Full text of Commercial and Financial Chronicle : October 21, 1943, Vol. 158, No. 4222, Section 1

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OCT 2 2 1943
Final

ESTABLISHED OVER 100

Edition

Sections-Section

YEARS

1

toawnatiHlwillrtii

Reg. U.

Volume

158

New

Number 4222

S.

Office

Pat.

York, N. Y., Thursday, October 21,1943

The Current Monetary

What Can The Government Do To

Re-employment? fill! ■

Promote Postwar

A Memorial To The Senate Committee On Post-War Economic

Planning

Dr.

Spahr Criticizes Expansion And Dilution Of Money
Spending

And Credit—Condemns Federal Waste And

By BENJAMIN M. ANDERSON, Ph. D.
(Dr. Anderson is Professor of Economics at the University of California, Los Angeles.

He was
He is Consulting Econo¬

formerly Economist of The Chase National Bank of the City of New York.
mist

of the Capital

the Executive Committee of

Research Company, Los Angeles, and is a member of
Uie Economists' National Committee on Monetary Policy.—Editor.)

We
if

that

The

faced

by the demand that there must always be full employment, and
does not give it the Government must take action to as¬
demand is made on the Government
to
prevent any reaction
®

business

in

employ¬ ning and a very heroic spend¬
ment. There ing program, to prevent un¬
must
never employment in peacetime. In
be any liqui¬ the years 1933 to 1939 inclu¬
dation
p e- sive, despite ail that the Gov¬
riods. There ernment did (or, as I believe,

—Urges Conservation Of National Patrimony
which

and credit—the
being expanded and
diluted in ways not generally understood by the public was voiced
on Oct.
19 by Dr. Walter E. Spahr, Professor of Economics of New
York University and Secretary of the Economists' National Commit¬
tee on Monetary Policy.
A
<g>
d r
Spahr
of

stream

the

of

Criticism

blood

private industry

it.

sure

are

Situation

industry and

in

manner

must

never

much

of

Government

the

that

we had a
unemploy¬
ment unprecedented in our
wages. To
prevent preceding history. The annual
these things, average figure for unemploy¬

be

any

re¬

duction

i

n

the Govern¬

must direct

Government

the

of in¬

course

did

best

its

at

ment

not

9 millions.

over

10

It

was

over

millions in three of these

dustry, the Government must
spend money, the Govern¬

years.
We had nothing like
this in the old days when our

ment

economic

must increasingly take
charge of the economic life of

lated

ment

Now, I may observe, first
of all, that the Government of
the United States has not
yet
demonstrated its ability, de¬

spite

life

was

unregu¬

by the Federal Govern¬
and when the Govern-;
was
pursuing an eco¬

ment

the country.

nomical

course.

the demand for full

that

employ¬

reaction

or

erroneous

liquidation, is

demand. Of

(Continued

on page

an

1599)

nois Manufac¬

the Future

Employment Dependent Upon Adoption Of
Proper National Policies

Stating that "the best thinking
the country leans toward the

the removal of
war-time

in

con¬

that business

view

trols,
foreign
trade, and
other pressing

pointed

economic

and

to

prob¬

to

social

will be very

war

out

which

in

that

active," Dr. Lyon
"the conditions

business

adjust their

following the

men

the

New

own

H

e

referred

par¬

ticularly

t

the

o

issuance

of Federal Re¬
serve

bank

"by the

Treasury

through

Dr. Walter E. Spahr

a

i g h t-ofhand
maneuver,"
s

1

e

(Continued

companies, in¬

cluding a boom or depression,
will depend in large part on the

Chief

the

on page

provision
1597)
.

In This Issue

national

Special

and

material

items

of

Commerce,

policies which are adopt¬ interest with reference to dealer
ed concerning a series of matters activities in the States of Connec¬
which are outside of any one bus¬ ticut, Michigan, Missouri and Wis¬
consin appear in this issue.
inessman's control."
"•
Connecticut, page 1610; Michi¬
"Of the conditions which will

declared

affect

Execu¬

tive Officer of

Chicago

Oct.

13

o n

in

the

an

address at the
Second

in

weekly

a

Lyon

S.

Leverett

conferences

on

post-war

goals and economic reconstruction
conducted by

the New York Uni¬

prosperity
is

none

more

after

important

taxes," Dr. Lyon said. "While

taxes cannot be

avoided, they can
to vary in the
stimulating or depressing effect
they have upon the prospects of
be

of

business

war,

than

so

designed

(Continued

Bond

WAR BOND
York

Current

will need

lems, Dr. Leverett S. Lyon,

Buy

a

Light & Pwr.
on

in
o n

gan,

1609; Missouri, 1608; Wiscon¬

sin, 1598.
For index see page

1612.

as

on page

1603)

CHASE

THE

BANK

NATIONAL

Preferred
Dealt

Chicago,

notes

construction.

contracts;

Hotel

Salle

La

uation."

make adequate plans for the post-war
period until it knows what measures the government plans to adopt
regarding taxes, the disposition of government-owned manufacturing
facilities, the
termination of
versity Institute on Post-War Re¬
war

the

at

Monetary Sit¬

Common, W. I.

United

Costs

Association,

"The

Private industry can not

series

course

ing of the Illi¬

Lyon Declares Industry's Ability To Provide Full

Dr.

Association of

me say

heroic measures in ment all the time, the demand
governmental economic plan¬ that there shall never be any

Rwy.

;"^S!ll!JIii

a

meet¬

turers

the

But, second, let

very

United Lt. &

Industry Plans

did),

get under 614 millions and,
the through most of the time, was

plan,

Benj. M. Anderson

dinner

volume of chronic

ment must

money

addressed

o r

because

our

commerce—are

Brokerage

OF THE CITY OF NEW YORK

Service

Broaden your customer

for Banks, Brokers

service with Chase

Curb

Exchange

every

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

Pay Day
PROSPECTUS

R. H. Johnson & Co.

London

-

Geneva

NEW YORK 4, N.Y.
25 Broad St.
HAnover

135 So. LaSalle St.

2-OGOO

State 8770

Teletype NY 1-2JO

INVESTMENT

Rep.

CHICAGO 3, ILL.

Teletype CG 1219

64 Wall

OBTAINED
AUTHORIZED

Established 1927
SECURITIES

or

Street, New York 5

BOSTON

Syracuse

Actual

Hardy & Co.

from

Members New

INCOtPORATID

York Curb Exchange

30 Broad St.

634 so. spring st.

jersey city

los angeles

Tel. DIgby 4-8400

New York 4

COMMON
Circular

in

Over-The-Counter

on

w.

Peoples Light &

i.

request

Power Co.

Idaho Power

Preferred

COMMGM

Securities

14 Wall St.. New York 5.N.Y.
TELEPHONE-RECTOR 2-6300




PREFERRED

Kobbe, Gearhart & Co.

REYNOLDS & CO.

INCORPORATED

MEMBERS NEW YORK STOCK EXCHANGE

Members

N.

Y.

Security

45 Nassau Street
Tel. REctor 2-3600

Dealers

Ass'n

New York 5

Teletype N. Y. 1-576

Philadelphia Telephone:

Deposit Insurance

Corporation

□

United Cigar-Whelan

BULL, HOLDEN & CQ

Member federal

Tele. NY 1-733

Consol. Natural Gas

in active and inactive

facilities

Members New York Stock Exchange

15 exchange puce

Dallas

Trading Markets, always

BONDS

correspondent

FROM

DEALERS

!fP?ww

BROKERS and DEALERS

and Dealers

BE

HUGH W. LONG and COMPANY

PHILADELPHIA

Albany
Buffalo
Pittsburgh
Williamsport

Troy

MAY

Enterprise 6015

Members New York Stock Exchange

Analysis

Broadway, N"ew York 5, K". Y.
Telephone:
Bell

York Security

Bell

Dealers Assn.
Members
HAnover 2-0980

Teletype NY 1-395

REctor 2-7400

Teletype NY 1-635

request

ira haupt & co.

Members
New

52 WILLIAM ST., N. Y. 5

120

upon

HART SMITH & CO.

New York

Montreal

Toronto

New

York Stock Exchange

111 Broadway

REctor 2-3100

Teletype NY 1-1920

THE COMMERCIAL & FINANCIAL CHRONICLE

1590

Trading Markets in:

TUTU

m

Braniff Airways

Walworth Pfd.
FANNY FARMER CANDY

king & KING

Goodbody|& Co.

Established 1920

Security

ftfC PONNELL & fO: Steiner,Rouse&C6.

•

'

'

'

Dealers Ass'n

115 BROADWAY

Tel.

BELIi TELETYPE NY 1-423

Sees V. S. Post-War Foreign Aid

Du Mont Labor. "A"

Ft.

Coal, Com. & Pfd.

Comprising Direct Investments

Dodge, Des Moines & Sou.
&

4s

Common

The

Common

&

19S0

No. 11 Moore St., 5s,

which the United

'54,

w.s.

Sylvania Industrial

Mitchell & Company
120

Y.

1-1227

ments.

*Interstate Power

last

In

Taggart Corporation
United Cigar Whelan

31

Curb

the various Latin American

Exchange

Dean

interest-bear¬

Telephone COrtlandt 7-4070
System Teletype NY 1-1548

Madden

T.

have

number

allied

and

practically

loans

loans

have

associated

citizens

addition,
short-term
"been
repaid and a
of properties previously
by American or British
in foreign countries have

dur-

(Continued

on page

lat-

1595)

-

Enterprise in Post-War America
Leon Henderson

Stock

Says Future of Free Enterprise Depends

Upon Answer To A Dozen Major Questions

W. 1;Douglas Shoe
Indiana Limestone
1952

Of Post-War Period Coinciding With 1944 Election
The beginning of the post-war period in America, if present mil¬
itary predictions come true, will coincide with the 1944 elections and

Issues

will

H. G. BRUNS & CO.
20 !Plne

Street, New York 5

Telephone: WHitehall 3-1223
Bell

Teletype NY

inaugurate a period of great uncertainty for American enter¬
prise. Leon Henderson, Chairman of the Board of Editors of the Re¬
search Institute of America and former Federal Price Administrator,
declared earlier this month.
Mr. Henderson opened the second series
of

1-1343

conferences

University

the

of

New

York *

Institute of Post-War

Reconstruction.

Boston

&

More

than

500

Consol.

Natural

Gas

Indiana Gas &

Long Bell

R.

R.

(W, I.)

Wall

Bell

HAnover

Teletypes—NY

&

prise in Post-war America" served
as a prologue to 14 weekly discus¬

the

on

"Post-war Goals and Eco¬

period

collapse

'

Henderson

reported that
best informed opinion placed the

Assn.

defeat of

Germany between June,
1944, and January, 1945, with the
collapse of Japan about one year
later.

"This will result in
1127

I

production of
50%,"

Mr.

war

a

decline of

goods of about

Henderson

said.

"At

of

of

create tremendous

Stock
Ash

&

Rails and Industrials

New
City, has acquired the Ex¬
change membership of the late
C. Hylan Jones.
Mr. Melniker,
on his return from
World War I,
Broadway,

61

Co.,

became

runner

a

Wall

in

himself

worked

to

He

continue

will
a

association

the

C. E. de Willers & Co.
120 Broadway, N. Y.

member of the Exchange.

Mr. Melniker

was

born in Bay-

REctor 2-7634

N. J., graduating from the
public schools. He later at¬
tended
Reading
Academy
in
Flemington
and
Cornell
Uni¬
versity, where he is a member of
Pi Lambda Phi fraternity.
Dur¬
ing the first World War he served
for a year and a half in France
with the Fordham Hospital unit.
onne,

He is

a

Southwest Natural Gas
New England P.

6%

Associated
Gas

the
for

FASHION PARK, Inc.
Deb. 5s, 1963

FASHION PARK, Inc.

Associated

Chancellor

Commander

of

Lodge, No. 68, Knights of Pythias.

Edward A. Purcell & Co.
Marine Pilot Lectures

Members New York Stock Exchange
Members New York Curb Exchange

65

To Be Given In N. Y.
Marine piloting and
operation and handling
will again be conducted by the
North River Power Squadron of
the United, States Power Squad¬

psychology, for it will
bring about the first reduction in
and

affect

national

towards

and national

buying, saving,
policies and politick

The session, of about

ron.

R. W. PRESSPRICH & CO.
Members New York Stock Exchange

10 lec¬

tures, will start on Monday night,
Oct. 25, at 7:30 p.m. at the Down¬
Athletic

Club

68 William

NEWARK:
744 Broad St.

West

for the
and they are open to the
public and members of the armed

GOVERNMENT,

classes

"The

&

Thos. E. Adams

Opens
Office In Los Angeles

LOS

Knowledge
.

.

6. LSaxton & Co., Inc.

ANGELES,

CALIF.—

fices
to

at

215

West

in

engage

a

Seventh Street,

general securities
was formerly

Publications, Inc.

Outlook for

Common

firm

The future of the plastics indus¬

upon

request.

American Fuel & Power 7s 1934

try offers interesting possibilities

according to

We

will

a

circular prepared

make

arrangement

Columbia Baking, Pfd.

an

with

cates

in

a

Jefferson Lake
New

*

and Real Estate Bonds.

share

in

profits.

NY

WHitehall 4-4970
1-6U9




25 Broad St., New York 4,
-i a

nnver

2-0600

Tele.

N. Y.

NY 1-210

DUNNE & CO.

CORPORATION
ST., NEW YORK 5, N.

Telephone*-BOwling

Green

Members N.

Y.

9-3000

25 Broad

Y.

Security Dealers Ass'n

Street, New York, N. Y.

Telephone

WHitehall

3-0272

1952

Sulphur, Pfd. & Com.

England Industries
Nu-Enamel

Oklahoma-Texas Trust

Pgh., Canon. & Washington 5s, 1937
*

Second Ave. Trac. 5s, 1S34

"Southern Traction 5s, 1959

trader
Certifi¬

s

Galveston-Houston Co.

attractive

Title

& Com.

Fonda, Johnstown & Glov.

*

experienced

Salary and

67 WALL

Casualty Stocks

Laird, Bissell & Meeds,
120
Broadway, New York City, have
prepared an interesting bulletin
discussing the outlook for cas¬
ualty insurance stocks. Copies of
this bulletin may be had from the

Real Estate Trader

Common

Members New York Stock Exchange

Facilities

•

for Investors

,

Plastics—War & Post-War

WANTED

Valvoline Oil

Simons, Unburn & Co.

STOCKS

Experience

♦

.

Thomas E. Adams has opened of¬

Macfadden

Preferred

BONDS

INDUSTRIAL

INVESTMENT

beginning of the en'cl of
by Ward & Co., 120 Broadway.
will coincide with the New York
City. A discussion of
one of
the outlook and possible lines of
the controlling elements that will
development for the industry and
produce a new situation in Ameri¬ data on three
leading plastics com¬
can history."
panies is contained in the circular,
Mr.
Henderson
said
that
the
copies of which may had upon re¬
(Continued on page 1609)
quest from Ward & Co.

&

MUNICIPAL,

RAILROAD, PUBLIC UTILITY

forces.

1944 election and it will be

Preferred

Street, New York

BOSTON:
201 Devonshire St.

(19

Washington & Canonsburg 5s, 1932
"

West End Traction 5s, 1933
*

Teletype

Teletype NY 1-1919

in

Classes

the.;.war

ATLANTIC INVESTING

L

WHitehall 4-8120

Broadway

Bell System

decline, - after
Germany, will past conducted his own investment
changes in the business, Thomas E. Adams & Co.

Bought—Sold—Quoted

5

Svcc Pfd

Util

Arion

with Akin-Lambert Co. and in the

FASHION PARK, Inc.

Electric

Y.

S. Plain

7% Pfd.

South Shore Oil

American

Bayonne Lodge of Elks and Past

business. Mr. Adams

Common

N.

&

Past Exalted Ruler of the

*

PINE ST..

5, N. Y.

Teletype NY 1-2361

local

*

70

LISTINGS

OUR

IN "THE SHEETS"

a

partnership in Mervin Ash & Co.
while

SEE

Street

up

national

attitudes

V

equal to
production

each is

employment

Mr.

2-4850

1-1126

Actual Markets in

Melniker, partner in the
Exchange firm of Mervin

(Special to'The Financial Chronicle)

He added:

"The

Institute, presided.

Street, New York 5, N. Y.

Tel.

national

1939."

Professor
Arnold J. Zurcher, director of the

oTeeneaniCompavvu
37

total

nomic Reconstruction."

Lumber

N. Y. Security Dealers

and

sions

Chemical

Charles Pfizer Co.

Members

equal,

religious, service and other groups
attended. The address, on "Enter¬

Distilling, Pfd.
Providence

Exchange Ilember

York

:

——

present the production of war
goods and civilian goods is about

representatives of educational, la¬
bor, welfare, agricultural, health,
American

B9EALEHS 111.

Street, New York City).
There
is
no
charge

194G To Avoid Debacle—Sees Beginning

Must Be Resolved Before

V:v>

Struthers Wells
AU

branch offices

Jerome

town

Which He Raises

Common & Preferred

6s,

to our

small boat

All'Aimer. Aviation
Common

NY

NY 1-1557

Orleans, La.-Birmingham, Ala.

Direct wires

2-7815

■

been sold to nationals of the

private

contracted

been

owned

to

powers,

foreign

no

coun¬

In

loans

ing
the

Bell

J.

tries.

ment extended

New York 5

Nassau Street

| Repatriation has also occurred in

andtheUnited

Vanderhoef & Robinson
York

of the British investments

some

j in those countries

States Govern¬

N. Y. Curb Exchange

New

if

loans

markets

can

Preferred

Members

when

are entirely
Ameri-I liquidated by the end of the war.

the

in

of

Nations, particularly,
South Africa, India, and Canada.
In fact, it would not be surprising

many

offered

were

Preferred

members of the British Common-

the! wealth

war

great
foreign
a

on

war.

REctor

St., New York 4, N. Y.

HAnover 2-0700

New

Jerome Miikerftow

and

ing the present

con-

to

trast

6s 1952

*Traded

foreign

On the con¬
trary, there has been a further
states:
"The rapid liquidation of outstanding
war
h as foreign loans and investments. It
brought about is well known that large amounts
of
a great change
foreign securities previously
in intern a- held by investors in Great Britain
tional invest¬ have been repatriated by other

WOrth 2-4230
Teletype N.

the

The bulletin

Broadway. N. Y. 5, N. Y.

Bell

render

York S

New

University.

Stock Exchange

Baltimore

will

reconstruction and development of econom¬
ically retarded areas will take the form of direct investments rather
than long-term loans, according to a bulletin entitled "The Outlook
For Post-War American Investments Abroad," issued Oct. 11 by Dean
John T. Madden, Director of the Institute of International Finance
of

Members

States

nations in the post-war

Mayflower Hotel
Ss,

assistance

25 Broad

Exchange

BROADWAY, NEW YORK

120

Teletype NY. L-672

>

Stock

New York Curb Exchange

NEW YORK 6, N. Y.

Telephone BArclay 7-0100

Members New York Stock Exchange

Members
York

New

Members N. Y. Stock Exchange and Other Principal Exchanges

Exchange PL, SLY. 5 HA 2-2772

Elk Horn

Saltex Looms 6s, 1954

BULOLO GOLD DREDGING

Mid-Continent Airlines

York

Birmingham Gas.

Warren Bros. Class "B" & "C"

Common & Preferred

New

Alabama Mills

Remington Arms

NORANDA MINES LTD.

Tennessee Products

Cyanamid Pfd.

Botany Pfd. & Common

PATO CONSOLIDATED GOLD DREDGING

Residuals

40

American

We Maintain Active Markets in U. S. FUNDS for

United Gas improv.

Member)

Thursday, October 21, 1943

Analyses

upon

request

T. J. FEIBLEMAN & CO.
Members

New

Orleans

41 Broad Street
BOwling Green 9-4433

Stock

Exchange

New York 4
Tele. NY 1-493

]

Volume 158
t

The

Reg,
William

v

CHRONICLE

U, S.
B.

Company

BEekman

>

Kansas

Seibert,.

.

William

Dana

D.

Biggs,

Assoc. Gas & Elec.

President

Seibert,

Business

Manager

Thursday, October 21,1943

>

Published twice

week

a

*

Offices:

Chicago—In charge of
Gray, Western Representative,
Field Building (Telephone State 0613).
London—Edwards & Smith, 1 Drapers'
Gardens, London. E.C.
•
>

Fred

Copyright

4

32

H.

1943

by

William

IS.

Yosk,

N.

York

Security

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

stocks.

Says

Patterson Galls For

Savings

Bank

114%

Paying

Interest In

BOUGHT

in the post-war

ixi the rate of exchange, remittances for

foreign subscriptions and advertisements

,

tractors.

Publications

Bank and Quotation Record—Mth. $20 yr.
Monthly Earnings Record—Mth,. .$20 yr.
State & Municipal Compendium—
Semi-Annual
.\ .$35 yr.

NOTE—On account of the fluctuations

be

must

made

in

New

York

period," said Elliott V. Bell, New York Superinten¬
dent of Banks, in an address before the annual convention of the
Savings Banks Association of the State of New York, at Lake Placid,
N. Y., on Oct. 12.

told

the

h,

"N

House

they

NEW YORK TITLE
& MORTGAGE CO.

Lindsay

SERIES

have

prepared

which

list

a

request.

on

r

In

a

the

further/reported:
30-page prepared statement,
was

40 Wall St.,
Bell

i<

Slock

York

t.

N.Y. 5

Exchange

WHitehall 4-6330

Teletype

NY

1-2033

protection of the Government in¬
terest, and, second, the provision
for interim fi¬
nancing of contractors whose con¬
tracts have been terminated."
of adequate means

Challenges Legality
answers

Court,

filed

Oct.

on

chain

been accused

Maximum

lation 330

two

Price

of

the constitution¬
ality of the Emergency Price Con¬

!

1942 and the validity
regulations issued under it
were challenged, according to the
New York
"Times"
of Oct.
20,
which also had the following to

j

say:' '
the

were

Mc-

/ Crory Stores Corporation and J. J.

j

Both
i

answers

denied

violations, and went
the

OPA

rules

to attack

on

themselves.

Emergency Price Control Act it¬
requires that the OPA Admin¬
istrator

consult

with

recognized

members of the department store
trade before,

lation

issuing such a regu¬
the Newberry
asserted, and it charged

as

answer

MPR 330,

that he had not done so, and that
the regulation therefore was with¬
out

legal force

The

or

McCrory

tained
330

that

effect.

have

main¬

answer

enforcement

would

stifling

the

of

MPR

effect

of

competition -by

denying
some dealers the right to sell mer¬
chandise at price levels available
to others who had started in busi¬
ness

DENVER, COLO.

since

the

promulgated.

has

Otis

—

become

.

associated

&

Co., First National
Building.
Mr. Forbes for
years

his

conducted

own

investment business in Denver un¬

Sales

When-Issued

regulation

was

1

Vilas
New

.

.

Ruling

New

&

York

York

Hickey, 49 Wall St.,
City, members of the
Stock

and

Curb

Ex¬

changes, have prepared an attrac¬
brochure

tive

sioner's
sales.
are

are

v

e

d.

done

Air Li
All Issues

j ernment to confiscate savings, but
j to

remove

barriers

the

| been placed in the

thaf had

way

of pri-

j vale investment.;

instate will have

J.F. Reilly&Co.
'

111

York

Security .Sealers":Asini;-.:

Broadway, New York, N. Y.
H Ector 2-52HS

larger .gain in

a

'

Members
New

Bell

System

Teletype,

N.

XT.

I-S.4EJ.

past

Mew

@n

Gisholt Machine €0.

Stromberg-Carfson

Jersey

Haloid Co,
Memoranda

on

Securities Act

on

ruling

Request

pending in the New Jersey

Court

of - an Attorney General to compel the appearance of

power

for examination.

residents

The record

Bartgfs Brothers

of

and brief of the

HibwgMOM

non¬

appellant,

filed with the*Oct. 19. Mr. fraud, he nevertheless brought a
Edwards', appeal is being prose¬ suit in the Court of Chancery of
cuted by the Newark law firm of New Jersey in order to obtain a
Kanter & Kanter, with Elias A. compulsory subpoeha against Mr.
Kanter
as
counsel.
David
T. Edwards and to enjoin Mr. Ed¬
Wilentz, the Attorney General of wards from dealing with securi¬
New Jersey, and Andrew J. Mar- ties.
On the filing of the Attor¬
General's
key, Assistant Attorney General ney
complaint,
the
in charge of the Securities Divi¬ Court of Chancery issued an or¬
sion, appear for the complainant. der, returnable in Newark, re¬
Trenton

court in

170

and

a

discussion of the scope of

the rul¬
ing and certain questions arising
from it. Copies of this interesting'
booklet, together with the October
Rail Calendar, prepared by Vilas
& Hickey, may be had from the
;;

It appears

the -New

erarsent

from the record that

Jersey
a

Attorney

Gen-

"subpoena" to Mr. Ed-^

Mtg. Series

sey.

Securities Law.

did not
ney

Mr. Edwards

While the attor¬
made no claim of

appear.

General

Corp. (Va.)

Common & Preferred®

Indiana Limestone 6$, 1952
Great American Industries
N.Y.A.C. 2$„!S55

quiring Mr. Edwards, among other
things, to show cause why a final

Savoy Plaza 3-Gs, 1956 w. s.

decree should not be made against

him in accordance with the Attornew

General's

der

to show

by

registered

wards

request.

cause
.

was

mail

Continued

on

to

That

or¬

delivered

Mr.

Frank C. Mastersan & Co.
Members

New

Mrn Edwards
page

York

Curb

Ed¬
64 WALL ST.

in Toronto.

■

>

•

•

Teletype NY 1-1140

Exchange

NEW YORK 5 1

HAnover 2-9470

1610)

Bank & Trust Co.

Chicago Railways

Seculitiei.

5s,
'A"

i

Newburger, Loeb &
Co., 40
Wall St., New York City/mem¬
bers New "York Stock Exchange,
have prepared a record of the col¬
lateral
securing the Series BK

Centra! Slates Elee.

Public National

Pacijjic Qoait

Collateral Record For

COrtlandt 7-6190
Teletype N'Y 1-84

,

ing him to appear in Newark to
be examined under the New Jer¬

brochure

Broadway
Bell System

011

when-issued

the text of the ruling,

N. Y. Title &

now

wards'of Toronto, Canada, direct¬

Contained in the

firm upon request.

is

securities

of

r

than passing interest to interstate dealers and

more

Commis¬

the

on

of

case

Mr. Edwards, were

Russell H.

The

self

Seaboard!

Appeals, the case of Wilentz, Attorney General, vs. Clif¬
ford W; Edwards.
The case is important because it involves the

legal

any

from that school of thought which
ascribed the country's peacetime

ten [ deposits this year than. in any
years in requiring regular reducother year of their history.
Mr. Bell pointed out that in the
tions
in mortgage principal.
In
meeting the post-war opportunity;
(Continued on page 1607)

Attack

Teletype NY 1-1203

Errors and

Otis .& Co. In Deliver

many

Broadway, New York 6, N. Y.

HAnover 2-8970

Federal Screw Works

der the name of Forbes & Co.

Newberry Company.

the

A

fSpecial to The Financial. Chronicle)

Bank
defendants

39

repeat the mistakes
of the over-optimistic 20s."
Mr.
Bell
dissented
vigorously

meet- this

been

V. Bell

Elliott

brokers

with

INC.

| Members New York Security Dealers Assn.:

we must not

negotiated

;

Russell Forbes Willi

Forbes

J

According'
to
Superintendent
Bell, the flow of deposits is again
need has beeni running strongly toward the savstrengt hehed r ings banks and the outlook is that
by what hasj the .savings banks of New York

agency.

of the

The

by

o

agreements that are final and not
subject to reopening by any other

Act of

trol

effected

be

Regu¬

by the Office of Price

\ Administration,

:

said,

must

the Federal

by

9,

stores which had

violating

in

contracts,
termination adjustments

To speedily settle the

he

Of Price Control Act
In

consistent

ment

m

to

War

earliest mo¬
with- adequate

e

re-

Their capacity

Department had two
"principal objectives: First, the
fair and final adjustment of can¬

•

a

when

wartime

Mr. Patterson told the Committee

.<

Newburger, Loeb & Co.
New

in

are

needed

celled contracts at the
Members

before,

strictions

the

of

securing these issues/-'
will he pleased to

we

send

as

w,

advices, it

RK

•

collateral

0

the Department's authority.
In Associated Press Washington

SERIES F-l
W'e

power acts,
Comptroller-General
Warren has questioned
war

that

but

QUOTED
Information

L J. GOLDVVATER & CO.

position to 1 economic difficulties to "over savfinance a large ings.". If private savings in recent
v o 1 u m e
o f I years. had not flowed freely into
building, such j productive investments, he said,
a s
will b. e 1 the remedy was not for the Gov-

has the power of negotiated

settlement under

to

on

say:

**

Military Affairs Committee that
the War Department believes it
now

.

Bell®—

Mr.

went
Fv::.Z

never

Patterson

Mr.

SOLED

Statistical

Of Reduced Dividends

■

funds.

New York

WHitehall 4-600I

-

Complete

Under-Secretary of War Robert
P. Patterson urged on October 15
the; prompt enactment of legisla¬
tion
to
clarify completely the
power
of procurement agencies
in final negotiated settlements of
terminated war contracts, and to
provide interim financing for con¬

Other

these!

on

REAL ESTATE SECURITIES

Expenses of Savings-Banks Have Increased 50% In Last

Britain,

Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.

listed

of ALL COMPANIES and
Will

Right Location

Attract Deposits As Surely As A 2% Bank—States That Operating

Law On War Contracts

Great

year;

extends

other

CE RTIFI GATES

Difficulties Were Due To "Over Savings"

"Fortified with the largest holdings in cash and government se¬
curities in their history, the savings banks can play an important role

per

little

on

bonds

and

us

Telephone:

Legislation Clarifying

$29.50

Try

and

99 Wall Street,

Eight Years But Earnings Up Despite This Because

Cuba,

policy

"penny"

the

Savings TITLE Co.
Peace Time Economic

Supt. Bell Opposes View That

3,1879.

Subscriptions in United States and
Possessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain,
Mexico
and

bid

The Future of

Dealers Ass'n

Harrison 2075 ' r
Teletype CG 129

DIgby 4-8640

Teletype NY 1-832. 834

high

stocks

Members New York Stock Exchange

CHICAGO 4

•

Oux-

traded,

to

Teletype NY 1-5

Board of Trade BIdg.

NEW YORK 4

"LfSTEDS"

HI TOO'

Company

Dana

Reentered'as second-class matter Feb¬
ruary 25,

New

Broadway

WE'RE GOOD
ON

25 Broad. Street, New York

'

.

Telephone HAnover 2-4300

STRAUSS BROS.
Members

.Other

.

Cons. Elec. & Gas

and every Monday
(complete statistical issue—market quo¬
tation
records,
corporation,
banking,
clearings, state and city news, etc.)

AND CO:-"FAl"V

Trask & Co.

•cnccr
Sp

Seattle Gas

every Thursday
(general=news and^ advertising issue)

"

PREFERRED STOCKS

Editor and Publisher
William

•

City P. S.

llCHTtnSTEIH

"

Public Utility and Industrial

3-3341

'

offerings of

High Grade

Spruce Street, New York 8

Herbert D.

interested in

are

Tel. Bond & Share

Publishers
25

We

Chicago Tractions

Patent Office

Dana

1591

;

COMMERCIAL and

FINANCIAL

COMMERCIAL & FINANCIAL CHRONICLE

THE

Number 4222

National Radiator

1927

Company

and "B"

1

Lehigh Valley Interesting
Raymond & Co., 148 State St.,
Boston, Mass., have prepared an
interesting new discussion of the
Lehigh Valley 4s of 2003. Copies
of this memorandum may be

I

..upon

request.

■




had

-

and Series F-l of New,York Title
&

Mortgage Co. Copies, of/this
compilation may be had upon re¬
quest from the firm.

Analysis

Wyeth

&

Co.

'Since 1893'

Hon, Rose STrosier
Established

NEW YORK

LOS ANGELES

Members .V.
74

.Members Los Angeles Stocl: Exchange

Y.

1914

Security Dealers Assn.

Trinity Place, New York 6, N. Y.
Telephone:.
Teletype:
BOwling Green 9-7400
NY 1-375

C. E.

upon

Unterberg&Co,

Members Nevj York

61

request

Security Dealers Atsn.

Broadway, New York 6, N.Y,
Telephone BOwling Green 9-3555
Teletype NY 1-2663

THE COMMERCIAL & FINANCIAL CHRONICLE

1592

General Machinery
1942 Statement shows

WARREN BROS. CO.
Bought

Troster,Currie & Summers
Trinity Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
Wires

Private

Detroit

-

BANKERS BOND

m

TELEPHONE

BARCLAY

7-0100

TELETYPE

NY

SAN

1-672

FRANCISCO, CALIF.—A

cruttenden & co.
Telephone

and

Dearborn 0500

Direct Private

Chicago Stock Exchange

Wires

Chicago 35

East

Chicago 4, Illinois

UTILITY

INDUSTRIAL
RAILROAD

MUNICIPAL

looks bullish but

now

develop¬
airplane

news

Steels

stocks

to—»

PUBLIC

Says
ments.

209 South La Salle Street

Teletype

Bell Teletype LS 186

Walter Whyte

watch out for
York Stock Exchange

•'

FLOOR, KENTUCKY HOME LIFE BLDG.

Long Distance 238-9

Nominating Committee appointed
by T. W. Price, President, consist¬
ing of Elmer L. Weir, Chairman;
Anthony Bottari, and Jackson Pal-

request

«

INCORPORATED

'

LOUISVILLE 2, KENTUCKY

Action

Members New

'

San Francisco Traders Tomorrow's
Markets
Choose New Officers

7V2s of 1946

on

18th

,

CHICAGO ;

DEPARTMENT CALDAS, COLOMBIA

Memorandum

;

105 WEST ADAMS ST.

NEW YORK

-

-

Bought and Sold

Quoted

Exchange and Other Principal Exchanges

115 BROADWAY

Cleveland
St. Louis

Buffalo

to

Pittsburgh

-

Sold

Goodbody & Co.
Members N. Y. Stock

74

-

Security Dealers Ass'n

Y.

N.

Stock

and

renegotiation

Members

AMERICAN TURF ASSOCIATION

Class "B" and "C"

$6.94 per

after Taxes

share

I I

Corp.

Thursday, October 21, 1943

and

appear

as

bonds

next likely

:.auxna®comesny

leaders.

INCORPORATED

and

CHICAGO

By WALTER WHYTE \

West Coasts

New York

Last

week

Boston

Milwaukee

rri a r k e t

the

showed

signs that the stock
was too
great for it
to take, or that the market, if
it intended to take it, wasn't
ready. The first point of re¬
sistance on the up-side was
approximately 138 in the
averages.
On the other side
of the market picture, the 135

NEWARK

overhead

CHICAGO

Under

TRACTIONS

Municipal Ownership

We have

prepared a study showing the practicability of public
ownership of the Chicago Surface and Elevated Lines: (J) Out¬
lining a proposed purchase offer, (2) Earnings available for
fixed charges under City ownership, (3) Proposed treatment
of present securities holders, (4) Estimated values for the vari¬
ous

F. A. Baker, Jr.

A

officers of the San Francisco Bond

ELEVATED LINES

SURFACE LINES

(Loop)
Northwestern 5s

Met.
Chgo
Chgo.

Traders' Association for the

5s '45

Union El

Chgo. Ry. 5s 1927
Chgo. City Ry. 5s '27
Cal. & So
Chgo 5s '27
Chgo. Rys. "A" & "B" 5s '27
Chgo. City & Conn. 5s '27

.1941

West Side 4S

ing

'38

'<■

ensu¬

•

Baker, Jr., Dean Witter &
Co., President; George G. Kammerer, J. S. Strauss & Co., VicePresident; John F. Sullivan, Bank-

Trans.

Leason & Co.

america

tors:

Street, Chicago

Co., Secretary & Treas¬

and for the Board of Direc¬
Collins W. MacRae, Wulff

urer,

Incorporated

39 South La Salle

"r '■

year:

F. A.

6V2S '44
Rap. Trans. 6s '53

Rap.

will be mailed upon reguest.

cow

has chosen the following for

mer

Hansen

&

Co,; Conrad O. Shafft,
Shafft, Snook & Cahn; Walter F.
Schag, Geo. H. Grant & Co.; Har¬
old E. Work, Wells Fargo Bank &

Telephone State 6001

'

Union Trust Co.

Free Dollar

Proposed By Schram As Alternative
Keynes, White Currency Stabilization Plans

To

The establishment of
war

a

free dollar

as

soon

Installation of the

officers

new

of

the

New

York

Stock

Exchange, as an alternative to the
Keynes and White plans, according to advices Oct. 19 to the "Wall
Street Journal" from its London
bureau, from which the following is
also taken:
"Mr.

Schram

this opinion
in an article appearing in the 'Fi¬
nancial Times' special supplement,
gave

entitled 'United States and World
"The Stock
all

Exchange list

as

diversified

international in character

as

and
those

international

transac¬

multi-lateral,

long-term

or

cleared

the basis of such

on

ing American generation
for

short-term, could be
a

dol¬

promising risks in

tic lands in

lar, which would constitute 'sure

reward

anchorage for currencies of other

risk-taker.

as

com¬

avid

new roman¬

society disposed to

a

rather

than

hinder

the

become

a

generally

more

But the whole structure is

weak,

pearance

"In his
a

article, Mr. Schram fore¬
post-war

expansion

of

American investments abroad that

like

United

China

Stores.

