Full text of Commercial and Financial Chronicle : October 22, 1942, Vol. 156, No. 4118, Section 1

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Bl».

OCT 13 1942

AMs

limarv

Three Sections-Section One

TH URSDAY

Final Edition

"Re*. U. 8. Pat. Offlco

Price 60 Cents

N. Y., Thursday, October 22, 1942

New York,

Number 4118

156

Volume

Copy

a

IBA War Finance Conference Meets In N. Y.;
OUR

Oni Reporter

REPORTER'S

Investment

On "Governments"

.

Washington
that
moving to forestall
reaping of speculative profits
from
were

any

at 100.

2s of 1952/50 are selling

new

.

.

in the

war

.

.

.

railroad
had been running
high in recent months, received a
sharp setback this week with the
things

sections of the

all

item of business before them—that of their participation

defaulted

news

bankers from

Their issue price. through helping the Treasury finance it. -John S. Fleek of the Cleve¬
.' The longer-term issue of 2s, also taxable and due in 1955/51 are land investment banking firm of Hayden, Miller & Co., President of
selling at 100.
Their issue price some months ago. ... Just look the Association, in a pre-meeting<^>at those two figures, try to reconcile them with the basic rules of
cal business trips to New York.
statement said, "The primary rea¬
price-maturity-yield relationships! ... It's rather silly, isn't it? . . . son for our session is to be told by A number of commercial bankers
But then again, that's the sort of situation you get into when bonds Government representatives who
and others who are members of
are sold
at a price too close to the market and the official sources
are
directing the war financing, the Treasury's Victory Fund Com¬
extend support to the market. . *. . Unless we miss our guess and how great are the demands and mittees were invited as special
unless (which is much more important) the Treasury and Federal
where and how we can help."
guests of the association.
Reserve System miss their task, the longer 2s and the shorter 2s and
Out of the meeting, said Presi¬
Among the Government repre¬
The

Interest in
bonds, which

Banking Termed Vital To Nation
investment

500

or

country gathered in New York this week for the 31st annual meeting
of the Investment Bankers Association of America, having one major

REPORT

}

400

Some

.

.

,

in that direction.

strength

♦

and in some

outside the receiver¬
ship class, was the anticipated
passage of the new War Rev-,
enue
Act with
provision for
permitting the railroads to

,

taxes

v,

.

buy

capital

that

.

revamping.

no

.

4

.

.

try to take some of its recently-bought securities off its
Prior to the last financing and during the days the sub¬

Federal was a: prime buyer of out¬
standing;securities, v
It didn't buy those obligations for permanent
holding, and its indications to that effect set off the movement.
And it-jnay be that another explanation entirely is responsible.
But that doesn't matter. V .What does is that Morgenthau's
scription books

open, the

were

.

..

.

.

.

$4,000,000,000 sale of 2s and iy2s still is having a seriously disturbing
effect on the most, important market in the nation today. . . . Can
such a flotation be called a success?
•.
Even though the $4,000,000,.

.

000

raised?

was

..

V

.

But it's about time discussion of the recent

•

iw the
*'*. minds of the legislators and the
Treasury along the same lines,
with a none-too-gentle hint that
action

subsequent

There is

was

>

financing

was

ended

surely—the Treasury officials want to put a halt to
under-cover talk.
And with the speech of Undersecretary
One thing,

...

the

.

.

.

.

steps

ultimate

whatever

tion's

are

Associa¬
finance Axmference Mondaysvening, we've had final con¬
of the Treasury's intention to make the 10-year 2s the

Treasury Daniel W. Bell at the Investment Bankers

of the

war

firmation

will be made retro-

taken they

•

*•

bond

standard

active.

banks.

commercial

for

,

.

.

.

•on

such bonds light, but

turnover in
even

averaged

losses

so

2

to

the

since

heaviest

points,

of nearby bids

3

fiscal

interest

on page

"

...

19

which

and

methods

discussed

techniques of selling Government
bonds in vast
ter the

quantities much af¬
in which business

manner

in

concerns

normal

more,

times

hold national sales conferences to
stimulate
ucts.

■

At

.

.

the

Admiral
and

their

Land

at

prod¬

a

.

on.

Oct.
the

was

dinner

the

Grew

calamity
banking

19, Rear
speaker,

same

night

ered

two-day

a

Hotel,

ments," he said. "For these rea¬
sons
you are all the more to be
commended for so willingly vol¬
unteering to take time from your
ordinary business. to sell Govern¬
ment bonds in direct competition
with the securities which

In

taking place
Held

under

ciation's

on

meetings

of the

Finance

■'

;;

was

first

association has

time

met in

in Governments this

don't know what's going to happen to
on page 1440)
•

elicited this reply, "I
-

1439)

(Continued

•

■

AND

1436

v1
the

New York

ciation's

located

members are

eastern

were

..,.

Municipal News and Notes
1432
Our- Reporter. cm -Governments1425
Our

1428

Items

.,.1429

Securities

Railroad
Real

1425

Report....

Reporter's

Personnel

Estate

Securities

Salesman's

Tomorrow's

1428

Securities......
Corner......

Market—Walter

1431

Whyte

Says
1429
Uptown After 3
1437
Savings and Loan Asm'S Portfolios
•

'in

Sound

1434

Condition—

Associations' Bond Buying
.

Effort;.

Brake

on

Aids War
Inflation
1435

The majority of the asso¬

gates.

and

seaboard,

on

those

CHASE

THE

this year's

asked to include

meeting with one of their periodi-

Page 1434

Loan Associations Starts on

CONSTRUCTION

1430

1431

asso¬

that

Stocks,......

Insurance

and

from other sections of the country

Special, Editorial Material Featuring: Savings and

DESIGN

QUICK ACTION ON

1430)

on page

Investment Trusts

1912,
purposethis year being to
minimize the traveling of dele¬

the

in

Page

the

telephone call to one of the big dealers

A

;

,

Calendar of New Security Flotations

18.

,

the

your

service

INDEX
Bank

Confer¬

convention.

its

to

(Continued

the meeting replaced the
association's usual five-day annual
It

are

helping the Treasury, the securi¬
ties business as represented in the

19

Sunday, Oct.

the Htle

"War

addition

cov¬

period—Oct.

and 20—with committee

brought

has

the

addressed

Waldorf-Astoria

it

drastic displacements and curtail¬

meeting- held at;

gathering.- The
the

com¬

"War is a devastating
at best and for invest¬

ment

Under-Secretary Bell and former
Ambassador

they have ren¬

regular stock in trade."

■

luncheon

a

of

sale

.

apply

Treasury without

pensation,

since its' initial convention in

week

(Continued

And they're going to do that by buying billions

ranging from % of l%.to 2%.

.

•;

going to double their holdings of

...

"EVERYBODY WORRIED"

rise

! began.

are

year.

Fund

Committees participated in a spe¬
cial war finance session on Oct.-

services

dered the

ence,"

Governments this
of
Tuesday,-helped to keep the securities,-ranging from 90-day bills to 10-year bonds and carrying
Banks

Only the absence

and the

of the Treasury's Victory

to

of the securities business

the

ers

the

experi¬
ence
to the nation's problem of
financing the war. He commended

Chairmen and executives manag¬
...

for

business

their special training and

men

officials

develop
men in

should

ways

securities

the

Reserve

pre-meeting

his

there

additional

for

Federal

...

books.

shipping. Another speaker
Joseph C. Grew, former Am¬
to Japan.
In addition,

in

Fleek

statement,

Treasury, War Savings Staff and

authorities, asked what the official support would do. ... . Received
a
cool reception.
And market reflected this immediately. ■?.. \
Another is the Federal Reserve itself started the thing by suggesting
that dealers

W.

bassador

one

.

Daniel

were

war

was

story is a major institution in the New York district
showed its hand- as a seller.
-.
Dealers went to the Federal Reserve

.

unwillingness
to delay the tax bill further
this amendment was set aside.
But it was clearly indicated that

f

of

,

illusionary

But because of

,

Land, Chairman of the Maritime
Commission and the man in charge

the

to see if the orders could be
Subject markets are usually the sign of a badly

certainty but

of such

dent

wishes and the dealers would "try

Senator
Wheeler, with an eye on the like¬
lihood of speculative attempts to
"cash in" on this development,
had
already
introduced
an
.amendment to the bill, - which
•would have placed a 90% tax on
all profits made from securities
of
carriers
in
reorganization,
either before or upon completion
;

.

disorganized, unsettled situation. ,
The factors behind the sudden development?

develops

Bell,
Under-Secretary of the Treasury,
and Rear Admiral Emory Scott

sentatives

began quoting "subject" markets 011 most of the long-terms and
intermediates.
That is they told customers to state their
fulfilled."

on

now

.

.

.

indicative of the present situation
the Government bond market. . . . A few days ago, dealers

in

gains.
It

.

And here's another report,

without fac¬
necessity
of paying

the

ing

.

.

bonds

their

back

;

or

boards.

ligations

:

remain at par—come one

look forward to will

we can

another.
So let's admit another axiom is going by the
No longer can you sit down and figure' what spreads
should exist between issues on the basis of the fundamentals. ...
thing

this classification
of the cheaper ob-

in

1

all the other 2s

recent protracted

the

Behind

BANK

NATIONAL

also

"

Invest
•

hi connection

with

each

in

REPORTS

SURVEYS AND

U,

the

OF THE CITY OF NEW YORK

day

NATIONAL BANK

A.

S.

MANAGEMENT PROBLEMS

of EGYPT

BUY UNITED STATES

VALUATIONS

WAR SAVINGS BONDS

FINANCING and

Office

Head
'

Commercial

99

Register

No.

1

WALL STREET

Broaden your customer

NEW YORK CITY

Cairo

service with Chase

Cairo

AND STAMPS

Sanderson & Porter
•

Established

52 WILLI AM STREET

CAPITAL

FULLY PAID

R. H. Johnson & Co.

ENGINEERSand CONSTRUCTORS
•

LAMBORN & CO.

FUND

RESERVE

....

.

.

.

£3,000,000

correspondent

SUGAR

£3,000,000

1927

facilities

'

INVESTMENT

■

SanFrancisco

NEWYORK

Chicago

SECURITIES

*

AGENCY

LONDON

Exports—Imports—Futures

_

6

64 Wall Street, New York
BOSTON
r PHILADELPHIA

and

7

Street,

William

King

E.

C.

,

Albany, "A Buffalo

Troy
Established

1856

H. Hentz & Co.
>'

Member*'■

York

New

New

always

Board

of

other

Inc.
Trade

\ri

a

wide range

in

principal

of

Office:

Head

Cotton Exchange Bldf.
NEW YORK

Branches

Kobbe, Gearhart & Co.

and

BOSTON

CHICAGO

DETROIT

PITTSBURGH

SWITZERLAND




Y.

Security

45 Nassau" Street
Tel.

GENEVA,

N.

REctor

Philadelphia

2-3600

Dealers

Ass'n

New York

Teletype N. Y.

Telephone:

Subscribed

Aden

Underlying Mortgage
Railroad Bonds

1-576

Enterprise

6015

■.

Capital
Fund.

The

Bank

......

conducts

banking

and

in

Reorganization Bonds
Inquiries

Ceylon, Kenya
Zanzibar

and

Capital.

Paid-Up

.£4,000,000
£2,000,000
.£2,200,000

every

exchange

description

of

also

Members
New
52

//

York Security Dealers Assn.

WILLIAM ST., N.

business

and

Executorships

undertaken

invited

HART SMITH & CO.
Y.

Bell Teletype NY

HAnover 2-0980

GUARANTEED
—

New

York

€o.

RAILROAD STOCKS-BONDS
—

—

1-395
BO.

Trusteeships

Deposit Insurance

Corporation

Bishopsgate,
E. C.

Burma,

In India,

Reserve

INCORPORATED

Members

4-2727

Uganda

and

26,

London,

Securities

Colony

N. Y.

Government

Colony

Kenya

Qver-The-Counter

Exchange

the

to

Federal
.

DIgrby

NATIONAL BANK
Bankers

Exchangee

in

SUDAN

the

and

Member

the

Towns

of INDIA, LIMITED

Exchange

Orleans Cotton
And

I

Actual Trading Markets,

Exchange

Exchange,

Commodity
Chicago

Curb
Cotton

York

New

-

EGYPT

1

all

Branches

Syracuse

Stock; Exchange

York

New

'

Pittsburgh
Wilkes-Barre
Williamsport

Montreal

Toronto

Gr.

9-6400

Telephone

NEW YORK

52

Broadway

N.Y. 1-1063

Teletype

1

THE COMMERCIAL & FINANCIAL CHRONICLE

1426

Trading Markets in:...

American Barge

We Maintain Active Markets in U. S. FUNDS

Line

Ohmer Fare

Brown

Co.

Pfd.

5s-59

Minn.

Ont.

Missouri Pacific
5

%

\

.

40

Members N. Y. Stock
Ass'n

Security Dealers

York

/ /.'

•the armed forces and is

Telephone BArclay 7-0100

%

#

i

taken

H

duration.

YORK

Broadway

cash

Phone: REctor
2-8700

of

reor¬

the

of

some

position,

the

control,

from

PHILADELPHIA
Issues in these Cities Invited

ri

York

of

merly

:/«.•

1st

Profit

in

Counter

connection with

house.

to

act

S

20,

25

contact

as

Spruce

Recessions, for

ings

St.,

New

part, were, of minor proportions and
prices drifted lower, thus indicating an

the most

far.

/.
.V;'."...: ■
Following the extended advanced
——'/. ■ • y
^"y/
which has thus far taken place, it An exception, however, has been
is natural to expect that the mar-' in some of the fairly short maturi
ties1 in
which
ket has
entered an area where
speculation'
has

or

Box

man.

York

very

kind

Representative

with

veloping

a

wide acquaintance in

&

WIIitehaH

Auchincloss, Parker,
Redpath in charge of the Mar-,

BROKERAGE

BANKING

and

around

at

top

de¬

prevailing

ity and reaction.

(

.

;

in the above capacity
As

with THE NATIONAL

QUOTA¬
TION BUREAU (Daily Sheets).
Box K 19, Financial Chronicle,
25 Spruce St., New York.

we

time

present

of the vulner¬
defaulted

is

rail

bonds.

a

/,/
of

substantial

very

some

speculative
built up.

Opportunity

nificant
it

For Salesmen

is

advance
very

positions

lier maturities rather than in the

later maturities.

'in

mer,

of

intrinsic

and

orated

ex¬

that

the

have

been

the

technical

,

considerably.

