850
Bell Teletypes—NY 1>1126 & 1127

37 Wall

New

employed.
was

a#—

highly. American

class, have al¬ desire to preach, no'will to ponti¬
ways been, by ficate^ but rather to present some
and
large, statements of fact, some of opin¬
thinking men, ion,' and to say some things which
realists,
con¬ L, think need be said and which
servatives, — deserve emphasis and reiteration.
First and foremost, I feel that
perhaps at

Washington by Mr. S. Morris

this

Destroy Union

American Bankers Association is a privilege I value
■■

Foreign and Domestic Commerce.
endeavored to take
some early post-war year; say, one
or
two years after the war had
ended, and then to see what would
be our national income if our then
available labor force was fully

England Public Service

Dealt in

Frank C.Masterson & Co.

Holds That :If Constitution
Applied Federal Paternalism Would Disappear.

Were

Mr. Livingston

Shovel

Department Of ; Justice.

Livingston for the U.S. Bureau of

Chemical

Preferred

Y. Security Dealers

York, Boston and Philadel¬

The Recent Anti-Trust Suits Instituted By

capable study developed

Preferred

Members N.

WHitehall 4-8120

phia, and other offices in 11 cities,

Action Committee Which Threatens To

off

Preferred#

Wickwire Spencer

New

Broadway

Bell System Teletype NY 1-1919

Developments Which Promote Instability,To Wit:

if any Labor ; And

perhaps know,

you

compared
with other peoples, he will say
that it is optimism. At the present
time we are enjoying a wave of
optimism
as
to
the post-war

Engineering

Steam

Maintaining principal offices in

Supreme Court Overturning Opinions
Considered The Settled Law Of The
Land; The Federal Government Largess Which Puts A
Premium On Indolence; The Work Of Hie Political

jof the American people

New York 5

Central States Electric

Marion

with

bias

intelligent foreigner is asked what
is the distinguishing characteristic

H. 6. BRUNS & CO.

Members New York Curb Exchange

And Rules Long

servative,
As

Common

Recent

saying

market is con-

;

Indiana Gas &

Emphasizing That Stability Must Be Made The Founda¬
tion Of Any Post - War Plan, Mr. Jeffers Points To

respect to the

1936

Aetna Standard

Members New York Stock Exchange

Decisions Of The

ent

Struthers Wells

Teletype NY

Edward A. Pureed & Co.

Members New

cards face

that my pres¬

St. Louis-Sari Francisco

Bell

WILLIAM M. JEFFJERS*

Telephone: WHitehall

;

President, Union Pacific Railroad Company

1952

20 Pine Street,

agers;

Of Post-War America

today does not
tempt

Common &

being made of the appoint¬
George Brest and E. Mar¬

ment of

shall Kinsey as district sales man¬

such

6s,

also

Nu-Enamel

fi¬

Philadelphia
Announcement is

—""

al¬

time

permit

Income 6s,

interested, the next morning,

NY 1-154&

for many years..

the

with

Nat; Commercial Title &

be¬

lotted

COrtlandt 7-4070

business

The Industrial Life

bearish.

ing

New York 5

System Teletype

being bull¬

une,"

York Curb Exchange

31 Nassau Street

associated

been

nancial

Aeronca

ish; the "Trib¬

Vanderhoef & Robinson
Members

L. H. Gilmer

Jester

Mr.

"Times"

the

an¬

Common

of the stock market, I was
to
find
that^

3/6s, 1956

Co.-

nia, J. Arthur Warner & Co.

the pleasure of addressing a New York group

The last time I had

6*y4s and 7s

the appointment of David

Walnut' Street.

1528

Detroit

Can Create A Background For

Favorable Conditions,

Power Securities

Counsel, Inc., Detroit

Admitting A "Hiatus'! Immediately Following The War,
He Contends That There Are Forces Which, Under

International

Traded

Arthur- Warner

Natural Gas

Company

Jr., as manager of their
Philadelphia
office,
located
at

Have A Temporary

Stock Exchange
Broadway, N. Y. 5

Southwest

Warner PBsila, Office
-

Period When Caution And The Main¬
tenance Of Substantial Buying Reserves Rather Than A
Bullish Attitude Should Be In Order.
However, Even

III)
120

New

Exchange

ILJester To ISatiage r -

nounce

Assuming A Post-War National Income^ Of $110 Billions,
Mr. Collins States That The Stock Market Still Should

Members Baltimore

Members New York Stock

BROADWAY, NEW YORK
Tel.

has

Quoted

Jester,

President, Investment Letters, Inc.,

(AH Issues)

Pitts. Traction B'ds

——

Steiner, Rouse & Co.
25 Broad

York Curb Exchange

New

120

By CHARLES J. COLLINS*

& Vending

Peerless Weighing

Stock

York

New

Post-War Period

Kearney & Trecker

Bell

Members

Stock Market In The Immediate

Axton-Fisher Tob., "B"

request

Sold

TELETYPE NY 1-423

BELL

ftjC PONNELL & Co.

NEW YORK 6, N. Y.
!
Teletype NY 1-672

BROADWAY

115

HA 2-2772

Exchange PI., N.Y. 5

—

Bought—Sold—Quoted

Exchange and Other Principal Exchanges

Members N. Y. Stock

Established 1920
New

Members

Com.

Bought

Pref.

Conv.

& P'fd

GOODBODY & Co.

KING & KING

Analysis

CORPORATION

ABITIB1 P. i P. 5s '53 B'ds & C.D.s, Com:

Co.Com.

Amer. Furniture

CARRIER

BULOLO GOLD DREDGING

&«.

P. R.

have

TEL. HANOVER 2-9612

by Mr. Jeffers at
Meeting
of the American Bankers Associa¬
*An

address

the Second

Teletype N. Y. 1-2123

War .Service

tion, Chicago, III., Sept. 26, 1944,

(Continued

(Continued on page 1592)

on page

1590)

Post War Prospects
Henry Holt & Co.
5%

R. W. PRESSPRICH &

Standard

Members New York

Stoker Co., Inc.

201

Stock Exchange,;'1

William Street, New

BOSTON:

CO.

York

Devonshire

St.

Memorandum

request

BONDS

INDUSTRIAL

INVESTMENT

STOCKS

A, B, C, & D Preferreds

Ne
,

Members N.

Y. Security Dealers

Ass'n

.Members Cleveland
Union Commerce

PINE

ST.,

N. Y. 5

WHitehall 4-4M4

Teieytpa NY 2-609

^Knowledge

Experience

Facilities

HA 2-2400
Teletype NY 1 -376-377

.for Investors

Exchange

BIdg., Cleveland

Trinity Place, N. Y. 6

•'

Stock

Telephone MAin 8500

BOUGHT, SOLD & QUOTED

INCORPORATED

Trosier, Curri e & Sum m ers

Corp.

Common Stock

Diamond Alkali Co.

Wm. J. Merickao-Co.

G.A.Saxion&Co.,Inc.

& Gas

Boston & Maine Railroad

MUNICIPAL,

RAILROAD, PUBLIC UTILITY

Federal Water

1969

$1.60 Preferred

Common
GOVERNMENT,

due

Buffalo, Niagara & Eastern

Private

Wires

Detroit

Buffalo

Pittsburgh

Cleveland

St. Louis

Direct

Broadway. 'New York 6
WHitehall 4-3640

Private Wire to Cleveland

MEMBERS NEW YORK STOCK

One

Wall

Street,

EXCHANGE

New York

5, N. Y.

COMMERCIAL and

The

CHRONICLE

FINANCIAL

Munising Paper

are

interested in offerings

High Grade

William B. Dana Company

Public Utility

25 Spruce

Philip Carey Mfg.

Street, New York 8
'

Sp.

'■

Ralston Steel Car

Trico Products

every

Thursday

nowhere

STRAUSS BROS.

Members New York Stock Exchange

(general news and advertising

DIgby 4-8640

Teletype CG 12.9

TITLE COMPANY

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

Naess

Reentered as second-class

Securities

Department

Specializes in

Subscriptions In United States and
$26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain, Mexico and
Cuba, $29.50 per year;
Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.

for quotes

Which Are
Unable To Offset War By Civilian Production, But Predicts That Stock
Market Will Not Advance Or Decline Seriously From Present level.
Considers That War With Japan Will Continue Two Years, Thus Per¬
mitting Gradual Reconversion And Making Possible Substantial Improve¬
ment In Earnings And Dividends. Holds Longer Term Market Trend Will

Possessions,

CERTIFICATES
Call

matter Feb¬

3, 1879.

TITLE COMPANY

Upward.

;

Newburger, Loeb & Co
New

NOTE—On account of the

Exchange '

Stock

York

WHitehall 4-6330

N.Y. 5

Bell Teletype

foreign subscriptions and

fluctuations

funds.'

other

factors

having a bear¬
ing
on
the

•

trend

the

market in the

Informed Public

Key To Success
Of World Agreements: Burgess

analysis

last

related to

are

and

depend

upon

ending

the

Members New York Security Dealers Assn.

Liberty Aircraft
^Mid-Continent

length of the war with Japan after
Germany's defeat will bring a new
set of circumstances that will have

^National Airlines

appraising the
trend of the market. Throughout

^Northrop Aircraft

to be considered in

of economic de¬

these two phases

dominated

both

velopments,

Rohr Aircraft
Bought
■^Circular

corporate taxes will continue
*An address made by

Association

of Custo¬
Governors'

mers'

Room of the New York Stock Ex¬

This occasion gives me an
and

its

the Bretton Woods Conference

implications.

Brokers

the

New

Ill

committee

The

of the American

Bankers Association, a

mittee

banking

have
studying

*An address made by

groups

been

Bretton

the

Woods propo¬
sals

earlier
and

W. R. Burgess

their
forms

especially

since

Foreign

Council, New York, N. Y.,

Trade
on

Mr. Bur¬

before the National

gess

Oct. 11,

President

Mr. Burgess is

1944.
of

American

Association and

Bankers

Vice-Chairman of

York
page 1604)
'

they National City Bank of New

definite

(Continued on

shape in late July.

Safeguard

By HENRY NORTH

The

spearheading by the Securities and

movement to protect the

the wiles of securities swindlers

which

the

task

properly be¬

longed.
Here
1.

are some

of those reasons:

of conditions in

recurrence

the securities field during

the last,

post-war reconstruction period is
undesirable.
2.

The

•

conferees

are

special

pleaders.
.3.

The task of

and

the- United

Gisholt Machine Co.

Bought—Sold

issue

Di¬

the

British

sent from Washington

Foreign Serv¬
ice

have

been

made with the
by

Government

Haytian Corp.
Punta Alegre

officials

to London
to bar American goods from In¬

Africa,

dia,

Council,

and to control

etc.,

travelers

and

W ashin g-

commercial

ton, D. C. an¬
nounced.

ments, Mr. La Varre

Merchants

censorship. In making these state¬

that

plan exists
whereby
the
a

want

sented
I

ministration is

and

have

create

oration,

which shall be
a

United

States

now

William

Varre

Congress

think

news

into

two

being pre¬

tomorrow

probably we

—

DUNNE & CO.

shall

them. There
have been three agreements made
of which
the American people
have no knowledge.
I am quite
details

some

Members New York Security Dealers Assn

N. Y.

Tel. WHitehall 3-0272

panama coca-cola
Dividends declared 1944 to date
Dividends 1943

1942

—

& Trust Co.

$4.50
3.65

Third quarter analysis

available

Approximate selling price
Circular

Public National Bank

$2.75

C.E.

HoixRsseSTrsster

usually

Established 1914

request

„

Trinity Place, New York 6, N.

Telephone: BOwIing Green 9-7400

Unterberg & Co.

Members New York Security Dealers Assn

61 Broadway,

New York 6, N. Y.

Telephone BOwling Green 9-3565

Teletype: NY 1-375

Teletype NY 1-1666

Broad St., New York 4,

(Continued on page 1599)

agency

>
\

Distilling

Tybor Stores

remarked:
go

statements which are

ad¬

present

Dealers Ass'n.

170 Broadway
COrtlandt 7-6190
Bell System Teletype NY 1-84

States.
He
"agreements"

the

ric

York Security

of the United

merce

also mentioned three

£tt 1926

Members New

monopoly "di¬

which

rector

Est. 1926

all the foreign com¬

over

but

merce,
now.

'1!

nmioG&lo:
iJIOCi

(Continued on page 1605)

shall

rective"

ment of Com¬

——

States Depart¬

•

post-war conditions in the se¬
curities business last tim*\ and

public education

knowledge he

attempted comparison of

The

1-2480

Angeles

Federal Screw Works

Plan To Create A Govern¬

Managers Club Of Present Administration's

The task which a man per¬

does well.

Los

Miller Mfg. Co.
Segal Lock & Hdw. Pfd.

these reasons
let us settle on the proposition
that education is fine and desir¬
forms with

Official Of Tie Department Of Commerce,
Council, Tells Export

Before examining

able,

Teletype,

Wire

Exchange Commission

public's billions by education against
is deserving of the closest scrutiny.
On Oct. 3, 1944, when the conference to implement that purpose
hiet at Philadelphia, in the headquarters of the Commission, many
reasons were assigned
by the conferees dealing with the program:
(a) for its need, and (b) for the<*
—— ~
—*■
designation of the body or bodies properly falls into other spheres
of

Haloid Corp.
Laclede-Christy Clay Pr.

William La Varre, Former

eorp

A Dangerous

System

Control Over Foreign Trade

took

Assn.

(Continued on page 1603)

ical and social

•,

State Bankers

■■

Dealers

REctor 2-5288

the

Association—all pf
to
the bank¬ these are devoting a substantial
amount of time and energy to the
ers for an expression of question and are discussing it with
opinion.
At Government officials and others
least
three who may have special informalooked

have

Security

Broadway,New York 6, N.Y.

Private

joint com¬
<•.
National/ Foreign ment Foreign Trade Monopoly.
a highly tech¬
Trade Council and the Bankers
nical one, and
Speaking before a Luncheon session of. the Export Managers
business
men Association for foreign trade, and
Club in New York City on September 12, Mr. William La Varre, a
of the New York
with reason a committee
former official
The subject is

York

Bell

change, Oct. 10, 1944.

And Director Of The American Foreign Service

larger*^

Request

Bartgis Bros.

opportunity to say a few words in re¬

to inquiries with respect to

polit¬

the

before

Reveals Plan Of Federal

Stopped.
sponse

Sold

Members

Mr. Naess

will bring eco¬

nomic,

—-

J.F.Reilly&Co.

war

event which

Ragnar Naess

War, the prospects of a large post¬
war deferred demand for civilian

sults of Bretton

Relations Was Due To
Secrecy Surrounding Preliminary And Final Decisions Reached By Na¬
tion's Representatives.
Says Any Plans Adopted In Field Of Interna¬
tional Monetary Stability Must Be Consistent With Firm Preserva¬
tion Of American Dollar And AJso Envisage A Program For Great Britain
And Pound Sterling. Warns Against Repeating Policy Of Last War
When "We Flooded World With Our Own Money" And Then Precipitately

Teletype NY 1-1203

changes that are bound to intro¬
duce new factors
in the
stock
market. * The character and the

Pointing Out That Three

satisfactory Record Of United States In Foreign

Broadway

New York 6, N. Y.

(2) a large post-war

Europe is the
immediate

Banking Groups Have Been Studying Re¬
Woods Conference, Noted Banker Observes That Un¬

Information

goods and anticipated reductions

these.

The

BURGESS*

By W. RANDOLPH

All

taxes.

sponsored by Hugh W. Long and
Company,

Inc.,

New York

City, in which dealers

Wall

throughout the country
vited

the

name

Street,

were

in¬

indus¬

seven

tries which would register the
greatest capital/gains during the
period from Jan. 2, to Dec. 31,
1044, has entered the final
stretch.
Leading contestants out
of approximately 400 participating
were, at October 1, in the fol¬
lowing order: E. R. Miller of
Grubbs, Scott & Co., Pittsburgh;
H.

Alexander

Arthur

Warner & Co., Boston; J. F. Bickof Boettcher & Co.,

rnore

French

Chicago;

Wyatt,

Near. &

Waggoner, Atlanta; J. D. Hines of

Electronic Laboratories

Slock Offered AI $5
,

were

bringing.

Then

building
standing 000 shares represent financing on
plot, slightly "L"- behalf of the company and pro¬
shaped, fronts approximately 150 ceeds will be used for additions

apartment

the

came

war

and priori¬

ties. Small apartments were

The

thereon.

bring¬
ing
very
High
rents.
It then feet on Park Avenue and 160 feet
East
89th
S. L. Johnson of Pacific Co. of seemed as if an alteration might on
Street,
running
through to a 77-foot frontage oh
California, Pasadena; F. J. Towns- pay, Consent for a loan to finance
such an alteration would
need East 88th Street, and comprising
end of Pacific Co., Santa Monica;
permission from the bondholders. a total ground - area of 28,000
Elizabeth Royston of Cherrington On the other
The building con¬
hand, necessary ma¬ square feet.
& Co., Pittsburgh; G. M. Lindsay terials
for
such
an
alteration tains 664 rooms, divided into 89
of Elworthy & Co., San Jose; R. ; would be unobtainable because of apartments. The building consists
I priorities.
This eliminated an al- of three units laid out in . typical
L. Cooke, Jr., of Ballou,. Adams &
teration. Then, after all the small suites of 6 .rooms and 3 baths.
Co., Boston; and Hunter Brecken- apartments in New York were 8 rooms and 3 baths, and 9 rooms
Schwabacher

jridge

Co.,

New

York;

McCourtney-Brecken-

ridge & Co.; St. Louis

tied

were

for tenth place.

The

contest

based

upon

the

gain in asset value of the twenty
Industrial

Stocks,

Series

Inc.,

dends

paid.

Series

road,

The

York

of< divi¬

seven

gain;

leading

were

Rail¬

Aviation,

24.67%; Automobile, 18.70%; Rail¬
road
ness

Equipment,

17.85%;

Busi¬

Equipment, 16.22%; Building

Supplies, 15.23%; and Machinery,
14.44%.
time

the

Average
road

Over the
Dow

rose

house

able with their real value.

fices

Again- the
management
was
stumped. OPA ceilings had frozen
the

rents

low

levels

and

that

find

is the situation in which

October

25.17%

.New

exclusive

leased, prospective tenants began
accepting larger apartments and
finally these types of apartments
were
bringing rents commensur¬

same

Jones

period of
Industrial

7.98% and the Rail¬

Average 21.96%.

the property today.

100% rented

and

with

and

the

1/6

89th

floor;

15th

doctors' of¬

street

Post-war, however, the property
a good chance. Lbrge
apartments
seem
again in de¬
mand and the apartments in this

one

house
To

are

visualize

desirable
how

much

nature.
below

rooms

and

westerly

floor on

the 88th Street unit are

apartment

also
East

apartments

The

Street.

the

rooms

the

1/3, 1/4

apartments,

room

but at inadequate rentals.

should have

duplexed

the first floor of

6 pent¬

are.

all

apartments,

servants'

end

There

baths.

each floor,

baths.

simplexed,

The

whole

structure surrounds an open gar¬
den
was

the

The

rear.

property

completed in 1925. (Note the

the; intrinsic value of the property

exceptionally

the bonds are

property which faces three streets

selling, the follow¬

ing comparison is interesting:
The

first

mortgage

bond issue

and

has

large

total

size

ground

28,000 square feet.)

this

area

"of

FJater In New Connection
,

capital.
The re¬
mainder is stock purchased from
ttr-

two

(Special

working

large stockholders.

The company,

whose plant is in
Indianapolis, is believed to be thE
a r g e s t
manufacturer in the
country of heavy-duty vibrators
and ■ power
supplies.
.Products

manufactured
tion

with

are

used in connec¬

electronic

equipment,
including radio transmitters and
receiving sets, radar, business ma¬
chines, dental and medical equip¬
ment. neon signs, sound amplifiers
and fluorescent and other lighting
■

products

in¬

clude "black light" for use in

air¬

Other

equipment.

planes and boats, and. military and
commercial radio communications

particularly

equipment,

the

"walkie-talkie" and sMp-to-shore

telephobe

used
control equipment.
types,

train-

present time, production
is devoted entirely to war equip¬
ment but it is very similar to the
products

manufactured

in peace¬

time and which the company ex¬

pects

period.
merely

make

activities,

the

its war

post-war

business. is

extension of its normal
the

company

expects

Flater has become associated with
the East Wisconsin Trustee Com¬

of Manitowac.

pany

has

Mr.

Flater

recently been with the State

Banking Commission in Madison,
Prior, thereto he was with Thom¬
&

son

McKinnbn

ahd

Shields

Company.

Form
(Special

Gagel Securities
to The Financial Chronicle)

DAYTON, OHTO—Gagel Secur¬
ities

Company

has

with

offices in

the

been

ment business.

formed

Mutual Home

Building, to engage in

Partners

invest¬

are

John

F. Gagel,

Jane E. Gagel, Fred R.
Gagel, and Grace Gagel.
that
any

At the

to: The Financial Chronicle)

MANITOWAC, WIS.—Harry V.

conversion 'will

gr,eat difficulty

not

involve

or expense.

peacetime, its products are
through independent iobbers
and wholesalers, no one of which
sold

took
put.

than

of total out¬

Net sales last year were $7,Net Profits last year, be¬

268 488.
fore

000
was

renegotiation and after $100,for

$181,610.

war

contingencies,

1585

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4324

160

Volume

Contrasts International Financial

NOTE—From timetotime, in this space,,
there will appear an article wh ich we hope

Problems Of Both World Wars
Wright Predicts Same Problems As Before But

Dr.

This is number

SCHENLEY DISTILLERS CORP., NEW YORK

Far

Larger And More Complicated.
Sees Lack Of Skilled
Ferscnnel To Handle International Financial Problems
of, the

Secretary

Executive

Understanding

College

at Brooklyn

Wright, Professor of Economics

Ivan

Dr,
and

Committee on Re-i

Economist's

conversio
discussed
the r home and it was

If you

that "the

ing

liirst and fore¬
most

Dr. Ivan Wright

end

the

this war, as at

problem
of

the end of the first

trading in foreign securi¬
been largely confined
bonds and moneys. In the fu¬

and

the respective coun¬
have confidence, and
with which the rest of the world
of

peoples
tries

can

carry

can

international trans¬

The first essential of re¬

actions.

construction

country

every

and dependable
form of government
Unless the
a

sound political

protect

established

governments

life, liberty and property within
their respective countries, set up

Professor

Wright

remarked that "when we

had won

Continuing,

first world war we

the

Navy as rap¬

ized the Army and

idly

demobil¬

possible, cut war expenses
on the road to pacif¬

and started

war, if I
correctly, we
plan to, maintain an army of probabl3r two million men and, of
course,a
proportionally large
navy.
We are talking about uni¬
versal military training.
All of
icism.

Now, after this

the news

interpret

these

seem

ture

change our

will have to

foreign stock in¬

attitude toward
vestments

relations,

national

are

invest¬

private

our

end

the

United Kingdom,

not likely to be

were

lost

have
25%.

world
about

the

troef.Jlvff
t,
tional

pendable figures for either of
percentages.
At any rate,
the increase of debts and money
have far outrun any needs of the

are

in-

and

monej,
money,

problems

internabe re¬

which

portion of their expenditures. If
one

safe

adequate than at the
world

first

this

war.

condition

The
to

reason

found

for

spent

esti¬ was one of the large departments.
mated to be 33% of her national Today you have a hard time to
wealth.
At present I estimate it find the men who are specialists
to be more than 80%.
At the end in these foreign financial prob¬

war

the debt of Britain was

the

tional

bur

first

debt

world
was

war

our

The

perhaps

pay

ent
:

World War

gold

increased

supply

50%

has

war

end

the

first world

international trade,

of dollars

position was stronger than now.
the pound when unpegged

has

enough to sup¬
currency

the and debt over that of 1920, but
payments due from foreign coun¬ the
present increases in these
tries in their currencies deposited
items seem all out of proportion
in the banks of.the respective
to any needs of production and
countries and then reinvested the
commerce
for
generations
to
interest and installments in the
come.
capital investment of these coun¬
"We will either have a vast intries-until there was some real
advantage in bringing the money flation or a series of inflations in

tional

1939,"

over

income

one

our na¬

141.9

was

billion

dollars; and in 1942, the national
income

only

was

billion

115.5

dollars; and in 1939, it was only
70.8 billions.

the inquiring

spirits tax

mind that the distilled

was

than in 1942,

in 1939. And

23.9%
the

should also be pointed out to

50% higher in 1943

and 167% higher than
one

should know that

almost'one-fourth of all

expenditures for al¬
1943, went to

consumer

coholic beverages in

Government

Federal

the

in the

form of taxes. This does not include

England and Canada are our larg¬
est customers and we are their

April 1,1944, which will help make
the 1S44 per capita consumer ex¬

first

the

was

world

international

and

other

raw

tor

not

was

the

trade

Russia

alcoholic

appear

had another

still, higher,
expenditures for

beverages according to

find, actually, that there

decline of 16.8

was a

% in the consumption

of distilled spirits last year

as com¬

pared with the previous year, and
there will

important fac¬

probably be

decline this year,

either
Now that

markets,

increase in the

best
production meth¬
the

No,

further

in view of the

Federal excise tax

(

rate.
we are

not "taking issue" with

the

Department of Commerce fig¬
ures. We are just trying to make

that Russia will

markets in the post-war era.

Department of Commerce data,

war

industry, it is my opinion
be a large force
to reckon with in the international

ods

know,

On the basis of

markets
material mar¬

adopted

mass

you

penditures

grain

finance.

has

American

world

outlays in the

50% increase in excise taxes on

kets. Between the two world Wais

Russia

consumer

form of various State taxes, etc.

important factor 'in

the

those

Rus¬

figures

sia has about all the raw materials

stand—if you

She will have the
production capacity to
process these materials and de¬
liver finished goods after the war.

bit easier to under¬
are interested, of

course.

Europe needs.

MARK MERIT

technical

standard.
on

of SciIENLEY DISTILLERS CORP.

She is wasting no time

FREE —Send a postcard or letter to
Schenley Distillers Corp., 350 Fifth Ave.,
N. Y. 1, N. Y. and you wdt receive
a
booklet containing reprints of earlier
articles on various subjects in this series.

international contraptions with

pape^c,J currencies

other

been

and

experiments which have
after they have used their dollar
proved iitipractical.
Russia
balances in the post-war years
and
allowed to take its course
may be one of our most important
will
we
buy enough
of South
dropped to $3:19. What would the customers, and also one of our
American goods
to keep them
pound drop to at the end of this most powerful competitors.
supplied with dollar exchange so
war if unpegged
and allowed to
"Most South American countries
they can keep up their buying of
find its own level? You are hear¬
will come out of this war in the
our
goods?
I doubt it.
I think
ing that we will have to aid Eng¬
strongest
financial
position
in every effort possible
land with a large loan.
^hould be
You are
their history. Most of these coun¬
made
to educate the ' American
also being told that the pound and
tries
have
reduced their debts,
people on the products of South
the dollar should be stabilized or
accumulated dollar exchange bal¬
America which we can use.
We
pegged as the "Key Currencies"
ances
and placed their domestic must, buy from +hem if we expect
and the other countries of the
world could tie their currencies budgets in strong position.
But to sell to them."
Then

40% more by
world's mone¬

increase

80%

should know that in 1943

tion management would all gain,

since foreign investment and exchange mana'ged

I, and the whole stock

port a vast increase in

the

Britain's

alcoholic

Then,

Referring to the post-war situ¬
Moreover, Russia is the one coun¬
of foreign countries, Pro¬
try that seems determined to re¬
fessor Wright stated:
turn
to
the
international gold
!"At

world's

for

"17% increase over 1942, and an

of in¬

ations

dollars.

probably

many

of these departments
years."

way

statement, for instance,

beverages in 1943 represented

;■

would be about 70%

"The

the

for

national wealth; now I

of our
national wealth in terms of pres¬

debt

is, of course,
has been little business to
reason

expenditures

the sizable

say

end of the

reads

that

ou? ownVest 'IhTerests
best lnterests

think

time

people normally buy and
represent a considerable

which

...

•

great curtailment

quantity and in the availa¬
bility of many goods and services

?tates andt *he S,yling ^Trun"
der a umted exchange, stabiliza-

out

billions which the liquidation of the foreign de¬
paid, and they will go partments of banks and businesses
abroad after this war as never during the past 15 years. I recall
when the foreign exchange de¬
before, in my. opinion.
y ■
"At the end of the first world partment of a metropolitan bank
and

20's

Maybe we
of gold in terms
have learned that we cannot be¬
been marked up
come large investors in the cred¬
devaluation.
The
its of foreign countries and de¬
tary gold is large
mand payment in gold?
It would

pointed

bankers

obligations,

if we accepted

fine spirit

in the

1 largest
customers. Unless we co^larger and, in my opinion,
= ,
...
customers
complicated than at the ]
in re
end,of World War I. At the same,tor our own we will all be m re"
construction
losers.

the

abroad

went

Americans

such
Finland, Sweden, Norway, Den¬
mark, Holland, and others.
To

be far sounder

ought to be
picture clearer.

known as the "sterling area." It
seems to me that the United

people or production. At the end that the skilled personnel to han¬
Russia
of World War I we had little for¬ dle
these
problems is far less

payment, is

This

land.

money t

exchange

Wright

trade

eign gold that could be withdrawn
at will.
Now we have billions,

am¬

that the American

effect

the

There has been

rest

"Before

will be slow

power

the

there

ucts, the. means of
rather
inconsistent.

doubt

far

these

increased, but

foreign countries money and
tariffs against their prod¬

constructed at the end of this war

10% of
would
This, of course, does not apply to think at the end of this war and
those sound little countries which the
reconstruction
our
Federal

raise

sound

"foreign

vestme

lems.

loan

purchasing

Professor
that

na¬

their

trade..

and

also.

determined

production has increased as
much as 25%.
I do not have de¬

pay,

meet

restoration of international

of the Empire coun¬
tries will come to the aid of Eng¬

all

The bond in¬

the policy "

time

repeating

did

finance

re¬

ternational
cooperation and we
But the stock inves¬
can
only wish that it was more
Very few stocks
widespread. More than 20 coun¬
over the longer period held an in¬
tries not within the Empire, be¬
crease
in value equal to the de¬
fore the war pegged their curren¬
cline, in the value of the money,
cies to sterling.. The reasons were
This
study shows 'that without
clearly advantages in trade and
a
single
exception
the coun¬
international
finance.
Most
of
try in which to invest your money

war.

feel, today, like
perhaps,

or,

added to make the

devaluation,

tors

doubtful whether peace¬

But it is

policies at

and pay the interest and
principal, when due, the American
investor
will regain confidence.

lost

vestor

1943.

populations of the
probably increased

these ventures.
If
foreign countries will
establish
sound currencies, keep their debts
within the limits that they can
in

"Since"the first world war,

millions of investors

increased

the first world

financing world
reconstruction at the end of the
last war was a losing game, and
venture

and

something near the amount of the

countries

the face of it these figures are cor¬

ishly loaned them capital for re¬
construction, and to a large extent
we
were
the losers.
The loans
did stimulate foreign trade and
exports

credit. outstanding

of their currencies.

are

that

rect, hut several things

Since that time
undoubtedly been
substantial.
It
seems
probable
that
the
Federal debts
of the
United States will for the dura¬
tion of the war increase to. about in either stocks or bonds is the1these countries will undoubtedly
1,000% of the debt at the end of country or countries which are return to reconstruct this system

erously aided foreign countries in
their efforts to stabilize their cur¬
rencies on a sound basis, and lav¬

our

have

will have to shrink the money

and

the increase has

maintained sound money and gen¬

our

countries to adjust to either the pound or the dollar
to
the present inflated The importance of this problem
and credit expansion, or cannot be overstated if we are tc

money,

available
to 500% as of

figures

end of

the

of World War I we

"At the end

which

have

the last war.

Phone UM 59

different

prices

215.

in most of the

"Debts

for

certainly

and

•

turn
to
convertible
currencies England's financial plight is quite
and this would, as in the past, as bad as pictured.
In the first
"At the end of World War I
place, the peoples of the Empire
our
gold reserve was about 3 Vi bring on a deflation of present countries still maintain their con¬
billion dollars; our currency about prices and costs, and rising inter¬
fidence in thrift and savings and
est rates."; .:
5 V2; bank deposits about 31, and
a sense of obligation which I be¬
our national debt 26.
At the end j
Commenting further on -"infla¬
lieve is not found in enough places
and
international
invest¬
of this war our gold holdings will tion
in the world.
The Empire coun¬
Professor
Wright
said
be about 20 billions of dollars; our ments,"
tries are loyal and some of them
currency more than 22; our bank "complete records of investments
relatively rich. Canada has given
deposits perhaps $150 billion, and in both stocks and bonds in all
generously to England to finance
the
important countries of the
our national debt more than $250
the
war
and
will
undoubtedly
between
1914 - and
1928
billion.
At the end of 1943 the world
share the financial problems of
show conclusively that all inves¬
League of Nations reported cur¬
reconstruction in international fi¬
rencies based upon 1939 as a 100 tors lost money in the countries
nance and trade.
In my opinion,
to be:
Bulgaria, 740; Irak, 716; that went through a revaluation

essential in our inter¬

would have been wise

Home Office Atlanta

•

now

people spent six billion dollars in
1943—for alcoholic beverages. On

the

economic and finan¬
cial
institutions,
and
honestly
meet
their obligations, there is
India, 470; Germany, 351; France,
little
hope of restoring lasting
386; Sweden, 215; Japan, 300, and
economic and financial relations."

dependable

ft*.

have

is the establishment of
ments abroad
workable and dependable demo¬
cratic governments in which the large.
world war,

BONDS, STOCKS; COMMODITIES

our

ties
to

Private Wires

mind

explaining
some of the figures recently released
by the Department of Commerce,
plifying

the money

began by say¬

And yet, we

INVESTMENT SECURITIES

BROKERS OF

same

printed some fifty of these
little pieces touching upon various
subjects.
,

OTHER LEADING EXCHANGES

undermining

factor

opinion. Why do we
now? Well,/ we are

have

UNDERWRITERS AND DISTRIBUTORS OF

and exchange systems
ht of the foreign countries. But for
some reason both our investments

Profes¬

Wri g

sor1

would

stocks

the

still of the

MEMBERS NEW YORK STOCK EXCHANGE AND

economic conditions of these coun¬

of
Security
Analysts on lesS
Oct. 3.

;

bring that

become

never

"take issue" with

another man's

BANKERS

INVESTMENT

beginning, you

early article we

would

controversial

their
bonds,"
added Professor
of, the
experience of Wright. "Then these stocks should
be listed on our own exchanges,
the aftermath
of the last war and the prices in the American
at
a
meeting markets would be a strong indi¬
of
the
New cator of our confidence in the

Also

recall, in

said that

light

tries.

from its very

may

practical to bring

post-war
in¬
"It would be far better if we
ternational ii-i
nancial prob¬ purchased more of the stocks oi
lems
in the foreign corporations and Jess ot

Society

have been reading this cok

umn

it home.

York

fellow Americans.
fifty-six of a series.

will he of interest to our

THE COMMERCIAL & FINANCIAL CHRONICLE

1586

Analyses

Recent

Merchants

A Discussion of

NOT

expected to be very

»"*

New

Oliver Farm

BRAZIL
Federal

merger

Standard Silica Corp.

The

Circular

FAROLL & COMPANY
•

1430

copy

Teletype

CO.

and

bulletin

Doyle, O'Connor & Co.
Incorporated

1122

Central

Phone

5690

firms

investment
;wide

geographic

representing

N<*w

Preferred

Common

bonds
of Eastern Railway Company of

Coal Corp.

Preferred

first

with stock
due 1953 with stock
stock

$20,000,000 and a savings in an¬
nual interest of approximately

Common

makes possible a net reduct ion in principal of nearly
gram

due ,1948

Debenture 7 '/2 ®

$1,800,000.

ADAMS
"

CO.

Stock

Exchange

principal

ZIPPIN & COMPANY

exchanges

So. La

208

Street

York

Salle

Street

CHICAGO 4

Indianapolis

Toronto

RANDOLPH 4696

Brailsford &

St.

South La Salle Street, have an in¬

the firm

upon

request.

Paul and

approval.

and

the

Security TradersAssociation Of New York Give;
Ruling On State Transfer Tax

plan > has*
ICC

The

United

States

District

.Court.

;

>•

Rumors in financial circles that

arid North Western
.Railway Co. might initiate a re¬

theChicago

New York

eral "A" 4s of 1989 remained un¬

taking

the

with

substantiated

directors

action at the last meet¬

State tax

payments.

The Tax arid Legislation Committee is pleased to report that cog¬
nizance has been taken of the importance of maintaining business
'

funding program affecting more
than $55,000,000 of first and gen¬

,The Security Traders Association of New York, Inc., announces'
has been won with regard to the elimination of

That, signal success

'activity in New York State and recognition has'finally been given;
•to, the point this Committee rai'sed®that unless the out-of-town dealer Fox, Chairman, P. F. Fox & Co./
is allowed to transact his business

The possibility remains that
the road may undertake a finaneing.

E. Everett Van Tuyl, Van Tuyl

Abbe; William K. Porter, Walter;
iof-affixing tax stamps, those who F. Saunders, Dominion Securities
Other railroad financing plans,
ing program once the last,of the.
Corp.; Wellington Hunter, Hunter1
i include the New York,
Chicago road's obligations held by the Re¬ [reside in the State are bound to
& Co.
'/
• '' y
:
"
suffer.-'
/'"'v. \ :
;and St. Louis (Nickel Plate), Bal¬ construction Finance Corporation
[ On September 12, 1944,- Attor¬
timore & Ohio, Pennsylvania, and are eliminated.-:
T - • > >
ney General Nathaniel L. Gold¬
i Chicago, Milwaukee, St. Paul arid
stein rendered an official opinion
Pacific.
Pullman Offer
to Hon. Rollin Browne, Commis¬
i
The Nickel Plate has applied to
Pullman's proposal to the court sioner, of Taxation and Finance of
dhe ICC for authority to issue a that a single centralized • pool , be
the State of; New York, in which

Chicago U, Illinois
Phone State 0101

Teletype' CG 361

Other Railroad Financing

La Salle Street

South

231

York,
all

been approved by both the

mortgage

The refunding pro¬

Minnesota.

Old Ben Coal Company
•

Sold —-Quoted

Pacific Railroad to its creditors
for

bonds, together with some

series

Milwaukee,

cago,

$23,400,000 in cash, will be used
by Great Northern to redeem
three series of its bonds and a

National Terminals Corporation
Franklin County

{

has been submitted by the Chi¬

area.

Proceeds from the sale of the
new

MARKETS

ACTIVE TRADING

—

Chicago Recommendations

CG 1200

Dearborn 9600

Bought

by Halsey, Stuart & Co., The Pennsylvania would assume [Shore and South Bend Railroad. teresting circular discussing the
Inc., and the other by Morgan liability for the new, bonds of both (Copies may be had from the firm attractive post-war outlook for
' ■' V,' '' ' V": ■" '■ *"
upon request.
Stanley & Co., bid on the issue. roads. <"'■.
'• A
J ■
'
*,
1
Central Steel & Wire Co.
Copies
Associated with Halsey,' Stuart,"
A plan for reorganization call¬
of this circular are available from
Thomson
&
McKinnon,
231
which won the award, were 110
ing for a $47,000,000 bond issue

S. La Salle Street

Common

request

headed

CHICAGO 3
.

States

Copies available at your request.

135

Co., 208 South La teresting discussion of the Oliver
and
Cleveland
Tractor
Chicago, Burlington & Quincy Railroad $40,000,000 bond refunding Salle Street, have prepared up- Farm
transaction, regarded in financial quarters as the first elearcut case ito-date earning^ and current corn- merger, which is featured in their
of I refunding by a railroad to take advantage of current'low interest merit on Chicago North Shore and Stock Survey. Copies of the Sur¬
Railroad,
copies
of vey will be sent by the firm upon'
rates, culminated last, month in the $100,000,000 Great Northern Rail¬ Milwaukee
request.•,
:
!
way Co. refunding issue, the largest, railroad financing since-1928. jwhich are available on request.
The
Great Northern, offering
redeem its general and refunding ;
Doyle, O'Connor & Co., Inc., 135
was,one of.the largest corporate
Caswell
&
Co., 120 South La
mortgage 41/2S series A by Feb.:l, South La Salle Street, Ijave pre¬
issues to be sold under competi¬
Salle Street, have prepared an in¬
tive bidding. Two syndicates, one 1945, and series B by Jan. 1, 1945. pared a bulletin on Chicago, South

■

South Bend Railroad
;

CHICAGO 4

of railroad refinancing initiated last. April by the

The program,

Chicago, South Shore
AND

will be sent

Cities

Survey.

Tele. CG 156

prepared

have

Stock

our

231 South LaSalle

Chicago Brevities
We

THOMSON & McKINNON

Street, Chicago 3, 111.

120 South La Salle

CHICAGO 4
Andover

Phone

CASWELL

So. La Salle St.

208

request

featured

Members

York

New

THAN THE NET
well over $9.00 per share,

for LESS

New

Stock Exchange
and other Principal Exchanges

Member

;

selling

CURRENT ASSETS, which are now

Stock

Common

stock

common

Old

Cleveland Tractor

building traded and many others, •
substantial and sustaining.

post-war depiand from the

Stock
;

WIRE COMPANY DOES

-metals,'but-acts simply as-jobbers and warehouse
distributors of steel, wire, copper, brass,
aluminum. The.

fabricate

Distilling Corp.

Common

STEEL

CENTRAL

The

Request

Thursday, October 12, 1944

necessity

in this State without the

Holds SEC Will Favor /

We maintain an
test

active trading inter-

in the following

send circulars

upon

STOCKS and will
request—

five-year $10,000,000 promissory
to help finance the redemp¬
of
$15,188,000
principal
amount outstanding of its extend¬

note

Line Co.

American Barge

tion

Black Hills Power & Light Co.
Detroit Harvester

Co.

ed first mortgage

Consol. Publications

Hearst

Poor

Co.

Geo. D.

"A"

The
1

;

Straus Securities
135 South La Salle St.,

Company

Chicago 3, 111.

Tele. CG 650-651

Tel. ANDover 5700

plan is

designed
for

to lay

refunding

involving

operation

$42,000,000

interest

refunding

low

new

its sleeping car

(Continued on page 1587)

} mortgage bonds,

proceeds from

D. F. Rice Go. Opens
Miami Beach Branch

the

company's first 4s of 1950,
of 1974, and the

refunding

! $10,000,000. collateral loan.

Opens

;

BOLT CO.

Common

Stock

First Securities Co.
of Chicago
Member

Salle

St.

CHICAGO
Andover

1520

approval of a

sylvania Railroad are seeking au¬
thority of the ICC for general

during the winter
The firm maintains a year-

in Miami Beach
season.

around office in Miami, Fla.
Di¬
bond
issues
totaling
rect private wire service is avail¬
$34,735,000. The Pittsburgh, Cin¬
able between the New York, Chi¬
cinnati, Chicago & St. Louis pro¬
cago and Florida offices of. the
poses a $23,735,000 issue to redeem
its 4!<2S series C, due Jan. 1, 1945, firm, the main office being located
in the Board of Trade Building,
'and the Cleveland & Pitsburgh

mortgage

Chicago Stock Exchange

South La

105

the

1399

Railroad,

$11,000,000

issue

Chicago.

State

York

New

York

dealer,

!.I note your article in your issue,

5, 1944 in regard to the.
hearings which were",

Oct.

Standard Gas
closed

last.

should

vania Brevities,

(Pennsyl-.
Page-1466). .You.

•state fit appears

.State, taxes

to be more than

Saturday

no tax is payable possible that the Commission maythe securities are deliv¬
idisaprove the allocations presently,
ered'/ to
a
common «•' carrier
(meaning ;a bank especially) contemplated;". In my opinion, as'

vX-l\2,'V; That

of the New York Stock Exchange

majority of Fla., will be opened Oct. 17 this
bondholders,' the ICC and the year instead of January. 1, as.in
the past. Benjamin Block, of Chi¬
Federal Court.
j. Two leased lines of the Penn¬ cago, will make his headquarters
to

out-of-

•/be.collected.

transmis¬
the pur¬
bank or broker
attached,
even

oiitside the State ifor

A debt

BUFFALO

bank sends
securities by, registered mail to

/./New

October 17

adjustment plan affect¬ and other principal exchanges, an¬
ing some $652,000,000 of its debt nounce the opening of new en¬
and
extending the
maturity of larged offices at 14 Wall Street,
$427,000,000 of its obligations was New York City, under the direc¬
announced by the Baltimore & tion of Ralph D. Kaufman.
The
Miami Beach;
Ohio Railroad Company, subject firm's offices in

any

town firm, person or

where

Daniel F. Rice & Co., members

:
;

Enlarged N. Y. Offices

Reorganization Plan

registered
/ mail items are New York State ! Editor,The Commercial and v
/ /■
X tax-free. This upheld the con¬ Financial Chronicle:
"1. -' All '.incoming

tention that when

which would be used to redeem
(

in substance:

he said

v ''

foundation

the

the railroads to ■ take
business, was
viewed with mixed sentiments in
formed

over

3Y2S, due Oct. 1,

T947.
!

Roper Co.

Standard Gas Go.

•

sion either directly to
chaser

with

or
a

draft

payment or acceptance
of the draft is to be obtained
/ before the delivery of the stock
certificates.
A c t u a'l 1 y, this

/ though

mtjans that all securities shipped
by draft into this State are alsc
V

tax-exempt."

connections,
the latter make delivery in
correspondent

have

preferred stockholder, This

ap¬

quite impossible for the fol-,

pears

lowing

obvious reasons.