REQUEST

Scott, Horner Firm
Adds Clarence

Taylor

LYNCHBURG, VA.—Scott, Hor¬
ner & Mason, Inc., Law Building,
announce

local

that Clarence E..Taylor,

manager

McKinnon for

a

Thomson

of

associated

now

&

number of years,

the unlisted stock

10-page analysis of

with

them

more

politics than it is with
major battles.
*

The
the

rate,

The

Security

Associa¬

Traders

a

York, Inc., announces
special meeting to be held at the
Exchange Luncheon Club

Produce
on

A*;

*

•

•

Gf

55

Broadway




*

New York

-Public Service

important
few

next

will

Three-Power
Moscow.

the

outlook

for

the

of the Magnavox

We

Moscow

attractive

possibilities,

ac^

at

Conference

<

Cruttenden

&

Co.,

all

have

front.

Whether

may

be

had

have

St.,

Philadelphia 2, Pa.

Teletype

—

PH 265

N. Y. DI 4-1527

open to
Power

a

continuing

Common

in

interest

Stock

BOENNING «&. CO.
1606 Walnut

St., Philadelphia 3

Pennypacker 8200
r

Private

will be all to be discussed is

PH 30

Phone

to

COrtlandt

N. Y. C.

7-1202

considerable question.
politics, which may

years

•

us

to

for

number

a

come

•

will

*

Over-the-Counter

un¬

doubtedly also come up for
discussion.
' V;7■ ■*;":?:: ■. '■ ■

Producing Executive
Experienced in practically all phases

*

of

The

satisfactorily.

If

.

Bag & Paper Co.

that

not

or

out

detail,

We

that

situation

in

V

read

statements

to be discussed will be ironed

from Cruttenden & Co. upon re¬

r

in

market, quite aware of
209 South La Salle St.v Chicago, the possible ramifications of
111., members of the New York the Moscow meeting, seems
and
Chicago Stock * Exchanges. to be acting as if the problems
by

Bell

Phila. RIT 4488

the

1

prepared

V

,

Philadelphia Stock Exchange

Walnut

1529

any

from

only thing Russia is inter¬
ested in discussing is a second

common

Company

weeks

the

of

■

Request

Southern Advance

cording to a study of the situation

quest.

""A

on

Members New York Stock Exchange

for

news,

come

affect all of

Interesting Market Outlook

offers

2

BUCKLEY BROTHERS
Members

#

Copies of the study, discussing the
guaranteed railroad stocks-bonds

Southern

re¬

the outcome of

Meeting On By-Laws

MARKETS

concerned with interna¬

tional

on

trading depart¬

news-side the

*

BOSTON & MAINE RAILROAD

TRADING

*

hear seem uniformly
At least the war trend
seems
to
have definitely
turned against the Axis on all
fronts.
But, as I explained
last
week,
the market is

STANY To Hold Special «

stock
new

so

we

ment.

The

Our

PHILADELPHIA

Common

On the

present.

AVAILABLE UPON

Phone—REctor 2-4383

Memo,

Friday, Oct. 22, at 4:30 p. m.
The" subject
will
be
proposed
Queensland Packing, Asiatic Rub¬
changes,
recommended
by
the
ber, International Tin and AfriossaJJBoard of
Directors, to bring the
Copper."
Association's by-laws up-to-date.
All
members
are
urged to be
names

having

Y.

.

'

*

*

~

•

exchange.'

corporations

MArket 3-3430
N.

enter into the market whole¬

ports
good.

1891

18 Clinton St., Newark 2, N. J.

rather, gives the ap¬
of weakness, that to

or

Rippel & Co.

Established

able,

5

at

of

foreign

J. S.

138

1943

accepted international medium of

cast

into.

Hotel.

He foresees formation

by American investment bankers

of N. Y.

heartedly is far from advis¬

Friday, October 29th,
p.m., at the Fairmont

tion of New
and

the

will be held

is

"Mr. Schram visualizes the

Exchange head be¬

tions bi-lateral and

nations

the New York Stock

of London anti Amsterdam.

Affairs.'
lieves

would make

Jersey Insurance Co.

is slowly being eaten
Technically v speaking,
action usually leads to
strength than weakness.

such

as

dent

(Newark)

imminent

in

inviolate while

point

after the end of the

possible, the removal of all foreign exchange controls and the
resumption of gold payments, was proposed by Emil Schram, Presi¬

seemed

danger of breaking.
Up to
this writing the 135 point is
still

American Insurance Co.

the market
hug uncomfortably

seemed to

close,

of Newark

which

figure,

securities issues of both systems.

Firemen's Insurance Co.

this

-

t

■.

conference

(Continued

on

page

were

1611

the

trage,

over-the-counter

ness—wishes
with

field-—arbi¬

reorganizations and wire busi¬

facilities.

discuss

to

standing

high

Requires

participation

can

dress

to

replies

mercial ' &

no

be
Box

Financial

firm

connection

having

salary if

Ad¬

arranged.

XX, The

Com¬

Chronicle,

Spruce St., New York 8, N, Y.

all

proper

25
,

Av, ,;5» 'V'*1

c »*'*/• ♦

L-V-/;•«;••!»","'Y;1

iHV• >V;"'.-: «f.

-•;-'1''"3"

'

•

,V^AO.'- ■ ~'i-y<*.\
rtriitinriiiii.llW.t.lfi*

Volume 158

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4222

1593

Denver & Rio Grande Western

"Rail Securities in Peace Time"
A Basic

!

Change in the Making

Chicago North Western
Minneapolis, St. Paul & Sault Ste. Marie
•

"

1

Western Pacific

'

Copies

on request

1

v-

Abilibi Power & Paper

New, When Issued

5s, 1953—Bonds—c/ds

Vilas & Hickey
•

Members

York

New

Stock

49 Wall Street

;

■

BOUGHT—-SOLD

'

British Columbia Power

Exchange •

pflugfelder, bampton & rust

New York 5, N. Y.

Telephone: IIAnover 2-7900

"S//.!/'

Teletype: NY 1-911

61 Broadway

..Passage Of Bailey-Van Nuys Bill To Retain
Insurance Bussness Under State Control Urged
The New York Board of Trade has endorsed the Bailey-Van Nuys

|

jbill and strongly urges Congress to enact the measure; The measure

i—'"to

affirm the intent of the Congress that the regulation

(business of

of the

insurance remain within the control of the several States,

] ;etc."~was introduced in the Senate on Sept. 21 by Senators Bailey
f,l(Dem., N. C.) and Van Nuys (Dem., Ind.), Chairman of the Judiciary
1 "Committee.

(>■.

A

<&—

petition to Congress to pass

jthe legislation has been addressed

———-

—

administrative officials.

We

earn¬

■

:

Trade, to New York Sen¬

ators and

Representatives and to
members of the Judiciary Com¬
mittees of Congress.
In a letter

«\by FloydN. Dull, President of the
;Dct.

1

11

Senator

to

Van

Nuys,

Chairman of the Senate Judiciary

| Committee, Mr. Dull said:
I
*

"There is

only one point at issue
but it is a point of tremendous
significance both to our economy
and to our political structure. The
business

closely

of

insurance

is

now

and

efficiently regulated
inn each of the sovereign states.
There is not the slightest reason
in the public interest why the
Federal Government should
cise

Eagle

the trustee of the road had testified that the road had in

exer¬

made in this direction which have

settlement

compromise

lost

in

*,fand great

of which

all

expense,

iHve, in this country, should be con-:

I

.

,

believe that this bill, if
at this time, will serve
| another great purpose than mere1 ly extending justice to the insur-ance
industry.
It would be a
-

"We

enacted

,

timely reaffirmation to the intent
of

Congress to retain

tional
1

American

the

tradi¬
of the

concept

^Federal Government being a union

| of many sovereign states.
•

also

serve

It may
to arrest the efforts of

!'some individuals employed by

^Government
|

who

believe

chief responsibility is
American

drawn, is

business.
a

their
harass

to

This

our

bill,

clear and concise

as

gress.
rary

of

intent

the

ex¬

It puts

an

end

to tempo¬
by

interpretations

Con¬

of

various

Aeronautics

Board

the airline for permission
108

local

routes and

service
one

cities

to

more

16' separate
offer through

cities

between

or

to

with

creditors

the

the

of

as

well

SEABOARD AIR LINE

RAILWAY COMPANY
Specializing in

& St. Paul
Gold 5s,

Underlying Mortgage

1975

and

Bought—Sold—Quoted

Leased Line Issues

of
the
air
routes,
parallel the railroads'
routes, .■ will
be in St.

Louis,
Memphi,
New
Orleans,
Brownsville,
Laredo,
El
Paso,
Pueblo and Omaha.

ranted

preferential

-v:'

from

these

of

The 7% and $6 cumulative pre¬
ferred stock of Pacific Power &

Light Company offers a situation
with interesting possibilities, ac¬
cording to a discussion contained
"Preferred

Stock

Guide" issued by G. A. Saxton &

Co., Inc., 70 Pine St., New York
City. Copies of the "Guide," which
unlisted

public utility preferred and

com¬

stocks, may be had from the
firm upon request.

Guaranteed
Serial

Special

,the. Kansas City, Fort
Scott & Memphis, 4s, 1936 and the
and

South Broad Street

v;-': >•:;

1935

9

YORK

Wires—Rector 2-6528 & 2-6529

5

discussion

sent

on

request

Incorporated
New York 5, N. Y.

1-897

148 State St., Boston, Mass.
Tel. CAP. 0425

The

:

:

Teletype BS 259

Consolidated 4%s to 29%.

by the reorganization, the

Consolidated
direct

4%S} 1978, has

claim

no

It may now be

the various

taken for granted
issues outstand¬

property earn¬
ings. It ts
dependent
on
the
pledge of both Kansas City, Fort

that

Scott & Memphis 4s and bonds of
the Prior Lien mortgage and will

originally proposed by the Com¬
mission. For one thing, the securi¬

be treated

ties

tions

of

on

the basis of alloca¬

on

securities

new

this

to

pledged collateral.
In

addition

to

of

with the public will receive

and

originally allocated to the RFC
RCC

will

now

compromise of
claims, the re¬
$16,047,377

account

of

ities
new

The Prior

a

Minneapolis, St. Paul &
Sault Ste. Marie
When,

which

$8,443,000 was in
first mortgage bonds. In ad¬
of

as

Railway Co.

and if issued

total of
ALL

roundly $12,400,000 of new secur¬

for

accu¬

available

The two agen¬

cies had been allocated

to

calls

be

soo

than

treatment

liberal

for redistribution.

court authorization

on

ing

more

dition, late last year $6,506,000 of
underlying bonds, which had been
new
fixed interest di¬

allocated

allotments, the Consoli¬

bought

-

ISSUES

sold

-

quoted

Arnhold and S. Bleichroeder
INC.

paid off and their proposed secur¬
ities will most likely be redistrib¬
uted.
There will be approximate¬
bonds thus available for redistri¬

to

120 Broadway

New

Street

Bell Teletype NY

fected

the

NEW

63 Wall

& Fort Dodge 4s

dated 4j/2S will receive interest on
the basis of income received front

INCORPORATED

PH 296 and 297

Des Moines

tively, and the "net" price of the

security

STROUD & CO

-

5s, 1950.

1938

Iowa Central 4s 1951

other publicly held bond issue af¬

are

year's interest.

PHILADELPHIA

4s, 2003

Iowa Central 5s

system.

are

Prior Lien 4s

Lehigh Valley

Minneapolis & St. Louis 5s 1962

Fort Scott 4s

Obligations

Teletype

the

of

Minneapolis & St. Louis 4s 1949

Lien 4s and 5s, 1950 are to receive
one full year's
interest and the

Stocks

5

Frederic H. Hatch & Co.

sections

mulated back interest.

and

tj. (in reorganization)

Minneapolis & St. Louis 6s 1932
Minneapolis & St. Louis 5s 1934

distribution

Mortgage Bonds

YORK

MINNEAPOLIS &

the reorganization proceed¬

bondholders

Equipment Trust Certificates

72 WALL STREET

ST. LOUIS RAILROAD

interests

ings should allow a relatively
speedy settlement of any differ¬
ences there may exist between the
holders of the various publicly
outstanding bonds. In effect there
are only two liens directly inter¬
ested in the" questions of earnings

These

mon

Van Tuyl & Abbe
NEW

by the credit agencies would have
delays.

Situation Looks Good

on

NEW YORK 5

Teletype: NY 1-2050

of other bondhold¬
Appeals to the higher courts

ers.

ferent

quotations

3-3450

at the expense

Pacific Power & Light

lists

IV WALL STREET,
WHitehall

consideration

ipower

October

LEROpf A. STRASBURGER & GO.

by Judge Moore bn the grounds
given unwar¬

segregation and relative earning
and importance of the dif¬

Terminals

the

Toronto

4s/88 C'p'n and Reg.

Chicago, Milwaukee

plan
disapproved previously

been

Elimination

which will

in

1-395

Montreal

meant serious

planes.

Railroad Securities

N. Y.-Phila. Private

Gen.

that they had been

cent

123

& Pacific

threat¬

proposed in the original Inter¬

as

the RFC and RCC

!

had

Treatment of these loans

interest.

routes.

local

HAnover 2-0980

Chicago, Rock Island

of

treatment

(the RFC gets by far the
largest share) in full settlement
of their claims for principal and

by

served

Helicopters will be used

also

pression

•

link

present

j serving.
:

Civilian

by

lost effort,

time,

on

two

had

the

WILLIAM St., N. Y. 5

New York

state Commerce Commission

Railway, to oper¬
6,000-mile domestic
network, it is announced*
Application has been' made to
a

52

the

of

RFC and the RCC.

ate

over

HART SMITH & CO.
Bell Teletype NY

575

Airlines,

5l/2s, 1957

of cash is to be in respect to the

Texas & Pacific

as

resulted

df

$31,000,000 of cash in its treasury.
:
The most important utilization^

The two credit agen¬
cies will receive a ,total of $5,804,-

Delaware

additional

supervision over
this business. Attempts have been

excess

indefinitely.

Inc., a jointly
corporation, has
been formed by the Missouri Pacfiic Lines and its subsidiary, the

owned

Steep Rock Iron Mines, Ltd.

Judge Moore authorized the distribution to creditors of close to $22,000,000 in cash.
When requests for these payments had been made

ened to hold up the reorganization

Subsidiary
Formed By Two RRs.

Montreal Lt., Ht. & Power
3y2s, 1956/63/73

Prospects for eventual consummation of the St. Louis-San Fran¬
reorganization brightened materially last week when Federal

Litigation

Air Line

Company

5s, 1959

Teletype—NY 1-310

cisco

these

Board of

Bell

Railroad Securities
1

claims of the

estly appeal for its passage."

Brown

New York 6

Telephone—DIgby 4-4933

'

4y4s, 1960

Members New York Stock Exchange

,

a

to

receive

As in the

four

case

of

pledged collateral, amounting
little more than a full year's

-interest—$48.91.

At recent mar¬
kets the payments will reduce the
"net" price of the Prior Lien 4s
and 5s to 31 Vz and
32%,
respec-

visional

liens

par

for

par,

30 Broad

St.

New York

were
WHitehall

3-9200

Teletype NY 1-515

ly $15,000,000 of new 1st Mortgage
bution,

along
with
smaller
junior securities.

amounts of

The bonds to

redistribution

participate in this
originally al¬

were

located

$53,348,000 of new
(Continued on page 1606)

1st

Lehigh Valley

Railway Co.
(of New York)

Six Selected Defaulted Railroad

We maintain active trading markets in:
4

SEABOARD 4s/50

Reorganization Preferences
Circular

on

Vis, 1950

Registered

SEABOARD 6s/45
SEABOARD 4s/59, and

request

SEABOARD RECEIVERS' CTFS.

Mclaughlin, baird & reuss
Members New York Stock

ONE WALL
TEL. HANOVER

STREET
2-1355




NEW YORK
.

.

1. h. rothchild &

Exchange
5

TELETYPE NY 1-1310

co.

120broadway
COrtlandt 7-0136

n. y. c.

Adams & Peck
63 Wall

specialists in rails
5

Tele. NY 1-1293

Street, New York 5

BOwling Green 9-8120
Boston

Tele. NY 1-724

Philadelphia

a

Hartford

THE COMMERCIAL & FINANCIAL CHRONICLE

1594

wereproperly found. to - have a
coercive and restraining effect, the
interference with the right of selforganization guaranteed to its em¬
ployees cannot be j ustified on the
score
of
a
privilege
of
free
speech."
" "l
,

request of the National Labor

UnitedStates Supreme Court

Second Circuit Court had held that under the constitutional
free

right of

finding.
The

Board's

Labor

forth that prior

ruling had
to a vote of

employees the Tube company's
president had sent a letter and
made a speech to them suggesting
that they would find bargaining
directly with the management a
better plan than through a union.
In

a

brief to the Supreme Court

Arthur L. Corbin Jr., and Luke H.

Stapleton of New Haven, counsel
for the Tube company, stated that
there was not "one scintilla of evi¬

dence" in the record where
sonable

est restraint

-

a

could find the

man

coercion"

or

"rea¬

slight¬

or

vio¬

a

lation of the Wagner act.
The
"moderate
utterances"

of

the

company's
president, they
argued were within the protection
of

decision

Electric

&

in

Power

the

Co.

Virginia

case,

they

continued:
"In this case, as in the

Virginia

Electric

case the speech and letter
complained of set forth the rights
of the employees to do as
they

purpose

is the provision

crux

that in the first place consent of the issuer

..

have

neutrality which it deems essential
privilege of free speech is
to the fairness of the election pro¬
where, because of
cedure."
* '
economic dependence of the

"The
not

the

.

listeners upon the speaker and the

"When

compulsion upon the listeners to
give heed, the adjurations of the
speaker pass from the realm of
free competition of ideas into that

Interesting Situation
First

electioneering

liberty to ignore."
dress, they said:

at

intention

to

the

proposed

rule

was

tage, according to the commission

bonds of

drafts

mailed

were

staff/ would be that the trading
would be public and interested

to

many in¬ investors would be able to
get the
ing possibilities, according .to an terested parties with requests for exact market quotations at any
comment and criticism;
interesting
circular I issued
by
time.
Brails ford & Co., 208 South La v". "It is understood that
many re¬
"The over-the-counter dealers
Salle St., Chicago, members. of plies have been
received, some of are reported to feel
that, in view
the
them with suggestions for modi¬
Chicago
Stock
Exchange;
of the fact that securities would

documents

As to his ad¬

Mortgage

their

first promulgated by the trading
arid, exchange division of the SEC,

Chi¬
cago Surface Lines offer interest¬

of coercion."

which the employees were not

indicated

concerning the affairs of the is¬
develop plans whereby they could suer for the
potential investor, if
list securities -underthe provisions
the exchange required annual or
of the proposed rule.
periodic reports. Another advan¬

available

union

the

to

Its

The

.

.

Court

Amendment

section 12(A) of the Securities
of the rule is to relax listing' requirements for
securities, the market for which is predominantly local or intrastate,
Act.

unique

They denounced the company
president's messages to the em¬
ployees as "unmistakable anti¬

First

tion1 of certain local securities from

v

which guards free¬
dom of speech. Quoting a Supreme

the

Constitution,

The Securities and Exchange Commission is expected
shortly to
on the proposed rule
X-3A-12, providing for the exemp¬

take action

Declaring
the
case
"neither
hasrto be obtained, and second,®no sporadic," the Govern¬
that any securities which a stock that a number of persons suggest¬
ment counsel said that the "very,
exchange proposes to add to its ed amending the rule to open the
language" used by the company
list under the rule would have to way for the extension of credit
president had been adopted by a
be covered by a plan which the where
necessary, and the com¬
substantial number of employers
exchange would file with the mission staff has concurred.
since Judge Hand's decision.
ing of coercion, it now seeks to
"Otherwise the proposed rule
commission, and which, if the
"Objections to elections because; commission did not
supply the deficiency ■ by lifting
disapprove, will be presented to the commis¬
of campaigning by
employers are would- permit the securities to be sion for
parts of the utterances themselves
adopt ion or rejection, or:
from their context and by apply¬ very numerous," they added.
traded on the applicant exchange. further amendment, substantially,
"Election
ing an interpretation of the Vir¬
The
disputes at present,
"Herald
Tribune," in a as in the original draft of July 7.
ginia Electric decision, which, it is constitute the greater bulk of the special
Philadelphia
press
dis¬
"Apparently the position of the
(labor) board's cases. :
submitted, is entirely foreign to
patch, further comments as fol¬
trading ancl exchange division is
that decision."
'
"Unless the decision is reversed* lows:
that the rule is meritorious in that
"It' is understood that the Chi¬
Charles Fahy, Solicitor General, it will become increasingly, diffi¬
the securities would be listed on
and Robert B. Watts, counsel for cult for the board to conduct: its, cago, Boston, San Francisco, Los
the exchanges,.: thus providing a
elections
in
an
the NLRB, in their brief, said:
atmosphere
of Angeles and Cleveland exchanges medium
for
more
information

speech the NLRB could not ^
charge
unfair
labor
practices pleased without fear of retaliation
against the American Tube Bend¬ by the company.
ing Co. of New Haven. The Su¬
"Since there are no surrounding
preme Court denied a Govern¬ circumstances
upon
which
the
mental appeal for a review of his board
might rely to sustain a find¬

get

Proposal to Relax Listing Requirement On Local
*8
Issues—SEC Action On Exemptions Expected

,

Relations Board, the
refused Oct. 18 to interfere with a lower
court ruling that an employer could express his views about workers
voting on union representation, provided there was no coercion and
the companv abided by the result.
Judge Learned Hand of the
a

communications

from the management.
>f. '.j
"Since the employer's utterances

To Voice Views On Union Election
Rejecting

official

regard

Supreme Court Sustains Employer's Bight

Thursday, October 21, 194

| Copies of the circular listing ten
| reasons for their favorable view
•

of this

situation, and

fication of certain elements of the

rule, while others

the current

be

critical.

were

attracted

changes

"As

originally drafted,, the pro¬
posed rule did riot permit the ex¬

the

the

to

under

the

regional

ex¬

provisions

of

proposed rule, it would strip

"The employees were not free to | issue of the firm's leaflet on Chithat market of such issues, since
I cago Traction Highlights may .be'
tension
of' credit
on
securities the source of issues for listing
disregard the summons to hear the had
upon request from Brailsford
which might be listed by the re¬
pnder the rule is the over-thespeech; nor were they free to dis¬ i;& Co.
gional exchanges. It is understood counter market."

"Our Reporter On Governments"
This '/announce mewl is not

an

offer oj securities for sale
buy securities.

By S. F. PORTER
or a

solicitation of

an

offer U
There's

no

iri

denying it. ... The Street—and by "the
Street," we mean all the financial districts of the nation—was miser¬
ably disappointed in the way the new bonds got off to public trad¬
ing.
Premiums, sure...
Premiums of 8/32 on the 2s and of.
sense

.

.New' Issue1

for.

October 19, 1943

while.

a

.

.

3 to 5/32 on the

2V^s,
In

...

predicted.

as

the

to

quick, nice rise to the % and V2 level.
that has not

developed to

But there the bonds stopped
general expectation of a

.

.

.

contradiction

As for buying from banks,

...

any extent so far...

In fact, there has been
probability that it won't develop for
few weeks.
And as for the general mar¬
.

all kinds of talk around about the
several

days, maybe a
ket, well, you know it hasn't been acting
until just the last three days.

$16,000,000

.

.

.

.

.

.

expectations,

up to

v

.

.

Not

.

This observer admits without any hesitation that the market

California Electric Power

it has acted since the third

as

Company

been

contrary to forecasts.

.

loan

war

.

Not

.

opened for trading has

only

those

appearing here

but those mentioned in private conversations and in market letters by other close students of Government bonds.
Frankly,
.

there's

First Mortgage Bonds, 3V'2% Series due 1968

not

situation.
2

and

And

Due October 1,1968

.

dealer

a
,

2j/2S

while

in

Wall

Most of them

.

and

for

half-dozen

a

who

"loaded"

looking

were

have

we

Street

are

To

here

.

.

mention the obvious

are

The

a

quick

excess

market

Price 103j/2%

"tightness"

.

.

stand

up

.

for

accounts

being

these few days, anyway.

.

.

.

.

.

.

,

Exceedingly bad.

.

bJnks in large cities

.

.

V v

.

.

.

Is easy

.

.

in

buying of Governments rarely

/

for the time

to

.

justify

...

is bad

reserves

many

occurs.

'The

seems

to

possibilities behind the recent slip-off,

the smaller communities where major
1

buying.

mention

funds—$1,610,000,000 reported last week—but

Money is "tight" in

iVb

the

situation at the moment is not too comfortable.

excess reserve

Banks have

with

loaded with the

bank
to

reasons

few you may like to consider.

the distribution of these
} ;■'

to the

satisfied

near

the slight reaction at the start, none of them

against the long-term, major factors.

plu-> accrued interest from October I, 1943

is

or

>

/

.

.

i

the

banks

Not for

any

holding off from the
length of time but for

.

V;/ The banks have just finished with a $3,000,000,000 deal. / Minor
enough and certainly many banks obtained mighty few bonds 011 a

date of delivery

.

.

5%

limitation for subscriptions and a 25% allotment basis;
But
they have some bonds.
And they're apparently taking their time
in deciding how and when to
rotjnd out their positions. . . .
There's a technical situation within the market itself which
ac¬
.

.

:t

),

i

.

counts for the

.

.

.

'. Are

unusually slow start.

.

.

.

now

.

.

of

the prospectus

he obtained from the iindersiyned (one of
therein) only by persons to whom the under¬
leyatly o ffer these securities under applicable securities taws.
may

the underwriters named

signed




may

.

Dealers have plenty of bonds
thinking in terms ;of sales, not purchases.
They're
not liquidating, of
course, but they're just sitting :
Which doesn't
give the market any real basis for high prices at this time. ;
The tax situation is as bewildering as it has been at
any time in
recent months.
General knowledge is higher
corporate taxes are
coming, but there's no feeling of confidence on the amount.
Mean¬
while, corporations also are sitting tight, waiting for clarification.
.

;j'D?
Copies

.

.

.

.

.

.

.

.

.

..

.

.

There

;

you

are—add

the

excess

reserves

situation

to

.

the

technical position to the money tightness to the
recent offering
you've justification aplenty for the sloppy market.
But

and

.

just reasoning why is not sufficient.

Dillon, Read & Co.

in longer-term factors.

.

.

.

.

.

This observer still thinks
And this observer is
willing to go on
.

.

.

record with the statement that this
early October sell-off is one
of those "squeeze" plays and that the
market as of today is "dirt

cheap".

...

RESERVES?
From one

will be

done

large-scale dealer
soon

to

ease

the

comes

excess

the prediction that
something
reserves

4

(Continued

on

page

1612)

picture

through the

.Volume

158

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4222

Sees U. S. Aid To

Foreign Nations !si Post-War
Reconstruction Consisting Of Direct Invesinients
'

'

(Continued from page 1590)

At the end of the war, there-

ter.

fore,

the

international

indebted¬

throughout the world will be

ness

much

smaller

than

at

its

out¬

break."

continues:

"It

is

generally believed that in the
post-war period the United States
Government will continue to play
dominant role in the economic

a

reconstruction of the world. While

the

United States Government,
through the Office of Foreign Re¬
Operations,

lief and Rehabilitation

will do its utmost to prevent star¬
vation and

assumed

suffering, it cannot be

that

the

United

States

Government will grant large loans
or make outright gifts to foreign
countries.
uation

Neither may a

of

contin¬

Lend-Lease

on a
large
Beyond the in¬

scale be expected.

itial aid in the form of

food, cloth¬
ing, medicines, and seed and the
cooperation in the stabilization of
currencies, the reconstruction of
Europe and the East will have to
be carried out primarily with the
aid of private enterprise.

"Under certain conditions Amer¬

is

.

not.

main

private enterprise may play
a very important role in develops
ing
the
economically
retarded
areas of the world, as well
as in
aiding the reconstruction of in¬
dustries

in

suffered

severe

countries

that

have

damages

during
the war.
The methods that pri¬
vate enterprise will employ in in¬
vesting capital abroad will not be

uniform,

and

economic

and

will depend upon
political conditions

individual

the

the

be

backward

.is

countries.

In

where

economic

and

logical status of the
in

the

enterprise.

techno¬

people

cludes their immediate
tion

in

there

capital available and

the

where

particularly

case

countries

local

no

management
In

pre¬

participa¬
of

the

advanced

more

countries, American capital will
participate with local capital in
establishing jointly owned and
operated industries. In some Eu¬
ropean countries American
par¬
ticipation may take the form of
investments

in

stocks

of

existing

companies requiring
additional
capital
for
rehabilitating
their
plants.

The participation, there¬
fore, of American private enter¬
prise in the development of eco¬
nomically retarded countries and
in the reconstruction of devastated

will

areas

be

primarily

the

in

form of direct investments.
"Conditions in the United States
at

termination

the

will

of

be favorable for

velopment.

(1)

hostilities
such

There

de¬

a

will

be

a

surplus of productive capacity in
many
lines.
In addition, high
wages will induce many corpora¬
tions

to

replace

their

SEC Clears
/

Proceedings

equipment

York

against Leroy A.
Wall Street,

City,

determine

to

the firm's broker-dealer

whether

registration should be revoked for
»alleged violations of the Securities
Exchange Act of 1934 have been
dismissed by the Securities and
Exchange Commission.
evidence had been found

No

sustain

the

allegations

willfully

company

that

violated

to

the
sec¬

tions of the act through manipula¬

of

tions

lower-grade

railroad

bonds, giving false or misleading
statements, or failed to keep re¬

quired
stated.

The

books,

.

the

Commission

chinery;
The
displaced equip¬
ment, though it could not be used
profitably in the United States,

to

are

in

respects far
long-term loans as a

separate department of the com¬

pany

made

tem,-,

for

of

types

which

there

de¬

a

commodities

to trade in railroad bonds.
transactions

in

countries

be

familiar

economic

with

political

conditions

countries

than

Foreign
the

foreign

in

(4)

welcome

will

countries

and

before.

ever

establishment

>

natural

Bank,

should

resources,

study

economic

previously potentialities and industrial needs
"
of foregn countries.
Specifically,
discussing the need of a na¬ the following information should
tional plan of procedure in mak¬ be obtained:
(a) the types of in¬
ing direct investments in foreign dustries that could be successfully
demand."

no

In

countries the bulletin states:

"It

of

would

ganize

an

be

advisable

to

or¬

American committee

on

developed in each country and (b)
the most suitable form of organi¬
zation

from

the

standpoint

to

industrialization
Canada

on

trade.

As

of

Japan

the State

and

Department, the Depart¬
ment of Commerce, the Depart¬
ment of Agriculture, the Office of
Economic

their respective

tion leads to

foreign
industrializa¬

rule,

a

rise in the standard

a

country

abroad."

and the

Warfare,

American

of

Ex-

is

most

suited

for

of

in

establishing

In

comparing

'

invest¬
foreign long-

direct

with

abroad

Sr

|

term loans the bulletin states:

5,000,000

"Direct investments abroad have
of

number

a

advantages

Illinois Central ff||§||

oyer

loans, particularly those made to
foreign governments and political
subdivisions.

result in
the

Direct

investments

I

immediate increase in

an

productive

capacity

capital importing country. This is
riot always the case with loans,
since the proceeds have often been
used for other than the

and

purposes

2/2% Equipment
V

wasted.

In

To be due

semi-annually £945,000 on March 1,1944 and £937,000 on each
September 1 and March I thereafter from September r, 1944 to
September 1, 1951, inclusive.

many

The payment of the Certificates and the dividend warrants attached
thereto will he unconditionally guaranteed by Illinois Central
Railroad Company,

also

accompanied by technical and
managerial skill from the capi¬
tal-exporting country, which, is
seldom provided in the case of
foreign loans. Above all, direct
investments
ate

are

7 hese

as serious
resulting from large bor¬
rowing abroad.

"The flotation of

a

Certificates

Sept.

not likely to cre¬

1,

; •

bond issue in

foreign country creates imme¬
diately an obligation to pay in for¬
eign exchange a fixed annual
a

in

a

tization.

to

be

not

less than £30,170,347.30.
\

March

required by the loan
contract, because of the borrow¬
as

the failure

constitutes

preceded

tions

devised

to

control

1,35

September 1945
March

2.1075

September 1949

2.8075

2.25

March

1950

2.90

September 1950

2.95

19-47

September 1947

2.40

March

1948

2.50

1.70

September 1948

2.60

1946

1.90

March

2.70

1949

March

1951

3.00

September 1951

3.00

byfihe Interstate Commerce Commission.hTheufiering
obtained in any State in which this announcement is circulatedfrom only 'suck of the
undersigned and other dealers as may lawfully offer these securities in such State.

'

Circular may he

regula¬

the

September 1946
March

issuance and sale of these Certificates are subject to approved

,

by foreign-exchange
numerous

1945

a

impugns the credit
standing of the borrower. As a
rule, the default is accompanied
restrictions and

\%

1.10

March

default which

or

1944

September 1944

er's inability to obtain foreign ex¬

change,

its

MATURITIES AND YIELDS

If the debt service, is not

remitted

on

be issued pursuant to an Agreement and Lease to be dated as of
maximum amount of £15,000,000, against Trust Equipment con¬

of interest, and usually
stipulated amount of amor¬

a

to be binding
assigns.

are to

1943,

amount

also

and

sisting of 582 locomotives, 535 passenger cars and. 6,458 freight cars that are currently
in service.The approximate average age of the locomotives is 18.6 years'; of the passenger
cars
19.9 years; and of the freight cars, 14.6 years. The original cost of this equipment
has been certified to the Trustee to be not less than
$>71,803,431,72, and the depreciated
value as of September 1, 1943 of all such equipment is estimated by the
Company

transfer problem

a

such guaranty

successors

that

as

Trust Certificates

(PHILADELPHIA PLAN)

stipulated

portion

a

■

Equipment Trust, Series W

the

of

vol¬

composition, and geographic
distribution of the country's for¬
eign trade, as witnessed on a large
scale during the dperession of the
30s. On the other, hand, an equity
ume,

investment creates

HALSEY, STUART
E. H. ROLLINS

OTIS &
1

operation of the enterprise.

An
corporation which es¬
tablishes a foreign subsidiary, or
constructs a plant abroad with or

terprise reaches
point.
Morover-

the

a

new

CO.

and

COMPANY

OF CHICAGO

the

arise

FIRST OF MICHIGAN

/ z;//:': /:.' ' //,/■■•. incorporated

CORPORATION

CORPORATION

HORNBLOWER A

HIRSCH, LILIENTHAL A CO.

of
or

ulations,

WEEKS

...

F.

McMASTER HUTCHINSON 8 CO.

S. YANTIS 8

CO.

incorporated

DEMPSEY-DETMER 8

CO.

THE

FIRST

CLEVELAND CORPORATION

T'V-M

plant.

During

profits
decline

AND COMP ANY

L. F. ROTHSCHILD & CO.

/

EQUITABLE SECURITIES

problems, as a rule,
periods of economic de¬

in

pression.

CO., INC.

STIFEL, NICOLAUS &. COMPANY
:-.'/

en¬

generally retained to provide
against eventual losses
for improvement and
expan¬
of

6L

incorporated/;. *

reserves

sion

BLAIR

A. C. ALLYN

& CO.

GRAHAM, PARSONS &. CO.

sound'/man¬

no

&

break-even

agement would disburse the prof¬
its of the first years; such profits
are

R. W. PRESSPRICH

participation of local

time before

some

CO.

ILLINOIS

capital, does not expect the new
enterprise to make profits from
the
inception of operations. Tt
takes

WERTHEIM

SONS

incorporated)

THE

American

without the

&.

incorporated

fixed obli¬

no

CO. Inc.

&.

such

corporate

SCHWABACHER

KEBBON, McCORMICK & CO.

&

CO.

periods

enterprises
replaced by losses
there is no problem
•

are

to

obtain

foreign

ex¬

aites

in definitive form will be

ready for delivery in. New York City on or about November 1, 1943. The information
from sources considered reliable and while not guaranteed as to com¬

contained herein has been carefully compiled

pleteness or accuracy, we believe it to be correct as
October 21

1943.

of this date.

-

/

their

factories

ulation."
ments

which

plans and the best procedures to
follow

plants, for this will enable them
to develop their natural resources,
provide employment, and raise
the standard of living of the pop¬

involved




the

the

where

April,

v

.por.t-Import

was

profitable exporting capital.
foreign direct investments com¬ ownership, that is, whether the
cost of
"The often made statement that posed of representatives of such
enterprise should be owned en¬
labor is lower than in the United direct
investments of American organizations as the National As¬
tirely by Americans or jointly by
States.
(2) Taxes in the United capital abroad will lead to the sociation of
Manufacturers, the American and domestic capital.
States are bound to remain high industrialization of
foreign coun¬ Chamber of Commerce of the The committee should ascertain
for a considerable period after the tries and
thus create competition United
States,
the
Investment the attitude of the foreign gov¬
war
and
undoubtedly will
be to the United States is not- cor¬ Bankers
Association, and other ernments toward foreign direct
higher than in many other coun¬ rect. Industrialization invariably organizations interested in sound
investments and study the tax sys-r
tries, particularly those economi¬ Causes a change in the composi¬ economic relations between the tems and the
laws relating to de¬
cally retarded. The lower taxes tion of the foreign trade but it United States and
foreign coun¬ velopment of natural resources and
prevailing in these countries are also leads to an increase in. the tries. This
committee, in coopera¬ industries.
Thus, the committee
likely to attract American capital. volume of trade. This was conclu¬ tion with the various
government would be in a position to advise
(3) Many more Americans will sively proved by the effect of the
departments and agencies, such as American concerns as
in

were
and, hence,
1941, by
Mr. of transferring funds abroad for
Shakespeare
in
bonds
of
the dividends and profits.
Further¬
Peoria & Eastern Railway Co., a more, the inability of an enter¬
part of the New York Central sys¬ prise, because of Government reg¬

The

for

superior
means

living and thus creates,

mand

re¬

investments, thus

all

"Transfer

...

charges involved Frank J.