Reactions in this

perience, wanted for Miami and

nedy

selling

are

quality.

Such

situa¬

a

judge the

we

situation

same

event, there is. no deny¬
ing the fact that there is sufficient

widespread distrust cf the afterthe-war position of the rails to
bring about a sharp reaction if
a

real peace scare
Tax

section of the

and

develops.

Peace

to

The

-■

the

following

New

Navy;:.'

There

have

sizeable

/■■

been

advances

some

very

during

recent
months, .but, generally speaking,
prices for utility stocks today are
even lower than the lowest
prices
recorded

at

the

bottom

of

the

market in 1932.

The proposed tax
its
anti-utility

bill, even with
joker, .virtually

clinches

Orleans

by

•movement
row

Detroit & Canada Tunnel
Bonds

&

limits.

cating

a

corrected, as we
prolonged sidewise

within

relatively nar¬
We are merely advo¬

caution

and

believe

that

profit-taking is a sounder policy
entering into new commit¬
ments, except in special instances.

Stock

than

Southern Cities Utilities
5s,

Some Exceptions

Consolidated Electric & Gas
-A"

6s,

.

tunities

in

in

In

this

Now

1962

&

consider

the borderline

in

the

from

N.

V.

Teletype

lVHitekatl 4-4970
NY

the

position

of

interest-paying rail

stocks

to

of

and

railroads

the

shorter

the

railroads.

I

sues

Most of these

is-

have for months been moving1

within

narrow

limits and with

no^

appreciable

increase

in

dealings.

utilities

peace

probably

Mr,
has

gaged

Weil,

a

In

it

the

Roswell

15
LeRoy

A.

yVubur

with

W. W. Lanahan &

Company

Baker, Watts & Co.

Mr. Wil¬

bur

has

jboyce

been

with

1927,

since

Stein

and

were

to

Members and employees of

we

Blood

M

Exchange

donation

Day,

Donor

to

of

Nov.

11,

Service of

the

at

the

He

Floor

Air

Exchange,

Raid

of

Chairman

was

Warden

of

Bay way

poration.
A

rm

s

t

nected

the

Dudley

Brill

ng

con¬

with

invest¬

ment

banking-

business

f

o r

(he past twen¬

ty-four
and

years,

has

with
Edward

J.

The

Armstrong

firm

Fitzhugh

j.

also

been
Stein

BrOS, & Boyce
since 1924.

announces

Dodson

retired

that
as

a

general partner, effective Oct.
15,
but is

Mrs.

the

Red

organiza¬

Vietor,
of
explained that

the

the

the

Brokers

better

for

the members and employees of the

for

the

Exchange.

blood

donor

Association
which

Mrs.

process.

of

continuing to be associated

Stein Bros. & Boyce state
16

members

including

one

Y.

Willislon & Co.

partner,

are

Henry C. Evans, partner, is

that

of

a

in

in

BiUard

decisive
—

J.

R.

the

that

organization,

serving

followed

"scissor"

the

meeting of

armed

now

forces.
now

Brigadier General in the Field

Artillery of the U.
Admission

fashion. —G.

of

Customers'

a

-real
would

Mr.

r o

with the firm.

and

ties

is

Secretary

Terminal Cor¬

New

for

-

Depart¬

of the

•

on

tion's

think that the rails and utili-

ger of
InvdsU-

ment.

make

blood

Cross,

position,

several

a n a

also

&

the

has been

the

the

Chapter of the American
Red Cross, 2 East 37th
Street, New
York
City.
James
McKenna.

Mrs.

develop with

for

past

New York Stock Exchange met on
Oct. 16 in the Board of Governors

Vietor also addressed

the market in its present

Bros.

.

the

a

formerly

and

NYSE Members, Employ ees
To Make Blood Donation

the

He

years.

has been

for
Armistice

ap-

ssocia ted

ment

is for

if

busi¬

x' imate'iy

was
a

J.,
First
Lt,
Quartermaster Corps.
Weil, Walter, Jr., Private, V.
O. C., Army Air
Corps. Vv/ fvv

of

the

for

ness

S.

longer the

worse

short,

U.

Frederick

fair obser¬

worse

the

Major,

en¬

in

banking

years

Palmer,

Carter

been

i nvest ment

School.

Smith,
Army.

15,

1942.

p r o

the meeting.

fare

of Oct.

as

'

Newman, Morris W., First Lt.,!
Glider
Corps, Advanced Glider

the

of

effective

ners,
;

S.'

'

as

part¬

now

termaster Corps.

Chief

rate

group

conversely,

war

and

scare

the

and,

reduction

a

admitted

general

York

being

surtax

better

and

—

list,

any peace mar¬

Certainly it is
lasts

the

preferred

this

also

extremely well in
ket.

presently

utilities

40%,

would

utilities

1-609




to

normal

45

There has been relatively little
public participation in this section

Stocks

.A.Saxton&Co.,Inc. I
7« PINE ST..

section

major beneficiaries of

war

bonds.

Company

Bonds

market

amongst

addition

of the market.

Water

the

vation to make that the

1958

are

Newman, Leon, First Lt., Quar¬

v

stocks.

it,

which

J.

to the firm

Security Trad-^
who

/Hardy, Ford T., First Lt, Army
Corps.
Manion, Charles W., Private,
Army Air Corps.' *

market could be
see

A. Wilbur and

Air

exist

dividends

many

that
Car¬

Edward

Schjott, Rudolph, Ensign,; U. S.

'-c

L.

ter, Jr., LeRoy

Coast Guard.

particularly

Chronicle,

Allan

Coast Guard.

some¬

Exchange,

announce

Gleason, F. Wesley, Ensign, U. S.1

readjustment; the position of the

Financial

,//

of

Dinkins, Ladd, Lt. (j. g.), U.

of this is not in any sense a pre¬
diction of an extensive downward

Spruce St., New York.

of the New York-Stock

..j

Box

All

members

are

Association

plans

25

Boyce, 6 South Calvert Strdet,

investment bankers and member's

of

was

room

H 21,

force

were

speculative and investment oppor¬

Write giv¬

sales

NSTA Service Flag /!

lapse last spring, for instance.

opportunity.

.the

;

BALTIMORE; MD.—Stein Bros.
&

ap¬

•

The position of utilities is

what different.

1-110

Arms t rong,

,

Beneficiaries

NY

Boyce

Newark,, in charge of the Mu¬
nicipal Department/

ing full particulars to advertiser,

cellent

Teletype

of

formerly were doubtful, and we
judge that some of the better

Ex¬

:

formerly Vice-President
€olyer,v Robinson & Co., Inc.,

of

market, when it is in such an ad-1
vanced position as at present, are
usually violent—witness the col¬

Orlando, Florida, territory.

Kennedy has been

Graham, Parsons & Co., 14 Wall
Street, New York City. Mr. Ken¬

normal, relationship to

will exist in the future.

and

market, judging
from, the recent character of the
buying and selling, has deteri¬

pref¬

pointed

Many of the for¬

opinion,

our

far out of

sizeable

not

obvious

position

New York

4-2!>68

New Orleans Association is an af-i
filiate'of the National
Security
Traders Association.

ear¬

had

have

Fundamentally, the out¬
undergone any sig¬
change for the worse, but

has

look

issues

these

apparently

erably with investment trust

one

able sections of the market at the

Most

Four high grade salesmen,

it,

see

Broadway

Admit New Partners

Graham, Parsons Go.

/ Harold J,

see

we
should expect to
sharp corrections in the

occur,
some

In any

As We See It
years

Security Dealers Ass'n.

serving in the armed forces. .Thd

.

temporary rather than permanent,

barrier.
The main trend,
opinion, is upward, subject
recurring periods of irregular-,

our

BUSINESS?
15

Y.

Stein Bros. &

Kennedy Joins /

to

were

tion in the past has always proved

to

N.

ket Analysis Department.

favorable

in

the

Members

New,

•brs

developments

CO.i

HUNTER &

for-.

was

the

tended to converge/- Hence, if un¬

porary

CONTACT

REPRESENTATIVE

or
a

intermediate

an

levels, we cannot conceive of it
being anything more than a tem¬

Contact Man
MAN

of

with

.

profit-taking will cause increasing
irregularity. The position of the
market, however, remains funda¬
mentally unchanged, and while we
recognize the probability of some

Are you in need of

;/.*

'•

unwillingness on the part of. investors or speculators to press offer¬

Chronicle,

Financial

\/;■

the past week..

volume tended to diminish as

manag¬

department

trading

ing

of the list during

progressive

Capable of

Taking

Foster

j

.

No. Adams Railroad

New

Exchanges,;

42

/

%// ///;

Generally easier tendencies prevailed throughout most sections

desires

business,

And

Mr.

associated

;

,

•

Pittsfield &

York office of

this

.,

Buckley Brothers.

Utilities Discussed

experienced

long

Foster will be ad¬

City, -members of the

Nov.

on

,

••

;.

Railroad
Shares

60

mitted-to

York Stock and Curb

/

Ware River

;

Gammack So.Partner

{ Marshall S.

competition

Copies

airplanes.

from

-

Trader
phases of the Over-the-

Bids Wanted

.

-

situa¬

wage
v

Stock Market Trend Upward; Rails

Man,

Don

,

Marshall Foster To Be

of

booklet may be had upon request

HARTFORD

Vice-President.

Harold

all

NY 1-1557

75 Shares

more

possibility

tion and the effect of

to

Wires

-

of

government

1-1288

Teletype NY
Direct

Inquiries on

New York, N. Y.

Cochran, .Manager of the

.

BH 198

25 Broad St.

partnership in Gam-:
important, roads, the tax situation; mack & Co., 40 Wall Street, New!

Dealers Ass'n

Security

York

BOSTON

Orleans, La. Birmingham, Ala.
Direct Wire

•

Street,

methods

the

are

1926

Established

-

W. B.

New

the

in¬

an

Walnut

1529

ganization

&■

New York

ganization is the subject of

study

Correspondence Invited

ANGELES

Maritime Bldg. Brown-Marx Bldg.

Small, Kansas representative, has
been elected Secretary/
- • *

Philadelphia, Pa. Discussed in, the

for placement with our customers

LOS

Members New York Stock Exchange

has

Company for

!

:

Assistant

Reorganization

The Status of Railroads in Reor?

Brothers,

and Bonds

Blocks of Stocks

Bell

Milburn

leave of absence from the

a

Small-Milburn

"

teresting study issued by Buckley

We invile confidential offerings of

New

Lt.

firm's Oklahoma City office, Ter¬
minal Building, has been elected

Investment Trusts -Estates

Members

Wyoming.

ren,.

Teletype NY 1-672

Rails In

!

Steiner,Rouse&Co.

Quartermaster Replace?
ment Training Center of Ft War¬

Exchange and Other Principal Exchanges
NEW

Lieuten¬

a

ant in the

Fanny Farmer

4'

Attention

120

O'Cara Coal Co., 5s, 1955

u r ri
Company, WheelerKeliy-Hagny Building, has joined

Com.

TELETYPE NY 1-423

Hanks

Debardelaben 4s, 1957

,

Mines

BROADWAY

115

HA 2-2772

Exchange PI., N.Y.
BELL

Alabama Mills

WICHITA, KANS. — Glenn L.
Milburn, Vice-President of Small-

.V

"

"

Goodbody & Co.

1920

Established
New

V

56-60 &

i

-

KATZ BROS.
Members

Paper

Noranda

Serial

s,

Com.?

&

Army;

Firm Elects Cochran
M i lb

1938

7«,

G. Milburn In
for

Canadian Securities

Chas. Pfizer & Co.

Thursday, October 22, 1942

of

S.

Army.

Messrs.

Carter,

Wilbur, and Armstrong to part¬
nership in Stein Bros,; & Boyce
was

previously

reported

in

the

"Financial. Chronicle" of Oct. 8th.

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4118

156

COMMERCIAL and

St. Louis Traders

FINANCIAL CHRONICLE
U,

Reg,

,

Office

Patent

8.

25

•

.

i

.

We

'

interested in

are

election

3-3341

Club of Saint

Herbert D. Seibert,

High Grade

MO.—At the annual
of the Security Traders

AND COMPANY

One

Louis, the following

D.

—

we

j,,

Spencer Trask & Co.

?

Thursday, October 22, 1942

-

[every Thurs-.
day (general news and advertising issue)
with a statistical issue on Monday]

Published

Other

twice

week

a

Copyright

/

William

by

1942

B.

Dana

25 Broad Street, New

>'

,

:

«

t

•

at

making'

markets

That's

becausa

ing about that
Our

bid

will

Stop moon¬

strong

make

box

you

junk.

sunny.

Obsolete Securities Dept.

Teletype NY 1-5

99 WALL

Members New York Stock Exchange

■

star

planet that way!

York

Telephone HAnover 2-4300

offices:

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

Victory!

cbsoletes.

we

for

Riggs, Business Manager

Nearer

BY JUPITER

PREFERRED STOCKS

William Dana Seibert, President

William

Week

Public Utility and Industrial

Editor and Publisher

•

LiCHTEnsTfin

-

offerings of

ST. LOUIS,

.

Spruce Street, New York
BEekman

.

Elects Richter Pres.

William B. Dana Company
Publishers

;

•

•

1427

STREET, NEW YORK

Telephone:

i

We

WHitehall

Are

4-655?.

Specialists

In

Company.
Reentered as second-class matter Feb-

■X1853

'ruary 25, 1942, at the post office at;
New York, N. Y., under the Act of Mar.
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
.Cuba, $29.50 per year;
Great Britain,
Continental Europe (except Spain), Asia,
Australia and
Africa, $31.00 per year.
NOTE—On account of the fluctuations
In the rate of exchange,

remittances for1
and
advertise¬

subscriptions

foreign

ments must be made In New York funds.

Inquiries
Lawyers

We take

selected

were

year

Richter

J.

' ': - ■\"'1

'

Second

NEW

TITLE

!'

CITY

COMPANIES

COMPANY

Newburger, Loeb & Co'J
40 Wall
•V

York

New

Bell

Stock-Exchange

WHitehall 4-6300

St., N.Y.

NY

Teletype

our

firm*

Co.'s

Participations

INC.

.

39

SteinBros.&Boyce
Established

6 S.

New York,

Broadway,
2-8070

Teletype

N.

Y.

1-1203

NY

1-2033

rome

Attention

Distributors

BROWN COMPANY

Calvert Street, Baltimore

due

5s

1959

S.

Committeeman

—

';•/■■■

NEW YORK

York, Pa.