Firstly,'

if the. junior securities are under-'
valued

they will

the value of the

for the

of the

in*

be reflected

new

Standard Gas

Common which will be

exchanged

preferred stock and, sec¬

ondly, when

firms have
asked the
Committee
whether they could
have securities sent to their New
Many

York

you

refer to the value

Philadelphia Company, this,

also will be reflected in the value
of The
mon,

new

Gas .Com¬

Standard

because it will not be many

payment
eliminate

months after the disposition of the'

affixing of New York State
tax stamps. The Attorney General
ruled/that this constitutes a New

Standard Gas Common will be ex-'

New York for New York

■and

the

same

time

the

present

plans

when

the

new

changed share and share alike for.
State transaction
and is
The~Philadelphia Company Com-;
therefore taxable. However, as-a
mon. As I have given an
analytical
means of guidance to dealers and
their cashiering departments, it is study of this matter for over a

iYork

NEW YORK

Waterloo Cedar Falls

for the

Durez Plasties &

and Northern Railroad

MARKETS

Chemicals Inc.
!

MIDWEST

Inc. 5%

1982

•

Common

and Common

;the opinion of the Committee that
Should this correspondent deliv¬
ery ideal prevail, and the buyer
of the securities to whom deliv¬

is made send a check directly
the correspondent out-of-town

ery

STRAUSS BROS.
Members

New

York

Security Dealers

Ass'n

Board of Trade BIdg., Chicago 4
Telephone: Harrison 2075

Sincere and Company
Members

New

231

Wire

to Neu>

York Office

Stock Exchange

CHICAGO
State

Exchanges

South La Salle Street

Teletype CG 129
Direct

York

and Other Principal

2400

William A* Fuller & Co.
Members of Chicago Stock

209 S. La Salle Street

CG 252

under the
tax-free transaction.

seller, then this'comes

Tel. Dearborn 9200

Exchange;

Chicago 4

Tele. CG 146

category of a
Committee would be more

C The

than

pleased to answer any ques¬

tions.

beyond
trary

Committee

are:

Legis¬
Fred

comprehension

existing

therefore

and

conditions

con¬

and

thought I would call-

it to your attention.
any

you

desire

further voluntary information

this subject, the same will be

gladly furnished;;,

V;.

Members of the Tax and
lation

article appeared to

year, your

New York City,

Oct 6, 1944.

;

1.1. FLATTO.

Volume

Art

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4324

160

Trading markets in

CARTER H.C0RBREY& CO.

Outstanding

War Stock

Post

Wholesale Distributors

Long-Bell Lumber

Middle West

MR.

Common

For

pleased to

are

that

announce

RALPH M.

Bunte Bros. Common

Central EIectric & Tel. Common

BLOOM

Pacific Coast

—

•

1537

associated with

now

Delta Electric

United Stock Yards Preferred

UNDERWRITERS
(Circular sent upon request)

KITCHEN & CO.

MARKET

SECONDARY

135

DISTRIBUTION

South La

Salle

■

C. L. Schmidt & Co.

Street

COMSTOCK & CO.

Established 1922

■

•

■

•

135 La Salle St.

Dearborn 1501

231 S6. La Salle St.

Chicago 3, Illinois

LOS ANGELES 14

CHICAGO 3

CHICAGO 4

650 S. Spring St.
CG 362

Randolph 3002

Telephone State 4950

Tel.

"CHICAGO, ILL. —Dempsey &
Co., 135 South La Salle Street,
members
of the
Chicago Stock

become associated with their firm.

Exchange, announce that Winfield
C. Jackley has become associated

CHICAGO, ILL.

Mr.

Bloom

department

trading
Hutchins

Co.

the

formerly

was

—

Mitchell,

thereto he

Prior

with Langill & Co. and

was

stein & Co.

Kir-

Joins Ames,

•

; ■

Emerich & Co,

with

them

manager

municipal bond department.

their
Mr.

Jackley has recently been with
Barcus, Kindred & Co. and was
previously for many years head
of Jackley & Co., Des Moines, la.

the

bers

Chicago

Murphy
With Paine, Webber

merly with George F. Ryan & Co.
and John J. Seerley & Co.

John Dean

—

Murphy has joined the- staff of
Paine, Webber, Jackson & Curtis;
209 South La Salle Street.

At Thirteenth Animal

tion took place at
The

slate

business

the

Government's

the 13th Annual National Meeting of the Institute.
officers adopted by the organization's Board of
in

directors

■

five

eluded

V i

new

c e

Presidents:

Berry,

Treasurer

The

Koppers

Co.,

Pitts¬

Edwin
E. McConnell,

burgh;

Controller

Norton

the

Worces¬
Mass.;

Co.,
ter,

Packard, Con¬
of

Carrier

Christian

Syracuse;

Corp.,

the

U.
Kimbro, Controller of the Gen¬
eral
Foods
Corp.,
New York;
Homer E. Ludwick,- Controller of
the Firestone Tire & Rubber Co.,
Chicago;

Co.,

vester

;

the

Charles B. Lunsford, Auditor of The Equitably
Life Assurance Societyi of
the
York.

■■

Transition Problems

Edwin W. Burbott

J.; Daniel M.
Sheehan, Controller of the Mon¬

anti-trust

pro¬

"the

total valua¬
of $81,352,222 on its sleep-i

The Securities and Capital

Division

the

New

bonds

filed with the

was

ties

and

This

was

the secoiid largest

regis¬

tration of securities in the history

of the .Commission.
-

Reorganization

Utility
•'

-....

Plans

Departing from its usual prac¬

tice, the SEC issued preliminary
findings and opinions with an or¬
der -approving with modifications
the plan

of the reorganization of
United Co.

Midland

Under the modified

Utilities Co.

plan, the amount of mew stock al¬
located to Midland Utilities, Com¬

pany's outstanding prior lien stock
would be increased, more rapid
settlement - of claims of. • secured

effected.

Utilities

land

small" business commission of

,American

at the Hotel Sheraton',
Lexington Ave. at 37th St., New

month *that

Yofk City.

cinnati.

O. W. Brewer, auditor and ex¬
ecutive

the

accountant

Amer¬

ican

Gas Association, New

was

reelected

York,
L.
W. Jaeger, Controller of ClarkBabbitt Industries, that city, was
Assistant

renamed

Arthur

R.
of

rector

elected

Treasurer,

and

Treasurer.

Tucker, managing di¬
the Institute, was re¬

transition.

ber

Institute

the

He became

many years.

1934,

and

has

for

mem¬

served

the board of. directors since 1942,
at

which time

Vice-President,
of the
1942.,

elected

was

President

Chicago Control for 1941He has been with the A, B,

Dick Co. since 1921,
time he

Prior to that

was

Edward

the

Secretary to the late
Hagar, President of
Simplex Automobile-Wright

Martin

and

Co,,

the

Portland Cement Co,
also

spent five

years

Universal

Mr, Burbott

in the ae~

counting department of the Illi¬
nois Steel Co.
Six

named

new

Sewell

Charles

Economist; Gustav Stolper,
sultant

Bankers

post¬

at. the ABA convention .last
Chicago banks form

$75,000,000 credit pool, similar
$100,000,000 New York City
post-war small business pooling
arrangement, met some opposition
among Chicago bankers.
'
'

to the

Chicago hanks plan to cooper¬
ABA program,
in extending loans to small firms,
ate fully with the

Con¬

but

Economist, followed by a

felt

institutions have

some

discussion under Glenn C. Munn,

Tickets for the dinner are

directors

office:

also-

Fred F.

were

Hoyt,

pooling arrangement, while

paid by Oct. 15; $3 thereafter.
with

Helen Slade,

District Representa¬

47th St., New York

tive, 400 East

Warren

Gartley, H. M. Gartley, Inc.; Ben¬

Graham-Newman.

jamin Graham,

Corp.; Lucien Hooper, W, E, Hut&

Co.; J. H. Lewis, John H.
&

Co.; Joseph McMullen;

Lewis.H.

Rothchild, B. F. Storey,

Lewis

Brundage, Story & Rose,, and, H,
Slade.

too

ambitious

"might

have

established,

however,

■

■■•

1276

The

the

city

idea

has not

ship but

future

any
on

abandoned

municipal

Investment Securities
Public

Railroad

Municipal Issues

We Maintain Active Trading Markets

owner¬

in the Leading Over-Counter Securities

offer will

the valuation of the

E. H. Rollins & Sons

appraised at that

Utility

Industrial

■;

Incorporated

135

South La Salle

CHICAGO

Earl Virden Now With

CG 530

First Securities Co.
CHICAGO, ILL.—Earl Lee Vir¬
den, Sr. has become associated
with First Securities Company of
Chicago,
105
South
La
Salle
Street, members of the Chicago'
Stock Exchange. Mr. Virden wasformerly with Cruttenden & Coi,
Thompson, Davis & Phipps, Inc.,
,v

❖

AND,

Milwaukee Railroad

(Special to The Financial Chronicle)

earnings
available

and

current

request.

Brailsford & Co.

CHICAGO, ILL. — George A.
Jackson, Jr. has become associated
with D. B. Peck & Co., Ill West
Mr. Jackson wak

date

comment

208

Salle

CHICAGO
Tel. State

Street
4
CG 95

9866

previously with Cruttenden & Coj.
and the George S. May Co.
In the

Miller
Co.,

& Co. and James R. Martin &

in Los Angeles.

SERVING INVESTMENT DEALERS

Fred

Sharp Now With
Straus Securities Co.
4

(Special

;

to-The Financial Chronicle)

INDIANAPOLIS, IND. — Fred
Sharp, has rejoined the staff of
Company, Circle
Tower. Mr. Sharp was formerly

Straus Securities

specialize exclusively In under¬

writing and distribution of securi¬
ties, providing investment dealers
attractive

with

clients.

for

issues

Maintaining

their

retail de¬

partment of our own, we compete
in no way with dealers, but serve

them

exclusively.

Correspondence

invited.

in business for himself in Indiana

apolis

and

in the past had been

FLOYD II. CERF CO.
Wholesalers

Exclusively

with
Also

Straus

Securities

joining Straus

Companjf.

Securities is

•;

Street

Chicago 3

Robert L. Pike who was affiliated
with Mr. Sharp.

Chicago Withdraws Offer for

Members

17-year-old equity receiv¬

ership
Lines

was

Federal

the

Chicago

ended

Judge

Sept.

Michael

Surface

;

MIDDLE WESTERN

IS when

Igoe

SECURITIES
231 S. La Salle St.

reorganization

under

the

bankruptcy proceed¬

New

Members

York

Curb, (Associate)

Chicago Stock Exchange
'

Chicago Board of Trade

231 S. La

Salle

Street

CHICAGO V

Randolph 5686

pany.

While-

& GO.

Chicago Board of Trade

placed the company in bankrupt-.
cyr: thusgiving the court more,
power td ■ act and' expediting the
reorganization of the transit com¬

lines

JOHN J. O'BRIEN

Chicago Stock Exchange
New York Curb Exchange (Assoc.)

Surface Lines
The

New York Stock Exchange

■m '

■*

CG 972

WALL STREET, NEW
•

YORK

BOwling Green 9-*l432

CHICAGO

;

Underwriters

and

South La Salle

120

HICKS 6 PRICE

;

Chicago North Shore

George Jackson, Jr. With
D. B. Peck & Co., Chicago

Monroe Street.

Offices

Our

Specialists in

Medway, Wadden & Williams,-

Inc.;

Cities Throughout
the Country

Principal

(Special to The Financial Chronicle)'.

and

Central 7540

;/.
Wires

Direct

Street,

felt.

.-Clark,,

Bruridage, Story & Rose;-Harold

ton

a status whereby they
acquired by the city and
meantime
existing favorable
money
rates
for financing the
purchase, on which the city's price
offer, was based, may no longer
obtain.
\
:

•

are:

Blvd., Chicago 4

could be

Members of the Program. Com¬
mittee.

time may

Exchange
Trade

repercussions later." Some type
of formalized credit group will

„

22, N. Y.

that

undertaking

feel

others

$2.50

Reservations should be made

Teletype

Associa¬

it inadvisable to allocate capital

Mr, Burbott has been active in
affairs

Ragnaiv D.
Counsellor;
English, Labor

will be
Investment

Speakers
Naess,

proposal made by the

Market Economist.

Secretary-Controller

the organization,

the

The topic of the meet¬

ing, at which Harold M. Gartley
will preside, will be problems of

141 W. Jackson

and

past he was with Palmer,

,'v

tion

m.,

ele¬

surface

the

and Midland

the

York Stock

New

Chicago Board of

lines reach

Commission.

Exchange

Securi¬

war,,

some

and

grounds that
elapse before the

the

lines

Quoted

—

DANIEL F. RICE & CO.
Members

A registration statement cover¬

ing $180,000,000 of Commonwealth
Edison first mortgage 3s, series L

meeting on Thursday, Oct. 19, at

The Procter &

both

Sold

—

time.

Kelly

St, Louis, and
Controller of
Gamble Co., Cin¬

chase

properties

santo Chemical Co.,

Siddall,

City Council the with¬
drawal of the city's offer tS pur¬
vated

Bought

so.

ed to the

be based

Mar¬
York

should it elect to do

■

Chapter of the American Statisti¬
cal Association will hold a dinner

CG 878

MUNICIPAL BONDS

of the City of
Chicago to acquire the properties

cates.

possible,
and a prompt merger of Midland
United into its subsidiary, Mid¬

Subject Of Meeting
kets

3
Tele.

the way

ing ear properties and estimated
that about $30,000,000 in cash
would be required with the bal-i
a nee in equipment trust certifi-

■:

creditors would be made

Worthing ton

Pump & Ma¬
chinery Corp.,
Harrison,
N.

with

against

that

Marvin

Los Angeles, and

United States, New

connection

Pullman placed a

Jarchow, Vice-President and Con¬
troller of the International Har¬

Charles

troller

Vice-Presidentp of

regional group of rail¬
roads for that purpose would not
be incompatible with the objects
contemplated."
i " :
!

Burbott,

A. B. Dick Company, Chicago,

The City Council Local Trans¬
Pullman, in filing' its proposed
the sale of its sleeping portation Committee recommend¬

car

;

Heeling In Chicago

stacles

plan for

Assistant Secretary and Controller of the
has been elected President of the Con¬
trollers Institute of America, succeeding John C. Naylor, Vice-Presi¬
dent and Controller of the Pet Milk Company, St. Louis.
The elec¬
W.

tion

Qonlreliers Institute Elects Burboll President
Edwin

following the lead of the Pennsyl¬
vania, may prefer to operate their
own service individually.-

tion

("Special to The Financial Chronicle)

CHICAGO, ILL.

Wisconsin

favor

the
company,
ownership and
operation, of sleeping cars by an
individual railroad, or the forma¬

John D.

Ex¬

Stock

change. Mr. Schoessling was forr

Randolph 6960

Some

quarters^
regional', pools ings could be accomplished with¬
and in some the possibility was out municipal ownership, Judge
being voiced, that other railroads, Igoe said his action placed no ob¬
continue

stated

staff of Ames, Emerich & Co., Inc.,
105 South La Salle Street, memf

Illinois, Iowa and

(Continued from page 1586)

circles.

railroad

ceeding

(Special to The Financial Chronicle)

CHICAGO, ILL. — Paul M.
Schoessling, Sr. has joined -the

(

Chicago Brevities
'

Kitchen &
Co., 135 South La Salle Street, amnounce that Ralph M." Bloom has
•>

CHICAGO

Teletype CG I 05

Trinity 3908

Ralph M. Bloom With j Winfield Jacklew Is
Kitchen & Company
i With Dempsey & Co.

120 South La Salle Street

•

tion

be interested in

(Continued from first page)
the

attention

the

nation

rial to bur

opportunity and our obliga¬

Our

remarkable

tion in the post-war years are in¬

tion

termingled.

planning and execu¬
by our private
steamship
companies of the most complex
shipping operation ever conceived
or undertaken.
As the fate of the
Axis powers

is sealed by the on¬

ward

rush

Allied

;

military

might on the European continent
and in the Pacific, sustained by
the

of supplies from
time comes closer
logistics of war will be
flow

great

America, the
when the

supplanted by the logistics of
peace. As the day approaches that
our
merchant fleet can sail the
seas
without armament, without

protection and without fear, the
door of our greatest maritime op¬

to re¬
maritime
conduct of our

the elements necessary

its eminence

the

For

nation.

trade we have built, as
1, of this year, 440
C-type ships, the finest cargo ves¬
sels afloat; 370 fast, oceangoing
tankers and 90 Victory ships.
Buttressed
by
coastal
cargo
foreign

October

our

development of our foreign com¬
in complete justice to our-

merce

yet with consideration for
rights of others. Our leader¬
ship is a challenge to our destiny,
Out of discussions such as these
selves

the

the policies that will

come

may

guiding and determining fac¬
tors in international trade move¬
be

ments for years

to come.
post-war

duty

immediate

Our

The United States now possesses

store

of: increasing

welfarb through
a lively commerce with other na¬
tions. Our obligation lies in using
our powerful position in interna¬
tional affairs with discretion,,with
and

wealth

portunity shall swing wide..
all

Opportunity lies .in

direction

the

fairly apparent. No matter what
the shape of the peace, the enor¬
is

productivity of the United
States must, be extended for the
replenishment of those nations
impoverished by war. Conflict has
mous

of European
Asiatic .' communities.
It is
thousands

leveled
and

probable that hundreds of thou¬
sands of our soldiers will remain in

oceangoing occupied countries for some time.
special purpose vessels and Therefore the first years of peace
than 2,300 Liberty ships, our will be a period of reconstruction/

ships, coastal tankers,

tugs,
more

rehabilitation

and

nations

merchant fleet is the largest pos¬

More than
160,000 trained officers and men
are in the Merchant Marine. More
than 100 shipping companies have
had their trial by fire in operat¬
ing these vessels. We possess"1 an

populations, arid of supplying our
armed forces for whatever period

sessed by any nation.

tools.

abundance

That

our

Our obligation is to
use them wisely.
' ;
It was
the hope of the War
opportunity.

Shipping Administration on Vic¬
tory Fleet Day to point out to the
nation the fact that the Merchant
Marine

composed primarily of
In

and secondarily of ships.

men

1943, the mounting fig¬
our
production sheets

1942 and
on

ures

imagination of the

captured the
to

came

the

world.

end

Ex¬

with 1,896 ships

their

Battle

element

o;ur

replaced production fig¬
and the public's attention

future
a

well

long

ism of

merchant

our

seamen.

wilLno less
emphasize the human side of the
The dawn of peace

Merchant Marine.

The logistics of

will require every whit as
intelligence, foresight and
determination as the logistics of
war.
That is the point where the
National Foreign Trade Council
and the other organizations whose
peace

much

interests lie in overseas commerce

test, in their abil¬
ity to help formulate the "guiding
policies of our maritime future.
We may say that the battle of
supply has been won. .Yet there
will have their

We
shall build ships and sail them
until the enemy is vanquished.
When that day comes, however, it
is

room

for complacency.

shall not find

pared

meet

entirely unpre¬

the

problems

Preparation for that day is the
principal
There

aim

little

need

this
to

meeting.
tell

the

Council,
whose
membership for almost 40 years
Foreign

probabilities may stim¬
ulate
our
thought and provoke
the intelligent discussion that is so
necessary. —
,
A look beyond
scars

will

United

States, of the importance
shipping management in war
and in peace. You have watched
our shipping in operation as the
exigencies of war have demanded.
of

You have aided us.
our

from

You have seen

foreign
commerce
change
primarily export into import

materials

to manufacture war

goods and the export of those
goods to distant battlefronts. May

tions!

will

structure

industrial

*• our

have

imagination of the public is
so that it can envision the
benefits
of
a
strong
merchant
the

stirred

fleet, and our industrial and agric¬
leaders have the deter¬

ultural

mination

expand

•

foreign

our

commerce.

Sometimes it

seems

that

Merchant Marine is the least

understood of

national assets.

our

peactime connection with our

appears

heeded by business men

our

The

already have
foreign trade,

main to be

are

of tremendous expansion.

the

world

and

for

cry

manufacturing,
areas of the coun¬

great

farming

try's interior.
which

water-borne

vehicles
commerce

by
is

moved, from port. to.. port..

They
do
not themselves, except in a
very small degree, develop trade.
Trade,' however, can be greatly
retarded by the type

of the

ships and the service they
render.
In
the great
lanes of
commerce
they serve the- same

purpose

that the delivery^

for

does

the

has to sell.

the

milkman.

wagon

his

of distributing the milk fee

means

grade

availeth

him

matter how

high
has, it
nothing if he can¬
milk

not distribute it to his prospective
customers.
His delivery system is
very

important.

ican

Just

manufacturer

the Amer¬

and

of his.

use

farmer

own

war

materials.
Rivers

are

harnessed,

shall

will

industrial

thousands

the

and

practicable.

upon
we

goods

additional trade and make use of
additional

shipping facilities if in
terms granted to the
nations; they are forbidden
for a number of years to come to
have any merchant marine ex¬
the

peace

turers
of

the

and

midwest

farmers, though

them may ever have

sea

less

ocean

none

.Tlje

the

That

the

first

opportunity and

inter-

Would
our

our

half

not

make

farms could be operated at a sus¬
tained and planned level because
we

had" the

overseas"" transporta¬

had

Report

the

;

long range viewpoint
that the American Merchant Ma¬
rine should be
and

health

nomic

and

one

our

mkrkets

exports and unrestricted
to
foreign
materials,
of

our

important

mass-

our

the
our
are

of the solution to the
problem of overproduction ca¬
pacity of any industry or group
of industries.
Basically, this is

re¬

for national defense.

sources

open

pros-

part

permanent part of our busi¬
structure, an aid to our eco¬

ness

Without

our

es¬

capable. However, foreign trade
at best can offer no more than

live and dynamic

the

trade

foreign
flow

production industries and
agriculture cannot provide
productive employment for
labor force of which, they

our

obligation.

ment of the

the

con¬

problems

war

all

consideration

economic
their

our

mainly

because

directly

involves

the
.

interests,
policies,
tions,
and
conditions
other

intenof
all

nations."

These

all important phases

are

economic life of the

of the

coun¬

try, and should be carefully con¬
sidered when

plans are being de¬
veloped in connection with our
future foreign commerce.
We have the tools in abundance
for

expansion.

with

and

vision

them
to a

use

according

with

and

needs.

our

What policy shall we

follow?

Broadly, it is the Merchant Ma¬
rine Act of

But within the

1936.

flexible framework of that legis¬
lation

can

take steps to insure

our

maritime future.

the

fleet

The size of

mandatory.

not

specify /and
regulate
the
routes and sailings.
The task of

can

first importance for us is

the pro¬
vision, year in and year out, of
dependable, 1 regular,
and
fast
schedules

all trade

making

means

lines the

tation.

acme

flag

transpor¬
reest'ablishment

ocean

means

of pre-war

routes.

American

services and their im¬

provement. It means a search for
and study of new routes. It means
the

the

all- over

establishment,

world, of shipping offices, staffed
with American 'business men who
alive

are

the'opportunities of
sensitive

and

trade

world

the

Obligations of our Merchant Ma¬
rine, and who are willing to es¬
tablish their permanent homes in
the

country

sent,-

It will cost
But,

which

they

]

maintain
should not remain in the

There
that

those who

are

business of carrying ocean cargo;

that
be

foreign commerce should
in ships of other na¬
offer a lower price;

our

carried

tions

who

that

business

shipping should be
averse to spending a dollar in the
interest Of increasing volume.
It
of

scale

the

produce many dollars in re¬

may

:
'
' /
problem of organizing a sound turn./ ;
national economy, rather than
The cost is not so much, as some
of resorting to any uneconomic people think.
The much abused
schemes to give away goods and word
"subsidy" is one of the
services through exporting with¬ stumbling blocks to a fuller un¬
out
requiring—and making derstanding of the working of the
Merchant Marine Act in provid¬
possible—repayment.

every

American
lar

added

for

power

dollar
kept
from
ship operators is a dol¬
to foreign purchasing

these

ex¬

highly desirable.
That fallacy
unfortunately even been
carried to States in our country,

has

in the de¬
our country.
Twice in a
generation we have been forced
a

powerful

the

brink

for

serve

that
time

more
a

of
a

emer¬

It will be difficult to compare
cost of ship operation, with
those of foreign nations, post-war,
until the internal economies of
those nations are shaken down.
;i

our

parity payments will doubt¬
But the money

Some

less be inevitable.

spent in giving our operators an
even break is trifling compared to
the effect it can have on our na¬

i
major reason for Amer¬
past rapid economic de¬

was the great geo¬
graphical extent of our national
market in which goods flowed

velopment

mer¬

freely
throughout.
Likewise,
the Committee believes that a

be of inestimable peace¬

almost

compet¬

against goods com¬

ica's

.cheaper—and
satisfactory — to

benefit and still

her

another

ships constantly ready to
defend our shores, a fleet

can

and

of the States putting
artificial barriers of one kind

ing from other States,

not

modern fleet of

America

tween

itors.

merchant

national

parity of shipbuilding -ahd
equalization of ship operation be¬

ing

with many

'anxiety and ex¬
huge sum of money

construction

fleet tb

help

factor

of
a

gets what it does
importing. It gives

what it already has by ex¬
porting. There has always been
a widespread prejudice, amount¬
ing almost to a belief, that imT
porting
is reprehensible and
undesirable while exporting, is

point out that

overlook two
tremely important points.
persons

nation

exports.

our

would like

not have by

minimum

pay

to the

of artificial

its way?

trade,

The second point these persons
overlook is the fact that foreign

ports, will assure the
contribution
of
our

barriers

free flow of international

both

imports

and exr
greatest
foreign

;

something to do this.

international

are

;v„,

.■

chant

factories and

It was true
dependent

for

investment

many

The other half lies in develop¬

maintain

needed,

Fourth

perity.
for

two-thirds

nations

European

10%

export in normal times to 20

our

were

substantial

and

ohe-thifd going to

our

complex

our

access

increase
we

certain observa¬
tions
foreign trade to
which I direct your attention:

that

commerce

States and

United

vessel, neverthe¬
in

with

years

made
regarding

United Nations',
the

gency.

interested

obtain

sential part of continued

withal

of sales volume from the

the

pay

its

operations.

overseas

the

seen

Planning

cepting only that strictly neces¬
for inland waterways and

penditure of

manufac¬

our

Representatives, issued
recently, the Special Committee
on Post-War Economic Policy and

sary

coastwise

House

Axis

Cannot

and

flourish.

of this great segment of our popu¬
lation and actively acquaint them
with the maritime facts of life.

great

them, and the
Clipper ships seized the oppor¬
tunity to make our foreign trade

fense of

then it be¬

things that we can make so rap¬
idly and so abundantly.
It seems to me we can develop

terests' lie in foreign trade to put
forth the effort to obtain the ear

case,

other lands for the things
not produce in Amer¬
There was a supply of things

abroad

First, a Merchant Marine suffi¬
ciently large to carry a substantial
portion of our foreign commerce

be the

will

could

ica.

hooves every one of us whose in¬

If this

In their

true

was

earlier when

electrical

production,
foreign trade and shipping are
probably the most baffling and

men

courage

fleet

westward expansion.

demands for

come

machinery,

for attention

version

just policy, we can build a world¬
wide system of imports and expioneering development,
must be prepared in ad¬ .ports in keeping with the times

This

vance.

these

supply

mand

great upsurge in
the

selling.

"Although fortunately not so
immediately urgent in their de¬

our

fact

fair share of it?

railroads

■

services

—buying as well

impor¬
people
distance

nations

and

escape' the

cannot

economi¬

there

merchant

our

the way

built, railroad and air/
plane equipment to be delivered.
In the wake of the engineering

for

trade

In any

roads to be

Mer¬

chant Marine to deliver his prod¬
uct in the foreign market insofar
as

use

ested in maritime commerce.

but the

are

benefited

the

"We

that foreign trade must be con¬
sidered as a mutual transaction

goods.
have the imagination

limita¬

ample supply of dollars,
should readily exceed
peacetime levels/

any

that

our

engineers

our

Shall

Among

in gen-

8f '"marine' operations

the

Ships

from

home

the

Millions of

these

.United
appears

basic

the

and

economy;

technicians and

sell

brought

upwards

from

forth

re¬

great extent
purchases of raw

produce

means

the

been, the

American exports. Given

realize

lands

problems

struggle

have

exports

cally backward nations.

neighbors to the south there is
vast
reservoir
of
purchasing

stored

of"

demand

import

our

sale.

other

mentary

the verge

far-off lands will have gained
first-hand knowledge of the ele¬

Russia and

developed.

South America

weakness

States

lads, proud of their
country and its accomplishments
and living exponents of our way
of life and our standard of living.
India

realization

has shrunk.

intelligent

China and Africa and

the

ex¬

and

also

has

war

the

husky, healthy,

litth*

Thi^,^ay Jpe^ecause of the

30%?

rela¬

buyer to make

majority of them
for

must

Tn the experience of recent

the chronic shortage of
dollars, growing mainly out of

seller there must be

every

mobiles

to him that

commercial

end.

for

tance

salesmen

some

Merchant Marine

means

years

adjustment
must
be made in
our
national
thinking with regard to our for¬
eign trade. We must envision our

do, however, exist. There are still
frontiers in this world. And on a

several millions of

will

need

surplus abroad,

They

close.

not

the

which

factories

than

of paying
for
Likewise, according to
Department of Commerce:

tion

forward

pros-

basis, exports,

imports.

the

continuing

national economy.-

a-national

the

are

cof¬

literally

trade,

economy,

and

farms

goods, household equipment, auto4

even

peaceable

they're

look

the
our

"On

figuratively.

Well,

countries

Trade

panding

countries

opportunity

sense

and

in management, but more
farms, in insurance of¬
fices, supply houses and in land
transportation.
You
may
hear the question,
"Where are these, markets?"
men

the

war

God

and

the time when the

tivities may once

speed the day when your ac¬
again be turned
the development of friendly

ships,

purposes—sugar,

Other

use.

same.

Our particular project then,,
from this standpoint, is expansion
of our foreign commerce by every
implement at our command for
this would mean not only men on

will not be so evident

reveal

Trade

has fostered the commerce of the

be, yet a

look at the

should make

peace.

can

ity.

viewpoint? ' Uncer¬

range

from

the skill and hero¬

from

we'may

tain this shall certainly

tembteness

power,

not

ures,

focused

return

skip a few years
ahead, however, and appraise the
May

Marine

was

civilian life,
many of them seeking adjustment
into the civilian economy.
Our
maritime
industries, it is esti¬
mated, provide five million jobs
when operating at normal capac¬
mately

world

economy

IVIerchant

ulti¬

will

men

perity of

enough tin
copper or nitrates

fee, tea, spices, rare metals, ma¬
hogany, • bananas — hundreds
of
foods and other products that are
essential to us.
We export the
things we don't need for those we

Its

Atlantic, the

of the

million

Ten

own

our

trade

The United

have

not

aluminum

lor

The primary national post-war
objective is provision of jobs for
all.

does

they are required abroad.

th$

fought. out

protectors

bitter

hauling this mate¬

two-way business.

to prepare

and

convoys

our

States

ports?

'.Thursday, October 12, 1944

not self-sufficient.

are

our

the

overtook

production

and

human

than 19,000,000 tons.

ship

losses

that

deadweight tons.

16,000,000

ceed it they did,
of

1943

objective

the

exceed

would

shipbuilders

our

certain

making

were

summer

trade is

take his

that would

system

surplus to a ready market? Would
not our railroads and truck lines

Our Maritime Future
the

FINANCIAL CHRONICLE
&

THE COMMERCIAL

1,588

tional
are

The payments
handout from the Gov¬

economy.

not

ernment but serve to equalize the
cost of

operating ships under the

American flag and under foreign

They go into the pockets

flags.
of

merchant

our

form

keeping with our
standards. > And,
prove

than

seamen

decent

wage

wage and

the

scale in

the

living
results

to give the operators moie
reasonable return

investment,

part

the

their

excess

Volume

the

earnings are recapturable by
Government:

worth

the

that

noting

that has been

amount

paid out as the operating differ¬
subsidy in any year since
1936 Act took effect is less

ential
the

If we were to
double the amount of our foreign
trade carried on American ships,
an
annual outlay of twice that
amount might be anticipated, but
increasing
volume of traffic
should bring an increasing margin
of profit, and hence a decreasing
amount for subsidy.
Particularly
would this be so if the American
$13,000,000.

than

ships could travel full and down.
As a matter of fact, out of some

water-borne

domestic
and at

not be used for any

com¬

least 50%

our

than -to-serve

Navy in time of emergency*
Otherwise, it would always hang
over
the heads of the shipping

should, have somewhere
between 5,000,000 and 10,000,000
deadweight tons of ships in re¬
we

serve

Defense

"National

condi¬

and to

order

ual

Merchant Re¬

first-class

Fleet''

maintain

call

industries as a
fleet
of vessels
that
might be
brought into service as replace¬
ments, or to force down rates, or
set up competition with the es¬

to put this

before being laid up;

serve

tion

and

for emergency use*

It would be necessary

that

came

that

when

the individ¬
could be quickly

reserve

fleet

reserve

year.
If we were to. place
1,000 vessels in this reserve fleet,

per

it would

should

this

it would cost be¬
$3,000 and $5,000 per ship

sanctuary,

tween

placed in commission.
This

maintain

To
in

emergency

for its use,

vessels

shipbuilding

tablished lines.

condition

the

other purpose
auxiliary to

the

foreign, commerce in active serv-^

ice,

000,000

kept in sanctuary so that it could

cost not

per

year,

than $5,-

$100,000,000

for 20 years.

This, plus the active
be,the in¬

merchant fleet, would

premium that the country
pay 4 against
having
to

surance

would

spend some
$15,000,000,000 for
ships when the next war comes.
We have set the overall size of

post-war fleet at 15 to 20
million deadweight tons.
Of this
our

think

tonnage,

million

seven

tons, exclusive of tankers, should
properly be engaged in foreign
trade, provided we go after the
business to keep these ships sail¬
ing full and down.
We will have an excess of

when the

war

over

ships

and normal

conditions are.restored.

we should scrap
of the war-built vessels* Per¬
haps some pf the obsolete,,. 20year-old cargo ships that have
my

feeling that

any

been

can

that

service

scrapped.

half

than

It is not

(Continued

ear¬

was

the shipping

that the net

would seem therefore

exceed an average

hardly

would

subsidy

operating

the

cost

$6,000,000

might

and

year

well be as low as $3,000,000.
y Aside from cash and other cur¬
rent assets which are required for

very

American steamship
engaged
in foreign

operations,

companies

1943 had, com¬

trade at the end of

funds or re¬

either actual

bined.

ceivables which would

purchase of vessels, to¬

for

used

shortly be¬

funds that could be

actual

come

taling something over $220,000,000.
Kouehlv, therefore, the companies

engaged in foreign trade, taken as
whole, have sufficient funds
available to enable them on the

differential sub¬

basis of the 50%

and a 25% down payment
to purchase
ships equivalent at
least to their pre-war tonnage in
the foreign trade fleet, and prob¬
sidy

ably equivalent to something ap¬

double the tonnage

proximating

fleet.
understood, how¬
ever. that the general availability
of
finds : does
not
necessarily
of the

pre-war

should

individual

each

that

mean

com¬

position

is in that particular

pany

require¬
ments, for ships.
Some may be re¬
luctant to enter into commitments
which
entail
extensive
fixed
with reference to its own

from carrying
price on the
deferred mortgage payments, the
resulting

charges

YOUR FOREIGN TRADE TOMORROW

75% of the purchase

ability to-meet which will depend
only on
present cash re¬
sources but on. future
volume of

not

business and

This is one

earnings.

effect of the
operating differential subsidy is
respect in which the
imoortant.

iust

Now,

about MA¬

word

INSURANCE.

RINE

strong

American Marine insurance mar¬

essential

ket

our

Merchant

has

enacted,

the health

time

from

Congress

Marine.

time,

legislation designed to encourage
such a market.
The national pol¬
icy

support

underwriters is

themselves

underwriters

the

for

remains

of our American
therefore clear. It

forward con¬
structively.
It would certainly
strengthen our American marine
to

insurance market if the Syndicate

itself

in, a, position, to offer
hull.insurance to all comers—to
foreign owners »s well as to our
own
citizens.
I hope they will

.Put,

do
/

and

has any thought

that

building will
be retained in active service after
the

are

war.

posal

are

use

fleet would

our

not

tacts

in Allied and other

stitutes

inestimable aid

import.

those compan¬

',/:.

These Chase facilities which
the

changed conditions:

own customers.

ies and individuals interested in export

up to

friendly nations.

always, the intimate knowledge of actual
trade conditions as they exist and change con¬

date; new credit
information must be gathered and other vital
facts correlated in the light/of drastically
brought

need, the Chase

light of what is already known.
For. example, pre-war data regarding busi¬
ness firms in
European countries must be re¬

vised and

anticipation of such

National Bank has maintained its many con¬

early to look at the future situation

too

THE

disposal of

banks

;

provide

•

are

and
■

■'

always at

domestic correspondent
valuable service for. their

our
a

;

' ■

use

our

entire

entrance

into

the

are

THE

CITY

NEW

HEAD OFFICE:

corner

trying to avoid.

Havana

San Juan

Panama

Colon

Cristobal

Berkeley Sqp^ye; Bush House,

world, the very thing we
Balboa

consideration of the size
merchant fleet
must keen in mind that one of

the fundamental princinles of the
Merchant Marine Act of 1936 is to
have

serve

Navy:
we

adequate number of shins
as
an
auxiliary of the

It has been'estimated that
a sufficient number of

have

modern,, fast ships to. carry all of

Member Federal Deposit Insurance

Aldwych

'Office of Representative: Mexico City

post-war

our

PineStre
'uassaN
;

In any

BANK

YORK

'■

LONDON—Main Office, 6 Lombard Street; Branches, 51

commercial warfare with the rest
of

NATIONAL

CHASE

2.000

than

western world

in the

faced with dis¬

Liberty ships.

of the

so.

None of

all the ships

■

from Hitler's domination, the
"shape of things to come" begins to take
form. In one field, that of foreign trade, it is
emerges

Corporation

years

belief

shipbreaking
such as has existed in
England,
Germany
and
other
countries
for
years.
By
this
method, it will be possible to
scrap such vessels as are no longer
required in an nrderly manner
and to the best advantage of the
entire maritime industry.
If fwe
scrapped a large number of ves-

the balance sheets

industry

of
companies as subject
to possible recapture, and an in¬
creasing
volume of business
should in all probability, increase
the percentage of recapture.
It

marked

many

It is

should endeavor to estab¬

during seven years of actual oper¬
ation of the Act, some $31,000,000
—or

for

lish in this country a

payments,

of subsidy

$51,000,000

pur

merce,

maximum

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4324

160

on page

1594)

THE COMMERCIAL & FINANCIAL CHRONICLE

1590

said further,

The Industrial Life

sentence:
It

Of Post-War America
entire

If it is not woven into the

for another architect.

United

States Supreme

Court

early in the

class

same

thought
this court, which

looked

exhibit¬

steadiness * which

hold

the

face

balance

would
the

even

ebbs

temporary

flows of

opinion, should

and

now

it¬

self become the breeder of fresh

lic

mind

to' the

The solemn truth that must sink

Again:

considered the set¬
With a little

This tendency

involves

assumption that knowledge and
wisdom reside in us which was

paraphrasing, his denounciation of
this tendency may well be broad¬

denied to

applied to the unholy
tendency of Government in gen¬
and

our

predecessors.

this

nation

without

can, as

apply that as it stands,

can

paraphrasing.

minds

the

that

foremost need is

citizens of

this

country's
which

will

ahead

enable

men

plan

feeling of security, thus
opening the way for progress.
>
a

Now, by stable I do not
static

retroactive

nor

citrant.

mean

recal¬

nor

Stability does not rest
conservatism.

hide-bound

It beds

combination of conservatism,
a nutshell is respect for

which in

fundamental^,

proven

which

liberalism
to

and that
adapts

business

conditions,

changing

which

keeps it progressively abreast of
the times, aids it in avoiding stag¬
I have a broad

sion

Brown Brothers Harriman

Co.

general impres¬

bankers, out of an

of caution, have in the past

that in post-war

will

find,

banking

you

aviation has found,-

principal

with

effective, to fly in a higher

altitude.

United States Government Securities

Loans and Discounts

Customers'Liability
Other Assets

on
.

.....

...

Acceptances
.

"5,190,490.48

41,555,914.91

5,137,845-27

457,205.28

Acceptances
.

*/,:

....

Accrued Interest,

Reserve for

Capital

Expenses,

Contingencies
,7,
.

5,513,782.58
■

etc.

Surplus *«•','

305,426.99'
.

interests

Added

this

of
is

institutions to

ceeding

speed

This

regulations.

program

conservative

enough to be safe and yet it
bines

with conservatism

workable

think

13,585,801.91

—the

Federal

spreading

around thinks

Govern¬

its

in terms

terms

largess

of money

WPA, social security,

sions, post-war
I have

money

pen¬

allowances.

quarrel with this Gov¬

ernment beneficence up to a
tain

point.

But. not to

putting

lence,

nor

Pledged

Law.

are

familiar with them,

lar

making

just

men

don't

a young

tion of men deeply interested in:
;the health of railroad securities. I
can discuss them
only briefly.
A
railroad executive must have ter¬
The

his

energy,

than

ful

carve

out his

roads,
Out

into

in its

States

land

only

18,000'
mileage in1
The other rail¬
,

grant

to rates.

land grant railroad'
have long been par-1
ties to "Equalization Agreements"
under which they equalize their
a

rates

Government traffic with

those of land grant railroads. The*
value of the lands at the time of

success¬

their grant has been paid for over

novation that has

and

United
are

in this sense,

right here I want to. touch

way

the

which is not

God-

and

else that raises
temperature—a pernicious in¬

its

lesscondition

in the west.
250,000 miles of railroads

respect

something

upon

as a

roads, including the Union Pacific,

career.

And

which'

particularly

miles

his indus¬

own

century ago

and

something

attendant upon the grant of landsto induce the construction of rail-'

try, his integrity, and his brains,
and to

traffic

established

were

free dol¬

man a

is the

Government

mere

first

necessity for a
repeal of land grant rates, which:
reduce
tariff
rates
by 50% on

indo¬

believe

substitute, for

a„

their

importance
justifies:
stressing them before an associa-'

to tho point of dulling

leaners.

handing

premium

but

cer¬

literally snaked

American

bill

these

land

accomplish the repeal

bf these land grant rates is pend¬

ing in Congress. The House passed
by the overwhelming majority:

active, malignance, eats

the very vital life of our freedom.

again

over

grant reductions alone.

politics,

know how and where I stand.

and

communities. But

the mirage of big business on the

arc

more;

problems face the railroads

jtoday. You

the point

locations. Com¬

new

forward looking

$176,766,919.49

than doing"

minal facilities.

too

we are

merely

The

money.

ment

useful,

liberalism.

Again I suggest that
prone

com¬

I always have been strong for
crystal gazing labor unions headed by rightjustify such an endeavor. Its suc¬ thinking American leaders—lead¬
cess might be a windfall to these
ers
who ■' were interested in the

munity pride

2,000,000.00

U. S. Government Securities Par Value $/00,000
Public Deposits as Required by

there

give you the headaches.

ular

This can all be done without
running any block signals or ex^

many

enticing large established business

1,500,000.00

...

that

railroad

face

;

parts of the. country segments of American labor, was
The railroad brotherhoods
post-war planners have dreams of born.

162,585-73

11,585,801.91

5,208,355.59

corporations

the

protect

fact

running

career

face

the station. Even and foremost as an American citi¬
bankers,are people, and I venture zen and next as a man who has
the suggestion that they too have carried a union card all his work¬
been too willing to trade freedom ing life, and still does.
I was a
for security because of their trus¬ union/man before the un-Amer¬
tee status.
ican
element,, now
dominating

4,612,348.14 $156,310,176.26

Less Held in Portfolio.

human

when standing in

$151,697,828.12

all

the

long

brought

efficient job of transportation.
The
extra-curricular
problems'

rate books; lending on
variety of collateral, faith

wider

been

old

some
a

ways

of 236 to 16.* The Interstate Com¬

I mean the Political Action Com¬ merce
Commission,
associations'
characteristica
pure-trustee relationship to de¬ mittee, which proposes to force embracing shippers in all parts of
the
country, heads * of railroad^
positors which is a still higher American union labor to contrib¬
labor organizations, freight for-^
obligation'. Safety must be para¬ ute from its wages to a political
mount and sacred but not neces¬ campaign it not ohly opposes but warding associations, even truck¬
ing companies which are competi-'
sarily synonymous with putrefac¬ is then. coerced into voting for
tors of the railroads, have fronted
tion.
Dollars, like railroad pas¬ principles and candidates to which
for the repeal.
This bill is now
it is, opposed. I resent this first
sengers, are not necessarily safest

LIABILITIES
.

distinguishing

28,361,322.71

$176,766,919-49

Deposits—Demand
Deposits—Time .

with

stockholders.

62,990,324.47

State, Municipal and Other Public Securities
Other Marketable Securities

must

$ 33,073,616.37

corporations and in

are

common

Hand and Due from Banks.

staggering
maturity
the loan; the throwing away of

Banks

ASSETS
Cash

avoid

few moments I want;
into my own yard."

back

Many times in
have

that it is safer, and more efficient
and

get

for the borrower; amortization of

shock to the borrower

alive

one.

Now for

given right to the opportunity to

of Condition, September 30, 1944

maturity
unproductive- dread

cash

low. That may be
some
degree for
Government competition. It may
be

Statement

than

near

responsible

PHILADELPHIA'

BOSTON

brings

whose

been flying too

PRIVATE BANKERS
NEW YORK

that you

excess

those

ambition,

nation.