Shakespeare, who took charge of
a

funds

increasing the productive capacity
country. One may conclude,
therefore/ that direct investments

gation, the investor's return be¬
ing contingent upon the profitable

Strasburger

Strasburger & Co., 1
,New

abroad

of the

'some countries, the imported cap¬
ital will be in the form of plants,

will

The

of

declared

the country and may be

thereof
instances, the
advantages derived by the bor¬
rowing country were not commen¬
constructed, owned and operated surate with the
obligations as¬
by American corporations. This sumed.
Direct
investments
are

in

of

stockholders

default.

a

in

payment

to

used for further

With the latest labor-saving ma

ican

.

,

for

.

dividends

will still be useful and

bulletin

The

,

change

1595

-':

THE COMMERCIAL & FINANCIAL CHRONICLE

1596

Trading Market in

Thursday, October 21, 1943

Municipal Mews

taken by the city looking to the;'
acquisition of the properties of

Motes

the

Financial

Consolidated Natural Gas Co.

ally

in

of

the

"Annual

City

has been materi¬

strengthened

reduction

Common

its

by

gradual

a

funded

net

terest
are

debt

creasing, the cost of debt

the balancing

There will
reserve

vice

City Planning Commission,
public last Saturday through
its Chairman, Edward Hopkinson,
Jr., senior partner of Drexel &
Co., Philadelphia invest m e n t
banking firm.

city
by

vulnerable

have

holding

Act, but the company has been cooperating with the SEC toward an
A beginning was made over three
years ago in a program designed to exchange its holdings of common

superseded this

year

by

Power

the

for

bond

six

March

filed

was

provides

issues

classes of stock to

loan and A and B

The bonds
bond in
fornia

this

of

four

and

short-term

one

common

to receive

are

24

reduction

stocks.

$500

per

cash, plus shares in Cali¬
Oregon Power, Mountain

States Power and Standard Gas A
The

common.

cash

required

to

make this payment would be ob¬

tained

through a three-year col¬
lateral bank loan, plus sale of the

proposed

of

be

plan

improve¬
In this

future.

the

of

nances

phia,"

was

City

of

&

Standard

now

merely

Gas

will

plan

new

under

common

Byllesby-Emanuel

a

Elimination

company.

Standard

the

and

Light is
a

Power &
Electric has

S.

eliminated

"shell" of
of

U.

etc.

been

the

remove

affiliated

and

interests from their former domi¬

ley

years

Leo T.

ago

installed

was

as

Crow¬

Chairman and

receive

no

consideration.
The
titled

to

common

will be

cumulative

dividends

preference

85 cents

to

up

en¬

a

share

annually. No dividends will be
paid on series B stock as long as
any of the proposed
$21,000,000
collateral bank

and conclusions

tables

service

the

granted

was

leave of absence

a

"This

page

low,"

correspondingly

an

is

out

of

earnings and proceeds of
sales of properties.
Securities to
be pledged under the loan would
consist of

substantially all securi¬
ties owned except those to be dis¬

tributed

sold

or

under

the

together with part of the

plan,

common

stock

of
the
Philadelphia Co.
Eventually
after
Standard
has
disposed of its scattered subsid¬

iaries, it will retain and probably
merge with its sub-holding com¬
pany,
Philadelphia
Co.,
which
controls

the

most

important sys¬
Duquesne Light,

tem
property,
operating in Pittsburgh.

Standard Gas during the
was

a

"horrible

holding

1937

While it is difficult to appraise
the progress of the plan, it is felt

in view of the

eight
ing companies
many as

over

some

panies.

example"

of

a

pyramid.
As
10 tiers of hold¬

or

were

superimposed

of the

Top

included two

operating com¬
holding companies
Byllesby companies,

Mayor

by

before

large funded debt."

the

for

Gates

Advisory

Roosevelt).

It

is

true

have

that

some

opposed

plan as giving them
consideration, and of

the

inadequate

it is
possible that their representatives
course

might appeal to the courts against
the

SEC,

the

latter

ap¬

the plan.

prove

Aided
1942

should

high

leverage, taxes
most
important factor in
ings). If current earning

ably

and

common

it

For

year.

June 30,

12

months

because

the

prior

such

the

earnings.
will

Under

the

enter

loan

completed—and
be

on

the

on

tem has

posal

of

immediate

that

new

cago

had

a

securities

valuation

(Continued

on page

investing

earnings

Bond Exchange ;

basis.
-r."

public

higher

its

the

ap¬
sys¬

position

Offer of Bond

'.

'•

I->.•//•'

•>

-

once

consolidated

$162,296,000

stocks

same

1

'■

<•••

'•*

«?.•*.
•

•

J

.

.

•

.

-

•

'

'

v

'

.

'

'

.

!

•.

....

'

:

;

'

h-..,'■■■.,

V

*

■

•' v.

Exchange under City of Philadelphia Refunding Plan of

1942 closes October 30, 1943 and will not be further extended.

Holders de¬

siring to exchange eligible City of Philadelphia Bonds must have Exchange
Agreements accepted by a member of the Group Account before the close

To, date

more

COMMON "wi"

Memorandum

—

on

than $91^000,000, principal amount City of Philadelphia

exchanged under the 1942 Plan, making total exchanges

under the 1941 and 1942 Plans

more

than $174,000,000

Drexel & Co.

Lehman Brothers
Group Account Managers

Paine, Webber, Jackson & Curtis




principal amount.

Quoted

Request

ESTABLISHED 1879

October 21, 1943.

on

properties.

City of Philadelphia

Bonds have been

Sold

to have been

was

disappear

Consolidated Natural Gas Co.
—

Commission

Motor Coach Co. has placed

$10,000,000

be

steps

municipal ownership.
plan, rejected by the

Commerce

issued to present security holders
of the two companies.
The Chi¬

disclosed

Kelly

the

that

May, which provided for the
merger
of the Chicago Surface
Lines
and
the
Chicago
Rapid
Transit Co., a total of $179,000,000

ready to

was

of

financing

last

proposed

after Mayor

the

Illinois

local

was

for

Under

for

the

of

amount

made

was

would be required under the pro¬

recommended to the City Coun¬

;

:

is retired—

both

the

will doubtless place a

praisal

securities

new

shortly

total

syndicate had

for

mention

The pref¬

...

However,

bid

a

but

.

.

No

Refunding Plan of 1942

plan

e., when the sales of subsidiaries

then

that the

formed and

condemnation,

the

dilu¬

bank

i

city had

long delays that
result, he recommended
that the properties be acquired
through negotiation with the three
companies.

by the city

proposal

by

per

the

sion of the A stock, etc.
erence
feature
will

are

News
been

cil

to the
operation of the preference provi¬

when

issued

of

preference

considerable

be

the

municipal
ownership
of
transportation facilities.

senior

tion of these earnings due

will

be

switch

stocks, which are currently sell¬
ing to average about 21/fe times
there

rev¬

sold.
: ,'V;!,

would

earn¬

equivalent to $12.92

on

*>: Vi.•"

ended

1943, consolidated

were

share

the

into

were

vvv!:'--.v-•

He pointed out that the

certificates

revenue

Mayor's

prob¬

to

the

on

under

earn¬

power

tax

law, which permit con¬
their
holdings
solidated returns, system earnings
have improved sharply in the past issues.

ings

would

advisable

bid

that would

be

find

municipal

new

certificates

properties

a

a

erence

ferred

by the provisions of the

are

sustained, the prior pref¬
stocks (which frequently
are subject to wide price swings)
seem to enjoy appreciation
possi¬
bilities, but holders of the $4 pre¬
can

would

obtained

the legal authority to acquire the

A nation-wide group

the

the

be

the

of

Court

to

Transit Unification Notes

that it is likely to receive respect¬
ful consideration by the SEC, in

by President

have

of business October 30, 1943.

Bought

Kelly,

Bid For

Chairman.

was

Supreme

$•'-

Syndicate Ready To
Chicago

Finance

opinion

approving

probably
enue

Commission of which Dr. Thomas

1920,s

company

appear

unification

referred to in Chicago

was

Illinois

particularly significant

City of Philadelphia" made in

in July of this year.

S.

is

the report states.

of the 87-

he

loan remains out¬

standing. The loan will be retired

the

the large decreases in

report which brings down to
date "The Financial Analysis of

bondholders

A

new

offered

which

would

in

of

President, but due to the mul¬
tiplicity of his Government duties,

only .23 share and

would

common

condition

covered

Philadel¬

prepared for the Com¬

of invest¬
and "cleared" Section 11 require¬ ment
banking firms and municipal
investment in Pacific Gas & Elec¬ view of the careful efforts made
ments.
bond houses, headed by Harris,
tric common stock. Holders of the to effect a compromise between
The longer-term outlook for the Hall & "Co., Inc., Chicago; The
$7 prior preference stock would the claims of the bondholders and
First Boston Corp., and Blyth &
receive 7.3 shares of the new B of the prior preference stockhold¬ prior preference stocks is natur¬
100
common
and the $6 prior pre¬ ers—as well as the prestige which ally dependent on the success of Co., Inc., and consisting of
the plan, as well as future prog¬ other firms, has advised Mayor
ferred would
obtain 6.3
shares, Mr. Crowley enjoys in New Deal
ress
with a sales program and Edward J. Kelly of Chicago that
while
the
$4 second preferred circles (he was recently praised
trend of utility taxation (due to ir is ready and willing to enter
would receive
as an administrator
the

unified

new

these

to

public

on

municipal
by
non-political management and
that all important safeguards be
taken to protect the investment of
purchasers of the obligations. Both

ad¬

near

cer¬

a

ditional bond issues for other than

ments in the

Corp.

transit system be administered

recent years, the greatly
reduced assessed valuation of tax¬

Fi¬

Finance

days is clearly portrayed in charts,

San Diego Gas & Electric,
was disposed of, partially through
exchange of stock for bonds and
later by outright sale of remain¬
ing shares.
The plan now under discussion,
which

"The

entitled

the

proposed certificates would be
subject to certain conditions, in¬
cluding the requirement that the

self-supporting

report,

of

The syndicate's offer to bid

during

by almost

purchase

the

costs

able property may not support

the

tificates.

the financial position of the city

will

finance

Several

Light,

year,

interest

the

nant
position,
putting
control
principally in the hands of the
prior
preference stockholders.

U. S. Electric, Standard

proposal, now being con¬
sidered by the SEC.
One com¬

pany,

the

of

might be interested in the

refunding

of

paid

be

to

revenues

Reconstruction

The report points out, however,
that despite the improvement in

mission

original plan proved too slow
was

to

prin¬

pay

of

facilities, and suggested that the

otherwise."

$100,000,000.
The

ser¬

will be less than they would be

same

debt

to

out

unified transit system, be issued

decrease.

to

Co.

connection, it is pointed out that press advices of Oct. 15 as follows:
public debt
In his plan for the municipalthe past eight years and the owned unified
by the Institute of Local
system, the Mayor
and
State
Government
of
the certainty of further decreases "in¬ recommended that a transit board,
dicate that hope that funds may
University of Pennsylvania. The
composed of responsible citizens
Institute's study was made to en¬ be available out of current reve¬ not holding elective offices, be
able the Commission to
obtain nues for future physical improve¬ formed to administer its affairs.
a
clear and accurate picture of ments, even though bonds may not Executives, department heads, and
the city's financial capacity for be issued for projects which are the entire organizations of the ex¬
not self-liquidating."
building
needed
improvements
isting local transportation com¬
and
as
a
''The total revenue of Philadel¬ panies would be retained by the
background for < the
Commission's
future
planning phia per capita, including school municipal
system
under
the
tax proceeds, is next to the lowest Mayor's plan.
work.
The struggle to work out of the of the 14 largest cities of the coun¬
lie also mentioned in his pro¬
financial difficulties of depression try, and the cost of governmental
posal to the City Council that

stocks of subsidiaries for the six issues of debentures and notes, but

new

been decreased

funded

net

because

operations,

$92,000,000 from its high
$568,800,000 in
1933,

the

solely

be less interest, less

necessary

more,

of

At the

of the report states.

continue

Coach

Motor

certificates,

enue

cipal at maturity, and less State
on funded debt.
Further¬

decreased

been

time

eventual solution of its problems.

and

have

the report states.

systems under the regulations imposed by Section 11 of the Utility

a

over

point

Standard Gas & Electric
more

will

will

Chicago

lie proposed that municipal rev¬

tax

By the end of the present year
the gross funded debt of the

of the

summary

the

Public Utility Securities

the

"Because the funded debt is de¬

made

Teletype N.Y. 1-344

Telephone HAnover 2-9500

a

been accelerated by

Street, New York 5, New York

this

debt

4% million dollars less

now

of city budgets since 1940. These
facts are set forth in a report of

Members New York Stock Exchange

one

of

Chicago Surface Lines, the
Chicago Rapid Transit Co. and

in¬

for

retirement

the high point reached in
1932, and this favorable trend has

Laurence M. Marks & Co.

Standard Gas & Electric is

expenditures

and

than in the peak year of 1935,"

from

When Issued

49 Wall

position

of Philadelphia

1611)

its

Volume

Number 4222

158

THE COMMERCIAL & FINANCIAL CHRONICLE

1597

These

The Current

great expansions in our were still 25 per cent below those
in circulation, gold stock, of 1929, in the face of the un¬
deposits, along with the precedented
expansion
of
our
fact that our price level is now bank deposits. •
103 as compared with 95 for
1929,
Significance of the Low Velocity
100 for 1926, and 167 for May,
of Deposits and the Low Total
1920, point to a most important

Monetary Situation

(Continued from first page)
selling the silver security be-I. which is, after all, he said, a
hind silver certificates, the issu- mathematical abstraction. In those
ance of invasion
money, and the ! cases in which rising prices would
outward movement of gold with-! not
induce greater production,
out
Congress or the American price controls, with all the risks
people being fully informed re¬ involved, should, he said, be used
garding what is taking place.
during the period of the war. In
for

Dr.

Spahr pointed put that in
the face of the great expansion of
our money and bank deposits, the
velocity of deposits has been mak¬
ing record lows in recent years,
that today it is still below the
level of July, 1932, and that bank
debits are approximately 25% be¬
those

low

these

of

He

1929.

said

that

important indicators of
the degree to which private en¬
terprise is depressed today, and
he emphasized that at the same
are

time this low velocity of deposits
revealed

potential
danger which is not commonly
recognized today. He pointed out
that, with our huge supply of
bank deposits, this nation would
experience a tremendous expan¬
a

sion in the

of money and de¬

posits if the velocity should equal
that of 1929.

silver

The

bloc, according to
Spahr, has embarked upon a

Dr.
new

in

maneuver

interests

silver

the

of

launching

international

for

movement

behalf

by

a

bi¬

metallism, and this movement, he
said, was chiefly a nuisance and a
waster of people's time. He point¬
ed out that there
in

two

are

groups

Congress temporarily quiescent

which

when

dangerous

become

may

finally faced with
of disposing of the
Federal debt.. One of these groups
the

is

are

question

a

is

we

a

fiat

the other
group who would devalue the
money

group;

dollar

radically.
Dr. Spahr thought that Congress
would
probably
be
wise,
and
could perhaps defeat these dan¬
gerous groups, if it provided for a
perpetual debt which he thought
could be absorbed- by our large

investing institutions.

fact to bear in mind about money
and
deposit
currency—namely,
that it is

two-dimensional thing.
One of these is supply, the other

cases,

The Present Low Velocity of Our
Bank Deposits

rifices," said Dr. Spahr, "but we
try to avoid them by price con¬
time im¬

same

pede production and restrict
of

amount

otherwise

then

available

be

sacrifices

for

force

of

form

very

heavy taxes which also endanger
production!"
In conclusion the

to

conserve

condemned

of

of the

riest

history

chapters

in

the

sor¬

of

this nation.
Professor

Spahr

pointed

out

that besides the spending orgy in
which our Federal Government, is

times

per

year—

is, a billion dollars in 1929
doing 67 billion dollars worth

was

how

business.

dread

of

want

two

are

the

tivity; that

position in
the people of

our

ising to

save

nations

from

the

face

of

of .12.54, although the
for

consider the awk¬

we

wardness of

the yearly rate hit an all-time low

ac¬

of

greatest stimulators of human

want

and

prom¬

of

many

fear

this

little

thus

year

far

19—still

over

average rate

is

just

below

the

a

This

in

—both to

prevent

or

decline

in

velocity

showing in has had the effect of subtracting
little Puerto Rico which, accord¬ from every 67 billion dollars of
ing to Governor Tugwell, is no business,) that would have been
better off than it was when it done had" the velocity of deposit
was won from Spain in 1898; and
currency ) remained
at the 1929
that. we
come
to
a
realization level, 46 billion dollars at the rate
again that our standard of living of July, 1932, 54 billion dollars
our

poor

.

be raised only when we work
and save and produce more

can

at the rate of the four low months

hard

goods and services for
Dr.

us

of

1940,

the rate of

1943.

••

Bank

since

and

popular

ing

to

seems

be

week

,

.

sharply.

try

cities

net

dollars
of

Sept.

,

.

demand

declined

decline

15

cent

per

For the

coun¬

24

for the

cent

per

same

period. The decline in the veloc¬
ity of demand deposits for this
period was nearly 70 per cent.
If

we

cent;

and that the velocity of
deposits declined 73.3 per cent.

large degree, perhaps to the

The Expansion of Our Money

further.

had

the

He

said

impression

that

that

he

many

people think that the story of the
"Goose

That

Laid

the

Golden

at

approximately

is,

i

is

This

nearly 4 times the

billion dollars of
the

and

4.9

September,
the

times

May,
price

billion

now

4.4

is

over

dollars

of

3.5

is

our

to

well

the

103

history—167
per

Our

per cent

price level
1926

cent of the

to

put first things first,

and that the first

thing is an in¬
crease
in production—civilian as
well as war—prices being a sec¬
ondary
consideration.
He
re¬
viewed

our

virtues of

a

1923 to 1929.

obsession

with

the

billion

dollars

billion

dollars

billion dollars of

He pointed out that

portant than a stable price level




5

of

times

over

the

September,

May, 1920.

posits in banks stand at 88.5 bil¬

of December, 1942.
per cent greater than'
as

the 55 billion dollars of

December,
times, the
37.7 billion dollars of May, 1920.
1929,

and

almost

2.4

of

checks

drawn

accounts.

their

Bank

v comprise

bank

multiplied by their
other
words, they
dimensions

deposit

of

our

cur-

rency.i
In

after

year

in July,

government

of

seven

We

was

of

years

such

of

lack

bank

deposits

people who had

revealed
the

on

smell, and how difficult it

a

him in

little bit

to spend.

money

a

symptom—perhaps

conclusive

a

because

the

refutation

industries, eliminates

in

for

payment

of'

goods.

a

could be but

unusual

certain

as

good at all of these senses','
blue

a

a man

recognizes

moon

nature

these

extraordinary,
blender, either

a

in the food field, or in the

given

field.
1

beverago

'

,

Take that cup

people's
the

to

made you say,

morning which

"Gee, this is

an

a

stance. The expert

highly developed
taste gets

f

blender with that
of smell and

sense

busy. Of

all, he must have

course,

key, each possessing certain domi¬
as

stood

ending

increase

great

between

at

58

July,

.^Figures

debits

reporting

member. banks

in

1940,

,

to

debits

charges

or

member

and

on

non-

deposit accounts of indi¬

viduals,. partnerships,
corporations,
the
Federal, state, and local governments. The
figures include debits to postal savings ac¬
.

counts,

,

other

trust

banking

they

accounts

tlement

of

of

charges to

expense

and

do

payments

deposit

on

include

banks

house

or

In

corrections, and similar
July, 1943, the number of

centers,

which
8

per

:

was

makes

cent

increased

the

in

from

revised

set¬

tically

274

334,
nearly

higher than the old.

none

inherent

in

low velocity of deposit
currency.
(Velocity of money® is
very

not

mentioned

data

because

the subject.)

on

we

have

money

these
low

figures to our abnormally
velocity of deposit currency

(1)

to

understand

the

extent

to

which

enterprise is actually de¬
pressed today and (2) to appre¬
also

great
in low

the

posibilities of

expansion inherent
velocity and low bank deb¬
dangerous position in

which this country finds itself as
a

nations.
i

'

To make

consequence.

#|

palatable blend his "in¬

gredients" must be compatible, must
get along together. You know, there
is such
.

a

thing

as

incompatibility of

temperament in whiskey, too.

j And

*|

is of the lit| most importance. Take three whis¬
kies, # 1, f2, and |3, and blend them
proper sequence

together in that order, and
But if you

blended

get n

0 and $3, and

then added »2 you

with

you

unsatisfactory end-product,

very

a

might end

up

product which would makp

you say,

"Gee, this is

whiskey." So,

a

you see,

fine drink of
there is skill
re¬

quired in the blending of whiskies;
To be
And

sure,

expert blenders

blending is

are

rare,1

lucrative profes¬

a

sion which you cannot prepare for

f|

in college.
Think of this, won't you,
time you

smack

Yes, blenders

lips

your

drink of fine blended
are

the next'

over yotan

whiskey.

people—unusual

people. And they get

a

great deal of

pleasure out of their contribution t o
gracious living.

The Dilution of Our Money
In addition to the dangers in¬
herent in the

a

the

future

its and the

etc., etc. With these stocks he

work out any number of combi¬

can

and science and unusual talent

enough to compare our
supply and deposits with

those of such years as 1920, 1926,
or
1929. It is necessary to relate

ciate

ness,

.

It is not

ac¬

to

But prac¬
is given to the even

our

charges.

figures

the

deposits.

greater potentialities

pay¬

reporting

regarding

supply

of money and

checks,

and Iniscellaneous

counts,

of

debits

balances,

officers'

and

the

in

certificates

not

other

clearing

of" certified

ments-

accounts,
-

department,

deposits .paid;
the

savings

accounts

fear

Considerable attention is given

bank

and

bank

1943,

represent

-the'books .of

1929

cent below the
For the 12 months

per

and

in this country to the potentiali¬
ties inherent in our great

no

level for 1929,

to

mism

flavor,

color, body, aroma, tartness, mellow¬

a

future.

first of

considerable

a

"library" of various types of whis¬

-

or

to

j

blended whiskey for in¬

nant characteristics such

because of encour¬
speculative activities
growing out of a mixture of opti¬

agement

swell

the result of tho

was

expert coffee blender.

'Take

most

fear of the future value of

a

a

painstaking and skillful efforts of

Another important point for us
today regarding the low velocity
of bank deposits and low debits is

currency,

had

of coffee." You probably didn't

enjoyment

pur¬

to

you

take the trouble to think that your

current

lead

may

of coffee

for breakfast this

unfortunate results.

of

eaj

with unusual talents of

talents and becomes

be

thinking and is being used
basis for
building a tax

a

feeling, hearing, see-1

Furthermore,

relating

structure that

all with

taste and smell. If be is smart ho

cept that is saturated with falla¬
cious

|
us

in

cup

power

senses:

once

dows

validate much of the current,
glib,
and
superficial
discussion
in¬
in

are

people.

all pretty

facts

chasing

that .Yen,

to

people—but they

but

regarding the ab¬
normally low rate at which peo¬
ple are using their deposits in¬

volved

one answer

are

ing, smelling and tasting. And we are

many

to

a

side,

party asked,

our

Nature has endowed

abnormally low level.

These

in

one man

fool

got off

the enthusiastic

on

blenders

enterprise is truly sick,
and the people's use of their de¬
posits is for many related reasons
an

was to

we

to

private

at

Perhaps

^'Are Blenders People?" Well, vb.ero

of the channels
through which
goods normally would move, and
thus reduces the number of times

supply

test.

a

part of

symptom available—of eco¬
nomic stagnation. And it consti¬
tutes i

famous blender of

a

traordinarily acute sense of taste and

of confidence

was

extolling the virtues of n'

fine whiskies. We spoke of his ex¬

During the 1930's the low veloc¬
ity

were

friend recently,

money,

spending.

July, 1940, bank debits, de¬

deposits

Our total time and demand de¬

dollars,
stable price level in They are 38

harmony of prices is far more im¬

slightly

is

1929, and almost 8 times the 2.8

lion

total

deposits
velocity. In
reveal
both

from

Our gold stock of
22

debits

.of

level.

do

dollars

It

billion

concerned.

policy of attempting
to maintain a stable price level,
Dr. Spahr warned that we would

4.8

1920, when our wholesale
level was at the highest

level in

the

against

bil¬

September, 1929,

1926.
5.4

by

spite the

of the 1926 base.

■

19

lions of dollars.

Egg" is indeed a fable where pri¬
vate
enterprise and capital are
As

and

per

doing

sums

n

People?

doing 5

was

business

was

1940, when the
spending huge

ex¬

tent of 85 to 90 per
cent, by debits
to
their bank accounts—that

and Bank Deposits

stands

much

much

dollar

a

dollar

a

run
the figures for de¬
deposits and their velocity
that in the future both figures can
and for money in circulation from
1929 to the low points of 1940, we easily mount to levels equal to, or
beyond, those of May, 1920. An
find
that
demand
deposits
in
increase
in
velocity can come
banks in 101 reporting cities in¬
about because of, a
spreading op¬
creased 55 per cent; that money
timism among
people, or because
in
circulation
increased
75
per
.

mand

manner.

ciation.

infinitely better for the govern¬
ment
to
engage
in some wise
economies than to attempt to tax
the people and private enterprise

as

as

.

species of clever management.

Some of these diluting and pol¬
luting processes reveal themselves
in the expansion which has taken
place, and is continuing, in our
supply of money and bank de¬
posits.
Today our money in circulation

He said that it would be

times

stocks of goods available for
pur¬
chase, and to what is popularly
time called the ."inflation
gap," a con¬

plus

whole, total deposits de¬

as a

clined

regarded

speaker
said
that
he
thought some of the tax burdens
are
now
too high or unwise in
nature, and commended the tax
program
recently recommended
by the American Bankers Asso¬

The

"Are Blenders

and

In 141 reportr

from 1929 t<a 1932.

effective.
this

the

■

so

deposits

protest are likely to , come only
after it is too late for them to be
All

billion

deposits did not

nearly

and

awareness

54.5

8,

full:

as a

and

at

all."

Spahr's remarks follow in

to minimize

what it calls "inflation."

enterprise,

drawn

great

Debits to Bank Deposits
the Administration has But it is the money and credit of
two other major obsessions; one, the people of the United States
Now, of course, people's expen¬
that is
being managed in this ditures are revealed to a
to keep the price level steady at
very

costs, and the other, to bleed
the people white through taxation

place,

spent
were
chiefly those fostered by private

2\ that checks and drafts need

July, 1932.

CORP.*

NEW YORK

dollars

At the

engaged,

all

taking

was

the

depth of the the theory of those who maintain
depression in 1932, the velocity of that government dollars are as
deposits ) in
these
banks
was potent as
those emanating from
21 times per private enterprise.
concerned more with how to di¬ slightly less than
vide up what we have than they year. In four months of 1940, it
But in a war
economy debit
sank to
a
yearly rate of just figures
are with how to increase produc¬
require an additional in¬
tion; that we consider whether slightly above 13 (13.19-13.38). In terpretation.
When a
nation
is
some
of our
programs
to save February, 1941, it fell to an even geared to war, the government,
lower yearly
rate
(13.08), and, through its purchases direct from
people from want and fear do not
overlook the fact that fear and for the week of Sept. 8, this year, major

the

would prove to be one

spending

beat

67

was

SCHENLEY DISTILLERS

&)))-):;■:

1929,

It

that

The Blood Stream of Industry
cynical
and Commerce
wastefulness, and the reckless and
Today our money and credit,
frivolous spending, on the part of
two of the most basic elements in
our Federal Government, and said
that this dissipation of our na¬ the blood stream of industry and
tional-patrimony
had
reached commerce, are being polluted or
in
subtle
and
devious
such colossal proportions that the diluted
American people are stupified. He ways.
Apparently this; is .being
"predicted that some day this leth¬ done under the theory that some
dilution here and some pollution
argy would give way to a bitter
realization) of what this spend¬ there will do no harm so long as
thrift orgy means, and that this the people in general do not ap¬
governmental spending policy preciate the steps being taken,
He

This is number two of a series.
]

when relatively little government

cities

patrimony; that we cease planning
to
give away the United
States; that we weigh more care¬
fully; than we seem inclined to do
the current programs which are

will be of interest to our fellow Americano

These data may be summarized
in another way, and
they lead us
to important conclusions: In

deposits in banks in 101 reporting

national

our

In 1929 the velocity of demand

v

speaker said:
"I should like to urge that we

seek

total

power

taxes;
;

the

purchasing
being used. For example,
since 1933 the velocity of deposit
currency has been at a very low
level, and today it is still below
the, level of July, 1932, when the
depression hit bottom.

the

and

around

the

in

controlling

that ' would

income

turn

we

Quite often velocity is the more
important of the two factors in

NOTE—From time to time, in this space,
there will appear an article which we hope

of Bank Debits

when

the forces of supply and demand.
"We talk of war involving sac¬

trols which at the

a

is the velocity or the rapidity with
which this currency is used.

he recommended
that prices be left free to reflect

great

very

use

all other

ADVERTISEMENT

money.,

and bank

-

'v

t

)

great expansion of

the number of monetary units in
the blood stream of commerce and

steadily
our

diluting

the

quality

of

money.

■

The- author

monthly data
banks .• in 101
,

ay

The

40th

has
on

utilized

debits

reporting

the

weekly and

and velocity for
centers, supplied

Econograph Corporation,
Street, New York City.

21

East

industry and in the
at

which

these

very

are

slow rate

moving,

we

quietly, and in ways not gen¬
erally appreciated by the public,

are

(1) Federal Reserve bank
—In

notes

December, 1942, by a sleightperformance, the'Treas(Continued on page 1598)

of-hand

|

MARK MERIT

THE COMMERCIAL & FINANCIAL CHRONICLE

1598

and

to

provide

lend-leased

CONTINUOUS INTEREST IN:

for
tric

LaPlant-Choate Mfg., Pfd.

Consol. Water Power & Paper

Koehring

Central

T

-

,

Paper

silver

one

Fuller Manufacturing

«

are monetizing the national debt
rather steadily and to an unprece¬
dented degree. Furthermore, the

security for

as

certificates,

Thus

our

low
ratio
of
bank
capital and
surplus to deposit liabilities mag¬
nifies
this
dangerous tendency.
The
dangers in these develop¬

the
this

as

silver

certificates will slowly become ir¬
redeemable
paper
money, since

Hamilton Mfg., Class A & Com.

National Tool

the silver
industries as,

Treasury silver is sold

Compo Shoe Mchy., Com. & Pfd, Northern Paper Mills
Old Line Life

that

war

example, for busbars in elec¬
plants, could be counted by

the Treasury

Central Elec. & Tel., Pfd.

Nekoosa-Edwards Paper

to

har'dly clip off

can

busbar

a

deem

when

silver

a

might

then

issued

he

wishes to

certificate.

just

these

silver

fore

re¬

225 EAST

MILWAUKEE 2

MASOf* ST.
Chicago:

5392.

State

This

situation

which

Teletype MI 488

0933

not

the

Wisconsin Brevities

which

ing

also provides for reduc¬
outstanding bonds from

tion in the

$1,013,500 to $700,000 through pur¬
chase

subordination

and

of

out¬

standing bonds.
*

The National Tool Company has

extinguished the remainder of its
issued in 1941
and reduced to $500,000 its Regu¬
lation
"V"
bank
loan, through
debt payments aggregating $111,first mortgage notes

833, Arthur J. Brandt, President,
announced.
■'qJ'V.N
Net profits for the first half of
1943

48 cents

were

stock, in

common

cents

share

a

the

on

contrast to 37

share in ultimate net in¬

a

the

for

1942

period, after
deducting applicable tax liability,
come

calculated in accordance with the

the Revenue :Act.
The company is a leader in the
manufacture of cutting tools.
of

provisions

The Line Material Company de¬
clared

dividend

a

of

30

cents

The Current

a

amount that

cates

cents

a

a

Federal

of

Reserve

issued,

notes

and

corresponding pe¬

a

our

period ended Oct. 31 to $1, com¬
pared with 80c last year.

Congress. Not since
December, 1941, have figures on

Although most of the news and
predictions regarding the machine

gold movements to and from vari¬

tool industry this year

ous

dismal,

Giddings

have been

Lewis

&

Ma¬

share

in

the first

$1.66

or

of

half

tin"

are

of retirement. In other

cess

in

are

ment"

while

It is that

ing

that

of

process

they

are

the

pro¬

supply, both
deposit, are the same as
unsecured greenbacks had en¬

if

this

tered

of

this

notes

stream

reply to
of

manner

so-called
—

tional

blood

In

merce.

Federal

com¬

criticism

some

issuing these
Reserve

sometimes

Currency"

of

bank

called

"Na¬

notes—it

was

increase in the amount

the number
the

in

now

Treasury

is

circulation, and

outstanding from
at the highest

level—637 million dollars.
same

time

these

so-called

that

bank notes is

the

Federal

continue

to

the

At the

volume

Federal

of

Reserve

steadily expanding,
Reserve

state

authorities

blandly in the

the

has

The explanation of this anachron¬
silver

bloc

have

simply

another

upon

something

sharp

as

to how

under

for the

picious occasion invites its revival.

there

are

others

of

a

more

is

being

rather steadily di¬
thinning-out process
inherently dangerous and in
This

when

since

the

American

with

so

their demonstrated

willing¬
put their silver interests

to

ness

the

welfare

of

for

the

industries.

war

may

It

disposal of

at

the

war

of

have

ground that it represents an
improper and unsound adminis¬

placed
industries,

been

tration of the people's money.

The Quality of Our Bank Deposits
Is Also Being Impaired

retired.

The

vacuum
created could have
been replaced by Federal Reserve
notes issued in one-dollar denom¬
inations and secured by not less

than

on

the

same

should

challenge this dilution in

all its forms and to condemn it

quite de¬
be

time, a corre¬
sponding volume of silver certifi¬
cates

public is being per¬
altogether too effectively
dilution will not only
harm but is in fact a species

like to

be sold to

was

silver

The

such

in the management
of this nation's currency. I should

ex¬

redemption

time of war, they have

higher prices for silver lies in the
adoption of bimetallism by the
various
nations.
Until
popular
understanding and condemnation
forced

them

-

to

authorize

A

huge volume of bank deposits
course being created
against
government I.O.U.'s, which means
that, from the point of view of
the banking structure as a whole,
is of

40 per cent gold certificate
reserve. But under the Green
bill,
a

r

and

able

were

other

to

delay action
July, 1943. And even then they
were able to force through a bill

(the Green bill) which would not
let

Treasury silver be put to war
except at subsidy prices. The
position of the silver bloc has
uses

been

that American boys

il¬

Preferred Stocks

•

Wisconsin Electric Power Co.

Common Stocks

pendable

It

but

■

not

the
as

-UNDERLYING

SECURITIES

First Wisconsin Nat'l Bank

MILWAUKEE
Tel.

Daly 3237

2,

Building

WISCONSIN
Tele. Ml 592




a

quiet but dangerous group
are the devaluation¬

Congress

ists—those who expect to write up
the dollar value of

our gold and
sufficiently to enable
the Treasury to pay off its debts

silver stock

by

equal amount of devalued

an

dollars.
This

;

Kearney & Trecker Corp.
.

Koehring Co.

•

<

LeRoi Company

Wisconsin Power & Light Co.

Wisconsin Bankshares

V
-

the

was

national

scandal

that

this

of

exposures

in

resulted

chief victor. (As of Sept. 20, none
of this Treasury silver, under the
terms of that bill, had been sold
to industry for consumptive pur¬

poses.)

But apparently the bloc's

Telephone Daly 0525
MILWAUKEE

.

Bell

1, W1SC.

publicly on July 14, 1941,
when, Senator Elmer Thomas of

V."-

their spokesman and

as

leader of the silver bloc in the

a

Senate, said that such devaluation
might be necessary should
debt

reach

by

the

of

some

our na¬

then

sum

citi¬

our

zens.

The

arguments

ationists

can

which

offer

devalu¬

to

tax-

a

oppressed people, thoroughly dis¬
couraged at the prospect of carry¬

ing an appalling debt for
indefinitely long period, can

300

flow

billion

circulation
of

our

from

throwing,

devalued
into

and

dollars

an

be

the

say,
into

reserves

banking structure.

The American

people were not
prepared to understand the move
for

devaluation

in

1934; most of

them to do not yet understand it

clearly; and there is no good rea¬
son
for supposing that they will
clearly
the falsity and
dangers in the
plabsible and persuasive argu¬

gress, has
this
new

widespread hostil¬
ity to it, both in and out of Con¬
led it to embark upon
enterprise—this
drive

ments for

for international bimetallism.

the

On

Sept.

a

24,

Senator Pat Mcoff with

a

bimetallism. His discourse reaches
Senate resolution

a

on

(No.

July

proposals to establish

inter¬

bimetallism, among other
things.
:
On Sept. 27, Mr. Francis Brownell, chairman of the American
Smelting and Refining Company,
;

,

and always an ardent supporter of
the silver bloc, issued a statement

lism.