Je¬

PHILADELPHIA

Hagerstown, Md.

Interest

LOUISVILLE

Cumberland, Md.

Tegeler, of Dempsey-TegCompany.

The election party was

7.5

earned

1941—Assets

ap¬

proximately $3,263 per bond—
Accumulated
interest
$100.

OF NEW YORK STOCK EXCHANGE

MEMBERS

CIRCULAR ON REQUEST

and other

held at

charges
in

Times

Washington, D. C.

F.

eler &

Retail

1853

Telephone Plaza 8400

Kelly, of
Stifel, Nicolaus & Company, Inc.
National

Members

Title

other

Trust

Ray¬

bold, Jr., of Goldman, Sachs &
Company.
■
Secretary—Richard H. Walsh, of
Newhard, Cook & Company.
Treasurer—Fred

PRUDENCE

day become general partners In

HAnover

Third Vice-President—Earl God-

TRUST COMPANIES

MORTGAGE

&

Ctfs.

Ctfs.

'Members New York Security Dealers Assn.

have this

Denyven, of Denyven and
Company.

by

YORK

—

all

Co.

Co.

mond J.

CERTIFICATES

BANK &

Vice-President

Title

L J. GOLDWATER & CO

' MR, EDWARD J. ARMSTRONG '

r

Ctfs.

Mtge,

&

Bank

In

Co.

Complete Statistical Information

MR. LeROY A. WILBUR

for'the

officers

as

1942-1943.

President—Henry J. Richter, of'
Scherck, Richter Company.

MARKETS FOR

•

MR. ALLAN L. CARTER, Jr.

,

Henry

Invited

Mtge.

Lawyers

and

Brennan, of Brennan, Kinsella &
Company.

ALL MORTGAGE

issued

pleasure In announcing that j

Bond

First Vice-President—Emmet J.

Real Estate Bonds

REAL ESTATESECUR1TIES

1942

leading exchanges,

~ .

the DeSoto Hotel.

CHARLES KING & CO.

October 15, 1942.

61

Broadway, N. Y.

WH. 4-8980

Teletype N.Y. 1-142

Auto Of
:
,

News & Views

Future May

Feature

The

2-Way Radio

Views"
&

Co.

Specializing

send

to

wave

and

■»

Old

to

5s,

current

The

due

situation

board Air Line

Charles

Railway Company
offers interesting possibilities ac¬

& Co., 61 Broadway, New
City, from whom copies may
had upon request.

cording to a bulletin issued by
Van Tuyl & Abbe, 72 Wall Street,
New York City.
Copies of the

a

circular

issued

by

development, described as

suppression," has
been in use for the past six months
on
tanks, Jeeps and half-tracks,
Mr. Roos said, and has proved inself
especially invaluable when
"radio

spark

King

York
be

battle formation.
continued, it was
impossible for them to transmit
and pick up dispatches on certain
Short wave bands due to sparks
and static generated by the elec¬
trical equipment in

5s,

J.

solved.

fice

will

&

Worms,

F.Reilly&Co.
Members

New

dis¬

now

71

The personnel of this of¬
move

to

the firm's

1931

York

Dealers

Security

Aaan.

Broadway, New York, N. Y.
HAnover 2-4660

new

Bell

System

Teletype,

N.

Y.

1-2480

quarters.

SEC Extends Time
...

the vehicles are travelling in con¬
voy
or
close
Previously, he

Bros.

man

Issues

Seaboard Air Line

formerly the main office of New¬

Sea¬

in

Colony R. R.
All

Ry. Interesting

Co.

1959, offer
interesting possibilities, according
Brown

,■

The

.

short

without interfer¬

messages

ence/'

receive

Stocks

&

of

<

cles

Bonds

issue of "News &

California, 210 West
had from Van Tuyl & Abbe upon
Reynolds & Co., 120 Broadway,
A motorist in the post-war era Seventh
Street, Los Angeles, Calif,
New York City, members New request.
may be able to converse by twocontains
interesting information
York Stock Exchange, announce
a
number
of fire insurance
way radio with friends miles away on
that Vincent A.
Catozella, for¬
as he rolls along the highway.
stocks which the firm considers,
In New Location
That is the distinct possibility offer particularly attractive possi¬ merly with Merrill Lynch, Pierce,
Fenner & Beane, has joined their
Ira Haupt & Company, Members
being held out for millions of bilities at the present time. Copies
New York Stock Exchange, have
drivers by Delmar G. Eoos, chief of "News & Views" may be had research staff as Manager of the
Investment Advisory Division and moved their main office to 111
engineer for Willys - Overland by writing to Butler-Huff & Co.
Tax Economist.
Broadway, New York City.
The
Motors, who this week outlined
firm announces the closing of its
results of his company's develop¬
ment of a mass-production tech¬
branch office at 25 Broad Street,
Seaboard
Interesting Possibilities
nique which enables combat vehi¬

Canadian

In

"Bulletin," which discusses the
Catozella Heads Dept. Of
company's earnings and the prog¬
published by Butler-Huff
Merrill Lynch, Pierce Co. ress of its reorganization may be

current

This announcement is not to be construed

as an

offer

The offering is made only by means

$

I1*'

to

offer

at

to

sell

or as a

solicitation of

an

offer

to

buy

any

On Trust Indentures

of the shares herein mentioned,
are qualified

of the Prospectus and through underwriters who

The

Securities

and

Exchange

the places where the offering is made.

Commision
NEW ISSUE

tion

of

Rule

50,000 Shares

a

the

announces

minor

T-7A-4,

adop¬

amendment

which

is

the

to

rule

concerning the calculation of time
of

their gasoline

Elastic Stop Nut Corporation

engines.
In overcoming the problem, Mr.

the

effective

for

tures

explained, Willys engineers,
in close cooperation with the U.

tions

under

date

of

qualification
the

applica¬

of

inden¬

Indenture

Trust

Roos

S.

6% Cumulative Convertible Preferred Stock

Signal Corps, designed special

(Par

Value—$50

Act

Share)

per

filters, suppressors and grounding

Subject to the prior right of holders of the Common Stock
to

efficiency.
!

He said the

company's Jeep

subscribe for these shares

were

described in the

5:30

Prospectus

$50

per

p.m.

stand¬

Copies of the Prospectus
as are

may

predicted that the new

Bonds

Complete Statistical Information

White, Weld & Co.
H. M.

Shields & Company

Byllesby and Company

The First Trust Company of Lincoln,

)

' ■'

;

I

I

■>




t

CRAIGMYLE, PINNEY & CO.
Members

New

WALL

York

ST.,

Stock

•U.-v't

ii

I

lr"ii" '-IT

.

K>; 1

"i

1

i »

'

*<

Exchange

NEW

Telephone WHitehall

!
i

Nebraska

ONE

October 20, 1942

bands available which were
previously useless.
,;*>

Inquiries Invited

\

Incorporated

•yvave

>

to

War

Preferred Stocks

permit immediate check¬

Mr. Roos

Standard

SECURITIES

be obtained from such of the undersigned

registered dealers in securities in this State.

ing of each Jeep as it was driven
from the assembly line.

spark suppresion method, in addi¬
tion to its possible use in the post¬
war
automobile, will greatly af¬
fect the future of radio and tele¬
vision since it makes hundreds of

Eastern

4:30

Time

Standard

WATER WORKS

containing short wave radios, were
constructed
in
sufficient
num¬
to

amendment

Share

(plus dividend accrued from October 1, 1942)

ardized and special testing booths,

bers

The

Time.

Price

perfecting a technique to "spark
suppress" motorized weapons in
mass
production.
Materials and
methods

as

Eastern

p.m.

as¬

sembly lines were then utilized in

installation

1939.

calculation is computed from

which eliminated the
without impairing engine

materials,
static

of

changes the hour from which the

YORK

4-5290

1428

THE

COMMERCIAL & FINANCIAL CHRONICLE

Thursday, October 22, 1942

UTILITY

PUBLIC

Forty Wall Street Building
INDUSTRIAL

New York

City

...

RAILROAD
Illustrated

MUNICIPAL

Analysis

If you contemplate making additions
send in particulars to the Editor

request

on

lication

BONDS

NEW

Incorporated

Lennertz,

Members

York Security

New

INCORPORATED

New York

Boston

Philadelphia

Milwaukee

Co.

Dealers Association

Sold

formerly

and

with

Omaha

The

to

has

sena

REAL ESTATE SECURITIES

Quoted

Otis

ers.

Financial

been

of Massachusetts

Harrow, William E. Lake, Carl C.
Lamb, Ralph E, Marsh, and May
B.

Oliver have been added to the
of Barrett Herrick & Com¬

staff

the staff

MAJESTIC APARTMENTS

New Mexico Gas Co. Com. & Pfd.

A Low-Priced

Southwestern Life Ins. Co.

^ T.

During

Utility Preferred Stock* '

RAUSCHER, PIERCE & CO.

this

study,

Majestic Apartments^
worthy of consideration. The ure
issue

sents

a

this

on

property pre¬

interesting specula¬
ownership. Each

very

tion in real estate

carries with it stock repre¬

bond

Insurance

of

Co.

an equal share in
100%
ownership of the property.

A

first mortgage

the bonds

American Insurance Co.

by

of

loans

as

A study

August, 1940.

as

these

enables

Besides

ownership

of

bondholders

Phone—REctor

with

Co.

Insurance

property:

3-3430

MArket

refinanced

was

fairly

a

good indication of the value of the

1891

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

Life

Aetna

recently

New

placed ahead of
by the Mutual

first mortgage placed

a

the

J. S. Rippel & Co.
Established

in 1937

Life Insurance Co.

(Newark)

small

some

2-4383

their

bond.
not

the

property, the
receiving

been

interest payments

of

All

on

1937,
each

which since
$54.57
-for

totaled

$770
was

having

;

the

have

bonds,

have

ST. LOUIS

interest

this

paid out of earnings. Part

of 1939 distribution

fund of taxes.

was

from

a re¬

While these inter¬

est payments are small, based on
the last interest payment and cur¬
rent

market,

yield in

x5r/x

Co.

&

The

509 OLIVE ST.
Bell

System

bonds' offer

the

excess

present

Teletype—SL 80

puted

of 8%.

assessment is $5,-

as

follows:

ership

Exchang*

$7,576,338
of facp value

'&,%

$2,300,000

454,580

>;

to The Financial Chronicle)

Prosser

.has

with Hicks &

ILL.

—Edward

become

of

taken

You

will

T.

associated

Price, 231 South La

of

rate

is

terest
their

of

Co. for many years.

Exchange
Weekly Firm Changes

mortgage has been
reduced by amortization payments
and is presently
outstanding in

the Aetna

the

real

loan

Mutual

loan of

was

"50%

a

of

property loan,"

estate experts.

was

used

Life

refund

to

Insurance

Co.

$2,500,000 at 4%%' to 4%%

interest placed in 1937.

If

we

fig-

I

Active

an

:

Co., New

N. Y.

Warms, effective Oct.

Sherburne

Prescott

by
on

Trading Market in

Majestic Apt

Co., New York City,

as

appraisals, the issue at that time
supposed

was

66 2/3%

The

to

represent

a

loan.

location

of

the

property,

the entire block front of Central
Park

West

-

from

71st

to

72nd

Streets, is one of the most out¬
standing in New York City. The
property faces directly on Cen¬
tral

Park

and

commands

vista

a

of

trees, lawns, ponds and wind¬
ing bridle paths extending over
an

of many acres.
Central
West and 72nd Street are

area

broad

streets

lined

buildings

subway station is

and

both

5th

with

and

on

buses

Spencer

Allen

partnership, in Hill

Cincinnati, Ohio,

as

&

Co.,

West, with
on

8th

available

71st

depth of 177 ^

a

Street

and

224

feet

Street.
It is improved
30-story apartment build¬
ing containing 1,403 rooms divided
with

of Sept/SOth.




Financial

4-4832

Teletype N.

Y.

1-1779

der & Co.,

ST.

formerly

was

with

office of A. M. Kid¬

,

.

to The

Chronicle)

Financial

LOUIS,

MO.

—

99

removed

and

their residence

from

business

address."
fact that

"left

Some
a

the

overlooked

few of their apparently

worthless transactions
value in

or<?>

forwarding

no

might be of

the future.

In the latter

part of 1930, many
brought under the
jurisdiction of the various State
banks

were

Commissioners
confronted

then

were

for

liq¬

Commissioners

These

with

the

problepi of locating thousands of
stockholders and depositors. The
stockholders
the

them their
York

were

sought for the

of suit and the depositors
purpose of returning to
own

bank

funds.

alone

One New

furnished

the

8%; to

tion

tion

into

208

apartments

from two

to

there

in

units

12 rooms.

are

both

addi¬

offices.

ten

are

of

In

The

simplex and

A special construc¬
eliminates the usual corner

columns

or

piers.

This space, up
to the 19th
story, is used for glass
enclosed

porches,

transformed

in

which

the

can

the

at

$14,250,445 and

which

on

insurance company has within
last

two

be

into

summer

an

own

years

made

a

first

mortgage loan of $2,435,000.

that

large terrace

vided
on

for

these

ceil¬

building

are

Entrances to

provided

on

To

are
as

continued

on

the

pay¬
same

than

more

the

only

one

locating
"lost individ¬

185,000

nationally known corporations, the
Skip Tracers Company was called
in

to find 420

missing stockhold¬

whose

stock

addresses, listed on the
certificates, were dated prior

to 1920.

Within

month's time

one

they succeeded in locating 85% of
these persons and

are

still in the

of searching for the bal¬

process
ance.

Frequently brokers
to locate
lete

missing

are

owners

securities.

Here,

anxious

of obso¬
too,

firm of Modern Hawkshaws
an

important

part.

they

In

this
plays
such

one

assigned

were

whose addresses
been known since 1914.

MARKETS IN

REAL ESTATE

SECURITIES
*

*

*

SHASKAN & CO.
Members Now York Stock Exchange
40 EXCHANGE
Bell

PL.,N.Y.