Business Established 1818

picture, there are loans
longer'periods, much longer

than

much

very

this

date

stability:—a stab¬

ilization of word and deed

with

You

institutions.

the

equipment.

for

in yourself and in others.

our

into

and

Two, at least two, but particu-;
character, energy and
)arly two,< of these extra-curric-'
stability, of initiative—-yes, a new confidence

doubt and confusion in the pub¬

re-

main lipe double track system of and acting for themselves. Think¬
lending and borrowing, using the ing right and acting quickly was
known devices of safety, adjusting the difference between life and
speed and load to track condition death.
Those returning will be

greatest

stricted railroad ticket, good for

•

tled law ol the land.

ash

whose

•

con¬

this day and train only.

Supreme

eral to throw into the

the

into

Court to upset consid¬
ered opinions and the rules of
law announced in them—opinions

era

been

and

nine years ago, tends to bring
adjudications of this tribunal

;

ing consistency of adjudication,
„

about

announced

that

ruling

dissenting opinion he blasted the
recent
tendency of the present

ened

;

instant decision, over-

that the

sounded a note which should
echo through the country.
In a

and rules long

Roberts said:

The reason for my concern

year

that

by doubt and

purpose,

has

entire national solidarity.

our

Justice

Mr. Justice Roberts of the

and

which have been the life blood of

framework, then it's time to look

marked

need is steadfastness of

the real fundamentals

if obsolete,

plan.

>•.•••••

regrettable

fusion,

(Continued from page 1,578)
foundation of any post-war

;■

era

and here is

boiled down into a single

sermon

Thursday, October 12, 1944

Secure

Uncertainties and

disputes have

arisen in many, many cases

what

traffic

and

war

to-

this dime of

during

construction is Gov-*

ernmeni traffic within the mean-•

ing of the law. The Government
the tariff rate. 'The railroads

pays

pay

taxes on what the
has paid, with the
earnings brackets" as high

income

Government
excess

95%.-.. Government accountants,

two

behind in their
the bills, decide
which are subject - to land grant
deductions,
and
withhold
the
amount from other charges owed
by the Government to the rail¬
or

work,

years

re-audit

European ideology. But
must not. blind 1 say to you and to the people of
these communities to the: success¬
this country that, no political ac¬
roads. '
j
ful, expanding little businesses tion committee or any group or
No
railroad, therefore,. knows
now within their grasp. After the
individual is going to tell me or
where it stands. The railroads face
war
new. business—young
busi¬
any
upheaded American in this the
likely
prospect ; of
having
ness—will grow up and will be
country ; how he is going to vote
$300,000,000 or more taken away
worth nurturing. This new. busi¬
Or what he is going to think.
If from them in two, three, five
ness, this young business estab¬
the sorry day should ever come
years
from • now—monies
upon,
lished
and
developed by little
when nefarious schemes like this which
they have already paid
business
men
of character
and
succeed, then on that day the dis¬ taxes. With war traffic earnings
capacity, must be supported by.
integration
of
American
labor diminished or gone, with expenses
private capital—the banks. There
will be another Walter Chrysler union starts and democracy be¬ at a peak of all times,- where will
they find the money to refund?
and
Henry Ford hidden in the gins to crumble.

dreamy

they represented rather than

men

before the Senate.

some

horizon

■■

PARTNERS
Moreau D. Brown

FACILITIES

E. R. Harrhian

Complete Facilities

Thatcher M. Brown #W. A. Harriman

Deposit Accounts
.

Prescott S. Bush

Ray Morris

Brokers

Knight Woollf.y

•

Loans

Commercial Letters

Louis Curtis

for

Domestic

and

Foreign,Banking

for

•

Acceptances

Purchase

Credit

and

Sale

Securities

Investment Advisory Service

Managers
Edward Abrams

♦Charles W. Eliason, Jr.
Stephen Y. Hord

Charles F, Breed
Alister C. Colquhoun

Howard P. Maeder

*H. Pelham Curtis

Thomas McCance

Ernest E. Nelson

♦Donald k. Walker

♦John C. West

•.

business must be reviewed. It may

Assistant Managers

David G. Ackf.rman

Thomas J. McElrath
♦Edwin K. Merrill

Merritt T. Cooke

Herbert. Muhlert

Joseph R. Kenny

Arthur K. Paddock

F. II. Kingsbury, Jr.

William F-Ray
Arthur R. Rowe

William A. Hf.ss

•

L. Parks Shipley•

♦Eugene W. Stetson, Jr.
Gale Willard
I-Iarry L. Wills

Joseph C. Lucey

The bill affords no retroactive,
Josh Billings once said: "Thank
office of the little .work¬
shops. Find, them. That, is the way, God, there is not enough money adjustment but merely establishes,
for the. future the;same-rates to
of
the
America
of opportunity in the world to buy a wag from a
tne
Government, as a, shipper,,
that has been lost in the crystal dog's tail.
That must come from
as
will be paid by any other in¬
maze of regimentation.
within the dog."
dividual or corporation as a ship¬
The present • status of an old
There is not enough money in
small

H. D. Pennington, General Manager

have become sick after the
Make it well

given

care,

Paul, Comptroller

Arthur B. Smith, Auditor

Private Bankers and

subject

to examination and regulation

by the

Superintendent of Banks of the State 'of New York and by the Department of
Banking of the Commonwealth of Pennsylvania. Subject to supervision and ex¬
amination by the Commissioner of Banks of the Commonwealth of Massachusetts.

may

grow

the

three

credit

tradition,

pacity and capital,

*Now in Government Service.

Licensed

again. The sick child,
to

be the

strongest of the brood.

banking
George E.

war.

be supplied
and

even

"C's"

of
ca¬

fourth must

by bankers—courage;
a

mentation
freedom

hatred,

fifth—confidence—

and

opportunity,

class

prejudice, or intolerance.

equally as certain that our
victorious returning fighting men
I

character,
a

per.

compensate for regi¬
of Americans, loss of

the world to

going to

are

back

insist upon coming

better

America

than

they left, and it may go hard with

This

measure

not

Santa

Claus grant to the railroads.

merely
the

measure

railroads

It is
for justice tov

and

the general,

shipping public.
When

war

came,

the President

of the United States asked indus¬

try

for

miracle.

The

railroad

industry stripped to the waist

individual or group who at¬ pitched in. It strained every mus¬
It played its part magnif¬
tempts to herd them in a civil non¬ cle.
others.
thinking regiment or attempts to icently. The military departments
I suggest that banking must
get stamp them in a common mold. of the Government have said so.
off
the side track—Government These boys have been trained to The Office of Defense Transporta¬
confidence

yourselves

banking—and get back

and

any

the old do

job which requires thinking

tion has

said

so.

I have said be-

•

Volume

THE COMMERCIAL" & FINANCIAL CHRONICLE

Number 4324

160

forehand I will say it again, that
second only to the men on. out
battle fronts in Europe and in the

j far Pacific, the railroad employees
of this nation have been the coun-

full,

quotation but the clock rules

it"out;■■

speech, Mr. Roosevelt
developed the thought that "The
wastes of competition have ' be¬
come more and -more
insupport¬

They
\ have stood to their • jobs as real able." "I believe,"; he said, , "the
,' patriotic American citizens. They policy of enforced competition be¬
try's first line of defense.

they have not
Army and Navy E's

tween railroads

be carried to

can

lengths."

unnecessary

■

railroad

The

railroad

the

and

industry
felt

men

throwing

in I

justified
their; collective
fully

come;

out

of cooperation

Washington

this

sustained

the

nerve-

the loyalty

of railroads and railY
-\
J'"/; - ■

men.

from

suit

that

try

i to

from

attempt

public

[ rostrum. The Department of Jus¬
tice

ballyhooed the suit before it
brought as an advance agent

was

ballyhoos a circus. Since the suit
brought, the Department of

was

has

Justice

the

tried

issues

part of the newspapers ex¬

every

the lovelorn column, and I
expect it will overflow there soon,
since
it is / a device of cupid—
cept

suit

the
West — Lincoln,
the
home town of Wendell Berge, As¬
sistant Attorney General in charge

in
Nebraska,

brought

was

of the Anti-Trust Division—prob¬

ably to give him a chance to visit
the home folks.
The South has
been

"pretty noisy in its" advocacy

adjustment

railroad rates.
quite content

The West has been

except for sporadic outbursts. But

campaign is

a
'

the

envy

the

Political fences

on.

have

West

rebuilt.

; The political fences in the South
; are thought to

be in

better state

of repair. So the suit was brought
in
the
West.
Editorial writers

;V
t

Mr. Berge evidences great pride

in the discovery
on

used

"—the
ment.

it.

of *a secret

weap¬

by the western railroads

Commissioner

Plan

Agree¬

He places great stress upon

This agreement became

How

law.

can

when

course

;
?

was

by
and responsible
to
Congress.
My opinion as a lay¬

Biddle-Berge

suit

members

ally

built

type

pass

that

streamline

service

and

when
and

tried,

anti-trust

railroads

fin¬

government

the

will

find itself stuck in the mud, with
the endgate gone, and nothing to

Department

Pearl

Justice

Since

monopolies.

Harbor

around
140 anti¬
have, been brought. A

suits

little introspection by the depart¬
ment will discover a monopoly
own headquarters. The
is not
application of the Sherman Act

effect

the secret.
the

did the press

and their

numerous

subordinates
it remained

came

war

the

Mo.

page

available

from

firm,

history,
XYZ's will

the
go

ABC's and the
into the discard,
longer share with

longer

Will

judicial

cease

with

powers,

to be

Lester

bureaus

the

mitted

states

request

specializes

which

' 1

Ogden

will

partnership

ad¬

Clucas & Co., 70 Pine Street, New

geographical

mere

the

dealers

E. W. Clucas To Admit,:

will

powers,, courts

Louis,

Copies of this analysis are

in these securities.

Congress will no
bureaus and executive directives

its legislative

the

pared by Wm. F. Dowdall & Co'.,
319 North Fourth Street, St.

mentation will be but

a sorry

their

York

respected places
in the Union of the States, and

York

boundaries but will
accustomed

resume

City, members of the New

Stock Exchange and other
leading Exchanges, as of October

and

18th.

again exercise those powers which
they have not. yielded under the

the

Constitution to the Federal Gov¬

stability

this land

op¬

portunity, the United States of
America, will be reestablished.

ernment—then—and not before—

/" f

over, the
depression

trains,

low .cost
.

going to

they were ready

the

carry

pass over

the in¬

precedented

regulate rates when I know and
every, railroad
man' and every

shipper, knows how conscientious-!
ly and competently the commis-:
sion has.exercised its powers with

In 1932

our
as¬

se¬

railroad

their

AC'/Jc1/

from

riding

■

Td'y•:Ay:

commission"

the

plus; the advantages

field-

overseas

many

with/: the

issued

■

close association with correspondent

hanks,througho,itf the world, National City today

in its

of the country's largest industries

well

serving

hundreds of

Nov,

57th

annual

report,

thousands of individuals and small businesses.

In addition, all

1, 1943, that

Analysis of the filings of!
riffs

that
total

our

recent

year

annual

stated
been

ta-j

showed

approximately 40% of the
number lodged in our Bu¬

of Traffic, and reported

reau

.services

of the City-

Bank Farmers Trust Company —

chartered in 1822. It conducts oniy a trust

".the

care

report for the year;
which,' either .'had

rates

National City branches offer the

and management o

business—

the property of its clients.;.

required by us, or had re-r
our
formal approval' as

ceived

justified under the act, or thO
filing was permitted upon ad4

NATIONAL

ministrative consideration of the

Head Office

applications for special permis4
A large number of the to4

BANK

CITY
•

WALL

NEW YORK

STREET

New York

•

slon.

tal number of/tariffs above re¬
as

either

affect

change

CITY

filed with.us doVnot

ported
-

any

rate

the

level

rate.

BANK

FARMERS

TRUST

COMPANY

Head Office :-

■».

22 WILLIAM

STREET

New York

•

Uptown Office: Madison Avenue
Information

was

nominated

Governor

for

also be obtained through

convention

any

branch of The National City Bank of New York

Members federal Deposit Insurance Corporation

Brooklyn Office: 181 Montague Street

„

At the re¬

cent Democratic State

may

42nd Street

the Democratic ticket.

he made

•

Active Overseas Branches of The National City Bank of New York

——

record-breaking speech!,

Fellow Democrats: I ..feel

Railroads

■

took

did

when

load' of

braska City and
mud.

Candidate

Roosevelt, knew some¬
thing about the plight of the rail¬
roads.
In a speech made in Salt
Lake

the

With its long background of practical banking knowledge,

rates

statement of the commission

plowed in his brow.

City, Utah, in September
1932, he discussed at length and
sympathically, the railroad ques¬
tion.
His speech deserves quite

enter

were
plunging
into
bankruptcy
and
receivership.
President Roosevelt, then as now

equip National City

30 years,

expansion here and abroad.

National Cityiwas the first

ARGENTINA

Pernambuco

Caibarien

COLOMBIA

•

had

along, with experience

.and in adapting hanking to changing conditions.

filed become
'lawful rates' without any review
the

Pull¬ reported and commented on edi¬
man
drawing rooms paid for by torially by the < "Omaha Worldtaxpayers, never got near enough Herald," one of the country's great
in those days to a railroad execu* newspapers. It contained.70 words.
I quote it in full:
• ■
tive to see the furrows depression
knowledge

wars—

leader in offering small Joans to individuals and little businesses;

•

the worst depression in
history. Mr. Biddle and his
sistant, Mr. Berge, who have
bulk

A. i

.vh r

Nebraska, thanks to the won¬
occur¬ der-working primary system, a 624
year-old bus boy in a bomber
plant cafeteria, George W. Olsen,

the

•

Justice "show ' that over

99%

and

in the depth

we were

of experience in domestic

always an eye to fairness.

secret, then an un¬

phenomenon

operating branches abroad for

reconversion and

terstate Commerce Commission to

generally.

about

knew
a

years

to-help American hanking and industry in planning post-war

concern-?

ing the ineffectiveness of the Inf

Sev¬

assistants and

thirty-two

banking*—through 6 major

un¬
.

Mr. Berge

hundred and

that

the/extent

competent

sinuations of

Interstate

red in the business world.

worries

spirit

Federal

regi¬

their

The

the

Government will disappear,

unload.

right at its

precedented load.

Thirty-four railroad' chief execu¬
tives signed the agreement.
And
if thirty-four railroad executives

cured

the

popular transportation, sped up
the service, improved equipment

\ .•?

this

analysis

insists

somebody

going to
during

facts

Commission/ including
the late Mr. Joseph B. Eastman,
knew about the plan before the
agreement: was signed and were
impressed with it.
Railway and
traffic magazines carried a story
about it

that when

against

remedy for this monopoly

quicksand. %

Commerce
1

man

paternalism

interesting

various companies comprising the
Coca-Cola industry has been pre¬

fundamental

letter and in its

law in its
and

this

Apply

mean

United

What

Dec.

not let in

eral

the

States.

the

Appear Attractive

tampering; with- the compass?
security can man, woman,
child build on?. Security of the

1, 1932. If it was a
secret, Mr. Berge, possibly because
be was a very young man at that
time, was one of the few who
on

target

Constitution

Coca-Cola Securities

nation

world—I

the

this

having broken the
the railroads chart

charged with

tive

law,

century

pression
has
been
temporarily
bridged, and
the Commissioner
Plan Agreement has outlived its
usefulness and been terminated;
these
railroads
are
solemnly

ment

the editorials.

dictate

Department
directly

the * real

railroads,

I am
throughout the c ountry have going to pass over the discrepancy
between Mr. Serge's assertion that
pointedly called the turn.
It is
the - investigations of the Departs
politics. Wendell Berge did not

the

aimed

than

mission, decided to do something
about it.
And now that the de¬

the

The

the

artillery
Justice

that- fundamental

the railroads of the West pioneered

wooing votes.
;

half has made

ing the wisdom of the attitude of
both Mr. Roosevelt and the .com¬

the integrity* the intelligence and

Far

willing

been

gov¬

grateful

ment of Justice, pinned a medal
on
that chest—an injunction suit
in Federal Court which challenges

yet

put into practice."

has, through its Depart--

ernment

road

have

utives

"A greater degree
than railroad exec¬

And the western railroads, sens¬

wracking* effort;

trust

but that this

minimized

could

that

confidence

would require

ognized

the

pressed

And now their reward has

middle

and

gunning ...for

both in service and rates" and ex¬

they have finally been rec¬

chests.

It is my opinoin that while the

/*.

for

created

In the 1931
or any other decorations for their
15%
rate increase case
(which
was aecided against the railroads
performance.; The railroad men of
this country have taken a beating except in small part) the Inter¬
through these past three years, state Commerce Commission, to
i but they have taken that beating support its decision, pointed out
standing up and they will be erect the necessity for the railroads "to
-and ready when this conflict is cooperate more efficiently with
over.
\
;,
'
! each other and to reduce waste,
received any

which

Interstate Commerce Commission,
which
is
a
regulatory
body

have deserved, but

still-going to do for me, and
\/r

but

L thank you."' :

-/'are

"■"%C

•'

that

■

1591

was

apples

gust
and

Ne¬

got stuck in the

night.
I

appreciate

what

you

Bogota

Santos

Cardenas

Barranquilla

Sao Paulo

Flores

Manzanillo

Medellin

CANAL

■;.'

{Buenos Aires)

R.osario

CUBA

ZONE

Balboa
Cristobal

Havana■
Cuatro Caminos

{Havana)

Galiano
CHILE

BRAZIL

Rio. de

.Santiago
Janeiro

Valparaiso

Mexico

City

—

Caguas
Mayaguez

Matanzas

(*Buenos Aires')
Plaza Once

I decided I'd have to un¬

load, but the end gate was gone.
There I was, stuck and with
nothing to unload.
I feel the same way here to¬
But

Buenos-Aires

•

MEXICO

Santiago

Lonja

{Havana)

Ponce

•

REPUBLIC

PERU
,

ENGLAND

PANAMA

Lima

Panama

London

117, Old Broad St.
11, Waterloo Place

{Havana)
La

INDIA

Bombav

PUERTO

San

RICO

URUGUAY

Montevideo

J uan

Arecibo
Bavamon

VENEZUELA

Caracas

•

CHRONICLE

THE COMMERCIAL & FINANCIAL

1592

Thursday, October 12, 1944

Stock Market In The Immediate

Royal Bank of Scotland

PRIMARY MARKETS IN

Incorporated by Royal Charter 1727

Post-War Period

BANK and INSURANCE STOCKS

HEAD

(Continued from page 1578)
V2

Huff, Geyer & Hecht
New

3-0783

38-hour

TELEPHONES

Enterprise

HARTFORD,

condi¬

ideal

work-week

income

1946.

for

$134 bil¬

That figure

peak peacetime

our

com¬

1929 and

year

with $71 billion for the

peak peace

of the past decade, 1937.

year

with around $83 billion at

pares

7008

Enterprise

7008

Enterprise

1942

national

net

lion

PORTLAND,

fiOU

PROVIDENCE,

1940, Mr. Livingston arrived at

ANGELES, SAN FRANCISCO, SEATTLE

LOS

LOUIS,

ST-

the

what

Taking the price
and assuming the

same

NEW YORK, BOSTON, CHICAGO.

SYSTEM CONNECTING:

WIRE

PHILADELPHIA,

under

level

CG-105

NY 1-2875
PRIVATE

rather,

tions mentioned.

FRanklin 7535

Office Square
HUBburd 0650

Post

Stroet

Wall

WHitehall

could

Chicago 3
135 S. La Salle Street

Boston

York

but,

year

the basis of this study, on one part

Bank and Insurance Stocks

by Professor Myrdal,
a
Swedish economist, before the
National
Economic
Society
of
Sweden

this year in re¬
American conditions
and our general assumption that
we would attain a very high post¬
war income level.
Professor Myr¬
dal

Five Years Ending with 1943 and for the Year 1943."
It is published by a prominent Baltimore investment house, and
member of the New York Stock Exchange.*
*
In the "Foreword" the publishers
state: "We have prepared it '
for the use of our dealer friends
Comparison. & Analysis
with the thought that it would be
panies for

their sales organ¬
ization in the presentation to in¬
vestors
of
factual
information
of assistance to

Available

each

Data on

one

of these, com¬

120 BROADWAY,

presented separately,
presentation comprising: his¬

panies
the

are

plow-back, Federal taxes,
etc.; pie-chart giving percent, di¬
tage of

versification

five-year

assets;

change in liquidating value; fiveyear price range, and other perti¬
nent facts and figures.
In the back of the booklet an

given

tabulation

interesting

Bell

Teletype—NY

tabulation

This

covers

fire

1-1248-49

riod.

This tabulation immediately

shows

the

importance

plow-

bacK to

liquidating value growth,
for' Fidelity
&
Guaranty Fire
again heads the list with an in¬
of

crease

while

44.1%

Franklin

Fire again foots the list with

2.9,%.

48.1%,
The
the

"pie

charts,"

diversification

each

company,

which
of

well

are

show
of

assets

securities

held

highest and ten lowest

The ten

fire group are

follows:

to 6.0%

Highest-

Fidelity

& Guaranty

Union

Firer_n—.-i

Co.

seven

companies
of 50%

No.

American Ins.

__'

Amer.__.

63.0%

Fire

Hanover

Baltimore

Home

Insurance.:.
Fire.——...

Insurance

North

River

—

Liberty

Republic

Insurance

—

;

centage
©0.2%

—

....

—

group

are:

and

17.1%

10.

ranges

New

first

company

is composed en¬
casualty-surety
comthe second group of

group

fire-marine

around $100 billion.

The estimate

most

companies.

with

the

fully objective.

forced

swing in

York

New

the

group

conservative

den

and

Let

26, Bishopsgate,
London, E. C.

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

■

con¬

Capital—_£4,000,000
£2,000,000
Capital—,..

Paid-Up
Reserve
The

Fund—

conducts
every
description
banking and exchange business

Trusteeships

by-pass this
assuming

£2,200,000

Bank

and

going to attain

also undertaken

high

the peak in 1936

and 1937,

optimism is, therefore, warranted
for this

The

highest

fire
per¬

Alto¬

ognition to the presence of

extremely difficult condi¬
Mr. Livings¬

post-war level of income and let
grant that market

tentatively

eventual

period.
In the
meantime, what about the inter¬

val

the end of the

turned out the

ment of full

1946, we only
physical vol¬
in the year 1940*

same

of goods as

ume

which year, incidentally, exceeded
1937 ancf 1929 in physical output,
then

have

would

around

will

that

Briefly,

ment

country.

speaking,
sumably,

depression?, Again, when
the

governmental

look

post-war

budget, estimated at from $20 to

$30

biliion

again

by the experts, we
the need for a relatively

see

While

have

intention

quarreling
with
any
of
these
highei4 figures but, on the other
hand,' am willing to tentatively ac-±
cept the $110 billion figure, at
I

least

should

raise

It is this: Are

question.

one

not

immediate
first, to de¬
are

now.

entered on a rearma¬
boom, economically

war

mid-1940 and,

There

cite

connection,

of
signs that

are

Let

it is running out.

pre¬

the top

now

are

such boom.

in this

me,

important

some

statistical series that have leveled
off

high post-war income.

post-war production?

where

million people

unemployed in this
This would mean a great

and the attain¬

period, it is necessary,

production,

ployment,
wholesale

commodity

corporate

futures,

profits, and consumers income as
as expenditures.
That is an

well

going at the matter somewhat like
the
Georgia
mountaineer
who

the

In the

of this

course

war

having

market,

stock

hound

dog.

county

his
ad in the

namely,

asset,

one

He put

offering the dog for
Several days afterwards a

$15.

paper

from

man

town

called

him,

to the

political regulatory

ing in 1942. This advancing trend
was
in recognition
of the war

itself, plus

cesses.

flea-bitten animal asleep under a
tree. The man was a little bit up¬

under way

the

dog's

he went ahead.

but
First, he asked if
appearance

the dog was healthy.

The

moun¬

taineer replied, "Healthiest in the

county." The
was

man

asked if the dog

good hunter.

taineer'

The

"None

said,

moun¬

better

Georgia." He then asked about the
pedigree.
it

The mountaineer said

one

was

of the finest in the

na¬

tion.

The stranger, realizing

against a stiff combina¬
looked at the mountaineer

was

tion,
and

that

finally said, "Can he climb

our

military suc¬

The advance has now been

finding the mountaineer and his

set

ris¬

war's early days, commenced

boom

for well over two years.

period the Dow-Jones in¬
30 leading and
industrial stocks has

In this

dustrial average of

diversified

This in¬
the
movement, however, for the rea¬
advanced by over
does

dex

that

son

not

60%.

reflect

fully

activity

has

been

par¬

ticularly pronounced in those is¬
sues

termination

the

war

too

seem

remote

deflation of
in

will

eventuality,

Government

order.

say,

degree would

seem

spending

have to be cut back from,
$100 billion to around $25 to

$20 billion, the last stages of such
being after the war with

cutback

Japan has been concluded.
both in

power,

the

military

require

spells

war

Man¬

industries and

establishments,

demobilization,

increasing

will

which

unemployment.

representative

controls, witnessed during the war

period

and, therefore, important
price readjustments must be wit¬
Plant and inventory

nessed.

liqui¬

dation will be necessary. There is
the question of the solvency,.of
some

exigencies of war plus the rather
low state of Allied fortunes in the

only

With

against Germany, which does not

called secondary contractors, since
their inventory positions and pay¬

justed

could

rec¬

busi¬

read¬

badly and, after casting about as
it could, be secured,

full

boom.

ness

boom

to how

find

accorded

would

occurred during the insistent type
of buying, along with regulatory

found that he needed

money

have

market

railway traffic, em¬
manufacturers inven¬
Federal spending,
prices,
farm
prices,

important and significant list.

some

stock

Price distortions have necessarily

deficit

tories,

the

include

These

declined.

gether,

between

intervene
war

In examining this more
termine

Executorships

seem

Office:

Uganda

ground

are

and

Subscribed

however,

us,

Government

Colony

Branches

the high
production plateau to which the
war has temporarily driven us.

that

certainty but,

shall

immediately

debatable

belief

economic orbit.

questions whether
tinue

Head

the

Kenya

Swe¬

Europe, for that matter,
our

Bankers

the American

study

is not far out of line with that of
of

of INDIA. LIMITED

someone

outlook because, to a degree,

Schram

they

recently remarked, he is neither
a Democrat nor a Republican.
He

generally accepted is $110
billion, which estimate equals or

of our mar¬

particularly the

groups,

so-

rolls have both been built up to a

point where
loss,

wipe

substantial drain

any

because

of them, might
working capital.
It is

out

difficult to

the individual

see

entering

sumer

any

con¬

strong
various

buying
movement
for
goods while the unemployment

spiral is running its

course.

The stock market discounts im-

j portant events in orderly
From

1938-39

the

sequence.
peak levels to

early 1942 the market adjusted to
war

in Europe and this country's

eventual

and

entrance

From

cline.

until

even

price

de¬

1942 until mid-1943,
the present

occa¬

producers that have bene¬
most
fully,
earningswise,
from the war. Partially reflecting
this list is the Barron's average of
low-priced stocks which recently

sion, it has been in process of dis¬

point some 225% above
its 1942 low.
Under disguise of a

these levels, undertake a true dis¬

ginal

fited

reached

counting

the

war

boom

this

country, plus our improving mili¬

tary fortunes.

Is it logical to be¬

lieve

market

that

the

will',

from

centage is Jersey Insurance with

tree?"

Amsterdam Cas¬

45 4%., and the casualty
company
with the lowest is Pacific Indem¬

for

moderate

nity with 27.8%.

climb

Hnwly-moving Dow-Jones indusHal average, we have actually en¬

until it has first given attention to
the uncertainties and problems of

what I would term a con¬
triple bull market.
As to

the transition period from war to

high

Preferred Accident, shows

The

factual information

this

The mountaineer

$15."

tree

got to have

CTreat

second tabulation of interest

investors and dealers in insurance

gives the liquistock as of
31, 1943. compared with Dec.

future,

because I need that

study

booklet is very clearly and simply
oresented, and should prove of

helpfulness and interest to

thought

a minute, looked
up and said,
"Mister, that dog has just got to

that

see

hopeful

our
we

post-war
have just

high income and I

shall

develop

it.

stocks and to all students of their

significance

However, 1 can't help but repeat

investment

Dec.

it brings out the excellent invest¬

Thus, it leads

ment.

conclusion

that,

vesting

insnraone

1938, and shows the percent,
increase during the five-year pe31,

characteristics.

While

calibre of the stocks of the

fHeir

marked

very

thus is of great aid in the problem

*Mackubin, Legg & Co.

versification

policy,

selection,

also

brings

out

joyed
cealed

swing in the, for once,

price-earnings relationships, even
the
Pow-Jooes figures are not
bad.

one

when

in¬

stocks,

di¬

even

risk

Dow-Jones

call for
decline from 1943,

differences.' industrial average, which

to the inevitable

sound

this
«•£

10%

average. «t
pr/Mi-'i
1^0.

its recent price
was

selling

17. .times earn ings, a
level not far from that attained at
a

counting of the generally assumed
favorable

peace, as

post-war buying

ments
prove

boom

just discussed, and until

it has readjusted to such

On the basis of present earn¬

ings estimates for the

dating value of each

because

from

operating income.
and

second

negative plow-back of—39.3%,
e.
dividends
exceeded
net
A

the

oanies

ualty to a low of 54.3% for Amer¬
ican
Casualty, while one com¬
pany,

tirely

casualty group the per¬

for

51.0%.

2.1

12.5

—

—...

17.4

16.5

Fire

the

In the first group are:

the

23.1

■■

15%.

8.2

27.5

:26.4

—

——

National

Average

secur¬

9.8

—

Hampshire

Franklin

of total assets rep¬

Government

Fire, 14.3%; Merchants
Fire, 13.4%; Continental Insur¬
ance, 13.1%; Insurance of North
America, 11.1%; St. Paul Fire &
Marine,
9.1%;
Fidelity-Phenix,
8.6%, and Great American, 6.0%.
Tt is interesting to observe that

27.9 %

Insurance——

Amer,

Hankers & Shippers

Westchester

Camden

Lowest

Ten

57.0

54.7

—

which -have

Accident, 59.9%; Amer¬
Reinsurance,
54.9%;
Em¬
ployers' Group, 54.4%; Aetna Cas¬
ualty, 53.2%; U. S. Guarantee,
53.2%; Fidelity & Deposit, 51.9%,
and U. S. Fidelity & Guaranty,

55.4

—.

are

ican

56.8

1
—,

companies

Standard

61.5

Average of 10—

New

than

58.8

___

investment

the

ities, while, at the other end of the
list are seven companies with less

66.7

—

Fireman's Fund

Security Ins.

69.3

<fe

Paul F.

Ins.

71.8

——

Ins.

Automobile
St.

,—

—

Hartford Fire
Nat.

77.6 %

—

Insurance

Firemen's

the

of total assets. There

resented
Ten

all

excess

in the

companies
as

from 59.9% of total assets

ranges

group.

developed by the
Motors
Corporation, of

General

worth

clearly the great difference in in¬

41.0% com¬
pared with 62.6% for the casualty portfolios
averages

that

interest

ton's study, for instance, indicated

Manager Trading Department)

vestment

group

responsible estimate I have

was

tions in this country.

policy
which - exists
and 20 casualty com¬
panies. It is of interest to know among the companies. For exam¬
ple, the percentage of Government
that the percent, plow-back of the
fire

seen

NATIONAL BANK

Professor Myrdai's

originate.

are

suffer

5, N. Y.

income. studying, for they bring out

companies

views

The

that if, in the year

(L. A. Gibbs,

Glyn Mills & Co.

poten¬

that, unless
some relatively high level of na¬
tional income is attained, we shall

The average gain for 41 fire com¬
shows the aggregate fiveoperating income of each panies is 17.8%, while for the 20
casualty companies the average is
company, compared with aggre¬

aggregate net operating

lowest

rather,

which

$125 billion.

not based upon any

year

gate dividends paid during the
period and the resulting five-year
plow-back; the latter is expressed
in dollars and also as a percentage

Some Government

At this point, however, I should

NEW YORK

Ltd.

tialities, he seriously asked from

like to say that these estimates are

Exchange

Stock

export

Bank,

time lift in the national income is

$145 billion.

and

Telephone: BArclay 7-3500

1943

analysis

review;

torical

-operations; chart showing percen-

York

New

Members

and

Deacon's

whence this unprecedented peace¬

economists say

Mr.

Laird, Bissell & Meeds

known.

domestic

our

Associated Banks:

Williams

After reviewing

some

emanating from

Stock Exchange, Dr. Julius Hirsch,

Request

levels.

boom

Congressional Committees

Liv¬

Mr.

owes

ASSETS

£115,681,681

achieve stabilization

economy can

npt national income as-high

the

Sept. 30, 1944

The companies cov¬
include prac¬
tically all of the old-line leaders,
and
a
few
of the smaller and
companies."

TOTAL

peaks of earlier
years and made the observation
that it is yet historically to be

economists in Washington.

ered in this survey

lesser

City

Bank Stocks

the results of opera¬
number of insurance

-concerning
tions

New York

Burlington Gardens, W, 1
64 New Bond Street, W. I

lower

fraternity

vote of thanks, we have

Smithfield, E. C. I

Charing Cross, S.W. I

pointed out our hopes of well
$100 billion against our sub¬

interesting and informative 96-page booklet has
icome to the writer's desk entitled "Review of Operations of 38 FireMarine Insurance Companies and 18 Casualty-Surety Insurance Com¬

8 West
49

over

stantially

OFFICES;

Bishopsgale, E, C. 2

demonstrated that any capitalistic

had figures

extremely

LONDON

earlier

porting

only of which I have touched, and
for which the entire industry re¬

By E. A. VAN DEUSEN

throughout Scotland

statement

ingston

This Week—Insurance Stocks

OFFICE—Edinburgh

Branches

develop¬

of this transition period as

deflationary?

Under

the

circumstances, it would

seem

the stock market has

uncertain

period ahead,
the

when

maintenance

round- 16 to.,

buying

reserves

that

caution and
substantial

rather

than

bullish

attitude-

purchasing

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4324

.Volume 160

this po: a' someone may

in¬

terpose the thought that the stock

termination of
World
witnessed
only
minor irregularity of two or three
the
War
I,

market,

months, to be followed by a' fur¬
ther large

advance carrying some
ten to eleven months. This is quite
before

but

true

postulate an

analogy between the movement of
stock

following this war
the earlier war, let

prices

and following

examine the economic and po¬

backgrounds existing

litical

dur-

Differ¬
ing each of these wars.
ences will be found of major cali; ber:

(1) Whereas price control was
not exerted following World War
I, there is every evidence that it
will be continued in the period
immediately following the end of
this war.
It was the immediate
»inflation

prices, based upon a

for

uncontrolled -scramble

inventories, following World War

I, that abetted the immediate post¬
war business recovery and the in¬
flationary movement in the stock

1919.

market culminating in late

and

manufacture

wartime

Forces

Armed

the

and

con¬

only to a relatively minor

degree

had

(labor)

manpower

verted

com¬

pared with the heavy conversion
in this war.
Thus, the readjust¬

pitness

the emergence of three dominant
— the
United States, the
Empire, and Russia. The

powers

British

over the reorgani¬
Europe and the Near
(with its immense oil de¬

problems

war

zation

East

ahead what

might be termed

period can be factually ap¬
praised, it would seem a time
when fairly substantial cash or
buying

reserves

might be held for

office

during

lack

the

dorsed

negotiations under way, might be
disconcerting.
Between 1932 and 1942
nessed

ing

point for

years.

international

adjusted downward

in the ab¬

Jones

or,

of such readjustment,

when

sence

sufficiently probed
by the investment community.
In
summary,
we
know that
there are certain forces present
that, under favorable conditions,
can
create
a
fairly
substantial

ditions of the transition period are

yet,

business

These
for

period

this

country.

the banked-up

are

durable

consumers

combination

demand
goods, in

with

the

large

war

is fairly

that the

assured

con¬

sufficiently present to have thor¬

oughly

the

tested

market

struc¬

ture.

While

currrent

eral' opinion

Roosevelt

and

gen¬

indicate

still

Mr.

and

stocks.

"They

might
be
suggested
that
Dewey's election, should it

Mr.
take

wit¬

average,

now

for other leading
P.
Morgan said,

Over

fluctuate."

place, would improve investment
psychology and might even con¬

points

Additionally, there
of

tribute

the

cyclical

buying

the entire

of, the American people.
are the needs

savings

war-torn

and
a

construction

and

These

other
rehabilita¬

Europe

parts of the world of
needs require

nature,

considerable

American goods if we are
to

the

advance

lieve

be called

may

grounds

credit

shall do

might make

one

be¬

On these

yet.

willing

and

Fort Knox

so.

case

for the holding of a portion of

mon

war

that it will be in the present

stocks

market

such

plish

the

level that

favorable

should

accom¬

However,

boom.

com¬

investment

sound

awaiting

rating,

the

temporary

some

the
market.
Mr.
Dewey's election, however, would
not cancel out the problem^ of
transition.
Furthermore, for a
in.

strength

two-month

following Mr.

period

The

1932

defeat, in

velt in

and

the

Over

shallow

credit inflation from

operations on the
policy plane might come to a
standstill very much as we wit¬
nessed in the period between Mr.
Hoover's

every

decline; the deepest, after an 89%
decline.
Even during the great
we

accession

out

period, 1897 to 1942, the
of
these
buying
points came after a 15% market

Dewey's election, should it occur,
we must not overlook the fact that

governmental

averaging

three and one-third years.
most

witnessed,
market,

tions, has
over

under

now

two years

the

even

stated,

1924 to 1929

after

of advance, a

years

about

two

16% decline.
boom

condi¬

been advancing for

without decline of

minimum

I feel

marine

insurance

casualty-surety insurance com¬
panies. The review covers result ?

Each individual company report

contains
the

circular chart showing

diversification of
year- end
1943.
Also shown is the percentage of
percentage

assets

the

Government
net

bonds

liabilities,. and

and

each

the

companies.

had, despite huge govern¬

lion

The

percent of "plow back" to
operating
income
is
also
shown—one of the most impor¬
.

net

tant

of all growth

factors.

Copies of this interesting and
unique review may be had from
Mackubin, Legg & Co., upon re¬
quest.

proportions

should

see some¬

erect,- without

thing of the transition period be¬ adjustment,
The Government in' fore assuming that we are going' the nresent

reconversion

post-war

solicitation of

or as a

circumstances to he construed

offer to buy,

any

and

nfjv issue

problem, as
increase in produc¬

recovery

docs the great

tivity

buy,

This magnifies
immediate

unemployed.

the

This announcement is under

years' dur¬
8 to 10 mil¬

ation to the contrary,

some

offering of these securities for sale,

apex.

or as an

offer to

of such securities. The offering is made only by the Offering Circular.

■'

$23,735,000

War

the increase resulting

War I.'

The

(4) During the period emerging
out
of
World War I,
business
from this war

emerges
a

Pittsburgh, Cincinnati, Chicago and

Business
with (a)

elastic.

relatively

was

St. Louis Railroad

rigid wage level, based upon or¬

ganized labor's increased author¬

governmental

and

ity

trols

well

before, the

Dated October

dating

arid,/; interventions,

from

hamper and impede, the
full play of private in¬
itiative, and (c) a substantial part
of the
industrial plant Govern¬

The

and

'A.

ment owned.

•

•;

In the

shock,
as
bashd upon the magnitude of
the industry and labor readjust¬
ment to peace, of World War I's

Due October 1, 1975

organized under the general laws of Pennsylvania.

To be

guaranteed unconditionally by endorsement as to principal, interest and sinking fund payments
by The Pennsylvania Railroad Company, all as to be provided in Guaranty Agreement to be

the economy found

market

stock

•

;

opinion of Counsel for the Company, the Series "E" Bonds will be legal investments for savings
banks under the laws of the States of New York and California, and for savings
banks

No¬
vember, 1918. or over a period of
12 months, advanced but 22% and
was thus not subject to consider¬
able technical readjustment.
The
a

issue, sale and guaranty of the above bonds are subject to the approval of the Interstate Commerce
Commission.

(5) The relatively mild

termination

1, 1944

that

war,

greatly
free

Company

3%% General Mortgage, Series "E", Bonds

sanctions,

(b) with many governmental con¬

that had, to

dated October

1, 1944.

relatively greater shock, as previ¬
ously discussed, of World War
termination
find

stock

over

vulnerable

Price 102%

II's
will

economy

has
-30% and, hence, is

or more

years,

"•

this

•,

" J

•

Copies of the Offering Circular

that the
several-month market d e c 1 i n e
in

•.

'•

delivery

•'K\. A ••'"A

technical

material

readjustment, entirelv aside from
economic influences. Let me point
out,

plus accrued interest

from October 1, 1944 to date of

that, over a

market

period of two
advanced

the

connection,

may

are

obtainable from only such of the purchasers, including those named belowy

regularly offer these securities in compliance with the securities laws of any State.

World

coming

immediately with

War I's

ending, canceled 40% of
advance from the 1917

the

war

cyclical, or war depression, low
point.
A similar movement herd,
from the 1942 cyclical, or war de¬

its

by 23 points

15%

Eastman, Dillon & Co.

three

Tuly high of 150.
Internationally,

(6)

Drexel&Co.

Glore, Forgan & Co.

White, Weld & Co.

from

the

Kidder, Peabody & Co.
..

pression, low point would move
the Dow-Jones industrial average
down

Bear, Stearns & Co.

Hemphill, Noyes & Co.

Hornblower & Weeks

Wertheim & Co.

the United States, the

powers

—

British

Empire, and France—that

emerged
War

litical

While,
as

from

.dominant

subscribed
and
even

them

Hallgarten & Co.

World

similar

economic

Lair°nce M. Marks & Co.

po¬

ideologies.

friction

arose

October

11,1944.

•

to post-war settlements, it was

friction within an

area

where the

price

superstructure

;:V '

man-hour, incident to
II, as compared with
from World

per

World

as an

Another

interesting
item
is
the
net
operating income (after Federal
taxes) for the five-year period.

unemployment was unknown in
Prior to World War

mental efforts of eight

year-

premium reserve, thus showing at
a
glance the liquid position:'tu

this country.

II,

cash

the

end, which are the total liabilities*
less than equity in the unearned

office of Mr. Roose¬

1933.

companies and

dollars per share, as well as the
operating results percentagewise
to total operating income for each
of the companies.
•

Dow-

the

period

witnessed

Stock

Exchange, have prepared a "Re¬
view of Operations" of 38 fire-

iod, not only in dollars, but also

from 1897 to 1942, inclusive,

years

Mackubin, Legg & Company,
Light Street, Baltimore, Md.,

intervals

ranged

goes

members of the New York

buy-!j of operations for a five-year per¬

from 41 to
110, to 85, to 194, to 98, to 158, to
93;
General
Motors,
now
62,
ranged from 7 to 42, to 24, to 77,
to 25, to 56, to 28; International
Harvester, now 80, from 10 to 46,
to 23, to 120, to 48, to 71, to 40,

coming

elections,

this

150,

"Review Of Operations"
Of Marine & Casualty Cos*

two and one-half

industrial

the successful candi¬

the

date

polls

stocks at

every

around

attractive cyclical

prices have been re¬

relation¬

the

Such a period,
particularly were the war just
over
in
Europe and important
post-war
international
political

stocks

political

would
of

would not yet have

group

averaging

ships, is admittedly an imponder¬
able but I do not believe it has

period

attained to power.

subsequent purchasing of common
once

this

endorsement

American people whereas the en¬

posits) than existed in 1919.
This last factor, namely, post-war

was

Before World War I, mass

of these forces,

of this

diametrically opposed to those
There is thus the back¬

investment fund in selected

(3)

activation

ground for graver immediate post¬

are,

period from war to peace
not the problem in the earlier

occasion.

the

there lies immediately

of Russia.

political and economic ideologies
of the two Anglo-Saxon countries

ment

pending the presence of that eco¬
nomic
and
psychological back-,
ground which should contribute

hiatus period
when many problems of a serious
character will be presented for
solution and, until the exigencies

tion

(2) In the earlier war, industry

not at

were

World War II will

been,

mad,

broader fundamentals
issue.

should be in order.

1593

Putnam & Co.

re¬

•

THE COMMERCIAL & FINANCIAL CHRONICLE

1594

Thursday,- October 12,-1944

Investment Timing to the "Poten-r

tialities

Liquid
undoubtedly
going to hear a good deal more
about these liquid savings as time
goes on. What is more important,
of

Union Bond
Fund

they

world in

ficult

the

INCORPORATED

CHICAGO

JERSEY CITY * LOS ANGELES

which is

way

latest

this

be
a

extremely small. If we set up
shipbreaking industry, we can
this

handle

dif¬

now

(Continued from
sels all at once, the return would

that

manner

issue

National

When

wartime controls

are

re¬

sponsor

ling the

time essential

of cargo

fields

taxation, labor and

boom

cor¬

The avoidance

and

subsequent de¬
largely a matter of
preventing post-war inflation! If
pression
we

succeed in

jectives,
offer

achieving these ob¬

the

United

States

good market
products and will not
a

turbing

factor

for

will

foreign
dis¬

prove a

other

econ¬

omies."

Perhaps

consider our foreign
shipping problem too
earnestly. Perhaps so, but I dOubt
it, for it is one of the most im¬
portant questions we must settle

East Coast and the West Coast of

continued high wage

South

scales."

use

have

space

war¬

needs.

frozen

trade

into the

ships

now.