Teletype MI 291
•

•.

be prepared to understand

of

awareness

to the press in behalf of bimetal¬

THE WISCONSIN COMPANY

/

.

first revealed their

group

would

policies of the silver bloc!

national

Wisconsin Michigan Power Co.

GIVAN COMPANY

in

made
to
look
impressive to a
ex-%
silver people who would not appreciate
result the disastrous consequences that

the passage of the Green bill in
which the bloc was after all the

into

Chain Belt Co,

to

are

7, 1943—two days after the Green
bill was
passed by Congress—
authorizing the appointment of a
special Senate committee to look

Trading Markets in Wisconsin Securities!

Wisconsin Gas & Electric Co.

they
until

means

speech in the Senate in behalf of

Lake Superior District Power Co.

Industrial Securities

other

Oklahoma,

Carran of Nevada led

we

face

come

question of post¬
policy regarding how best to
dispose of the problem of our
huge Federal debt. ;;
(3) The devaluationists — An¬

they used every device they could
think of to protect their subsidy
and to compel the Treasury
to

coming
progressively -more
liquid. Stated in other words,

silver bloc was able to
keep
the silver certificates
outstanding

we

the

hand

174) which he introduced

Wisconsin

with

war

Treasury to put its hoarded silver
the disposal of war industries,

commercial bank deposits are be¬

the

Active

face

the

at

back to

Railroad Bonds

armed

our

decided that the greatest hope for

cleverness

clusively

Congress,

people have
thoroughly aroused and
disgusted
with
their
constant
pressure for a silver subsidy and
become

of

silver certificates

In any case,
in Congress
gerous

from

bill, which provides that the

situa¬

sorry

aus¬

trouble

subsidies

of the

a

more

ther

no

lead to

can

some

the fiat money crowd
is a potentially dan¬
group
and
may
cause

do

the end

until

cover

being
convinced
that they cannot hope to get fur¬

hoarded at West Point

silver dollars and bullion held

caused that League either to
disintegrate completely or to go

more

This is their latest idea
best to do

em¬

maneuver.

prophesied

and

those of Voor¬

as

ism is to be found in the fact that

that

1943,

such ideas

ence

his and

ones.

suaded

silver

in

Patman, but the generally
better
quality
and attitude of
Congress since the last election

new

Silver certificates—In July,
Congress passed the Green

but

an

arguments of
and to tify to bring

authorities.

of

shown

some

to

planning

are

serve

(2)

of

old

tion.

at the

of these notes

the

is

months.

the

Under the protection

technical nature—our money sup¬

improper practices on the
part of Treasury and Federal Re¬

sirable that this

Each, succeeding month
8 months of issuance has

all

years ago

and

stated, officially, that they would
largely retired within three

be

in

are

and

filibuster

ply

currency

American

understanding or approval
Congress.
The
important point is that
through
these
four
channels—

luted.

our

gotten
interna¬

tional

of

note and

Jerry Voorhis of California
Wright Patman of Texas, both
the House of Representatives.
In March, 1939, a Constitutional
Money League, with former Rep¬
resentative Charles G. Binderup
of Nebraska as head, was formed
in an effort to legislate into exist¬

just

Thq advocates of bimetal¬

apparently

renew

fifty

demagogues
hearing.

a

are

keep its silver out of use, despite
and other demands for it. By

quality

upon

lism

be¬
It is

The chief leaders of this group

under way in behalf of
tional bimetallism. The 1890's
with
us
again in the field

money!

bear.

the

is

war

the
<?

has

to

monetary

likely to get

are

or

seems,

heavy

too

that

then

load

tax

of

process

by

the

the debt burden mounts

the

out the

words,

American

money

of

they and

of
policy of Treasury secrecy
gold supply can be dissipated
in ways that are unwise and with¬

what is happening in
the expansion and dilutiomof the
our

that

time

and

and

nuisance

people's

movement

forces in

Both

this

type of official report¬

misleads

for

our

"retire¬

in

released

Congress
are entitled to know, and should
know, where this gold is going
and under what terms it is going
there. As the percentage of gold
reserve
against our
expanding
■money and deposits declines, the
weakening of our currency pro¬

1942,

in

been

This particular piece

interests

gresses.

that these notes

The

—

of

waster

above

people.

a

nuisance and

people's time.
(1) Drive for international bi¬

best

provision for inventory price
equal to $2.18 a share,

a

waste of

of secrecy hardly seems necessary;
and it is not in accord with the

decline,

compared to $479,000

countries

publication.

chine Tool Co. reports net income
of $613,379 after charges, taxes
and

comes,

than

more

Apparently

but also from

money, while apparently a rela¬
tively small group in Congress at
the present time, may prove dan¬

nothing

silver interests.

as to

and

Since

—

Treasury h£s

losing gold to foreign coun¬
Where it is going and why
Treasury secrets withheld not
only from the interested public

people

banks

our

other time.

or at any

(2) The fiat money group—The
advocates of non-interest-bearing
United
States
bonds
and
fiat

gerous as

tries.

greenbacks would be issued, and
their effects upon the reserves of
Reserve

exportation

time,

dangerous,
and
they
require
watching; The other is probably

barked

September, 1942,

themselves.

in the field of money that deserve
mention. Two of them may prove

been

of expansion!

Federal

gold remains, up to date,

mystery.

are

by

the general
assets of the Treasury. They were
issued
precisely
as
unsecured

are

(4) Gold

Company de¬

bursements for the current fiscal

they

except

probably will
be
Treasury secrets. The

extent to which this currency may
become claims against our dollars

year-end dividend of 40
share, bringing total dis¬

into fiat money and began to isue
them. These notes are not secured

anything

that

in

successfully

so

people must contend with
particular nuisance at this

this

three other activities

are

metallism

our

by

Field of Money
There

Sept.

on

bloc

It is unfortunate that the Amer¬

ican

Other Forces and Dangers in the

a

in circulation

"occupation currency." The
amount already issued, and the

Monetary Situation

bank

certifi¬

called

was

and Federal Reserve authori¬ monthly "Federal Reserve Bulle¬

ury

these

troops into Italy,
our Treasury, in
cooperation with
the
military
authorities,
has
begun
to
issue
a
fiat
money

(Continued from page 1597)
ties converted 660 million dollars

of

;

entrance of

year.

Nunn-Bush Shoe
clared

States—1,869

(3) Occupation currency—With
conquest of Sicily and the

Ampco Metal, Inc., reports prof¬
share on its common
stock in the first eight months of
the current year, compared with
of last

United

dollars

amount

cents in the

im¬

most

the

its of $1.13 a

61

the

were

16th.

paid in 1942.

riod

in

million

plan, which is endorsed by the Bondholders' Protective Committee,
provides for a cash payment of $100 per $1,000 bond on account
of back interest; issuance of new 5% First Mortgage Leasehold Bonds
maturing in 1963, par-for-par for^
the present bonds; and an interest share, payable Nov. 1 to stock of
certificate
for
$157
per
$1,000 record Oct. 20, bringing total dis¬
the year to 50
bond on account of back interest. bursements for
same

the second

are

to suggest

seem

Committee-for-the-Nation and the

"

actually

methods

march

the

"

cer¬

paper money in volume
and value that we have circulat¬

plan of reorganization for the Plarikinton Building Company,
operators of the largest store and office building in Milwaukee, has
been sent to holders of the First Mortgage Leasehold Bonds.
The

cents—the

silver

is

disaster
The

us.

chiefly
the
again.
It looks as though this country is
faced with a deluge of pro-silver
propaganda like that of the 1890's
and like that conducted by the
bloc—on

1932-1934.

they should be controlled

would

of

portant

A

The plan

another

apparently

Yet these

aware.

tificates

is

public

genuine

overtakes

metallists—that Ii,"is,

silver

silver

rec¬

The hope of responsible
people is that they will end be¬

against the silver in the mines.
PHONES—Daly

to be rather well

seem

ognized.

They

well have
certificates

as

ments

piece of

a

Thursday, October 21, 1943

•

Thus

.

the
leading
bimetallic
have been fired, and now,
apparently, we shall see the bi-

guns

a

dollar

will

be

close

radical devaluation of

that

offered

of this

can

and

to

probably

them

at

the

war.

How will the

mass

of American

people, who know little about
monetary principles, react when
the devaluationists put up to them
such arguments as the

following?

By

writing

of the

the dollar value
Treasury's gold and silver

stocks to

an

up

amount equal to the

Treasury's debt,

we can free you
and your children and
grandchil¬

dren from the burden of this
great
debt. We can reduce your taxes
to the lowest level experienced in

many

years.

We will

field for exportation
our
can

open

up

a

unequaled in

jhistory, because the foreigner

buy the dollar for the equiva¬
of perhaps seven cents.
We
will make it easy for the foreigner
to pay at least some of his debts
(Continued on page 1604)
lent

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4222

158

1599

had

What Can The Government Bo

grown during war, was
diminished—in every one of
the

of the crisis, de¬
and revival, the
Government
steadily
dis¬

To Promote Post-War

years

missed

Re-employment?

it

from

men

the

It didn't need

service.

(Continued from first page)

them,

rally from this great
employment, of unemployorient at 6 millions
depression, the restoration of
an economic —a very heavy figure on the
full
employment, was the
situation that does not have basis of all our past expe¬
achievement of the people,
to react very much and a rience, though I must say a
and not the achievement of
credit situation that does not very modest figure as com¬
the Government.
have to be violently liqui¬ pared with the years 1933 to
There was a great deal of
dated.
But to strike directly 1939, inclusive. In August of
economic
planning in this
at the symptoms of economic 1921, the tide turned, and, by
period, but it was not Govern¬
disorders, such as unemploy¬ Maxxh and April of 1923, we mental
planning. It was plan¬
ment or liquidation, instead had reached new levels of
ning by unemployed work¬
of taking measures that will production and full employ¬
men to
figure out where they
straighten out the causes of ment. The Index of Produc¬ could
get new jobs.
It was
the economic disorder, is a tion reached 103 in March
planning by business execu¬
superficial and a dangerous and 106 in April of 1923. tives as to how
they could get
procedure. Some kind of re¬ There were labor shortages new business. It was
planning
in many lines.
action in the pace of economic
as to how
production could be
I have said that the Gov¬
life is inevitable if you have
done more cheaply and more
was
old-fashioned.
an immense readjustment to ernment
efficiently. It was planning
make in the proportions of The Treasury's job was to
with respect to the new prod¬
protect its solvency and to
your industrial activities. The
ucts which the markets would
passage from war to peace protect our sound gold dollar.
take.
must mean that a great many It overbalanced the budget in
Basic in the planning was
industries curtail their activ¬ every one of those years.
It
the fact that the Government
ities radically and that others paid1 down public debt
in
credit was unshakably strong,
increase their activities great¬ every one of those years.
It
that the gold dollar was un¬
ly. There must be tempor¬ reduced expenditures, and it
and men
reduced taxes though not so doubtedly sound,
ary
unemployment,
there
had a fabric of confidence on
Here are the figures
must be reaction, readjust¬ much.
liquidation, and the for United States Government
problem is one of bringing expenditures, for tax receipts,
about the transition as rapid¬ and for the public debt:
;

ment,

ly as possible, rather than the
problem of preventing re¬

IJ.

unemployment themselves
may easily facilitate the
prompt readjustment in the
direction of

our

that

tivities

industrial

ac¬

the: transition

(Millions
Fiscal

Fiscal

war

(Not

year

of Dollars)

year

1921

year

1922

year

1923___—

;;

The reduc¬

which to build.
in taxes,

tion

ingly helpful in making it
possible for new activities to
and for

undertaken

ture

ven¬

capital to take risks.
add that the crisis of

I may

1920 and the boom which had

Taxes

ran as

follows

during preceded it in 1919 and the

these years:

first half of

Ordinary Receipts of the U. S. Government

to peace

(Millions of Dollars)
Fiscal

year

Fiscal

year

Fiscal

year

Fiscal

year

a

bad

very

situation and that this

6,695
5,625
4,109
4,007

1920
1921i____
1922.
1923—.—

of

out

1920 had grown

situation did not

foreign
foreign

improve

as

the revival of 1921-1923 went

Rather, conditions in
The public debt was rapidly
day, I want to exhibit, first,
France,
Germany,
Austria
policies employed by the reduced, as the following fig*
on.

the

crash

in

Government

Federal

the

ures

period of recovery to full em¬
ployment that took place
from August of 1921 to the
spring of 1923. The picture
of our policy in those years
will make a very useful point
of departure for the study of
what policy ought to be when
the present war ends.

and most of the Continent of

show:

1920-21 and in the

of

U.

S.

Government

Europe
and conditions in
Japan and most of Latin
America grew worse, rather

Debt

(Millions of Dollars)
June 30

June 30

1920..—

24,298

1922-—

22,964

1921

23,976

1923

22,350

-

Nor

was

there

con¬

any

flood

the

scious

effort

money

markets with excess

reserves

to

to make low interest

better.

than

We

not

were

helped in our revival by im¬
proving foreign conditions.
We

didn't

ment

need

Govern¬

spending to get

of the trouble in

us out
1921.
We

rates. The

cheapest money of did it ourselves.
the whole period was 4% for
Government spending from
The United States Govern¬
open
market commercial
the end of 1933 to 1939 never
ment, in the period from 1920 paper for one month in 1922.
to
1923, was old-fashioned. The Federal Reserve Banks brought us full employment
It did not know the so-called
new

economic wisdom which

lies behind the demands now

being made upon it. It be¬
lieved in balancing the bud¬
get and in paying down pub¬
lic debt. It was not regarded
as

the function of the Govern¬

ment

to

provide

money

to

stop a crisis or to end a de¬

pression.

We had

a

tremen¬

dous crash.
at

Commodity prices
wholesale dropped from

their credit during
the crisis at 6 and 7%—ade¬
quate credits on rediscounts,
but not credits designed to
whip up prosperity. Here is
a table for
open market coxm
mercial paper rates in New
York
City for these four
out

put

Open Market Commercial Paper Rates
in New

July of 1920 to 142 in
August of 1921. This was a
terrific break in prices. It was
•accompanied by a great de¬
cline in industrial activity.

York

City

High

Low

8

1923

5

5

1922_

6

7%

—

1921i

(Annual

4

5Va
Report

of

4>/2

Federal

Reserve

Board, 1927, p. 96.).

The

strated to be
first

Government

failure in its

employment
will

in

remember

the Administration,

this
that

which be¬

in March of 1933, started
with

out

an

gram under
W. Douglas,

economy

pro¬

the Hon. Lewis

Director of the
It was not until De¬

Budget.

cember of 1933 that the Ad¬

ministration

Federal

a

country.

gan

(Prevailing Rate on Prime Commercial
Paper, 4-6 months)

241 in

anything approaching full
employment. Government
spending as a sure and quick
means of
bringing even tem¬
porary revival was demon¬
or

You

years:

1920-

SoleI

Incorporated
14 Wall
Bell

this

departed

avowed

economy

from
pro¬

Street, New York 5

System Teletype NY 1-920

Canadian Securities
By BRUCE WILLIAMS
The Fifth Victory Loan

is off to

fine start

a

•Production
^showed

ja

1921.

nothing: to make work.

(base
1923-25) Oh the contrary, it diminished
drop from- 89,- in, Federal employment rapidly.

1920 to 65 in July of

; July of

-

Men

were

released, of

course,

At the worst,/ in the from the army and the navy,

summer

of 1921, we

estimated and




the civil

service, which.

and began spending for
spending's, sake.
gram

The

first

rally, in 1933,
July, was ex¬
traordinarily. vigorpus but it

from March to

was

not

due to Government

(Continued on page 1600)

result of the good

as a

intensive spade-work done by the reorganized National War Finance
Committee under the able direction of Mr. Graham Towers.
Since
his

appointment as Governor of the Bank of Canada in 1934, Mr.
degree to the establishment of Cana¬
banking and finance on its present high plane.
By no means hide-bound in his<&~
——
outlook, he is able to deal with level at which the necessary Ca¬
the increasingly complex domestic nadian dollars will have to be
and international financial prob¬ supplied
at the official selling
Towers his contributed in large

dian

lems in

thoroughly realistic and
Possessing keen

a

rate.

flexible fashion.

imagination and always looking
ahead, Mr. Towers is eminently
fitted for his present position in a
country which has made such dy¬
namic economic progress during
his tenure of office.

It

is

be

to

expected therefore,

that

although the Canadian people
have already an enviable record
with

prodigious

their

to

regard

efforts in the field of war

finance,

\

With regard to the future trend
of the market for external issues,
it would appear that in, the course
of the next ten

days we should see
waiting period
brought about by the Fifth Vic¬
tory Loan.
If offerings in this

the

end

of

connection

ing,

not

are

forthcom¬

soon

of those issues
which are currently in demand,
purchasers will be obliged to take
the

initiative

market

and

rise

present drive
rialize.
surpass
all others.
When it is considered that, in four
years of war, 11,000,000 Canadians
have
provided $6,000,000,000 in
taxes and shortly the total for
loans will be a further $6,000,000,the

the

especially

;

the

would

expected

then

mate¬

/

v

Harvest

000, it will be realized that this
will be no slight achievement.
At the moment of

writing, the

Progressing
For Canadian Crop
The

Bank

of

Montreal, in its

Oct.

7 crop report, states that in
the Prairie Provinces, rapid prog¬

volume of external bonds offered

ress

has been made with harvest¬

in

ing

during

exchange for the new internal
issues is considerably less than
usual.
Consequently during the
past week there was not a suffi¬

the past two weeks.

Ideal weather, the bank says, has

prevailed

ing

generally and thresh¬
practically completed in

is

cient volume of business to

cause

Manitoba and in

the

quiet

Saskatchewan and Alberta. While

market

to

change

its

firm tone.

the

Direct Dominions and Nationals

prices for the
unchanged, although

inactive with

were

most

part

there

was

demand

some

Canada 3s of 1967 at
tarios and

for

the

On-

1031/4.

there

featureless but there was some ac¬

in

tivity

with

Manitobas

sustained.

were

still 104 M; bid.

market

the

1956

Interest con¬
issues and

the Alberta

in

tinued

prices

41/;>s of

The

well

distinctly firmer

was

4V2S and 5s
78, respec¬
tively. There was also a demand
for corporate issues of this prov¬
ince,
and
Calgary
Power
5s
changed bonds on a 4.75% basis.
as

bid

77

at

Saskatchewans
doldrums with

and

remained
no

in

the

Turning to the market for in¬
issues, a different state of
affairs prevailed. This section was
distinctly hectic. Holders of the
bonds called and maturing on Oct.
15

were

bonds

a

Quebec,

harvesting

ing

completion

crop

is

completed

has

been

a

is poor in many districts

"In

owing to

.

is

progressing

ably, with good

buckwheat,
golds

and

sured.
"In

.

■

.

turnips,

corn,

as¬

.

Columbia,
of

crop

yield,
good,

man¬

practically

.

apple

general

favor¬

yields of

average

beans

British

an

average

is

crop

Ontario, harvesting of most
crops

and

Haying

heavy

stored, but the quality

frequent rains.

late

a

threshing is

and

and

of

is near-

with
is

gathering of

well
pears

picking

less-than-

quality

in

advanced,
and

prunes

almost finished."

given the option to con¬
small premium into the

offered in connection with

the Fifth

We specialize in

Victory Loan. Although

the amount of bonds

so

converted

appeared to be large, nevertheless
the comparatively small total re¬
deemed

was

sufficient

violent fluctuations
dian

result of

a

general in most districts.

of

ternal

vert at

"In

below-average grain

recorded price

changes.

as

The bank's report further said:

The

anticipated.

were

Alberta

and

ewan

are

parts of Saskatch¬

some

frost damage.

a

was

quality of outturns has been

lower in

Quebecs were station¬

continued
demand for the longer Nova Scotias and New Brunswicks; lack of
supply, however, still restricted
dealings. British Columbias were
but

ary,

sections of

some

generally satisfactory, grades

dollar

to

CANADIAN

cause

of the Cana¬

Government

in the free exchange
,

The Federal Reserve Index of did

Quoted

—

Wood, Gundy & Co.

and especially nevertheless,
in business taxes, was exceed¬ bids fair to

be
6,403
5,116
3,373
3,295

1920

Fiscal

Federal Government to¬

the

Expenditures

Fiscal

involves.
In contrast to the policies
which many are proposing for

from

Government

S.

Including: Public Debt. Retirement)

The reaction and the

action.

Bought

to keep them.

saw no reason

want

we

course

All Issues

civil

The

want full

we

Dominion of Canada

pression,

market.

After

depreciating rap¬

-

Municipal

Corporation Securities

idly to 12V2% discount, there was
a sharp reaction to
11% and at
this level only was there any vol*
ume

of

trading.

still to be
for

the

••

There appears
strong latent demand
internal
issues
,which
a

should result ultimately in the
exchange reaching once more the

H. E. SCOTT CO.
49r Watt St., New York 5, N. Y.
WHitehall 3-47S4

Tele. NY 1^2875

lypAf-P

•S':»v
wmAriwi

1600

THE COMMERCIAL & FINANCIAL CHRONICLE

not

exist, to know what 130 matched

Thursday, October 21, 1943
the asset side of

on

the laws governing securities
by substan¬ and security exchanges. I
they will pay for, and to have tial cash and readily market¬ don't want a Securities and
it produced for them. Jt has able
securities, so that a good Exchange Commission inter¬
got to be a piecemeal job, many American corporations
fering with the details of the
with particular men in
par¬ in 1921 and 1922 did not need transactions in
securities, but
ticular
industries^ studying to
bring in outside capital, I: do want criminal laws that

What Can The Government Do

million people want and what

To Promote Post-War

Re-employment?

their particular markets.

(Conitnued from page 1599)

The coming
pump priming
bf NRA and the processing

of the war, will have reached dictator of

ftaxes knocked down the in-

The but. could

make their new will
prevent abuses and I do
plans; with liquid c a p i t a 1 want them enforced. I recomr
the people which
they had. In other mend (4) that the existing
what
they cases, they needed a great rules, and regulations of the
decree that deal of; new
financing because Securities and E x cha nge

cern

a

the balance sheet

totalitarian state

decree

what
figures that must give con¬
want
and
to every sober man with shall
pdex «&of production from a financial knowledge. We must shall have and can
level of 100 in July to a level speedily turn to radical gov¬ such-and-such numbers of .their/assets were not
very
bf 72 in November of 1933.
ernment economy in the in¬ men shall produce such-aiidf liquid.But, in:any case, the
such products. Governmental
surpluses ; gave them a credit
^ Then came the sudden terests of the solvency of the
economic
planning on these foundation on which the new
abandonment of the economy country. Even those who be¬
terms has been
proved possi¬ capital" could be readily ob¬
vprogram, and great spending lieve in government pump
ble.
But governmental eco¬ tained.
Now we have been
for
priming when the public debt
spending's sake. CWA
is moderate must have, the nomic planning for a demo¬ through aT
long period during
fwas| started, .'/ and monthly
cratic people who know what which additions to
'Federal expenditures jumped gravest reservations when the
corporate
•from $505,000,000 in Novem¬ public
debt
is
ominously they want and who know surpluses have : been v e r y
what they like to do calls for
ber to $703,000,000 in Decem¬ great.
meager, and our wartime pol¬
' ■ i

"'

ber

can

Can
industry repeat its
$965,000,000 in Jan1921-1923 performance in the
On Jan. 4, 1934,
President announced the coming post-war period? Can
and

Aiary, 1934,
•the1

go through the drastic re¬
adjustment as we shut down
;a budget deficit for the-fiscal our great war activities and
turn to peacetime activities,
'.year. 1934, that is to say by
Cluly 1 of 1934, of seven bil¬ make the transition, and work
l/lion dollars. The actual deficit b a c k to full employment
There are many,/!
realized in this fiscal year was again
we

•great spending program, and

indicated that there would be

..jfour ' billion dollars, as it think, who doubt the possibiljproved impossible for the ity, on the ground that we
1

Commission, together ; with
security and exchange
legislation, be thoroughly re¬
viewed with a view
to; elim¬
inating most of the detail;
and With a view to
saving that
part which is heeded-and val¬
the

.

uable for the

protection of in1

vestors and for the

of

fraud

preventioii
misrepresenta¬

and

wisdom that does not exist
and will not exist.
Decisions
a

icy; with extraordinarily high tion, and that new
legislation
corporate taxes and with fre¬ replacing the old and em¬
as to what is to be
produced quent renegotiations of con¬
bodying some of the rulings
must be made
piecemeal by tracts, has made it very diffi¬ of the Securities and Ex¬
cult for business
competitive industry, guided
corporations change Commission take their.
to build up
by prices.
surpluses. A great place.
In this connection, I •
But, in order that industry many of - them > are going to
hope that you Will call before
may be properly guided by need to go to the capital mar¬
you the able men in invest¬
prices, the prices must be free ket b e f ore they can
put ment banks and brokerage
to tell the truth. We must
get through
adequate post-war houses, who watch the Secur¬
rid of price
fixing as speedily plans.Access to that capital ities and
ExchangeTCommisas
possible. Something may market is badly hampered by sion and who
,

know

the

de-7

be said for the, continuation our
Securities/and Exchange tails, and get from them rec¬
great deal of flex¬
of price
fixing with rationing legislation, and by the rules ommendations as to
ibility in the intervening years.
what
in the case of a few
Now we have lost a
.'for.
very and practices of the Securities parts of the law and the rul¬
great deal
///.We-saw the effect-on busi- of flexibility.
But it is my scarce, essential commodities and / Exchange Commission. ings should be preserved.

'Government to spend money
•las fast as the first plans called

have lost

a

when the

is

war

How¬

spending. If contention that the loss of
ever, I should scrutinize each
credit all of the business flexibility is not due to any¬
case
very carefully there be¬
f/history, of the . ensuing 10 thing inherent in the nature
fore making concession tout:
;
months to the spending,. the of industry itself and is not
But the general
due
to
idea that
vl"record is very
changes that have
disappointing.
-/Business rallied from 72 in come about in our funda¬ price fixing must be con¬
liess

/we

of this vast

over.

t

.

^November

of

1933,

on /

the

mental

economic

structure.

tinued for the purpose

of

pre¬

7;

New capital issues, and above

Finally; I recommend that

all,new' stock

issues; by the law itself
with respect to •;
corporations have
propectuses and registration
been /
appallingly low since statements be
greatly simpli¬
the middle of 1933. There was
fied//Altogether too much
a
period in the last half of
detail is called
for; the proce-'
1936 and the first half of
American

1937

dure is

altogether too expen¬
wheil new
security issues in sive.
changes venting "inflation" must / be
The British law " with
due
to
in May of 1934.
Government policy, absolutely vetoed. There are the United States got up to
Then
the
regard to this is complied
and it is with respect to these other much better ways of something like
curve turned
50% of what with
sharply downby prospectuses of three ?
*ward, and, by September, it matters that I think that your dealing with inflation/ Indus¬ they had been in .1923, 13 to six
pages. The
shortest
committee can do its most ef¬ try knows what to do in war¬ years before.
had dropped to 71, one
I am not mak¬
point
time, when government is ings the comparison with the prospectus I have ever seen
below the level of November fective
governmental
eco¬
of an American
corporation
orders, and govern¬ years of abnormal security is¬
•at which it started.
In Sep¬ nomic planning. You can, by giving
issued
Federal Reserve index, to 86

c
'

They

are,

rather,

:

tember,

moreover,

there

came

law,

eliminate

or,

at

all

ment

knows

what

orders

to

of 1927,

sues

under

1928 and 1929.

the

Securities

and Exchange
regulations is
modify the rigidity give in wartime when mili¬ But most of the time since 23
grave disturbance in
large pages in relatively
and the frictions which have tary objectives are definite 1933, new
'.Government : bond r market,
security issues, re¬ small
type, while behind that
and
when
so-and-so
and grave concern
many funding excluded, have been
regarding grown up, through undoing a
ships, so-and-so many planes, ■well under 18% of the volume lay a registration statement
the Government's credit.
great deal that we have done
with much more detail in it.
so-and-so many rounds of am¬ of the
%
There is no certain magic by law and by administrative
year 1923.
I am not sure that I see
munition are indicated.
any
edict in the
I believe this situation calls
But
in Government
intervening years.
spending, nor
reason
for a
registration
nobody will know what to do for; drastic action on your
rcan it be counted upon to
There are
a
number
of
give

the events,

a

;either prompt results or last- points here. In the first place,
if economic life is to
'.j'ting results,- ; . ;
• >
- •
/Government- spending / in, itself.intelligently, it must be

r

if P^ce turn: production if
readjust^6 h°ld economic flXed> and
rob the °Ur pnC6S

•

wartime

is

the

information

which

another story.I guided by the movements of
talking about a peacetime prices. Rising prices in one freely moving prices give. /
With the abolition of
price
•policy/ And one of the dif- industry are a signal to profixing should go the abolition
.Terences
between
Govern- duce more.
The
industry of
virtually all the bureau¬
; ment: spending
in wartime where prices are rising draws
cratic controls that have come;
.and- in peacetime is that, in labor and
capital to it. Fall¬
.wartime, great expenditure ing prices in another indus¬ during the war. 'And I put in'
the word,/"virtually;", reluc¬
goes
through the ordinary try are a signal to produce
tantly because, as I say this,
.channels of trade instead of less, and a
signal to release I
don't know of any that need
'going into a great variety-of labor and to release capital.
to be retained.; If
,activities many of which com- The automatic
they want'
system of free
to retain
any, let them make
pete with ordinary trade and enterprise is guided and con¬
a
very convincing case for the
!which frighten ordinary- eco- trolled by
prices, not by a
individual case. ./
.iioniIc activities. But the
big¬ super-brain which sees it all
If business is to move
rapid¬
gest / difference
of
all, • of and plans it all.
The plan¬
!
ly in readjustment, ity musti course, is that in wartime the ning that takes
jilace- under
have." access to capital. - Our
I Government
expenditure of the price system is a matter
am

v

■■

;

.

,

,

■

!f

.

<

*1 borrowed money is on a scale of partial insights, each man
j .so colossal that nobody could seeing the things that affect

t
contemplate
a
comparable his
.-i volume of peacetime expendi- his

own sources
own

of

markets.

businesses

came

of 1920 with

mendations to make. I

recom¬

a

into the crisis

great

accumu-

and

'

(1)

they

had

that

the

Exchange

be

abolished.

(2). that

the

should

prospectus

Commission it.
I

I think

recommend

function

of

the

so

But

the

a

prospectus

suffice, and that the

Security enough

Security and Exchange Com¬

should

that

it

is

be

men

important that

prospectus

should

responsible document
basis

short

will read

be

a

the

on

of which

men
may be
receiving and fil¬ put in
prison if they falsify,
registration statements and on the

mission

ing
and

in

prospectuses/be

the hands of

put

in

a

basis of which the

purchasers of securities

will

purely minis¬ have
legal evidence for bring¬
body in some such place
ing suit in the event that they
as/the/Department of Com¬ have/ been
tricked and;
merce/You want a legal rec¬
cheated.
'
terial

ord- of the statements of fact

.

\: •"

-

.

,<

-

made. by meh who /are
out

,

We

putting

new; /securities '.so

that

access

need,

not

s;

merely free

of corporations to

investment

the

ban k e r s
and
they may be punished if they
make/false?statements or : if •through them to the investthey, omit - essential/ informa¬ ors, but we need also.a strong,,
•

■

tion

regarding the issues they

-put out. I recommend (3) that

Tation of corporate
surpluses' -there/be

supply and that
You don't

recom¬

community mend

of

statement.

part./ I have specific

created

in

saved; .';very partment of Justice

the

De¬

and

active. stock, market

which
ments

men

may

readily. Many

invest, if they have

a

security
able
arid exchanges!
ivision, whose

irr

shift invest¬
a

men will

depend¬

market ■ for the invest¬
providently, and very wisely,
ments
out of wartime
they ; purchase who
profits. These; •business it should be to prose1
With reference to the matiter of Government
surpluses were badly.;eaten Cute? by criminal law in the; would not invest if there
expendi- to*., governmental
economic
were no
into in the crisis
liquid market. And
dture in the post-war period, planning in a
year/, but •courts/of the United States
democracy in
1
they still remained large-for. ; men who make false registra¬ I. may add that .in order for
let me say that we face a
very peacetime is that the wisdom
the stock market to
perform
great problem.
The public,does not exist and the knowl- American corporations an the tion/statements or who put
this function
debt has risen to ominous
effectively there
fig-, edge. does not exist, and, I aggregate. In many ca.ses put;/false; prospectuses and must be
active ;
tires
speculators
already, and, by the end may add; that the power does'the
surpluses • were... partly. ;men;/who otherwise. violate
(Continued on page 1602)
;:'
'

ture.




need

central brain to make
that work. The
great obstacle
a

.

,

Volume

158

Number 4222

MMM
|ij

p '

'

vX%^X;Xjy.;'.

.VpW-'

mm®
SfafekS:

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mm
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<&m».<:A«; tai

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Industry is helping win the war...
industry must help' build a peacetime

^PSIHHBS
IflltliiS

The will

of our soldiers assures an

unconditional surrender. . .

Today the United Nations are joined in their

pfli




win

production centre

a

M

%

singleness of purpose

about "a just

Prosperity

can
a

have steady

determination to bring

be realized only through the will of an
united people. With their courage and their

determination, the people's

'

can

]

and durable peace."

informed and

peace

1
'

and workers

employment if they also unite with

£

determination

speeding "unconditional surrender."

Tomorrotv millions of soldiers

will to accomplish a righteous

is irresistible!:

'

it

>t<

People here, in common with people of other
prosper

only if

lands, can

materially and spiritually after the war ends—but
now the peoples of the United Nations make loud

their demands for "a just

and durable peace/'

THE INTERN ATIONAL
_

Subsidiary of The

NICKEL COMPANY, INC

International Nickel Company of Canada,
New York,

Limited

N. Y.

mmm
Awarded to
Huntington Works

mm*®®,

iiiiigpi

MM '0jm®

H

'

RHl

decisive victory. On every battle front and on every

a

farm and in every
is

F£ls^'

people can assure a just and durable peace

The will of our

tp

world

1602

THE COMMERCIAL & FINANCIAL CHRONICLE

the hands of labor is

What Cam The Government

deal

T@ Promote Post-Wai
(Continued from page 1600)
a

market

when when

are i n c r e a sed
corresponding in¬
any, who narrow the spread crease in production they cut
between bid and asked prices, tremendously into profits.
I
and who perform an exceed¬ 'estimated the income of labor
ingly useful function in the in 1937 at well over 70% of
the total national income and
general picture.
One other thing that has profits at about
15.3% of na¬
arisen, which can easily delay tional income. To increase
readjustment and which wages 10% at the expense of
could easily give us a terrific profits would mean
cutting
unemployment, is the loss of profits nearly in two. Profits
flexibility in wages. I believe are strategic in a free enter¬
in good wages and in
rising prise economy. Growing prof¬
wages. I believe that the way its mean expanding employ¬
to get good wages and
rising ment followed by rising
wages is to encourage the wages. Cutting profits means
growth of capital and to en¬ contraction of business activ¬
courage
in
tech¬ ity and reduced employment.
progress
nology and, at the same time, The ideal is that wages and
to
hold
down an
undue profits should both grow, that
growth of the population. production
should
expand, such
enormous power into the
Wages will be high when men with a rising demand for
hands of labor
are scarce and dear and
leaders, and
labor
cap¬
growing out of the ad¬
bring about a situation in
ital - and
natural
resources ditional production.
which there is
abundant and technological
equality of
Developments of the war
between
progress rapid.
When, how¬ period in the relation of bargaining power
labor and
management.
ever, we try to force the pace wages to profits and of
wages
of rising wages above the to total
Wages are part of the price
national income pre¬
system and a tremendously
level which supply and de¬ sent us with a
pretty serious
important part of the price
mand
in
an
open
market situation,
if
labor
should
system. Unless they tell the
would give, we get into pretty
prove not flexible and not
truth about the
serious difficulties.
I think
supply and
willing to readjust when the

there otherwise would not be

that

due

the

in

crisis

no

of

1937

they

without

was

war

is

a

over.

income

of

We have had

a

small part to the

very rapid growth both of
in wages which the hourly earnings of labor
began at the very end of 1936 and of the weekly
earnings of
and
which
moved
rapidly, labor
during the war when
cutting so heavily into prof¬ the
Government has been
its, a rise in wages not due
out vast sums of
to rising demand for labor but pouring
due to aggressive union ac¬ money. Profits after taxes, on

sudden spurt

under

the

the

Wagner Act.

other

hand,

have

The business

he

decides

to reject a new of
supplies.
saving device or a new
The CHRONICLE
technology, he may have ments on the views

labor

more

are

flex¬

ible in

making adjustments to
changing conditions, we shall
have

appalling rigidity and
appalling delay in making im¬

portant v transitions,

wholly

unnecessary

and

a

time

a

in his

own

plant than he otherwise
would have, but he
may also
fail to make his main contri¬

bution to

employment in the

country.
In 1921,

faced

we

war

a

great body of
technological ideas — t h e

chemistry of explosives, the
mechanics

of

aircraft, and

were

had been

so

volume

rushed that

risen of

sult

was a

great burst of tech¬
and

a

great burst in the utilization
of

©I1©




the

ideas.

new

The

immense

technological

result, too,

increase

was an

in

output

per wage earner measured in

that's

a

meet

new

needs—

Prudential fundamental.

physical volume
tion.

low-cost temporary income

policy ties in with Social Security—
gives the widow
come

guaranteed in¬

until her government

starts at age

the

pension

65.

was

employed.