DIGBY 4-4950

Teletype NY 1-953

found in
other

were

to

of these obsolete

owners

the
TRADING

of

uals" in the past 18 years.
In a recent merger between two

not

the

last payment, it is
by purchasing the Ma¬
jestic bonds to receive a yield of

possible

is

concern

has been instrumental in

was

all

summarize, at current price

levels, and assuming interest

This

its kind in the United States and

securities,

apartments located
floors.
All apartments

galleries and

finding more than
7,000 such individuals.
*
Since the Banking Departments
had no investigating staff to cope
with a situation of this sort, the
task
was
assigned to the Skip
Tracers Company of New York, a
firm that had long specialized in
the field of tracing missing people.

find two

all

have spacious

of

instance

planned
space is pro¬

■,"■■■/

——■■

problem

ers

in addition to your
second mortgage bond a share in
the property on the basis of $2,754,580, which the City of New
York assesses at $5,150,000, which
was appraised at time of construc¬

basis

DIgby

Thomas

the Meriden

Chronicle)

a

ments

Exchange PI., New York

Mr.

When the late twenties ended, together with the long period of
prosperity, several million people, who had obligated themselves be^
yond their liquid assets, faced law suits, which arose from the pur¬
chase of stocks and securities, foreclosures of mortgages, charge acr
counts, broken leases and other indebtedness.
Many in their desire
to "duck the issue," felt that .it would be a simpler matter, if they

uidation.

72nd

on

S. H. JUNGERCO.
Phone

Church Street, New Haven, Conn,

a

66

Banking

at the door.

40

withdrew

P.

associated

Morris J,
BEACH,
FLA— Halloran, formerly with Lewis W.
S. Long has joined the staff
Thomson & Co. for a number of
of Southeastern Securities Corp.,
Graham
Building,
Jacksonville, years, is now with Bankers Bond
Fla.
Mr. Long was formerly local & Securities Co., 418 Olive Street.

three streets.

15th.

John

to The

become

with Fahnestock & Company, 205

Russell,

in summer and enclosed
with vita

all Real Estate Issues

has

DAYTONA

corner

and

also

are

fine

ings of extra height.
There is a
large solarium on the roof open

Inquiries invited
on

&

ChronicJe)

Bert

hotels.

the

Avenue

glass in the winter.

of

Thomas

Financial

CONN—Harold

the lower of these

Based

.

retired

partnership in Gude, Win-

of

j.

V':"

Douglas Gibbons,

Inc.

the

mill &

(Special

Chronicle)

Frederick Zitell & Sons, Inc., and

4's, due 1956

^

Department

Brewster & Co..•

The

MERIDEN,

number of years and prior thereto
was
in charge of the Over-the-

Counter

i

P'/./.

to

(Special

$14,100,000

•
..

Company.v;

formerly

was

with Thomson & McKinnon for

open terraces. In the upper stories
the
"set backs" are so

We Maintain

4th.

from

of

the

(with stock)

to Edwin H.

Oct.

of

would indicate an appraisal
$4,870,000 for the property by

York City, has changed his name

from

of

Fuget

,

previously with Paine, Webber &

George W.

—

duplex types.

the amount of $2,300,000.

Woarms, special part¬
&

value

Dayton

La

Mr.

:

Itigby has become connected with
Marshall / Company,
762
North
Water
Street,
Mr. Rigby
was

associated

Lynch, Pierce, Fenner

Beane.

feet

$2,435,-

This

Exchange
following

weekly firm changes:
Coe

Mutual

indication

the

O.

Fuget has become connected with

000 at 4% interest and 2% amorti¬

This

New York Stock

Jacques

the

Charles

(Special

Merrill

Financial

Milwaukee; Wis—Lyman

.

CHICAGO, ILL.

The

Chronicle)

—

become

Holley,

South

for

value

Financial

& Gernon,
Salle; Street.
Mr.
Larson was previously with C. S.
Brown & Co., Link, Gorman &
Co., and Case, Bosch & Co,
208

purpose

the

in

loan

lower

23 .West- Tenth Street.-

pany,

/;■;

apartments

ner

the
a

with

Park

in the amount of

Assuming this

The

has

The property has a
frontage of
approximately 204 feet on Central

was

to

Chronicle)

sociated with II, O. Peet & Com¬

the

interesting to note that
at the time the original mortgage
bond issue
was
placed on this
property in the amount of $9,400,000, the land and building
were appraised at
$14,250,445 by

tion

Edwin H.

of

It is also

this

'the

than

property.

of

announced

that

another

idea

changes. Mr. Prosser was former¬
ly associated with Apgar, Daniels

has

value

note

interest

the

The New York Stock

Mutual's

financing. The fact that they were
willing to take a lower rate of in¬

Salle Street, members of the New
York
and
Chicago
Stock
Ex¬

&

the

above,

Larson

zation.

Hicks & Price Staff
CHICAGO,

loan

as

taken by the Aetna was at

Avenue

$2,754,580
by the Aetna
Life Insurance Co. expires in 1950
The

and

(Special

(Special

CHICAGO, ILL.

Financial

Gibson, formerly with Harris, UpCompany, has become as¬

...

property at $5,000,000 when they
took the mortgage.
;

A

'

Edward Prosser Joins

appraisal

basis

indicate the

apartment

at

same

would

Park

First Mortgage
Bond Issue With Own¬
Members St, Louis Stock

a

150,000, compared to $7,500,000 in
1939.
However, at the current
market of the securities, it is pos¬
sible to buy into this property at
the low figure of $2,754,580, com¬

SAINT LOUIS

■

this

senting
of the

Newark

the

on

The

(Special to

con¬

have concluded that the second mortgage

we

Ave¬

ham &

with

formerly
Co., Inc.

I:-.'

bonds of the

bond

Firemen's

G.

was

Carter

Chas. A. Day. &

thought in mind, the writer has investigated a great
real estate bond issues that also carry a share of the equity
ownership with them.
•
^ : :

are

NEWARK

Fred

—

Mr,,

many

After

Ft. Worth-Houston-San Antonio

own.

Baltimore

KANSAS CITY, MO.—James E.

Inc., 89 Broad Street.

With this

texas

dallas,

MASS.

:

Trust Funds,

inflationary period, real estate has often been

an

sidered desirable to
Southwestern Securities

on

Speculation In Bond And

Real Estate Ownership

Dallas Ry. & Ter. 6% ,1951

us

BOSTON,

/

Carter has become affiliated with

Great Southern Life Ins. Co.

All Texas

1012

nue.

(Special to

(Special to The Financial Chronicle)

Check

Inc.,

pany,

Distributors, Inc.,

Ill Devonshire Street.

Dr. Pepper

Republic Insurance

'

KANSAS CITY, MO. — Nelson
B. Good, Lois DeV.
Gray, Cecil E.

llaoul Lu-

to

■;

(Special to Th). Financial Chronicle)

.;

Chronicle)

—

added

:

&

Lehman

BOSTON, MASS.

—

Manager for Guaranty Underwrit¬

Bros., is now
Newburger, Loeb
Co., 40 Wall Street, in their
Sales Department.

DALLAS

—

Chronicle)

YORK, N. Y._Casper G.

(Special

Bought

Financial

&

Teletype NY 1-592

Telephone HAnover 2-2100

column.

The

associated with

New York

41 Broad Street

CHICAGO

V Detroit

to

Seligman, Lubetkin & Co.

A-CALLYN^COMEANY
•-<

this

in

(Special

to your
personnel, please
of the Financial Chronicle for pub¬

had
One

St.

Petersburg and
Seattle, and both
pleasantly surprised to learn
in

that they were the
possessors of
$21,000 worth of certificates they
had
It

long since thought valueless.
can be
safely estimated that
than

more

lying
in

a

billion

dormant

the

form

of

in

dollars

this

are

country

unclaimed

bank

deposits,
stock

insurance,
stock
and
dividends, inheritances and

other types of dormant assets too
numerous

to mention.

*

:

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4118

156

1429

prices ..a Jot. lower. than .they
are today..
J .-" '
/ *" /I*
1 $
• ' 7 '** *'
!

Tomorrow's Markets

There

are

shorts

some

in

Defaulted Railroad Bonds

the market but most of them

small

are

Waiter Whyte

with

ones

ten¬

a

Aldred Investment

dency to run on the first
bulge,~ So their supporting ef¬

Says—

fect

on any declining market
probably be negligible.
.*•'» •'.'•''1 ■
The question has come up

5

-

Canadian Pacific

will

"

•

•

•

PFLUGFELDER, BAMPTON & RUST
Members

•

,

to

as

yesterday's big opening.
WALTER

By

The word is

I

WHYTE

r

out that

now

the minor decline of the latter

of last week and the
slight further market shading
part

of this

marks off the end

one

of the, technical
from

one

61

con¬

The

or

as a

with

I'm

a

If I think

one
a

or

suddenly

shot

the

market

Even

Tuesday

up

afternoon.

holding

sR

v

bull

in

much money

for

on

severe

As

sje

Everything
market

was

off to the

was

The

nice.

In

who

right in
er's

......

room

and

;

:

-

*

■

*

■'

,v

All this leaves

'■

#

me

cold.

If

stepping on each
other's heels to buy stocks it
simply is another reason for
me
to feel anything but op¬
people

are

:

timistic.

Up to last Tuesday every¬
body could see that the mar¬
ket

was

dull

on

picked up whenever
prices showed a tendency to
go up. That this helped along
the feeling of bullishness was
easy to see.
But yesterday,
after the flash opening, activ¬
but

on

the down side.

*

*

This doesn't
ket will go

mean

being

were

First

blanket

compensate
for the earning power being sac¬

few' stocks

the

mar¬

or¬




Bulletin

current

roads

these

from

bond market.

coupon

SEABOARD AIR LINE

offer

to

able

of

bonds

at substantial concessions

RAILWAY COMPANY

;:

WALL

1

STREET,

WHitehall 8-3450

All

YORK

NEW

by holders of the old di¬
visional, for the extension of ma¬
turity dates being demanded of
the old divisionals, and for the!

MINNEAPOLIS &

lowering of interest rates in many

—

Sold

Quoted

—

ST. LOUIS RAILROAD

instances.

The

did

NEW YORK

were

value

in

^

the

way

value

added

might

capitalization that had originally
been designed as depression proof|

W.I,

1932

Central

Iowa

lie

1951

&

Moines

Des

Fort

First Mort¬
gage would enjoy greater market¬
ability.. Any student of railroad
bonds, however, knew that the
the

larger

new

investment merit of the

bonds

that

and

the

of the

factor

sinking fund provided in

modest

the plan

Frederic H. Hatch & Co.
Incorporated

/

/

It had been

that

the

V.L.-

y

expected, therefore,
give

Commission would

weight • to- the - opinion of the
cour.t, and provide better treat¬
ment for the old New Haven liens

of. the

its

type of the Housatonic 5s

Central New

revised

England 4s;

plan the

In

Commission

.interest

Refunding

&

First

the

proposed

fixed;

new

Bell Teletype NY

$136,959,000 and new fixed
interest
to
$5,326,000 compared
with roundly $152,000,000 and
$6,-j
420,000, respectively, contemplated'
in the original plan. Filing ,pf the;

York, N. Y.

New

Wall Street

63

1-897

revised
the principal of the
bonds. With the aggregate amount
of

as

claims thus reduced there had

belief

a

that

the

in

many

claims

junior

quarters

is

(that

bonds that had not received their

in

value

fixed

new

interest

plan had

fect

treatment*

and

of-maturity, and, in some
instances, reduction in interest

,

debt to

divisional did not detract

strong

old

reduced

lack of market interest in a small

from the

fixed

new

Mortgage, the Commission merely;

1935

fund for the new bonds or the fact

that

the

by

Dodge 4s

of

cations

bonds to holders of bonds secured

1938

4s

Central

'nwa

establishment of a sinking

5s

Instead of granting larger allo¬

;

Minneapolis & St. Louis 5s 1934
Minneapolis & St. Louis 4s 1949
Minneapolis & St. Louis 5s 1962

commenting

in

2nd 4s,

& St. Louis 6s

Minneapolis

First

blanket

new

& St. Louis New

Minn.

added

of

elements

bonds

mortgage
the

(in reorganization)

the

leave

finding by the ICC that

a

there ™

in the

72 WALL .STREET

r

,

court

for

open

7

event current market action is

for

Request

on

Bought

Van Tuyl & Abbe

zation.

anything but; conducive
new purchases.

Issues

Teletype: NY 1-2050

rificed

divisionals.

is

Available

LEROY A. STRASBURGER & GO.

naturally important. The
longer it takes for the market
to get down to the 110 level
(or an approximation of it)
the stronger will be the sub¬
sequent rise. \ But in any

time

most

on

securities

only

revision)
sion

ones

imum

fixed interest capital¬

new

in its original plan

ization

and it

expected that the revised plan
would provide at least as large a
new fixed interest debt.
If so, the

was

debt released by

amount of fixed

payment of accrued interest
logically be distrib¬
uted to the remaining claims. The

the

failed to. give this recognition to
the claims of holders of the old

in cash would

divisionals, finding, on! the con¬
trary, that there were added ele¬

Commission

New Eng-j

which were;

bonds

but had little repercus-:

the rest of the

on

Haven

New

to benefit from the

tion market.

reorganiza-i

Speculators are ap-t'

parently continuing in their be-7
lief

that

mission

the
in

action

the

of

New

does not establish

The Commission had set a max¬

sobering ef¬

a
the

(except for

Railroad

land
the

of

the

Com¬

Haven

case;

precedent. In
particular, market action of th^
Rock Island-' issues, some of th4
a

'Frisco liens and the Missouri Pa¬
cific

First

&

Refunding 5s indi¬

cates that the

general speculative
continues of the opinion

public

that the

possibility of rejection of
existing plans ('Frisco has already
been
rejected), and subsequent
settlement
of
some
strong outr
standing claims in cash carries the
potentiality
Of
correspondingly
•

As of last
you

still hold

night the stocks
were as follows-

Air Reduction

bought at 30,

half

profits taken at 35, is now
about 37 and a high fraction.
Last week's stop was 34. Raise
it

now

"

to 35.

•'*

.

to the market

was apparent in the
drop of 11 points in quotations for

the

Housatonic

course

of

one

bonds

in

the

bonds
was

was

a

another

Crane,

or

at

12,

was

better (see

was

even

As

to

were

interest

authorized.

on

the

invite inquiries
blocks or odd lots of

brokers
on

Defaulted RR Bond Indext

a

we

The defaulted railroad bond in¬

6s/35 Bonds & Ctfs.

Oct.

21

price—

'

SEABOARD AIR LINE
1st

4s,

'50,

Bonds

Coupon
&

&

Now

Registered

Burnside, Cooper Co.

The firm

Certificates

name

of

Nickle, Crone

&

SEABOARD AIR LINE
Consol.

6s/45

Bonds

Ctfs.