Shrinking Income
folder

new

extent

trade in which they are operating
This already applies to the

experienced management it
more than compensate for

should

considerable

Offerings

governmental policies in the

porate regulation.

dividend records. When combined

New

depend
upon

return.

with

Mutual Funds

1589)

page

high level of national income will

would bring about a much greater

discusses, the moved, ship owners will be able
rise in output per worker as an to return their
ships to normal
aid to post-war business.
"The peacetime operations.
The War
steadily increasing efficiency of Shipping Administration has al¬
labor augurs well for companies
ready started the removal of some
which have taken pride
in the of the restrictions that have been
consistency of their earnings and necessary as a means of control¬

Lord, Abbett & Go.
«

eco¬

and the

of America

to predict.

Notes

NEW YORK

are -

going to affect the

are

nomic future

Prospectus upon request

Billions

$130

Savings."

Manhattan

America

and

Australia.

Stocks, Inc., dated Sept. 30, Bond Fund
entitled, "Is Your In¬ We think it is going to save ton¬
1944, describes two new series of that Fund which will be offered vestment
Income
Shrinking?" nage, and we also think it puts
nationally as soon as they have been qualified for sale in the
presents a logical solution to the the5 steamship companies back in
various States,
These two new series are Diversified Investment
problem of diminishing invest¬ business again. We think that it
Fund, a "balanced" fund with investments spread over bonds, pre¬
ment return.
"Protective diversi¬ is going to cut out a lot of red
ferred stocks and common stocks, and Diversified Speculative Shares,
fication," that is, broad diversifi¬ tape of having to get permits, and
a common stock fund with invest-*®'
—
—
cation among bonds of less Than will enable' shippers to know just
ments spread over all main cate¬
: first investment quality, enables when ships are to sail.
The revised prospectus on New York

and

to meet the future with

are

will to go forward,;

could,

did

of old

men

find his past and lo

before."

Would that
of

one

"Looked

—

wise

our

behind

it had gone

—

■■.■■■

DuMont Laboratories

gories of

stocks.

common

investors

Gyroscopes and Diversification
Securities

American

North

(

applied

action of

the
in maintain¬

investments to

gyroscope

•

metaphor
spective note.

story of Group Securities,
Inc., is told in a strikingly at¬
tractive booklet mailed to dealers
last week by Distributors Group.
"In essence," writes the sponsor,
"it is a 'success' story—a story of
.

investment success!

"That is what

intelligent inves¬

looking for. Witness the
growth of Group Securities, Inc.,

Request

points

the

63 wall st.

unusual.

The

Fund

l.s

Corp.

records

progress which.has been made in
recapitalization of holding com¬
pany
units.
U ii i o n
Preferred
Stock Fund is designed and man¬
aged to permit investor participa¬
tion in these favorable develop¬
"The

Preferred

over-all

The

for

program 1

Fund

Stock

50% in bonds, 10% in income pre¬
stocks.
stocks
as

In¬

$10,000."
calls, for

The

bonds

categories

follows:

10%

in copimon

and

common

divided up
bonds,

are

reserve

20% low-priced bonds, 20% highreturn

COMMONWEALTH
INVESTMENT

bonds, 20% income com¬
stocks, 20% speculative com¬
mon
stocks.
By; dividing
the
$10,000 up among Keystone B-l,
B-3, B-4, K-l, S-2 and S-3 in
mon

the percentages stated,

COMPANY

tor

cA Mutual Investment Fund
★

Prospectus

Request

GENERAL

DISTRIBUTORS

NORTH AMERICAN SECURITIES CO.
Building

•

the inves¬
supervised port¬

containing 150 bonds, 50
preferred stocks and 80 common
stocks.. Such diversification of a

San Francisco 4

form

investment."

% Y

,;/-'

well

known

Annual

Report

Keystone
Stock

net

Fund

touches

every

Stocks

Series.

upon

request

Keystone
issue

Investor";

Research

revised

120
LOS

BROADWAY, NEW YORK, (5)
ANGELES, 634 S. Spring St.,

(14)

BOSTON, 10 Post Office Square (9)

CHICAGO, 208 So. La Salle St.

(4)

Pont

Cleveland

Co.; .The

Johnson,

Corp.;

Lane, Space & Co., Inc.; Robert C.
Jones & Co.; A.

M. Kidder & Co.;

the

world's

flow

address

"Some

of
American
Foreign
Policy," Winthrop: W:
Aldrich, Chairman of the Board
of The Chase National Bank, said;
"Unless

trade

tional

of internaT
reopened, cur¬

the channels
are

stabilization and foreign in¬
vestment will rest on an ephem¬

rency

eral

basis.
lulled

been

The world will have
into a false sense

shall

of stability;without

promote well being abroad
well as at home, the United

"To

Cook &

Co., and Straus Securities
to be received

Proceeds

duction

sale

and

by the

for the pro¬

be used

will

the sale of-these

from

company

television

transmitters and television receiv¬

ing sets when priority restrictions
are removed or modified.
These
will

also

funds

for

used

the

construction and .operation of tele¬

and

stations

broadcasting

vision
for

the development

and

expan¬

production facilities in the

sion of

field of electronics.

Upon completion of the present
financing, the outstanding capi¬
talization
of the company will

mortgages

1,046,040 shares of class
stock

common

$23,542

consist

payable;

class

560,000

and

common

stoc^.

All of the class B common stock is
owned

Paramount

Inc.

■

Pictures,

■

The, company is principally en¬
gaged in the development, manu¬
facture and sale of cathode ray
cathode ray oscillographs
electronic devices in¬

tubes,
and

other

cluding

radar equipment.

tically all

Prac¬
of the facilities of the

company are now

also has the

tember

Corporation

Francis

devotedio fill¬
responsibility ing war needs. - The company also
Lord, Abbett group of com¬
broadcasts :,without charge, tele¬
of achieving
a
reasonably high
panies; a revised portfolio folder
vision
programs
in - New York
on
Union Preferred Stock Fund. level of national income and of
City, in addition to other experi¬
Distributors Group,
Inc.— avoiding the excess of boom and,
consequence,, the - dangers of mental ' broadcasting work in New
A special month-end price com¬ in
York and New Jersey.- (Since, the
parison on Group Securities, Inc. depression/ The, attainment df a
company's war production has re¬

Corp.—The

Sep¬

"The

Keystone
revised edition of the

booklet, "The Keystone Plan";
Current

October.
folder
preme

folder

Hare's,

Court

the

of Items

Selected Investments
"These
Things Seemed Important."
Corp.

♦

Co.—The current issue of

for

Dividends

Ltd.—A

recent

decision
companies.

Street Sales
sue

Data

discussing

insurance

Management Associates, Boston, Mass

recent

shadow

Literature

folder for October, covering

National Securities &

st., boston

some

will and harmony.

good

States

Prospectuses

court

of. security.

Securities Series

one

is dynamic.

other

Securities
&
Co.; R. H. Johnson & Co.; Johns¬
ton, Lemon & Co.; Loewi & Co.;
Newburger
&
Hand;
Brooke,
Stokes &
Co.; Joseph Faroll &
Co.; Robinson, Miller & Co., Inc.;
Courts & Co.; W. H. Bell & Co.,
Inc.; Bioren & Co.; E. W. Clucas
& Co.;
Coburn & Middlebrook;
First

Economic

the

NATIONAL

built in six years

have ; the
sub¬
stance. We shall eventually real¬
$130 Billions
;
National Securities & Research
ize that the solution of our basic
National Securities & Research
Corp.—Letter No. 8 in the current
economic problems has
become
Corp. devotes the current issue of series on National Stock Series
infinitely more difficult.

/ >

authorized dealers,

was

Aspects

"K-l"

Fund

assets

mary

The PARKER CORPORATION

Preferred

Income

and Industrial

from

size

means

avoiding or mitigating catas¬
trophes,
equalizing
prices; and
providing for periods of want."

Lord, Abbett—A Composite Sum¬

be obtained

a mer¬

the

Inc.; First

Co.,

Company.

Mutual

may

with

The
time
is fast approaching
"People will endeavor to fore¬
when we must make momentous
future, and to make agree¬
decisions. Our maritime future is
ments according to their prophecy.
in the balance. We have the means
Speculation of this kind by com¬
of making that future secure. That
petent men is the self-adjustment
is our opportunity.: Our obligation
of society to
the probable.
Its
is to use our power wisely. \

todian Funds.

Prospectus

times

cast the

earlier,

Keystone Cus¬

four

of Chicago; Hayden, Stone

MacColl, Fraser & Co.; Newhard,

the medium of mutual investment

the

The circumstances of

provided

bloodstream

funds such

"Magna Charta" in the

of ten.

parent

Mr; Justice Holmes

Here is what

Bradford &

Corp.; J. C.

the surface. Withheld,
it can cause untold damage.
But
directed and controlled properly
and with justice, it can be ; the

■

speculation," is quoted in
timely issue of National Notes.

value

Ames,

part of the world and goes farther
into nations' economies than is ap¬

Supreme Court opinion on "in¬

under¬

are

Co.

Shipping

The late Mr. Justice Holmes,

said:'

syndicate

son

mission.

formed
a

the

members

er¬

the

contemplated when the long range
program was formulated in \ the
early days of the Maritime Com¬

■4

Informed Speculation

Other

writing

made between the previ¬
and 1936.
We have the

fleet

instead

reports total
$11,706,920 for the
fiscal year ended Aug. 31, 1944,
compared with $6,757,216 a year

$10,000 investment would be ut¬
terly impossible except through

★

2500 Rim

acquires

folio

characteristics

sounder

even

Key¬

Balanced

Program

ferred stocks and 40%

objectives and composition

Union

outlines : "A

notes

vestment

with

bond

single

•

that

\yith these

actual

average

Laboratories, Inc., was
10 by a banking group
headed by Van Alstyne, Noel &
Co. and Kobbe, Gearhart & Com¬
pany, Inc.
The stock is priced to
the public at $7,375 per- share. '

Co.; Cohu & Torrey; H. L. Emer¬

have

chant

Ownership

92V2% for 9 years or more.
issue

■:

of 48 different issues

paid annual dividends with¬
interruption for 30 years or

Another" recent

■

we
war

war

return

investment

would be attractive.

32% of these 40 stocks

DuMont

curities

maritime

investment characteristics

these

stock of Allen B.

na¬

Act of 1936.

the current offering

on
,

225,000

made Oct.

na¬

We shall not pursue a pol¬

We shall riot repeat

rors

true

price. '

sensitive

common

Emerich & Co., Inc.; Adamex Se¬

ous

price of 74V2,
for appreciation
to its par value.

5.2%;

"An

1.08 times

present

are

rights of other maritime

tion.

room

34%

nation

monopoly

class A

We are, however, insistent
we
shall remain a maritime

;

analyzes ; the
the 40 com¬

more—55% for 16 years or more;

compared with

1937.

the

Per Share
Offering

icy that is detrimental to them.

earnings 2.32 times in

seek

trade.

tions.

over

Interest requirements cov¬

leaving

stocks

Fund S-2.

the

years ago.

Uninterrupted Dividends
Keystone

issuance

since

ments

1943

has

world

;

Continuous interest pay-

dividend

(•

repeat something I have

not

backlog of sound, income-produc¬
ing preferred stocks, but primary
emphasis has been on capital ap¬
preciation."

out

Let

Commission

are

commerce.

does

ered

proved
position
of the public
utility industry, emphasizing the

de¬

used

time

have

possible, so that it may
in
handling peacetime

Here is the com¬

new york 5, n. y.

•

current issue of Abstracts the im¬

ments.

soon

said many times before. The Mari¬

currently held in the
Keystone Income Common Stock

out in

use

character¬

investment

single bond.
posite picture:

DISTRIBUTORS

mon

Lord, Abbett

the

literature

Shares;

restore

want

they would be if averaged

from

Public Utility Pref erreds

letter

Offered At

existing

be removed, they

shipping facilities to normal
in

current
Bond

of the

any

can

be.

istics of the 48 bonds in the port¬

are

$16,500,000 to $33,500,000 in
the past 12 months."

will

folio

GROUP, Incorporated

Story

The

tors

Prospectus

investors
will strike a re¬

/'•

•

experienced

this

Success

scribes the

ing- ships and planes on an even
keel.

Group Securities, Inc.

fast

restrictions

Group,

General

A Class of

Bond

Distributors

accompanying

stabilizing force of diversification
as

enjoy higher income

A Composite

general distributors of Common¬
wealth Investment Co., likens the

'As

| without assuming undue risks.

Railroad Stock

Co.,

Su¬

Knickerbocker Fund

A regu¬

affecting, lar dividend of 8 cents and an
Broad extra dividend of 8 cents payable

Corp.—A current is¬

Nov.

20, 1944, to stock

National Investors Oct. 31.

of record

normal

its

field,

substantial-problem of reconver¬
sion is anticipated.
Net

sales

the

the fiscal year
—

...

mained

;

company

for

ended Jan.- 2, 1944,

amounted to $4,648,346, compared
with

fiscal
ended

in the .previous
For-the 28 weeks

$2,172,824
year.

July

16.

1944.

amounted to $4,056,435.

net

sales

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4324

160

adopted

Unity In Foreign Tiade Policy

for the

trade which have the

(Continued from first page)
in

reflects the interdependence
of international trade interests.
ance

crimes

against humanity and
countries deprived pf any

enemy,

cartellization
practices
promotion of their export

support and
encouragement of their govern¬
ments and which have operated
the

disadvantage

great

American export trade. The Coun¬

expectations of power to prepare for another war. cil
was largely responsible for the
I
use
the
word
an early, end of the war may not
"prepare" ad¬
enactment of the Webb-Pomerene
he fulfilled, hut on the threshold visedly, for the great mistake in
Law, which
freed
ouri export
Of military victory immediate con¬ the past was in permitting Hitler
trade from the restrictions of the
structive planning is indispensable to organize a Five-Year Plan for
Sherman Act and placed our ex¬
to the winning of an economic making war on the most colossal
porters in, a stronger competitive
victory and the building on the scale in the history of the world.
position in markets controlled by
ruins of Fascist totalitarianism of There must be complete and rig¬
foreign combinations. We cannot
stable and lasting foundations of orous enforcement of disarmament
deny the sovereign rights of other
cooperative world trade relations. in both Axis countries, in addition countries to.
permit, or even re¬
In governmental and business cir¬ to such changes in national boun¬
Over-sanguine

daries and curtailment of war in¬

cles there is

growing assurance of
successful planning for the solu¬
tion of the post-war reconstruc¬
tion problem.
The intergovern¬
mental conversations conducted by
our Government. through the past
^year; the addresses and
made

this

leadership
of
Mr.
Thomas 'J. Watson, Mr. Winthrop
W. Aldrich, and Mr. Clark H.
Minor,

the formulation of

international

effective

and

valuable contributions
sound

are

toward

History will judge
the policy we

eco¬

the

tice; especially with relation to its

which will
affect the future peace and pros¬

perity of the world.
The suggested reduction of the
enemy
countries
to
economies
resting primarily on agriculture,
ignores the fact that neither coun¬
try could support its population on
an agricultural basis.
The remedy
'is one of effective control, not rid¬
of

dance,

there

year

jus¬

economic implications,

During

beyond

pursue

the limits of cold, relentless

nomic policies.

German and Japanese

industrialism. We cannot hope to
speed the expansion of the world

were

three conferences of national

with respect

■to

proposals

the

and

or¬

by destroying industrial

ganizations representing industry,
banking, .agriculture, labor and
other interests, for the discussion

segments of that economy, which

This ex¬
change of views has revealed a

arations.

economy

are

essential, if put to work, for

of restoration and

purposes

of post-war problems.

rep¬

There must also be ab¬

solute control of their.competitive

large area of agreement.

| Of \vorld-wide interest will be

dominate world markets

'power to

by the" devious methods of the
November 10 to 18 inclusive, past, both in their export and imof delegates from over 30 coun¬ .port trade.
Expansion of our foreign trade
tries. This conference is sponsored
the International Business Confer¬
ence,

by the American Section of the
International Chamber of Com¬

is essential to the solution of

in the effort to bring leading busi¬
nessmen

reconciliation of dif¬ ^aviation;' for

long-term task is

questions of mutual concern.
The presence of hundreds of
delegates from so many countries,
despite the difficulties of travel,

nation

ness
,

to close quarters with

come

to come, the
of extermi¬

fyears

ferences and substantial accord on

the; anxiety prevailing in
international industry; and busi¬

vidual economic conditions.,
is it

likely that

cartels,

persuade

can

these other countries

Nor

to abandon

particularly in the post¬

war "transition period.
Congress,
therefore, should remove any un¬

certainty

of the law

to the interpretation
applied to American

international business agreements.
You will be interested in hearing
this subject discussed

by Mr. John
White, President of the West-

Electric

inghouse

International
Company, at the Second General

Session, tomorrow, morning.
The future of Lend-Lease has

business operations.

The accepted
principle that Government exists
for the formulation of policy and
its administration the encourage¬
ment of

private enterprise and the
removal of obstacles in its path,
has deep roots in American tradi¬
tion.
A

direct

bearing
on
trade. Lend-Lease is

Government's foreign trade pro¬
activities.
The integra¬

motion
tion

measure

the

Far

the

war

emergency

ends in Europe and

East.

the

should

handling

purchases that can not be trans¬
through regular trade chan¬

acted

Its extension to Allied

tries

should

tion,
the

take

Article

war

implementation

Aid

Mutual

the

aid,
of

been

urged

by previous conventions as a most

undertaking for the re¬
covery and protection of our in¬

necessary

ternational
The

trade

after

coordination

both

one

the

war.

foreign trader and tend, to avoid
the overlapping and duplication
inherent in a system hallowed only
by age and tradition.
We

have

also

the creation of

long

advocated

Inter-American

Board of Trade.

unity

amongst

the

tion years is essential to the crea¬
tion of an orderly world "economy.
High productivity in the Ameri¬
can

domestic economy, augmented

based
will

foreign

increased

trade
generous concessions" in
for
genuine reciprocity,

return

much

maintain

promote

international

and

coopera¬

tion.

growing indus¬

trialization of the world calls for

countries

the

ined from this

fluence

business

point of view.
Government

both

and

the need
private en¬
terprise, recognition must be made
of wartime changes that indicate
the possible prolongation or per¬
manency of Government controls
agreed

are

upon

for the restoration of
.

spirit of Fascist militarism.

Among the questions to be con¬

sidered at this Convention is the
of
the
reciprocal trade

future

Have our
people learned the • lesson of the
agreements

program.

;

post-war problems.

certain

directions.

strengthen the

case

will

for early

re¬

CINCINNATI,

OHIO—John

most favorable in¬

the

expansion-of

dency and George W. Beiser from
vice-presidency in The Weil,

Roth & Irving Co., Dixie Termi¬
nal Building, it is announced by
the firm.
Mr. Roth, one of the
founders

of Weil, Roth & Co.,
predecessors of the present firm,
in 1901, felt it advisable to retire
from business because of advanc¬

ing

although he will be at

years,

the firm's offices for

Mr.

Beiser

has

company

since

rest

and

short time.

1902;

era

must be based

unity of for¬

sition

period,

rebuilding

the

shattered domestic economies will

Trade

Agreements
expires next year.

of tariff

when it

Act,

This method

bargaining is

tried, and

effective mechanism for the pro¬
motion of

plans

for his personal interests.

Harry

R.
for

company

President.

Niehoff,
40

with

the
becomes

years,

Stanley G. McKie and

Erwin J. Moster, who have been

associated

and

Mr.

with

the

firm

icy.

act is

tion of

offer to

not

permit of any rigidity of pol¬

buy

If the signatories to the Mu¬
adhere strictly
to Article 7 of that accord as ap¬

Vice-Presidents.

one
of the
originators of the North Carolina
Municipal Council and has been a

director for many years.
also

served

the.

He has

board

plicable to long-term international
trade policy, flexibility will be
needed for short-term; modifica¬
tions 'to meet

pressing and excep¬

tional circumstances.

visory

Council for the last 10
Mr, McKie was a member
of the House of Representatives

years.

has

and

served

for three terms.

Chairman

was

Committee and also
of

man

and

Senator

the
a

Banking

Vice-Chair¬

the Taxation Committee,
of the Insurance

member

Finance

and

State

In the Senate he

Committee.

Chicago; he has been

Cincinnati

the

office

for

: in

Convention

the

reflects
time

■

the firm belief that it is high
to get down

The firm, which is a member of
the

Cincinnati

will

continue

Stock
its

Exchange,

offices, in

log-rolling
tariff-making;

continue its

policy of originating

and

distributing municipal issues

and

certain corporate

bonds and

investment trust shares.

our

Attractive Investment
Trust Company of New York of¬

American

fers

foreign

trade interests

post-war problems. These are
times of decision that test the

The

Public National Bank and

attractive investment, ac¬

cording to

memorandum

the

;

Convention

blueprint of

the

will

provide a
of na¬

pattern

tional policy.

this

may

request.

of record only and is not, and is under

circumstances to
or a solicita¬

of such Stock. The offering is made only by the Prospectus.

to brass tacks and to

unmistakably

fusion

ships.

way

on,

to future trade relation¬

has

impressed 27

agreement

I. would like to refer briefly

to!

the fair¬

Class A Common Stock

The initiative taken by the

American business stands
difficult riers,

preparedness for the
years ahead.
of the hazards

Allen B. DuMont Laboratories, Inc.

United States ;iri 1934, towards the
removal of excessive trade bar¬

where

some

unilateral reductions
of
tariffs and other, trade barriers by
other countries in the present con¬

countries

practical value of

ing system

Price $7,375 per share

wi th

the

tariff-mak¬

our

Copies of the Prospectus may be obtained from the undersigned.

of improv¬

as a means

of international trade.
The ing and stabilizing mutual trade
of inter-, relations.

solution of the problem

political security, vitally
to economic recovery
world trade expansion; will

national

important
and to

be hammered out on the

discussion
ence.

time

the

Peace

anvil of

Confer¬

this
safeguard the economic

The Allies must not fail
to

Consideration, many feel, should
given to the creation of an
International Economic
Council

which

would act in

promise

most

wavs

enabling

of the de¬
feated Axis countries is of great

their standard of living.

importance to the future of world
peace and trade.
Stern justice
must be meted out to all involved

given

The future economy

and

all-

countries

wartime

rise

topic
much

Other

Incorporated

Cohu&Torrey
Newburger & Hano

has

which
is

countries

R. H. Johnson & Co.

raise

controversy

misunderstanding

cartels.

Kobbe, Gearhart & Company

that

effective

peace.

Alstyne, Noel & Co.

advisory

capacity and tieln in the develop¬
ment of world trade in

Van

th^t

have

October 10,1944

the

interesting memorandum
be had from the firm upon

225,000 Shares

It would be:highly optimistic to

clearly

; -

Sept. 30th, 1944 statement of the
fiber of the American nation.
It bank, which is being distributed
is our hope that bur deliberations by C, E. Unterberg & Company, 61
here and the final Declaration of' Broadway, New York City. Copies

uni¬

method

the

Dixie Terminal Building, and will

It is difficult to exaggerate the
importance of this Convention, as
an
interpreter of the views of

any

dis¬

contentious,

lateral,

define

and

with .the

pense

the

past 15 years.

offering of this Class A Common Stock for sale

encouraging indication of

Mr.

Moster for eight years represented

expect

intense interest taken this

The
year

Muncipal Ad¬

our.

national. determination

will

Niehoff ; was

for

respectively,

years,

continue

export trade.

advertisement appears
an

opportunity to care

foreign trade. The
bi
partisan-.-.majority
approval
given to the 1943 extension of the

tual Aid Agreement

this

be construed to be

the

with

been

eign trade policy, ,.;
In the immediate post-war tran¬

Roth has resigned from the presi¬

.the firm in

Our stake in the

Lease procedure be closely exam¬
'

From Weil, Roth Go.

trustees of the Ohio

United Nations in the reconstruc¬

will exercise

While

Roth, Reiser Retire

autonomous

departments and agencies through
a central body,
under the juris¬
diction of the Department of State,
would prove most helpful to the

coun¬

considera¬

direct

aside, from
effective

into

Government has

re¬

only of

nels.

foreign trade agencies of

that must be discontinued

when the

stricted

Continued

foreign

our

question of paramount impor¬

tance is the reconstruction of the

It is depressing repercussions of the lease. of
private enterprise from
earnestly hoped that the American tariff philosophy of 1930?
Have permanent controls, and shorten
proposals will have. the united they unequivocably accepted the their duration in other
countries,
support of industry and trade, and principle
of
trade
concessions if, instead of reiterating the wellOf agricultural and labor organi¬ adopted by us in 1934?
Congress
zations Jq the United States., pur should be impressed with the nec¬
leadership in the reconstruction essity of renewing" the Reciprocal
common,

between Government and private

best

exports and imports, shipping and

gether for exchange of views and,

reflects

Added to effective control of their

of the United Nations to¬

if possible,

by
necessary to their indi¬

1395

line of demarcation to be drawn

Agreement. It should not be used constructive policies in relation to
employment
problem.
to meet civilian needs of a country our capital investments in foreign
markets always have
that can be met through private enterprises and judicious loans for
been those of highly industrial¬
projects.
The great ad¬
trade channels. It is essential that sound
ized nations. > Both enejtfy count,
vances in American technique and
we. resume, as rapidly as circum¬
tries are lacking strategic mate¬
:skill in production has been dem¬
stances permit, the normal chan¬
rials necessary for. war purposes.
nels of distribution and that Lend- onstrated on many battlefields and

Council,

Foreign Trade

our

considered

phrase, "freedom of private
enterprise," we seek to define the
worn

post-war

Our

the Chamber of Commerce
of the U. S., the National Associa¬
tion
of "Manufacturers, and the

merce,

National

combinations

strategic imports as
them
the United Nations may determine.-

convention,

culminating in its Final Declara¬
tion; the work of the Committee
on International Economic Policy,
under

dustries

quire, their nationals to enter in¬

Joseph Faroll & Co.

FINANCIAL CHRONICLE

THE COMMERCIAL &

1596

Thursday, October 12, 1944
will

offer, subject:

Problems Of Reconversion

':'t

"f'l

Price

this

been

enormous

in production which has
possible the enormous in¬
crease in our fighting power since
Pearl Harbor. Our Navy now has
combat

has

Incorporated

BRUCE WILLIAMS

vessels

ment.

Its

one

F. Hepburn, the most

Mr. Mitchell

colorful personality in Can¬

the fast unfolding

public life, makes a dramatic reappearance on

adian

political scene. The various conjectures of the past two years, that
the former Ontario Liberal Premier would join the Progressive Con¬

link up with the C. C. F. to form a coalition
King's Liberal government, are set to naught.

servatives, that he would
defeat Mackenzie

of po-

This shrewd appraiser

clearly the
implication of recent events —
that the divided abortive leader¬
litical prcspects sees

led
the

Dominion.

C. C.

of the

tanks

heralded in this country
beginning • of a Canadian
revolution or at the least a violent

the

A. E. AMES & CO.

slashing attacks on

plicitly1 buries the hatchet in his
feud with Dominion Premier Mac¬

King by the announcement
"holds no issue with the
Government in Ottawa."

that, he

further

Mr. Hep¬

statement

pledges himself to take his

burn

place "in the ranks of reform Lib¬
eralism to rally the forward-look¬
ing people of Ontario against the
new Tory menace, whether it be
in

Provincial

the

Federal

field."
i

coming Federal elections. What¬
ever hopes were held by the C.
C.

the

ii servatives

Progressive

Gen¬

Liberal

upset the

| Government, must now bq
| rudely shattered. Mr. Hepburn
will

prove

himself

more a

once

/powerful factor in Canadian pol-

i itics

and

| prospects

| to

the

underlying firm tone remained
unchanged;. There !was, however,
a decided recovery in Alberta is¬
sues,
which development belied
the pessimistic reports concerning
a

satisfactory

Liberal

the

whereas

previously appeared

be not unfavorable, they are
positively bright.

now

the past week, market
Activity was at a low ebb although
if: During
it

settlement

the

provincial debt problem.

free

exchange rate although firm
at
10%
discount
was
plainly
marking time pending definite de¬
velopments. High-grade Canadian
showed

creasing

evidence

attention

and

in¬

Consoli¬

dated

Mining and Smelting fur¬
improved to 51%. As already
mentioned,, this company has ex¬

ther

cellent

post-war

It is

prospects.

the world's

largest and lowest cost
supplier of lead and possibly in a
similar position in the production
of

zinc, and

these

metals

the
in

ore-reserves

this

steadily diminishing.

country

of
are

In addition

tion

and

despite

the

But

mercury,

gold,

silver,

tungsten and cadmium, this com¬
pany has recently become an im¬
portant producer of sulphuric acid

■'Taylor, Deale

Company

64 WALL STREET, NEW YORK 5 >"»•

WHitehall 3-1874

have

shut off. American
met the problem and
1944

it.

V-E

will

"; "

Day the lumber situa¬

fared

higher than

maintained

collar

workers

•

and

small fixed incomes
less well during the

the only way to help
them is to continue; to hold the
line against inflation.
In April.
was

known

what

issued

President

the

1943,

the Hold the Line

Order,

Subsequently, I issued a
directive
supplementing
that
order.
The present Director of

actions

there

in several

Stabilization

for

demand
In

private construction.

in the armed services, what

limit

production
they return home? We must

when

view
from

as a

not

the

war

mobilization

task

for

reconversion

back but to go for¬

ward.
As

not

task of demobilization

The

i
of

result

♦

Corporate

of inflation are passed.
not preserve a stable

all

ruin

post-war deflation will
plans for post-war pros-

But

the

of neither our.

success

were, even

though there

and fertilizers.

fewer

are

Also after the

war

new

gold properties in the Yeldistrict

the

North

likely to

re¬

surprisingly high dividends.

With
ket

are

regard

prospects,

approach the
period,

the

to general

the

new

less

mar¬

nearer

Victory Loan
likelihood is

there for any variation from the

present quiet steady pattern.

requests

war

of the

survey

government

agencies

reports

from

come

some represen¬

tatives of business.

Many are still
hope at this stage
dispense with many of

essential but I
we

can

them.-.

•'

■

Many of us have changed our
thinking. We have accomplished
what
seemed
impossible
two
short years ago. In the past I was
certain a democracy could func¬
tion

in peace-time but doubted
that it could successfully function
in war-time.

Today, we must meet
challenge to prove that our
democracy can function as well
the

for

readjustment

when

production

•

of peace

purposes

poses

V-E

for

Day

problems

will

for

present

many

solution.

our

You

press can arouse the
thoughtful people among us who
can help
in the solution.
When on V-E Day the War De¬
partment reduces its requirements

40% because thereafter there will
be

war

only

front,

one

that
longer

seriously affect our
economy. The procurement agen¬
cies are taking steps to promptly
contractors,

remove

government property from their
plants, and thus hasten the re¬
sumption of civilian production,
Advanced notice is being given
to contractors and the contractors
be

required to communicate
employees.

that notice to

there

should

corresponding

reduction in the munitions of

produce

furnish

lease

through

and
to

tions will now

tion

time

war

lend-

Allies.

our

The

of the problem

is ap¬
parent when you realize that our
lend-lease
expenditures for
all
purposes for the first six months
of this year amounted to $5,794,-'
000,000.
The problem, however,
involves not only dollars, but the
extent to which

and

our

Allies

should

change from war produc¬
to civilian production,
and

tion
what

respective contributions
against Japan should
This can be determined only
our

the

be.

war

by the heads of governments.
I look ahead to V-J Day which
reconversion

from

the

view

will

present

point of
serious

problems than V-E Day. Here are
a

few,

We have

Pearl

lem.

had

necessarily the most
a shipping prob-.

not

critical.

Harbor

Day

ocean-going
merchant
fleet of 1,100 ships of approxi¬
mately 10,000,000 deadweight tons.
Today with over 4,000 ocean-going
merchant Type .vessels having a
tonnage; of 'approximately
42,-.
an

000.000, our fleet is four times as
large.
At

the

ocean-borne

world

of the

outbreak

the

1939

war

commerce

carried in 9,200

was

ships with a total tonnage of 72,-

Today

000,000.
is

than

tonnage alone

our

one-half

the

com¬

bined tonnage of the world
the

prior

Our

tonnage is four
times that of Germany and Japan.
to

war.

the

past much of the world
was
transported
by
like Great Britain

commerce

nations

other
and

where ships were
operated for less than
The service they rendered

Norway,

and

carrying our goods made it pos¬
for them to pay for goods
us.
Their
to the sea.

from,,

purchased
will

return

Produc¬
Executive Committee.
From
to time meetings of various

office —1 that of the

agencies will be held so that the
reconversion plans of an agency

tships
*

At the present rate

struction,

of ship con¬
post-war sur¬

large

plus of world shipping seems in¬
evitable, With our huge stake in
shipping, shall we watch this sur¬
plus result in international cut¬
throat
competition or shall we
Darticipate in an orderly interna-:
tional procedure for adjusting the
world supply of ships to the world
demand for ocean transportation?
Industry should now agree uoon
a

policy and submit that policy
government.
And what about air transporta¬

tion?

Before the

domestic airlines

Armv

and

all of

war
were

cancella¬
350. transport planes.
be cleared through

All information about

one

must then be determined whether

sible

it shall
continued merely to fur¬

will

Gov¬

the

needed for the war effort*

with

pur¬

war.

ernment alone cannot solve them.;

ours.

problems

when V-E Day comes.

settle

civilian

the

for reports from business. In
many
instances the requests for these

will eliminate

bilization program
the

and better clothed than they ever

our

with

I have asked the Director of the

Budget to make

built

necessarily

possible, consistent
prosecution of
against Japan. V

all-out

production program nor our sta¬

Congress has properly said
;

successful

our

economy,

population.
There has been rationing, but our
people, as a whole, are better fed

turn

Municipal

the dangers

mobilization, nedrly half of our not be
production is now going for nish business to a'n employer or
war
purposes.
Despite our ex¬ jobs to employees. The overnight
traordinary war effort, we have reduction of 40% in the require¬
avoided any real suffering on the ments of the War Department will

West Territories

Government '♦ Provincial ♦

powerful while we are fighting a
war.
But, on the whole, the line
has been held and Government
should continue to hold it- until

total

•

canadian securities

groups

our

after

but

war

peace.

task

our

simply

there

against
that are

been fought

the

light of our production
record, achieved while eleven mil¬
lion of our youngest and strongest
men,
physically, and mentally,
were

have

attacks

the

lumber and build¬

agencies.

agencies will be lifted

seriousness

white

Economic

using

are

still be tight but

will

lowknife

81%

but

war,

in
•

this

The

this company's extensive interests
-

was

people with

ing materials to take care of the

part

1943

1941, and current estimates are

earnings have increased 36,4%,

of farm machin¬

were

will be enough

to the production of other metals
such

;

■

The net income of farm¬

approximately a million tons of
Byrnes'
Hold
the Line
Order.
rubber, four-fifths of which is be¬
ing turned Out by .our great syn¬ Well, I am proud of it. My only
thetic rubber plants.
;
>
.V regret is that its provisions were
not written -into the law which
In 1939 we were using 36 mil¬
was enacted before I took charge.
lion tons of steel. In 1944 we are
The Office of Economic Stabil¬
using 65 million tons of steel.
ization, the Office of Price Ad-!
In 1939 we were producing 28
ministration, and the War Labor
billion feet of lumber. In 1944 we Board have done a wonderful job
are
producing 36 billion feet of trying to hold that!line. Here and
lumber., Recent surveys indicate there it has been bent. Rear guard
after

Little trading took place in in¬
ternal issues, and
the Canadian

stocks

This striking political development is the key to the forth¬

the

decisions has referred to it as the

Colonel Drew, declares his
intention to "oppose the new and

solved

NY-l-1045

RECTOR 2-7231

tario,

Liberal

N. Y.

the Progres¬

dangerous form of Toryism in On¬
tario" and at the same time im¬

there

war

shortage

was.

industry
NEW YORK 5,

the

food

supply

TWO WALL STREET

sive Conservative Premier of On¬

kenzie

which

INCORPORATED

has

1, 1941, the average
weekly earnings of salary and
wage
earners
have
increased
51.3%
and' the average hourly

rubber,

countries.

recent

program
farmer nor

the

1944.

using 592,000
practically all of
imported from foreign
Almost over night our

1939,

tons

stabilization

neither

that

food than in 1939.

farmers, by long hours
will produce in 1944 30%

our

of work,

just as wage con¬
continue* and the rela¬

stabilized,

The

worker.

movement of labor from the farms

ery,

has

qual¬
difficulty in getting

some

must

hurt

75,000

of war.

weapon

and the shortage

tive and 24% C. C. FA

Hepburn,

famine.

food

CANADIAN STOCKS

talk

' there

continue

must
y

much ammu¬

course

deterioration

Since Jan,

beginning

was

;

trol

all the rest of the world

Food

Here again Mr.
Hepburn looks through the fog
and sees the waning influence of
this movement. Perhaps his vision
was
aided by the recent Gallup
poll which shows that, whereas in
September, 1943, Canadian polit¬
ical opinion favored the C. C. F.
with a percentage of 29%, against
28% Liberal, and 28% Conserva¬
tive, the poll as of September,
1944, indicates! £6% in favor of
the Liberal party, 27% Conserva¬

and

year

some

ers

produce

level.

tionship between wages and prices

combined.

swing to the left?

Mr.

nition

CORPORATION

able

are

held at the

have been

rents

must

million.

than

MUNICIPAL

the

Thus

-v;

widely
as

our

than seven and one-half
million, and the forces in all of
the armed services now number

PROVINCIAL

flattering successes
F. which have been

What of the

Food

priced items, and these facts
are
not reflected in any index.
But who can be happy feeling that
he is not foregoing anything when
the heroes of Bataan are still pris¬
oners of the Japs?
While we are prosecuting the
war
against Japan, price control

personnel of the Army has
J more
than five-fold
since Pearl Harbor, now number¬
ing

Jan.

low

increased

GOVERNMENT

control.

as it did during the last
According to the Bureau of
Labor Statistics, the cost of living

ity and

The

CANADIAN BONDS

colorless

popular imagination) has
to retrogression throughout

the

increase

price

1942

100,000 per annum.

had

have

been

production is larger than the
combined production of all other
countries, and is three times the
combined production of our en¬
emies. To achieve this plane pro¬
we

the supply makes

other

war.

ities

70 fold.:

virtues nor
Colonel Brew and his provin¬
cial isolationism able to capture
solid,

strong
either

production of aluminum five-fold,
and our production of magnesium

Party
neither John Bracken and

(with

•

ration

the

1941 has risen only
prices have risen
only 40.8%, and in most commun¬

Our

duction

ship of the Conservative
his

■:

soon

25.3%.

producing planes

we are

at the rate

from

items

possible.

since

equip¬

force

air

enemies.

our

Today

force

entire

the

radar

and

air

short supply,

rocketing

have been enormously
strengthened by ■ aircraft carriers,
escort

must

could not have pre¬
vented the cost of living from sky¬

sive powers

Canadian Securities

remove

Its offensive and defen¬

planes,

Without it

It has almost seven times as many

Toronto & Montreal

the

at least five-fold.

increased

been

times

Day

rationing

are

the

Its fighting strength has

tonnage.

New York 5

one-half

and

two

it then had.

ships

V-E

commodities
but it
policy of the Government

which

list

than three times the number

continue

and fewer

wear

controls of the War Pro¬

Board; or thb War Man¬
Commission,
and
other
as quickly

eat.

after

Even

in¬

made

Wood, Gundy & Co.
Direct Private Wires to

,•

power

nylon stockings to

pro¬

crease

York or in Canada

99% and interest

14 Wall Street,

industrial

our

beefsteaks

has

in New

payable

interest

and

doubled

than

duction.

(Non-Callable)

Principal

(Continued from page 1580)

Bonds due April 15, 1948

2Va%
'

known

war

duction

■

Brunswick

Province of New

The

our

using only

Today

Navy have

thethan

12,000 transport planes.
After

planes
mercial

the
can

use.

war..

thousands

eon verted

have

of-

com-'

transport

'y Vf

Only through inscattered
over "the j fighting for.
world. We have trained personnel creased production,-increased em-

equipment '
<

with which we

develop an air

can

•transport system larger and-better
than any other
there will be

nation.

There

We know

tremendous

in-*

,traf¬

passenger

overseas

Again, there must be

by air.

fic

can

for America,

,unless America

her

does

peace.

shall nobly gain that

may

hope. If American cannot use her

able

powers
for
peace;
America and the whole world will

highest

lose that hope.

man

productive

•

Only by working together as a

people, can we achieve that
it is not a theory to be
•held, but a condition to- be met.
We must not allow fear of going
to work in the wrong way keep
united

hope,

going to work at all. We
provide the oppor¬

from

must and shall

for productive worK for
people.
There may be-one perfect the¬

tunity

all our

ory

by which this can be accom¬

But I doubt it. It
that we shall
our
goal more safely and
quickly if we approach it by
plished.

is far
reach

likely

many

Even economists are bet¬

avenues.

ter able to tell us

how things hap¬

after the event than before.
true economic theory of full

pen

The

not likely to be
employment has

employment

written until full

in fact been achieved.

America's technical equipment

and trained
greater than
before; America has the abil¬
capacity

America's

be helped in its effort to en¬
its own people to qnjoy. the

standard
and prudent

life that a
of their hu¬

use

material

and

en¬

resources

place in America
for economic defeatism.
We can
make America worthy of the men
is

and

who

women

highest ideals.

its

preserve
have the

materials

and

men

dwellings

slum

the

replace

homes,

We
to

with modern

town and in country

low-cost

fighting

are

conserve

our

soils, improve and diversify our
agriculture, and modernize our
transportation.
As we keep our soldiers fit for

fighting and' care for them when
they can no longer; fight/so after
the war we must'strengthen and

sacrifices

For" the

planes.

have

made

this

ask neither territory nor

war

the

and

ships

But

money.

the

through

surely

proposed international bank and
by other means, we will use uor
influence

the, standards

raise

the

and
strength of America must not be
used primarily for material gain.
But

great ./wealth

That Ts not the spirit of our peo¬

ple. To win this war we have
given the most precious of our
assets
the youth of our land.
We want to make certain that
.

—-

who

those

for

speak

the

days to come will use the wealth

of America to prevent

and power
the

mothers

from

nation

this

again suffering the anguish they
today endure, ,• ^/://.//''//•'// ',///'

Monetary Policy

Points To

Changes Which Would Put The Currency "In A More
Wholesome Condition'* And Aid In Treasury Financing.
The

Economists'-

which Prof.

Committee

National

Walter E.

Policy* of

Monetary

gold and silver within certain <$>——

Jones,
University
oi
Pittsburgh.
•
L. Kemmerer, University

Donald

of Illinois.
Edwin

W. Kemmerer,
University.

public interest."
3. Those provisions of the Gold

the

Reserve Act of 1934 which appar¬

ently give the President the power
to devalue our silver and subsid¬

the

William H.

Princeton

Kiekhofer, University

of Wisconsin.
Frederic

Lee,

working and fit for living. No
in America should be. denied
access
to these minimum stand¬

With C. A. Taggarf

Leonard,

Southern

University

California.

zine.
James D.

Magee, New York Uni¬

versity.

A. Wilfred

May, New Ybrk City.
Mark C. Mills, Indiana University.
Margaret G. Myers, Vassar Col¬
lege.
Melchior Palyi, Chicago, 111.
Frank Parker, University of Penn¬
sylvania.
Clyde W. Phelps, University, of

omists

Ayres,

Cleveland

Carlton

Neil Carothers,

dollar as fixed by the
that it may be further re4

Lehigh University;
Welling¬

William W. Cumberland,

present weight of

ton &

grains to 12.9 grains.
/
the full text of
recommendations, dated Oct.

Charles

Dice, The Ohio State
University.
«.'■
D. W. Ellsworth, E. W. Axe & Co.,

6, together with the names of the
signatories:
v

Inc.; Tarrytown, N. Y.
William D. Ennis, Stevens Insti¬
tute of Technology.
Fred R. Fairchild, Yale University.

its

duced-from
15 5/21

The following is
the

Considering the extensive pro¬
of financing confronting the

gram

States

United
fact

that

Charles

and the

treasury

such

Co., New York.

North

Tona-

is in the most wholesome
condition
which
circumstances

Clyde Olin Fisher, Wesleyan Uni¬

financing

can

currency

will

versity.

permit, we the undersigned

members

of the

Economists' Na¬

tional

Committee

Policy

recommend that

/'/:'

Monetary

the fol¬

ilton

'•/■" //.. r:

the

S. Tippetts, Mercersburg
Academy.
Alvin
S.
Tostlebe,
College
of
Wooster.

James

B. Trant, Louisiana
Umiversity.

Rufus

Sections 8 and

$ of the Gold
which give
Secretary of the Treasury and
President power to fix the

1934

University.
Nathaniel

L.' ' Garis,

Whitney, Procter &
Gamble Co., Cincinnati, Ohio.
Edward Wiest, University of Ken¬
tucky.

and

Max

Ivan

;

he is unable to work.
not blind

able

resources

this

terrible

war.

become associated with

the irreplace¬

using up in

are

not

un-

who
are giving their lives bravely and
gladly that we may have a better
world. But tragic as the loss of
of the precious youths

/ aware
,

human

life

may

be, our

country is so richly endowed and
so marvelously equipped that only
the lack of vision stands in the
way
next

of our handing down to the
generation a heritage of even

greater promise than our
bequeathed to us.

fathers

powerful nation
have responsibilities not only
ourselves but to the whole

rich

world.

and

do not maintain em¬

ployment and prosperity at home,
we will not be able to do our part
to maintain employment and pros¬

perity abroad.,
Relief

should

required and
extended
to
those

will

the

Mid

•>

Continent

Airlines,

peace-loving countries whose eco¬
nomic life has been shattered by
war, but no world settlement that
provides only a place on the relief
rolls to nations willing to work
for their livelihood as well as to
I fight. for freedom will be ade¬

them.