Manufacturing- Production

United

in the

States*, 1914-1023

numbers

of

production, number
per capita output;

physical
of

volume

of
and

wage-earners

No. of Wage- Output per
of Product'n
Earners
Wage-Earner

Yr,

1914„_

100.0

100.0

127.7

124.5

102.6

105.7

100.1

156.3

130.3

♦Mills,

send

United

you

"Economic

States,"

I think

descriptive folder.

be

good deal

Governments In Exile
Governments

etary

in

exchange between the guilder and
the
set

franc in
an

ment

a

move

further

said:

"Officials of the three govern¬
ments were expected to set offi¬
cial seals to the
agreement within
a

week, but in advance of signing
intimation was given as to

no

what

rate

of

exchange would be

fixed.
"Out of the
monetary agreement
expected to come wide post¬
trade
arrangements among
the countries
involved, with the
was

war

possibility of
the

even

a customs union and

relaxation

linked

on

the

this.

a

I believe
a

similar

able to force

re¬

by

cultural

and

language ties, the two monarchies

exchange as the first complete
step toward realization of an in¬

monetary
program
within the framework of the Lon¬
don and

Washington proposals."
previous item regarding the
and
our

Holland
pact
ap¬
issue of Oct. 7, page

1425.

Postpone NASD Hearing
The

oral

be

a

argument

1921.

I

by the National Asso¬
ciation of Securities
Dealers, Inc.,
and the staff of the
Securities and
Commission

a

post¬

de¬

request of counsel for the NASD'
from Oct. 21 to Oct. 28.
The ar¬
gument will be on the

am

great industry
a

was

poned

leader, Petrillo,

to abandon the use of

briefs

on

submitted

am

much disturbed when I
labor

visa

announced the currency pact was
in the
making along with the in¬
tention of
stabilizing the rate of

py the Commission

four years ago on

a

of

nationals.

among

fines

see

may

between other European countries
after the war, it was
reported in
Associated Press London advices
of Oct. 13.
The account

did not exist in

Heme Office, NEWARK* N» b

which

example for the develop¬
good neighbor relations

of

gree of labor union resistance
to the new
technology which

(Smnprntg of Awerfca

of

k

technological activity. I

very

Exile

a tri-partite mon¬
pegging the rate of

pact

peared in

120.0

want to reflect

afraid that there may

*

in

have agreed on

opportunity and holds the
promise of a new great burst Exchange

Immma

Editor,

Monetary Pact By Three

Belgian

105.6
!

Tendencies

that the future holds

of

to

192,

p.

we

addressed

Commercial and Financial Chron¬
icle, 25 Spruce St., New York (8),
N. Y.

A-

100.0

1919_

_

or on

ternational

Phys. Vol.

1921_,

to

should

"Long

1923__

Qlad

a

story:

Index

a

produc¬

following table* tells

Growth of

article,

related phases of the subject
under discussion.
Comments

great increase in the number quirements
The

new

of

The result also

of workers

Our

Dr. Anderson in this
any

The

of new things
awaiting a peace¬
time application.
During the
period
1914-1919,
business
men

com¬

Holland, Belgium and Luxemburg

a

great variety

which

invites

expressed by

a new re¬

There had grown
up

source.

demand situation in the labor in the

market, unless they

for

men

nological improvement

New policies to

the ground

on

that it takes work away
members of his union,

they had had little time to
unemployment with, of apply this new
technology to
Wages are so large a part of very moderately. The per¬ course, a
very big reduction peacetime uses.
But in 1921
the national
income
that centage of national income in in the
annual income of labor they had time and incentive
to
study and to plan. The re¬
tion

saving device

labor.

for the year 1937.
leaders of the

Re-employment?
make

great and in the real

higher than the more
70% which I reckoned

from
community is
and
If the labor planning, and the business1 when I find the courts
up¬
country will community is being exhorted holding him in this as within
prove themselves to be good to plan.
The business com¬ his rights under the
existing
merchants, study their mar¬ munity is being urged to plan laws of the United States. In
kets, see what their markets for full employment. I want
your planning of general pol¬
can afford to
pay, and aid in to observe that this demand,
icies, I think you will need to
bringing about wage readjust¬ laudable in intent, is missing
give attention and careful
ments, we can move rapidly in very important fundament¬
study to this case.
in
eliminating unemployment als. Having in my own mind
The
economic
planning
as we
go through our post¬ the objective of full
employ¬ which I think the Govern¬
war
readjustment. If they ment, I do not exhort the ment can do most
effectively
try to hold up wartime wages business man to plan- for full is
planning to increase the
after the war, there are omin¬
employment, but I exhort him flexibility of our American
ous
things ahead.. We can to do something which he economic
life, to restore free¬
have gigantic
unemployment knows how to do and which dom of movement of
capital,
and chronic
unemployment, he will understand, namely, labor and
enterprise, to take
just as England did in the to plan how to make
money sand out of the oil, and to re¬
1920's, through wage scales in the post-war
period.
He duce frictions. I don't think
held too
high in union policy. understands that, and if he that the
Congress or the Ad¬
In this
connection, I must does it well he will give em¬ ministration or the
Chamber
say that the Congress has a ployment.
Now, one differ¬ of Commerce or
anybody else
very
ence
important duty. The
between the two
ap¬ can make one general plan
Congress can, obviously, not proaches can be a very great for industrial
revival. I think
pass any laws requiring the difference in economic
policy that is a piecemeal job for
reduction of
wages.
But the on the part of the business each industrial
establishment,
Congress can rectify the Fed¬ man. If, over-impressed with
separately studying its own
eral legislation which has
his duty to make
put
employment, markets and its own sources
than

who

a

Thursday, October 21, 1943

labor

at the

validity of
imposed by the association
members of

a

selling group.,
Mention of the

hearing

viously made in the
Chronicle" of Oct. 14
Oct.

7 (page
(page 1286).

was pre¬

"Financial

(page 1504),

1404)

and

Sept. 30
*

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4222

Volume 158

security for citizens, in the opinion
of Herold G. Woodruff, President
of the Mortgage Bankers Associa¬

Legislation To Permit

Industry Plaits^ j Life Prem.

Seductions

For The Future; From Income TaxUrged

|

tion of America.

The Association

has gone on record

as

approving

the bills which would make this

possible, says its announment Oc¬
(Continued from first page)
tober 17, which also states:
Enactment of legislation per¬
profits. If, after the war they are
"The bills would permit deduc¬
so
levied as to maximize the; mitting deduction from gross in
prospect of profit, the effect on paying income taxes of the amount tion from gross income of the
as
life insurance
business expansion will be highly paid for life insurance premiums amount paid
would act as an important eco¬ premiums on policies in force Dec.
beneficial."
Stating that the government nomic stabilizer for millions of 8, 1941 on the taxpayers' life or
now owns industrial plants valued
policyholders and would consti¬ his dependents, up to a maxium
at more than $14,000,000,000, Dr., tute an
important and tangible of 10% of his net income or $1,000,
whichever is less.
Lyon said that business has not contribution to the Government's
"The purpose of the legislation
yet found a way of making many program of urging greater social

160$

Enter Consent
eral

Judge

of

Judgment

MINNEAPOLIS,
Gunnar

H.

America, Inc., disposing of 14

of the 16 counts in the petition of
the Securities and Exchange Com¬

MINN—Fed-

Nordbye mission for

a permanent injunc¬
against the defendants for
certain alleged practices.
"
Hearing on the two remaining

has signed the agreement present¬
ed by counsel for the Securities

tion

■

and

Exchange

Investors

Commission

and

Syndicate, Investors Mu¬

These

taxes but to assist

escape

been

set

established

pro¬

officers

is

policy following the war—

for

example, the size of the army
and navy which we may maintain,
the types of trade relationships
we have with other nations, the
prevailing political attitudes to¬
ward government ownership, and,
to

we

able

are

get men back into peacetime

employment—that it is almost im¬
possible for business men to have
judgments on this matter until
pronouncements
of government!
policy have been made."
"The difficulty of shifting from
government

orders

OVER

civilian

to

markets," Dr. Lyon said, "will be
accentuated by the fact that re¬
negotiation of contracts for the
purpose of eliminating excessive
profits is now conducted under
the

policy

that

gives

direct

no

consideration to the costs of post¬
war
reconversion.
Many * com¬

panies
lack

will

probably

adequate

such

therefore

resources

to make

reconversion

promptly and
effectively." Dr. Lyon stated that
•the most pronounced view among
business
of

is that the problem

men

excess

profits should be dealt'

with through taxation rather than'
renegotiation.
•

"

Warning against

laxation

of

controls

too rapid re¬

a

government -wartime

over"

closely bound

with the whole

up

tively little which business
about

the

matter

and

business

groups can and

are making
suggestions to

affirmative
gress and
cers

to

affect

There

is

no

many

Con¬

administrative offi¬

concerning

which

specific

tion-—the

businesses.
but that the

doubt

far toward

influencing changes of

policy and practice in
portant

im¬

many

governmental'

bureaus.

In general,
however, business men
recognize the necessity of controls
and realize that the final
decisions

concerning their removal
matter of national

must be

policy which

takes into account considerations

beyond

the

knowledge

of

protection afforded by Business Life

Insurance,
But

a

far

more

power

of

important asset—the brain,

key executive—is frequently over¬

a

indi¬

vidual business men."
In concluding his
address, Dr.
Lyon stated it as his belief that

BUSINESS LIFE INSURANCE

looked.

cannot

the power

of a business is its brains—

the

principal

labor after the
that

war

1,
The loss of material assets

can

be made

good

Indemnify

replace the

man

ders the business

it advantageous and, profitable

for

the business system: as a
vyhole to
expand its operations so. as
to

utilize^ our growing

and

population,

absorbs in improved
equip¬
ment, the savings ofvthe American
people.
The
national
policies
which will make these
things pos<.
.

sible cannot be
established in di¬
rectors'
meetings. They must be
established

primarily in .national

legislation."




,

-

business.

your

business against its great

Assure the cooperation of creditors.
Permit

ren¬

profitable.

the completion

of projects already

under way.

His death

causes

uneasiness in the

organiza¬

tion, shakes the confidence of customers, and

4.

Attract

a

tightens credit when credit is needed most.

him

And death

nrnWpms.

usually strikes at the

wrong

time.

to

LIFE

IN SUR A

Springfield; Massachusetts
Organized 1851
BERTRANB J, PERRY,

competent successor

carry

policies which will make it possi¬

-

your

3,

whose directing force

ability of business to
employment will depend
the adoption of national

consumers, and which will make

in

2.
to

employer of
but he warned

prevent the benefits of
technical
advance from being passed on
to

man

quickly. But it takes time, thought and money

"the

ble for those who want work
to
be employed, which will
make it
impossible
for
monopolies —
whether of business or labor—to

key

loss.

give full
upon

a

The Cash Proceeds Will:

brings in customers.

private business will continue to
be

will compensate

prevent, but

the loss of

that develops it, creates good will,

controls

their

expressions of business have gone

a

chinery, stock and fixtures.

The greatest asset
men

appraisal

practice to insure material assets'—plant, ma¬

this

•

"Business

a proper

of brains. And brains call for the fullest protec¬

men

at

Today's conditions call for

accepted business

so

prosecution of the war effort that
in this instance there is
compara¬

time.

an

materials,
manpower, and ra-'

prices, wages,
tioning, Dr. Lyon said that "the

do

it has been

raw

removal of wartime controls is

can

For years

lu.

"guilty" of managing

the

terwoven with national and inter¬

the skill with which

Nov.

companies for the "personal
tection plans in normal times but benefit of the officers, directors,
who now find it difficult to main¬ departmental and divisional sales
tain them in this abnormal period, managers and the equity stock¬
holders" of Investors Syndicate.
Mr. Woodruff said."
those who have

positive and constructive pro-,
posals concerning the disposition
of these plants.
"The problem is so closely in¬
national

for

counts

charge "gross mis¬
conduct and gross abuse of trust"
and assert that a certain group of

is not to make it possible for peo¬

ple to

has

counts

tual, Inc., and Investors Syndicate

President

on

and enable

unhampered by

money

1604

THE COMMERCIAL &
FINANCIAL

The

The Current Monetary Situation
We

us.

supply

will

make

solution

money

that interest rates

so great

will be low for

the

indefinite time

an

possible and that

building and re¬
construction during the post-war
period when this will be most im¬
devaluationists

not discuss will be the

effects

of

will

this

should

nation

used

huge volume of de¬
valued dollars—the high
prices,
the huge tariff against imports,
a

of

cannot be
be

a

country.

There

should

be

among

the

their

squelch such

to

upon

in

an

the

totally

are

expenses

devising

ways

bleeding

the

white

be

the

and

of

disappear.

price

We

we

we

would

level

well

of

the

1930's

Because

governmental

to be created to
maintain that

level

indefinitely. When

and

on

tion

in

of

Meet

the

Problem

of

the

All

these

lem< of

have

matters

important bearing
***>-)

meeting

most

a

upon the

WVWi

•

il

1

tional debt.

Aside

Because it will

probably be, let
say, in the neighborhood of 300
billion
dollars; because of the

great

tax

upon

the American

burdens

that

will

is

to

ill

a

the

..

spending

engaged, it

seems to

the

other

is

to

bleed

to

System, in

quire radical relief; and because
can
expect plans to give them

dollar,

or

other

some

form,

be fortunate indeed if

solution

a

to

this

we

find

can

debt

which
with

judgment,

attempt
debt

as

principles and

It

sound

finance

is

now

that
or

handle our national
have done it up to the
of the recession in 1929.

know,

a

prise

to

all

we

tend

Egg" is in¬
fable where private enter¬

and
my
as

capital
opinion

high

some

unwise

that

we

them

in

dangerous

concerned.

that

they

as

of

are

taxes

are

should

be,
too high

are

nature, that it is
keep on insisting

to

should tax

and more
prevent what is called "infla¬

to

more

tion," and that it would be infin¬
re¬
spect to the national debt suggest itely better for the American peo¬
and American traditions with

that

we

restrict it

much

as

sible and then retire it
as

we

of

can,

the

as

as pos¬

speedily

beginning at the close

war.

But

to

pursue

this

path will be to invite, in my
opin¬
ion, the success of those who
would plunge the American
peo¬
ple into fiat money,
devaluation,
outright debt repudiation.
It is my belief that if
Congress

ple

be

necessary

fighting off

programs, it will
for the American

develop

as

much

as

I

possible, and

think this should be done
in
order to
encourage private enter¬
prise to go ahead again and to
expand production. If I am cor¬
rect
in regard
to these
then

it

would

to

naturally follows that
be

better

to

it

consolidate

huge debt into a permanent
indeterminate one, and plan
carry the interest charges on

the consols
along with such other
governmental expenses as are ab¬

solutely necessary.
our

great

such

as

I believe that

investing

institutions,

life insurance

companies,

savings banks, trust funds, and

so
on, can absorb 300 billion dollars
of consols.

I

the

I

facts

should

government

some

would

obsessions

to the

of

as

eliminating

non¬

as

war.

I

think

Bankers

that

American

Association, in

tion of Sept.
as well as
it
it

the

resolu¬

a

15, stated the
be

can

matter

stated when

said:

the pbsition taken
monetary
authorities
1939 is equally valid
today.

Another
this

met

war

extent consistent with

the

should be

by taxation to the maximum
maintenance

of

production,
morale

thing to

notice

should urge as a

part of this


I


current

income; then from the idle
funds of individuals and
corpora¬
tions; and lastly, from the banks
of the
nation, the
of which should be
to the extent

lending

powers

employed only
necessary after ex¬

hausting the
It

is

in the

other

two

sources.

best tradition of

de¬
mocracy that lending by individu¬
als should be

voluntary."

I should like to add
my
dorsement to that statement.

en¬

theless

under

afford

these

repressive

It

such

a

great

to black

to

the

is

as

we are never¬

to

of

apparently,

by

pro¬

tected, that government

in

tni KPtprevented with
down' tha* *
will be

about

business

should
any

quence that

the movement to raise
prices, and then to stabilize them
at the 1926
level, called their ef¬
forts an
attempt at what

costs will

most

necessary.

readjustments

as,

exclusively

liquidating

a

and

that

we

or

al-

can

C/LCa.pe !he is no
"Measarit. And
certainly

thprp
there

good

assuming that

we

can

nCXP?£t t0

basis

quUeT VlCt°r

to

go

the dis~

escape
penalties which wars

38

ex-

as van-

since
Amei*ican people
do not seem
inclined for the pres-

?St to let prices reflect the
V° S of supPiy and demand, it
seem to

fm-pp

would

follow

that

uov

may* continue
Ruling the war but

nToTn cont^
hnnc

per-

i

yeS offh! Sevfral
readjustment. P°St-War period
jf0.

Li
speculation There'
for W

~
u

?

a

are

w a"y°ne

Z°leu otthe war and

I do

predict

can

at thp

for the

two

ITr thereafter- Should

fhi
•
continue,
the prices of
new

what will be
goods expected

f!t Vtntoentei'PriSe? How

they

of

sTma °y

ei>?bleS invoIved that

ofeth«tUation wi" be

elose

or

011 Production
c°ntrols continue

conse¬

the post-war reaction
smaller; and that
in

be

and

occur

no good basis in
Lconomics for
supposing that we
can have the
pleasant adjustments

controls

war boom
the

these

k?
boom. a natlon is
There is

a

stabilized price level at all
costs
on the grounds, chief¬
ly, Hhat consumers will be

of

correctives

for
example,
recovering from
Sometimes they are
unpleasant as, for
example,

ivilf be

importance

best

are

depression.

a moral

nation.

recognition

facts,

to

fanatically -determined

adhere

of
a
stable
price
level is that from 1933 to
1940 the

wil1

event,

production in general
probably as great as it could be

is

if

prices were permitted to
rise.
Ihese matters raise more
ques¬
than can be examined and

they

called "reflation." Inflation
would

tions

begin, they said, after the

vAufilivoived m

uge bureaucracy inmaintaining price ^on-

answered

price

level reached the 1926
base of 100
per cent. But when we embarked

at my

upon our armament and

sible

gram,
were

war

pro¬

particularly in 1941,
suddenly deluged with

contention
index

of

that

any

rise

I

we

dex

of

short,

as

in

level of 100 per cent
terion against which

should

put

first

more atten¬

production, civilian

well

as

^ai:> alld by* seeing to it that

legarded

as

is

secondary matter.
I should
say that where it can be
demonstrated that no increase in

the cri¬

cent of
is

not

these

the

prices can

j

1926

level.

The

only that the exponents of
of inflation have
most
inconsistent in their
but

also

that

neither

contention will withstand
careful

ca^Sthat, had prices been

mitted to

consideration

is

more

mum

production

services and

of

maxi¬

goods

and

harmony in price

re¬

lationships.
thing
an

that

substitutes
been provided

have

vention

should

expansion

of

come

the

production.

state

me

stimulus of

draw from

At

in

to

mankind?

than

those
This

of

Canada

and

discussion is gen¬

*

planning how to

give

rising prices

would

best,

by the

able,

use

of another. It is
prefer¬

in my

opinion, that prices be

fho

m'ograVs'which

concerned more
with

tow to

thhPhW„hatt W? have than they
b°w to

,u

that

we

increase produc¬

consider

from

whether

of

programs to save peo¬
want and fear dn

1

want

are

two

of

fh^

nmm

"i the

nr°mW3nt and fear

~

manv

R^ PUor showing in little
according tn

Puerto Rico
rnieito
which,
Governor

Tugwell, is

iate

permitted to rise.

aWnv

face°hf

of

another policy and
attempt to combat one evil

nf

cease

wardness of our
position in
lsing to save the
people of

ingenious
control

our

vve

HvRWSthSifimUlat°rs of human ac¬
tivity , that we consider the awk

what

wrongness of

England.

*

that

ead

Advocacy of subsidies

is

less

the
with price

conserve

tion,

pn^es is a dangerous enterprise

an

nn

Beyond the various
points
T
have made I
should like to uree
bat we seek to

ple

advance

the

whether

or

humanity

some of our

to allev¬
thm stresses caused
by price
control is merely evidence of
the

price level is rising

y-vv:" v>v;:;;

are

tor a government to
embark upon.
.

our

i,

not

would

millions of

point
we
seem
to
have
reached the wrong decision. Our
press
is full of discussions
of
and whether it has risen
more

eontrm

un¬

is

this

counting

to do the
current

per¬

and

On

first

am

icesrensnoftShValidi-ty- ^hink

are

through in¬
discovery with great

and

wS can benel'ils
un
wno

people?

In war, as in time of
peace,

rise, important

foreseen

regard¬

important than the

I

out

oo" efiUlyta/han* w' WC We'?h ^ore

hope that

we

economic analysis;"

Another

and in the

might minimize
somewhat
post-war reactions.
But even then I should
expect
serious mistakes to be
made. Who

concepts

contentions

ixhr

«y,

the

government

point

the

a

induce greater produc¬
inflation was tion then, for the period of the
to be measured. In
1941, the base war, we should run the risks in¬
against which inflation was to be. volved in
stabilizing prices in the
measured was shifted to 87
mtei est of the
per
consumer and
was

Zl judgmont that

as Pos-

the behavior of the
price level

1941

to that time the 1926

up

we

tion to

stood at 87 per cent of
1926 base.
In

think

the

in

prices

lent as brief1^

JU

things first by giving

wholesale

wholesale

effectively in the time
disposal. Let me state my quicker

the

prices there¬
after would be inflation.
The in¬

and

post-war reconversion
reserves.
"Borrowing should be first from

of

de¬

ever

nation is

a

subsidizing

cannot

throughout the

leaders in

been

"The cost of the

that

who

Despite

con¬

incentive, the preservation of the ing the question of the
price level
economic
structure, and the estab¬ is that we seem to have taken a
things, lishment by industry of
adequate position that a stable price level

this
or

the

essential governmental
expendi¬
tures and of
encouraging produc¬
tion by private
enterprise in every
reasonable way—civilian as well

people to have their tax burdens
lowered

if

importance

or

is to be successful in
these dangerous

with

history.

for

programs

given to these

economic

al¬

calls for
rationing of
supplies, and it may even

to

+a*ld i<; fosters

lot

harmony

well-established

those

deed

we

beginning
As

therefore,

shall find it vwise not to

in

is

sort

requires
buieaucracy, it gives rise

public statement in
were

it

the

best

buyers

time, they

in¬

production when
expand and to invite a
demand at those artifi¬

produce

they said that the Board's

observations

apparently

programs of monetary deprecia¬
tion or debt repudiation.
It is my

a

They tend
and to

ocedure

pi

Jead

sound

was so

consequence

a

reac¬

the

and

has

man

same

pleasant

wnen

to repress

scaice

monetary
country en¬

dorsed it in

the

think that the
story of the "Goose
That Laid the Golden

problem

which will at the same time save
the American people from these

that we

so

natural

should

programs.

As to the matter of still
heavier
taxation, I have the impression
that many
people both in and out¬
side the government

will

we

war,

distorting factors for a pe¬
of time.)
Holding down prices astrof«
astious

producers

The Question of Heavier
Taxation

devaluation of the
partial or full repudia¬

a

At the

Sometimes

for

cially low prices when
ready too great.
This

prosperity, and pointed

probably

producers

general,

are

enters

rationing forces.

greater

emphasized, among
things, that steady prices do

monetary

relief in the form of the issuance

tion in

Board

are

to

when maladjustments
readjustments
are

.

have, in
eyes 'to the
we

an

tends
it

well put that 66
economists of this

we

of fiat money,

riod

our
experience of the 1920's as
lesson. They concluded that the

and

is to

m

,

come

statement

a

the

stabilized price level

people
white through taxation—both
to
prevent or to minimize what it
calls ''inflation."

re¬

nation

a

prices tend to rise. These
prices in themselves be¬

average of prices. This reply
by
the Board to those advocates of
a

orgy

one

as

increase in supply. (Forces
of anticipation
may of course be¬

relationships among prices were
important than a steady

have two

obsessions;

nation

a

more

chapter

keep the price level steady, and

rest

and

be¬

Federal government

our

other major

taxpayers at
because they

the close of the war;
doubtless will demand

n

from

in which

us

as a sorry

have

hold down demand

vite

of Governors

issued

respect

other

records of this nation.

mounting na-,in

our

national

our

down in history

prob-

come

to

machinery required

1939,

not assure

havior—that is, this governmental
spending policy and the people's
stupified reaction to it—will go

Mounting National Debt

jmpvi VUUV

of

guides

and sellers that

vised.

The

rising

crea¬

of

phase

of
en¬

consequence.

Prices

they now opcrunknown element

we

demand

that

is

pressures

Congress for the

such

March,

this spend¬
predict that

also

serious post-war

more

as a

as

an

^arce.

means.

I

the

were

The

what

When

during

leading pro¬
posal to maintain prices at fixed
levels through
monetary action.

orgy

and

placed stability of the price level

1926, after
machinery

with

this

it

like- these

of fiction.

thrift

The Relationship of These Matters
to the Question of How Best to

controls

ate has in

most

people
are
stupified.
Some
day
this
lethargy will give way to a bitter

omi¬

so

undoi

times

com¬

efforts

sal

'

in

prices

a

tion

certain, if not
most, goods becomes abnormally
large and their supply unusually

was

the

and

form

It does not

which

The cyni¬

around

the

of

made to raise the level of
whole¬
prices to that of

prob¬

in

suspect

following basic facts:

sale

of

turn

we

heavy taxes which
danger production!

be

to

realization

devaluation of the dollar
nous.

index

then

sacrifices

very

straction, the index of wholesale

1923

any

be recalled that

of the Federal
Reserve

that

itself.

has,

from

for

attention, the Board

proportions

taxes;
force

far below

are

Furthermore
our
wholesale
prices is

this

during

do

that

Federal dissipation of our national
patrimony has reached such colos¬

country.

It is this among other
things that
makes the coming struggle over

deposit currency

the levels of 1928 and 1929.

reposed

level

cal wastefulness which marks the

inclined to let the devaluationists
have their way in this

of

ab¬

of

probably had the

price

may

most

people
some of

these

ser¬

We do not discuss the fact
bank debits and the
velocity

ahead ol production,
the main, shut our

It

in

means

taxation,

aspects

lems would

does

American

through

worst

a

it

as

same time impede
production and
restrict the amount of income that
would otherwise be available for

or

relation¬

vices.

that

catastrophies.

unnecessary.

lopping off needless and frivo¬

lous

harmony

the

parable length of time in our his¬
tory and that it ended in one of
the
greatest
of
our
peacetime

thought

in

steadiness

ourselves

to 1929

If the government would
spend
much time, energy and

as

stable

1920's.

stable

enterprises

on

The

of the faith

us

the

remind

njoney extravagantly

wastef qlly

that

fight to
program, who are

a

spend)

and

many people,
better, and who

counted

to

payment of

ities

are

leaders

callous

mathematical

a

in

ships of prices for goods and

re¬

heavy taxes and
purchase of government se¬
curities wh|le J;he Federal author¬

avoided, and it promises
dangerous one for this

who should know

in

the

program
should
be
condemned
and stopped. It seems quite clear
that this is a coming battle that
to

should

mind

the

begin
warning
the
of the dangers
Every move of the de¬
behalf

expenditures

appalling de¬
gree, in asking them to sacrifice,
as they have been
doing, through

people
in

corresponding

government has been very
unfair to the American
people,

to

valuationists

a

what is the state of

maladjustment

is

If we were to make
greater pro¬
in
duction, civilian as well as war,
recognize prices the first
consideration, then I
war, taken in black markets, or the actual
should think that we, should cxr
on
a
special and a peculiar sa- prices growing out of the
passing pect to have a rise in
credness.
It has become one of of cash to
prices and
supplement fixed prices, that this
would be desirable even
the
outstanding fetishes of the oi the fact that labels are changed
though it could be demonstrated
day.
or qualities of
goods are altered -—and it
cannot—that there might
Besides being a mathematical ab¬
This
phenomenon should

and

Now is the time for the
thought¬
ful and intelligent leaders in this

country

retire

but

mathematical abstraction
since we entered the

be

Our

alleged gains.

involved.

nothing

and later be cut to the bone.

now

fects that will far overbalance the

American

surplus it would

what

"inflation" that have gen¬

straction.

Of course, al] non-essential
gov¬

pittance—disastrous ef¬

mere

to

a

ernmental

purchasing power
of accumulated savings, fixed in¬
comes, and so on, will be reduced
a

be

prevent

uine significance to us
today.
First of all, we seem to
have
forgotten in this country that an
index number of a
price level is

tax program

our

to

We talk of war involving
sad-;
nfic.es, but Ave try to avoid; them)
by price controls which at the

question of what is Staking place
our
productive activity and

m

aspects of the
to stabilize the

attempt

Thursday, October 21, 1943

erally quite apart from the greater

some

level

called

as

amount of this debt.

the fact that the

to

radically

expenses, with the understand¬
that if in any year there

ing

devastating

flooding

with such

expen¬

geared to the payment of the
interest on this public debt and
to other unavoidable
governmen¬
tal

the

as

price

be

portant.
What

government

ditures be reduced

and this will aid

are

current

that

Stable Price

a

Level

There

(Continued from page 1598)

-£o

Question of

CHRONICLE

j

than it

was when it

no

better off

was won from

I toT&iSf' and l¥t we
standard of iivtog3^1" be

com"

"raised

and

produce6 ^ore^gwdV

■services

for

us

all.;

and

nd

With

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4222

^Volume 158

Expanding Govt. Debt And Higher Taxes,
New York Majestic

Looks For Higher Price LevelsIn Post-War Era
The certainty in the post-war era

before the

war was

this

That's

a

will

high

be

for

to come, of that we
can be certain, but still they won't
match
expenditures
and begin
years

many

cutting the Government debt for
There

time.

some

the

before

fined to
wide.

is

only

A higher plane

answer.

than

this

war.

one

of prices
Not

con¬

country but world-

Looking

prices

coffee

at

only it is evident that coffee is
good collateral now and only a

higher market is in sight for the
next few years.
Maybe longer.
Notwithstanding the supply-de¬
mand situation. Mostly this will
be a reflection of the inflationary
forces

working

Paton

stated

all prices for
goods and services everywhere."
In
presenting his views Mr.
on

that

there

are

Effort To Kill SEC
Seen By
President
press

on

Members

Oct.

of importance to
all naturally

views in short
concise fashion, and attempt to
cover many different factors."
give

In

you

my

address he

his

the fol¬

had

neighbors in this hem¬

isphere, most of them coffee
ducers,

piled

have

up

pro¬

over

a

billion dollars in credits (just like
the people here with their back¬

log of bonds and other forms of
savings). The people of the pro¬
ducing countries intend to better
their standard of living with that
money
when peace allows the
world's factories to halt making
guns,
planes and bullets.
And
since their standard of living has
been lifted you can bet

they'll do
the gains
made.
They cannot achieve any
materially better standard of liv¬
ing on 15-cent coffee, certainly
can't approach ours at that price,
and they know it. They are sell¬
ing now at our ceiling prices be¬
cause they feel it an only proper
and just contribution to the war
their

'

best

to

maintain

effort.
"This also
Our farm

they know and note.
prices are up more than

100% since 1939.

The chances

are

that

they'll go higher. And who
that it's unfair of them to
ask
for
their
produce a price
which will permit them about the
same benefits as those enjoyed by
can

say

American

farmers.

So

much

for

price. Let's go on.
"Coffee will flow freely in the

future, and coffee rationing is out
for good.
In other words, the
shipping shortage is licked. Even
the impossible, i. e., renewed sink¬
ings by German submarines at a
rate matching the peak of the
war would still not outweigh the

present rate of ship construction.
"Restrictions

York

under-cover effort

52 WILLIAM ST., N. Y. 5

HAnover 2-2100

close

Real Estate Securities

that
the good old

New

days.
announcing the resigna¬
tion of Edmund Burke, Jr., as a
of the SEC

and

the ap¬

pointment
of
Robert
McConnaughey to succeed him.
Mr.
Roosevelt
explained
that
Mr.
Burke

was

forced

Government

from

to

withdraw

"family reasons."

Burke for his 10 years

ment.

With

respect to the President's

remarks

on

the effort to

kill

paused
paper

to

men,

Co.

Certificates

F-l

a

of

located

in

modern
construction/?
well-populated, pros- '

residential
areas,
have
proven
themselves good income
producers for owners and man¬
agers.
The rate of return may
vary from as low as 10% to as

perous

high

—
% of

A great amount of
into
the management, and unless one
makes it a full-time job, it may
prove
burdensome
despite
the
good income.
Many

effort must be put

persons

ment houses ;

effort

make their

This

and

responsibility

involved.

is

a

in

the

in

3,711,589

Manhattan

Bronx

4

Manhattan

in

Miscellaneous

prising

ings,

2

garages,

1

fraternal

parcels

1

6-story

theatre,
hall

of

Interesting Situation

recital

of

real

estate

matters

S.

1

and

have prepared a detailed study of

American

Metal

Company,

Ltd.,

which the firm believes offers

an

interesting situation. The present
setup of the company is somewhat
outmoded and if the possibility of
reshaping this should materialize
there could be

a

considerable ap¬

preciation in the price, the study
declares. Copies of the study dis¬
cussing the situation in detail may
be

had

from

Arnhold

Bleichroeder, Inc.,

and

S.

on request.

There

were

as

distributed

Oct.

and formerly

Mur¬

originally 121 units

1943, totaled

30,

For the
year
ended Dec. 31,
1942, of the total net income re¬
ported from all sources available

income

770.27

distributions,

received

was

has

There
3,273,660

13

as

$669,-

interest

been

definite

a

im¬

Altogether there are 111 income
producing properties making up
99%% of the assets of the trust

tate and greater

F-l

a

continuous effort to

maintain the

properties owned in

There

is

good state of repair, and to cut
down costs of operation without
a

impairing the service to tenants.
To further this work, the F-One

activity in mort¬
refinancing during this year.
Within the past three weeks the

gage

of

trustees

announced

the

sale

six-story elevator house for

a

all cash and

a 17-story loft build¬
ing for cash and a purchase money
mortgage.
■
.

Under

conditions the
liquidation of assets may be accel¬
present

erated because of the greater de¬
mand on the part of investors for
the

type of properties owned

the

trust

by
Then, too, the
lending institutions, such as sav¬
ings banks and insurance com¬

panies,

estate.

are

seeking for investment
in

the

type of mortgages owned

the

estate.

The trustees

are

fully

aware

edly

seeking to effect sales
properties and mortgages on
as possible.

booklet

entitled

"Tax

Guide

for

where they 1943," work sheets, a handy chart
on how to treat capital
gains and
are going and how, will survive.
"Coffee
consumption
in
the losses, and a list of suggested ex¬

Series A

who know definitely

United States will rise to

a

new

changes to establish tax gains

New
F-l

York

Title

and

Mortgage*

certificates appear to

answer
the requirement of real estate in¬
vestors for
money,

the

a

with

good income on their
no effort involved in

management of the property

itself.

At

present

quotations,

current return of over 8%

(Continued

on page

1609)




& Beane upon request.

a

would

Furthermore,

dation in view.
a

-

AA

-

3 to 18

/ TRADING

MARKETS IN

REAL ESTATE

SECURITIES

and all other

TITLE CO. CERTIFICATES & MORTGAGES

SHASKAN & CO.

or

capita peak by the end of next losses.
Copies of this interesting
year.
Aided and
abetted,
of and instructive kit
may be had
course, by the efforts of the Joint
from Merril Lynch, Pierce, Fenner
Coffee Promotion Committee and

per

as

Corporation, originally organized
be obtained, assuming that the
44 properties operated under as¬ by the trustees, manages substan¬
tially all of the real estate owned, same
average
annual payment
signment of rents or by receivers,
with the exception of four units.
mentioned before, is maintained.
and 43 properties owned as real
In the servicing of the mort¬
This, of course, does not take into
estate. As of Jan. 1, 1943, there gages, the work of the trustees is
not merely limited to the collec¬ account the liquidating payments,
were
66
mortgages owned, one
tion of interest and amortization. which have averaged 1%% an¬
property operated under assign¬
1'hey undertake to make periodic nually beginning February, 1938,
ment and 46 properties owned as
inspections of the properties them¬
and including October, 1943, with
real estate.
selves to make sure that they are
the prospect of accelerated liqui¬
These 113 units were divided in maintained in a satisfactory phys¬

comprising 34 mortgages owned,

on

But only those

of

favorable terms

soon

this truth.

of

these conditions, and are undoubt¬

NEW YORK TITLE & MORTGAGE

strate

on

provement in the sales of real es¬

facts,

James R.

certificate

to

income, which was an
average of 4.8% annually. Princi¬
pal payments during this time and
including a payment of 1% to be

vacant

land

Burke, lawyer, specializing in

Bleichroeder, Vice-President of
Inc., 30 Broad St., New York City, phy, Inc.
and

distributed

holders

mortgages owned, and $486,357.21
was the operating net profit from
properties owned, including the
net
receipts
of
the
property
operated under a rent assignment

com¬

loft build¬

6

4

—

taxpayers,

hotel,

8'/4

2,099,176;

"

P.

From June, 1936, to and includ¬
ing June, 1943, a total of 36% has

for

elevator

16-story

apartment houses

2

14J/2

ears

American Metal Co. Has

1, 1943, was $25,351,587.45
participation certificates pub¬
licly held were $25,481,888.85.
and

estate.

investment

the lack of personal
or

walkup

l

tax

9%.