&

In the

the senior mortgage is¬
paid off. In the original
reorganization' plan this accrued
interest had,. received, the ^amf

low—14%.;

74.

SEABOARD ALL FLORIDA

Subse¬

the

on

was

utilized

conservative

44:

of

last authorization the full accrued

sues

be

more

HIGHEST GRADE RAILS

of

interest

still

We also maintain net markets in

original ICC plan,
interest payments on ac¬

old bonds

should

balances

make

aspect

large

bought

re¬

distinct

count

to be sold at 14

liberal treatment of the

of Pflqgfelder,
Bampton &
Rust, 61
Broadway, New York
City, shows the following range
for Jan. 1, 1939, to. date: high—

quent to rejection by the District

accrued

more

maining claims.

large earnings and thus large cash

mission towards the claims of the

of

brought

dex

While -the attitude of the Com¬

Court

on

week.

whole.

£

the theory that the for¬

ahead

tuitous circumstances that

23, half profit's taken at 26, is
greater import to the reorganiza¬
now about 27. The stop of 24
tion market as a

►

apparently did not
quite that way, but went

that compensated for
the proposed sacrifices. The shock

Chalmers, bought at shock, there

now

it

see

ments of value in the new blanket

mortgage

divisional

Allis

right under the present last week's column)." During
marke't.. But let these orders Tuesday afternoon's hectic
be filled gn^d, .you, will ££§

ders

Reorganization

bonds) would receive more liberal
treatment in the revised reorgani¬

of

element

Toronto

Progress and Earnings

rates asked of the old New Haven

The

-

1-395

Hr-

full

'

be raised to 24 Vz.

public

generally

are

registered

The

First Mortgage to

"

NY

Montreal

Lehigh Valley

record did not show any evidence

new

-

Southern Pacific, etc.
We

record.

the

'

Lackawanna

not

of added elements of value in the

-

HAnover 2-0980

Y.

Teletype

New York

Illinois Central

new

was

Bell

most

New York Central

extin¬

the

Mortgage

supportable on

too

in

claim

old

the

of

in

particularly obligations of

guished. It was contended, there¬
fore, that allocation of even 100%

that

right down from given last week should

too many

that

trading markets

the medium-priced Rail Bonds.

divi-

of the situation which

#

that it will break wide open.
are

old

of

tension

110.

present levels, or if it does,
There

the

as

net

maintain

New
large

power

sionals

ity began to increase not on
the up

as

WILLIAM ST., N.

52

We

been

sell-offs and

volume

HART SMITH & CO.

1

/

for the new-New Haven
First Mortgage did not compen¬
sate for. loss of earning power, ex¬

& Co's custom¬
I can see it hap¬

pening!!"
\V

am

the

did

earning

races

claimed: "I

mortgage of
not have

blanket

Haven

are off from their openings.
again and people were jam¬ The
averages will probably
ming order room windows to show
a;figure of 116 during
place orders. Whether or not the day. I don't believe the
this was actually happening I
116 figure will be bettered by
don't know.
I'm just repeat¬
much, if at all. Instead, I now
ing the messages I received look for a reaction which will
from enthusiastic telephone
take industrials back to under

callers

————:

plan<£

jected to the treatment accorded
various divisional liens, on the
basis
that
the
new
proposed

writing this the
has
gotten duller.
a

original

the

rejecting

Sun Life Assurance

Judge Hincks had specifically ob¬

has been lost in
through swings

Here and there

>

The original plan had been rejected by the

with the District Court.

I'm

market

'

'73

Quebec Pulp & Paper Pfd.

by the Interstate Commerce Commission

District court almost a year ago, in December, 1941.

make

approximately 116.

'63,

1956,

Imperial Oil Ltd.

shock last week when the revised plan of reorganization for

New Haven was filed

the

*On the next day's opening,
nicians call "technical correc¬
Wednesday, prices opened tions."
During technical re¬
still higher. In fact the Dow
actions I'd rather be out of
averages
which closed the stocks than be
sitting there
previous
night
at
115.22 with a hatful
biting my nails
opened Wednesday at 115.57, and
phoning everyone I knew
a
gain of some 30-odd cents.
asking them what they
And in the next.20 minutes
•thought of the market.
added another 30c '
to

Paper All Issues

Light, Heat & Power

Distillers, Seagram Ltd.
community, or at least that large section of it whose
interest has centered on the reorganization railroad list, had a rather

to overlook what tech¬

me

6s,.1944

SECURITIES

REORGANIZATION

The financial

mar¬

markets

International Hydro-EIec.
Minnesota & Ont.

Bell Teletype—NY 1-310

•

Canadian Bank Stocks

.

intensified when

.

Railway

1951, 4l/2s, I960

s

Brazil Traction Lt. Pr. Com.

trader.

the

Exchange

3s

thing—profits.

stock,

Stock

1945, 3 Yi

Montreal

feeling that has. already
ket, indicates an up move I
gained a lot of new adherents.- advise readers
accordingly.
Brokerage house market let¬ When certain indications be¬
ters,
market services
and
gin appearing showing what
others are seemingly now of
I believe is a top I recom¬
one
opinion.
mend profit taking. The fact
Jjs
#
i'fi
that the basic trend may still
Get aboard before the band
be up has nothing to do with
wagon
starts rolling.
This
my decision.
bullish sentiment was further
a

York

3s

New York

RAILROAD

trader I'm concerned

only

New

Broadway

Telephone—Dlgby 4-4933

answer is a flat yes. For basic¬
ally the change I saw when
the averages were about 25
points lower and when I rec¬
ommended the purchase
of
stocks, is still present.
But
I'm not an investor (using the
classic interpretation of .the

And

for the market to go—up.

way

It's

only

a

word investor).

reaction, and

there is

now on

not I

bull market.

whether

Top signs increase in spite of
sider this
Tuesday's strong close and

4*/£s, 1967

Brown Co. All Issues

1. h. rothchild &

co.

specialists in rails
11 wall Btreet
HAnover 2-9175

-

-

^

n.y.c.

Tele. NY 1-1293

Co.,

to

Burnside, Cooper & Co., Lim¬

Limited, 30 Pine Street,
New York Citv, has been changed
ited.

Douglas
Crone,
President' of
Nickle; Crone & Co. is now serv¬
ing in the Royal Canadian Air
FQrCp.j. . - i.-j i-jji «>!.;*>.
i.i'
ji
*
■*
.

THE COMMERCIAL & FINANCIAL CHRONICLE

1430

Thursday, October 22, 1942
DIVIDEND NOTICE

Fireman's Fund Ins.

Philadelphia

Bank and

Bank

Home Fire

Insurance

& Marine Ins.

^

and

1

Yorlc

New

Members

other

Stock

leading

WALL ST.

Members

120

exchanges

DIgby

York

New

BROADWAY,

Stock

4-2S2S

Bell

3-6s

Exchange

7-3500'

Teletype—NY

1431

Street,

Phila. 'Phone

1-1248-49

Locust

'L. A. Gibbs, Manager Trading Department)

»

INCORPORATED

3

j

New

York

PH

•

/

ATDirectors ofofthe American
a meeting
the Board of
•

Woolen

This Week

dividend

on

64 New Bond

of $2.00

Street, W. 1

'
,

TOTAL

For the third time in less than two

i

months,

ASSETS

Checks will be mailed.

for

for

the first

time in

brings about

years,

all

Federal

the

tricts.

The

many

uniform rate

a

Dis¬

Reserve

position in
Chicago has been
extremely tight for some months
due largely to the fact that, since
our war effort has gone into
high
gear, more money has been raised
New York

reserve

and

than has been spent in these cen¬
ters.

Apparently

this

tinue to be

a

armament

program

for

will

con¬

characteristic of

considerable

which

our

calls

decentralization

ments

will

the

and that bank deposits,-Tor
the country as a whole, are grow¬

ing at

with 50%

posits

of

banks
were

are
a

they

the
no

year

In

ago.

some

actually lower.

are

uation

large New York
higher than they

in

Chicago is

cases,

The sit¬

CASH

/

DUE PROM BANKS

AND

(In Millions)

Guaranty

City

Continental
First

S.

Chase

1,154

__

1,476

624

-!

AND

,

•

755

t

a

.

DISCOUNTS

Sept, 1941

National.:.

'!

521

%" .578 ;•>

256

(Chicago).

395

r!

Sept. 1941
•"
37'/I •'

.v. ;i:

Chase

National-!

.

figures,

•

City

Continental

:

.

.

38

■

Sept. 1942
•
26<b
24...

V<^3l!;v-27

u_;

111.;

50

36

v .;:v;

28

(Chicago).

First

employed.
the

ployed

banking
more

than

at

any

funds

are

European war,
of most of the

the

earnings assets
large banks have

approximately

doubled.

Loans and discounts

For example, total loans
and investments of the Chase Na¬

cases,

tional Bank

commodities, restrictions on in¬
stalment financing and the liqui¬
dation

of

essential

differ

as

so-called

many

businesses.
to

it

is ;l

from

a

Authorities

the probable trend of

commercial loans
but

non¬

from

probably

this point

immaterial,
standpoint,

banking

directly (through loans) or
indirectly (through investment in
Government bonds).
Apparently
the

banks

mately

obtain

approxi¬

return

same

either

/

way.
It

the

will

probably safe to say that
ordinary commercial loans will
continue to drop but, if the devel¬

opment

of

."revolving

V-loan

financing and

credits"

runs

its

ex¬

pected course, the over-all aggre¬
gate of loans and discounts is al¬
most

bound

to

the

assume

astronomical direction

as

same

the Gov¬

gross,

running at a
very high level.
Net income, as
in
most
other
cases,
is at the
mercy of the tax collector.
Thus
far, at least, the larger banks have
tax

able

to

burdens

Revenue

Bill

absorb

and,
is

the

in

recent

if the pending-

put through

servative tax and
serves,

earnings

months

contingency re¬
for
the
third

favorably
corresponding periods of
year when taxes, as far as
compare

with the
last

the banks

of

amount to a great deal.

hand, and




were

concerned, did not

S.

it

(

A.

19

International H

Oct.

21,

that

bills

and

The

an¬

tenders for

to

tobe

dated

Jan.

mature

%

are

as

i

approximately

0.297%.

Low, 99.905, equivalent rate of
discount approximately

0.376%.
Average, 99.906, equivalent rate
of discount .approximately 0.373%.
;.;v(36% of the amount bid for at
the Tow price was accepted.)
:•
'

There

was

ilar

maturity of

a

sim¬

a

amount of

represents

52

This

vise

a

paper

was

raising it

More next

48.
a

I

Thursday.

views

time

do

not

coincide

Chronicle.

this

in

necessarily at
with

They

those

any

of

tht

presented
those of the author only.]
are

P.

Briggs &
take

Briggs

of

Henry

P.

Company, Boston," will

Major in the Army Spe¬
Corps' and assigned to the
a

Operations
Department

Division

of

General

Washington.
Major
in

the

war

served

Wai;

Staff

:

Briggs

last

the

in

"

Captain .and
Adjutant of the 302nd Infantry.

$500,000,000 in view of the fact

that maturities

over

the next

sev¬

eral weeks

approximate $350,000,However, the rise gives the
Treasury an additional $50,000,000 in "new money" each week.
the

past; five - weeks the bill

offering has.been $400,000,000 and,
since maturities
"new

money"

$100,000,000

,

were $300,000,000,
amounted to only

each

week.

The

New

York

of Se¬

Society

Analysts,
Inc.
announce
that R. E. Woodruff, President of
the Erie Railroad, will speak at
their luncheon meeting on Friday,
Oct.

at Block

23

Hall,

12:30

p.rm

"Mr. Woodruff will discuss the
sition

of

the

usual

will

Railroad.

continued'

as

by his partner, C. Graham

Hurl bur t.

the drawn
Dec.

bend3 will

'

eease

on

after——

The announcement

1, 1942.

further
:■

says:';>

;/•

"The Government of the French

Republic

is

notifying

drawn

bonds

holders of

that

payment

will be made either upon

present '
Morgail

.

.

& Co., Inc., in United States dol->
lars, or upon presentation at the

of

office

Messrs.

Morgan & Cie,
France,, in
the
French franc equivalent of the
dollar amounts specified.
:

Chatel-Guyon,

"In

order

to

comply with the

decrees of the French Government
dated July 16, 1935 and Aug. 25,:
1937, the bonds drawn for redemp¬
tion, and coupons' maturing on

reorganized

•

payment
which

at

Phillips,
Raynolds

the

Oct

paint
the

President

the

21,

was

of

will

E. S.

Devoe

discuss

industry, during

war.

(a)
to

Bonds

indicate

beneficial

ownership
at 105%, and
which are .similarly
stamped will be paid at the face
amount;, (b)
Bonds which are
stamped to .indicate French own¬
ership, and unstamped bonds, will
be subject to a deduction of 10%;
will

be

of

the

issue

redeemed

difference

price

and

between

the

the

redemption

price (a deduction of 1.1% of the
principal amount), when in the
ownership, French or foreign, of
others than-individuals.
Coupons
which
are
stamped to indicate
French ownership, and unstamped
coupons, will be subject to a de¬
duction, of
10%
of- the
face
amount, when in the ownership,
French or foreign, of others than
;
individuals."

Erie

Association's

meeting

who

stamped

Attractive Outlook

.

Wednesday,

luncheon

follows:

as

are

coupons

The
On

as

be

Street, New York City. Interest

po¬

&

,

Business

re¬

to

speaker

overseas

be

non-French

curity,

leave of absence from the
business.
He has been commis¬
cialist

in

N. Y. Analysts To Meet

a

sioned

21

as

Henry Briggs Is A Major

will

Dec.; 1,-1942, will be redeemed by

■

Henry

Oct.

on

bonds

$351,862,000.
The
Treasury decided to in¬
crease its weekly offering of bills

For

Whyte

expressed

bills

of

000.

point to 49.

—Walter
[The

ad¬

now

issue

drawn

tation of the bonds to J. P.

High, 99.925, equivalent rate of

bought at 43, half sold at 50,
about

"

redemption date, in United States
dollars, at the office of the sink¬
ing fund administrators, 23 Wall

the

-

Total applied for; $984,842,000.

is

now

ex- ;

deemed and paid on and after the

20,
1943, which,, were offered on Oct.
16, were opened on Oct. 19.

discount

ster,

a r, v e

Republic

1924 25-year: sink¬

demption on-,Dec. 1, 1942 at 105%i

thereabout, of 91-

or

day .Treasury

v;

accepted the

sink-;

1, 1949, issued under loan contract
dated Nov. 22, 1924, that $3,992,500 ;

;

Treasury. Department

The

;

14

as

Oct. 14
Govern¬

on

the

ing fund 7% gold bonds due Dec.