This announcement is neither an

formerly manager

New York Uni¬

according to circulars just issued
by J. F. Reilly & Co., Ill Broad¬

.■..//■/YHastings, Yale .Uni¬

way; New York City.
Copies of
these interesting releases may be
had from the firm upon

request.-

trading

Clarke

Charles Otis Dead
Otis, publisher of the
Banker"

"American
Bond

his

Buyer," died

Summer

the

(An Indiana Corporation)

,<,

;

•

Common Stock

Banker" it

"American

($1 Par Value)

is learned that Mr. Otis was asso¬

with

ciated

the

all his life.

ness

the

"Boston

later

Co.

"The

Bond

the

and Dore-

1913

Since

Buyer"

and,

"American Banker."

Vice-President

and

Copies of the Prospectus

may

First

mouth

National

which

be obtained from such of the undersigned as are registered

dealers in securities in this state.

since

was

Director

Brailsford & Co.

Link, Gorman & Co.

Sliillinglaw, Crowder & Co., Inc.

Sills, Minton & Company, Inc.

his

Bank

Baker, Simonds & Co.

*ATED
INCORPORATED

the

per

has

Publisher

and

1918, President and Publisher of
the

Offering Price $5

and

Journal"

President

been

Bureau"

president, of

became

Street

busi¬

He started with

News

"Wall
mus

newspaper

Yar¬

grandfather

and endur¬ founded in 1825.
ing peace. That is not the sort of
He was born at Yarmouth
freedom from want that the free
and
peace-loving
nations are Mass., on Aug. 19, 1872.

Yarmouth

quate to ensure a just

Sept. 30 at

home

Electronic Laboratories, Inc.

;"The

and

solicitation of offers to buy, any of this

150,000 Shares

He was 72 years old.

Port, Mass.
From

nor a

for

department

Co. V--L:,/

Charles

offer to sell,

The offering is made only by the Prospectus

\ stock.

Port,

Straus Securities Company
October 10, 1944

)

Na¬

tional Airlines, and Northrop Air¬
craft offers attractive possibilities,

versity.

Tyson, Jourdan & Co., Inez Prior
thereto he was with W. Vaughan

be, and great as

loss of resources may

our

Mr. Nash was

Wright, Brooklyn College/

Uni-

Vanderbilt

Winkler, College of the City

New/ York

versity.
Hudson

Interesting Air Situations

Lewis H. Haney,

buying and selling price of gold at
any
point the Secretary "may

Tucker, Westfield, N. J.

Weisman, Western Reserve

of New York.

Institute

versity.

Russell

State

F...'Eraser, ,Swarthmore
College.

Roy

York

versity.

Hcb^rt/

New

Charles

...University.

back) Law of May 12, 1933.
of

'<■/■.

Fitzgerald, University

Major B. Foster, Alexander Ham¬

1. The Thomas Inflation (green¬

Act

Shively,

Walter E. Spahr, New York Uni¬

of Texas.

lowing monetary laws be promptly

repealed:

;

J. Anderson

' /

"Sun."

Wales-

Fichtner,

Corp.,
wanda, N. Y.
,
Strippit

be
undertaken best when the nation's

the

PHILADELPHIA. PA.—The in¬

Calhoun, University of

Cincinnati.

gold

law

Reserve

& Co.

Wilbur P.

authority to change the value of
the

University.

College.

000, and under the Gold Reserve
Act of 1934 the President has the

too vestment firm of Charles A. Tagyoung to work or too old to work;
gart &- Co., 1500 Walnut Street,
or because through no fault of his
announce
that John E. Nash has
own

Philipp H. Lohman, Time Maga¬

living because he is

ards .of

University

Illinois.

the

contention

The

are

petition (among
such prominent " econ¬

terest."
whom

advantageous

in¬

most

public

advantageous
signers

*——

deem

limits, whenever the Secretary of
the Treasury "may deem it most
the

Holdsworth, Univers¬
ity of Miami.

Montfort

Spahr of New York University is Executive

Secretary, has sponsored a petition to Congress signed by 58 of its
members/urging the prompt repeal of the Thomas Inflation Law of
May 12, 1933, and the elimination from the Gold Reserve Act of 1934
of Sections 8 and 9 that give the President power to fix the prices

Nash Associated

one

Cincinnati.
John Thorn

expand our social security system
to make and keep our citizens fit
; for

Committee

Southern

Hauhart,

...

living throughout the world,
promoting the economic produc¬
ever
tivity and welfare of the people
ity to maintain a much higher and thus providing markets for
standard of life than ever before. our surplus goods.
There

National

Methodist University.
/
Frederick C. Hicks, University oi

General
Leonard
P. iary coins to the same extent that
of
the he devalued the gold dollar.
Vice-President
Trust
Signed:
Co.; Professor
title them to have. We must co¬
Eugene E. Agger, Superintendent Eugene E. Agger, Rutgers Uni¬
operate with other nations so that of
versity.
Banking and Insurance of New
every people by a fair exchange
Jersey; Dr. Benjamin H, Beckhart, Benjamin M. Anderson, University
of
the
products of their labor Professor of
of California at Los Angeles.
Banking, Columbia
should be helped to acquire the
Western
University, and Economist of the Charles C. Arbuthnot,
Chattanooga.
/ ,
products of labor of other coun¬ Chase National
Reserve University.
Bank, and Dr. Ed~
Chester A. Phillips, State Univers¬
tries required for their health and
win
W.
Kemmerer,
Professor Leonard P. Ayres, The Cleveland
ity of Iowa.
welfare. That is necessary to en¬
Trust Co. -//'. ;i
Emeritus of International Finance,
//.
Howard H. Preston, University of
sure full employment in our coun¬
Princeton University) is that the Benjamin H. Beckhart, Columbia
.Washington.
try and rising standards of living
University.
^
repeal of these provisions would
Leland Rex Robinson, 2 West 45th
here and throughout the world. . ;
place the extensive program of James Washington Bell, North¬
Street, New York. // ■
:■
We have the strongest Navy in
western University.
financing confronting the United
R. G/Rodkey, University of Mich¬
the world; an Army that is the States Treasury on a better basis. Ernest L. Bogart, New York Uni¬
igan.
;
'
equal of any in the world.
We
versity," /;
The Thomas Inflation Law per¬
/;//
Olin
Glenn
Saxon,
Yale Uni¬
have unlimited natural resources mits the President to issue un¬ Frederick
A.
Bradford, Lehigh
versity.
and unlimited capacity for pro¬ secured notes
University.
(greenbacks) to an
Joseph A. Schumpeter, Harvard
duction.
We have the gold, the amount not
exceeding $3,000,000,- J. Ray Cable, Missouri Valley
wise

skill to produce, are

Urge Repeal Of Sections Of
ionelary Law

lasting peace

for war, we

William

Esonomisis

ployment and increased trade can
freedom from want be achieved.

part to maintain world
We have learned that na-r
established
international
proce- tions, like individuals, cannot live
dure to regulate that air traffic. at peace except under the law,
And again, industry must agree and that nations, like individuals,
.upon
a
policy and government must cooperate to see that the law
must give fair and sympathetic is enforced and must be willing
to use force if need be to compel
consideration to its proposals.
America
,../■;'
today stands at the obedience to law.
/cross
roads.
This generation of
It is not, however,; enough to
Americans ' can
nobly; gain
or cooperate to put down aggression
meanly lose the hope of the world. and to settle boundary disputes*
/If America can use her productive We must cooperate with other na¬
powers for peace as she used them tions in order that each nation
in

crease

153.7

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4324

160

Volume

0. H. Wibbii

THE COMMERCIAL .& FINANCIAL CHRONICLE

1598

Thursday, October T 2,: 1944

most

A Look At Aircraft Investments
(Continued from first page)

completed airplane and because of dustry through private markets
that should really be called "air¬ alone would never have accel¬
frame" manufacturers. The weight erated, because the high cost of
empty of an airplane is the com¬ the product relegates it to com¬
mercial usage with a small bit of
plete airplane less fuel, crew, pas¬
the "yacht trade."
sengers, and cargo.
The airplane is expensive, not
Various definitions of airframe
only because it is produced in
have been used to determine a
small quantities but because the
base point for comparisons; the
product itself is a delicately bal¬
technical definition is unnecessary
anced instrument. Airplane toler¬
for the investor except that he
ances for sheet metal far exceed
should
realize
that,
generally
those of the automobile.
"Bump¬
speaking, an airframe is that por¬
ing to fit" may do the job but that
tion of a
complete airplane which

costs

man-hours.

low.

least 100

tinue orderly

largest

ment.

post-war reserves of only $35,000",-

pilots prefer to fly with at
hp.,, a considerable outlay
is indicated for power alone. Even
assuming that the cost per horse¬
power would drop to $4, a private
would sfill have the price
good used car tied up in his
engine.
a
',va-a

owner

manufacturer

has

;

of com¬

of aircraft
vary on
The assem¬
bly and installation time on a
small
plane
is
proportionately
higher because the workers have
since types
a wide area.

will cause the airplane to

poorly with
The
carry

fly

very

good chance for it

to crack up.

perfect
airplane
would
the greatest load at the fast¬

1941

the

A./

(Equal to all-cargo)

and

some

farsighted

firms,

$5,000 neighborhood.

AAA

.A- A' -,'A-A'' Manhours
::AA', 1
per pound
January, T943^AA^u,A~..l...,.;-1.54*
.

June,,' 1943,

airplanes

fly

pressurization.

January, 1944-—

-.99"

.69" A

MEDIUM BOMBER

speed at the lowest cost to its
By attempting known as cabin supercharging and
difficulty in the smaller areas of
to combine those qualities into One will be standard equipment on all
the airframe.
stratosphere type aircraft.
One
A method of comparison by vol¬ model, a designer would go mad
in. a week.
airplane company incorporating
V ;
ume may some day supersede the
Hence, every airplane built is a such, estimates that the installa¬
muddied weight basis. The value
compromise: A fighter plane sac¬ tion will cost close to $60,000.
of density comparisons is that the
rifices speed for greater load and
Reviewing these facts in light
working area of a closed structure
longer range; a bomber sacrifices of their relationship to profit is
directly affects the,assembly and
cost and speed for a greater load not
encouraging. Although the
installation hours
necessary
to
and
a
longer range; a private wish for one's own plane may be
complete.
plane sacrifices speed and load for high, the effective demand will
Airplanes Are Expensive!
cheaper cost. None, actually, can be lacking.
A small splurge by
Despite
all
the
starry-eyed sacrifice safety, and safety adds the better-fixed to replace older
man-hours to plane production.
models, with a limited market
dreamers,; the future;of aviation
Besides being expensive to as¬ from "Drive Yourself" groups, and
functioning solely on private en¬
semble and design, airplanes in¬ completed by a short rush from
terprise " has no Milky W ay of
prospective customers. The Com¬ corporate some pretty costly in¬ war pilots and enthusiasts;; will
panies that will present invest¬ stallations such as engines, instru¬ produce opportunities for specula¬
ment possibilities will be those ments, and radio.
All three are tive-minded buyers. When the. last
who very shortly deflate, experi¬ quite necessary.
A good engine group begin to lose their planes
in 1941 cost $7.75 per horsepower through repossessions and
huge
ment, investigate, and promote.
The growth of the aviation in¬ to the airframe companies. Sinceseryice bills, sales drops will fol-

TYPE

(Small transport)
lA—

1943

1.65"

June, 1943

•___>-

1.09"

.91"

January, 1944——•

''A'A." '

have

plates, jigs, and such—to fab- •

ricate

The

airframes.

do have

their

ones

they •

plants are
Government property. In the case
of a firm
desiring to continue
building a transport type airframe,
a serious handicap presents itself
unless the AAF will permit usage
while a purchase price is agreed
own

In the storerooms
1.41* A

____

A 1.97"

June,

January,"

;

1-98*

■

(Commercial

will

run

materials.

1.0.7"

....

January,11944__—.AA---"---—--85"t;
"Plus

sub-contracted

These

the

companies

actually

knew

the

amounts, and the Army agreed
were accurate,;
the - problem
would be simple.
that those amounts

man-hour figures

labor per

How much is there? To

of extrusion stored in Bin No. 79.
If

tSource—

A..-.A": 7 ''' > A;'."

W.P.D., A.A.F.

rect

parts.

of every plant
of raw

dollars

share? Progress payments on con¬
tracts do not specify so many feet

1.71"

__;

June, 1943

whom does it belong? How much
will
the
Army
charge for its

more)

January, 1943-

millions

stand

TRANSPORT TYPE

The troubles have only begun!

'•

(4-5 place private ship)

January, 1943—_—

of di¬
pound of airframe

are, from a period when the West
Coast branch of the industry was

Few, if any, actually know,
Then

there

the

;

matter

relatively efficient. Small changes work-in-process. Small assembled
were being made in the finished
parts are binned along the lines.
products and lines were producing Who owns what part of them?
"systematically." f It - is doubtful Does the Army want them and
that in. post-war times any one will it haul them away? Through
aircraft
company
producing ; in the tons of, records, the answer,
a
small lots will be able even to or at least
practical" answer,
meet these figures.
may be found, but this alone will
•A;''"'"-,-:'
Further, it must be shown that take a long time to settle.
these

man-hours

per

airframe

Who

do not include sub-con¬
tracted parts. To meet the sched¬
ules set by the AAF, a large per¬

pound

centage

the tqtal airframes
by
thousands
of
independent shops.
For

made

were

smaller

Dealing

Has

the

Market?

with the Armed Ser¬

vices is not

hard

most

com¬

panies would like you to believe.
The AAF has had all the money
it needed and has not .been really

toilgh except when production was
example, one fighter plane had behind schedule. Yes, there have
only 17 % of its weight fabricated been many arguments during "re¬
by its original designer. A good negotiations" about "true" costs of
figure to remember when judging detail parts, but since neither the
commercial
production
is
2.0 Army nor the contractor knew the
hours per pound minimum at the actual
costs, the arguments Were
100th airplane. Some intricate de¬
pointless.
Av... ■
Asigns will shove this higher but
But
commercial
airline
cus¬
it should not top 2.5 hours per
tomers, the biggest foreseeable
pound.
■
peacetime users, are not-likely to
warm to such a
haphazard atti¬
Those Conversion Problems
tude or method.
They will de¬
While production efficiency fig¬
mand
and
receive
competent
ures
inform, the investor of the
prices.
A
condition of the tools, machinery,
All this points to one thing:
and employee skill, it is only a There will be as radical a warportion of the total expenditures. to-peace change as there was
Aircraft overhead rates, based on from
peace-to-war. Until the ef¬
production
hours,
range
from ficiency of detail control develops
100% to 130% and these rates do within the airframe
companies,

NOTICE OF IMMEDIATE PAYMENT

Great Northern

Railway Company has irrevocably directed The First National
City of New York to publish appropriate notices calling for redemp¬
the bonds outstanding in the hands of the public of the following issues:

Bank of the
tion all of

concerns

upon.

FIGHTER

This is also

destination safely.

drill

Date—

January,

higher and
faster, additional installations of
a specialty nature
appear, such as
cabin

est

airframe

;

few

cannot be used as a basis

1943, for example; eight of the
airframe companies held

000, a figure less than the total
DPC holdings.
/

Using Known Figures for the
;
' Future

parison

quite likely that aircraft neatly provided for this by keep¬
companies will publish some sort ing their original plants free from
Good instruments of all types of; production figures of airframe DPC
equipment
and
facilities.
average more than $25 apiece, not poundage.
By
determining the On "C" Day (Cancellation), they
including necessary transmission number of direct man-hours for plan to move out everything they
lines.
Estimating
a
minimum the same period and dividing, a own from branch plants Jind set¬
of ten instruments per airplane fair yardstick of both production tle the details from their own
would amount to $250.
There are and management efficiency can be tower. Any of the desirable equip¬
many indicators that sell for hun¬ obtained. ; Compare your figures ment can be bought later. A
dreds of dollars and here only the with these:'■ a ;• ::'■.A7A'
/ But even those firms that do
basic ones were used.
retire to a fully owned physical
;
:
HEAVY BOMBER TYPE
;
plant still lack the tooling—dies,
Radios have come down since
a

Airplanes re¬
engineered,
will be able to supply two-way
quire high precision assembly jigs
fabricated, and assembled from
sets for quite reasonable prices:
machined to .001 tolerances. Even
raw materials,
rivets, bolts, tub¬
However, safety regulations will
a one degree variation in the angle
ing, brackets, etc.
of the wing mating to the fuselage require complete installations on
Units
of
airplanes produced
airliners and these still hover in
a

<■

■

Only the airlines will con¬
plans of replenish¬

Great Northern Railway Company

First and

Refunding Mortgage 4M % Gold Bonds, due July 1,1961
■

•

January 1,1945, at 105% of principal amount
•
plus accrued interest to said date

Great Northern Railway Company
General

Mortgage 4% Convertible Bonds, Series G and Series H
due July I, 1946
On

result from high production
efficiency. The average ! aircraft
company has 50-60 out of every
100 full-time employees shuffling

not

January 1, 1945, at 101% of principal amount
plus accrued interest to said date

papers

Management

Great Northern Railway Company
Collateral Trust
On

armed services

4% Bonds, due serially to January 1,1952

the

Eastern Railway Company
Northern Division First

Minnesota

Mortgage 4% Bonds, due April 1, 1948

Great Northern Railway Company

continue to be convertible in accordance with their terms into Preferred
Great Northern Railway Company until and including ^id

Stock/of
redemption date unless

Paul, Minnesota

October

By F. J. GAVIN, President

1944

for all

than

true

the

fact

that

remain

relatively

Forgetting for the moment pro¬
deficiencies,

duction and overhead

let

Before

view the market potential.
the
war
approximately

350 transport planes supplied the
domestic need.
Today, all these
same

one

airplanes could be built by

employing 10,000
production workers in less than a
half-year!
company

So that this picture may have
few bright; spots, let us "guess¬
timate" that the domestic airlines
a

....

above provided,
GREAT NORTHERN RAILWAY COMPANY

St.

answer

the

will

"cost-plus-a-fiked-fee" does not expand after the war to include
develop an economical way of 200 four-engined transports of
maintaining records^ and hurrying 95,000 pounds gross; 300 mediumsized ships of 28,000 pounds (3,000,
production.
:
Converting to peacetime mod¬ pounds heavier than the DC-3);
els and a peacetime production 500 interurban aircraft of 12,000
rate will bind the airframe/mdus- pounds gross; and 50 four-engined
try greater than any other save cargo carriers' of 125,000 pounds
the shipyards. Conversion for both gross.
The
total weight would
to
is not just the mere re-tooling and amount39,650,000* pounds.
re-arranging that other industries Since an : airframe, is normally
35%
of the gross weight,; that
face.
Fir(st, consider this feature— leaves 13,877,500 pounds for the
airframe manufacturers to .fabri¬
90% of all the facilities operated
cate;
are owned by the Defense Plant
In 1940, the seven West Coast
Corporation, Much of this equip¬
ment is integrated with company- companies
and
their
divisions
owned. Should the DPC allow it alone produced 12,006.100 pounds
to be sold for 10 cents on the dol¬ of completed airframes.* In 1940,

April 1, 1945, at 105% of principal amount r
plus accrued interest to said date

immediately obtain the full redemption price
thereof, including accrued interest to the specified redemption dates, by surrender¬
ing such bonds with all Unmatured appurtenant coupons to The First National Bank
of the City of New/ York at its office No. 2 Wall
Street, New- York 15, N, Y.
The above General Mortgage 4% Convertible
Bonds, Series G and Series H, will

given

non-producers

Holders of the above bonds may

paid prior thereto

has

but investors
have not been told the story. True,
there are thousands of parts for
every airplane.
True# there are
many reports and cost statistics
required to satisfy Government
price investigators. But what is

January 1,1945, at 104% of principal amount
plus accrued interest to said date

Assumed

while 40-50 buck rivets!

profits
meager.

a goodly portion of each firm's
would, be im-'
mediately" allocated. At the end

lar,
t

post-war reserve

"Source?
AAF. 1

Western

procurement • District,
|

•Volume

160

:•

the net profits of these same com¬

Motors

panies amounted to approximately

vive

$23,000,000, with three firms re¬
ceiving 87% of that amount.

...

stainless

foxy

steel railroad

Reveals Plan Of Federal

Bell

cars.

Control Over
(Continued from
certain

that

have

men

business.

knowledge of them.

never been so se¬
now
about the. post¬

"know-how"

was

liners."

big

may

rumored

that

•

Until

they

150 ton-mile rate,

one

are

Until
hinders

the

and

models

round out their

addition ' to

cover

stable

.and

wide service projects.; Acquisition into y34 /.brknehes,
of the Pacific Finance Corpora¬
(fromVon^

a
31

sands). arid;

very

yate plane field.; _

Martin

boats

still

■

banks

best

the

This is

?■

for

flying

on
•

.greater ^capacity //have
widely publicized/^ However^
the biggest commercial consumer
of flying, boats is/shying[ at .re¬
plenishing; hife fleet due: to, certain
operational disadvantages of this
eyep

been

almost

300

depart¬

noh aVunique' picture.

typical.

Four

years

It
of

ignorance does / nob generate,
good administration.'* f The shell

transportation. Reconversion plans
of the; "Mars" and /projected boats,

;

quite

American

will

tory or service t— will receive a
passport entitling him to travel
.

into certain areas of the world or
even

transit

through

British

territory until his application for
passport
has
been
presented
through Washington to the British
Board of Trade in London for the

the

intercepts

services

can

board

the

able

have

such

determine

what

would be

tan¬

the

world

the

Gov-

have

Russian Am-

this

seen

coming

directions.

The

people believe in it. Some of the
people in these agencies insist
upon it.
My thought today, and

desire in coming here at this
time, was to see whether the
people
in the export business
might not consider that this .was
my

the

time

for missionary work, to

done in the next few months;
or whether you consider and will
be

suddenly

make up your minds
export business is too
complicated- and that you don't
want to be in it and that you will
perhaps come to Washington and/
take a job which would be called"
a lifetime job.
that

the

Interest'g Semi-Speculative
Certain of the semi-speculative

all

quasi-governmen¬
tal control, which would result
in our Government itself having
the same general position in the
of

different

Government

policies of the corporation, and
tamount to

rest

fac¬

undertake

citizen—rep¬

the

corporation,

nor

able

American

3—"Censorship

cost

over-water

tors

Britain.

factories

will

labor

2—"No

from

help /you
£■■•y/Ly

little,

•

the

British'Board of Trade's approval.

company
divisions

ments sales volume will

announced intention
private
plane
sales
would indicate entry into the priai ding

Great

and

D. L. & W. leased line stocks of-,
fer

interesting situation, accord¬

ing to

discussion in the current

issue of "Railroad Securities Quo¬

tations," issued by B. W. Pizzini
&

Inc.,

Co.,

New"

Broadway,

ernment

monopolies of the other

countries —- Russia,
England,
France, Holland, and China —
would

been

long enough in
Washington as the assistant to Mr.
Jesse Jones, and sitting in his
stead

Copies of this release,

which also contains quotations on.

guaranteed

possess."

have

York City.

alternate

interde¬

partmental meetings, to know that
there is only one opportunity to

t o c k s,

underlying

mortgage railroad bonds, reorgan¬
ization

railroad

bonds,

minority

stocks, and guaranteed telegraph
stocks,

be had from

may

Pizzini & Co. upon request.

—-

foreign mail of Amer¬

ican' businesses and citizens—will

tion with the,
.

American

resentative

longer

ambitious world¬ expedient, .to break

with

nations of the Far East,

investigate management
efficiency/"; When it has become

they plan- other

doubt

agreements

officials sent
London, and

participate, for instance, in the
profits of foreign trade with India,
most of Africa, and with many

and departures;
planes can fly famr-.
Lockheed's
spectacular
"Con¬ ily-loaded and cheaply; until the
stellation" will" capture the ex¬ true cargo carrier appears, the
press
trunk
routes
of
length; airframe companies will not pro¬
Changes being proposed will make duce profit windfalls.
it more attractive to other opera¬
Second, look behind the front

tors,

to which I

made

toward Govern¬
the
corporation
in foreign

preferred stock.
The Government will purchase
the preferred stock of the cor¬
poration. By limiting the prof¬
its to be made by the private
interests running such a cor¬
poration, and through the ap¬
pointment of Government direc¬

industries—factory

—-

American

labor

Neither

arrivals

until private

been

for the export

.■//.':•L/-V
weather

have

commerce

1—"Certain consuming areas of
world have been 'reserved'

So far, none

sight.

These

step

control

common

the

bright

agreements

advisers, who

authorized to engage

British Government, These agree¬
ments are as follows:

not appear for some years.

Cargo carrying becomes

"As
ment

exact copy of

comment by one

President's

said:

The information

have been made by
from Washington to

long

three

have referred.

spot but not until an airplane is
designed that will make a profit

ready for, near
future tests. Certainly, with their
experience at building B-17's, and
B-29's, they will present formid¬
able competition.
a;

market

the

This is

the

has to be given out and I am go¬

ing to read now

1579)

with it.

Commerce my job is to give out
this information.

range,

pioneering ' two-engined
trans¬
ports and four-engined "Stratohave

sole

My thought is that since I am a
past official of the Department of

big load carrying, low cost
airplane is designed.
This plane

Boeing- has
Their

the

business¬

American

•

war.

torg;

Foreign Trade

page

for setting up in

program

from

the United States

speeding. helicopter develop¬
Before the War, one company, ment but design and operation
Douglas, dominated the domestic problems. will slow Its, wide ac¬
airline
market
with
Boeing, ceptance for some time.
Chance^ Vought, (Vought- Sikor'
Summary
■
sky), Lockheed, and Martin trail¬
By focusing a critical eye on the
ing. As it looks from here, there
will be little change in the line- landscape, several,prominent
up, except to add Convair into the points are brought into view..
First, forget all you have read
group, as a forceful competitor.
Douglas again leads the clomes- about thousands of airplanes blot¬
tice race with two airline types ting ; the sky.
Air travel, often is
and
one
interurban
type an¬ very fine, but the weather still
nounced to. date.
The
airlines controls the flight. Many business
have already subscribed to their men
fly only when absolutely
planned revisions
of the DC-4 necessary, and then only if a big
•
V
(C-54) and are curious about the savings is important.>
huge DC-7. Announced . abilities
Flying privately hurts the purse.
of the Douglas "Skybus" (to sell Some salesmen with large terri¬
at $80,000) have stirred the fixed- tories, the sports pilot,, and the
base operators looking for feeder week-end fair weather pilot will

cretive

1509
kill

a godfather will sur¬
washing machines or

come

FINANCIAL: CHRONICLE

THE COMMERCIAL &

Number 4324

'rriay; be .barcl .but the; yolk; is: roty
/tingZ -' Until! airframe; companies
/re-'iearntthe;yalue:6f

be regularly routed to His Ma¬
jesty's censors in Washington and

New York."

"Now I

going to give you
the highlights of a plan which ex¬
ists;. I

don't

will like it

know

whether

not. It is up to

you

the

people of this, country to decide,
each - man for

•likes /it;

himself, whether he
event, this is a

In'/ any

condiUbhof sma:ll;ffy;ihterio

fact:

piresiiwili; give 7ybu ^heiheada'che. /

V (1) The; present Administratioh

/..

;■

/ -i Third, iaircraft
production, does' has a plan under whicH a corpora¬
botlehditself/tomassjabricatioA tion, established by an agency of
the; United
States Government,
Withunskilledlabor' yUntil
'typ.ev
will summarily — when: the signal
planes- are- designed simpler,; he".,
Ne\vcomers Will Make It Hot :
is given,—- be issued a monopoly
-with.a v greater;number;of';their;
•directive' over all the
foreign
:
.These manufacturers along with
■

•

•compbneht/parts /I^entijcaiw^sim--

Qessna- 'and. Beech • possess/the/ iiar,/-your^jdiyidendMhllhrs;
know-how, the contacts, the pufc£ few,;
■;•;?//
f

(

licity and, best/of ail, thei public

confidence.

w
.

vrtth

United

States.

chase, at special discounts, prod¬
ucts of American factories—many

Fourth,- the ' troubles > attendant:

v..-1:>•:;'/ '•/

the

commerce

This Federal corporation will pur-

ycontrgct: terminations/
,of [ which must be produced ac¬
:' But :the:,othersj do rnot :planit0
disposal y Of ^government - owned
cording to this corporation's spec¬
leave' the ■ race before ' the; start.;
/e^ipmeht;;;fabilit|es|^ materials; ifications. and priorities—for ex¬
Look at the line-up of prospective ahdwork-in^processw
;.air-tranap<^>]producers;-asvkripwrfe'' attention .of/;most, executives/for, port;. and sale in foreign markets.
No private corporation or citizen
Cdp^li<iated''^vVirite?,|;J; Fairchild; /the;hexL|two;y
ip the .United States will be per• war

•

Republfc^ Northr^,

newcomers to

J'; coyer ing;| these'.

recent^.airtine.^
anxidus

child builds

Fair- ••Most
iicjpn^
single-engihed^ utiL Tell-kwo6py

ity transport and. has flown their
new cargo carrier.
Convair's long
experience with big ,airplanes and
their successes with the Liberators

yhiitted .to engage independently or

directly in! any export or import

stay;, in business

business. "

■

•

;

To this

Washington corporation,
rather than to private industries
tical and realistic ; in many ways,
throughout
the
United
States,
may be forced to do close account¬
must. go all, orders from foreign
ing to . satisfy the Government's
customers ior products made in
General Accounting Office.
; ;
costs money.

But the Army,

prac¬

helped -them design their Model 39.
American-factories or for services
Besides bidding for the air-trans¬
Fifth and last, is the ever-pres¬
to be rendered abroad by Amer¬
port
business,
a
recently
an¬
ent prospect :of mergers and bank¬
ican
citizens.
This
Washington
nounced, aircar for $2,100 will vie
ruptcies. ; It is not altogether out
in the
smaller class.
corporation will attempt to retain
Northrop of the way to
say that some may
the right of deciding which brand
says the "Black Widow" can lose
fall
soon
af t er
cancellations.
or trademark the foreign customer
its sting with the substitution of
Others who have good names but
must accept in lieu, when desired,
a
new' fuselage to carry passen¬
weak
structures are subject to
of any specified brand name. It
gers.
"' ' ■■•' '•
;
merger bait./'
Republic has announced nothing, ; Too many; companies each un¬ may also insist upon the manu¬
facture of products for export un¬
but their house advertisements in
dermining the other hurt sales, der new trademarks
or
brand
such magazines as "Time" are not raise
;costs," [and lower profits. names which will be the
property
a
bid for peacetime. Air Force
War-nourished
babies
have
a
of the United States Government.
trade.
Reports state that a four- tough time digesting lean
peace¬
Just before I left Washington I
engined airplane is about ready time food.
*
was able to see a comment which
to be flown. Curtiss-Wright's bad
Until the period of/'after earth¬
luck with the CW-20. (Army C-46
.had been sent to the President, at¬
Commando) will change since it quake settlings" is completed, you, tempting to answer the fact that
as an investor, may find yourself
this was too harsh a .plan and that
proved itself on the toughest air¬
with some Expensive wallpaper no American citizen
line route of all—over the top ob
would put up

tioufstream in the front yard

mountains at the back door'

• •

WHO'Splanning theis afuture—the
talking? Just boy and a
girl
inherent privilege of all Americans.
In this country you've always trav¬

the

world

from

India

the Burma Humn.
That' leaves

•

instead of

China,'

stock certificate.

••

Subtracting it all from even the
bright picture of a boom in air
transport aviation and mainte¬
nance of a 25,000 plane strong Air
Force leaves you well bound re¬
ports but no? checks.
[
»
,

North American,
Bell, Grumman, Brewster, ChanceVought, and others. The post-war
plans of the light plane makers
are
obvious.
They will go for
John Q. -Public. Since: they have
This novice, who, knows little
succeeded even in poor years with about the proper ratios, .<■ would
OarefuL management, theip outlook advise that; if you must hold, air¬
craft
may not be tod dark despite ob¬
shares; you should look to
vious difficulties that .are a part the
equipment companies first;
of luxury goods production.
United Aircraft, Bendix, CurtissNorth

,•

American

with

General

Electric, Westinghouse, Square ,D.
and
care

Cleveland-Pneumatic

donT

what airline buys what air¬

plane for their products will ride
along in any event.
And, then, if you feel you must
hold' airframe shares, bank on
those

who

will

sell. the

you

whatever you

staked
with

That's the American way

of life——

new

country

owners.

became land

Clerks,

than capital, left
employment to open cross¬

secure

roads

chose.

farms

out

and

courage

and become independ-;
Blacksmith shops

stores

merchants.

ent

the way

grew to

it to be.

tories achieved statehood.

the Founding Fathers meant
It's free enterprise!
Take the case of Solomon Juneau,

Byron Kilbourn, Alexander Mitchell
and thteir associates—pioneer Amer¬
icans with an enterprising idea. They
envisioned a railroad extending west¬
ward from Milwaukee to thfe Missis¬
sippi River. In the face of skepti¬
cism and hardships, they planned,

persevered, prevailed!
Built nearly a hundred

industries, and terri¬

That's how the American system
worked

yesterday—and will work
Men

tomorrow.

railroads,
or

tractors.

found

ideas
or

build

radios,

resources,

marts—and

constantly
opportunities for others.

new

open new

with

automobiles,
They tap new

It has

years ago,

this railroad became The Milwaukee

Road, eventually opening new terri¬
tory

great

clear to the Pacific Coast.

proved a good system. Let's
with it—except as we
must, temporarily, in achieving
Victory—lest we win the war and,
lose our liberty.
not

tamper

world's

airlines and who possess matured

management. Then,' and only then,
is the time for you to compare the

ratios;; the earnings
Wright, Pratt & Whitney, General and the surpluses.

wished, settled where
pleased and tried your hand at

eled where you

•

Sturdy pioneers—eastern tenant
farmers, and immigrants, too—

the

Milwaukee Road
SERVING

THE

SERVICES

AND YOU

statements

::v:

•

THE COMMERCIAL & FINANCIAL CHRONICLE

1600

Thursday, October 12, 1944

TEACHERS' PENSION AND ANNUITY FUND, STATE OF NEW JERSEY
■

MUNICIPAL, AND SCHOOL BONDS TO BE SOLD IN COUPON FORM TUESDAY, OCTOBER 24, 1944

the Board of Trustees of the Teachers' Pension and Annuity Fund, State of New Jersey, will receive and open in
Trenton, sealed bids for the purchase of $7,365,900 New Jersey County, Municipal and School Bonds.
/V. >
form with the approving opinions of recognized bond counsel.
,
::
,
\
:
-

The bonds will be sold in coupon

Separate bids will be

considered for all of the bonds offered under each of the following twenty-six separate blocks;

Block No. 1—$200,000

in 1961, $25,000 in 1963 and 1966, and $1,000 in
Opinion of Hawkins, Delafield and Longfellow'.

County, Refunding, Series of 1939,
31/2's, dated August I, 1939, maturing on August 1st as
follows: $81,000 in 1952, $92,000 in 1953, $15,000 in 1954,
$5,000 in 1956, and $7,000 in 1957.
Opinion of Dillon,
$200,000 Atlantic

County, School 4 ¥2's,
as follows:
$10,000 in 1954, $1,000 in-1958, $30,000 in 1959, and $4,000
in 1963.
Opinion of Hawkins, Delafield and Longfellow.

No.

$47,000 East Orange City, Essex County, General Im¬
1st as follows:
$15,000 in I960, $11,000 in 1963,
$16,000 in 1964, and $5,000 in 1966." Opinion of Hawkins,
Delafield and Longfellow.
'
' ;
v

.V^i'

2—$777,000

00, 4¥¥s, dated June 1, 1930, maturing June 1st as
$25,000 in 1960, $13,000 in 1963, $14,000 in 1964,
$5,000 in 1966, $25,000 in 1967, 1968, and 1969.
Opinion

follows:

County, Vocational School 4V2's,
dated January 1, 1929, maturing on January 1st as fol¬
lows:
$30,000 in 1948, $30,000 in 1950, $10,000 in 1952,
$10,000 in 1955, $30,000 in 1957, $30,000 in 1958, $30,000
in 1959, $20,000 in 1960, $20,000 in 1961, $15,000 in 1962,
and $5,000 in 1967.
Opinion of Hawkins, Delafield and
-v 77

•_.'¥■ :

'•,7'^'''"

January 1,

and

$10,000 September 1st each year from 1959 to 1966,
Opinion of Hawkins, Delafield and Long¬
;■-

Block

No.

'v'¥¥';'¥'7

'■

Block

9—$20,000

1st as

$7,000 in 1955, $2,000 in 1957 and 1961, $7,000
1962, and $2,000 in 1963.
Opinion of Reed, Hoyt and
Washburn.
:
V:'v
.-/■
■ ¥.•,¥
¥-■;•;
Block

Opinion of Hawkins, Delafield and

7v7

Longfellow.

■

No.

[\[

10—$434,000

1,
$3,000 in 1959,
$10,000 in 1965, $5,000 in 1966, $15,000 in 1967, $15,000
in 1968, and $12,000 in 1969.
Opinion of Hawkins, Dela¬
Park 4%'s, dated March

1938, maturing 011 March 1st as follows:

Borough,

Fairlawn

$26,000
follows:

Serial

County,

Bergen

No.

3—$419,000

1947.

Passaic County, Park, Series 2, 6's, dated
maturing on June 1st as follows; $5,000 in
1959, 1960, and 1961; $15,000 in 1962; $5,000 in 1963 and
.1964; $15,000 in 1965; $28,000 in 1966; $5,000 in 1967;
$6,000 in 1968; $5,000 from 1969 to 1975, inclusive; and
$35,000 in 1976, 1977, and 1978.
Opinion of Hawkins,
Delafield and Longfellow.
"
$234,000

$5,000

7:'7,

Opinion of Reed, Hoyt and Washburn.

clusive.

$25,000 Fairlawn Borough, Bergen County, Water
2%'s, dated October 1, 1940, maturing $5,000 October 1st
each year; from
1953 to 1957, inclusive.
Opinion of
Hawkins, Delafield and Longfellow.
C
•

June 1, 1932,

$8,000 in 1957, $75,000 in 1958, $45,000 in 1959, and
$15,000 in 1960.
Opinion of Hawkins^, Delafield and
Longfellow.
■ ■■;'7

field and

$42,000 Passaic County, Welfare Home 5's, dated June

Hawkins, Delafield and Longfellow.

No- 4—$192,000

;>¥■

Improvement, 4 ¥2's,
November 1, 1929, maturing November 1st as fol¬
$20,000 in 1958, $50,000 in 1959, and $60,000 in
Opinion of Reed, Hoyt and Washburn.

$130,000 Union County, General
dated

lows:
1960,

$62,000 Union County, General Improvement, Series B,
2;70's, dated June 1, 1937, maturing June 1st as follows:
.

$20,000

1958,

$40,000

1959,

$2,000* in

and

Opinion of Reed, Hoyt and Washburn.
Block

No.

5—$155,000

1960.
-

;

Block

•

No.

6—8609,000

$349,000 Camden City, Camden

County, General Re¬

funding 4's, dated June 1, 1936, maturing December 1st
as follows:
$4,000 in 1952, $8,000 in 1953, $10,000 in 1956.

$46,000

1962, $96,000 in

$3,000 in 1965, and $41,000 in 1966.

1963, $31,000 in 1964;..

Opinion of Hawkins,/,'

Delafield and Longfellow.

$40,000 in 1962, $35,000 in 1963,-1964, and 1965,
and $50,000 in 1966.
Opinion of Hawkins, Delafield and
Longfellow.
4.
1961,

No.

7—$280,000

$101,000 East Orange City, Essex County, General Im¬
provement, Series 12, 4V2's, dated February 1, 1929, ma¬
turing February 1st as follows:

1957.

ion of

1954,

;

1955.

$2,000

and

an*d Washburn..

Opinion of
■

Opinion of Reed,

$10,000 in 1953 and 1954, $19,000 in 1955, $20,000 in 1957,
$35,000 in 1962. Opinion of Reed, Dougherty, Hoyt
and Washburn. '

Longfellow.

Block

$40,000 in ,1960, $10,000

No.

Block

No.

as follows:
$11,000 in 1947, $25,000 in 1950, $30,000
1951, $1,000 in 1952, $5,000 in 1953, $25,000 in 1956,
$50,000 in 1958, $25,000 in 1959, $75,000 in 1960 and 1961.,
Opinion of Reed, Hoyt and Washburn.

Block

11—$22,000

and

Opinion of

12—$267,900

'
Block

No.

Block

Sewer

County,

/
Passaic

Valley

$10,000

in 1963.

1952 and 1960, $35,000 in 1962,
Opinion of Reed, Dougherty, Hoyt

$110,000 Orange City, Essex County, General Refund¬
ing, Series A, 3's, dated February 1, 1939, maturing $5,000
February 1st each year from 1952 to 1956, inclusive,

$56,000

$10,000 February 1st each

year from 1957 to 1960, in¬
clusive, $25,000 February 1st. 1961, and $20,000 February
1st, 1964. Opinion of Reed, Hoyt, Washburn and Clay.

dated November 1,

21—$180,000

Essex

and Washburn.

13—$101,000

No.

City,

41/^'s, dated October 1, 1926, maturing October 1st

and $15,000

lows:

Orange

follows:

■

Irvington Town, Essex County, School 4%'s,
1930, maturing November 1st as fol¬
$5,000 in 1957, $1,000 in 1958, $30,000 in 1961, and
$20,000 in 1962.
Opinion of Hawkins, Delafield and
Longfellow.
.;
'

Hoffman.

$70,000

1961,

Longfellow.

20—$46,000

$30,000 Nutley Town, Essex County, Water 4's, dated
April 1, 1935, maturing $2,000 April 1st each year from
1951 to 1965, inclusive.
Opinion of Hawkins, Delafield
and Longfellow.

inclusive; $8,000 January 3rd
each year from 1962 to 1974, inclusive; $9,000 January
3rd each year from 1975 to 1978, inclusive, and $8,900
on
January 3, 1979.
Opinion of Hawkins, Delafield and
1945

No.

$16,000 Nutley Town, Essex County, Public Improve-;
ment 6's, dated October 15, 1931, maturing $8,000 Octo¬
ber 15th, 1960 and 1961.
Opinion of Thomson, Wood

$267,900 Hillside Township/Union County, School 4's,
dated January 3, 1939, maturing $7,000 January 3rd each
from

'7.

;

$22,000 Hasbrouck Heights Borough, Bergen County,
Sewer 41/2's, dated January 1, 1927, maturing January 1st
as follows:
$5,000 in 1953 and 1954; $1,000 in11956, 1957,
and 1963; $7,000 in 1964, and $2,000 in 1965.
Hawkins, Delafield and Longfellow.

;

$322,000 Newark City, Essex County, Street Opening,
B, 5¥tS, dated August 1, 1934, maturing August

March 1st
Opinion of Haw¬

1952 to 1956, inclusive.
kins, Delafield and Longfellow.

„

1st

from 1945 to 1951, inclusive, and $3,000

each year from

Series

$29,000 Fairlawn Borough, Bergen County, School 5's,
dated March 1, -1926, maturing $2,000 March 1st, each
year

$395,000 Newark City, Essex County, Passaic Valley
Sewer 4's, elated December 1, 1911. maturing December
1st, 1961. Opinion of Reed, Hoyt, Washburn and Clay.

April 1, 1940, maturing $3,000 April 1st each year
from 1952 to 1960, inclusive.
Opinion of Hawkins, Dela¬
and

and

dated

field

Hawkins, Delafield and Longfellow.

$94,000 Newark City, Essex County, Water 41A's, dated

School 3's,

$27,000 Fairlawn Borough, Bergen County,

19— S923,000

November 15, 1926, maturing November 15th as follows:

Hoyt
:

No.

$50,000 Newark City, Essex County, Dock 4¥2's, dated
February 1, 1914, maturing February 1st, 1959. Opinion
of Hawkins, Delafield and Longfellow.

$8,000 in 1951, $15,000 in 1952, $38,000 in 1953, $12,000

year

$260,P00 Camden City, Camden County, General Re¬
funding 31/2's, dated June 1,1936, maturing December 1st
as
follows: $10,000 in 1959, $25,000 in 1960, $30,000 in

Block

School

$116,000 Fairlawn Borough, Bergen County, Water
Funding 41/2's, dated June 1, 1935, maturing June 1st as
follows:- $30,000 in 1946, $10,000 in 1947, $1,000 in 1950,

$7,000 in 1958, $17,000 in 1959, $2,000 in I960, $84,000 in
1961,

County,

Longfellow.
Block

$155,000 Bridgeton City, Cumberland County, Sewer
4%'s, dated July 1, 1930, maturing $10,000 on July 1st
each year from 1945 to 1957, inclusive, and in 1963 and
1964; and $5,000 in 1967. Opinion of Hawkins, Delafield
and Longfellow.
A
,

Bergen

$15,000 in 1955, $20,000 in 1956 and
Hawkins, Delafield and Longfellow."

1, 1934, maturing June 1st as follows: $10,000 in 1960,
$15,000 in 1962 and 1963, and $2,000 in 1964.
Opinion of

■/'Bl0('k

Borough,

Fairlawn

$100,000

2.80's, dated April 1, 1942, maturing October 1st as fol¬
lows:
$15,000 in 1952, $10,000 in 1953, $20,000 in 1954,

18—$50,000

$62,000 Newark City, Essex County, Dock 4 ¥2's, dated
December 15, 1914, maturing December 15th, 1959. Opin¬

lows:

No.

dated June 1, 1931, maturing $10,000 June 1st each year
from 1965 to 1969, inclusive.
Opinion of Hawkins, Dela¬

Opinion of Thomson, Wood and Hoffman,

$50,000 Morristown Town, Morris County,1' School 4's,'

Fairlawn Borough, Bergen County, School
53/4's, dated July 1, 1929, maturing July 1st as follows:
$2,000 in 1948, $3,000 in 1949 and 1950, and $4,000 each
year from 1951 to 1955, inclusive.
Opinion of Thomson,
Wood and Hoffman.