Bronx

21

to

9-

64'/4

Manhattan

apartment houses___

slight knowledge of this
field may well read the following
the

the

in

to 5'/2-story

4-

have

on

in

7

interested in real

article because of the combination

$16,267,161

63

estate investment and others who

of return

Total

6-story elevator apart¬

15%.

as

time and

Amount

Description—

of

made

is

insure adequate protection of the
trust estate in case of fire or other

been

Experience has demonstrated that six-story elevator apartment
houses

check-up

The total amount of assets as of

de¬
Since the appointment of the
scribing what may be termed "the trustees
they have caused to be
pick up.
He continued that the original Real Estate Investment
purchased and installed several
certain elements would like to get
Trust" formed under the laws of
hundred refrigerators, well over
back to what was known in 1920
the State of New York by
its one thousand
gas ranges, a con¬
or
19211 as normalcy.
He added Supreme Court.
It is adminis¬ siderable number of instantaneous
that they wahted to get rid of the
tered by three trustees appointed,
hot water heating systems and in
protection the SEC affords
to by that Court who are under its
addition
many
new
roofs were
what the Greeks called hoi polli,
control and supervision.
placed on buildings, and both ex¬
and the President said that most
The trustees of Group Series teriors and interiors were reno¬
of the people belong to hoi polli.
F-l were appointed in May, 1935, vated.
One important improve¬
'Can you give us any more in¬
to bring about an orderly liquida¬ ment has been the
changing over
formation on the specific types
tion of the assets of the New York from
manually operated elevators
of elements involved in that cam¬
Title
and
Mortgage
Co.
issue to automatic elevators in a num¬
paign?'he was asked.
known as Series F-l. The trustees ber of
buildings, which experience
"He said he could not; that he
are: Aaron Rabinowitz, Chairman
has shown resulted in savings of
was merely offering a tip for the
of Fred F. French Investing Co.
labor, material and other costs.
newspaper men to look into, and
and President of Spear Securities All of this
work, done under the
that the campaign had
become
Corp.; James L. Clare, lawyer, supervision of the trustees, has
pretty obvious in certain news¬
specializing in real estate matters notably improved and modernized
paper columns recently."
and member of the firm of Cham¬ the
properties owned as real es¬
bers, Clare and Morris; Adrian tate.

Arnhold

Toronto

Jan.

for the management to make it pay.

ing notes, that he had thought his
statement would

Montreal

accidents.

good rate of return
is dependent in a large measure on the ability, efficiency, knowledge
and foresight of its administrators and managers.
But, the type of
property is also an important factor and must be income producing

the

remark to the news¬
who had started tak¬

Mortgage

Successful operation of real estate to obtain

for.

service

&

All Net Income Payable To Holders

ment in

member

1-395

payments and insurance coverage
to prevent tax delinquencies and

Probably Largest Real Estate Investment Trust-

President made this state¬

The

Title

York

purchases and
the following groups:
ical
condition.
be relaxed fur¬ Investors Tax Kit And
ther. Business will gradually re¬
Active Markets =======
Tax Guide For 1943
turn to normal but competitive
Merrill Lynch, Pierce, Fenner &
problems, small roaster versus
large distributor, will continue to Beane, 70 Pine Street, New York
require the energies of the indi¬ City, members of the New York
Series F1 - C2 - BK
vidual roaster. "There's room for Stock Exchange and other leading
both large and small roaster. The Exchanges, have issued their 1943
Investor's Tax Kit, containing a
PRUDENCE COLLATERAL
past and human nature demon¬

imports will

New York

Commission and get back to

thing called

HAnover 2-098#

Bell Teletype NY

in

parts of the country to get
rid of the Securities and Exchange
many

awful

COl

HART SMITH &

Security Dealers Association

19 that

SEC,
the
New
York
"Herald
lowing to say:
Tribune" in its Washington ad¬
"Looking at prices from the vices of Oct. 19 said:
viewpoint of the coffee producer,
"As the President spoke of tthe
we meet these indisputable facts.
alleged undercover campaign, he
Our good

New

Broad Street, New York 4

41

his

told

Roosevelt

an

Lawyers Mortgage Corp. V.T.C.

Incorporated

President

conference

there is

upon request.

Seligman, Lubetkin & Co.

so

the coffee industry,

to

Descriptive circular will be sent

will

He praised Mr.
of service
to the Government, the last eight
closely related, that it is difficult
of them with the SEC, as Assistant
to select but one. "It is also true,"
Director
of
the
Reorganization
he said, "that the industry these
Division (1935); Director of the
days has such an enormous load
Division
(1940),
and
Commis¬
to carry that any intricate and de¬
sioner
(1941).
Mr.
McContailed
discussion might be just
naughey has served in various
adding to their woes.
For that
legal positions primarily in agri¬
reason," he indicated, "I am going cultural
agencies of the Govern¬

subjects

many

Prudence Bonds

With Stock

billions more before long.flot of money in any lan¬
Taxes

guage.

Mortgage Certificates

4% Non-cumulative Income Bonds

prediction Mr. Paton said:
"The Government debt is now around $150,000,000,000 and

be many

Series F-l

Convention at French Lick

Coffee

tional

New York Title

Corp.

of a higher plane of prices than

forecast by George Gordon Paton, Vice-President

Research Bureau, in addressing on Oct. 15 the Na¬
Springs, Ind,
In making

of the Commodity

'

1605

SI EG EL
39 Broadway, N.

&

CO.

Y. 6

Bell System Teletype NY 1-1942

Dlgby 4-2370

Members New York Slock Exchange
Members New York Curb Exchange
40 EXCHANGE PL.,N.Y.
Bell

Dlgby 4-4950

Teletype NY 1-953

1606

THE COMMERCIAL & FINANCIAL
CHRONICLE
111111 a 111:1111111 (111! 1111111111111111111
iiz

\

BOND

1BA

Heeting To Study Problem of Financing
Govt In War And
Enterprise After War

INCOME

SERIES

SERIES

LOW-PRICED

PREFERRED

BOND SERIES

STOCK

Program Announced For Three-Day Conference

SERIES

What
LOW-PRICED

COMMON

annual

INTERNATIONAL

STOCK SERIES

New

SERIES

England

FIRST MUTUAL TRUST FUND

termed

in
request

208 So. La Salle St., Chicago

which

on

GENERAL

Ar

be the

abbreviated

an

"We

Prospectus

W.

are

"Thus
that

he

contact.

investor,

E

and

<&-—

buy

that

in

the

:

for

automobile

securities

GROUPS"

even

—

re¬

Ask your

flect the prosperity he foresees.
But, unfamiliar with the complex¬
ities of the steel industry, he fails
to realize that it must
prosper

Steel, to him,

for

SHARES.

In

RAILROAD

GENERAL
'the

has

been

should

in

be

year;

in

of

securities, as well as
erally favorable longer-term

PRICED

prices

SHARES

promise."

pros¬

it

Lord,

Union

has

issued

Bond Fund

Common

the

From

Abbett

revi¬

sions of its attractive sales folders
on

LOW
the

Union

The

Sept. 30, 1943, Investment Re¬
port of the Investment Research
Department
of
Distributors

Stock

"B," Union

Fund

"A"

sub-titles

and

"Selected
come."

the

on

and

Fund

Common Stock

simple

Group, Incorporated.

"B."

folders

Bonds

With

for

of

Carefully

Selected

the

velopment,
vestment

that annual interest and amortiza¬
tion charges of

privately-owned

electric

panies

light
have

and
been

power

reduced

com¬

from

$358,000,000 to $293,000,000 in the
last ten years.

This is

decrease

a

of

18.2% and in the same
period
electric power production has
in¬
creased 147%.

Conclusion:

industry
of

"The public
utility
has weathered the storms

regulation, both

rate and

cap-

ap-

,

War

MIT's Brevits compares the re¬
of the three
prize-winning
and five "honorable mention" in¬
sults

vestment

contest

with

Boston

Fund.

suing

four

afford

investing their capital

as

follows:

Series

b-l, 2, 3 and 4

in bonds

Series

K-l, 2

in Preferred Stocks

s-l, 2, 3, 4 in common Stocks
your

local

may

be obtained from

investment dealer

or

The Keystone Corp. of
Boston
50

performance

The

contest

years

of

of

was

World

en¬

War

rigorous

a

Fund

did

better

eight investment

than

qll

programs.

The average degree of betterment
for Boston Fund was
17.6%.
*

28%

Calvin Bullock's Perspective for
October

has

an

excellent

discus¬

of

"Non-Ferrous
Metals:
Post-War
Outlook."
An
eightyear tabulation of
earnings and

price

ratios
for
American and
Canadian companies substantiates
the statement
that, "the shares are

selling at the lowest price-timesearnings for a considerable period
of time."

.

The bulletin goes

on

to

CONGRESS STREET,
BOSTON, MASS,




not

mean

the

stocks

of

ferrous metals producers

reasonably

priced.

all

non-

are

now

Selectivity

is

the keynote to investor
success in

this group.

Mutual,

Inc.,

spon-

Fred

Louis,

Hagemann,

Jr., The
Bank,
St.
Municipal Se^

National

Chairman,

John

S.

&

Loom is,

The

Illinois

Percy M. Stewart, Kuhn, Loeb
Co., New York, Chairman, In¬

dustrial Securities Committee.

Finance

Committee
for

of

the

at

issuance

the

The

meeting

is being

New York to minimize

by

held

travel

in
for

receive

financial centers.
The program to be
presented at
this, the 32nd Annual Meeting of

around

$785 in new 1st
bonds, the Prior Lien
receive $187, the Prior

Mortgage
may

about $197

and the Con¬

the

Association, is outlined

solidated 4%s approximately $220.
The
balance
of
the
Fort
Scott
claim will be settled in Income

lows

as

the

other

liens will

fare

the

Prior

Liens

will

no

bonds
about

the

in

the

ratio

of

for two. The Prior Lien

bonds, therefore,

expected to

are

get about twice

as

Address

will

be given to the

stock

per

bond

as

Consolidated

4V2S.

While the market is giving
high evaluations to new reorgan¬
ization equities
the Prior Lien
bonds have the better speculative

potentialities

proportion
bonds

to

new

received

Consolidated 4V2S
on

a

of

strictly
the

fixed

more

rest

bonds

are

of

the

attractive

investment

basis.

considered

attractively priced in relation
the

Jay

N.¬
;

followed by
dinner.1

—

to

the

reorganization
particularly as further

informal

a.m.—Meeting of the Board
of Governors.
§
p.m.—Luncheon, Grand Ball

12:30

Room.

Address by Mr. George W.
Spin¬
ney, C.1VI.G., President of the Bank
of Montreal and former Chairman
of the National War Finance Com¬

mittee of Canada.
2:15 pm.—Second

payments

seem

Waldorf-Astoria

musj; be made
through the Association: the hotel
will

not

rectly.

accept

The

quarters,

reservations

Association's

33

South

Clark

Chicago.

session

meeting.
This session will be

discussions
war

of

the

of

di¬

headr

Street,

stock

on

of

the

prior preferred
California Electric

ing offered at 103 \-2 by a banking
headed by Dillon. Read &
Co., and the preferred shares,
priced at $102.50 a share, are be.ing offered by a syndicate headed
group

by Stone & Webster and
Blodget,
Inc.,
and
Bosworth,
Chanute,
.

Loughridge & Co.
The

last

./

devoted _to

Government's

financing and to private fi¬

Co.),

Finance

made,

the

Committee, will

proceeds from

the sale

of

together with

in the post-war period.
Edward B. Hall, Assistant to the
Secretary of the Treasury (on
leave from
Harris, Hall &
address

was

a new issue of
$16,000,r
000 of first
mortgage 3&% bonds,
due
1968, and 40,000 shares of
5 Mi % convertible

the

nancing

will

offering

Oct. 19 of

the

likely next

Florida Bond Quotations

of gover¬

announcement states that
reservations for'rooms at the

all

:

.

meeting on the
subject of War Financing.
Albert
P.
Everts
(of Paine,
year, and so long as consumma¬
tion of the reorganization is de¬ Webber, Jackson & Curtis), Chair¬
man
of
the
Massachusetts War
layed.
market,

cash

into office

Power Co., as part of its
recapitali¬
zation program. The bonds
are be¬

Thursday, Nov. 4
10:15

interest

makes

Induction

,

Public

President

Certain Committee reports.
p.m.—Informal get-together

although the larger

of

be

by

Whipple.

much Preferred

Common

Certain committee
reports.
Election of officers for
1943-"
1944.
"
'

Securities Offered

-

and

the

California Electric

stock to go to the Fort

is

of

Association:

6:30

which
one

by

meeting.

considerably better than the

With

Section

meeting.

Wednesday, Nov. 3

Consolidated

Scotts, the stock treatment of the
Consolidated AVzs will rest entire¬
ly on the pledge of Prior Lien

a.m.—Third

a.m.—Committee meetings.
2:30 p.m.—First session
of the

get
a
combination
of
Income
bonds and Preferred and Common
stocks.
It is in the stock cate¬
gories that

Friday, Nov. 5
10:30

fol¬

10:30

while

Vinson, Di¬
Stabilization.

"
ing committees which have been nors-elect.
Address by incoming
conducting surveys of the post¬
President
war
financing requirements in the John Clifford Folger.
major fields of industry:
The

delegates, the heaviest member¬
ship being in the large eastern

4s

Room.
Address by Fred M.
rector of Economic

Massachusetts

the redistribution. It appears like¬
ly that the Fort Scott bonds will

review

the Third War Loan Drive in that

State.

above

week

mentioned

securities,
$4,900,000 obtained
from the Imperial Ir¬

rigation. District

in payment for
certain transmission and distribu¬
tion

facilities, franchises

properties

which

the

and other

California I

Electric Power Co. sold to the Dis¬

trict,

will be applied to the re¬
demption of all of the outstanding
first

trust

mortgage

5%

bonds,

due

1956, and, to the extent neces¬
sary, to pay in full the unpaid
balance

on

a

3% installment note

of the Power company.

V Giving effect to the new financ¬
ing, capitalization of the company

will consist of $16,000,000 of first
In
addition, other Government mortgage bonds,..:,40,000 of 5F4%
Corp., BarBuilding, Jacksonville, FlaV, representatives, as well as mem¬ preferred of an authorized issue of
bers „of the
has prepared an
industry who have 100,000 shares; 104,963 shares of
interesting circu¬

Clyde

C.

Pierce

nett

lar

containing quotations and in¬

formation
bonds.

011

Florida

municipal

Copies of this circular

be had upon

Investors

the

meeting are research reports by a
number of the Association's stand¬

(Continued from page 1593)
4s which will be in¬

approximately

of

Scheduled

Mortgage

All

*

point out, however, that this does

Series

Prospectus

Widow"

Brevits

sion

Certificates of Participation in
Trust Funds

the

Barron's
a

testing period.
compilation shows
that during this
four-year period

The

Boston

Custodian Funds

in

held in August, 1939, and the

of the

Keystone

programs

"Investing $100,000 for

a

Treasury Department.

Railroad Securities

preciation possibilities with good

| income."

H.

Boatmen's

De¬

former Chicago in¬
banker, and Albert P.

Chairman

>

Corp.'s Investment Timing. Among
other things, the article
points out

the

the Committee for Economic

Fund

bonds

UBB—
Good In¬

UCSA—"A Portfolio Con¬

sisting
Outlook

Mutual

a

share payable Nov. 20,

per

Lien 5s

are

descriptive.

Stocks Chosen For Current Value
Public I and
Future Prospects."
UCSB—
Utilities" is the title of the dis¬
l Forty-Four
Lower-Priced
Comcussion
in
the
latest
issue
of
National Securities &
Research j mon Stocks ... A widely diversified list combining attractive
"The

Investors

1943, to stock of record Oct. 29.

creased

com¬

offers
—

by

feature for

cents

gen¬

pects."

greater-than-

stock

problems
of
financing
Government during the war

Boston Fund—A dividend of 16

turbances caused by liquidation of

appreciation in the next

verage

advance

market

war

moderate

this

For

are

Buying

railroads

accentuated

months.

greatest

only

far

so

may

sound condition.

a

Coffin &.
Chairman. Public
Service Securities Committee.

Committee.

the

attorneys.

appraisal of the in¬
dustry indicates the probability of
relative price stability in any dis¬

and

RpND SHARES

retirement by the

amounts

a

be said to be in

The

Armitage,

Company of Chicago, Chicago,
Chairman,
Railroad
Securities

"Pending Litigation." Part of this
Everts, partner of the Boston in¬
litigation was settled this week by
vestment firm of Paine,
Webber,
a
consent
decree in agreement
Jackson
& Curtis,
who is also
with SEC

york

ital, and increased taxes and

T.

Boston,

curities Committee.

special feature of the pro¬
gram will be a forum devoted to

prospectus is the section entitled,

Incorporated

street- new

war:

Albert

A

Dividends

bonds,

SHARES

outstanding values.

for

ing

discount

E

•

under¬

interest-paying issues held

by

wall

63

valuation in stocks continues to
be
in
those
held
by STEEL
the

write to

DISTRIBUTORS
GROUP,

of the Bank

E Whipple.

devonshire street

boston, mass.

usual

items of which steel is the base.
extreme

of this booklet—
or

means

most

Investment Dealer

copy

too.

tanks, ships
and guns, not
automobiles, refrig¬
erators, locomotives, rails and the
many
hundreds
of
consumers'
"The

a

after the

and
Syndicate of
Following these summarized re¬
financing enterprise after the war.
Minneapolis, is out with a new
ports, John F. Fennelly, Executive
Speakers at that session will in¬
prospectus dated Oct. 3, 1943. It
Director, Committee for Economic
clude Edward B.
Hall, former IBA
is
an
interesting document not
Development,
Washington,
and
alone by reason of its good ap¬ President, who is serving as As¬ former
partner of Glore, Forgan
sistant to the Secretary of the
pearance and simple language; A
& Co., will address the
meeting.
on
leave
of
absence
numbered receipt is attached, call¬ Treasury,
6:45
from Harris, Hall &
p.m.—Get-Together Recep¬
Co., his Chi¬
ing for the dated signature of the
tion.
cago investment house; John F.
applicant who wishes to purchase
7:45 p.m.—Dinner — Grand
Ball
shares of the Fund. Another un¬ Fennelly, Executive Director of

"UNDERVALUED

post-war pros¬

though present prices already

111

'

sored

there

perity of the automobile industry
and is willing to pay
high prices

Spinney, President

——

ly their formal committee reports
on private
financing requirements

Burr,

principal

Stabilization; George

——

who is to be elected President at
the close of the
meeting, and Mr.

I

SMITH & CO., Inc.

ESiiiiiiiiiiiiiiiisiiiiiiiiiiiifiiiiiiiiiiiiuH

thousands like him, has

many

confidence

E
E
■mm

a

the

among

Montreal; J. C. Folger of FolE ger, Nolan & Co., Washington,

distributors:

! A. W.

realizing

himself expects to

automobile

new
are

the

least

year's

America,

of

individuals so that prices show substantial deviation
from values.
Undervaluation is most marked in those industries with which
the

in

announcement

speakers scheduled for the meet¬
ing are Fred M. Vinson, Director

Appraisal of Current Market Psychology

comes

that

The

of Economic

are

public

states

request

on

war

conven¬

meeting of the

TRUST

already experiencing a 'peace' market in the sense that
slowly conforming to the prevailing opinions of investors
as to relative values in a
post-war economy.
As always, many such
opinions are distorted by the natural prejudices and sentiments of
prices

this
of

year>*>—-—

session

problems arising out of the

Association.

An

second

has replaced the former
tion type annual

INVESTORS

Investment Trasfs

will, mark

Whipple of Bacon, Whipple & Co.,
Chicago, President, points out

that this will

Broadway, New Yprk 5

developments"

New

18, Jay N.

Prospectus

NATIONAL SECURITIES & RESEARCH CORPORATION

"newsy
in

York at the Waldorf-Astoria Hotel on
Nov. 3, 4 and 5, and will take the form of
a conference on war and
post-war financing.
In announcing the program on Oct.

Prospectuses upon request

210 W. 7 St., Los Angeles >10 Post Office Square, Boston

is

meeting of the Investment Bankers' Association

which is to be held

Fund

120

Thursday, October 21, 1943

may

request from Clyde

C. Pierce Corporation.

taken

an

financing
to

attend

discussion.
The

active

part in

the

war

program, are expected
and participate in the
.■

;•

following Chairmen of IBA

Committees will summarize brief-

$3 cumulative dividend preferred,
of $50 par value* of an authorized
issue of 150,000 shares, and 714,821
shares of

value,

of

common

an

stock, of $1 par
authorized issue of

1,200,000 shares.

p.

'

■'

v.---

THE COMMERCIAL &

Number 4222

158

Volume
;

v,'.-V;

.

* i

'

FINANCIAL CHRONICLE

1607

V-.

Royal Bank of Scotland

The Securities Salesman's Corner

Insurance & Bank Stocks
1

Incorporated by Royal Charter 1727

Bought—Sold

How One Salesman Increased His Sales Volume
ANALYZED

HEAD

OFFICE—Edinburgh

Branches

throughout

One day last week we had the pleasure of taking lunch with an
old friend whom we had not seen for several years. This is always

Scotland

3 Bishopsgale,
8 West

49

he tells you

Burlington Gardens, W. /
64 New Bond Street, Wi 1

known

Associated Banks:

Bank, Ltd.

Glyn Mills & Co.

Zealand

the

snd

£8,780,000
6,150,000

870

ALFRED DAVIDSON, K.B.E.,
General Manager

George Street, SYDNEY
oldest

With over
branches in all States of Australia, In
Zealand, Fiji, Papua and New Guinea,
London,
efficient

and

the

offers

It

most

service

banking

compleU
investors,

to

interested

travellers

and

traders
!

30th
£150,939,354

largest bank In Australasia.

New

then

In

countries.

Threadneedle

29

C.

E.

Street,

Berkeley Square, W. 1

47

in traveling by bus, street car, or

municipals and furthermore his firm did not sell them,
after the larger accounts on the principle that the income

he went

against capital gains under the present tax laws made it

tax liability

profitable for the LARGER INVESTOR TO PURCHASE SE¬
UNUSUAL

HAD

THAT

CURITIES

APPRECIATION

good pre-approach letters on this subject;
he became thoroughly familiar with present income tax laws, and
he sold several non-income paying speculative securities at the very
start of his campaign and they turned out to be very profitable.
From this starting point he obtained entre to friends of certain of his
clients that were very much impressed with the way their SPECU¬
He

devised

Cairo

Commercial Register No.

.FULLY PAID CAPITAL

1

Cairo

.

LATIVE HOLDINGS WERE APPRECIATING IN VALUE AND THE

FACT

THAT

A

GOODLY

PORTION

OF

THESE PROFITS.

there was much more to our friend's little story than,
"he began to get lazy." There was a sound idea behind
his campaign and if the leg work was less, the brain work increased.
Some times it takes a situation like the one with which the average
Of course,

he put it,

The Future Of

Branches in all

and

EGYPT

the

first nine months of this year sav¬

ings bank deposits rose $329,000,-

the

in

principal Towns

.

SUDAN

year

NATIONAL BANK
of INDIA, LIMITED
Kenya

to

the

Government

In

Uganda

Colony and

Bishopsgate,
London, E. C.

Office:

Head

26,

!n

Subscribed Capital
Paid-Up
1

Reserve

Capital

£4,000,000

deposits this

conducts every
description
banking and exchange business

of

quately
we

shall

tion

1, said Mr. Bell. In that decade,
savings bank deposits, inclusive of

dividends, increased only $2^7,000,000,
indicating
that these
banks not only failed to attract
new
money but were unable! to

serving
have

then
give considera¬

the

to

public,

made

on

their books

$866,000,000

$1,123,000,000 of the
dividends they paid, he said. Njow
of

out

the

appeal of the savings banks
public seemed to be re¬
gaining its old force, he declaiicd.
the

to

modifying

those

restric¬

Mr. Bell said that savings banks
excessive outlays on bank¬

ing houses in the 1920s. There

was

nothing in the record, he said, to
show that more modest quarters
would not be just as effective in
attracting deposits.

Tracing the changes in the asset
composition of the savings banks
for the last 20 years, Mr.
that
these
banks
now

Bell said
had

for

Executorships

and

2%

bank.

"There

Attractive Situations
Gisholt

Co.,

Machine

attractive

ng

to

lerzog

Strom-

Jew

situations, accord-

memoranda
&

Co.,

York City.

nteresting

prepared by
Broadway,

170

btairied upon request
02

&

may

from Her-

Co.




can

make.

two

which

It

can

dollar^ in

approaches
a

to

invite

the

earner

the

area

a

wage-earner

works.

But

be residential

whether

area

that is also

"Banks

the

or

growing.

cannot

Preferred

stock

sav¬

neighborhood
lives; it
can invite the savings dollar in a
neighborhood where the wageings

where

Peoples Light & Power
Situation Interesting

savings bank

business, if
the savings-bank is to grow, it
be must draw its deposits from an

Copies of these

memoranda

are

this problem

>erg-Carlson, and Haloid Co. ofer

the

of

case

National

First

Bank.^

Of particular interest is the fact
that

dividends

annual

than covered by the

earnings

for

are

more

INDICATED

—

in

the

First

nine months'
the 16 banks

of

13

list, the exceptions

United States Trust.

EARNINGS

SHARE

PER

-1943-

Six

Third

Nine

Six

Third

Nine

Quarter

Months

Months

Quarter

Months

$0.63

SO.35

$0.98

$0.66

$0.36

$1.02

8.58

5.01

13.59

12.05

6.23

18.28

1.26

0.70

1.96

'•'3.64

0.76

4.40

2.26

1.25

3.51

2.55

1.50

4.05

0.76

0.45

1.21

1.35

10.93

2.28

1.15

0.62

1.77

1.31

0.74

2.05

4.80

12.86

Bank of Manhattan
Bank

of

Trust

Central
Chase

York.

New

Bankers

Hanover

National

__

_

—7———

Chemical

Commercial

Nat.

Corn

Irving

6.11

7—r:

4.00

8.00

0.78

2.31

1.63

0.94

2.57

2.40

73.66

49.83

21.85

71.68

80.00

3.00

$9.00

9.23

5.36

14.59

12.00

0.32

0.17

0.49

0.38

0.20

0.58

0.60

1.86

1.00

2.86

2.17

1.12

3.29

2.00

0.85

0.47

1.32

§2.20

0.60

2.80

1.00

2.49

1.36

1!3.85

"2.79

1.60

4.39

3.50

..—

—

1.41

0.73

2.14.

1.51

0.85

2.36

1.50

28.51

16.59

45.10

32.52

17.55

50.07

70.00

National

$2.80 from

-Includes transfer of

tin

profits,

security

reserves

1942

reflects $0.80 write-down of

and

statements

indicated

only

^Includes

dividends.

accommodate

36.8

of

the

possibilities

Aug.

10.

Aug.

20

to

36.7

Request

Members

Sept. 30

36.9

York

New

Stock

Exchange

37.0

9..

Oct.

Oct.

120

Telephone: BArclay 7-8500

36.6

„

Bell
(L.

decline

this

BROADWAY', NEW YORK 5, N. Y.

'■15777,7 36.7

Teletype—NY 1-124S-49
Manager'Trading Department;

A. Gibbs,

ex¬

fears that the Treasury's
proposals for an increase in the

presses

certain that such additional taxa¬

corporate surtax rate from 16%
to 26% will seriously affect the
banks'
such

increase, if approved by

enacted

and

Congress

banks,
at

come

but

since

a

period

rising

of

book values which have been

the

achieved

earnings assets at the highest
in history, it seems pretty

level

BOOK

shows the increases in

ing table

income, and since they will start
the year 1944 with their volume
of

without

absorbed

be

from

would

it

could

Meanwhile, the banks are build¬
ing up reserves and capital funds
earnings which are substan¬
tially in excess of current divi¬
dend requirements.
The follow¬

law,

time when the banks

a

enjoying

are

into

tax burden of

would increase the
the

tion

materially affecting, if at all, their
present
level
of net
earnings.

Unquestionably,

earnings.

an

since

the

of

first

the
;;

year.

VALUE

PER

SHARE

Asked Price
9-30-43

10-15-43

$24.70

$20-7

348.55

356.33

376

46.07

49.42

4714

95.87

96.92

987

35.85

37

12-31-42

m::
Bank

of

Manhattan

Bank

of

New

Y'ork.

Bankers Trust

—

-

..

..

Central Hanover

National

Chase

7.

—.

Chemical

40.23

National 77

Commercial
Corn

——

235.42

46 %

40.93

242.29

217

487

48.18

National

49.03

1,220.44

1,232.13

1,525

310.52

319.53

308

20.89

21.12

14

38.80

41.11

4* OQ

32.62

35.01

337

907

Exchange

First

1

33.19

-

...

—

...

—

Trust

-

7--;-77—

Trust

-

.

a

Manufacturers

■^National
New

York

Public
U.

S.

City

(Com.)

77——

——

_

-

-

82.99

yield

84.22

46.17

47.74

1,545.25

1,509.85

Trust——

National
Trust——

_7-77

....

—

—

Co., Ill Broadway, New York
^'Includes City Bank Farmers Trust.
City, members of the New York
Stock Exchange and other leading
It is of interest to note that
national
Exchanges.
Copies
of 9 of the above 16 banks are cur¬
this memorandum discussing the rently priced below book value,
that
the
average
dividend
situation may be had from Ira and
Haupt & Co. upon request.

on

Laird, Bissell & Meeds

36,9

—

-

Available

-

memorandum issued by Ira Haupt
&

Stocks
Bulletin

Sept. 20—

37.1

—_

31

Sept. 10

37.2
36.7
7 37.2
,

July 31

Irving

Peoples

according

Aug.

10-.—.— 36.9

July

600,000

York

New

—;U

June 30

W:

building,

[Casualty Insurance

City Banks
shows the following record since
mid-year:

Guaranty

Light & Power Co. offers attrac¬
tive

of

July 20

;

1.80

(Com.)_

Trust—.

Index

•

1.40

7

18.58

—~7„7'

York Trust—.

tlncludes

8.06

1.40

City 7.77

ttNational

UrS.

9.00

14.00
:

1.53
—-

Trust

Trust

Public

2.89

$0.90

45.08

,

Manufacturers

New

:

Annual

Dividend*,

6.00

Exchange
National

Guaranty

being

National, Irving Trust and

Months

Presumably

Savings banks in the post-war every $100 of assets $6 in cash,
period could not expect to com¬ against $5 in 1930 and $4 in 1920,
also undertaken
pete for deposits upon the bisis and $37 of Government securities,
of higher dividend rates, said Mr.
against $16 in 1920 and $4.50 in
Bell.
But an even more impor¬
1930.
Mortgage assets comprise
}. & M. Railroad Has
tant influence upon deposit vol¬ 46% of total
assets, he said, against
ume than dividend rates, the
Su¬ 62% in 1930 and 47% in 1920.
nteresting Situation
perintendent said, was location.
On the operating side, expenses
B. W. Pizzini & Co., 55 Broad"If a savings bank is to attrjact
had gone up nearly 50% in the
vay, New York City, have predeposits," he. said, "it must offer last
eight years, but, with divi¬
>ared
an
interesting
ten-page its services where
they are most
dends to depositors reduced, net
inalysis of the Boston & Maine needed." He added
earnings alter dividends had actu¬
tailroad discussing this situation,
"If the location is right, a sav¬
ally increased, Mr. Bell said.
n
detail.
Copies of the analysis
ings bank paying 1 %;.%■', will jotnay be had from the firm upon
tract deposits just as surely afc a*
equest.
Trusteeships

earnings, also, are
higher than for the same nine months' period last year, except in

tions."

to

£2,200,000

Bank

The

contrasted sharply with that
years ended last Jan.

the

_7—£2,000,000

Fund—

growing neighborhoods except by
establishing offices in them. If the
restrictions in the banking law
against more than one branch

for the ten

retain

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

Branches?

compar¬

indicated

and since Sept. 30

against
a
decline of $155,000,000 in the
corresponding period of last year. prevent savings banks from ade¬
000, exclusive of dividends,

The trend in savings

Bankers

months'

practically still for several weeks,
have even de¬
clined.
The
American
Banker

Savings

(Continued from page 1591)

Street, E, C

King William

7

Nine

1942.

in

quarter

York City bank stocks have stood

£3,000,000

LONDON AGENCY
snd

8

indicated

earnings for the third quarter of 1943 higher than for the

First

RETAIN

COULD

THEY

£3,000,000

7,

,

,

City banks revealed a continuation of the upward trend in earnings.

him, "Here was one time when the OPA and gas rationing was the $1.21 of recoveries. 1!On 500,000 shares. "'On 500,000 shares first quarter;
shares, second and third quarters,
ttlncludes City Bank Farmers Trust,
ill-wind that blew him a lot of good."
One good idea can be worth a fortune to the salesman who has
Despite
this
not
unexpected^1
the creative imagination to find it and the ability to put it to work. splendid showing, it has not been
Under today's conditions it is almost imperative that you do both— reflected in the bank stock mar¬
so find your plan and stick to it until you get results.
ket, either before or since the
Outlook for
statement
dates.
In fact,
New

of EGYPT

FUND

surprise that the third quarter statements of New York

no

several

is faced today to bring out the inner
resourcefulness that is latent in most of us. In this case, as our frend

NATIONAL BANK

RESERVE

By E. A. VAN DEUSEN
It is

-1942-

put it, he proved to himself that the fellow who said "necessity is the
mother of invention" was surely right* Or in other words, as we told

Office

Seattle
280

This Week—Bank Stocks

POSSIBIL¬

securities dealer or salesman

arrangements with Banks
throughout the U. S. A.

Agency

Head

A.

L.

-

Bank and Insurance Stocks

ITIES RATHER THAN ANY OTHER CLASS OF INVESTMENTS.

as

OFFICES:

LONDON

he had to waste

time

He

•

8,780,000

Bank of New South Wales Is the

-snd

279

to tell us that for years he had been what is

on

sales

in

extra

more

The

San Francisco

A.

he didn't know

Liability of Prop.

Head Office:

WIRES

•

L.

able

'

£23,710,000

SIR

Chicago

-

TELETYPE

figured out that the larger investor would only be interested
in situations that were tax free from an income standpoint, or in
those that HAD UNUSUAL APPRECIATION POSSIBILITIES. Since

Capital

Aggregate
Assets
Sept., 1941 -

PRIVATE

New York

Each of the 16 banks shown in the accompanying table has

Fund

'Reserve

CALIFORNIA

7th St., Los Angeles

wales

(ESTABLISHED

Reserve

210 West

1817)

new south
Paid-Up

OF

/

train, that he would have to make fewer but more productive calls.
That is exactly what he did and this is how he did it—

banFof
'

(P. C. T.)

m.

Orders solicited.

BUTLER-HUFF & CO.

usually
organizations. as the sort of a fellow they call a
"plugger " He used to lay out so many calls a day and rain or shine
he'd make them. For years, he said he did this until.it became his
habitual routine. The system paid him well enough—as it usually
will—if one diligently follows it.
Then one day last fall, he said, he figured out that with the
shortage of transportation facilities, lack of gasoline for his car, and
He went

£108,171,956

Australia and New

to 5 p.

m.

and take it easy."

TOTAL ASSETS

Deacon's

a.

Inquiries invited.

situation during

Charing Cross, S. W. I

Williams

Trading daily 7

that he is selling more securities this year than any time

during his past ten years in the investment business.
Naturally we were curious to learn the reason for this fortunate
a year, that from all outward indications, has not
been generally productive of increased sales volume throughout the
country. Contrary to what might ordinarily contribute to a salesman's
increased volume, our friend attributed his excellent business to the
fact that he had for the first time in his life "begun to slow down

E. C. 2

Smithfield, E. C. J

COMPARED

-

Special Bulletin and Booklet Service to Dealers & Brokers

pleasant occasion—to see an. old friend—but it is even more so when

a

LONDON OFFICES:

Quoted

—

REVIEWED

-

of the

16 is 4.1%, ranging

_

between
ers

a

Trust

high
Trust.

of

367

1,240

low of 3.0%
and National

5.6%

for

for Bank¬

City to a**

United

States

1608

THE COMMERCIAL & FINANCIAL
CHRONICLE

Thursday, October 21, 1943

Debenture

3s

EMPLOYERS REINSURANCE CORP.

r

1954

Class

Kansas

Common

A

ACTIVE

Portland

&

6s

Stern BroThefs

1950

1009

Consolidated Dearborn

Baltimore

KANSAS

Common

Avenue

CITY

Teletype KC 273-4
'

"

,

602 INSURANCE

.t"1

i

*

Teletype—SL 486

L.

D.

240

look for the

Early
on

Missouri Brevities

Landreth Bldg.,
St. Louis 2,

St. Louis

Mo.

SL 456

L.

D.

123

will

and

Jefferson Barracks,

Mo., in announcing default of the Oct. 1 interest, reviewed the
cir¬
cumstances responsible for this
development. Contract for construc¬
We have

Central Coal & Coke
W. S.

Gleaner Harvester Corp.

the U. S. Government adopted the

1941,

;

Ore.-Amer. Lumber Corp.

developments handicapped
obtaining mate¬

the contractor in

rials and labor.

Baltimore

1004

Avenue

souri
Bell

CITY

MO.

6,

Teletype KC 375

shore

water

to

and

County,

of

reach

this

pier

was

announcement

Missouri,

Toll

1965

the

ST. LOUIS

SECURITIES

souri

1941,

and

Illinois

partments
Direct

New

York

Private

and

Wire

to

Providence

Offices

G. H. Walker & Co.
Members
New

York

Other

Stock

Exchange

cur¬

Locust

Teletype SL 84

of

approach

obtained to construct

Commerce

The Missouri portion

nearly completed but re¬
high water in the lowlands

the Illinois side

on

winter

have

or

delayed

four months

conditions

will

spring.

prob¬
of this
next

(It is also understood that

the

War
Production Board has
been reluctant to grant the neces¬

ings and if these

509 OUVE ST.
System

at two railroad

overpasses

SAINT LOUIS
Bell

priorities for construction of

sary

struction of the

Teletype—SL

80

be

bonds

Officials Announced
NEW

Club

ing

of New

officers

elected

and

Orleans the follow¬

and
have

directors
taken

were

office to

for the fiscal year 1943-44:
President:
H.
Wilson
Arnold,

serve

Weil

time
to

set

were

issuance

debt

which the bonds

were

issued pro¬

Arnold; Vice-President: vides that any funds remaining in
Price Crane, Glas & Crane; Secre- /the construction account after the
I tary-Treasurer: Claude J. Derbes, bridge is completed and paid for
shall be transferred to the inter¬
| Couturier & Derbes.