.Total accepted, $505,072,000.
Range of accepted bids:

reached

loan of

ternal

Treasury
Offering

Bill

follows:

!

You should have

and for the first

greatly enlarged with the growth
one

ac¬

After ultra-con¬

years.

quarter of 1942

the

trading"

higher

cording to the specifications now
indicated, they should have no
difficulty in continuing to earn
about as much as they have been

nine

on

income

now

ernment

deposits,

Says——.

irticle
.say,

U.

holders :of

ment of the French

C.

Result Of

Walter Whyte ;.-

,

at

debt.
For the duration,
least, the banking industry will
hereafter be operating "at capac¬
ity" and its capacity will also be

latter issue of our. paper.

Tomorrow's Markets

.

Needless, to

as well
which featured

meeting, will be given in de-*

of

been

is

several reports

Harvester

$1.6 billions in the summer
1939; Guaranty Trust now has
earnings assets of more than $2
billions
versus
$1.1
billion
in
1939; for National City,, the fig¬
ures are $2.3 billions versus
$1.2
billion.
(• V

notified

principal anioiint of ' thbse bond^
have been drawn by lot for re-,

of

aggregate

with

of the banks is

address

compared

and
mortgages)
now
nearly $3 billions as

whether their money is to be util¬
ized

annual

profit on
the remaining half of almost
10 points. Last week's stop on

(excluding real estate

the

& Co. Inc.,

ing fund administrators,

these

"VrV-

E.

Street,

UThe details of this issue

In fact, since the

outbreak

in

OFFICES:

throughout

various

-

actively em¬
time during

the past decade.
of

the

the

(Continued from page 1429)

obvious,; from the above

that
being

now

J. P. Morgan

investors,

Agency arrangements with Banks

nounced-Oct.

26

* It! is

of

389

PER CENT OF DEPOSITS IN CASH w./l

i.

to

interested

trkasureb

Redeem Part of French 7s

:y 47 Berkeley Square, W. 1

•

$500,000,000,

a

service

Thrcadneedle

29

dent, Jay N.
Whipple & Co., Chicago,

tail in

in

'v.

LONDON

?

258

■

banking

and, travellers

countries.

m

,

.

over

efficient

traders

unselfish

and the inaugu¬
incoming Presi¬
Whipple of Bacon,

the

September 24, 1942

the oldest
With

Australia,

and

ral address of the

as

of

Zealand, Fiji; Papua and New Guinea,
London, it offers the most complete'

with

President Fleek,

487

.

621

111..

,' ; v

Sept. 1942
$809

$773

■

!

;

1,134

433. "

States

unity' and' by
and respect for

remarks

speakers,

1,485

all

in

and

common : sacrifices, > gladly
made, to help win the war.";

$1,797

City
111,!

New

-

The

of New South Wales Is

national

appreciation

at -tha

Secretary.

George Street, SYDNEY

largest bank in Australasia.

brought

the

record

1942.

standing. Common Stock, payable on November
2, -1942, to stockholders Of record on October 15,
1942. The transfer books will not "close, r

Manager

branches

*

an

419

<

all

are

by

our

HOLDINGS '

1,158

Continental.

s

for

514

Sept. 1942

,

Win Millions);;

First'

desire

793

$1,339

(Chicago)_

Chase

we

together

Sept. 1941

LOANS

''for

closer

463

_

Continental

.

added,

Sept. 1942

£150,939,354

and

said;
result," he

natural

a

818

National..™

National

is

$946

GOVERNMENT

Guaranty

"This
•

•

of

5.

The Board of DirecLors has declared a
regular
quarterly dividend of 50(1 per share on the out-

30th

870

Commis¬

interests

Office:

The Bank

investment bankers,: he

925

__

.(Chicago.)
U.

-

mutual

November

Tiros. A. CLARK

clearly that

more

>! 572

IU,„,

(In Millions)

bf

have, in most
actually been falling, due to
priorities and the rationing of

Head

made

also

business

PRODUCTS CORPORATION

DAVIDSON, K.B.E.,

General

Govern¬

Exchange

realize

had

has

War

909

$1,328
V-

_!

National

V".

Sept. 1941

National!.!

Chase

the

ALFRED

SIR

in

elements

selling

they

National

say, this expansion is en¬
tirely attributable to the step-up
holdings of Government bonds.

all

of
on

and

sioners

»—" r-

"" *•

Guaranty

in

Aggregate
Assets
/Sept., 1941

the

saying that a - unified
has resulted from the

business

of

and'

on
the^
194'A has

NATIONAL DISTILLERS

8,780,000

£23,716(000

'V

v

business, Mr. Fleek in¬

concentration
the

Liability of Prop.

-!•';'/i-!"-v

in

industry

Chicago banks during

the, past year:

deposits may not
rise as rapidly in New York and
Chicago as elsewhere, the easier
Preserve requirements will permit

to

dicated

share

SANFORD B. WHITE,

£8,780,000
6,150,000

Fund

Reserve

ha&

to

been declared to stockholders
close

!

dollar

one

1817)

Capital

Reserve

'

-

two largest

City

less

securities

' :

finance

benefits

curities

"—.A™.

Already, according to
Sept.
30,
1942, earnings assets have
been considerably enlarged. Need¬

without

been

principal asset items for the three
largest New York banks and the

Guaranty

condition statements of

not

peace¬

bonds.

National

substantial increase in funds

(ESTABLISHED

i;Paid-Up

Commissioners and the Se¬

there and partly

a

industry to

time production."
The work on war

they

more

sentative of the general hanking,
trend, partly because there are
not so many large banks located

year ago.
Even though

of

State

:

tionately more
being handled in the Chicago dis¬
trict.
Bank deposits in Chicago
have increased about 10% over a

conversion

;

Quarterly dividend No. 97 of
seventy-five cents
($1.75)
per

*

the post-war,

ment

repre¬

because propor¬
defense work is

in

HARVESTER

COMPANY

NEW SOUTH WALES

period of world rehabilitation and

number of years,
of their funds

a

vital role

'

preferred stock/ payable December 1,

BANK OF

our-

big banks since. Pearl Harbpr; The
following tables show the shift in

First

more

or

its

v?

INTERNATIONAL

machinery needs to be maintained

banks

as

indispensable function in

■

Ltd.

Australia and New Zealand

national economy and its efficient

changes that have already taken
place in the balance sheets of. the

unprecedented rate, de-^

an

The

Bank,

CONNETT,

Glyn Mills & Co.

and post-war periods, Mr.
said.
"Investment banking

Fleek

for

Deacon's

F. S.

V:Treasurer '

October 21, 1942.

war

is in

in cash and short-term
paper.
It is interesting to observe the

dispersion of manufacturing
activities..;
.'y'.-v.-'---.

apace

other.

longer idle along-,

have done for

and

Despite the fact that bank credit
expansion has been
proceeding

the

on

no

Williams

(Continued from first page)
IBA, has a patriotic duty to simply
keep going so as to be in existence
and ready to function throughout

requirements
on demand deposits have been lowered at the
principal money cen¬
ters, New York and Chicago. This action has been quite in line with
the expectations of most monetary authorities in view of the neces¬
sity for increasing the supply of investment money available to the
large metropolitan banks. The latest cut (to 20%) in New York and
Chicago places them on a par with
the other large Reserve centers the lowering of reserve
require¬
and,

i-"'
a

Associated Banks:'

reserve

the Preferred Stock '

share on account of
arrears
was
declared, payable !
November 17, 1942 to stockhold¬
ers'of record November 2, 1942.
Transfer books will not close.

2-2280

257

Conference

a

a

IBA War Finance

Bank Stocks

—

Company held today,

Burlington Gardens, W.t

^

£98,263,226

Bank and Insurance Slocks

Ave., New York, N.Y.

.

Charing Cross, S. W. 1

Phone.j

HAnover

Teletype

225 Fourth

Bishopsgate, E. C. 2

49

Philadelphia

1477

OFFICES:

8 fVest Smithfield, E. C.

2039, Pfd. & Common

Chestnut

COMPANY

throughout Scotland

LONDON

H.N.NASH&CO.i

NEW YORK CITY

Telephone: BArclay

NEW YORK

Telephone

-

Laird, Bissell & Meeds

Exchange

OFFICE—Edinburgh

!

Lives etc. j

on

/

American Woolen

HEAD

Branches

Philadelphia National Bank
Phila. Transportation Co.

Unlisted Issues

i/LcilOCi^en&Co.

f

-

Girard Trust Co.

Penna. Co. for Ins.

1

■

.

.

Incorporated by Royal Charter 1727

Fidelity-Phila. Trust Co.

Inquiries invited in all

Bought—Sold—Quoted

Royal Bank of Scotland

Stocks

Central-Penn National Bank

Stocks

Occidental Ins.

i

and

the

after

earnings

outlook

for

the

40 Wall Street

Building, Incorpo-rated, is particularly attractive at
the present time according to an
analysis issued by Seligman, Lu^
betkin & Co.,
New
had

York

from

Inc., 41 Broad Street,
City. Copies may be

Seligman, Lubetkin &

Co, upon request.

,

Volume

Sees

The Securities Salesman's Corner

s

BUSINESS

A PLAN TO BUILD UP YOUR

NATIONAL SECURITIES SERIES

Raise War Billions

Jerre

to

of

W.

Low-priced Bond Series
Income Series
Low-priced Common Stock Series
International Series

Preferred Stock Series

of

computations

Crawford

R.

Bond Series

.

,

According

/

j

Lottery Way To

»

.i

1431

CHRONICLE

THE COMMERCIAL & FINANCIAL

Number 4118

156

F.
.

Churchman

Co., Indianapolis,
Ind., "The easiest, surest, quick¬
est-and most painless way of rais¬
ing the countless billions of dol¬
lars appropriated by our National
Congress to finance the present

(Part One)
.

Build

,

.

who

man

a

&

reputation for yourself! This has been the advice of every
made a success in any line of business. Every year

ever

FIRST MUTUAL TRUST FUND

COMMODITY CORPORATION-capitalstock

:'are| expended upon advertising by the
organizations. From such staples as break¬
fast foods and cigarettes to luxurious Cadillac, cars .the. pages of our emergency, together with all the
papers and magazines, and our, radios, constantly pound away at one (past "fand-; present whims of the
major theme—a good name, reputation. The success of this policy is j NeW heal, is.to legalize, establish
obvious by the results obtained.
|a .
\ .',( ' . \
" ... 7,.//
and (operate a National Lottery,
Probably no field of business endeavor offers a better opportu¬
with • 52
hundreds" of millions of dollars

nation's greatest business

dealing

nity for building up a reputation'for good service and fair
than the business of merchandising investment securities.

-weekly

:

To say

done

rather,

one

we

buying from you instead of your selling them.
(./
What does a national advertiser do when he starts

out to develop
is to make a survey of his market.
The second step consists of picking out the type of people who would
be most interested in his product. ; Take the example of the automo¬
bile. One manufacturer stresses low cost of operation, and utility, an¬
other goes into the higher price field. Both have selected their mar¬
kets and they stick to the appeal and the product which eventually

his business?

One of the first steps!

legally and illeg¬
Ed.

.."Figuring

tive

brings them success. This is nothing more than specialization drawn
out to its most efficient point
,
,
Now let's apply this principle to the securities business. For in¬

ultra

on an

conserva¬

United States would buy,

Tickets at

tery

per

an

buyer

one

who have never been told
opportunities that do exist in the over-the-coun-

imagined by thousands of investors •

ever

of the

the real story

-

•-

•

•

-

•

Nominating Committee

The

of

of

Traders Association
New York, Inc., has submitted

following tentative list
of
nominations for the year 1943: President: B. Winthrop Pizzini,

been

issued

A.

G.

by

form,

for'the War,

pay

,

sale of

$6,760,000,000-—25% in prizes—tax
free, both Stgte and Federal, there
would be available $32,500,000 for

prizes each week."
No.

•

William
Hemphill, Noyes & Co.
»Treasurer:
George V. Leone,
Frank C. Masterson Co.
Secretary: John S. French, A. C.
Second Vice-President:

1.

500

7"

l

$500,000
400,000

400
300

(■

.

7/'7;(..i; ..77;

'

"

1

:

7:v

200,000

i

100

100,000

/' .■•7.(95-

2 /;

l'

/
V

••

.V.

7

Saxton &

f

...

Financial

.520,000

540,000

55

550,000

•'

,777 77 540,000'

35

.-

15

•

--v/'

40

7.

14

520,000

490,000

:

30

450,000

'

(7

•

400,000

25
'

17

20

la

upon

.:7v -. .'!

-

10

1,045,000

9

1,035,000

8.5

1,020,000

120

.

7

-

"/,/
'•'4

140

:

■

-7 7-

7

7

'■

Inc.

Allyn & Co.,
'

Three Directors

WIS. —George

-

for Two Years:

F. Neuman has become

100,
./'"

165

-

i

170

.;.

;

:.

1500

:

r-/

Wauwatosa.

nates:

phy,

Delegates—Cyril M. Mur¬

Hunter, Hunter &
Henry
Pflugfelder,

Wm.

jpflugfelder,

Bampton

&

Rust.

Alternates—George Kranz, Amott,
Baker & Co.;

King

&

Charles King, Chas.

Harold

Co.;

B.

Smith,

The annual

will be

held

meeting and election

on

Dec. 4 at the Pro¬

Exchange Luncheon Club.




7v "

525,000

7(

?•":

7-

;

•

2,000,000

1.5

■■7."
•

■

3,000,000

■' l

3,000,000

9789 Prizes
-'Taxfree

"

3,600,000

2.5
7 .2

y

,

*$32,500,000

weekly

prizes.

,(• /■/

Merrill
7,

(Special

to The

.MIAMI,
Whitehead
with
ner

Lynch, Pierce

Street.

Mr.

Pierce, FenEast

Whitehead

Flagler
was

Danielson Federal Savings

Loan

Association,

84

Main

S. Street,-. Danielson, Conn., will be

has become associated

169

( The
and

FLA. —Clinton

Beane,

*

re¬

glad

■

to

send

Savings
which

a

on

booklet and

&

insured

Loan

offer,

the

in

Atwill & Co. and in the past was
associated with Fenner & Beane.

safety

and

full

investments,

association

vestment.
of 3%

•

liberal

de¬

return

on

in¬

Current dividend rate

per annum.