No. 17—$57,000

Block

$28,000

$143,000 Passaic County, Tuberculosis Hospital 4 ¥2%
dated December 1, 1928, maturing December 1st as fol¬

Block

7;/>

$57,000 Montclair Town, Essex County, Serial Water
Ws, Series No. 1, dated October 15, 1931, maturing
$3,000 October 15th each year from 1953 to 1971, in¬

1946, and $1,000 in

1945, $20,000 in

$20,000 Millburn Township, Essex County, School 4%'s,

December

Funding 4¥>'s, dated June 1, 1935, maturing June 1st as

field and Longfellow.

16—$46,000

1, 1929, maturing June 1, 1959.
Opinion of
Hawkins, Delafield and Longfellow. ;
>
;
; 77
$17,000 Millburn Township, Essex County, School, Se¬
ries C, 4^4's, dated October 1, 1927,, maturing $1,000
July 1st each year from 1951 to 1967, inclusive. Opinion
of Hawkins, Delafield and Longfellow,

1, 1929, maturing $3,000 December 1st
each year from 1945 to 1957, inclusive, and $4,000 De¬
cember 1st each year from 1958 to 1968, inclusive.
Opinion of Hawkins, Delafield and Longfellow.
'

dated

No.

dated June

$83,000 Fairlawn Borough, Bergen County, School 5's,5

7.7.

$2,000 in 1964, and $1,000 in 1965 and 1966.- Opinion of
Reed, Dougherty, Hoyt and Washburn.

follows:

$30,000 Camden County, Park 4¥irs, dated October 1,
1937, maturing $5,000 on October 1st, 1949, 1951, 1953,-

$9,000 Millburn Township, Essex County, Sewer 41/2's,
dated October 1, 1926, maturing October 1st as follows:
$1,000 in 1958 and 1961, $2,000 in 1962, $1,000 in 1963,

Build¬

$20,000 Elizabeth City, Union County, Police
ing 41/4's, dated April 1, 1931, maturing April

Livingston iTownship, Essex County, Water
41/2's, dated July 1, 1930, maturing July 1st as follows:
$6,000 in 1950 and 1951; $7,000 in 1952 and 1953; $2,000
in 1956, $7,000 each year from 1957 to 1960,
inclusive;
and $9,000 each year from 1961 to 1964, inclusive.
Opin¬
ion of Hawkins, Delafield and Longfellow.

inclusive.

fellow.

Block No, 15—$92,000,/

$92,000

Rutherford Borough, Bergen County,
4%'s, dated September 1, 1926, maturing $9,000
September 1st each year from 1951 to 1958, inclusive,

¥'7

Block

1964, $25,000 in 1965, $24,000 in 1967, $20,000 in 1968,
$35,000 in 1969, and $41,000 in 1970.
Opinion of Haw¬
kins, Delafield and Longfellow.
'
*

$152,000; East

! $85,000 Camden County Road, Bridge and Institution
C's, dated March 1, 1932, maturing on March 1st as follows: $15,000 in 1959, $10,000 in 1961, $20,000 in 1963,
1964, and 1965.- Opinion of Hawkins, Delafield and

$60,000 Camden County,

Rutherford

School

■

$25,000 Camden County, Park 4 ¥2's, dated

1964, 1965, and 1966.

East

1930, maturing $5,000 on January 1st, 1966, 1967, and
1968, and $10,000 on January 1st, 1969. Opinion of Haw¬
kins, Delafield and Longfellow.
•.
;
■■
■■
' 7

Longfellow..

'7,

Block No. 8—$256,000

/■'..

Borough,- Bergen County,
Sewer 314's, dated February 1, 1939, maturing February
1st as follows: $5,000 in 1951, 1952, and 1953; $7,000 in
1957; $6,000 in 1958; $7,000 from 1959 to 1968, inclusive;
and $6,000 in 1969.
Opinion of Reed, Hoyt, Washburn
and Clay."¥''•/'C'/";''
//777'V' -.7.7

Camden

Longfellow.

$314,000 Kearny Town, Hudson County, Water Supply
4 Mj's, dated June
15, 1930, maturing June 15th as fol¬
lows:
$15,000 in 1957, $45,000 in 1958, $25,000 in 1959,
$10,000 in 1960, $2,000 in 1961;;$12,000 in 1962, $60,000

Hawkins, Delafield and Longfellow.

$104,000

...

15, 1929,. maturing $5,000 June 15th, 1957,: and
$25,000 June 15th, 1961. Opinion of Hawkins, Delafield
and Longfellow.
¥
7.,;;7 /77/ 7'7 _7. 7 . ;
7 •
^

ries

Bloek No. 14—$344,000 > .7 7

$30,000 Kearny Town, Hudson County, Water 5's, dated
June

$132,000 East Orange City, Essex County, School, Se¥

Refunding 4's, dated
March 1, 1936, maturing on March 1st as follows: $10,000
in 1947, $30,000 in 1952, $5,000 in 1953, $10,000 in 1954,
$16,000 in 1955, $5,000 in 1956, $1,000 in 1957, $30,000 in
1958, $56,000 in 1960, $37,000 in 1961, $68,000 in 1962,
$63,000 in 1964, and $16,000 in 1965.
Opinion of Haw¬
•

January 1st

June

$347,000 Camden County, General

kins, Delafield and Longfellow.

Town, Essex

dated January 1, 19277maturing

Block

Awards will be made the same day.

$45,000 Irvington

1967.

provement, Series 13, 4¥a's, dated June 1,-1930; maturing

.*1'*V '¥¥. ¥7'7 ¥.' ! V.,1';

fVandewater & Moore. *

$230,000

1307, Trenton Trust Building,

their office, Room

Phone 2-2131—Extension 530

M., Tuesday, October 24, 1944,

At 2:00 P.

$7,365,900 NEW JERSEY COUNTY,

;

BOX 550, TRENTON, NEW JERSEY

Trenton Trust Building

.■

(Continued on page 1601)

I960,

(Continued from pageT600)

field and

Block No. 22—$651,000

Longfellow.

Block

1st

Opinion of Hawkins, Dela-

$20,000 in- 1961.

and

No.

24—$307,000

Passaic County, Water 41/4's,
$75,000
in 1961,
t. Li
year from 1964 to 1969, inclusive, and $20,000 in 1970.

2X/Vs, dated November 15, 1939, maturing $5,000 Novem¬
ber 15th eaeh year from 1951 to 1967, inclusive, and

Opinion of Hawkins, Delafield and Longfellow.

$3,000 on November 15, 1968.

City,

Passaic

$651,000

dated July

1, 1930, maturing. July 1st as follows:
$26,000 in lyoz, $oU,ouu m laoo,

No.

Block

$88,000

1st

Vandewater.

Block No. 25—$249,000

1959

1956,

1941,

School
$10,00(1

Bergen

March

County,
maturing

Township,

dated

from 1353 to 1957, inclusive, $5,00(1

1st, .1958, and $1C,Q0Q Ilarch 1st each year from

Opinion of Hawkins, Delafield

1962, inclusive.

Longfellow.
Block

No.

26—S144 000

"" ' V V. '
$144,000 Westwood Borough, Bergen County, School
4%'s, dated August 1, 1929, maturing $6,000 August 1st
; _:

Opinion of

each year from 1945 to 1968, inclusive.

$154,000 Teaneck Township, Bergen County, School
District 4V2's, dated January 1, 1928, maturing January

$20,000 in 1953 and 1959, $5,000 in

follows:

March

and

Teaneck

2y4s,

March 1st each year

Opinion of Dillon, Vande-

011

Paterson City, Passaic County, General Im¬

$95,000
District

$18,000 each year from 1956 to 1964, inclusive, and $8,000
in 1965, 1966, and 1967.
Opinion of Clay, Dillon and

provement 41/2's, dated October 1, 1928, maturing Octo¬
ber

School

County,

$219,000 Phillipsburg Town, Warren County, School
41/i's, dated December 1, 1927," maturing December 1st
as
follows:
$15,000 in 1952 and 1953, $3,000 in 1955,

Opinion of Hawkins, Delafield and Longfellow.

$65,000

Warren

Town,

water & Moore.

23—$544,000

$479,000 Paterson City, Passaic County, Water System
4V4's, dated July 1, 1930, maturing July 1st as follows:
$15,000 in 1953, $7,000 in 1954, $36,000 in 1956, $12,000
ill 1957, $25,000 in 1958, $174-,000 in 1959, and $210,000
in 1961.

Phillipsburg

1952 and

$4,000 in 1951, $9,000 in

$1,000 in 1957, $19,000 each year from 1958 to 1963, in¬
clusive, $7,000 in 1964, and $10,000 in 1966. Opinion of
Hawkins, Delafield and Longfellow.

follows:

1601

THE COMMERCIAL' & FINANCIAL CHRONICLE

Number 4324

.Volume 160

Hawkins, Delafield and Longfellow.

bid for each block of bonds—accrued interest to the date of purchase to be added.
^ :=''
' ;
Teachers' Pension and Annuity Fund, State of New Jersey, and enclosed in a sealed envelope marked on the outside
"
/ ■■■''
: 7'
V• ■
v;•
' -j"'■ V
"• '
^
"
on the day the bids are received to the bidder offering the largest price and accrued interest to the date of payment,

proposal should state the amount in dollars and cents

Each

will be required with the bid.

No down payment

Proposals should be' addressed to the
"PROPOSAL FOR BONDS."
of bonds will

Each block

but the Board of Trustees

the right to reject any or all

reserves

•

awarded

bids.

•

bonds awarded to him and to make payment therefor at the office of the Teachers' Pension and Annuity
Fund, State of New Jersey, 1307 Trenton Trust Building, Trenton, New Jersey, at a date to be determined by the Board of Trustees, which will be as soon as pos¬
sible'after award and in any event not later than November 10, 1944.
;y
;'i-'
y
r
purchaser will be asked to take delivery of the

Each

By Order of the
Board of Trustees,

JOHN

WOOD

Although the municipal market
is still under the influence of the

that
and

opinion

held

widely

the end of the war in Europe

partial peacetime econ¬
necessarily will result in a
marked readjustment of prices to

return of a
omy

that
in

the

cards,

seriously

they

question whether
change
after

Full

until

well

Fund

U0ur Reporter On Governments"

Oct. 24 of
$7,365,900
New Jersey county,
municipal and school bonds.

making an offering on

any appreci¬

able

Ger¬

will occur
the defeat of

and

Pension

easing of the burden

some

Teachers'

State
Annuity

Jersey

New

the

Municipal News & Notes
rather

3d,

Secretary.

September 14, 1944.

details

latter of¬

the

By JOHN T.

The Government bond market has been
the

denced

announcement

market

columns

JR.

comparatively stable in
evi¬
The

past week, although there was some further improvement
in
the longer-term, partially tax-exempt issues.

fering appear elsewhere in these

many.

CHIPPENDALE

...

had

been

waiting for the Treasury's

of the

announcement

type of securities that would be offered in the Sixth War Loan,
signed by John A. Wood, 3rd,
influential
which was made public last Thursday.
Secretary of the Board of Trus¬
segment of the municipal bond
tees of the State fund.
The basket of issues to be sold in the coming drive were
fraternity,
which
believes that
in line with previous expectations, so that the
The
calendar
of strictly new
outstanding issues
present pessimism regarding the
appear to have quite fully adjusted their position to the new
financing coming to market is
outlook for municipal bond prices
financing which will be available to all (except the commercial
strikingly impressive and is
is unwarranted.
headed by the projected sale on
banks, who may be allowed to buy limited amounts)
from
In this connection, it may be
Nov. 20 to Dec. 16, 1944.
Oct.
17
of $33,000,000 Los An¬
noted that the municipal depart¬
The issues to be offered in the coming War Loan Drive are
geles, Calif., Department of Water
ment- of the First Boston Corp;,
and Power electric plant refund¬ practically the same as those used in the Fifth War
Loan, aside from
In a memorandum entitled "The
some
minor changes in maturities reflecting principally the later
This marks
O u 11 00 k
for Municipal Bond ing revenue bonds.
the second appearance of the de¬ date in the year of the drive.
The securities to be 'offered are
Prices," reviewed the pros and
partment in. the market this year, as follows:
cons of the situation and asserted
a previous sale having, been made
Series E, F and G Savings Bonds
that any general conclusion of a
.
on
Feb. 24, when a $15,000,000
Series C Tax Saving Notes
drastic downward revision in the
refunding issue was awarded to a
-%% Certificates of Indebtedness, due Dec. 1, 1945
municipal structure "is wrong."
syndicate headed by the Mellon
iy4 % Treasury Notes, due Sept. 15, 1947
One New York municipal bond
Securities
Corp.
of Pittsburgh.
2% Treasury Bonds, due Dec. 15, 1952/54
'
f
house commented in part as fol¬
The impending operation is par¬
2Vz% Treasury bonds, due March 15, 1966/71
lows in a recent bulletin on the
ticularly significant in that the
market:
:
COMMERCIAL BANK FORMULA
purpose of the loan is to provide
'
A'/'
That there was good business for
the
refunding of an equal
As in the Fifth War Loan, the commercial banks will not be
to be done at a price was demon¬ amount
of
outstanding
bonds
permitted to own the 2V2% bonds offered in this drive until Dec.
strated also by the members who which are not
callable until a
1, 1954. It was also announced that these institutions likewise will
recently had Consumers Public year hence.
: :
this

group

...

has been
the

the

there

levels,

lower

permanently

material improvement

of the market during

tone

past few days.. This was re¬
in a renewal of buying

flected

interest

have

which

offerings

been

overhanging the market for

quite

spell and quick absorption
of

handful

the

issues

new

reaching the markets.

instances, however, the

In all

prices at which bonds

level

placed with investors rep¬
a
reduction of from

were

resented
10

basis points
prevailed

least

below the base which

months ago.

two

some

this space

noted in

fort¬

night ago, there are quite a num¬
ber of investors and some dealers
who
feel
that
the end
of the
European
an

effect

This

level.

based

is bound to have
on
the price

war

adverse

view

will

that

to peacetime
accompanied

changeover

partial

conditions

necessarily

assumption

the

...

them

of their group.
to

Marked down 10
these bonds
moving out nicely. A

basis

have

nancing.

various small,

effect

The

such

develop¬

ments, it is reasoned, would be
to

influence

lessen

greatly

importantly

to the

municipal
bond prices. Under the circum¬
stances, it is believed that a re¬
adjustment of considerable pro¬
portions will necessarily ensue.

present peak level of

There

disputing the -fact,

municipal prices
tremendously by
the high level of wartime taxation
and the enforced curtailment of
borrowings occasioned by mate->
of

that

course,

have been aided

shortage. On
therefore, it is no less

rials and manpower

the surface,

dealers

number
last

week

price

the

There

been

has

general

reduction in prices. Dealers are

waiting to

see

activity really
ing
a

lower

what last week's

were

level

last

Is it go¬

means.

to be necessary

week's

drop to

business,

purchases

relatively few
buyers who had refused to fol¬
low the market up and seized
upon
the first opportunity to
merely those of

buy

at their

limit?

than reasonable to suppose

that a

will be tested

dissipation of these factors

would

gather large volume of offerings

react

current

the

disadvantage of the

scheduled

the result of the

reach

the

market

within the next few weeks.

price level.
important point

With

at issue the Sixth War Loan Drive sched¬
the validity uled to begin on Nov. 20, a num¬
of
institutions
and
public
and correctness of the assumption ber
that the twin developments re¬ trust funds are understood to be
ferred to will automatically be¬ making
preparations for heavy
come operative with the close of
participation, and to this end con¬
the war in Europe or soon there¬ template disposing of substantial
The

bears

naturally

after.
In

the

opinion

of many

ob¬

opti¬
early
downward revision in the FedernX
tax
drncti""* cor\^u,,fA
nothing * more
than
wishful
thinking. While they fully agree

servers,

mistic

for example, the
forecasts of
an

portions of their municipal hold¬
ings. Two large operations of this

definitely in pros¬
pect. The Metropolitan Life In¬
surance Co. of New York, for ex¬
category

are

asking for bids until
$15,152,000 various
State and municipals. In addition,
ample,
Oct.

advan¬

double

requires

interest

to the callable date
of the outstanding obligation.

payments

A similar desire to take advan¬
tage of existing favorable market
conditions, rather than gamble on
the future, is apparently the pri¬
mary factor underlying several f>f
the
other
important
offerings
awaiting opening of bids.
The
City of Baltimore, Md., for ex¬
ample, intends to sell on Oct. 17
a total of $9,450,000 bonds for va¬

exchange for the
drive

rious

to be postponed
readjustments have

have

may

until post-war

Loan
lar.

market on

the

Tuesday with its $12,-

000,000 sewage disposal bond is¬
sue and will receive bids Oct.
30
on

another issue of $3,000,000 har¬

tan
of

the
area

Fort

Oct.

New
we

York

find

metropoli¬
Borough

the

offering on
of $3,384,000

Lee, N. J.,
an

issue

general refunding bonds of the
borough, and $733,000 school re¬

formula

yet to be made, public by

commercial

the Treasury.
banks will be

The

allowed

participation in the issues to £>e offered in the Sixth War
was
withheld for prescription in the official offering circu¬
Previously the formula has been made known, at the time

;

The formula for commercial banks'
War

Loan

participation in the Sixth
be held in abeyance, thus giving the Treasury

may

time

coming drive.

decide upon a policy for these
.

There

had

been

banks

commercial

institutions in the

PARTICIPATION

LARGER

SOUGHT

considerable

should

support for the belief that the
a
larger participation in the

given

coming War Loan, which participation would be conditioned upon
the indirect support they gave to. the last two drives, and this may
be the case when the Treasury finally gives out the formula
for

the

amount

securities

may

these

that

directly in;the Sixth War Loan.

institutions
.

may

purchaser

be that the Treasury is awaiting developments in the

military situation, and should the war in Europe end in Novem- y.
ber^

be in its final stages, the participation of the commercial

banks in the coming drive

would

There

might be increased.

probably not be as large sales to individuals and

has been evidenced in the previous war loan drives, .IP
or be in its waning stages beforecoming drive starts. . . . Then the institutions having demand
deposits might be allowed to be almost as important directly in the
drive as they have been indirectly in the previous ones.
It was
learned that there has* been considerable discussion as to the type
others,
the

development bonds.

bor

(other than those acquired ii>

the type of securities to be offered in the drive were made public.

;

presented

Ore.,

bonds

limited

effected.

Portland,

bonds) until Dec. 18, 1944, after the
has closed, except for a limited investment of time deposits,

under

municipal purposes, some
still
of which contemplated construe-'
tion

called

specific formula by which the

been fully

Regardless of point of view, it
would appear that both theories
as to the course of the price level
on

this

old lots they were
perhaps
15 basis

will

tageous to effect the refunding
award at this time, even though

occasion

took

shade

carrying,
by
points, and were rewarded
finding buyers there. /;

the two factors which have con¬
tributed

been

that

points,

sharp reduction in Federal
taxes and
a
substantial increase
in
the volume of municipal fi¬
by

is
that municipal officials believe
implication

natural

The

breakup

the

allowed to buy the 2%

not be

Power District of Nebraska bonds

handed

European war were to end

the

...

aqd, .amount of securities the commercial banks should be allowed to
purchase in the drive, if the Treasury should see its way clear to
plans.

fit them into their

funding bonds of the borough's
school
and

that

district.

Taking

large, it seems
there

will

safe to say
a

brisker

feeling to the municipal picture
in

the

tober,

autumnal

month of Oc¬
„

WAR

END

FACTOR

prevailing feeling is that if these institutions are given an
opportunity to subscribe to the new issues it should he for the cer¬
tificates, notes and 2% bonds at par, with no restrictions as to
The

amounts.
It

:
was

pointed

fhe

(Continued

other

on page

that

160.8)

appears

THE COMMERCIAL & FINANCIAL CHRONICLE

1602

Thursday, October 12, 1944

The farther we depart from

Breiton Woods In Politics?
(Continued from page 1580)
the bankers

[Mr. Wagner] expressed
the

that

the hope
that

had been done would be kept

from

time in

The

that

broad

agreement

area

liberty-loving nations of the
world was of great significance.
The fact that these representa¬
tives could and did outline the
base
of economic
and financial
the

that

construction
rise

are

the

permanent

peace

When
the

road

tute

group

started

the

recovery.

offers

Aldrich

Mr.

this

which

measures

the

for

substi¬

Woods pro¬

Bretton

return to the gold stand¬

ard and

Hoover

economy.

This obviously would be

Gover¬

had intended,
nor
Dewey's
program,
if,
by
during the course of this political
chance, he were to become Presi¬
campaign, to refrain from discus¬
dent.
sing the. accomplishments of the
Mr. Aldrich says:
historic
meetings
at
Bretton
For

part

"We must be prepared

Woods.

hope that even now there is
essential difference between

I
no

the rank and file
memberships of the major parties
upon
the objectives of interna¬
tional
monetary
and
economic
the thinking of

stabilization.
had envisioned

nonpartisan collab¬

bipartisan

oration

which

all

work

could

together to achieve the great pur¬
poses of a new world order.
I still believe this to be

pos¬

sible.
There was,

however, a develop¬
impels me to

ment last week that
1

speak out.
I would feel remiss in my
the people of

did

raise

not

that

the

Dewey

this country if I
flag of warning

was

may

Last

Friday

Winthrop Aldrich,
New

York

banker

cial supporter and

Second

against

He advocated
ment

United

elected.
private
bankers — Mr.
Dewey's political mentors — are
against Government regulation of
international exchange or invest¬
ment.

clude all other nations, large

financial

affairs

the

post-war

world.

the

rest

the

world

has

long realized — that you cannot
separate international diplomacy
from international money.
Governor

vice to

Dewey pays lip

the

ser¬

international organiza¬

tion to work for

while

permanent peace

same

time his pros¬

pective Secretary of the Treas¬
ury demands that the international
monetary relations be left in the
same
hands
that
brought
the

the

participation

1914.

They refuse to recognize,' and
Dewey refuses to recognize,

what

world
It

into

tailspin.

understandable

it t* the hands

and return

the

that

private bankers want foreign ex¬
change left free from government

of the

bankers who led us into
orgy
of speculation in the
twenties and then were helpless
private
the

stem the

of the

turn

disastrous

which

policy,
the

would

days

re¬

Hoover,

dangerous and costly

with

experiment

the

welfare

Mr. Aldrich urges that we

the

finance
of

"bal¬
Budget and re¬

the Federal

ance

would spell

course,

deflation

floating debt."

and

drastic

result

This,

high in¬

terest rates.
In

with

common

most

private

bankers, Mr. Aldrich wants money
scarce
and
interest
rates
high.
This is a kind of a monetary astig¬
matism which makes it impossible
for most bankers to see that such

policy leads to depression, ulti¬
mately injuring the creditor as

well

the debtor.

striking
contradiction
to
Dewey's demand that smaller na¬
tions be recognized in the world

organization, his

peace

spokesman

proposes

the

for

the

stabilization

pound

Woods

Bretton

tute

financial
a substi¬

the

plan

dollar-

such

would

What

proposal

It would leave the United States

Britain

and

Great

the

monetary
Britain

control

systems

this

Since

Great

the

will leave

war

heavily in

debt to

world, the United
the dominant

the rest of the

Dewey approach much more def¬
initely than do the candidate's

glittering generalities in his
campaign speeches or in his clever
evasive parries at press con¬
own

and

ferences.

Mr.
Aldrich, representing the
point of view of the international

bankers, is at least forthright.
He says that he is against the
Bretton Woods proposals because
he fears that they would lead -to
post-war inflation.
But, this advice of the banking
spokesman has a familiar ring. It
is the same advice that was given

either develop

workable,

President

Hoover

1930

omies

was

apd -a

stringent

balancing

We
our

the

the greatest arma¬
world.

bidden
traffic

in Fort

our

ognized

Knox

citizens to

with it

the

budget.
This banking group in 1937 was
successful in persuading the Gov¬

Then

why,

all

locked

have

ourselves

gold

that it is the

econ¬

ments

and for¬

hold

though we rec¬
scriptural warning
as

may

ask,

ing the

Hoover

Here

necessarily

administration?
answer

which

regulation of foreign exchange
this

would

that

mean

—

small

of Wall Street banks would

group

world

the

control

change.
would

monetary

the

ex¬

this

judgment,

that

In
mean

seeds

its influence would be ex¬
persuasion — not by co¬
ercion.
A kind of international
says

simplification

bankers

excuse

get

away

home, at the expense of their

from

There

the

involved in

much

too

principles

economic

and

political collaboration not to raise
this issue at this time.
A wartorn
world
demands
definite
.

insure

measures

The

holocaust.

other
tions

Bretton

against

an¬

conversa¬

Woods

were

return to the old

the people of

the nations of the
world evolve a plan, not for the
private benefit of private bankers,

our

Either

mutual welfare.

repudiate

this

should
pronouncement of

complex problem.

his financial mentor and benefac¬

Government

relief

The only substitute for the gold
standard is government control of

should

domestic

wofld return

change.

credit

and

foreign

ex-

fa¬

feet and

own

the

his

basis, of

merits.

own

It is true that he made

speech
—a very able
speech, in my opin¬
ion—questioning in a constructive
a

the work of the International

way

Monetary Conference at Bretton
Woods. Well, Mr. President, there
is a very serious question in the
minds of

great many earn¬
Americans—myself included—

est

whether

very

Woods

Bretton

its

and

agreement do not entirely ignore
the basic necessities prerequisite
to

stabilizing currency values in
countries, whether it also
does not put the American dollar
other

at the mercy

of international raids
stabilization fund,

in the proposed

and whether it may not stifle in¬

stimulate

stead

trade.

These

politics.

not questions

are

They

foreign

our

questions

are

of
of

for

treason

come

has not yet be¬

tional agreement

ministration;

American

challenge

made by this ad¬
has not yet be¬

treason to submit

come

inquiry

honest

to whether the agree¬
in the interest of Amer¬

ments

are

ica

not.

interna¬

The fact of the matter

America's
Woods

representation
and I speak

—

greatest respect for it —
did not include any delegates who
have ever had any substantial ex¬

active world of
international
exchange,
and
if
there ever was a technical prob¬
lem on the earth it is the problem
of international exchange in all
perience

the

its

phases.

not

know whether the Bretton Woods

tor,

the

forewarned

which breed

■

r •;

American

people
that

to the conditions

wars

and

depression.

■

written

They are
approxi¬
half points

147.75,

half the reaction. /

seen

.•

'•'»

sis

general market decline
three points is never
limited to just that in every
of

even

stock.

cline

good

Some issues may de¬
than three points;

others may not react at all.
Still others may
actually ad¬
vance.
I feel that the stocks

hold, Allied Mills, Bendix, Crown Zellerbach, Lock¬
heed and U. S. Steel, possess
you

all

the

eral

qualities of the

gen¬
rather than any

market

single

A glance at

one.

the

men

have

some

have

declined,

advanced

some

and:

some

stood still.

Yet, basically, they
still
possess
an
underlying
tape quality that carried to
its logical conclusion means
eventually higher prices. The
advice to
continue
holding
them therefore still

But

hold

applies.

blindly is
So, every is¬

practice.

poor

recommended

ries

with

which

war

here

car¬

under

stop

issue should not be

carried.

With

the

world

and all sorts of accidents

likely to carry stocks with no
sort of protection is dangerFor

stocks

complete list of the
here, their pur-,

held

stop levels, I sug¬
reading the column of

gest

Oct. 5.

/../'■

Thursday.

—Walter
[The
article

views

expressed

do not

coincide

any

those

LAMBORN & CO.
99

WALL

Chicago

did

Mr. Aid-

have

not

technical

question

knows

STREET

NEW YORK 5, N. Y.

SUGAR
Exports—Imports—Futures

syllable of politics in it. The ad¬
dress made by Mr. Aldrich was
a
constructive
discussion
of
a

DIgby 4-2727

concerning

the

than

Pennsylvania or. the
Senator from Michigan will ever
know in their lifetimes.
I think
his contribution is to be welcomed
for whatever it may prove to be
worth in the determination of this
Senator frQn

terrifically difficult problem.

Established

1850

H. Hentz & Co;

Member »
New
New

Forms J. G. Kinnard & Co.

New

Exchange

)

Cotton

Commodity

(Special'to The Financial Chronicle)

Chicago

MINNEAPOLIS, MINN. —John
G. Kinnard has formed John G.

Exchange

Curb

York
York

Stock

York

Exchange*
Exchange,
Ine.

Board

Trade

New

Orleans

And

Cotton

other

Exchange
Exchanget

)

Kinnard & Company with offices
the

gage

Mr.

Roanoke

Kinnard

Building

investment
has

been

en¬

business.

Investors

business

for

himself as

Y. Cotton

associated

Syndicate as in¬
vestment analyst and trader of se¬
curities.
In the past he was In
with

tax

con¬

sultant and investment analyst.

Exchange Bldg.

NEW YORK 4,
CHICAGO

DETROIT

GENEVA,

this

the idea that

whipping boy called a Wall Street

Whyte

necessarily at
with

More next

banker, should not be encouraged
to give us the benefit of their,con¬
structive thought on this highly
technical subject to the
utmost
limit. I am not afraid of informa¬

chase and

of America who know the

The address made by

•

OUS.

subject of international exchange,
even
though they may be that

...

any

of these issues will show that

time

without reservation

;

of the
bad; I do
Chronicle, They are presented at
not assume to say; I withhold my
those of the author only.]
judgment until my studies are
complete; but I want to condemn

agreement

149.25.

mately one and a
lower./If my figuring is cor¬
rect, then we have already

sue

fact.

Governor Dewey

dras¬

spending, and put the brakes on
our developing prosperity to pre
vent the runaway inflation which

his

weighed

about

were

this

in that direction.

important step

gold,

curtail

life of America and

stand

can

about

reserve

tically

which

depositors.

sterilize

the financial

rich

increase

which

Nevertheless,

Mr. Win¬
throp Aldrich is one of the dis¬
tinguished and honored leaders in

banking club tucked away in some
pleasant corner of Switzerland
which would afford the gentlemen

re¬

miliar.

/ {Continued from page 1582),;

dustrials

tion.

quirements,

ernment

credentials .with

erted by

but for

with authority for
the basis, of any

with the

days
this of international financial anarchy

this country and to the world dur¬

Dewey,

Going further— since Mr. Aidrich
would
abolish government

Either

repeated effort to return to a sys¬
tem which proved so disastrous to

Mr.

■

Jjt

President, I want to refer

partner in, that combination.

"root of all evil."

—

that the only way out of the de¬

pression

ciers, build

Mr.

does not speak

Savs

;

only briefly to Mr, Aldrich, who

that

•

cooperative plan among nations or
we set the stage for another war.
Why this insistence by the large
banking group that we reestablish
the old gold standard system?
To those not engaged in finance
it seems a very remote and tech¬
nical
problem.
We have seen
Germany, without vany gold at all
and declared bankrupt by finan¬

of New York.

Bretton

the

wars.

sententious and always partisan,
though always interesting, in his
belligerent observations. 1 wanted
immediately to respond to his
smudgy effort to smear Governor
Dewey by attacking John Foster
Dulles and" J. Winthrop Aldrich,

It is my opinion that the spokes¬
men
for Mr. Dewey reveal the

'/"/
President, I very much
regret that the distinguished Sen¬
ator from Pennsylvania IMrifGuffey] has left the. floor.- The Senatori from Pennsylvania is always

man

cause

" v*-"

.■

Mr,

would

States

regulation because that is one of
third World War would be sown
the most lucrative departments of
before the guns of this one are
big New York banks.
cold.
Of course, they want a return
Of
course, - Mr.
Aldrich does
to the rigid gold standard, but
come
President, is simply a re¬
propose
organizing an interna¬
turn
to those
conditions
which they want it only as a substitute
tional
institution where
central
for government control of credit,
cause wars.
bankers could meet regularly to
of currency, and of foreign ex¬
Thus we have the paradox of
discuss monetary and credit prob¬
Governor Dewey-giving lip ser¬ change.
lems of mutual interest.
Either we have government reg¬
vice to an international political
But this international institu¬
ulation of foreign exchange or we
organization which would seek to
tion is to have a capital of only
return
to, the
horse-and-buggy
prevent wars while his principal
$500,000,000, which is too small
financial
adviser
speaks
out system of settling international to have any real influence on
against
the kind
of
economic balances, in gold —- the system world
monetary affairs.
that proved so disastrous during
measures which would remove the
In fact,
Mr. Aldrich, himself,
the Hoover administration.

philosophy, advocated by
who, it is reported, would
become Secretary of the Treasury
in the event Dewey were to be¬

,-.1

•

citizen

world.

subsequently

Vandenberg
■'

Mr. President, it

This

the

Mr.
said:

rate.

mean?

Tomorrow's Markets.,
Waiter Whyte

and of the world.

citizens

our

depression

early thirties.

This

Mr.

and

from

were

ex¬

small,

They want private bankers
complete control, as they

be in

the

would

appar¬

The

unilateral agree¬

which

States

have

Governor Dewey were

adviser of Gov¬

with Great Britain and

years,

imprint upon the
minds of these private bankers
who would return to
power* if

Bretton Woods.

War

World

left

ently

Dewey,
came
ctut flatly
the proposals developed

ernor

depression

under the
administration, and the

Roosevelt

finan¬

terrible

scrap

1930.

the subsequent recovery

rests.
Chicago Mr.
distinguished
and

given Mr. Hoover by the Wall

'The

judgment, the fu¬

ture of world peace

advice, the
isolationism, that

same

Street bankers in

stroy the very fundamentals upon

which, in

the

economic

same

beginning to
seek to de¬

are even now

and

exchange controls."

of Governor

supporters

undermine

duty

gold redemption. The dol¬
be free from all foreign

This

the Bretton Woods pro¬
posals and abandon government
regulation of our money system

to rein¬

lar miist

day of

new

troduce

give full support to the prin¬
ciple of economic liberalism.";
What this spokesman for Mr.
Dewey was really asking was that
we

reversed

President

the

advocated we again

from the earth.

war

Wall
to

the

Street group had the effrontery
blame it all on the SEC.

to establish
posals
and banish

would work together

in international trade and both

pol¬

monetary

obvious,

were

that—

"Both England and the United
shun totalitarian tactics

States

mistaken

their

icies

days of re¬
ahead gave

hope that the na¬
world
could and

new

tions

the

collaboration

Deal.

And when the disastrous results

last Friday

making its recovery under

the New

there established among

was

repressive

the Nation lost valuable

measures

partisan debate during

any

Aldrich had in mind when he said

As the result of these

free

Presidential campaign.

this

just around the

saw

corner.

work

preliminary

Senator Yanderberg's Remarks

the

gold standard system the more we
must'rely upon government con¬
trol and the less power is left in
the hands of. private bankers.
That
is
apparently.' what Mr.

N. Y.
PITTSBURGH

SWITZERLAND

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4324

160

all types

is; certainly
not a serious
decline in either earnings or divi¬

ment

dends.

(Continued from page 1579)
exercise

ence.

influ¬

important

the

its

greater or lesser degree.

influence

developments

market

shaping

each

time

present

factors has

these

Main Factors in Present Market

The

■«.

anticipated

de¬

enormous

the

demand after

ferred

for

war

civilian products and the
expectation of an early reduction
in excess, profits taxes and rela¬
tively low post-war taxes have
been the most powerful factors in
recent months in determining the
many

level

and

the

market

even

whole

price

the

performance of individual groups.
is operat¬
ing under maximum steam pres¬

As long as our economy

these favorable factors can

sure

exploited to the utmost with¬

offsetting doubts and
The question is when these
apparently
favorable • long-term
out

many

fe.ars.

factors

market

counted

can

a higher stock
whether their in¬

support

upon to
mlarket.

Also

equipment
and
machinery de¬
veloped during the war. Demands
rates, however,
may well offset at least part of
the first advantage and the reduc¬
tion of costs through technological
for increased wage

Next Test of Market

After

Germany's Defeat
<The first serious test will come

Germany's defeat. A decline

after

in armament expenditures of 40%

without any offset even
in part, at least for a time, of ris¬

PC more

ing

production

civilian

lease"

deflationary

' many

[nqw held in

will

re¬

forces

restraint by our high

deflaItionary factors will cause a drop
lip production of a greater magniItipde thait that/traceable directly
tq armament- reduction. -Excess
^pressure

These

economy.

Jpfant capacity, p/shafp decline- in
|employment and'; payrolls,; large
land

excessive inventories of many

1 products--particularly

[are some of the chief deflationary
(elements;. Which,, will: emerge alImost immediately, v-ltjs, of

course

[true that', even after the decline
in

production the level of output
[will still .lie substantially higher
[than pre-war levels. It is not so

(much the Revel of production that
lis

important from the point of
(view of earnings and dividends,

ldwevef,

but the relationship

jtbe level of production and sales
(to other economic factors such as

Therefore

future.

other

mentioned

have; not

problems such as the disposal of
surpluses,

war

plants, the prompt and ade¬

either before

ilpyment and high wages .in the
)ost-war

world.

under¬

statement, to say that the key to.
jconomic developments after the
rbt lies in the maintenance of rea¬

sonably full employment and high
ige
rates.
The experience of
>fivate industry and the trend of

although their solution will obvi¬
ously take much time and will
involve many difficulties.

fairly

The

If it

can

not be attained

the normal interplay of ecolomic forces, many attempts will
>y

surely
ither

to attain
Large scale

made

means.

unem-

)loyment. and serious wage reduc¬

tions will simply not be tolerated.
It is of course true that industry

/ill
:osts

have

the

through

wertime

pay

benefit

the

and

lower

elimination

through

Neither is it
advance much during
this period.
Chances are that it
likely

narrow range

and be highly

"Guns and Butter" Both After

after

war

essential

the

might

The very seriousness of the

blow.

situation

apt to result in such

aid in various forms
to
many
industries which may
make it possible to soften the de¬
flationary
forces
which would
normally result from the present
situation.
This, however, is an¬
other subject which deserves in
government

itself

far

attention

than

give it today.

can

Such

will

Defeat Will Not Be General

Hearn

Streat

Frank M. Stanton of First Boston

It is clear from what I have said

Corp.,

trend of the stock -market will he

The

the

have

defeat
how¬

overcome,

begin

the

discount

Manning Barr, Barr Bros.; F.
Putnam & Co (Hart¬
ford, Conn.), and Henry G. Riter
3rd, Riter & Co., for two-year
terms; Robert E. Broome, Guar¬
anty Co.; Sumner B. Emerson,
Morgan Stanley & Co., and Ed¬
ward
K.
Van Home,
Stone &
E.

longer

improvement in earnings and

selective

market

will

character

throughout the period

the

continue

probably
as

Bosson,

Webster and Blodget,

dom¬

year

inating
far

influence.

reaching

and social
or

the

all

men

there

Stewart,
& Co., Inc.
Legislation—John R. Montgom¬
ery, Blair & Co., Inc.
Municipal—Francis
P.
Gal¬
lagher, Kidder, Peabody & Co.

plenty

well

committee Chair¬

appointed:

Harriman Ripley

in public dis¬

should

were

Education-—R. McLean

changes that will occur

opportunities

Inc., three-

terms.

The following

political

economic,

will be implied

cussions
of

With

over

Wall Street.

can

and

wards

both

guns

in large volume.

To^

able

butter

have

Japanese

the

end

the

These considerations lead me to

phase of the war, if it should be

believe that there will'be a very

prolonged, civilian production will
have
recovered to
a' very
high

sharp
contraction of corporate
profits
imhiediately
following
Germany's defeat. A great pro¬
portion of the decline will be ab¬
sorbed by the reduction in excess

profits taxes but even after taxes
there

will

serious

decline.

qualification
to
make, however, is that this de¬
cline will not be general. It will
The

important

concentrated

are

of
not

to offset a part of
with civilian produc¬

decline

tion within
It

and which

position

the

industries

cancellation

scale

large

contracts

war

particularly vulnerable
decline in volume arising
are

will

severe

tions will
suffered
war

joyed
ness

great

type

many corpora¬

not be affected seri¬

Corporations

ously;

from

that

impact

the

have
of the

corporations that have en¬

large volume of war busi¬

a
in

addition

their regular

business should not suffer
too much, particularly if they are
heavily in the excess profits tax
peace

diversified profit
experience among individual in¬
dustries and*- companies is sug¬
gested by an* estimate that among
the 30
industrial stocks of the
widely

Dovv-Jones

months
and

cline
of

after

Germany's defeat
to show a de¬

areflikely

the

half

continue for
two

years

year

while

and a
fight

Japan,

the

level

business to¬

wards

the

end

that

should

large enough to

substantial increase in

period
result
profits

and dividends from the low point

the

even

beginning of the period,
high rate of excess prof¬

large volume of

business and
a
large

war

benefit

would

also

from

deferred demand for their civilian

railroads
would
relatively
high level, carrying an increasing
volume of civilian goods as well
as
a large
volume of war goods.
Heavy industry would be in a far
better position than if the Jap¬
anese phase of the war should be
over within a short period of time.
The

products.

continue to operate at a

A WELCOME HAND TO BELL SYSTEM WAR VETERANS

Some

earnings.

stocks

The earnings
the

Dow-Jones

Industrial 6'verage are

unlikely to
decline below $8 a share before
contingency reserves as compared
with $10 a share after such re¬
serves
this year.
Dividends are

of unlikely to

below $5.50

who

ings and Dividends Possible
The

improvement

reduced.

are

better than

will be

profits
anese

tion
year

rate

phase is
might be
1946.

continue

believe

even

there

in the

before

applicable

Japanese

war

are

warm

again.

Jap¬

men

in the armed forces.

55,000.

welcome for the

and energy

the

be glad

they join
to see

demand for civilian

the as against $6.40 a share this year. war.

satisfied

while

are

still

BELL

This applies particularly to

them

for the big tasks which face the Bell

products will

shall be glad of their skill

considerable part of the deferred

women

We shall have

us.

rest

System in the future.

should

through 1945 and 1946

Not only shall
we

and

They number

Some 3500 released from

already back with

personally but

This reduc¬

over.

shall have the pleasure of welcom¬

excess

the

than

service

chance that there

reduction

tax

the

would

are now

earnings
partic¬
ularly great if the Japanese phase
of the war is prolonged and at
the same time excess profits taxes
dividends

and

day

ing hack to the Bell System the

Substantial Improvement in Earn-

bracket.
The

should

civilian production
this
improvement

increases.

industries would continue t6 enjoy

of this

high labor and overhead^ ex¬
penses.
On the other hand, it is
a

siderably

particularly

industries

that

ing Germany's defeat, the volume
of business should improve con¬

its taxes continues in effect. Many

with

clear

after the
follow¬

initial shock immediately

short period of time.

naturally
in

level.
Under these conditions,

for

Phelps, Fenn & Co.;Stuart R.Reed,
Paine, Webber, Jackson & Curtis,
and F. Kenneth Stephenson, Gold¬
man, Sachs & Co., one year terms;

re¬

before the market is likely

ever,
to

Germany's

committee

Boston Corp.; Augustus W. Phelps,

The

years.

immediate hurdle of the

percussions
will

two

executive

the ensuing year will be composed
of Frank M. Stanton, the First

and that the Dow-Jones
Industrial average may rise sub¬
stantially above the present level
upward

within

unopposed.

was

the neces¬
be made
longer period of time while
business
is
still
operating at a
relatively high level. I am assum¬
ing and I believe that we have
enough overall capacity to main¬
tain a large volume of both war
and civilian production during the
Japanese phase of the war.
We
readjustments

sary

Blair &

ci¬

the

Inc.,
Secretary-Treasurer.
The slate proposed by the Nomi¬
nating
Committee,
headed
by

vilian economy because

will

Profit Decline After Germany's

The

implications.

conversion

the

ease

Willard

will

events

course

have -important'

ultimate

that I believe that the longer term

Germany's

soften

steps to
that

storm

economic

Association

Co.,

the

dividends.

defeat
will
depend
upon the character and-length of
the Japanese phase of the war. It
is my opinion that the Japanese
phase will last longer than the
average Wall Street observer as¬
sumes.
It will probably last over
vention. How far such controls of a year and may last more than
our
economic life might carry is two years. This means that Amer¬
anybody's guess. Certainly many ican industry will pass through a
controls and regulations aimed at prolonged
period
of continued
stabilizing prices or volume will very large war production while
be welcomed by industry after the converting to civilian production.

Frank

elected

and

The

market

of the

trend

has

justment following the ending of
the war with Japan will be more
serious and prolonged.

Germany's Defeat
The

Group

Bankers

Reynolds <Sc Co., Chairman. John
C. Maxwell, Tueker, Anthony &
Co., was chosen Vice-Chairman;

consumers'

for

York

New

Investment

read¬

that

result

term

magnitude and the serious¬
many of these problems
been
widely discussed.
I

have

demand

deferred

selective.

ness

remain within

will continue to

The

large quantities of goods for civil¬
use
immediately.
Some of
these industries are already doing
so now.
A substantial part of the
goods will also be satisfied.

Group Of IBA Names

Wilfard Chairman

ian

Germany's collapse.