I

Directors: J. H. de la Vergne,
| White, Hattier & Sanford; J. Wil¬
bur Jesse, Waters & Alcus; Albert
J. Mayer, Weil & Co.; Clifford C.
Morphy.
There

are

approximately 65

tive members

of

The

Bond

ac¬

Club

of New Orleans at this time.

est and

sinking fund account. The

Trustees

opinion

have

expressed
their
such funds will be

that

sufficient to pay the Oct. 1,

interest; however, actual transfer
of the funds

tion

of the

of several

must

Co., 50 Broadway, New York City,
Exchange,

will

admit

Rachlin to limited
the

firm

as

of

Stock

Benjamin

partnership in

Oct. 30.




in

comple¬

condemnation suits

The

question

whether these funds
to pay

Eisele & King, Libaire, Stout &
^members of the New York

await

bridge and settlement

rights-of-way.

To Be Partner

1943,

interest

retirement

can

be

on

of

used

or

must be utilized

of

bonds

will

also

have to be determined before pay¬
ment of the October coupon can
be

authorized.

However, counsel

for the Trustees has

these

funds

can

be

advised that
used

for

the

award

its

that
stock

common

of

pany

Colorado

be

Under

recapitalization plan
designed to meet requirements
&

Light proposes to exchange
its holdings of preferred stocks
of the subsidiary for common
stock,

and

then

offer

lic

could

during

funded

1942

and

Total reductions since

in

1937

re¬

have

of

To Collaborate On

Post-War Air Rights

The State Department and
the
Civil Aeronautics Board
at Wash¬
ington announced in a joint state¬

The statement
explained that
companies wishing to develop new
international air services should

apply to the CAB for certificates
of public convenience and
neces¬

sity and copies of these applica¬
tions will be forwarded
to the
State Department for
information
It was emphasized
that questions of
landing rights in

foreign countries

all

junior

Colorado

common,

come

bidding

remains

for

or

the

negotia¬

SEC

to

de¬

stated:

Atlanta

Gas

Light

policy and international relations/

including the broad economic effects of aviation in
foreign coun¬
tries..
'
' "
"The Civil Aeronautics Board is
with the responsibility,

within the framework and
guided
by the policies of applicable
legis¬

lation, of developing policy with
respect

Company's
$7,500,000
of
mortgage 3 per cent bonds,
expected brought out a host

War Loan

Drive.

And

add

spice, it developed that

department

horse

including

the

a

214,810

31,

the

in

1943,

Federal income and
taxes held

ended

year

jump; of

a

net

July

$950,803

excess

in

profits

income to $880,019

$4.46 per share of common,

pared with $870,514

$4.41

or

share in the preceding year.
common

stock

is

selling

14V2-15 compared with
8V2.

totaled

with
1942.

a

com¬

a

per

The

around

total

per

share

its

of

of 75c distributed

in

dark

bonds, out¬
groups

by

and

air transporta¬

"Determination of
are

matters

route and the

for

decision

by

board, though the Department

of State may
bring to the attention
of the board
considerations and
facts
relating to

respect

bid

accordingly.

that

the

no

bonds

It

is

companies,

were

$5,800,000
placed with

leaving only

a

small

are

Light

on

or

the
may

Depart¬
have an

consideration of

Paul & Co. Elects
PHILADELPHIA, PA.—At

a re¬

organization meeting of the board
of

directors

of

1420 Walnut

ficers

Paul & Co., Inc..
St., the following of¬

elected:

were

William

L.

Canady, President;
Clyde L. Paul, Vice-President and
Treasurer; Edward S. Lewis, VicePresident and

Secretary; Ralph E.
Pendergast, Vice-President; John
Brennan, M. Lester Snyder, and

John

V.

N.

Secretaries

Barbarin,
and

Assistant
Assistant Treas¬

urers; Howard J.
Lynch, Assistant
Treasurer.

Attractive Possibilities
Howell

Electric Motors offer?
attractive possibilities as an
out¬

standing company with
war

due

the

to

be

opened

Delaware

Company's

on

Power

offering

conversion

ing to

Delaware Power & Light Co.

Monday

on

less than

lar Way.

Bids

which

under¬

balance to be marketed the regu¬

&

of

ment is consulted

S.

New England and other insurance

1943 low

compared

the

a

of

But it develops now that the
winning group, according to the
story, had orders for by far the
largest part of the issue and based

Dividends this year have
50c

captured

element

an

fair margin.

stood

equal after preferred dividends to

to

bidding several other

Dry Goods Co. and Jac-

card's, increased $3,299,730 to $24,-

organization

tion.
like

Light

Although net sales of ScruggsVandervoort-Barney,
St
Louis

store,

the

Gas

little in the way of such business

Denver

to

functioning of civil

foreign relations."

Co.

Recent sale of the Atlanta

through the period of the Third

Earnings

•

"The Department of State has a
primary interest in the subject
from
the standpoint of
foreign

interest based

of bids from bankers who had had

Scruggs-Vandervoort-Barney

mat¬

sultation" between the two
agen¬
cies. In the joint statement it
was

first

Current market 89-91.

other

affecting foreign policy will
be dealt with
"through close con¬

its

issue

cide.

as

1951.

and

ters

in

tion

due

1,

Dcpt And CAB

competitive

Sinking Fund 3%Oct.

withdrawn.

was

foreign policy
which may be relevant to the
sub¬
ject-matter of any determination

Convertible

bonds,

cent
sup¬

through next week
also, but whether it is subject to

6%

of

State

the

Service

amounted

to
33.7%.
Present
outstanding debt consists solely
of
$2,240,000
First
Mortgage

the

program involving public
offering of 875,000 shares of Pub¬

Steel

its

of

This

com¬

reduce

$999,500

the

per

charged

a

of the Act, Cities Service Power

Scullin

enable

to

from

3x/s

syndicate

the

bonds, brought out in early
September, at a price of 102.46
■and interest, eased
only a fraction '5
from the
offering level, suggest¬
ing a fairly well cleaned up posi¬

exempt

from Rule U-50.

have

Louis

organization

construction

&

to

1943.

and for twelve months thereafter.
The interest and

sinking fund ac¬
count still has $24,108.18,
leaving
a balance of
$24,645.82 needed to
equal the Oct. 1, 1943, interest
figure.
The court
order
under

St.

Company

interest during the

period of

of

bined

the

Utility

publicly.

City

aside

of

prepar¬

Light Company,
of

holdings

condemnation

Company

when

re¬

Texas

and comment.

Offer

are

holdings in Public Service Com¬

obli¬

Capacity
operations,
record
earnings, and funds from the

completed

of

pay

estimated

ORLEANS, LA.—At the
meeting
of
The
Bond

annual

the

for the

&

sale

Debt

level would be carried
The bridge itself is said to

Sufficient funds

the

Scullin Steel Rapidly Reduces

con¬

except
painting, rail installa¬
tions, etc., and is expected to be
ready for traffic in two or three

at

121.40

Stock

plea by the Cities Service

a

Power

$10,000, consisting of 4X/4S
of 1953, were purchased
by the
Harris Trust & Savings Bank of
Chicago at a price of 128.54.

weeks, but little traffic can be ex¬
pected pending completion of the
approaches.

New Orleans Bond Club

on

other

for certain

Members St. Louis Stock Exchange

and

highway at grade

practically

Co., of

paid a price of 119.63
bonds, due 1951, and prices

120.96

$6,132,000

Decision is due by the Securi¬
ties and Exchange Commission

gations maturing Aug. 1, 1952, and
Sept. 15, 1952, respectively. The

crossing
out.)

Trust

preferred

Holding Company Act,

bank

for the
of

&

and

about

to conform with the Public

cross¬

refused

are

The

Bank

West

rights for aviation companies in
foreign countries after the war.

to

it will be.

one

St.
Louis, consisting of $50,000
3V2S of 1951 and $298,000 3V2S, due
Aug. 1, 1952 and Sept. 15, 1952.

was

now

seen

ment
on
October 15 that they
would collaborate in
seeking new

at¬

ing to handle another stock deal,
of
the
largest
in
recent
months, growing out of integra¬
tion of public
utility properties

in

mission

by

been

strenuously

very

Meanwhile bankers

bonds,
sold

not

Thus

exclusive of accrued interest and

presumably an insurance com¬
pany.
Of the total, $348,000 were
purchased
by
the
Mercantile

ably prevent completion
approach
highway
until

Co.

4%%
were

have

Another Big

war-time ruling of the U. S. Pub¬
lic Roads Administration.
About
nine months elapsed before per¬

highways

construction three

&

and

1951-53,

be

week-end.

dividends.

the market late last week
by an
investment account in St. Louis,

and

x5r/x

3V2

maturing

will

probably

ing
debentures
stock, requiring

$358,000 of State of

a

the

cent

Tel. Central 0838

of

Missouri

De¬

letting

is

ST. LOUIS 1, MISSOURI

Highway

total

011

Proceeds will be applied by the

Missouri's Bring High Prices
A

Mis¬

were

these roads.

Street

the

price

company, along with other funds,
to the redemption of all outstand¬

placed originally with institutions.

prevented from
contracts for construction

and

Principal Exchanges

503

when

dealers

tempting

in trading circles that some
liqui¬
dation may appear as substantial
blocks are believed to have been

A further complication arose in

December,

market

of

offering

the

over

guess what

layed for another eight months.

;

preferred

far

trad¬

are

feel
..

proposed

filed

of

Bridge

were

their

the

1, 1943, St. Louis

ing around 73 to 77 and

the

de¬

the

by

An amendment to the regis¬
tration statement setting forth/

available

rently quoted 69 to 72 nominal.
The opinion has been
expressed

away.

erection

to

Revenue 3%s of

falsework for the truss

necessary
span

all

in

carried

was

become

the default Oct.

Completion of this pier was de¬
layed a year due to continued

•

high
Fast and accurate Markets

Prior

further

was

delayed by floods and in October,
1941. a coffer-dam for the pier
adjoining the bank on the Mis¬

E. W. PRICE & CO.
KANSAS

Work

funds

was

and

the

conditions.

they will take the necessary steps
to decide the question
and, if pos¬
sible, pay the interest.

on Dec. 7,
World War II.

entered

we

These

the

as

j Defense Program and

strong undertone

tion.

fering,

payment of interest and the Trus¬
tees have indicated that as soon

per

utility offer¬

a

accordingly not subject
U-50 Rule, providing for
competitive bidding, bankers will
be guided as to the time of of¬

Soon

4,4

The

been completed by Aug. 28, 1942.
after the contract was let

Corp.

Dickey Clay Mfg. Co.

Employers Reinsur. Corp.

ing,

to

the

marketwise

porting bid

150,-

Exchange Commission.

Since this is not

to

marketed

Utilities

$4 cumulative

new

cue '►

bonds

tion of the bridge was let Oct. 28,
1940, and stipulated that it was to
be completed in 600
days from December 5, 1940. Under normal
conditions the project should have^

continuing interest in

a

the market

on

exceed

.

cently

probably
banking group

preferred stock of McKesson &<
Robbins Inc., recently placed in
registration with the Securities

Missouri, Trustees of the
near

place

bid¬

stock,

the dividend rate

not

this week in the action of the

week,
a

000 shares of

County Bridge Revenue Bonds Default

The County Court of St. Louis
County,
St. Louis County Bridge under construction

Garfield 0225

Teletype

next

Tuesday,

preferred

name

must

prevailing

issue market.

new

the

West Texas Utilities 3 l/gS.
A

thing happens to change the out¬

SCIIERCK, RlCHTEB
COMPANY

will

cent.

few stocks shortly unless some¬

a

ST. LOUIS 2, MO.

BLDG., OMAHA, NEB.

of

which

situation recently, will have
opportunity to take a look at

an

Landreth Bldg.

803

BOUGHT —SOLD
•

the

'

Long Distance 93

it

ders

ward equities,
according to under¬
writing bankers who have studied

Mason, Tenenbaum, Inc.

6, MO.

a

appeared that competition
here would be fairly keen. In the

Investors, who have been lean¬
ing somewhat more heavily to¬

Co.

carrying

coupon,

,

cles

REPORT

Bought—Sold—Quoted

Electric Power

bonds

and 40,000
shares of its preferred stock, cu¬
mulative of $100 par.
From gossip around dealer cir-i

Invited

Common

trust

cent

per

case

MARKETS

Inquiries

3

REPORTER'S

Company
4Y2s & 5s

City Public Service

Preferred

Associated Electric

CENTRAL SURETY & INSURANCE CORP.

St. Louis Public Service

collateral

OUR

Consolidated Dearborn

of

$15,000,000 of first mortgage and

an

problem,

no

post¬

accord¬

interesting analysis

of

the situation
prepared by Allman
Moreland & Co., Penobscot

Build¬

ing, Detroit, Mich., members of
the Detroit Stock
Exchange. Cop¬
ies
of this circular
may be had
from the firm
upon request; •

Volume

With

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4222

158

Expanding Govt Debt And Higher Taxes,
Higher Price Levels In Posl-War Era

Cadillac

Looks For

Charles A. Parceils

easier

come

easier

and

to

"Consumer losses will be

difficult

blend.

market

to

A

least

the trend

of

inferior

an

"And,

the

for

duration,

buying is
expensive coffee, in
solid packages.
'
toward

is

but

trend and

a

that

mean

does

American

the

ing of the word 'thrift,'
"Inflationary forces have been
at work on prices, as we all know,

months and will

soipe

tinue for

con¬

but
there will be no runaway infla¬
tion either during or after the
war.
Why? Because a plentiful
supply of goods and labor event¬
ually must bring deflation and
barring the period of rehabilita¬
tion right after the war, every¬
thing points to a plentiful supply
of almost

years to come

some

anything

you can name,

including labor.
"Raw

materials, labor, machin¬
ery and distribution — these are
the big four of industry. Trouble
with any one spells trouble for
business.

In

the

war

far

so

we

have witnessed troubles along all
four

-

often

fronts

Garner

times

different

at

enough

supplies,

and labor is scarce; get the labor,
and

machinery
is
inadequate;
synchronize
materials-labor-and
,

processing equipment, and trans¬
portation becomes the bottleneck.
And

it has gone.
"Raw materials promise
so

to be
plentiful, while transporta¬
tion promises to get worse later
this year and early next.
After
the turn of the year, if not before,
all signs point to a slightly better
supply of labor because American
production of war supplies has
about reached the scaling down
point and replacements for the
more

armed forces will soon come only

from

those

reaching 18 years of
labor plus more
will
eventually
sufficient machinery and a

And

ago.

more
materials

raw

mean

gradual betterment of the coun¬
try's problems.
informed

"Best

see

sources

next

war

predict

'

a

Men who should know

Christmas.

fear most the period immediately
after the Axis defeat. See the pos¬

sibility

of

of

down

widespread

a

wartime

break¬

controls

when

they are needed most.

Reason—a
spending spree with the billions
of savings in the hands of Amer¬

ican

consumers.

"Peace

will

bring a scramble
supplies of cof¬
fee, and should produce strong
tone in both consuming and pro¬
ducing countries. Producers know
that European markets may take
years to reach pre-war status, but
markets always begin discounting
coming events long ahead. And,
so fast moving are this era's de¬
velopments that demand in Eur¬
ope and other parts of the world
may surprise even the optimists.
"Allocation of supplies by pro¬
for

available

all

ducers to
is

world

various markets

simple

exist

when

supplies

about

in

controls

when

but

stocks

are

balance.

of the

sufficient

what

happens

inadequate,

or

Breakdown

of

laxity in enforcement,
follows any attempt to divide any
or

639 Penobscot Building

Randolph 5625

mar¬

syndicate headed by Halsey,
& Co., Inc., is currently
making public offering of $15,000,000 Illinois Central Railroad
2 V2% equipment trust certificates

age of coffee as a. distinct possi¬
bility in the future. Only time,

however, will tell whether
it
1

•

can

At

be averted."
the

Paton

end

of his

summed

up

or

address

his

views

Mr.
as

follows;
,

.

on

go

higher.

"But- a runaway inflation is un¬

likely.,

;

■

"War.restrictions .and troubles"
will lessen.




Rogers &

Tracy, Chicago and
Summers, New York

1951

"Had it not been for the

Troster,

Currie

&

Request

on

inch and the proceeds of

the Illi¬
its debt to

the sale will be used by

Railroad

nois

to

pay

Reconstruction

the

Mercier, McDowell

Cor¬

Finance

& Dolphyn

poration.
Halsey, Stuart & Co., Inc. and
Associates
purchased the issue
railroad

the

from

bid
will

Buhl Bldg.

be

S

Cadillac 5752

DETROIT

803,431 and depreciated value on
Sept. 1, last, at $30,170,347.
In addition to Halsey, Stuart &
Co., other members of the offer¬

ing include the following: E. H.
Wertheim &
Co.; Blair & Co., Inc.; Otis & Co.,
Inc.; R. W. Pressprich & Co.; A. C.
Allyn & Co., Inc.; The Illinois
Company of Chicago; L. F. Roth¬
schild & Co.; Graham, Parsons &
Co.; Stifel, Nicolaus & Co., Inc.
and Equitable Securities Corpo¬
Rollins & Sons., Inc.;

ration.

$400,000,000

against

as

a

$286,-

portunities
of the

The special names section, made
up

largely of investment bankers,
job of calling on

igan

26

individuals—but did

Michigan Dealers

War

creased

Recommend

to

Loan

this

obscot Building, will send on re¬
quest a late analysis of Howell
Electric Motors Co., an outstand¬

headed the

State

ulated them

as

with
conversion problem.
company

post-war

no

Co-Chairman

Baker,

Simonds

have

Building,

Co.,

&

Buhl

compiled

recent
analyses of Miller Tool & Manu¬
facturing Co. and Superior Tool &
Die

Co.

Copies

are

available

on

request.

Charles A. Parceils of

are;

Detroit

Mac Arthur,

& Co.; Duncan J.

Post-War America

a

shares

(Continued from page 1590)
ed

how

on

dozen

which

questions

S.

Kresge

Company

a

stock, and underwritten
shares of Industrial Wire
Products
Corporation
of

30,000
Cloth

it Michigan

common

The

.

Hart, First of Michigan
Corp.; and Fred A. Bargmann,
Braun, Bosworth & Co.

Henry

Ettinger of, Halsey,
& Co., won the top indi¬
prize, a statuette by Gwen

questions embraced prob¬
contract
terminations;

disposal of surplus materials
$50,000,000,-

which will amount to

the

000;

owned

disposal of government
which
have in¬
facilities by 25%; the fu¬
plants

creased

of

ture

credit;

and

trade

policy

government

the

whether

the

volume

of

on

foreign

rehabilitation

policy

will

and

be

de¬

on
the basis of diplo¬
in the State Department or
the invigoration of trade outside

termined
macy

the Department;

the future of ra¬
tioning and other restrictions and
the strength of the desire to re¬
turn to normalcy; policies on de^
mobilization

of the

and

industrial'

the

whether

the

for

armed

forces

workers;

Of local interest

tax

questions he raised must be

Morgenihau On Tour
For Monetary Talks

stock

terest

re¬

face

a

debacle

much

war fronts, it was disclosed
Washington on Oct. 18.
The
Secretary, accompanied by Dr.
Harry D. White, Director of the
Treasury Department's Division of
Monetary
Research,
and
Fred
Smith, a confidential adviser, was
reported to have arrived in Algiers

15 but

of

the

itinerary

vealed.

In the

no

further details

have

course

the

Treasurer

Commissioner

be

been re¬
of the tour,

according to the United Press, Mr.
Morgenthau is expected to lay
American plans for a post-war
stabilization fund and world bank

drain

county

on

since

1928

of $2,200*000

judgment

Five suits

in

payment of

stock.

writer

the

funds

a

suits

the company.

Auditor General Vernon J.
Under

edict

the

of

Brown!

the

1943

Legislature, $7,800,000 will be ear¬
marked for post-war construction
and the balance will go into a
post-war fund to liquidate such
obligations as the State might in¬

or

other

or

Michigan made
profit of $35,725,634 from
operations during the fiscal year
ending June 30, 1943, according t<J

on

Highland Park is
Nine

financing,

net

a

past due bonds and
special assess¬

fund,

the

market

new

And the State of

other

filed in Oakland

were

not

and seek¬

the

on

Co. to

was

previously either by the under¬

bonds

in

&

It

the stock having been acquired

hand, the county
through addi¬
tional assessment rolls. The City

of

'

McCarty

com¬

interest either from

general

per

selling group was ar¬
locally
by
Campbell,

ranged

and

County against the Board of Su¬
pervisors, the Drain Commissioner
and
County
Treasurer seeking

ment

$8

was

of

share.

27 suits in Oakland

cur

petitioner.

after the war—such

as

a

sol¬

diers' bonus.

filed

were

Revenues collected during the

against the drain assessment dis¬
trict in Oakland County for sums

year

totaled $243,880,000

pared

totaling $353,000.

with

expenses

as com¬

of $214,-

740,000.

"United Nations Bank for Recon¬
struction and

given in

our

Development"

were

issue of Oct. 14, page

Consolidated Natural Gas com¬
mon w. 1. offers attractive
possi¬

bilities, according to Reynolds &
120

Broadway^

New

The

Michigan

York

City, members .of the New York

division

of

the

The
State Municipal
Association
Finance
meeting last Mon¬ Commission has approved a $265,000 bond issue for the village of
day night at the Detroit Club.
Guest speaker was George Rom- Grosse Pointe Woods, the money
ney,
head
of the
Automotive to be used for completion and ad¬
Council for War Production, who ditions to the village system of

Investment

Bankers

held its annual

addressed

them

on

business

op¬

storm sewers.

;

1486.

The preliminary post-war
stabilization plan, authored by Dr.

White, appeared in these columns
of April 8, page 1300, and the re¬
vised draft in our Aug. 26th issue,
page 829.

Cons. Natural Gas Co.

An Outstanding

;

National
Public

Co.

situations

current

Radiator

National

offer

according

in

request.

'' I '

Analysis

•

on

•'

-

■

Request

Company and
and Trust

Bank

possibilities,
memoranda being

distributed by C. E. Unterberg

upon

;

•

The

attractive

to

Company

With No Post-War Conversion Problem

Howell Electric Motors Company

Situations of Interest
The

&
Exchange. An interesting
circular upon the company may Co., 61 Broadway, New York City.
Copies of these interesting memo¬
be had from Reynolds & Co. upon
randa may be had from the firm
request.

are

bonds totaling $800,000.

of the

Oct.

Michigan,

residents

A small

amount

ing

only to
the price

Circuit

Courts.

outstanding

Secretary of the Treasury Morgenthau is now on an aerial tour

on

County

Imperial
;

Available

of

file in Macomb

are on

Oakland

the

Mich.

on

worth

of

Wire Cloth Products Corp., Wayne,

pelled to pay principal and in¬

Situation of Interest

Stock

drain bonds
and

dollars'

the offer¬

was

ing this week by Campbell, Mc¬
Carty & Co. of 30,750 shares of

revenue

solved before 1946, the first of the
full post-war years, or America
would

principal and interest
million

There

policy will be
before many nations.
only; the prob¬
He also will talk money matters
lems of policing the peace; the re¬
with Allied military commanders,
lationship
between
government
presumably about the use of in¬
and business; and the final
policy
vasion money by the armed forces.
of government spending.
The
Treasury's • plans
for
a
Mr. Henderson insisted that the
one

ment of
several

Drain

of

lems

Mandamus suits to require pay¬

asking that

.

Corp.; Gordon

Charles M.
Stuart

stock.

faces and which have not yet

been resolved.

the

answered

America

major

S.

common

enterprise depend¬

future of free

of

Ken-

McNabb,

Smith & Co.; Sid Gilbreath and

McPherson Brown¬

monds & Co.

Buhl

Building, has recently made
secondary offering of 12,900

Miller,

Carlton M. Iligbe

Co.,

&

Fred

Hill, Watling, Lerchen & Co.;
Harry W. Kerr, Crouse, Bennett,,

drive, congrat¬
did Wayne County

common

Enterprise In

McCarty

Co.;

Phil

ower

Lux.

Campbell,

Trust

and

nald

ing of the Detroit Trust Co., and
Ralph W. Simonds of Baker Si¬

vidual

,.

City, which

November 3.

Watson,
Campbell, McCarty & Co.; Regi¬

Walter S. McLucas, Chairman of
the National Bank of Detroit, who

ing

out

junket of Mich¬
will attend the IBA con¬

Campbell

ing, they went out and sold $47,000,000 worth of bonds to top the
quota by 40%.

Allman, Moreland & Co., Pen¬

on

Buhr,

fail¬

was

arise

Charles A. Parceils & Co.; Oscar

$30,000,000, and when

it looked like the drive

will

sizable

Among those scheduled to at-5^
tend

in¬

was

men

starts

ing job. In the Second War Loan,
its quota was $15,000,000.
In the
Third

a

vention in New York

outstand¬

an

which

war.

And

had the difficult

issued

against equipment current¬
ly in service.
It consists of 582
locomotives, 535 passenger cars
and 6,548 freight cars. Their orig¬
inal cost was estimated at $71,-

words of Frank Isbey, head of the
Michigan drive, in their ears, members of the banking and investment
banking fraternity held their "Victory Party" the night of October 8
in the Savoyard Club in the Buhl Building.
The
banking
division
sold <S>
—
—
000,000 quota.

Members Detroit Stock Exchange

of

a

certificates

The

98.3373.

on

banking division, Michigan would not

have gone over the top."
With these congratulatory

Latest Information

1944

March 1 and Sept. 1 from

to

Co.,

"The price level will

Common

prices to yield from 0.75% to
3%, according to maturity. The
certificates mature semi-annually

not

~

to

Michigan Brevities

National Stamping Co.

at

kets under,

:

wires

Private

BUILDING, DETROIT

A

glomerate

Black

& Go.

To All Markets

BUHL

Stuart

'Thirties.

group.

Private Wires

Offers Rail Certificates

greater than the depression of the

rationing is /a typical
example. I still see a world short¬

Baker, Simonds

DETROIT 26, MICH.
Telephone

article among too large and con¬
a

.

MILLER TOOL & MFG. CO.

future date is still

Halsey, Stuart Group

now

phase of the
year, some few even
German collapse before

189

PALACE CORPORATION

SECURITIES

insufficient supply of

some

possibility."

an

end of the European

*

DE

SUPERIOR TOOL & DIE CO.

consumer

housewife has forgotten the mean¬

for

a

Trading Markets in

INVESTMENT

more

"This
not

an

coffee at

Tele.

quick¬

"Peace is not far distant.

good coffee and increasingly more

3670

We Have

NU ENAMEL

ly regained.

sell

Co.

Members of Detroit Stock Exchange

(Continued from page 1605)
the 'healthy' advertising messages
of individual roasters. It will be¬

1609

Allman, Moreland & Co.
Member

Detroit

Stock Exchange

1051 Penobscot Building,

,

petroit 26, Mich.

TELETYPE DE 75

Battle Creek

Lansing

1610

THE COMMERCIAL & FINANCIAL CHRONICLE

WE OFFER A SERVICE
is

It

available to

interested

all those

Attack On New

TlFFT fltllOTIIEItS

in

Exchanges
Associate Members New

now included in an investment
portfolio or contemplated
purchase. This service, consisting of primary market quotations
and statistical information, is based upon records and experience
covering a period of 37 years.

—whether

Inquiries

invited from

are

and

individual

banks,

Primary Markets in
Connecticut Securities

institutions

ter

investors.

Telephones: 5-0151

FUTMASV3 8t CO.
Members New York Stock

Hartford 4

w *

v

New York, Cflnal 6-1255

Exchange

6 Central Row

,,v*

American

foreign service of
Chancery order. The Chan¬
cellor
of
New
Jersey,
acting
through
Vice-Chancellor • Stein,
denied Mr. Edwards' petition who
then appealed through his New¬

I

>'

,'

•

■'

»

BOwling Green 9-2211

Bell Teletype
HF 564

Beli

At

the

New York:

System Teletype: IIF 365

rubber

natural

on

opposed in order to as¬
cheap and plentiful tires for

sure

special appearance in order

a

tariff

would be

to set aside the

Hartford 7-3191

high

a

had no legal jurisdiction
him, and also seeking to en¬

over

expressed

in

Court

Hartford and

Roosevelt

the hope on,.Oct. 15'that any effort
the post-war world to
impose

then fi]ed a petition in the Court
of Chancery, claiming thai the

for

Opposes High

Post-War Rubber Tariff
I<! President

(Continued from page 1591)

York Curb

Exchange

.

President

Jersey

Securities Act

Members New York and Boston Stock

Connecticut Securities

Thursday, October 21, 1943

cars.

his

conference,

press

the

President repeated some of his re¬
marks
made
on
Oct.
14
in
a

speech at a dinner in the White
House for President Elie Lescot of

Haiti, who

ark counsel;

guest.

was a

In Associated Press
Washington
belief, the New
advices of Oct. 15, it was also
Jersey Securities Act is assailed
stated:
as being unconstitutional
insofar;
Mr. Roosevelt said at the din¬
as it attempts to compel a non¬
ner that he
hoped that "When I
resident to appear in a purely

In Mr. Kanter's

Connecticut Brevities
The

of Connecticut is again in a position to
wipe out its
entire bonded indebtedness and begin making provisions lor the
post¬
war era.
The general fund boasts an accumulated surplus of
State

$16,469,468, of which $7,639,457 will be transferred to the debt retirement
fund, $4,492,342 held as a reserve, and the balance of $4,337,667 will
be held for financing post-war construction.
Eleven million dollars
of

this

surplus

invested

was

in*>

Government bonds during the re¬
cent Third War Loan Drive.

-

is

company

ducing

A notable

engaged in

now

torpedoes

accomplishment was
recently recorded in Connecticut's
industrial

1943,

and

pro¬

parts

for

turbines.

years,

field.

After

twelve

Billings & Spencer has

ceeded

For

net

suc¬

in

wiping out a deficit of
•>$776,000. Operations for the pe¬
riod ending July 17, 1943, showed
a surplus of
$83,031. In the first
ings

were

for

the

$200,146 against $227,959
period in

long

of

the

City

of Hartford

sizable

a

in

order

to

accumulation
for the

zation

Co., by

vote

of

approved. In accord¬

was

with

ance

Eagle

the

Lock

plan, holders

will

of

$25

one

the

receive

par

time

for

final

extension

filing reports

on

of

its

the United Aircraft plant in East
Hartford.
A world's record was
established

during August when
engines developing 5,000,000 horse¬

have completed the neces¬
expansion to meet wartime

L.

Hawkes
Mr.

it would seek

ment contracts for this

particular
contin¬

as

uation of this line

reductions saved the Government
in the neighborhood of
$20,000,000

might prove to
be at the expense of the companies
regularly operating in this field
and now equipped to handle
pres¬

for that month alone.

upon

V

turned

were'

out.

Based

this August production, price

Bullard Co. for the six months
ended June 30, 1943, shows con¬
solidated net profit of $1,161,908

compared to $210,729 for the sim¬
ilar period a year ago, or on a
per share basis, $4.21 and 76c, re¬

spectively.
in

the

of some

half

and

of

excess

1943

P.

Bullard

in

showed

tax

his

report

10%
tal

lower volume of business

pected
the

year

ex¬

year

due

to

curtailment

machine

pro¬

ducts.

During the summer months
there were heavy cancellations of
orders

for

machine

tools.

The

a

of

nearly
To¬

hours

months

11%

kilowatt

over

of

the

hours

corresponding period

of

tool production and the
conversion of the plant's facilities
for the manufacture of other

September

the

Hunter &

was a

formerly

was

trading
Co.

depart¬

and

prior

principal of Dimpel,
In the past he
& Co., Edward

with Gruntal

A. Purcell & Co. and

was

a

part¬

in F. L. Salomon & Co.

ner

453,-

a year ago.

sales,

re¬

porting 37,256,000 kilowatt hours
against 37,844,000 kilowatt hours
a year
ago. Total sales so far this
3% ahead of 1942.

as

insofar

it

Broadway, New
City, will be formed as of

York

Nov. 1.

Partners in Stafford & Co.
be William F. Stafford,

will

Jr.,

member
and

of

the

Stock

Exchange,

"News

current

issue

of

Review," Huff,

Geyer

&

Hecht, Inc., 67 Wall Street, New
York

City, list several situations

in insurance stocks which the firm

believes offer attractive possibili¬
ties

at

the

"Review"

current

levels.
may

be

equipment production will be stepped

$4 billion annual

of the

year,

rate

between

now

and the

up

to

end

War Production Board states."
—News Item.

a

Aetna Life

WIRE

Electronics

CO.
Radar

Russell

Landers

Scovill Mfg. Co.:

Conn. Lt. & Pr.

Torrlngton Co.

Mfg. Co.

66

NEW HAVEN
Members
N.

Y.

Stock

Exchange




Coburn & Middlebrook
Pearl

St.,

Hartford Phone

In Connecticut

for 52 Years

7-3261

Boston

Hartford

I,

Conn.

New York Phone

HAnover 2-5537

Phone-—Enterprise 1850

Bell

Teletype HF 464'/.

is

grow¬

called

cryptostegia,

which

rubber

is

a

from
THIS5

produced.

Mr. Roosevelt said, Haiti's^
output of rubber will be 10,000'
tons

and

he

called

contribution

to

that

the

a

great

United

tions' war effort;

Na¬

-

The

current

situation in Pitts¬

ties for

appreciation, according to
study prepared by T. J. Feible-

a

man

&

New

York

sion

able to

Chancery deci¬

be

can

Golden
we

sustained
could

we

Rule

courts

right

to

what

thus

other
upon

States

the

case

up

residents
is

the

of

other

first that has

the

on

question
in¬
volved, under the New Jersey Se¬
curities Act, before the
New Jer¬
sey Court of Errors and
No

Appeals.

brief has

yet been

for

Also

submitted

the New
Jersey Attorney Gen¬
eral, but is expected to be filed
shortly. In ordinary course, the

Court's

decision may be antici¬
pated within a few months.

Paine, Webber, Jackson

available

memoranda

are

Nu-Enamel; Oklahoma-Texas
Trust; Pittsburgh, Canonsburg &
on

citizens

our

improperly would
arrogating to ourselves

City.

& Co.

man

the

so

be

against
States."

of

Company, 41

dealers only, may be had
request from T. J. Feible-

upon

and

visit

we

"if
the

if
practically,
willing to accord to

would be

the

only

abolish

Washington 5s of 1937; Washing¬
ton
&
Canonsburg First 5s of
1932; Second Avenue Traction 5s
of 1937; Southern Traction 5s of
1950;

and

West

End

Traction

5s

of 1938.

Chicago Tractions Under

,

Municipal Ownership
-

Leason & Co., Inc., 39 South La

Salle

St.,

pared

an

Chicago, 111., has pre¬
interesting study show¬
ing the practicability of public
ownership of the Chicago Surfaqe
Elevated

Lines.

Outlined

in

the

& Cur¬

tis, 25 Broad Street, New York
City, members of the New York

study is a proposed purchase
offer, earnings available for fixed
charges
under -city
ownership,
proposed
treatment
of
present
securities

holders, and estimated

Stofk Exchange

values

national

issues of both

and other leading
exchanges, have pre¬

pared

an
interesting memorandum
discussing the attractions of Con¬

solidated
mon

Natural
i.

w.

Gas

Co.

Copies of this

outlining the possibilities
from

Paine,

for

the

Webber,

The

Securities

of

Gas

Situation of Interest

to

Co.

offers

stock

of

Standard

the

Public Service

attractive

an

a

South¬

Company

the

Oil

memorandum

and

members

the

Philadelphia

changes.

ing!

of

York

being

New

York

York

Stock

Ex¬

Copies of this interest¬

memorandum

Exchange

may
on

be

had

request.

stockholders

Co. of New

of

Jersey.

Utility Department of

Hettleman &
New

New

froAi Buckley Brothers

The Public

ac¬

situation

by Buckley Brothers,
1529 Walnut
Street, Philadelphia,

Pa.J

and

Consolidated Natural

\

Common

;

Interesting

Commission has approved the dis¬

jW. Public Service

western

securities

Consolidated Natural Gas
Situation

tribution

S.

various

systems. Copies of
this study may be had
upon re¬
quest from Leason & Co., Inc. A

com¬

memo¬

distributed

Chas. W. Scranton & Co.

en¬

visiting

Broad St.,
Copies of this
interesting study, which is avail¬

cording to

*

Write for information

rubber

the

unfairness of the
statute, Mr. Ed¬
wards'
counsel
claims that the
correctness of the

request

Am. Hardware

ACME

of

dinner for

year,

Chancery,

of the situation
may be had upon

New Britain Mach.

discussion
the

plant

Attorney General
replied, was incorrectly decided;
In
emphasizing the invalidity and

had

Markets for Dealers in:

at

say

decision of the Court of
on ! which
the

Jackson & Curtis.
"Electronic

his

burgh Railways System, particu¬
larly certain of the underlying
bonds, offers attractive possibili¬

randum

the firm upon request.

not

Pittsburgh Rys. Look Good

Copies of
from

did

ing relatively large amounts of

contention being that
Jersey Securities Act is
constitutionally
inoperative:
A
special point is made that a
prior

.

their

would

for

more

President because Haiti

and

Interesting Situations

United

car

process of

Offers Possibilities
the

The

to

Margaret V. Stafford.