-

... .

y

.

increased

on

at

111.84

Average

change,

net

no

June

on

10,

30./7.(;y\7d7d"Y'77\.
elimina¬

/Portfolio additions and
tions

;

During the month of September
common stock holdings of the

the

American

folio

Business

were

Shares

increased

port¬
64.2%

to

from 55.7%. Bonds were increased

(Continued

.

1439)

on page

;

$10.39 on June 30 to $10.83

Sept.

Keystone

77

during the quarter were as

Atlantic
Coast Line Coll. 4s, 1952, Empire
Gas
&
Fuel
Deb. 3V2S,
1962.
Southern
Pacific
1st
4s,
1955.
Weste'rh Union 5s, I960, Wisconsin
Central
1st
4s,
1949, Guaranty
Additions

follows:

—

Trust, Lima

Locomotive, and Phil¬

lips Petroleum. Eliminations—At¬
lantic Coast Line 1st 4s, 1952, Bal¬

4% Notes, 1944,
Associated Telephone $1.25 Pfd.,
timore

&

Ohio

Oil of California.

Federal

Co. clares,- unusual opportunities for

Prior thereto he was a partner

from

and Standard

particulars

,

.

With Liberal Return

Financial Chronicle)

Merrill Lynch,
&

With

cently with John Nuveen &

Sweetser & Co.

duce

Clinton Whitehead

Legg & Co.;
A.-Larkin, Goodbody'&

Co.; Wellington

■

660,000

595,000

y*

-

.

Insured Investment

Mackubin,

Thomas

Co.;

;

Delegates and Three Alter¬

2000

'y 3

•■••7

.

3000

4

Four

7;7 (

.

3.5

-7-7'

-

/

1800

Moore, Henry

1

:

.

7' 175

Joseph Nye, Freeman

Co.

4

720,000
1

'

associated

& Co.; Tom with Dalton, Riley & Co., First
Hentz & Co.; L. A, Wisconsin National Bank Build¬
Gibbs, Laird, Bissell & Meeds.
ing, Milwaukee, Wis.
Mr. Neu¬
Two Trustees for Gratuity Fund:
man for many years has conducted
Charles H. Jann, Estabrook & Co.;
Walter Kennedy, A. M. Kidder & his own investment business in

'■'"•7 7'

-

-

'•

or

1940, and at 111.93 on Oct. 5, 1942.
In comparison, the bid price of
Republic
Investors
shares rose

$4,914,000 on last June 30
to $5,335,000 on Sept. 30.
Shares
outstanding gained 19,460 during
the quarter and the liquidating
value
of
each
share increased

825,000

14

virtually

standing

from

'775,000

4.5

-

showed

Putnam Fund re¬

ports total net resources

,:';
■

.

Industrial

Dow-Jones

supply,

'4:

■■

George

945,000-

-.7 '

5.5

'5

sidewise

a

the

income."
&

■a;.-

The

•

WAUWATOSA,

our

market

<

7 *■" 7.7 '77- 870,000

(77 6
"

155

"in

ability of
management is tested."
During
this more-than-two-year span the

contrasted with

910,000

6.5

.

145

...

7.5

particular period was se¬
because

declining

projected

the national

'77,: .77-1,000,000.
>'
975,000

"7.-7 v7j( 8

V

135-/

Chronicle)

190,000

77" 9.5 :■•-:•/

>

115

■

270,000

15

19

110'

-

340,000'

7,

As

5,

purchase of $34,from $2.38 to $2.78, a net gain of
000,000,000 of government securi¬
16.8%. In addition, Republic In¬
ties by the commercial banks over
vestors
paid dividends totaling
the next year, it may be noted
6*8 cents during this period, rep¬
that in 1919, the year of greatest
resenting a return of 28,6% on
expenditures (in the first world
the June
10, 1940, bid price of
war, bank purchases amounted to
the shares.
(
>7
$2,000,000,000,\ or about V/z% of,
; '
!<S
i[i
%
this

1

13

money

income.

nual

550,000

7' / 45

•

'

■

150

The

490,000

—

This
lected

This
of

Oct.

through

1940,

10,

1942.

representing an increase in pur¬
chasing power equal to more than
30% of the present national an¬

50

'

'

'

T 2'

/

,

'/>;.■■

GO

10
11

130.

to

$5

9

'

swollen

a

inflation

already

450,000
.7"

70

7v,( ('■ :7';:.:

",v;?8

credit.

further

means

400,000

75
.

June

'

represents a

340,000

("7/.

80

.

6

'

7

panies, has just published a little
folder showing the performance of
its shares during the period from

into the Treas¬

bank

of

creation

190,000
7-7'

85

■

leverage com¬

of these three

one

a

270,000

90

Republic Investors Fund,

interest.

total of
Probably
only about 60% of this total will
will reach
about. $84,000,000,000.
year

gap
that will have to be filled by the

300,000

.

200

.

estimated that gov¬

expenditures in the 1943

ernment
fiscal

*34 SO. SPRING ST.
LOS ANGELES

PL.

of the past.
now

$34,000,000,000,

■

125

(Special

£;>.:/ incorporate^
JERSEY CITY

through taxation and nonbanking purchase of government
securities. - The difference, about

:■

"

/1

"It is

dle'DfsiS^vto rs

EXCHANGE

15

too are

ury

Total

in Thousands

77

George F. Neuman Joins ?
Staff Of Dalton, Riley

Wholes

HUGH W. LONG m

expansion of national debt and
inflation of credit beyond any ex¬

be absorbed back

.

Amount Each

Weekly

Prizes-

•,

(.

K. Porter,
"

the world has ever seen, so

so

perience

"On the estimated gross

Vice-President: James F. request by writing to G. A. Saxton
& Co.
' -V-"
Musson, B. J. Van Ingen & Co.,
•

etc.,

outmoded.

First

IrtC.

PROSPECTON REQUEST

the

3 ;

be had

may

will

military operations anything that

to. foreign

.

quick that income taxes would be

comparative figures, arranged in
tabular

30

the be¬

war

countries,

would

IG.

W. Pizzini & Co.

present

prove

■

quotations, price range, dividend
information and other interesting

the

that

lief

after

give ah annual income that

would

MA

current eco¬

our

to have been an exception.
Indeed, just as this global war
exceeds in the magnitude of its

.sale

plqs

Co., Inc., 70 Pine Street, New York
City. The "Guide" which contains

v

.

hand

on

drawings and, last, but not least,

of "The
Stock Guide'?, has/just

Preferred

period of inflation has fol¬
major war in history.

Certainly there is nothing in the

'

the

B.

the

nomic situation to justify

number

October

The

Security

the

"A

figure, and also plus all

Preferred Stock Guide

List of 1343 Harases
•

of

gross,

—-——

of what it contains:

on

tickets

4

S km Gets Tentative

But it does present a few<e>—

deeply.

simple facts which of themselves
will make the thoughtful stop and
take notice.
Here is a sampling

winning

•

.

same

recommend that you get hold of a copy of Calvin Bullock's
"Perspective" for October.
The bulletin isn't wordy.
It doesn't go into the subject very

estimated

experience we are convinced that there is a very
securities buyers who like to hear about "sleepers."
There are people who like to speculate and despite all the efforts to
take-the speculation out of the securities markets these people still
exist. In fact, it seems again to be our experience that it is less diffi¬
cult to find investors who will gladly listen to a story about an "inter¬
esting speculation" than it is to sell them other types of securities.
Everybody likes to try and get something for nothing—nobody will
admit it!
''•(•<7-"
'.■•■'-.v■ \-.Y.
So why not specialize in sleepers, or in opportunities, or m
special situations, or whatever you wish to call them, it's all the same
thing. A reputation can be established with your custodiers that you
and your firm can be relied upon periodically to bring forward cer¬
tain money making opportunities—and, gentlemen of the order pad
and pencil, if you can ever get to the point where you have estab¬
lished this reputation, you won't have g securities business any more
you'll be the proud possessor of the most pleasant way to make a
living that exists this side of heaven.
Next week we are going to present some of our ideas, (based upon
actual experience) that you can. use to develop your business along

For
people who got tired of hearing
If you, gentle reader, be such a

tired of hearing about inflation.

are

the

lowed every

basis, ..75%

of last

.

one,-we

fundamentals of

From our own

*•

people

weekly 'take,' plus all above the

large group of

' • "/■'

;

about war "scares", in 1938 and 1939.

to

."Allowing the Government,

icr■ nwrkctf' v- •j ^

these lines/

column.)

all.we know, they may be

the National Daily Quotation Service sheets, that each. of population, 130,000,000
business day. Here, in these pink, yellow and green
(1940 census), which, multiplied
sheets repose some of the greatest Opportunities, for business building
we could ever ask for.
This is the investment dealer's market'as> well by 52 -(weeks), gives an/annual
gross
income
of: $6,760,000,000.
as his bread and butter, and better still, here lie some of the most out¬
standing " money making opportunities that exist any where.
Time Drawings weekly.
-777 ,.r(;. • 7
after time we have followed stocks or bonds listed in the pink or
this

necessary

MORE ABOUT INFLATION

to us every

yellow sheets until we have become convinced they were a bargain,
and in many cases the resulting profits have been far greater' than is

control make it

our

the comments contained in the lead-off portion

No doubt many

stance, we have
come

retract

an

than one,

amount, based

of

average

Developments beyond

Note;

to

in Lot¬

copy,

more

that

six; times

on

us

week's

and including maybe four

to

,

$1

of from

average

to

for

basis, the population of the

.

,

Investment Trusts

States, illegally and

both

countries

up

>;Russ Bldg., San Francisco

: :

and is being

privately; it is being done in other

,

New York

120 Broadway,

ally..

/

,

NATIONAL SECURITIES & RESEARCH CORPORATION

each

drawings

been,

request

upon

here, and in most other parts

of the United

would like to offer ,the following constructive plan as
method of achieving that most desirable goal—your; customers';

but

has

It

year.

that this opportunity has been overlooked by many securities, firms
would be putting it mildly. However, it is not our intention to be
critical of the securities business j(there is enough of that anyway)

Prospectuses

7

Custodian Funds
BONDS
-Business Men's Investment Bond Fund

B1

Medium Priced Bond Fund
Low Priced Bond Fund
.......

B2

Speciilative Bond Fund

B4

.

.-.

B3

.

.

PREFERRED STOCKS

Income Preferred Stock Fund

K1

.....

Appreciation Preferred Stock Fund

.

.

K2

.

COMMON STOCKS

Quality Common Stock Fund

.

.

.

.

.

'Income Common Stock Fund

There are only three

American

"leverage" open-end investment
companies in existence today and
because
under present laws no
more
funds of this type can be
created,

the performance of this

exclusive little group is of especial

51
52

Appreciation Common Stock Fund
..... S3
Low Priced Common Stock Fund ......SI
Prospectus

may

he obtained from your dealer or front

Tiie Keystone Corp. of Boston
50

congress street, boston

1432

THE COMMERCIAL & FINANCIAL

CHRONICLE

Thursday, October 22, 1942

New Orleans Bond

by James C. Tucker, resident part¬
ner
of the Austin,
Texas, office
of Barcus, Kindred & Co.
During
Exchange
,of
new
refunding the period between 1933
and 1942,
bonds for the
outstanding public the
report
shows, the, county's
improvement bonds, dated July 1,
gross
indebtedness- was reduced
1900, and maturing July 1, 1950,
by $8,460,881, or from $43,694,366
in accordance with the
voluntary to a total of
$35,230,485. These
offer accepted by
creditors, got. aggregates included
obligations of
under way on Oct. 19. Holders of
the county proper and all
overlap¬
certificates "of deposit were ad¬
ping units such as roads, drainage,
vised that the
following named water and school
districts, as well
New Orleans banks were
prepared as
cities.
Moreover, the 1942
to make
delivery of the new se¬
grand total, it is noted, does not
curities, together with a check allow
for cash and securities in
representing adjustment of inter¬ the various

Wisconsin's $31,000,000

Exchange In Operation

Bank Balance Unencumbered

.

,

Activity in the municipal mar¬
ket last week was distinguished
by the sale of a series of local
housing authority bond issues ag¬
more than
instance the

gregating
each

In

$20,000,000.

succeeded in disposing of
obligations on very attractive

its

Moreover,

.

bidders

successful
equally fortunate

were

the

with

respect to the response to
the reoffering of the bonds from

an

This has

been

increasingly

the

in

parent

in

ap¬

sales

recently

syndicates

in

firms

the

in

a

tax-exempt

not

issue, mention should be
offering

made of the fact that the

represented the first extension of

housing authority bond maturities
in

the

1980s, This, of course,, re¬

flected

further

manifestation

This

is

in

seen

of

tax

the

fact

last

revenue

Homestake

in

following

Oct.,13, frop which
information
has

"South Dakota will lose its larg¬
industrial
payroll, and this

est

Black Hills town of

cipal

for

reason

8,000 its prin¬

existence

when

the WPB order

halting gold-min¬

ing

becomes

operations

in 60 days.

mineral

deposit filling

fissure

a

stake Gold Mine, leading producer
of the yellow metal in the United

States, with a 1941 output valued
$19,529,080 and a production in
its 66-year history of more than
$420,000,000 in gold bullion. '
— *
at

name

mine,

from

April

on

which

the

takes
staked

claim

of

protection

bondholders is

in

seen

for

its

section of South Dakota.

Legislature

"

add

to

$1,500,000 of
surplus money in the highway
fund to the $5,400,000 "cushion"
already in the State highway re¬
funding bond fund. %;';%%%%
"This step,-' the Governor said,
"will further protect our bonds,"
and

he

our

conscientious

even

tire

also

stated

though

the

rationing

:

that

"it

'far-reaching

catastrophe

"He

paid

tax

ore

about

the

last

revenue.

ready

.

blow

as

result

a

the

of

war,

from tourists who, until tire

all

In
'

line

which

the

Linen,

Governor

Vice

Chase

this

-

in
to

President

National

Bank

letter

a

John

S.

60%

the

Hills

in

established

was

thousands

to

the

see

rial.
"Until 1942 income from tourists

approximated $30,000,000 annual¬
ly and the four cents a gallon
gasoline
crossed

•'no more than 8.70% in State

high¬

for the six; months

1942, as com¬
corresponding

months of last year,

west

tax

they

the

was

Dakota

inclined to be
disaster
two

of

gold

Authority
Approves Refunding Plan
refunding plan applicable
$3,739,000 of outstanding bonded
new

the

mining

fourth,

has

the

over

overtaken

State's principal

in¬

business

ranked

and

third

and

respectively—saw

bright spot in the wartime

one

oui-

look.
"Income

from

recently approved by the
above-mentioned Florida taxing
unit.
The
new
refundings will
have a final maturity date of 1970

farm

and

marketing

of

year average

debt

was

maximum

a

int.

rate

of 4%

except during the first year.