Industrial average, 12
government policies and labor de- may show
approximately the same
rands will hinge upon reaching
earnings alftn 1944 during the 12

this goal.

immediately after

materials, plants and la¬
civilan production. These
problems are on the whole likely
to
be
handled
reasonably well
raw

bor for

particularly
true under present conditions.
In
the first place the' excess profits
tax burden has taken the edge off
the constant effort to keep costs
lown. In the second place the na¬
tional policy will be to maintain
rage rates and employment at the
lighest possible level. The free16m to adjust costs by reductions
in
wage rates
and employment
nil be very limited and will be
nrcumscribed as compared with
>re-war days,. Wide publicity has
>een given the concept of full emapt

cellations and the prompt release
of

from

market

stock

whole should not decline seriously

tin the volume of sales is bound to
throw out of balance price and

relationships.

the

quate settlement of contract can¬

which

This

flected in the stock market at to¬

vate

immediate

(prices, Wages and other costs. A
(sharp and perhaps sudden decline

;ost

diversity of profit experi¬
after Germany's defeat is re¬

the removal pf
government equipment from pri¬

improvements takes time and will
not be of major assistance in the

of foods and

[raw materials, and a declining
[trend of-.prices-of many products

This

day's prices.1 Obviously stocks of
companies that will be badly hurt
earnings wise are selling at rela¬
tively low prices in relation to
current earnings and past price
ranges.
This of course does not
mean
that they will necessarily
maintain even these prices when
earnings shrink, but it does mean
that any price decline that they
may have should not be serious.

question, however, that they are
fluence'will
diminish
at
least
generally appreciated either by
temporarily when our economy the
investing public or by indus¬
loses a great deal* of its steam and
try. Many of the problems will
we
are
again confronted with
prove so great that they can be
m'any of the economic and social solved
only
through continued
problems of pre-war days.
government controls and inter¬
:

Ahead

ence

which

is now being pro¬
heavy volume. These in¬
dustries have virtually no con¬
Reflects Problems version
problem and can supply

Market

new

and

duction

;

Stock

methods of pro¬
new
labor
saving

utilization of

of machinery and equip¬

duced in

This

1603

TELEPHONE

SYSTEM

THE COMMERCIAL & FINANCIAL CHRONICLE

1604

NOTICES

DIVIDEND

Post-War Interest Rates

^CANADIAN PACIFIC
RAILWAY COMPANY ^

Dividend Notice

Informed Public

Key To Success
Of World Agreements: Burgess

(Continued from page 1581)

stability to the aware of this situation and are
(It is unlikely always seeking to pre-determine
that these statements, made dur¬ the differences between the prob¬
ing
a
political campaign, will lems of history and those of the
change after the
elections are future which might be inspired by

favor

continuing

existing pattern.
At

meeting of the Board of Directors
dividend of two per cent, (fifty

held today a

the Ordinary Capital
Stock in respect of, and out of earnings for
the year 1944, was declared payable, in
Canadian funds, December 1,1944, to Share¬
holders of record at 3 p.m. on November 1,

cents

1944.
-

share)

per

•/

•

By order of the Board,
FREDERICK BRAMLEY,
Secretary,

Montreal, October 10, 1944.

similar causes.

concluded.)
To this "intent" of both

political

parties we would like to add the
points previously made in June—
that the low interest rate phe¬
nomenon
is not one common to

that

the United States alone, and

give

considerations

technical

indication of operating on
the side of political desires dur¬

GAS

ELECTRIC

The;
.

declared this day the
Cumulative

No. 72,

Board

has

following dividends:

6% Preferred Stock. Series A

quarterly, $1.5-0

per

•

Stock, 5% Series

'Cumulative Preferred

•/

Directors

No. 62, quarterly, $1.25 per

5% Cumulative Preference Stock
No. 51,

quarterly, $1.25

per

Common Stock

'/;/ '

payable

.record

;

No. 41, \0<f. per share

November 15, 1944, to holders of

close of business October 20,,-1944.

the early post-war

least,

' /

/r'-:

Confidence In

Stability Has Been

Illustrated.

matter

fact,, the ex¬
tremely strong tone to the mar¬
ket for fully taxable issues which
followed the raising of 22 billions
a

Fifth War

Loan

Drive, caused some close observ¬
ers
to
fear
a
tendency toward
lower rates for this section of the

market

extent

Secretary

pierced in the direction of a
yield
pattern.
Certainly

committees

have

refrained from taking a
position - until they * have devoted
as

yet

time
to
these
important
questions and have made sure that
any position they might recom¬
While
we
may
not like the mend would be supported by a
"possibilities" ;that some envision, substantial
body" of
informed
one
of them has been
outlined, opinion in the organizations they
last February, by the editor of represent.
a

the

London

which

paper

"Economist"'

read before the

was

Manchester Statistical Society. He
started out "to
discuss possibil¬

From my contact with all three

of these

committees

that they, are

you

effort

arrive

can

making

assure

every

constructive

If we are to avoid
not to propound policies." conclusion.
first, subjected the ..classical, another world war we must estab¬
description, of the functions of a lish, new' instruments of interna¬
Commercial bank to the changing tional understanding and cooper¬
conditions of the past 80 years ative action, not only in the po¬
and
then ventured the thought litical and military sphere but in

international

that traditional patterns of bank¬

the

ing, practice
priate" and

liabilities
earn

"no

are

that,

longer

effect,

the

ap-

the

should

banks

their profits rather than the

then

assets.

should this prove

suggested

that

could

fects

well

"provide that

area
as
well, for
ignore the political ef¬

smoothly

economic

operating

cial mechanism
cessary

causes.

world

one

finan¬

of the

ne¬

bases for world trade.

performed

important service in
compelling us all to think vigor¬
ously about -this/ problem, and in
bringing to bear on it not only
opinion in this country but from
an

The

eign relations has been unsatis¬
factory. After the 1st World War
the. Senate rejected the peace
treaty
negotiated
by
President
Wilson.

declined

partici¬

pate in the League of Nations, the
World

Court,

and

International

broke

ment

nomic

Eric

Johnston":

treaties

wonder

believe

after

democracies

effectively."".If

position
must

world

not

war.

leaders

must find

effective

want

insuring

the

genuine

leadership

only

mechanisms /for

not

we are

and maintain any

secure

ting

the

totalitarian

that

function

recently

Senate would fail to

our

approve

Stalin

Marshal,

wonder
v

whether

Govern¬
the London Eco¬
our

Conference.

asked

Bankv for

the

Settlements.

action of

1933, the

The United States Treasury has

to be the' com>

monly accepted view of the future

economic
cannot

effective

collaboration?

record of the United States in for¬

ities,
He

itself for

prepare

peace;

for

means

get¬

people to work them
out and then stick by them. ''
our own

What, then, is the answer?
Is
it in doing away, with the twolong, me¬
thirds majority required for Sena¬
standing
characteristic
of
the
A Quarterly Dividend of $0.45 'per share has
dium, and floating, should be in¬
torial approval of treaties, as so
summer markets for these secur¬
beer, declared on .the stock, payable December
terest-free or, if it remained in¬ other countries as well. Our prob¬
9, -1944, • to- Stockholders of record as of the
often suggested?
ities and implies an increasing
That proposal
close of business November' 18, 1944,. •
terest-bearing, that any profits lem now is to examine these pro¬ should be soberly considered, but
confidence in the early post-war
JAMES L. WICKSTEAD, Treasurer
over
a
stipulated level be paid posals sympathetically and make I doubt whether it
stability of the interest curve.
goes to the
that
we
reach
a
solution
over
to the Exchequer; further, sure
heart of the difficulty.
The Impractical Aspects of Ortho¬ that the rates of interest charged which is sound and adequate and
The real problem seems to me
We must not repeat the
TRIUMPH EXPLOSIVES, Inc.
to
non-Governmental borrowers, lasting.
dox Analyses.
the relation in our democracy be¬
after the last war
short or long, could be decided in experiences
Some, however, continue to at¬
The Board of Directors of
tween Government action, expert
accordance with general economic when we flooded the rest of the
tempt to persuade us that the fu¬
Triumph Explosives, Inc., has
and public opinion.
world with our money for a pe¬ knowledge,
ture of interest rates is all in the policy."
declared a dividend of twenty
riod of years and then suddenly Old World or totalitarian methods
If we attempt to relate such
higher interest rate area. ' This
cents (20(0 per share, out of
The
stopped. There is no lasting vir¬ do not fit our democracy.
gives rise to the question as to possibilities to this country we tue in
earnings for the year ended
making bad loans.
The Executive may propose, but he
whether or not too close adher¬ must admit that we have two sit¬
conclude
July 31, 1944, on the com¬
plans we adopt in this field must cannot
arrangements
uations confronting us that would
ence to so-called orthodox lines of
mon
stock of the company,
also
fit logically
as
part of a with other countries unless these
thinking is practical, in view of give rise to just this type of dan¬
payable on November 16,
larger economic and political pro¬ arrangements interpret truly the
the
!
major changes which have gerous possibility:
will of the people.
1944, to stockholders of rec¬
gram, including provisions for se¬
Our repre¬
taken place in the importance of
?
(1) Should the, end of hostili¬ curity and for world trade. Any sentatives go into each negotiation
ord at the close of business
interest rates to political govern¬ ties be reached by the end of 1945,
on November
8, 1944.
plan we adopt must be consistent with a body of silent partners, the
ments.
Orthodox thinking tends it seems
probable that the public with the firm preservation of the American public.
Benjamin F. Pepper,
This is often
to set against the intent or wishes
debt, when the >costs of war are integrity of the American dollar. embarrassing.
President,
But if those silent
October 4, 1944
of these political-governments the
paid
for'/ will amount to $300 It must also envisage a program partners are
ignored, as has hap¬
presumably greater power, of the billions or more./' This will call for Great Britain'and the pound
pened all too frequently, when the
laws of supply and demand for for an interest
charge of between sterling.
/.
V,. >-/
final decisions must be made they
Attractive Situations
money and credit.
Since confi¬ $5 and $6 billions
pei^annum (un¬ / The time which is being taken often refuse to sign on the dotted
Common
and
6%
cumulative dence in the future stability of the der a debt structure' which con¬ to
study these matters is not lost line, and the results are even
interest pattern is a prerequisite tains a
convertible
preferred
of
the
large proportion of short time for it gives an opportunity more
embarrassing.
for
that
continued
stability, it and, therefore, lo\yer-than-averAmerican Bantam- Car and Pan¬
for the emergence of other aspects
In the field of international re¬
ama
Coca-Cola offer
attractive might be well to analyze the pos¬ age interest rftxe securities).
A of a well-rounded international
lations we can secure the respect
situations according to circulars sibilities of situations in which the moderate decrease in the amount
program without which Bretton
of foreign nations only on one
issued by Hoit, Rose-& Troster, 74 normal functioning of such laws of. the floating,: debt might well Woods would be ineffective.
In
condition.
That condition is that
Trinity Place, N. Y. City; Copies might operate against the intent hold the interest at the $6 billion particular it is cheering to see
we
will not recommend a pro¬
wishes
of
political govern¬ level for early "post-war" years.
of
these
circulars may be had or
progress made in provisions for
lower

Site.

Spencer Kellogg &

three

Threat to Private Banking

the

that

Treasury financing pattern might

Dale Parker

\ October 9, 1944

of dollars in. the

share
.

ing,

years,

CORPORATION

(Continued from .page 1579)
All

tion.

Higher Interest Rates Are

every

COLUMBIA

Thursday, October 12, 1944

been

Out¬

an'

all

has

"confidence"

Government

part of the banks' holdings

debt,

„

1a4,

from the firm upon request.

ments.
We

■

are

degree

Situations Of Interest
F.

Roller

foreseen

(1)

Co., Inc., Ill
Broadway, New York City, have
prepared a memoranda on Great

■

all

•; /•..

familiar

with

the

by " which the problems
by orthodox analyses of

deficit financings of the
and (2) those of war fi-

the

1930's

aneings, were sidestepped by Gov¬
ernment control authorities.
It
seemed
that
many
orthodox

If, however, we are to honor, in
reasonabler degree,
sound
principles of national finance, we
Some

political security which is basic to
any economic program.
It is my
belief also that we have made sub¬

shall /have to provide a sinking
fund for this indebtedness.
If re¬

stantial

payment of debt is scheduled to
dbver a 100-year period this does

derstanding

progress

ton Woods

since the

Bret-

conference in the

these

un¬

monetary

problems, I should like to com¬
mend especially to your attention
essarily be discharged at the end the searching analysis of the prob¬
Christy Clay Products and In¬ thinkers failed to take into ac¬
Of that time, but simply that we lem by Dr. John Williams in the
diana Limestone which the firm
count, in the first place,- the de¬ will have taken prudent steps to latest issue of "Foreign Affairs."
believes appear attractive - at cur¬
gree
by which Government ac¬ /reduce it so that when the next
While I cannot report to you
rent levels.
Copies of these in¬ tions could affect the various fac¬
emergency comes up we can more
to-night any final conclusion on
teresting circulars may be had tors which make
up the supply safely again expand it.
Such a this subject, I should like do com¬
upon request from F. H. Roller
and demand of money and credit;; sinking
fund would require $3 ment on one intensely practical
& Co.
billions per annum and thus the
and, in the second place, there
question which has been brought
was
a tendency to
underestimate total burden of debt would repre¬
vividly before us by the Bretton
the degree by which Government sent a $9 billions cost item in our
Woods conference and the meet¬
Stoker Looks Good
could
first peace-time budget.
first, impose,
and then
Reduc¬ ing at Dumbarton Oaks, and will
to
be
accepted,
what tions in. this large sum will un¬ be with us increasingly in coming
Large potential demands for cause
railroad equipment, both here and amounted to nothing more than a questionably be the objective of
months, and that is a questioh of
well-meaning
men,
and method:r how can this country
abroad, including locomotives de¬ purely'' arbitrary rate >. structure. some

American

Industries,

Laclede

pendent upon mechanical stokers,

The

fact

that

"orthodox

some

hot

mean

many

that the debt will

nec¬

political demagogues.

effect (of the :
(2) In spite of the relatively low terest rates to change upward, re¬
laws
of
Stoker Co., Inc., most attractive,
supply
and
demand level of interest rates, bank earn¬
gardless of the causes, will in¬
to
accurately
predict the
according to a recent memoran¬ fail
ings, generally speaking, are com¬ crease the pressure for changes in
dum on the situation prepared by facility
with
which
Govern¬
fortable today.
Moreover, as the the traditional pattern and role of
G. A. Saxton & Co., 70 Pine Street, ment could handle these problems
end of hostilities approaches large private banking.
Thus the minor¬
New York City.
Copies may be of the last decade, does not, of transfers of public debt will begin
ity who hold that upward changes
course,
mean
that
Government
had from the firm upon request.
to take place with the commercial in interest rates are "inevitable"
controls would always be effica¬
banks
representing
the
major may actually be envisaging a new
cious.
The chances favor, how¬
source of buying power. This will
and far more difficult problem to
ever,
that Government will be
Post-War Prospects
correspond with a time m which handle.
able to achieve its desires for an
it is assumed that a greater de¬
The common stock of Bird &
For our part, we continue to be¬
indefinite period because the ac¬
mand for funds/via loans to in¬
Son, Inc... offers attractive possi¬ tions of Government involve, in
lieve, and we feel that this is an
dustry,
mortgages,
etc.,
might
bilities for participating in the
opinion
which is being more
mgny
instances, the substitution
also be witnessed. It seems likely,
widelv shared than ever before
building boom which seems due of a new problem for an old one.
therefore, that bank earnings will that the pattern of interest rates
after this war, as after the first Substitutions can be devised to
continue
toward ; higher
levels established
World War, according to a study
by
war
financing
carry us over ra long, period of
during/the post-war years—even needs •. will carry - well into the
of the situation prepared by J.
years and in the end are likely to
if interest rates remain unchanged
Roy Prosser & Co., 52 William bring
us
post-war / period,
and that the
up- against
different
or tend somewhat lower.
Street, New York City. Copies of problems than those which we
changes in this pattern,
nnv
If we combine these two condi¬
this interesting study may be had might originally contemplate. Ca
may
well
be
toward slightly
make

the

outlook

for

Standard

analyses

the

from the firm upon
requ~sir

pable

students
.

constantly

are
i

*..

l.i.-ti, 1

tions,, then
.

any

!'•<. ..i.'t

tendency for in- easier rather than firmer rates.
J.,.. It

•

,/i

.:!.*• ).

-Ml.t'l

!>'

'4..

the

for

gram

other

nations

consideration

unless

have reasonable
will

own

but

essential,

possible, let
solution
three

that it

assurance

acceptable to our
This
is
difficult,

people.

already

practical as
suggest that the

the

areas:

problem lies in
higher quality of

government service;
formed

public, and

better in¬

attention

bridging the gap between gov¬
ernment and public when treaties?
and
are

other foreign arrangements
being considered.
■
/
.

Not long

with

conversation

foreigners,,

some

called

ago.

the

quip

someone re¬

of .Will

that "The United States
but

war

ence."

never

won

To which

one

Rogers

never

lost

confer¬

of the for¬

eigners replied, "Well, if
sist

you in¬
sending out amateurs to

deal with professionals. what else

expect?"

can

you

need

fewer
If

amateurs

government

larger role
the

In other words,

professionals

oast,

going

lives

our

and

government.

fill

than

it is essential that the

duality of government service be
improved.
We need to realize
that being elected to public office
does not
a

automatically transform

.politician into

need

ing

statesman.

better civil service, draw¬

into

its/,

competent

upper

career

ranks
who

men

will

bring to the Government continu¬

ing

service

standard

the

same

high

of efficieorv and lrow-

how that; is demanded in private

industry;

have

■.

outstand¬

some

ing examples of such

,I..-

in Gov-

men
.«

«■

I.HA,«VIW.

J^j.. «M«

MMic#w«sswjinjsa

;ernment;.:service'.today, but there
are not enough of them, and most
of them do not stay long enough.
This

means,

must

find

service
more

that

course,

We need

attractive.

ability

of the seasoned

alone

;\ye

such

of making

ways

men

which

produce simple,
and
acceptable

can

understandable

Government programs,..

•

public opinion that will
support active cooperative poli¬
a

cies.

There is

way

to do this.

establish

quick and

easy

We need to re¬

faith in the in-

public

drawn into the
more

before.

Certainly ' the, academic

fraternity

As 1

heretofore.

than

retician

need

politician and theo¬
the show.
This

the

need
the

business

the

We need

man.

government which, in a
democracy, is the art of getting
of

art

sonal

politicians
need
to
understand
business, not merely orate about

for Govern¬
This is primarily a

responsibility

ment action..

job for
and

public school system
network of higher

our

vast

our

education.
this

Associations

such

constitute another valu¬

one

able mechanism for educating our

responsibilities of
yvy"
The third point, of bridging the
gap
between
Government
and
public, is one about which we can
the

people

citizenship.

something

v.first

shall

Our

here

We would do well to

-Pericles

words

posed plans for
ish

speech

all

need

men

'acquire

can

the

'*/

the proper

balance.

citizens

Our

both

attend

affairs

various

own

other

from

differ

States

the man who holds
public life not as
'quiet,' but as useless

.■

week

it is negotiated
with foreign statesmen.
No busi¬
before

would think of commit¬

ness man

ting his

company

important

From

inter¬

tatives have often entered

those that
ness

complete fal¬

lacy because the situations will
bear

rather than

contrast

com¬

parison.

;

the

After

last

Securities

the

neither

Commission

change

was

and

Ex¬

Securities

■

Let

practice

for

the

there

securities

and

racketeer

escape

method of proved value.
swindler. To become a registered
Treasury De¬
partment has faced a highly tech¬ dealer, muster of the Securities
and Exchange Commission must
nical
and
difficult
problem in
first be passed.
The Commission
arranging its program of Govern¬
has a power of visitation which
ment financing.
It is a delicate
a

For many years the

problem, as well, because the
plans and pricing of future issues
affect directly the current market
on

Government securities.

Department
about
1

has

letting

people

However,
worked

out

v,;;

secrets.'• .//

So the

careful

its

'-v.'

technique has been

calling into con¬
period

and

conference
For

available to it the records

makes

'upon

passes

securities

the

issues

the

It
of
in¬

first

and has created a system

stance,

certain

and

disclosure

dealer.
registration

and

broker

every

princi¬

ples dealing with the prospectus
which have stemmed the tide of
fraud.

.■

liaison

Its

seems

tunate.

What

jobs;

but

substantial
number
of ; representatives
of
banking, insurance and other in¬
vestors,

well

of the market.
serve

representatives

The Federal Re¬

the

AVOIDANCE

TYPES

SEEMS
NATE

which

road

mechanism

has

been

par¬

ticularly useful for this purpose.
As,a result of these prior consul¬
tations the financing program
gone so smoothly that we

has
almost

forget the difficulties of the prob¬
lem.

The key to the matter has
been advance consultation with a
group

education can,

Illustrating this, one of the con¬
in charge of the securities

ferees

of the New York At¬
General's office, William
McNulty, in giving his experi¬

division
torney
F.

of which the pro¬

consequence

grams

and

sensible

have, been

office again
lar

public opinion has been prepared
for their reception.

and again with simi¬

complaints.
THAT

MISSION

culty, but this makes it

CONDUCTING

even more

important that difficulties within
our

own

ranks

faced

they become matters
tional discussion.
the

same

before

of interna¬

Here I believe

general techniques can

be applied as

in the field of do¬

the

result

learned

the

good

war

deal

about

the joint operations
forces: theory,

tics.

Business

AND

PAIGN

THE

SHOULD
ARE

of this trio of
practice, and poli¬
men

have

been

WHO

SECURI¬

EXCHANGE

COM¬

NOT

THIS

because

PRIMARILY
BE¬
THAT ADMINISTRA¬

GROUND,
CAUSE
TIVE

BODY

JUDGING

e.g.,

WITH

SPREAD,"

THE
THE

"5%

OTHER

ALREADY
DUTIES.

the pub
bonds, that

As to the retention by

lic

Government

of the

the

Various

current

developments

important bearing^

conduct

tickets

Counter

matters

The

meeting will start promptly
M., and it is planned to
everyone seated for dinner

have

M.? after which outside

speakers will address the

including

assem¬

John Mason
Brown, U. S. N. R., who addressed
bly,

Lt.

the meeting last year.

three

;

that with

It, is also announced
the

presenting his views.

consent

tions

meeting, because of its na¬

FIELD

Public

the

Department

Rela¬

the

ture, will be confined to members,

TO
.

THUS

SUSPICION.

Coast

their

CHOSEN

AND

limited

their ideas, each

express

PERIOD

the

fred E. Loyd, Executive Secretary.

cers

POSSIBILITY

obtained

may

Remarks will be made by the offi¬

the

minutes

HAVE

hold the meeting
within the industry

office of the Association from Al¬

Over

tunity to

OTHERS

AND

Security Dealers
P. M.*
Sherry's, 300 Park Avenue,

New York

business.

the

partners, and heads of trad¬

Guard Quartet will appear. Mem¬

ing

departments.

Schenley Distillers Corporation

bers

dinner

-The

will
Due

just about

cover

Guard,

are

Gunner's

Sherry's must be notified by Oct.

Boughan,

20th

the food

reservations

regarding

Homer

Coast

famous

Smith,

Boat¬

2/c; Thomas Lock-

the ard, Storekeeper 2/c; James Lewis,

situation,

the

Mate

swain's

charge will be $6 for each person,

costs.

Mate

and, Martin

3/c,

Yeoman

3/c.

Francis

Boyle, Mus. 2/c, is accompanist.

and

have prepared an attractive book¬
let containing the first articles
in the series they

have been

Third National 6f Nashville Recommends

run¬

ning ih the "Financial Chronicle,"

Copies of this booklet may be had
upon request by writing to Mark
Merit, in care of Schenley Distill¬
ers
Corporation. 350 Fifth Ave..
New York 1, N. Y.

Tennessee For Posl-War Plants
The Third National Bank of

Nashville, of which N. A. Crockett

Crockett, Vice-Chairman and F. M. Farris,
consider the State of Tennessee
location.
f
;
1
;
The bank has direct contacts with virtually every line of Ten¬
nessee business and industry which places it in a position to answer
is

Chairman,

Watkins

President, is urging industrialists to
for post-war

Paul & Co. Elects
PHILADELPHIA, PA.—Edward
S.

Lewis

has

resigned

President

and

Secretary of Paul

t as

Vice-

&
as

questions regarding choice
trial

Sept. 30, 1944.
a

Directors
ter

Snyder

October

was

The

Third

National

grown from an

meeting of the Board of

4th,. M. Les¬

elected Secretary

and Assistant Treasurer.

indus-%,^

plant locations promptly and

accurately.

Co., Inc., .1420 Walnut Street,

018;l40
deposits

Bank

its opening
$73,635,503.98

June 30, 1944.

Hg surp,us and

profit account is
and total

In ad¬

capitalization of $lj-

J. W.

Montgomery Street, members of
the San Francisco Stock Exchange.
1

Shaw Hooker
(Special

SAN

Roy

to The Financial

FRANCISCO,

Bradford has

Chronicle)

CALIF.

become

asso-

Mr. Bradford for many years was

Co.

In the

past he was. a partner in

Filmer,

with

Dean

Witter

ciajted with Shaw, Hooker & Co., Bradford & Maxwell.

resources

undivi(fecI

$2,578,687.0A

$77,811,675.46,

Malmberg Co. Formed

(Special to The Financial

SAN

Chronicle)

DIEGO, CALIF.—J. Waldo

Malmberg has formed J. W. Malm¬
berg 1 &

Bradford With

now

has

institution of $1,-

deposits

day, July 18, 1927, to

dition

HEAVILY BURDENED BY ITS

MANY

are

favored."

HUNDREDS

ONE

organization's vote
which the
reported to have

the matter, a point

Russians

THE DELAY IN SOME OF ITS

DECISION,

aggression

•

the future life and

which

CAM¬

SOUND

DEALING

mestic finance.

have

TIES

THOSE

BELIEVE

WE
FEEL

Admittedly, negotiations with
foreigners offer additional diffi¬

major

City.

will be

DISHONESTY

FOSTER

accused

in the security

Russians

the

general dinner-meeting

member

CRUCIAL

THIS

called

whether

Security Dealers Association Meeting
Discuss important Current Developments |

which have

formed and influential
a

with

UNFORTU¬

POINT UP THE

ence, related that some investors
skilled, in¬ who had already been !duped, re¬
people, as turned to the Attorney General's

technically

out

ENFORCEMENT

THAT

SHOULD

meeting

The Board of Governors deems it necessary to

foremost

our

SECURITIES

THE

that

question

Power

document

and

New York

FRAUD,

AGENCIES

done

protect the gullible than
because the world
is built upon trust and good faith,
and the distinct tendency is to
believe in human kind.
more

the

to be held in the second floor ballroom of

Available On Request

,has

enforcement

"Still to be settled, officials say,
before

generally affect¬
;;
formation period.
•..
L. ing the Association.
The meeting will then be opened
WITH AGENCIES SUCH AS
to general discussion by the mem¬
THE BETTER BUSINESS BU¬
bers. Due to the element of time,
REAUS, ENGAGED IN EDU¬
and in. order to permit as many
CATING THE PUBLIC IN THE
members as possible the oppor¬

wholesome deterrent.
Law

explained to them the
worked

good inten¬

Reconstruction

properly

general United

paved with them.

usually

Association has been called for Thursday, Oct. 26th, 1944, at 4

tion may turn out to be another
for

brought up at

Nations conference.

Philadelphia

delegates

public will hesitate to
in
new
capital
issues.

block

technical

were

New York

make

State authorities has also acted as

program

Russian

British

capital

new

started

make

American

public

the

alarmed
invest

details which could

should be permitted to participate

The timing is bad. Dur¬

make

specific points to bring up during
their talks, it was said that when

particularly unfor¬

reconversion

will

the

their request for

enforcement

attempt

misanthropes

ing

expressed at the
approve it.

with

arrangement

sultation in the formative
any

wished

that

covered in
-

bring

security

agencies

ers

of the problems.
illustrate frpm national Commission

That opinion was

Today with the multiform pow¬ aim. Faith in our future is essen¬
of the Securities and Exchange tial to the success of the trans¬

citizens, and also keep the public
aware

Department. It performed an ex¬
cellent selling job, and can also
teach
an
excellent holding job.

the Na¬

nor

Association

tional

there

war

The
current
emphasis
without con¬ Dealers.
sulting either their board of direc¬ upon fair principles of trade by
equipped for the
tors, which is Congress, or their organizations
shareholders,
the
American enforcement of those principles
was virtually limited to the Blue
people.
Now, of course, you can't liter¬ Sky Laws of the States, many of
were - sadly
inadequate.
ally take every international pro¬ which
posal to the people.
What you Henpe the opportunities for de¬
ception were numerous, and there
can and should do is to call into
a
large
percentage
of
consultation at an early stage im- existed
portant
members
of Congress, chance that punishment might be
/...
v
technical experts, and informed avoided.

generally

were

"While the Chinese had several

program of education should be
in the province of our Treasury

about to wit¬

are

constitutes

national negotiations

single

American

not

"In¬
quirer", we take the following
Associated Press advices, Oct. 6:

(Continued from page 1579)

business conference without prior

understanding with his associates
and directors.
Yet our represen¬

found

they

with

organizations

plank guaranteeing racial equality
and decided that other points they

draft, at least by implication."

simple rule is
advance consultation.
A pronosed

people

Anglo

able

economic, social welfare

cultural

the future world peace agency.
"The Chinese, it was learned, did

the

talks

conversations

their work

because

the

and

that

were

their main ideas

"3. Provision for tying in inter¬
national

dele¬

the

entered

Russian

complete

aloof

Business, for

Russian

concluded,

regarding

very

international agreement ought to
be negotiated with the American

who

the

were

from

essentials

all

ascertained

was

after

These advices said:

Chinese,

with their knowledge of the city's.

grasp

British/and

gates.
:
"It

interfere

if the peace is broken.

worked out by the Amer¬

■

by the international organization

upon

one

ican,

public and private duties, and
dp not aflow absorption in their

The

fessors.

the

agreed

of politicians and pro¬
problem is to get

processes

peace or¬

delegates,

de-^

time-wasting

•,/■■
v
'■ •■■/.
/
'•
"2. A sufficiently concrete defi-r
nition of aggression so there could
be no last-minute backing down

Associated Press said that the plan

War to the

citizens -of Athens when he said:

mental

the

Chinese

without

bate.

the

the Peloponnesian

professors of

business

and(

manner were:

peace

ganization by the American, Brit¬

heed the

his

world

;

"1. Assurance that quick inter¬

reached were
Oct. .9.

national action would be taken, to
eliminate any threats
to world

Under, date of Oct. 6, when the
final touches were put on the pro¬

plan to devote some of the
time of its best people to the
national good. :
„,
•
;

economics
need a more practical understand¬
ing of politics, and a few months
or years of personal participation
in helping run a business.
Our
they

made available

must

in this

phases

conference the text of the

tentative proposals

implied.

"The main questions dealt with

With the ending of both
of the

own

our

included

concluded

were

Sept. 28.

business
interests.
It
organized
business

that

means

work
understand¬

hardest—we need an

it.

have

United

immedi¬

effective

ately.
The

where

look after

someone

specific

ing by each of these three of the
problems of the other two.. Our

particularly,. need—and

sian Governments-

ing

.And we

people to act together.

on the subject^
representatives
of
the they were satisfied that the prin¬
States, British and Rus¬ ciples they supported either were

among

problems we must make
government our business.
That
means something more than hav¬

the

the ,conversations

mental

on^the theory and
the ^ scholar.;: -: We
practical experience of
of

The
prac¬

business leader¬

Sectirity Conference Ended

second phase of the Dumbarton Oaks
Conference, undertaken to develop plans for an International Se¬
curity Organization, was concluded on Oct. 7 when the representa¬
tives of the United States, British and Chinese Governments brought
to a close their conversations which had been opened on Sept. 29. As
we
have heretofore reported -.(in our issue of Oct. 5, page 1511),

course.

conclusion

ship, for if business judgment is
to be brought to bear on govern¬

draw

learning

The

To do this places a special direct

responsibility

major calamity.

it.

about

find

ticable middle

run

ing population to read, and think,
and discuss; and to accent per¬

need, is

problem :is
whether business will take a walk

sensible,

cocked

off -half

towards the future the

and leave the

much
College professors go

faith in it.

look

Chinese Phase Of

Government Usually has too

represented

better

tegrity of our Government, so
that, suggested programs will be
taken seriously and studied care¬
fully.
We need to train our vot¬

example, tends to be impatient of.
all
talk : of - national - planning.

operations*of Gov¬
perhaps, than ever

ernment

would

.A second-thing we have to do is

develop

1605

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4324

Volume 160

Co.

with

Broadway, to

vestment business.
was

offices

engage

625

the

in¬

Mr. Malmberg

formerly with Blyth &

Co.,

Inc., and prior thereto was for a
number of years

ica Company,

with Bankamer-

Subscription rights will expire

of common.
Oct.

Calendar Of New Security Flotations
has

250,000

stock,

par

filed a registration statement
shares of class A common
10 cents per share, of which

25,000

reserved

are

for warrants

sold to underwriters.
Pro¬
will be used for working capital or
will

which
ceeds

Kobbe,

and

14,

Sept.

have pur¬

INC.,

LABORATORIES,

registration statement for 150,stock (par $1).
Of
the total 100,000 shares are to be offered
for the account of the company and 50,000
shares
for
the account ■ of stock¬
holders.
The proceeds from the sale of
100,000 share will be used for additional
working capital.
Proceeds of the sale of
the remaining 50,000 shares will accrue to

1964,

underwriters at $5

company

will

ceeds

use

LIBERTY AIRCRAFT

the

capital.

that

event

000

$20)

(par

stock

preferred

and

capital.

common

stockholders

Common

record

preferred stock
share in the ratio

the

and Van

principal

York,

New

E. H. Rollins &
Alstyne, Noel & Co.,

underwriters.

Filed

Sept. 16, 1944.

CO.

registration statement for 175,shares of common stock (par $10) and

has filed
938

warrants evidencing
subscribe for common stock.
Company is
offering to stockholders of
record Oct. 9, 1944, the right to subscribe
to the new stock at $10 per share on the
basis of one share of new stock for each
share of common stock held.
The rights
subscription

175,938
the

right

expire at 3 p.m. Oct. 27, 1944.
Any
of new stock not subscribed for by

will

stockholders

subsequently be sold by
Of the proceeds $10
allocated to the capital
Not underwritten.
Filed

may

direct.

the

company

per

account.

25,

Sept.

28,

Sept.

Details

1944.
1944.

"Chronicle,"

TUESDAY,
filed

share.

Feb.

List

issues

whose

SEC.

first mortgage bonds, 3

filed

OCT.

the

CORPORATION

$155,000,000

are

with

of common
of,record at the close of business on
Oct. 13.
Subscription warrants will expire
3 p.m. on Oct. 25, 1944.
The underwriters
will purchase any shares not subscribed for
by the stockholders.
Company will apply
$1,505,625 of the net proceeds to the pay¬
held

ment at 100% of all promissory notes pay¬
to

banks

the

aggregate amount of

has

Company expects that $4,500,of the proceeds will be used in the
improvement and
modernization of its
plants, and the balance will be added to
working capital.
Price to stockholders to
be
filed
by
amendment.
Underwriting
group headed by Blyth & Co., Inc.
Filed
Sept. 23,
1944.
Details in "Chronicle,"
Sept. 28, 1944.
MONMOUTH

PARK JOCKEY CLUB has

registration statement for $1,600,cumulative income deben¬
stock,
one
cent par value, to be represented by
voting trust certificates. The offering price
to the public of the debentures is par, al¬
though certain of the debentures are being
offered otherwise than through an under¬
writer at a price less than
100%.
The
common stock, voting trust certificates, is
being offered at par.
Upon completion of
the financing
the underwriter, Bond &
Goodwin, Inc., will be entitled to purchase
filed
000

10-year 6%

tures

and 230,000 shares of common

Net

and
selling
wadding and other

cellulose

Co.

Lehman Brothers,
and Hallgarten & Co.

being

the

—

offered

corporation

the

common

for

subscription to the holders of its common
the

rate

five shares of

price

held.

date

record

and

for

one

common

amendment.

The offering

due

serial

notes,

will

S-l.

the

company.

SILEX

;

COMPANY

statement

for

mon

stock

outstanding

has

par).

and

(no

and

■

filed

82,000

and

;

CORP.

Underwriting

com¬

is issued
represent

The stock

not

for

Alex.

Offering—Price to
filed by amendment.

the

will

public

INC.,

the

from

The

standing
resent

are

issued

and

new

the offering does
financing.
Allen &

(0 the

erred

rep¬

Co.,

New

and

Filed Sept. 30,

"Chronicle,"

1944.

filed

Address—412

Price

rate

preferred

the

Washington

ING

TRANSIT CO. has
statement for $7,000,00C
4% collateral trust bonds, due Oct. 1, 1964
Net proceeds will be applied toward re¬
demption of entire $10,888,600 outstanding
first lien and refunding gold bond*, 5 %
series A and series B, at 102%.
The series

Details in

merger,

proval

CO.
for

has

filed

30,375

Koppers

United

Co.,

formed

Co.,

Inc.,

for

carrying
stockholders'

providing

proceeds

financing will

tirement

Co.

notes,

Koppers

out
ap¬

obtained.

templated

all

and

Koppers

into

the

all

from

result

existing

and

the

of
and

Co.

of pre¬

ferred stock of Koppers Co.

state-

shares of 5%

utility

com¬

bonds

amendment.

Offering—The offering price to the pub¬
will

filed

tration

by amendment.

Proceeds—The proceeds from the sale of
new
bonds and preferred stock,
to-

the

cumulative
of

fillfed

has

INC.,
for

150,000

stock

preferred

The

common.

the preferred

regis¬

and

r; :•
:

M-J

■«

1
(

}■

1
w

rate

The

Address—Koppers

SERVICE

Sept. 30,
out

the

(par

—

the

new

preferred is not to exceed 4%%

the initial offering

price is to be hot

less than $102.50, nor more

.share.

preferred

the handling
dividend rate

exchange offer.

than $107 per

/■'

COASTAL

filed by amendment.

]

has

INC.

TERMINALS,

filed

Company

Pittsburgh,

organized

was

1944, for the purpose of carrying

plan of

the

merger

surviving

Koppers Co.

registration statement for 25,000 shares
common stock
(par $10).
Proceeds will
acquisition of land, equip¬
ment and for working capital." Price, to
Filed

$10 per share.
Not underwritten.:
Sept. 20, 1944. Details in "Chronicle,"

sept.

28,

public

will

filed

EQUIPMENT

all

applied

the

retire¬
shares

the

existing 200,000

of preferred stock of the Koppers Co. after
the merger and to pay off bank notes ag¬

gregating $4,786,624 of Koppers United Co.
Registration Statement No. 2-5499. Form
S-l.

registration

FINANCE

statement

CORP.

filed

14.000

for

4% cumulative series 2 preferred, ipar $100-

by amendment.

Proceeds—To

1944.

corporation.

Offering—The offering price to the pub¬

Curtiss

and

Price

and

employees, of

Candy

$100

Co.

its

and

Pro-;

share.
acquisition of factory and

ceeds for

house

officers

sold

company

subsidiaries.

per

ware¬

and
additional
trucks.
1944. Details in "Chronicle,"'

buildings

Filed May 19,

May.25.

■■

(10-9-44),
EXCESS

TIDE

WATER

registration

mortgage

POWER

statement

bonds

1974,

and

stock,

par

10,000

filed

has

CO.

$4,500,000 first
series due Nov. 1,

for

3%%

preferred

$100,

Address-—Tide

ton,

Water Building, Wilming¬

stock

are

offered

bidding.
filed

for

sale

Names

com¬

underwriters

Proceeds—The

net proceeds estimated to

from

the

may

required,

redeem

the
due

Feb.

the

principal

will

company's

bonds

amount

Registration

general

company's

first

1979,

used

mortgage

•

series

000,000
tures

No.

Form

5500.

Sept.

WELDER

CO.

statement for $2,-

registration

15-year

due

sinking

fund

deben¬

1959.

Dana

manufacture

War¬

E.,

to'

31 j.

May

29,

Unsubscribed:

be sold to Lumbermens

Mutual:

investment.
Filed May;
Details in "Chronicle," June 8,(

Casualty

for

Co.

1944.

j'/l
POWER

FLORIDA

CORP.

filed

regis-:

tration statement for 40,000 shares cumu-l
lative preferred
stock (par $100).
The:
dividend

rate

Net

mcnt.

will

proceds

supplied by amend-!
the sale of the;

from

together with addl-t
tional funds from the treasury to the ex-y
tent required, are to be applied as
follows-,;
preferred

new

stock,'

of 28,762

cumqla-l

tive preferred at $110 per share
$3,163,{)20;|
redemption of 5,940 shares of 7% cumula-f

donation to Georgia Power & Light Co; tc;

b,e used for redemption

welding

business
complete

machines

and

of certain of iu

securities as provided in recap plan of that:

payment to General!
Corp. for 4,200 shares of;

$1,400,000;

company

Electric

$6 preferred of Georgia Power & Light Co:;

and expenses $80,000, total $5,-1
Stock is to be offered for sale by!

$75,600,

peace-time
sale

and

resistance

equipment.

031,270.
the

pursuant

company

to *

Commission\f

competitive bidding Rule U-50,

and names]
underwriters will be filed by post-effec-?
tive amendment. The succesful bidder Willi

Peltason,

cipal

record

surplus funds.

and

shares will

Gas

Street,

Business—Principal
of

1944, on a pro rata basis,at $8 per share:
Net proceeds will be added to company'^

tive preferred at $52.50 per share $311,850;'

MACHINE

ren.

stockholders

present

Redemption

$6,065,500.

Statement

(10-9-44),

FEDERAL
has filed

Shares are to be offered for subscription

public

the

approximately $5,605,000, together with
cash

registration statement for 48,-i
of
capital
stock (par $5).j

981

OF AMERICA

INSURANCE CO.

1944.

by amendment.

Offering—Offering price to
will be filed by amendment.

such

filed

nas

capital

Underwriting—The bonds and preferred

37,856 shares
$100)
including
The

the

Underwriting—See above statement.

conditionally ap¬

financing.
Under the plan
to offer at competitive

proposes

and
Koppers United Co., under which it would

exchange
a't a

underwriters

be used for the

Busines

lic

Sept.

the

Tenenbaum

Co.

prin¬

are

underwriters.

Offering—Price

the

public

will

the

name

dividend

rate

the

stock

Filed July 21, 1944. Details in "Chronicle,
July 27, 1944.
■ 1
.

Proceeds—Will

added

working

•

'•

INSURANCE

COf

registration statement for

50,4

GERMANTOWN

S-l.

has

filed

shares of

(10-9-44).

FIRE

stock, $20 par, and]
certificates for
said
stock!
common

voting trust
Policyholders of Mutual Fire

Insurance

off

Germantown
TUBIZE RAYON CORP.
istration

preferred
rate

will

statement

stock

for

has filed

70,000

(par $100).

be filed

reg¬

The dividend

by amendment.

and

cellulose

and
of

Union

Securities

made by the

yarns

acetate

process,

Peabody

Corp.

head

etc.

Co.,

the

list

underwriters.

Offering—Price
filed

the

public

will

amendment.

preferred

trust

not

subscribed

eral

the

voting

Bioren

29,

June

will

at the

public

holders will

trust for
Co.

1944.
1944.

are

offered

same

be asked

to
a

price.

stock, par $100,

redeemable

f,1pd

first

period

i.mo4,

and

($1

par).

1' !-

'J'

■

The

Filec

"Chronicle,'
„

statement

convertible

maturing
45,000

gen¬

10 years

underwriters.

Details

registration

mortgage

series

the

All stock¬

deposit shares ir1

HANCHETT MANUFACTURING

•

..Li,,'

premiums paid by them upor
policies issued by Mutual.
Vot¬
certificates representing share:'

ing

May

Proceeds—Net
proceeds will be applied
to
the
redemption
of
$2,450,000 3%%
sinking fund debentures, due Nov. 1, 1956,
and
for
redemption of 18,395 shares of

respective
Insurance

Address—2 Park Avenue, New York City.
Business—Manufacture and sale of con¬
viscose

are
to
have
pre-emptive
rights to subscribe for the common stock]
at
$20 per share in
proportion to the

•n

the

under

sold

SEC

bidding

Building,

will be

?, f

14.

PUBLIC

200,000

dividend

Pa.

take

not

company

V-

1944.

proved

and

CO.,

statement

are

Aug.

VERMONT

(10-9-44).

KOPPERS

Underwriting—Kidder,

and preferred
will be offered for sale pursuant to
the Commission's competitive bidding rule.
Names
of
underwriters
will be filed
by

lic

to:

price to be filed by amendment for resale
to the public.
Offering price to the public
will be filed by amendment.
Filed Sept. 7,
1944.
Details in
"Chronicle," Sept. 14,

stock

Registration Statement No. 2-5498. Form
S-l.

holders

offer

re¬

debt

United

existing 200,000

con¬

the

funded

Koppers

tinuous filament rayon

Underwriting—The

registration

merged

Proceeds—The

pany.

cumulative
convertible preferred stock, par $20.
The
^referred stock is being offered to holders
of common stock of record Oct. 14, for
subscription at $20 per share on basis of
one share of preferred for,each four shares
pent

parent,

the

Read¬

Street,

Business—Operating public

AETNA BALL BEARING MANUFACTUR¬

RAPID

its

corporation

amendment.

stock

filed a registration

are

for

ing, Pa.

5, 1944.

Oct.

will

Filed

CENTRAL

000

has filed

EDISON CO.

statement

dividend

the

stock

public is $50 per share for the prestock- and $7 per share for the

common.

underwriters

offered, mainly,

Watts

capital.

$24,500,000
first mortgage bonds series due 1974 and
125,000 shares cumulative preferred stock
(par $100).
The interest rate on the bonds

out¬

not

supplied by amendment.

(10-6-44).

registration

elevator,

coke

Underwriting—Central Republic Co., Inc.

sale.

METROPOLITAN

and

York, head the list of underwriters.

The

house.

etc.