In

50%

Roosevelt

tered

non¬

seems

the
a

mean

somebody would veto any effort
to put a high tariff on rubber.

argu¬

against

as

in

owned

pay

The

would

the

come

Following
the
dissolution
of
Stafford, Shields & Robinson on
Oct. 31, the New York Stock Ex¬
change firm of Stafford & Co.,

the

for

invalid

going."

that

the New

the

Hartford Electric Light showed
decline in September

year are about

is

This

for

503,530,000 kilowatt
showing an increase of

629,000

during the latter half of

in

kilowatt

nine

than

the

Hulsebosch & Co.
was

were

hours,

a

of

of

with offices at 39

September, 1942.

first

more
was

new

increase

an

over

sales

the

to

indicated that

building
Stamford, Conn.

power

were

$3,014,822, while a year ago
corresponding figures were
$132,000 and $5,935,000.
stockholders

Cor¬

outlay

an

field, United Il¬
Company's sales of

luminating

the

E.

$546,500 for

electric

profits

Cyanamid

plans for

In the utility

was

the

has

construction at

Federal income taxes

first

$274,000

poration

floor

Stafford & Co. Formed

The American

^

Act

residents

of

American

what time he hoped to be out pf
White House, but he hoped

the
juris¬

elaborate

the

kind

the

however, is there made
that, under the Federal constitu¬
tion, the New Jersey Securities

ethically
of

of

thereto

ent demands.

power

the

on

Hulsebosch

manager

type of glass inasmuch

most

for

man

who
to

Mr.

reasons,
no

House

the

rubber.

Independent¬

Chancery had

put

plants
said

every

States
have

to

The

law,"

Gerard Hulsebosch To

ment

further Govern¬

set aside.

perpit absence of "due

exchange.

that

ment,

abroad."

requirements, the Hartford-Em¬
pire Company has announced that
no

brief.

investments

Be Hawkes Co. Partner

charged

compel a non-resident
served in a foreign state to
appear
in such a suit, it is asserted
by the

enemy-occupied territory, as well
as
to provide a complete
report

Bowser debenture.

synthetic

Chancery to deny
right to appear

constitutional

diction

and

—

cerns

of

Court of

is designed to pro¬
vide military authorities with full
information concerning American-

Gerard
F.
Hulsebosch
will
operating. The present com¬ ment turning out the glass for
shortly be admitted to partner¬
pany, incorporated in
1928, has binoculars, gun-sights and other
shown earnings in each year since needs of the Army and Navy. This ship in Hawkes & Co., 14 Wall
1940, and may well be proud of department was created when the Street, New York City, members
of the New. York Stock
Exchange.
having erased the long-standing usual sources of supply were seri¬
ously limited. Now that other con¬ He will act as alternate for Frank
deficit."'
sary

ly

census

.

of

Edwards'

White

rubber

on

President

specially in order to have service

date.

American

Court

of process

be filled
immediately upon com¬
pletion, regardless of the closing

all

not

the

won't

automobile tires just to keep some

New Jer¬

commission, of any fraudulent
act, the brief of Mr. Edwards'
counsel challenges the power of

rapid progress of Allied
troops in Europe makes it im¬
perative that all reports should

enemy

tariff

dealing

to" pointing out
was

of

Congress

with the commission, or attempt¬

the

in

decree

from

from

or

In addition

Mr.

property

the

ed

"The

owned

defendant

that Mr. Edwards

partment declared,

"The

where

in securities in

Emphasizing that no further
extension will be
granted, the De¬

tinue

Recently released figures show
that Pratt & Whitney Aircraft has
shipped its 100,000th engine from

the

sey.

1.

one

two years ago,
the Government's urging,, the
Ilartford-Empire
Company
or¬
ganized an optical glass depart¬

ing

erty in foreign countries, to Dec. 1.
The original date of
Aug. 31 set
for filing had been extended to

at

con¬

and

out

am

suit,

personal

would have the effect of prevent¬

Form TFR-500 of American
prop¬

Approximately

for

second

a

on

share of Bowser, Inc., stock and

taxes

to

concern

Lock

than 75% of the outstand¬
ing stock, the plan of reorgani¬

forgive
of

as com¬

more

important factor in
drop forging indus¬
try.
However, in the period of
adjustment following World War
I, the company found itself in dif¬
necessary

$1,329,573,
$178,400.

Eagle

an

was

periods, Fed¬

same

special meeting of stockholders

and

ficulties and it

per

On Sept. 28, at the adjourned

corresponding

tool

In the

pared to

Originally established in 1869
by Charles E. Billings and Chris¬
topher M. Spencer, the company
the

profit of $494,552xor $2.47

eral taxes were

1942.

was

ended Aug. 15,
Veeder-Root, Inc., reports

share against $426,203 or $2.13 a
share for the period ended Aug.

six months of the year, net earn¬

The Treasury
Department in
Washington announced on Oct. .19

Dec.

the period

8, 1942.

Treasury Extends Time
For Foreign Listings

Co., 52 Wall Street,

City, members of the
Stock

and

changes, has prepared

Curb

an

Ex¬

interest¬

ing

analysis

the

properties, financial position,

earnings,
solidated.
may
upon

and

describing in

prospects

of

detail

Con¬

Copies of this analysis

be had from Hettleman & Co.

written request..

.

'

V

DIVIDEND NOTICES

BOAT

ELECTRIC

-

proposed issue of $16,000,000 first mort¬
gage bonds to 3%%. in place of 3 Lift rate
named
in
original statement which was

ATLANTA GAS LIGHT CO.

COMPANY

*

Bcsard

The

declared

of

Atlanta

five

of

due

October

1943.

3.

Director lias declared

a

regular

Quarterly ."-dividend of 5Q<' per share on the out¬
standing ( Vinmon Stock, payable on November

record

1, 194.0- to stockholders ft

October 15,

on

The transfer buck.- will not close.

1943.

THOS, A. CLARK

Septfihh' r::2.i. 1943

treasurer

bids

will

cover

Peachtree St.,

that the fi¬

This modern-

to
have been spent under the plan
to merge the street car and ele¬
vated
lines
properties
under

;

that

was

well as
complete
replacement
of the
Chicago Motor Coach Co.'s prop¬
ownership,

as

bonds

Kaiser

the

bonds

the

on

purchase of the various local
transportation units was subject*
to the approval by voters of the
city at a referendum. Any tenta¬
tive purchase price to be agreed
upon, as the result of negotiations
between the city and the various
companies would also be subject
to
the approval of the
Federal
District Court in the cases of the
Chicago Surface Lines and the
Chicago Rapid Transit Co., which
are undergoing reorganization.

$1,237,000 State of North
real estate bonds,

2*4%

The bonds are
of the State
offered at prices to yield

maturing 1953-59.

obligations

5:30

effective

statement

Registration

Read

Co.,

pany,

The

$325,000;

C.

Allyn
Com¬

$150,000; Blyth & Co.. Inc., 81,700,Boclftcher & Co., $550,000; Bosworth,

First

Weeks,

&

&

W.

Co.,

8150,000;

Co.,

Hornblower

Hut,ton

E.

W.

$400,000;

Hay-

&

&

Co.,

Jones & Co., $75,000;

Edward D.

&

$400,000;

Co.,

$100,000;

Co.

8200,000;

8200,000;

Peabody

Kidder,

C.

&

Langley

Co.,

$400,000; Laurence M. Marks & Co., $200,-

Lynch,

Merrill

000;

S.

Moseley

Cook

&

Pierce,

Co.,

&

<fe

Company,
Tully & Co., $100,000;
Co.,

Pacific Co. of California, $100,000;
Writer

Rauscher.

of

not

5ft

than

more

Awarded—Botn

<fc

Co.,

at

13,

Oct.

awarded to Shields

issues

bonds as 3s

the

1943:
stock

the

and

100.1.59

of par.

$4ft

at

div.

at

rate,

100.379.

Subject to the approval of the
will be reoffered at 101.45
preferred stock at 102 V4.
Offered—Securities offered Oct. 15, the
the bonds

SEC,
and

the

bonds

and

101.45

at

int.

102.25 per share and div. by
and associates.

the

and

stock

at

Shields & Co,
■

,

California

Electric

tered

$16,000,000

3'lift

Series

due

Co.

Power

first

has

mortgage

1968,

and

shares

40,000

convertible prior preferred stock, par
value $100 per share.

5VVft

Address—3771

Street,

Eighth

Riverside,

Cal.

in
the
generation,
transmission, distribution and sale of elec¬
Business—Engaged

tric energy.

for

underwriter

Underwriting-—Principal

Co.,

8100,000;

Inc.,

E.

Rollins

H.

&

$325,000; L. F. Rothschild &
$200,000; Schwabacher & Co., $100,-

Co.,

Shields

000;

Co.,

&

$325,000;

Shuman,

Co., $100,000; Smith, Moore &
William R. Staats Co., $100,-

&

Agnew

$75,000;

Stix & Co., $75,000; Stone & Webster

000;

$1,550,000; Sullivan &
Tucker, Anthony & Co.,
$200,000; Union Securities Corp., $325,000;
Blodgett,

Walker

H.

G.

Inc.,

$100,000;

Co.,

&

Co.,

Weeden

$225,000;

&

Co., $100,000; White, Weld & Co., $200,000;

8200,000; Dean Witter
and Harold E. Wood &

Wisconsin Company,
&

$400,000,

Co.,

$75,000..

Co.,

Stone

are:

the

of

underwriters

The

Webster

&

and

preferred stock
Blodgett, Inc.,

Bosworth, Chanute, Lough¬
ridge & Co.; 9,000; Blyth & Co., Inc.,
5,000;
Boettcher & Co., 2,000; Garrettshares;

9,000

&

Peters,

3,000;

Co.,

2,000;

Inc.,

Writer

Sullivan

&

&

Co.,

1,000, and Dillon, Read & Co., 9,000.
Offering —The
$16,000,000
3^ ft
1st
fntge. bonds were offered Oct. 19 at 103 la
by Dillon, Read & Co. and asso¬

int.

and

ciates.

shares of 5Vi ft convertible
prior preferred stock were offered Oct. 19
at 102.50 per share by a syndicate headed
by
Stone & Webster and Blodget, Inc.,
Bosworth, Chanute, Loughridge & Co., and
The

40,000

associates.

:v/ft'.' ■;

the bonds is Dillon, Read & Co., New York,

the preferred

stock Stone & Web¬
Blodget,
Inc.,
and
Bosworth,
Loughridge & Co., Denver. Other
underwriters
will
be
named
by amend¬
for

and

$650,000

for

tion

ment.-

bonds to be
and due Oct. 1, 1953.

used

redeem

to

gold

all

of

the

first

trust

5 ft series of 1956
after giving effect to
the surrender of certain bonds in the face

mortgage
be

to

Balance of proceeds
the balance then due
the 3ft>. installment note held by Bank
of

amount

will
on

$641,300.

used

be

pay

Trust

& Savings

As¬

Upon the payment of such note,

sociation.

$641,000

to

National

America

of

bonds,

outstanding

of the company's
trust gold bonds pledged by
as security for such note will
amount

face

first mortgage
the

company

Ohio.
Business—Manufacturer

Power Co.

amended the coupon rate on

its

registra¬

first

4ft ft

Oct.

dated

Carthage

Address—5025

1943

1,

Nor¬

Avenue,

wood,

and

equipment,

filing

niture,

of

fur¬

office

stationers

E.

from

Proceeds—Proceeds
the

other

will

bonds

funds

sale

and

with
retire in

together

used,

be

the

of

issue

company,

to

early

total

of

The district has

$10,049,500

be¬

bonds

1,

Jan.

on

1944,

1944.

S-2.

p.m.

(9-24-43).

EWT

EWT
on

Oct.

Offered

by

W.

Oct.

E.

(This

effective

statement

5:30

Oct, 16, 1943, as of 5:30 p.m.
13, 1943.

on

19,

Hutton
list

is

1943

&

101

at

and

int.

Co.

incomplete

this

week)

tures

in

$100,000,000 actually ma¬
and

1955

and the

later,

present aggregate compares with
the

which

figure of $140,000,000
in

obtained

As

financial
sues

when

operation

refunding
ated.

1935,

a

was

result of its

condition,

a

large

negoti¬

improved

refunding is¬

by the district have become

progressively smaller and debt re¬
duction

In

accordingly

accelerated.

addition, the interest rates

the

refunding that has been

on
ac¬

complished have been greatly low¬
ered

from

the

charges originally

required on the indebtedness.




until
entire

production to
consumption

The

United

nounced

Work¬

ers, an

In

at

concluding session of their
in Buffalo, N. Y., the

the

convention

delegates also asked modification
of the rules of the War Labor
Board

to

permit

direct

negotia¬

tions between the union and man¬

agement on wage problems
other
disputed issues with

authority to reach a

and
full
final settle¬

particularly those far dis¬
major producing areas,
by making from 10 to 30% more

areas,

butter available for civilians than

Still the fact is that since

market

the

week

last

has

the

i\t

:•{

s-s

The no-strike

resolution, adopted

approximate 4 to 1 majority,
upon
the Federal Govern¬
ment
to
operate plants where
"management is not bargaining in
good faith and is taking advantage
by

an

calls

of

the

war

no-strike
lective

situation

pledge

to

bargaining."

and

labor's

destroy

col¬

by them
months.

consumed

average

during the past
The

managed to pull itself away
from the edge of the cliff and
is slowly beginning to climb
up again.

seven

Associated

Press

accounts

stated "Food officials say

the Gov¬
has already bought and

ernment

sufficient

stored

butter

to

meet

essential

military, lend-lease and
non-civilian
requirements

other

Stocks

until

Leaving political consider¬
aside for the moment,

ations

action

such

inter¬

be

must

next

held

by

about

200,000,000 pounds, accumu¬
during
the
past
seven

lated

March.

the

now

total

Government

months under

order

requiring
preted as bullish. Unfortu¬
manufacturers to set aside speci¬
nately politics cannot be for¬
fied percentages of their output
gotten completely even
for the Government.
That order
though the market seems to
be saying, "It's all right boys, was suspended this month."
/"
you
can
come
in again."
So balancing technical per¬ Phillips Petroleum Seen
formance
against unknown Offering Possibilites
Common stock of the Phillips
political decisions I feel the
market will have a rally from Petroleum Company offers attrac¬
here to maybe the old highs. tive
possibilities, according to an
But I don't think the makings
interesting circular being distrib¬
of a genuine bull trend is in uted
by Laurence M. Marks & Co.,
the cards. Yet, if the market 49 Wall St., New York
City,
does go up, and volume does members of the New York Stock
increase, enough bullish sen¬ and Curb Exchanges. Copies of
an

'

-mmmggmrn—-

will

timent

released

be

to

the needed impression
that still higher prices are
ahead. It is at such point the
greatest danger exists. For
let news, or even a leakage of
news,
get around that the
carefully laid plans have gone
awry then the whole struc¬
ture can topple easily.

give

this circular may be had from the
firm upon request.

independent steels will prob¬
ably play a close second.
Bethlehem may even take the
lead, but it will be Big Steel
that will generate a public
following. Among the plane
stocks, Douglas will undoubt¬

edly stand out.

Looking at the market, as a
market only, you can expect
that from here on the going
will be either slower, or vol¬
ume

;

I don't put

much belief in

wonderful

the

about

stories

the

plane transportation
If future.
They sound too full

itself must increase.

then watch out

former,

partic¬

of

romance

sober

make

to

reading.

ularly in the rails, which have
a
In the next few days, say
larger public following than
is generally believed.
If the by Monday, the market will
latter, then look for sharp in¬ have shown enough to tell if
volume

in

creases

and

in

the

stocks.

airplane

the

rally, even though
minor one, is underway, or
the

speculative followings, that it

other

wouldn't take much stock to

mediate

get them to start up again.

a

if

steels.

Strong,

General

Secre¬

tary of the World's Committee of

*

there is

a

:-s

.

7

jor

one,

ma¬

and

the

Dr.

Strong advised relatives to
regularly but not too often
to be cheerful and keep up
spirit
by ' emphasizing
his

clues

watch

*

,':)■ ■

:i;

More next

time

views
do

coincide

Chronicle.
Established

1850

not

the

*

Thursday.
—Walter

[The
article

Whyte

in this'
necessarily at any
with those of the
expressed

They

presented
only.]

are

those of the author

place where he still be¬

longs.

thing is just an¬
For im¬

dashed hope.

U. S. Steel, is still the
Bethlehem

leader.

whole

ft;',:,ft/ft-''

.

Among the steels, the

H. Hentz & Co.

write
and

his

Members
New

home interests.

York

Stock

Exchange

New

York

Curb

Exchange

Cotton

N Y Bank Stocks

New

interesting
tabulation
of
comparative figures for leading
New

York

panies

banks

and

trust

of

request from the New York
Ilansealic Corporation.

upon

Orleans

And

Exchange,
Board
Cotton

other

of

Inc.

99

WALL

STREET

NEW YORK 3, N. Y.

Trade

Exchange

Exchanges

SUGAR

com¬

Sept.

30, 1943, has
been prepared by the New York
Ifanseatic Corporation, 120 Broad¬
way, New York City.
Copies of
this interesting table may be had
as

York

Commodity
Chicago

Compared

LAMBORN & CO.

Exchange

New
.

An

ment.

Oct. 9.

011

action,
the
WFA
said,
should
help
relieve
shortages
which have developed in some
tant from

than I have.

affiliate of the CIO, on Oc¬

other resolutions adopted

channels,

This

Both of these have such small

Tracy

Automobile

into

move

the War Food Administration an¬

Home To War Prisoners

No-Strike Pledge

the

plicitly as reflecting future
developments. But where the
Reds are concerned, I feel the
market has no more inkling
of what the outcome will be

Sending Photos Of

UAW Reaffirms

including

■

forces, are being suspended
next March to permit the

civilian

for market accidents,

1,

Registration Statement No. 2-5218. Form

agencies,

armed

the action of the market im¬

Jan.

tober 10 reaffirmed their no-strike

less than

say

the

the Young Men's Christian Asso¬
ciation, addressed at Brooklyn,
proposes to exercise the op¬
N. Y., on Oct. 17, 500 relatives of
pledge without qualification, de¬
tion on $7,000,000 of the total from
Brooklyn and Queens men in¬
manded the scrapping of the "Lit¬
terned in German and Japanese
cash presently available and the
tle Steel" formula and President
war-prison camps and said that
proceeds of the forthcoming re¬ Roosevelt's "hold-the-line" order
the best possible presents to send
funding loan. All of the district's and urged a rollback of prices to to a
prisoner are photographs of
September, 1942, levels.
outstanding funded debt of slightly
home, which remind him that

coming optional

and

and

steels

$2,000,000

approximately

refunding bonds.
a

offer¬

in November on an

of

between,

full
the
presently
outstanding $651,100
principal amount of 6ft
first mortgage
sinking funcl bonds due Oct. 1, 1944 on

Illinois, is expected to ask for bids

ing

England
America, I would trust

held

goods

Hutton & Co., of
Cincinnati is named underwriter.
Offerings—Price to;.the^ public will: be
supplied by amendment.
Underwriting—W.

of

Purchases of butter by Govern-;
ment

(Continued from page 1592)

filing supplies.

Registration

for cancellation.

surrended

statement

mortgage

Offering—Price of both bonds and prior

preferred stock will be supplied by amend¬

filed a

Globe-Wernicke Co. has

and

ster

CO.

GLOBE-WERNICKE

Chanute,

Registration Statement No. 2-5172. Form
8-1, (6-29-43).
In
ah
amendment
to
its
registration
statement filed Sept. 28, California Electric

_

&

$250,000;

Co.,

Inc.,

Christensen,

regis¬
bonds,

& Christensen, Inc., 8350,Presspich & Co., $250,000;

Pierce

&

Riter

Sons,

rate

W.

R.

and

Savs

Newhard,

$200,000;

Newton, Abbe &

$75,000;

Co.,

Fenner

Milwaukee

$200,000;
$225,000; Mitchum,
Beane,

Co.,

Agencies Suspend
Buying Of Baiter
;■"'

Whyte

Loughridge
&
Co.,
$800,000;
Co. of Lincoln, Neb., $75,000;-

Miller

den,

F.

Sovt.

Trust

Garrett-Bromfield

&

Dil¬

are:

A.

District,

Sanitary

Chicago

pre¬

Bankamerica

$3,475,000;

Co.,

&

Inc.,

Chanute,

Securities and
Exchange Commission Oct. 4 gave its ap¬
proval to the proposed solicitation by trie
company of competitive bids for $7,500,000
of first mortgage bonds and 20,000 shares
of" $100 par ; yalue preferred; stock.; The
bonds
will bear a
coupon
rate of
not
more
than 3V>f3> and the stock a dividend

be

from 1.20% to 1.50%.

Chicago Sanitary District
Plans Refunding Offering

the

on

the bonds

underwriters of

The

lon,
&

000;

together with funds
received by the company from the sale of
certain of its electric properties, will be

Stranalian, Harris & Co., Inc.,
Toledo, and Allison-Williams Co.
of Minneapolis, in joint account,
made a secondary offering last

were

dividends

and

Peters,

(8-31-43).

Proceeds—Proceeds,

Secondary Offering

general

$100

ferred .stock.

ment.

North Dakota Bonds In

Dakota

5'ft

its

on

prior preferred stock at
plus accrued interest

Paine, Webber, Jackson & Curtis, 8200,000;

Mayor made it clear that

week of

and

Walter

an

prices being

$75,000;

CALIFORNIA ELECTRIC POWER CO.

the

and

at

convertible

par

the. extent that funds are avail¬
redemption of $5,875,000 prin¬
cipal amount of general mortgage bonds,
series due 1955, 4l/a.ft, at 104, and $2,150,000 principal amount of general mortgage
bonds, iiVzte, series due 1961, at 104V2,
and to the redemption of 13,000 shares of
6ft
cumulative, preferred stock at $110 a
to

to

issue
103 Vaft

proposed

000;

able

filed

Co.

Power

the offering price on its
of 3'/aft
first mortgage

giving

Bromfield

erties.
The

18

Oct.

the company also engages in the
merchandising ol gas appliances.
It .has
been engaged in the sale of gas continu¬
ously, since 1856, except when its plant
was damaged
during the Civil War.
V Proceeds—Net proceeds, exclusive of ac¬
crued interest
and dividends, will be ap¬
plied

Electric

California

amendment to its registration statement on

$102.50,

would include

program

8102,000,000

private

operating util¬

engaged
primarily in
purchasing, distributing

July.

and

the
business
of
and
selling natural gas in 20 municipalities in
Georgia, and manufacturing, distributing
and selling artificial
gas in five munici¬
palities in Georgia and two in South Caro¬
lina.
Incidental to the promotion of its
company

'

■

be asked.

Atlanta, Ga.

EWT on Oct. 4, 1943.
Approval by
SEC.—The

the expenditure of

■; existing facilities.

;

a

last

bonds

p.m.

$110,000,000 over a 10-year pe¬
riod for improvements to the
ization

cumu¬

$100

value

Business—Company is an
ity

;

Thfe Mayor did say

the

5ft

par

sealed

which

Address—243

of

stock,

Offering prices of both
preferred stock will be supplied
by amendment.
filed

Registration Statement No. 2-5211. Form

nancing program under his plan
-

shares

20,000

preferred

share, on

8-1.

(Cont inued from page 1596)

would

a

Underwriting—To be filed by amendment.

Notes
r

of

filed

Co.,

share.

Municipal News And
i

subsidiary

a
Gas

ousincss,

NATIONAL DISTILLERS

Board of

&

.

PRODUCTS CORPORATION
The

and

1903,

lative

per

,

!

Co.,

statement with the, SEC, for
of first mortgage bonds, series

$7,500,000

per

a

cents

Light

Electric

registration

special dividend of twentyshare on the Capital Stock
of
the
Company,
payable
December
3,
1943 to stockholders of record at the close
of business November 18, < 1943.
Checks will be mailed by Bankers Trust
Co..
16 Wall St., New York
15, N. Y.,
Transfer Agent.
■
II. G. SMITH, Treasurer.

share

Gas

Consolidated

day

has
this
fifty
cents

Directors

dividend

a

and

★

New York, N. Y.

33 Pine Street

Tomorrow's Markets

Security Flotations
OFFERINGS

1611

CHRONICLE

THE COMMERCIAL & FINANCIAL

Number 4222

158

Volume

N.

Y.

Cotton

NEW

CHICAGO

Exchange Bldg.

YORK

DETROIT

GENEVA.

4, N.

Exports—Imports—Futures

Y.

PITTSBURGH

SWITZERLAND

DIgby 4-'2727

as

I

1612

THE COMMERCIAL & FINANCIAL CHRONICLE

For Dealers
S stocks with

Home

.

Thursday, October 21, 1943

ConsoL Natural Gas"w.i."

..

post-war prospects in the

Non-Stop Air Pick Up,

Merrimack Mfg.

Laundry, Electronics, Die Casting and Television fields.

All American

Bendix Home

Laboratories, Inc.

M. S. WlEN & Co.

Corporation

Members N.

Majestic Radio & Television Corp.
Trading markets

Republican Group Opposes Further Tax RiseTreasury Program And Saleslevy Believed Out

Representative Knutson

their

statement

Republican

of

Oct.

members

Ways and Means Committee
in

19,

of

the

Members

4 5

TELEPHONE

in

taxes,

the

effecting needed economies in ex¬
penditures, which would obviate
necessity

amount

of

for

equivalent

an

borrowing, and there-

at

after

witness

at

recommend

the President study the

gance in military expenditures."
The House Committee has con¬
cluded its public

hearings

tax

legislation and is

ing to work
nue

out

now

some

general belief is that

ing

on new

prepar¬

new

reve¬

no more

It

than

a

bill yield¬

stated

was

written.

Oct.

on

19

that

"both the sales tax and the
Admin¬

istration's

higher

request for markedly
income levies headed to¬

ward a legislative sidetrack
as the
House Ways and Means Commit¬
tee wound up on Oct. 19
public
hearings and prepared to work out
seme

new

session.

ciated

for

up

A

said

the

situation

about like this:

bogged down

retail

so

sales

tax

badly that

even

its proponents were
pessimistic.
2.
Lawmakers ignored the ad¬

ministration's

to

program

raise

$10,500,000,000 through higher

dividual

and

corporation

in¬

income

taxes and

larger excise levies.
Many Committee members

3.

believe
billions

no

more

additional

neled into the
4.

than four to five
can

be

chan¬

Treasury.

Congressional

turned
ment

further
economy

taxes.

The

emphasis
toward Govern¬
to avoid raising

Republican

Committtee

S. F. BOWSER
Debenture 5s, 1963

dous

—

Sold

—

Quoted

HAY, FALES & CO.

Members New York Stock
Exchange

71

Broadway N.Y. BOwling Green
*.

Ball

Telatypa XHT

1-61




9-7027

new

shown

increase

whole

S. H. JungerCo.

.

indirect

an

through the bill

move

give banks

comfortable

a more

dustry when the

war

is

"From the inflation

itself,

since
a

it

of

some

these

figures

and

you'll

get

the

maldistribution

loan

.

accounts

was.

.

.

.

.

.

Thus,

to meet the increased tax
burden.
Thus the vicious spiral would con¬

the

says

.

Reserve Banks and
It's

•: ■;

six

of

one

dealer,
may

own

half-dozen

situation in that way.

of

another.

.

.

What

.

y

.

.

does

seem

...

"1.

The

Federal tax

burden

is

TAX ANGLE

already at the unprecedented level
of

If you

$40,000,000,000, not counting
$10,000,000,000 levied by the

the

States
which
the

and

local

000,000,

highest

minimum of 5 and

and

borne

whether
or

load.

in

the

by

burden

all

shop,

who

factory,

office.

,

is

increases

next

payment

A

must

similar
be

ments.

Security

Act

two

will

items

substantially

be
will

increased

tax

sharp.
for

"3.

ing costs and already burdensome
These groups in particular
would be oppressed
by
any gen¬
eral increase in the
income tax.

Corporations

normal
cess

a

tax of 40%

are
on

already
so-called

earnings and 90%

profits.

In

addition,

on

ex¬

corpo¬

.

.

.

.

.

.

.

.

.

.

.

of

are

no

consequence.

through

bond

..

.

.

.

.

the

.

are

of

1942,

year

a

.

ingly greater".

..

In other words, banks must
have higher interest income.
They can't look forward to many more bank
offerings of new
securities
They must, then, enter the open market and
pick
up what securities are available.
.

.

....

.

.

.

Incidentally, there's informed talk around of the desire
Treasury to do away entirely with bank
offerings of bonds
the coming months.
;
To avoid, if
possible, any offerings
of the usual market deals until
way into 1944.
One thing
.

.

.

.

.

Banks won't be in

.

on

.

.

public drives from

now

on.

.

of the

during
outside
is cer¬
.

.

The

September financing proved the long-term character of that
experi¬
ment.
And the Treasury is
trying to figure out a system to keep
.

.

.

banks out of the market

Loans

are

put

on.

.

.

completely when the fourth

and fifth War

.

tially large industries
developed.

ness

when

left

the

some

war

will

be

ends, 'it

must

be

margin for reconversion

expansion purposes.

Encour¬

agement must be given to risk

jobless

are

to

or

be

"5.
so
a

A.

National

Mr.

Bank

Taylor

is

Building.
well

known

the

among

municipal
dealers
throughout the country and was

associated with R. E. Crummer &
Co. from 1933 to
early in 1942, at
which time he resigned his
sition

to

accept

an

assignment

with the War Production Board in

Washington, where he

served

Assistant Chief of Industrial

as

Sal¬

vage.

INDEX
•,

•
,

Bank and

Calendar of New
Canadian

As Chairman Doughton has
well pointed out, you can shear

sheep indefinitely, but

you can

skin it but

once.

We believe that

a

ture

solvency of American busi¬
bring about the liquida¬

and

tion of the middle

always been
country."

class, which has

the backbone of

Page

.

Insurance Stocks......... 1607

Security Flotations 1611

Securities

.

......

Investment Trusts

......1599
.

Municipal News and Notes

1606
1595

Our

Reporter's Report,.............1603

Our

Reporter on Governments...... 1594

Public

Utility

Securities—

1596

.................

Real Estate Securities

1593
1605

.

further increase in taxation at
this time would threaten the fu¬

who

First

Railroad Securities

.

venture capital if new and poten¬

women

ILL. —Harry

will be in charge of the
Trading
Department in the Chicago office,

expenses

corporate taxes. If American busi¬
ness is to be able to furnish em¬
and

CHICAGO,

Taylor
has
become
associated
with The Crummer
Company and

sig¬

greatest

and

men

Harry A. Taylor With
Crammer In Chicago

approx¬

tain.

5

BUY WAR BONDS

.

calendar

.

Security Dealers Ass'n

Street, New York

.

The prime factors necessi¬

holdings

rate stockholders must
pay up to
90% on any dividends which
may
be paid out of what is left after

ployment to the millions of

Pine

po¬

shifting

Corporation on the subject.
.
."The
further increase in the surtax at this
time is exceedingly
Based on the breakdown of banks' income and

a

.

Millions of persons have re¬
no
benefit from the war

taxes.

chance.

imate equivalent of the net
earnings of the banking system, such an
increase in the tax liability would
necessitate a 10 to 20% enlarge¬
ment of interest income if the
higher tax liability is to be offset.
Obvously, the effect of a 10% increase in the surtax is
correspond¬

ceived

boom, and many of these have
suffered an actual decrease in in¬
come, in the face of mounting liv¬

a

5% increase in the corporate surtax
is estimated to be the equivalent of a 20
to 30% increase in the tax
burden.
Since the interest received from securities
is the

in

pay¬

Not

.

Excesses will be raised
And corporations may anticipate a
maximum of 10% boost of their combined tax

income

30

Tel. WHitehall 4-7970 Tele. NY
1-2218

.

doubled.

ments in 1944.

higher

:

To quote The First Boston

1945.

result

These

...

effect of

(b) Beginning Jan. 1, the present
1% payroll tax under the Social
These

.

'

nificance.

(a)

in

a

....

tating

additional

made

.

.

Most taxpayers will have to
pay,
in addition to the
regular 1944
income tax, 12y2% of their 1942
assessment.

1.

increase their

farrm
1

year:

No.

street

yield from Government bonds and offset the greater tax burden.
Meaning, say the market students, that banks will be in for
bonds in the open market
despite any and all intermediate move¬

toil,

"2. Without any
changes in ex¬
isting law, there will be two major
tax

dream

Meaning, say the experts, that banks will be pushed into
out of their shorts and into
longer bonds in order to

capita tax burden in

per

down

sharply right down the line.

people to $50,000,-

one-third the national
This is without doubt the

world

thinking

Individuals will get higher income taxes.

or

income.
the

governments,

brings the total tax load of

American

think corporations have a chance of getting away under
year's tax bill without some increase in their total tax, you

this
are

:

Banks must get extra

.

reserve requirements will be
low¬
kick back bills held to the Federal

their

ease

or

.

important is the widespread belief that the banks will not be per¬
mitted to remain in a tight situation and
easing of the position to
permit re-entry into the market is likely.

com-

I L. D. SHERMAN & CO.
j Members N. Y.

.

.

Limestone, 6s '52

.

...

banks

Or

...

National Gas & Elec.

Indiana

.

.

funds is not going to be sufficient.

ered.

Copper Canyon Mining

.

.

funds from somewhere.

inevitably
higher wages

1-1159

Moxie

...

are

.

excess

Teletype N. Y.

Vicana Sugar
Postal Telegraph

.

.

...

over,

The statement added these
ciusions:

.

.

in¬

Security Dealers^ Ass'n

Olfrby 4-4832

larger

.

standpoint,

'' •• >.

the

figured at around $19,500,000,000
Against this amount, of course, the banks need keep no reserves.
Over the coming weeks, this money is going out and funds are
coming into banks against which they must keep reserves.
Requirements, therefore, are bound to increase;
Money in circulation increase between now and the end of the
year also will be great.
Maybe another $1,000,000,000, to add to
"tightness".
Now survey the situation.
Obviously, the $1,610,000,000 of

would

demand for

Phone

future.

the

War

believe that the further tax
increase would be
inflationary in

lead to

Y.

Exchange PI., N. Y. S, N. Y.

position

reserve

.

of

40

Whatever the exact method chosen, the dealer is certain

.

near

serious

un¬

assume

Members N.

.

...

economy.'

of reconversion

inquiries invited.

through the country at the latest reporting date
were
$1,610,000,000.
In the larger cities, situation was bad.
New York City actually had a deficiency of $10,000,000 two weeks
ago, at latest date had only $45,000,000 surplus, just to indicate how

taxes

probably

OR

1-576

york

Excess reserves

conclu¬
in

COUPONS HISSING

5

Teletype

pattern.

hand, witness

would

our

task

paying

Bought

.

Consider

that will weaken the nation's war
or make harder the tremen¬

"4.

EAGLE LOCK

market.

effort

store

vigorous but brief drive
national

a

plan in closed

time

Reporting this, the Asso¬
equally

Press

shaped
1.

revenue

.

be sidestepped in favor of

may

country."

"We do not wish to

$4,000,000,000 in

revenue will be

this

has

an

tinue."

plan in executive session. The

additional

.

we

extrava¬

Bell

...

responsibility for doing anything

that

possibility

eliminating waste and

that

dermine

Byrd,

likewise

YORK

telephone

larger cities.
A lowering of reserve requirements is on the
calendar, says this house.
Admitting, however, that a direct move

time

"The Treasury has failed to jus¬
tify its proposal to add an addi¬
tional $10,500,000,000 to our tax

sively

tures, has said can be removed
without in any way
impairing the
war effort.
;::::

Association

NEW

(Continued from page 1594)

continued:

"Let him without
delay sever
from the Government payroll the
300,000 employees whom Senator

BIDS MADE ON BONDS WITH

Reporter On "Governments"

in the

our

The statement

Dealers

"

lore, of taxes.

of

Our

action will be taken to

On the other

"We

this

Security

Enterprise 6015

about the liquidation of the mid¬
dle class, which has always been

load.

Democrat,
of
Virginia,
Chairman of the Joint Committee
on Nonessential Federal
Expendi¬

2-3600

the backbone of

President

should forthwith proceed to set
governmental finance in order by

the

taxation

York

STREET,

philadelphia

minority

bring

alternative to further in¬

an

in

crease

1-1397

request

1UTILATED

would threaten the future solvency
of American business and

ated Press:

"As

REOTOB

Min¬

of

behalf of the

on

New

N A S S A U

members, said that "a further in¬

said

part, according to the Associ¬

creases

nesota

HAnover 2-8780

Y.

INCORPORATED

$10,500,000,000 through
higher individual and corporation income taxes and larger excise
levies, it is believed likely that'«v
the entire
Treasury plan will be members' statement, issued by
In

on

Security Dealers Ass'n

Teletype N.

-

increase in Federal taxation and
urged instead a program of Gov¬
ernment economy.
In view of the opposition of some Democrats
to the Administration's
program
to raise

the

Information

Y.

25 Broad St.. N.Y.

Eobbe, Gearhart & Company

Republican members of the House Ways and Means Committee
joined on Oct. 19 in a statement declaring against plans for a further

discarded.

and

Preferred

&

Mexican Bonds

Appliances, Inc.

Allen B. DuMont
Harvill

Common

Aviation, Inc.

our

Securities Salesman's Corner........ 1607
Tomorrow's

Says

Markets—Walter

Whyte

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