Registration Statement No. 2-5501. Form

has filed

Brown

Registration Statement No. 2-5495. Form

registration statement for 13,000 shares of
preferred stock, 6% cumulative, par $50,
snd 75,000 shares of common, 20-cent par
value.

by-product

bonds

and

82,000 shares are being
offered for the account of three holders of
common
stock who will -receive the pro¬
Proceeds—The

ceeds

head

design

the

real estate ;
one
million■
million bushel j

the

■

line

amendment.

purchase

construction

,people in the Alva, Okla., community who
are interested in construction of the grain

refined

and

chemical plants,

—

Address—212

Underwriting—Paine,
Webber,
Jackson
& Curtis, New York, head the list of un¬
derwriters.
Others
will
be
named
by

the

for

the

Securities

Baker,

Inc.,

S-l.

non-electric, as well as stoves,
water heaters and other equipment
connection with glass coffee mak¬

fund

and

production,

the

ELEVATOR

registration statement'for

10-year 6% subordinated sinking j
notes, due
1954.
Proceeds will, be]

CORP. has filed a registration statement ;
Corp., A. C. Allyn & Co.,'
for 37,856 shares of 4%% dividend series:,
& Co., Blyth & Co.,
preferred stock, ($100 par).
Company is
& Sons, Coffin & Burr.,
offering to holders of its 37,856 shares of
Inc., First Boston Corp.; Hallgarten & Co.,
$6 dividend series preferred the opportunity;
Halsey, Stuart & Co., Inc., Harriman Rip¬
to exchange their stock on
a
share'-for
ley & Co., Inc., Harris, Hall & Co., Inc.,
share
basis for the new 4%%
dividend
Hayden, Miller & Co., Hemphill, Noyes &
preferred stock, with a cash payment (rnd.
Co., Illinois Co. of Chicago, W. C. Langaccrued dividends on the $6 preferred' to
ley & Co., Lazard Freres & Co., Moore,
the date of exchange.
The cash payment:
Leonard & Lynch, Reinholdt & Gardner,
which is to be filed by amendment is equal
E. H. Rollins & Sons, Inc., Singer, Deane
to the difference between the initial public
& Scribner, Stifel,
Nicolaus & Co., Inc;,
offering price of the 4%% preferred stock
Stein Bros. & Boyce, Stone & Webster and
and the redemption price of $107.50 »per
Blodget,
Inc.;
Union
Securities
Corp.,
share of the $6 preferred.
All shares Of $6
White, Weld & Co., and Whiting, Weeks
preferred stock not surrendered in ex¬
& Stubbs.
change will be called for redemption' at
Offering—Price to the public will be filed
$107.50 per share plus accrued dividends.
by
amendment.
Following
the
issuance
Any shares of 4%% preferred which stqek-r
and sale of the
Mellon

Inc.,

ers.

competitive

as.

TERMINAL

PUBLIC

has filed

used

Pittsburgh,

crude

and

etc.,

coke ovens,

funds

registra¬

does

and

ranges,
used in

unknown

are

$250,000

$11,400,r

and

1944.

sale of

products,

construction

plants,

Business—Glass coffee makers, both elec¬

tric

Building,

Pliny Street, Hartford, Conn.

Address—80

proceeds

DAIRIES,

tar

will

financing by the company.

new

1964,

issue

Business—Engaged
coal

THURSDAY, OCT. 19
FOREMOST

Oct.

manufacture and

will

(10-6-44).

tion

ALVA
CO.

state¬

registration

first mortgage bonds,

Pa.

filed

Unsubscribed

bushel elevator, with a three

petitive

Registration Statement No. 2-5496. Form

offered

series

each

the underwriters to the public
at a price to be filed by amendment.
'
Proceeds—Will be added to the general

S-l,

SUNDAY, OCT. 15

will

Commission's

filed

Street,

Offering—The 99,960 shares of

with other
'unds of the company or other borrowings
will be applied to the. redemption of out¬
standing
$45,000,000
general
mortgage
mnds, 3%% series due 1962, at 104, and
$5,000,000 general mortgage bonds, 3%%
series due 1965, at 104%.
Filed Sept. 29,
1944.
Details in "Chronicle," Oct. 5, 1944.

Proceeds will be use for con¬
struction,
Filed Sept. 23, 1944.
Details
in "Chronicle," Sept. 28, 1944.

CITY

bonds

the

rule.

bidding

share.

TWIN

The

under

has

CORP.

products.

Wisconsin

1974.

sale

25,000 shares of common stock represented
by voting trust certificates, at one cent
per

paper,

Underwriting

offered

present below a list of Issues
registration statements were filed
days or more ago, but whose
offering dates have not been deter¬

whose

re¬

twenty

filed

Address—Koppers

Manufacturing

—»

allied

In¬

par.

amount

SATURDAY, OCT. 28

ment

white

stock

total

stock

Business

registration statement for $48,00,000 general mortgage bonds, 3% series

due

for the

be used

Neenah, Wis.

rate.

has filed a

POWER

and

unexchanged

any

will

(no par).
Address —128
N,
Commercial

may

YORK

sale

stock

registration statement for 99,960 shares of

$1,500,000.

NEW

pre¬

(10-6-44).

1944.

CENTRAL

exchange

KIMBERLY-CLARK

registration statement for 12,943 shares of
5%
cumulative preferred stock, par $50,
and 81,182 shares of common stock, par
$2.50.
The shares offered are issued and
outstanding
and do not represent new
financing.
A. G. Becker & Co., Inc„ New
York, is principal underwriter.
Filed Sept.
29, 1944.
Details in "Chronicle," Oct, 5,

has filed

receive

new

for

underwriters

common

UNDETERMINED

mined

KOPPERS CO.

Registration Statement No. 2-5494. Form

WEDNESDAY, OCT. 18

000

redemption of all the shares of present
preferred stock not exchanged pursuant to
company's offer.
v

INC. has filed

MOJUD HOSIERY CO., INC.,

would

each

the

S-l.

stock,

the

ment for $23,000,000

share of present preferred,

from

funds

stock

of preferred for each 8 shares

able

which

the

which

preferred

fraction

;

adjustment

stock

registration statement for 75,000 shares
common stock
(par $10).
Proceeds for
capital

basis

the

Proceeds—For

apply net proceeds towards
$13,500,000 first mort¬

W FINE FOODS,

AND

and
selling
wadding and other

cellulose

present
a

proceeds

OF OFFERINQ

DATES

outstanding $6

$51,150,663.

Koppers

ment.

bonds series due Nov.
bonds will be offered for
competitive bidding with the suc¬
interest

dividends.
The full
exchange basis will be set forth by amend¬

series due Oct.

the

filed

has

CORP.

par

Manufacturing

—

ferred for each

The

fixing

and

one

mortgage

bidder

preferred

new

stock

holder

of Northern Illinois

prior
preferred stock,
and $5, $6 and $7

(10-6-44).

Co.

$100, the number of
be filed by amendment.
—128
N.
Commercial - Street,

paper,

ferred

be used for
plant improvements and office and ware¬
house expansion.
Blyth & Co., Inc. are
underwriters. Price to public $16 per share.
Filed Sept. 28, 1944.

cumulative convertible
($100 par).
The shares
will be offered for subscription to holders
of cbmmon stock at the rate of one share

are

Consolidated:

Offering—The corporation is making an
offer to the holders of its present pre¬

82,000

preferred

the

sale

$1,350,000

products.
Underwriting— Lehman Brothers,
Wisconsin Co. and Hallgarten & Co.

are

changed from Oliver Farm Equipment Co.)
has
filed
a
registration
statement for

the

from

estimated

stock,

the

Registration Statement No. 2-5497. Form

allied

bonds, 4% series due 1966, at 195%
plus interest. Filed Sept. 28, 1944, Details
in "Chronicle," Oct. 5, 1944.

(name

to the

funds,

6,000 shares of 6%
stock at $110
per

preferred

Business

white

redemption of

OLIVER

general

pro¬

$2,000,-'

than

Neenah, Wis.

has

CO.

gage

THURSDAY, OCT. \%

the

preferred

and

less

not

KIMBERLY-CLARK

registration statement for $13,500,-

first

1974.

working

THE

bonds

with

stock

Address

CALIFORNIA OREGON POWER CO.

common

registration statement for 4% % cumulative

1, 1968, at 105%.
Additional funds re¬
quired will be supplied out of other funds
of the
company.
Halsey, Stuart & Co.,
Inc.,
are
named
principal
underwriter.
Filed Sept. 28, 1944. Details in "Chronicle,"
Oct. 5, 1944.

for the
stocks

public

and

WEDNESDAY, OCT. 25

Service Co.

Public

000

sale

received

preferred

accrued dividends. ;
will be added to

and

proceds

par,

may

commissions, in ex¬
change for $25,000,000 of first mortgage
3% bonds, series K, owned by 14 insurance
companies.
Net proceeds will be applied
toward the redemption of the entire $98,000.000 first mortgage 3% %: bonds, series
1, due June 1, 1968, at 105% and $80,000,discounts

Company will

registration

filed less than twenty

were

ago,

qualifying

s-i."(10-4-44). :■

matur¬

Filed Sept. 27,

EDISON

which

1977,

cessful

grouped according to dates
on
which registration statements will
in normal course become effective, un¬
less accelerated at the discretion of the
days

offered

being

Registration Statement No. 2-5493. Form

publicly offered.
The offering will exclude
$25,000,000 of series L bonds to be isued,
without
interest
adjustment
or
under¬

sale

statements

the

Proceeds

registration statement' for $180,000,% bonds, series L, due

000

NEW FILINGS

stock.
being

preferred

directors'

redemption

common

000 first mortgage 3

the bonds and

stock

preferred

together

the

premiums

quired
S-l.

com¬

preferred- stock are
the corporation,

except

cumulative

share will be

stock

sale

filed

writing
STANDARD ACCIDENT INSURANCE

and

estimated

redemption

dividend

se¬

redemption of $1,400,000 of first mortgage
bonds, 3%% series due 1961, at 104% and

Details in "Chronicle," Oct. 5, 1944.

COMMONWEALTH

the

000

classes

the

common

and

G0C,

redeem

debentures

additional working capital.

(par $20) at $25 per
of ode new share of

public by

the

Inc.,

Sons,

ten-year

utility.
of

public

three

Nov.

1944.

preferred for each 3% shares of common
held.
Rights expire Oct. 23.
Any pre¬
ferred not taken by stockholders will be
offered

and

Mobile,

the account of

the

from

1, 1954:
Debentures to be of¬
fered directly by the company at par and
interest..
Not underwritten.
Proceeds for
ing

Street,

offered for

rate

ceeds

PARK
INDUSTRIES,
INC.,
registration
statement
for

$250,000

stock,

the right to subscribe to

7 are offered

Oct.

filed

has

filed

100,000: shares

by amendment.
Proceeds—Company will apply

(par

LINCOLN

has

$1,400,000
Oct.
1,

the

net

working capital.
' i
Registration Statement No. 2-5502, Form
S-l.
(10-9-44).

cluding

due

Balance

funds

other

4%%, $20,330,500, series E 4%,
$4,684,000 and series G, 4%, $11,710,900

$7.50.
Francis

Offering-—^-Prices

"Chronicle," Oct. 5,
,vV': ; % '

Details in

27, 1944.
1944. ..V;'

160,000

50 cents).
The common
be reserved for
issuance
with respect to the exercise of
the
conversion
rights
of
the preferred
stock.
Net
proceeds of
the preferred
shares will be applied to the reduction of
a bank loan of $1,000,000,
and excess pro¬
ceeds, if any, will be added to working
stock
shares will

bonds

will

pro¬

PRODUCTS CORP.

insufficient

dividend

bonds

preferred stock, the company will use
its own
treasury cash to make up any
deficiency.
Not underwritten.
Filed Sept.

are

and

par
St.

are

company,
shares..

stock offered to

stockholders

series

and

by Consolidated Electric & Gas Co., parent,
which owns all of the common shares of

ceeds from sale of common

registration statement for 80,shares of $1.25 cumulative convertible
filed

stock,

curities

while

shares of its 7%
cumulative first
preferred stock at $115 per share, and the
balance of the proceeds will be added to
working

for

$100,

par

offered for

$1,110,210 of such pro¬
March 1, 1945, the

redeem,

applied

and

Co.

the extent required are

following securities: First mortgage bonds,

cumulative

CORP.

series

Business—Operating

The

9,654

SERVICE

Underwriting—All

the

has

De¬

1944.

statement
bonds,

naming the interest rate

common

share.

per

Higbie

1944.

30,

Oct.

petitive bidding, with the successful bidder

ratio of
one
additional share for each share held.
Subscription rights are exercisable on Oct,
17, 1944, and expire Nov. 14, 1944.
If all
of
the
common
shares offered are sub¬
scribed for it is estimated company
will
receive a net amount of $1,262,810.
The

Ala.

stock

owner

William
of 23,000 shares.
and

are

Utilities

company

shares of cumulative preferred

6,000

stock,

COMPANY, INC., has filed

holders

GAS

registration
mortgage

Address-—162

129,281
shares
of unissued
at $10 per share,
in the

of 27,000
Garstang as
owner
Brailsford & Co.,
and Shiilinglaw, Crowder & Co., Inc., Chi¬
cago,
are principal underwriters.
Offered Oct. 11, 1944 by above named
Kevers

Norman

"Chronicle,"

MOBILE
a

common
stock ' of
record of Oct. 16, 1944, rights to subscribe

shares of common

Carlton

and

Filed Sept.

Detroit.

first

registration statement for 129,281 shares
common stock
(par $10).
Company is,

granting
ELECTRONIC

added

underwriters

MONDAY, OCT. 23

of its series A and series
cost exclusive of accrued

VAN RAALTE
a

has filed a

the

cumulative,

MONDAY, OCT. 16

Faroll & Co.

tails

Filed Sept. 26, 1944.,
"Chronicle," Oct. 5, 1944.

Co., Kobbe, Gear& Torrey, K. H.
Newburger & Hano and

Co,,

Johnson

Chicago,

Co.,

Corp.,

interest, of $424,123.
Details

by Van Alstyne, Noel &
hart & Co., Inc., Cohu

000

common

1944 at $7,375 per

will

The

Bacon, Whipple & Co., and Rawson Lizars

1944.

Offered Oct. 10,

Joseph

subsidiaries

its

and

$418,600

bonds

Noel & Co.
Gearhart & Co., Inc.
Filed

capital.

$110 per

gether with $9,049,900 to be received from

the

for by

subscribed

not

Proceeds

stockholders.

1, •working

Dec.

by the company's
1%% and
2%.% serial notes and from other funds
of the company.
Since June 30, .1944, the
chased

Val Alstyne,

are

stock

evidenced

company

investment in U, S. Government securities
for
future
expansion
and development.
Underwriters

redeemed

are

and the series B bonds on Jan. 15,
1945.
The additional amount required for
the
redemption will be
supplied to the
extent
of
$2,000,000 from a bank loan
1944,

LABORATORIES,'

MONT

ALLEN

INC.,
for

bonds

OFFERINGS

Underwriters will purchase

1944.

30,

preferred

Thursday, October <12/1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

1606

serially

are

CO. ha:

for $450,00(

5%-%'• (bonds
from

1945 tc
stocl

common

reserved

foi

issue

Proceeds

bank

Piled

Price

loans.

to. 99.5

•maturities

"Chronicle,"

1944.

July 27,

statement

registration

convinced, lies largely in the
enormous
volume
of bank de¬

bonds

000,000 first and refunding mortgage

$65,000,000 2%% series due
Nov. 1, 1967, and $65,000,000 2%%
series
dire Nov.1974.
Entire net proceeds toconsisting of

106

The SEC has
denied
the
company's
application
to
exempt it from the competitive bidding
requirements of Rule U-50. Filed Sept. 20,
$137,800,000.

aggregating

Sept. 28,1944.

1944. Detail^ in "Chronicle,"
•

has filed

POTOMAC EDISON CO.

statement

istration

justed

njortgage and collateral trust bonds, 3 *4 %
$11,981,000

redemption

the

105,

plus accrued interest.
Bonds to be sold
at
competitive bidding.
Filed Sept. 22,
1944.
Details in
"Chronicle," Sept. 28,
,

1944.

tration" statement
stock

ditional

working
share.

per

Proceeds for ad¬
Price to public
Waddell & Co..
are underwriters.
Filed
Details in "Chronicle,"

capital,
Herrick,

New; York

Inc.,

1944.

16,

Sept.

1944.

Sept.' 21,

;

"•

,t.

CO.

FREEMAN

EUGENE

THE

100,000

for

($1 par),

common

regis¬
shares of

filed

has

total of $15 billions.
The
upward trend of demand deposits
will probably carry this total to
seven or eight times the 1933 fig¬
ure;
To express it another way,
1933,

$5,000,000 first mortgage gold bonds,
series
F, 414%',
at 107 Va,- in each case
and

RESISTOFLEX CORP.

have reached another all$79 billions. This is
than five times the June,

time high of

first

mortgage gold bonds, series E, 5%. at

United

posits

due 1974.
Proceeds from sale, with
additional funds of company, will be used

series

for

of $128,550,000,000. Ad¬
demand
deposits
and
States
Government de¬

time high

reg¬

$16,981,000-first

for

inflation

filed

registration statement for $300,000 trade
acceptances.
Proceeds will be applied to
organization expenses, acquisition of motor
trucks, real estate, buildings, machinery,
etc.
Filed
Sept.
13,
1944.
Details in
a

of demand
deposits will probably be five or
the

post-war volume

to¬

six times the normal pre-war

tal.

and

economists,

some

bankers, I am sorry to say, think
that the end of the war will in¬
itiate

trend

downward

de¬

posits because (1) unemployment
will be heavy, forcing the use of

will

people

(2)

savings;

States

United
completely

Government

Unless the

understand.

can

quite

are

different

industrial

machine

of meeting any

demand

probable reduction in

and the reduction in the take-

home pay

of many of the remain¬
ing employed, through elimina¬
tion of overtime, will be a psycho¬

reduce

tary, brake on inflation.
Then, too, corporations will have
ample bank deposits and shortterm Government securities to en¬
the

secure

year

latest

labor-saving equipment and meth¬
ods so that they can become low-

cost
producers. (The Anti-Trust
commodities which can¬ experts of the Attorney-General's
office
have
publicly announced
not be obtained during the war
because of scarcity and rationing; that they intend to see that these
(3) corporate deposits will be re¬ savings are passed on to consum¬
duced
by corporations spending ers in the foi-m of lower prices.)

very

high in the
Sales

ahead.

era

fi¬

STOCK
three

will

field

this

enter

the

two

which will

all others.

be-'

outperform

is based instead on

the

principle that it " is easier to
pick an industry which will do
well than to select a single stock
which will do well."

organizations, but the banks

ilar

method

tested

"This

duced.

gins by discarding the idea of
trying
to
pick
out
the
ONE

companies will not only
competition from sim¬

nance

next"

two?"

competi¬

keenest

look

low-interest

have

them

the

dring

price

thought low before the

will

war

em¬

people at the end of the European

able

which will advance most in

ONE

Consumer credit rates of change

ployment of four or five million
war

the

and

which we,

which will be placed upon it.
The

York

even

experienced will set in—competi¬
tion in. price, quality, service and,
please note, credit facilities.

produce the goods, i.e., it is

capable

Entitled, "Which Industries Will
Do

Discarding this task as an im¬
possibility, the industrial selec¬
tion which this country has ever tion method of investing is intro¬

selves

our

produc¬
here

after

But,

which I have already
will soon assert them¬

described

try which suffered inflation. In this
amazing country of ours, with its
fantastic production ability, infla¬
tion is a practical impossibility
because

while

the, forces

than

those which obtained in any coun¬

can

Will Do Best?

goods prices, at first,

resumed..

tion

Conditions in the United

States

for

ward

unsound, there is no danger of in¬
flation.

Which Industries

Best?", a booklet on New
Stocks, Inc. just issued by
Hugh
W. Long and Company,
production costs due to the shift¬
Ipc., 48 Wall Street, New York
ing of labor and skills will be
City, opens with the following
higher.
Demand will be very
challenge:
"Of the 1,231 stocks
great
for
refrigerators,
radios,
listed on the New York Stock Ex¬
washing machines and other dur¬
change, how would you like to
able
consumer
goods, and the
have the task of choosing THE
price trend will be sharply up¬

logical, as well as a direct mone¬

C;v

Many

than I

object

higher as the wage scale
taxes will be higher. Initial

and

future fiscal policy of the

hold

can

will be

familiar with

anyone

fear

banks of the United
$75,800,0000,000
of
Government securities, which is
the chief cause of the wartime in¬
crease of nearly $50,000,000,000 in
bank deposits.
The total deposits
for all banks has reached the allThe

ing.

States

first and refunding
3 Vity series due 1967,

bonds,

In durable

amazing wartime production

posits which will be a legacy of
wartime Government financ¬

$130,000,000

mortgage

How

not!
our

record

our

gether with treasury cash or cash aug¬
mented by; means of short term loans will
be used to redeem on or about Dec. 1, 1944,

prophets of inflationary

doom.

(Continued from page 1581)

CO.
has
for $130,-

ELECTRIC

PHILADELPHIA
filed

1960-64

1944. Details in

July 20,

Banking Services In
The Coming Credit Economy

101 for 1945
maturities.

range

for

lesson

should

and

can

conversion of , $450,000 ■ first
convertible bonds.
Underwriter,
Brooks & Co.. Inc:, New'York,
will be applied to the reduction,

upon'

nfortgage

1607

& FINANCIAL CHRONICLE

THE COMMERCIAL

Number 4324

Volume 160

earnest.

Records of the market apprecia¬

tion
registered by each of the
And, with their vast credit facil¬
ities installment interest rates will twenty Industrial Series of New
York Stocks, Inc. from April, 1942
tumble.
Manufacturers, too, who
to
August,
1944 are compared
will be largely independent of

the

because of their large

banks

with the action of the Dow-Jones
Industrial

for

Average

the

same

accumulation
of
A contrast with a lead¬
Government securities, will* Un¬ period.
ing company in each industry is
doubtedly increase their direct
and

deposits

I wish

could

included.

also

financing activities.
assure

you

that

Thumb-nail sketches of each of

the Series, a commentary on their
Post-War Outlook and reconver¬

THE MUTUAL TELEPHONE CO., HONO¬

HAWAII,

LULU,

for

statement

filed

has

registration

($10

100,000

pari

stock.
Stock will be offered to
holders of presently
outstanding 500,000
shares of capital stock at par on basis of
one share for each five held. Any stock not
capital

taken

by stockholders will be sold at pub¬
lic auction.
Proceeds for working capital.
Filed Aug.

16, 1944. Details in "Chronicle,"
Aug, 24, 1944.
THE

OLD

has filed

registration statement for 5,000

shares of $100 preferred stock,
lative

CORP.

DISTILLING

STAR

non-cumu¬

Price

mon-participating.

and

piiblic will be $110

per share; proceeds to
Proceds will be used for
construction of distillery, $250,000; working

$100,

company

capital, $250,000.
No underwriter named.
Filed Aug. 14, 1944, Details In "Chronicle,

1944.

24,

Aug.

VERTIENTES-CAMAGUEY
OF

CUBA;-—696,702

stock. ($6.50 par),

registered,
owned

Several

CO!

SUGAR

common

U. S. currency.

Of shrs.

443,850
are
outstanding and
the National City Bank, N. Y
have agreed to pur-

underwriters

-chase; $1;663,50Q of first mortgage'1 (cok
lateral) 5% convertible bonds of company,
Get.

due

owned ,by National

City

Bank, N; - Y. " Underwriters proposeHo

con-1

1951,

these bonds.at or

vert

prior to closing and

the 252,852 shares of common

received

stock which

underwriters on such
the 443,850 shrs
previously mentioned, will make up thr
tp'tal stock to be offered. Harriman Ripley
Co., Inc., N. Y.„ principal underwriter.
are

the

conversion, together with

Filed Mar 29, 1944.
W April 6. 1944.'

Details in "Chronicle,''
'

WESTERN UNION TELEGRAPH CO. has
filed
000

registration statement'for $24,603,-

convertible

terminate

stock

debentures

number

to be

and

inde¬

class

post-war business volume would

bring back old-fashioned volume
sion problems, together with lists
to the banks, but that is a false
of securities held and price and
hope.
Business in the aggregate
dividend records make the book¬
already holds enough cash and
let
a
complete
handbook
for
Government securities to do the

scription warrants will be issued to present
holders of -company's

(4)

high taxes will cause deposits to
be withdrawn to pay the tax"gatherer. None of these will cause
a
drop in total
deposits—only
transfers
from
account
to
acaccount and from bank to bank

without

ever,

constitute a teal

offsetting credits,
deposit shrinkage

shares of class

date

class

A stock

stock

to be supplied

or.

held

each

by amendment.

Proceeds

plus whatever general funds are
necessary will be applied to the redemp¬
tion

5 'c

Names
to be

18,

Dec,

bonds
of

1, 1944 of $25,000,000 25-year
105% plus accrued interest,

underwriters

and

interest

rate

supplied by amendments.Filed Ang.
Details in "Chronicle," Aug. 24.

1944.

,The directors Sept. 5 voted to direct the
officers to formulate plans to invite com¬
petitive bids for the

bond

new

issue.

competitive battle for the
sumer's dollar, of which I
say

con¬

shall

later.

brake

Another
our

over

better and closer

much

trol

inflation

-on

bank credit.

con¬

Regulation

powers

Deposits could be decreased by

have

they -already

the banks and the money

over

market,

of securities

shift

non-banks.

from banks to

Modern

;

total

war,

however, is so expensive that,

tate

pass

the

necessary

legis¬

lation.

decision

over

the

that it has

Public

jurisdiction

the proposed issue, the company has
to defer the issue temporarily."

decided

NY Bank Stocks

Compared

1 Laird, .Bissell

&
Meeds,
120
Broadway, New York City, mem¬
bers

of the New York Stock Ex¬

change, have prepared

detailed

comparison and analysis of New
York City Bank Stocks as of Sept.
had from the firm

;
:

...

upon

be
request.
may

Mallory Interesting

P. R. Mallory & Co., Inc., offers

ah interesting ..situation, according
to* an analysis prepared by Steiner,
-Rouse & Co., 25 Broad St., New
York City, members of the New
York Stock Exchange. Copies of
this analysis may be had from

Steiner,
quest.

Rouse

Co.

upon

re¬

92%

of the

well

effective

posits, this indicates that the im¬
mediate post-war borrowing will
be largely confined to the smaller
concerns.

Thus it is clear that banks must

outlets for their
credit. For example, some method
miist be developed whereby banks
can
safely extend to small and
medium-sized business enterprises
develop

Attractive Situations

and mining

deposits was held in accounts
above $10,000.
Giving considera¬
tion to the great increase in de¬

new

Ward &

Co., 120 Broadway, New
City, have prepared circu¬

York
lars

several

situations

which

attractive^ possi¬
bilities, the firm believes. Copies
of these circulars, on the follow¬
ing issues, may be had from Ward
currently

offer

& Co. upon request.
Du

Laboratories

Mont

Merchants

Distilling;

Collier Publishing; P. R.

"A"

CrowellMallory;

Instead

lem

inflation,

the prob¬

be to

will

be sure, pools, such as those navox Corp.; Electrolux; Purolaproposed by the American Bank¬ tor; Brockway Motors; Mohawk
Moxie,
Scoville
Mfg.*
ers
Association, or
some
new Rubber,
mechanism will be needed to put Douglas Shoe; Bird & Son; Cons.
this business on a bankable basis. Cement "A"; Riley Stoker; and
American Export Airlines.
Yet, unless the present capital or

opinion,a reduction in • the
holding of Government securities

prevent deflation.
This will be particularly true for

by the banks, is not likely to hap¬
during ..the war or, for that
matter, in the immediate post-war

European war, especially in soft-

credit

goods where quality has been per¬
mitted to deteriorate. (Prices and
orders of sub-standard goods are
already very weak, just on the

care

pen

'■
•
Instead ol decreasing, deposits

period.
•;.

are

bound to increase for the re¬

banks continue to. buy Gov¬

invested

have

tions

Many

bonds.

ernment

corpora¬

billions

short time after the end of the

prospect of V E Day. Consumers
are
starting to hold off buying
with the expectation of getting
merchandise

better

in restrictions

are

surplus funds, and depletion and
depreciation: reserves in shortterm Government securities which

wouldn't be

shifted to the
banks to meet post-war conver¬
sion costs.
This may increase de¬

Purchases

will undoubtedly be

posits

much

another

$10

shirt

with

wartime

Who

relaxed.

willing to wait for
tail

Off

it!

the

record.)
and

storage

of food

rope

and

the

demand

from

Eu¬

will not be very great. Sup¬

term

port of agricultural commodities
by the Government will have to
be continued to prevent a serious
break—even

Likewise, the Treasury

billions.
will

probably sell additional shortsecurities to the banks to
funds to

meet the post-war

redemptions bf the United • States
Savings Bonds cashed by the gen¬

public. After the war, hoard¬
will decrease, money now
"burning", the pockets of war

eral

ing

workers will be
now

spent (circulation

i than $23 billions as

with

Government

agencies.
May I summarize my ideas as
follows:

increase

deposits.

All of this

bank

-means

est rates
or

This

economists

good place to pause
who

(?) to those
predicted run¬

prices during the war. De¬
spite their fearsome predictions
away

deposits of, say, ■ $150 bil¬
or " possibly
even
more,

pcfHrntiturai commodities has been

market

s^rmort.

than a ceiling, on

floor,

rather

prices—eggs and
must be reckoned with in your pork, for example.
The wheat,
planning; Does this mean infla-", y*
„.
jtt
sn
tion is to be expected? Certainly demonstrates what this country

lions,'

Also
dealers

available
is

letter

brokers

and

discussing the

puzzling public perspective on rail
institutional and public
look appraisal of which the firm feels

productive values,

period of low inter¬ is inconsistent.

with bank deposits five

six times the

normal pre-war

Bright Possibilities

total.

completely un¬
Giant
Portland
Cement is a
support a moderate decline seems sound fiscal policy on the part of
inevitable, the supplies are so our Government, I do not expect low-priced stock in an industry
with a bright future and offers in¬
large.
For example, the wheat inflation and, although psycho¬
possibilities, according
crop
promises to be some 12% logical factors which cannot be teresting
to a circular prepared by Lerner
larger than the previous all-time foreseen will have an important
&
Co., 10 Post Office Square,
record crop *of 1915.
The corn bearing on prices, the present out¬
Boston, Mass. Copies of this cir¬
crop of nearly 3 billion bushels is
look is for higher prices on dur¬
cular

the Government problem on many

that post-war

•

forward to a

and pay our respects

"earmarking)!' which will further

With the greatest

able

abroad,!' There is also a good
probability <lf an inflow of gold,
or at least a-release of gold fsom

capacity of all time, we can

soft

banks and credit request.

ploited by the

within 150 million bushels of the

billions

York

New

mortgages and similar avenues of ing rails. Copies of this calendar
credit extension must be fully ex¬ may be had from the firm upon

all-time rdford of 1942.

$4.7

Coming Rail Events
Vilas &

Hickey, 49 Wall Street,
City, members of the
credit,
installment New York Stock Exchange, have
loans of all kinds, real personal
prepared an interesting calendar
loans to individuals, private home of more
important events affect¬

and there will be a consid¬
erable
return flow of currency

wRh

Consumer

1929)

compared

in and do it, and that
try to avoid at all

step

should

costs.

supplies by the services will de¬
cline

agencies arrange to fake
of this need, the Government

will
we

from

30, 1944, copies of which

that

showed

raise

Due

Service Commission

presentation.

General
Instrument:
Long Bell
securities is an example of what the Gov¬
Lumber Co.; Great American In¬
can
do
in
regulating
held by the banks, if, and when, ernment
credit...
And, if the authorities loans for longer periods, similar dustries; Mid-Continent Airlines;
surplus tax receipts are available.
should need more power to do the to the term loans
extended to Massachusetts Power & Light $2
Or, a • differentiated r interest rate
conversion policy might force the job, the Congress would not hesi¬ large,; well-establish^ concerns. preferred; Majestic Radio; Mag-

Treasury .redemption of

the

each

total of manufacturing

for all banks.

which it

for

record

will

inaugurate

sales

study of ownership of demand de¬

posits

W; which gives the Federal au¬
thorities credit control of the con¬
sumer
in addition to the great

the individual bank,

must

mainder, of .the war and for some
time after the end of hostilities as

cost, too. This
an unparalleled

salesmen

job of conversion and more, too;
A recent Federal Reserve Board

and at low carrying

meet, regardless of the sta¬
tistical volume of bank deposits

for

class A and class B
entitling
them
to
purchase
$100
principal amount- of- the new debentures

stock

money

will enable

Such debits, how¬

involved.

are

and credit conditions
corporations to secure
the latest machinery and facilities,

and Easy

large amounts for equipment
other
conversion costs, and

Sub¬

available for conversion.

their individual deposits by pur¬

chasing

21,' 1944.

"Chronicle,". Sept.

Barring

goods and lower
goods
for the

period

following our

prices on
immediate
victory in

Europe,
c.

tors

Also, these same
of great

basic fac¬

production capacity!

be had from Lerner &
request and also a cir¬
Riverside Cement class A

may

Co.

upon

cular

which the firm believes is an out¬

standing cement stock with a div¬
idend arrearage.

purchasing power I
will eause the keenest competi-1 change will be able to meet the
Do not
tion of all time, particularly in challenge of the future.
sit and wait for a return of the
credit facilities, terms and rates.
Remember the
The consumer will be king and "good old days."
old
saying, "He who sits and
credit will be his servant. .Busi¬
waits gets but the dust of the pro¬
ness
men
who comprehend; the
and

enormous

import of

this phenomenal

cession."

THE COMMERCIAL &

1603

Teletype
NY

Carrier Corp.

Trading Markets*

Firm

1-971

Thursday, October 12, 1944

FINANCIAL CHRONICLE

REMEMBER

•

New

•

Conv. Pfd.

England Pub. Serv.
Pfd. Plain

SO. AMERICAN BONDS

Telephone

IT is important
sales

IIAnover

all

Micromatic Hone Pfd.

to you, that ive have no retail

department

nor

retail business

Majestic Radio & Tel.

issues

2-0500

TO influence

fjARL MARKS & PA INC.

OVER

war

drives.

M. S. WlEN & Co.

COUNTER SECURITIES

/' •'

Sixth

the

Loan

War

was

last

the

.74.5

New

York

NASSAU
;

telephone

STREET,

-' :

bell

Gov.

participation of the commercial banks in the. Sixth War
appears to be hedging its position in order to be prepared
flexible enough to meet any condition that may develop before

//;V7/

V;!//'

/ ;---;v::7,.

EXCHANGE OFFER DETAILS

the Sixth War Loan, but separate from it,
the holders of the 4% Treasury bonds, due 1944/54, called for redemp-

Dec.-15, 1944, will be offered other Government securities

exchange for these obligations. . . . All holders of the called
bonds, except the commercial banks, will be offered the 1%% notes;
2% bonds and the Vh% obligations.
\-V•
v.;-:*'.
-

commercial

The

payment

bonds called for

holders of the

bank

Dec. 15, 1944, will be offered in exchange for these \

1^4% notes and the 2% bonds. . , ,
The total outstanding of the 4% bonds called for payment on

call bonds, the
-

Dec. 15, 1944,

according to the latest available statistics, was $1,037,-

€00,000, of which $423,000,000 were held by the commercial banks,
$28,000,000 by savings banks, $69,000,000 by life insurance companies,
$31,000,000 by fire and casualty companies, $78,000,000 by Govern¬
ment corporations and agencies, and $407,000,000 by other inves¬
tors...
The retirement of the 4% partially tax-exempt bonds on
..

Dec. 15, next, will further reduce the available, supply
of obligation which are being rapidly eliminated by

of this type
the Govern¬
ment.-, 'i
The replacing of the 4% issue with either the 1 xk% notes
or the 2%
and 21/2.% bonds will likewise result in ah interest sav¬
ings to the Treasury. .
.
' ■
V,V7-v\7
.

large

Government bond dealers, in a recent study

able

the next few years, will be able to buy it to advan¬
tage.
■
V "A 7 / 7 ;'//(•'
.:'-It was also pointed out that the declines in these securities
occurred on a surprisingly low volume of offerings, and that the
over

or
..

decline in these obligations has
been to produce a level which is more attractive to potential
buyers, but is also more devoid of securities than any comparable

only result of the recent market

market situation.

recent
It

work of the Dumbarton Conference for an
Organization, Gov. Thomas E. Dewey of New
York, Republican nominee for President, stated on Oct. 9 that "the
work of the British, Russian, Chinese and American experts makes
a
fine beginning in a momentous task."
"We know that there is
in this country," he said, "bipartisan agreement upon the end to be
achieved, that there is already a<*>—
large measure of accord with our done and we should push forward
The structure
British/
Russian ' and
Chinese steadily to do it.
friends and that our approach to we plan derives from the present
.

partners."

statement follows:

Generally/ there seems

the partially

to be

retroactive.

The

existent, such 1945 tax legislation would
study concludes there is no realistic basis

hopeful assumption, and it is unlikely that any real
reductions enacted in 1945 would be effective until Jan. 1, 1946.
for

for

act promptly rather than

of agreement about world organ¬
ization for peace. The unanimous

perfected
"We

Alan

know

phases

there

that

city,

was

elected President of The"

Institute

1944-45

year,

annual

the

for

tors

meeting
on
Oct. 9, 1944, at
Hotel

the
New

York,

where the In¬

stitute's Third

Annual

Con-*

ference

w a s

sian and Chinese

friends, and that
our approach
to other nations is
animated by a genuine desire to
.

,>"7

Internal Audi¬

the^end to be achieved; that
there is already a large measure
of accord with our British, Rus¬

contro¬

our

-f

Bank and Trust Company of this

upon

We must seek the views

,■;'/, f

these

Lauckner, Assistant Vice- /

Roosevelt
as

President of the Central Hanover

organiza¬

confident

feel

SQUARE

Teletype BS 69

Elect Lauckner Pres.

along.

1990

this country bipartisan agreement

of other nations who will be mem¬
bers.

can

enter

agreement as to

involved

itself

task.

steps.

voting rights within the council,
particularly in case one of the
permanent members of the coun¬

versy!-

The initial

perfection.

recommendations open the way to
the

is not immediately solved

HUB

& CO.

OFFICE

Internal Auditors

tion will in any event need to be

tail

for Copies

BOSTON 9, MASS.

Tel.

if every de¬

disunited

become

POST

delay in the search for perfec¬

held.
i

Other newly
elected

offi¬

cers were

Cur¬

tis T. Atkisson

"Not

the

only
nations

small

the

but

great

have-

must

shaping the

peace

deal with them

equal partners.
With all of this we cannot fail,"

full

struc¬

The reactions

Fashion Park Attractive

should, therefore,
A
detailed
study of Fashion
soon- as
possible.
Inc.,
is contained in a
Then there must be drafted the Park,
definitive treaty establishing the special circular prepared by Si¬
mons,
Linburn & Co., 25 Broad
new organization and that in turn
obtained

must

submitted

ber States for

the

St., New York. Copies of this in¬
teresting study may be had from
the firm upon request.

mem¬

adoption,

"There is thus much still to be

in the Sixth War Loan, when the
$14,000,000,000 as against the $16,000,- /

is to take place in our country
total

asked

for

will

000,000 called for in the previous drive.

$5,000,000,000 compared With the
the Fifth War Loan Drive.
set

raised from individuals
$6,000,000,000 sought in

...

Laucltner

Coke Company,

Chicago, 111., Sec-

Newark, N. J., '
Peter J. Buzanga
of the Consolidated Edison Co. of'
ance

Company,

Treasurer,

and

New York, Inc., Secretary.

Miller And Horn On

J. P.
J.

Morgan Staff

IN BILL OFFERINGS

Morgan
Oct.

Co., Inc.,
the

an¬

appoint¬

ment of Atwood H. Miller as Per¬

discount sonal Trust Officer and John Horn
bills, to take place next week, raising them from $1,200,000,000 to as Assistant. Trust Officer.
Mr.
The Canadian Minister of Finance recently set the date of Oct. 23
$1,300,000,000/is undoubtedly for the purpose of accumulating funds
as the beginning of the Seventh Victory Loan with minimum loan
Miller, before his association with
to be used by the Government to pay off savings bonds if they should
totals set at $1,300,000,000. ... This figure exceeds by $100,000,000
be turned in for redemption in volume. , . . These bonds are now the Morgan concern practiced law
the objectives of the Sixth War Loan which took place in May of
as
an
associate of Davis, Polk,
this year.
The totals to be asked of individuals is $75,000,000 payable upon presentation at the banks. . / .
It is indicated, however, that if the commercial banks are
Wardwell, Sunderland & Kiendl.
higher than that sought, in the. previous war loan. ...
Mr. Horn was in the trust depart¬
The Canadian Seventh War Loan totals are higher than those
given a substantial participation in the Sixth War Loan, the
ment of Bankers Trust Co,
sought in the previous drive, and are in direct contrast to what
larger offerings of Treasury bills will be withdrawn.
CANADA'S

SEVENTH WAR LOAN

The increase in weekly offerings of the 91-day Treasury

INDEX

Eastern States Pfd.

Pressurelube, Inc.

Bank

and

Insurance

■

Page

Broker-Dealer

Stocks.,,..... ,1592

Personnel

Calendar of New Security

Douglas Shoe Pfd.
III. Power Div. Arrears.

united

Items.... .1583

.1595

Our

Funds

.1601

W. T. BONN & CO.
120

Broadway
Telephone
Bell

Niew York 5

COrtlandt 7-0744

Teletype NY 1-880

Railroad Securities

Real

Estate

•

Tomorrow's Markets—Walter Whyte

Says

II.

Are

available

30 cents

per

copy

.'.77

QUANTITY PRICES
10

25c

$2.50

100

24c

6.00

S06

21c.

23c

_11.50

1000

20c

,..,,.1582

—

' *

15 Manhattan

Sq. "A"

Pacific Coast

Cement

Pfd.

—

200.00

Com.

Hill, Thompson & Co., Inc.
Markets

SPRUCE

4s,

Com.

Dept. Stores

—105.00

—

'I—-.

the commercial & financial chronicle
.25

—

$22.00

22c

-1,583

Securities............-',.1584

American
,

.1582

Utility Securities......

Empire Sheet & Tin Plate

o? both International Monetary Fund and Bank Plans)

.....1594

Reporter on Goyernments

Public

Offerings Wanted

Nations monetary conference

(Includes complete text

Municipal News and Notes......... 1601
Mutual

REPRINTS OF

Held at Bretton Woods, N.

Flotations 1606

Canadian Securities

•.

Official Text of the "FINAL ACT" of

•

Giant Port. Cement Arrears

■'

STREET, NEW YORK 7/ N.

Vice-President;
J.
Ernest
Laurie of the Prudential Insur¬

ond

nounced
INCREASE

Alan

In-

tedFirst Vice-President; Charles JHill of The Peoples Gas, Light and
rpora

In our Sixth War Loan the amount to be

Ebasco

Services
e o

tax

this

3 5/16

LERNER

tion. We must not be discouraged

very

This makes it impor¬

peace.

tant

common

happy over the result. All peacepeople must rejoice that
we
have found so large an area

of the conditions of war then

task/

than

to assure continuing unity

purpose

loving

agreement that while
Various Congressional committees may do much spade work between
now and the convening of the next Congress, no tax. legislation will
be enacted until after this new Congress has. convened and has been
organized,
This general view automatically precludes the enact¬
ment of new legislation until the first quarter of 1945.
Some are
sufficiently optimistic with regard to the outlook for tax reduction
that they admit the above and, nevertheless/believe that regardless
.

Chinese and American ex¬
fine beginning in

makes a
momentous

perts

united nations. * We must take ad¬

"The work of the British, Rus¬

sian,

coalition

war

Dewey's vantage of that mood of

Governor

ture if it is to work.

Government issues was generally attributed to the belief
tax reform might be enacted in Congress in the near

genuine desire to "deal with them

of other nations

some

future.

animated

nations

bther

share in

noted in this analysis that the weakness, in

was

exempt
that

Div. Arrears Ctfs. 18(4

;

the

Commending

partially exempt Government issues, points out that the avail¬
supply of these securities is relatively so small that only a cil
minor percentage of those who may need to purchase such incomeof the

now,

Industry

(p.)

Dewey Sees in Dumbarton Conference

"We must find

of the

Bright Future

Giant Portland Cement

/77:"A Fine Beginning In Momentous Task"
I

TAX-EXEMPTS DRYING UP
One

HA. 2-8780

1-1397

Circular Available—Send

Concurrently with

lion

¥.

Stock in

1-576

new. york

International Security

With

Stocks

:vV

three

time for the

Security Dealers Ass'n

teletype

the drive opens.

Low-.Priced
,

N E/W' YORK

Enterprise 6015

•

■

Association

telephone

philadelphia

REctor 2-3000

INCORPORATED
Security Dealers

Members

in Europe should continue on into the early months

...

Exchange PL, N. Y. 5

Kobbe, Gearhart & Company

Reporter On governments"

Loan
and

AFFILIATE: CARL MARKS & CO. Inc. CHICAGO

Accordingly, the Treasury in not announcing the formula at this

THE

App.

Teletype

recently indicated by Prime Minister Churchill,
offering of securities to the banks would probably be as

limited

you,

(Actual Trading Markets, Always)

"; of 1945, as was
the

New York 4, N.Y.

•

(Continued from page 1601)
that the

firm trading markets for

Members

50 Broad Street

;
;

■

and

SPECIALISTS

"Our
.

Bendix Home

SECURITIES

FOREIGN

Greyhound Corp.

our position in, or to divert
from, making accurate

attenti6n

our

120

and

Situations

for Dealers

Broadway, New York 5

Tel. REctor 2-2020

Tele. NY 1-2660

Full text of Commercial and Financial Chronicle : October 12, 1944, Vol. 160, No. 4324, Section 1

FRASER