The

refunding details will be handled
by John Nuveen & Co., Chicago,
and is designated to effect a sav¬
ing of $731,255 in interest charges
as

compared with the existing set¬
up.
The Port Authority, it is said,
will

do

name,

the

with

refunding
the

result

under its
that

any

liability formerly shared by

mu¬




of

clared

crops

year is

and

livestock

estimated at

$225,000,000,

more

compared

exclusive

this
than

with

$1^2,000,000 in 1941 and

a

five-

of $103,528,000, all
of Government pay¬

that

"The

farm-income

and

figures

1942 indicate

for

remark¬

a

able agricultural comeback for this
Great Plains
its

worst

State, which suffered
drought during the de¬

a

.

•

''

had

his money,

at

are

farm

Farms

a

by

being

decade ago."

was ac¬

Commis¬

who

*■ A

of

de¬

gasoline

is

acquire the Toledo Edison
Company has been revived, and a
resolution calling for a
complete
investigation of the proposed pur¬
chase is planned.
The Securities
and
Exchange Commission has

person

any

ordered divorcement of the
pany

As

an

example

available

for

of

debt

the

funds

service,

ests

Mr.

pointed out that cash
surplus credited to project No. 1,
composed
of
eight
intrastate
operated

terest

1944.

July

was

bill

revenue

ance

that

bridge

in

of

as

orders

gasoline
as

a

as :

,

50%

utility

issued

by

This

tax

St.

on

ters

as

tax

Oct.

more

while

an

-That was

to
in

ceding periods.
oline

tax

rejected

creased

in

5.8%,

1941 months.

compared

;■

City

ter,

with

%%%'%

,

tax

taxes
use,

end
of
September totalled
$16,103,580 of the 1942 total levy,
or
$858,135 more than had ;been
same

costs

date,

was

col¬

lected in the

same period of 1941.
Thus total collections for the
nine
months were
$2,042,800 ahead of

period of 1942.

Hidalgo

County, Texas,
Debt Status
Improved
Marked

improvement

| debt picture

\
'

in

the

of the above county

their

inventories

and

of

equipment

protect

dependent bodies
such
as
the
schools. Appropriations for main¬
tenance and operation show an in¬
crease
of $1,989,215.84
or
8.6%
over the previous year.
•
-■
Budget expenditures that are to
be charged to the municipal reve¬
nue fund, it was stated, officially
exceed estimated receipts by $lr
458,779.09. Receipts will be $935,279.99, or 4.4% under last year's,
it

was

as

mission,

will

be

obvious

from

or

otherwise. Under the

safeguards which have been set
up

in this amendment to make
that they shall be of a

non-profit

estimated.

This would, with the fund def¬
icit of $651,853.20 at the start of

character,

the purpose of

turned

or

shall

be

exemptions.
;

"Mr.

and

for'

ultimately being

to

over

ernments

they

decreasing

automobiles and

supplies

the ;

prop¬

Esti-

public property in wartime.
The city budget total was given
as
$33,502,526, not including out¬
lays from bond funds and the in¬

$3,900,982,

than

of

of

erties, either as a result of dis¬
integration orders issued by the
Securities and Exchange Com¬

war

and additional expenses to

taxes and liens for the first nine
months of 1942 totalled
more

on

declining

staff

reading, is to provide tax
exemption for non-profit organ¬
izations acquiring utility

par¬

Expenditure climbs were laid to
salary and wage increases, higher

according to Wainwright, Ramsey
& Lancaster of New
York, munic¬
ipal financial consultants engaged
by the city in a financial
advisory
capacity. Collections of delinquent

$1,184,665

be

the

stated.

are

the

certain

merchants and manufacturers.

the

or

revenues

by

its

immediately thereaf¬

analysis

the

mated

made by

was

the

commit¬
The purpose of the amend¬

ment,

Institute

collections, lower receipts from

-

collections ' to

collected in 1941 at the

should

comment

is

and

tee.

because of reduced property tax

Jersey City Tax
Receipts Sharply Higher; V
Jersey

problem

ticularly acute during
crisis and

the

result of long and
protracted study by the commit¬

municipal

they (de¬

July

"It

*'

dwindled

Senate

Senator La Follette of
Wisconsin.

prediction of the

.

The

the

Treasury and the joint

Research

its

by

in
on

the nature and.pur¬
proposed plan. The

to

as

of

poses

shrinking
increasing

are

later;

was

by various members of the

Senate

tee

are

quar¬

"anti-utility joker"

measure,

16,

some

record, however, it might be well
to give herewith the
explanations

increasingly

analysis of the
budget for, 1942-43.

In August, gas¬

collections

and

the

Governmental
in

September, 1941, to reverse a
downward trend shown in pre¬

23.8%

revenues

expenditures

in

edly viewed by the conferees as
essentially a "promotion" scheme
for selling or
acquiring certain
privately-owned utilities.,, For the

with wartime conditions.

that

$1,479,309

an

which, inciden¬

Conference; Committee
engaged in ironing out the differ¬
ences in the
revenue bill as passed
by the respective houses of Con¬
gress.
The proposal was report¬

than $2,000,000 by next April

because

bridge

25.1%

faces

disintegration
SEC, or

and House

difficult municipal financial prob¬
lem and will have a deficit of

con¬

showed

Louis

ac¬

properties

the

viewed

was

the

$2,000,000 Predicted

receipts,

marked

rose

from

last

cre¬

the

H

The amendment

tally,

St. Louis Deficit Of

.

trast to the statement

taxes

revived

was

exemption

,,

with

result of

a

following

but

by

amend¬

otherwise.

made

tveek, recent dispatches from the
lity ::said.
; .<■ ;

passed
an

for

connection

through,

was

Sep¬

$1,850,712

bonds.

asking

for it,

quasi-public corporations

either

revenues

much

as

it

The Department of Highways
also released a report on

gasoline

revenue

resolution

a

,

after. Nov. 22, when nation-wide
gasoline rationing is scheduled to
take effect.
,

collections.

mortgage

as

contained

providing

the City Council to authorize ne¬
gotiations for the purchase of the
utility property.
This plan; fell

July 1, 1945,-ma¬
.

came

of

coming he '

from the corporate income tax
of
the income of certain
semi-public

.

Commissioner said

tember

submitted by Mayor John Q.

He submitted

1,

Consequently, he added, col¬

which

%

Carey;. It provided for financing
of the acquisition through issu¬

lections 7™W<^

decline

Company,
initial

proposal providing
acquisition of the company

for

a

payments, through

the non-utility inter¬
which
comprise the Cities

The

unit, was
$391,778 on Sept. 30. This, he de¬
clared,; was- slightly 1 more than
enough to meet principal and in¬
as

from

Service

Donaldson

bridges

com¬

,

any
was

money

.

jeopardized.

or

which

the

quisition

would

any

■

single dollar

a

government

Senate

ated

instituted in July,
1941,
which the City of Toledo

under

the

ment

or

move

not

to

of

The

who

A

have
hand

Utility Acquisition Plan
;
Removed From Revenue Bill

oper¬

people

we

be around asking
and don't forget that."

years

large percentage
were
heavily mort¬

these

gaged

are now

for

more on

would

oc¬

own¬

ownership 10

money

could have

day it was due.
After all, the proof of the
pud¬
ding is in the eating.
If any

was

high level today,
a large ratio

a

any

day since June 30.

"There
payable

Intangible

and

one' had'

any

$31,000,000 and

every

current

reverse

pression of the early 530s and lost with respect to both direct and
40,000 farm families in one of the I overlapping obligation is reflected the fiscal year, result in a deficit
in a statistical
nation's most tragic migrations."
analysis prepared of $2,110,632.29 by April 13, 1843.
fi,.*■■■

if

coming since then he
received

pe¬

Toledo Utility Purchase
Plan Revived

with

even

of

beginning Nov. 22,
he foresaw no difficulty in meet¬
ing principal and interest on
outstanding bonds. Collections,
he declared, would have to de¬

the same

ments.

1941

against

%;•

Highways,

more

And

contrasted with

of absentee

rationing,

although

gloomy

which

to

biggest
v\

Greater South

Association,

1

east

the

revenue.

"Officials of the

they

as

from

of

one

of State

sources

paid

State

dustries—tourist

Broward Co. Port

to

and

the

accompanying memoran¬
showing a comparison of
highway revenues and re¬
lated data, prepared by F. A. Sto¬
rey, Jr., Supervisor of Refunding
Department, showed a decline of

A

a

revenue

New

of
of

an

ending September,
pared * with
the

in

Mount Rushmore National Memo¬

dum

revenues

>

East, flocked to the Black

State

way

decrease

gasoline rationing
in

statement,

contained

was

from

York,

with

*

to

ership
as

them.

Donaldson,

presented his bill and ob¬
his money, for Ave have
than $31,000,000 on hand;

tained

improved

on

ago.

Home

own*

statement

a

,

promptly

a

sioner

by

decade

a

curred.

.

Dakota, he added, al¬
had suffered
ohe .severe

be

period of eight years."

Lyter

might

of

year

40

debt service requirements for

J.

The

one-sixteenth

true

debt-free

Release of the report

have

$3,163,000.

"improvements have likewise

ago.

$129,520,

on

exceptions all

now

one

State

had

are

any

coming from the
June 30, 1942, he could

one

districts

that if

say

money

paid

ated

24.2% less,

turities.

"South

decrease

meet

to

or

any

unit

two

or

basis, whereas the

Collections for the month

amounted

had

not

one

follows:

as

"I want to

with

the •; State

from

to prove that the State
The Governor further

one

remarked

or

nine-year

County's

1941 pe¬

same

$170,949,

to

mine

50%, the State will

to

report

a

showed.

conceivable

explained that
an

riod,

in the

"Hidalgo

September, compared

receipts in the

months to meet

the entire State.'

of the State's entire tax

and

should

National

Bank of the Black Hills, will be
a

that

gasoline

President of the First

$1,125,000,

is

opinion

$5,000,000, said Robert Briscoll,

our revenue

able

:

"Loss of the annual payroll of

statement4 of Governor Homer M.

Adkins that he will ask the State

with

"any

entirely
challenged

and

is in debt."

fiscal position," said Mr.
Tucker,
"is indicated by the fact that

bridge collections by the De¬
partment of Highways of the Com¬
monwealth of Kentucky showed a
in

issued

were

riod in the amount of

For the ninth consecutive month

out

the recent

New

cline 63.2% from 1941 levels be¬
fore
debt
service
would
be;

1876, by Fred and
Manuel Moses, who later sold out
Arkansas To Provide Added % to. a group headed by William
Randolph Hearst's
father,
now
Protection for Debt Service
employs 2,000 men, a substantial
Evidence that the State of Ar¬
proportion of the income-earning
kansas, intends to maintain the
family heads in the Black Hills

maximum

in

toll

its

9,

Bank

Kentucky's Bridge Revenue
Bonds In Strong Position

companied

in rock) is the home of the Home-

"The

National

funds,

unencumbered

bonds being paid by the State of
Texas from remission of taxes and
from the gasoline levy. New bonds

Orleans, Louisiana Savings Bank
& Trust
Co., National Bank of
Commerce in New
Orleans, and
the
Whitney National Bank of
New Orleans.''' PP;

effective

;,>v

"Lead (named not for the metal,
but for the miner's term meaning
a

Hibernia

decline

y;v;£:\'

sinking

est upon said certificates
duly en¬
dorsed
with
signatures guaran¬
teed: American Bank & Trust
Co.,

a

been extracted:%:>

and

securi¬

entire

"Sun" of

the

increasing confidence in banking
investment circles in

oij.the State of South

home of the Homestake

company, it is
dispatch from Lead,
Dak., publisned in the Balti¬

■,

ties of this nature.

occasion

resulted from the operations

more

prominent

the $9,137,000 Pittsburgh issue, for
example, the Mellon Securities
Corp. joined with Shields & Co.
in making the successful bid. This
was
the first permanent housing
financing in which the city has
participated and, in connection

with the

will

Mine* leading producer of
yellow-metal in the United

the

S.

not

directive,

repercussions to the finan¬

noted

field
previously been
identified with local housing bond
issue borrowings.
In the case of
had

the

of

of

effected

few instances included

which'

of

year

greatly illustrated this trend;' The

purchasing

Board
calling for a
virtually all gold-mining
operations in the country, after a
period of 60 days from the date

halt

Dakota's

issues reaching the market.

The

War

the

Production

States.

various

the

of

order

recent

that about one-sixteenth of South

interest

greater

firms

The

the

exhibited by more and more in¬
vestment

Economy

Gold

investment status that
heavily belies its relative new¬
ness
in the tax-exempt field.
enjoys

indebtedness

Effect Of Gold Mines Closing
On So. Dakota's

Dakota,

that this type of security

course,

the

eliminated.

cial economy

evident, of

been

long

has

be

severe

investment quarters.
It

will

in

borrowing

agency

terms.

nicipalities

Governor Heil stated in a recent
radio address that the State's bank
balance of $31,000,000 is-

municipal
power

entitled

President,

we

ther provided that in

to
-v,

.;

,

gov¬

districts,"

have
case

tax

v;

fur¬

any

of

the

protective
measures
a nd
standards which have been set
up
are

violated, that they shall tjien
become liable for all the accrued
taxes,

without

regard

to

the

statute of

limitations, which will
certainly, it seems to me, and I

think

to

other

members

of

the

committee, insure the operation of
these
a

non-profit organizations

on

strictly non-profit basis

and in
the public interest."
The amendment was additional¬

ly discussed by Senator Clark of
Missouri, as follows:
"Mr.
to

President, I merely desire
suggest, in addition to what the

Senator from Wisconsin has
said,

that this amendment will
not only
have the very great effect of
per¬

mitting
power

able
and

to

many

districts

acquire

to furnish

municipalities

or

ultimately to be
these

properties,

the service

to

the

public at cost, but will also be of
tremendous assistance in
carrying

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

(jisintegration

the

out

Numbdr'4118

156

The Clearing House transactions

orders of
holding companies,
because at the present time the
SEC
is
ordering a great many
holding companies to divest them¬
selves
of
smaller
utilities, and
the SEC

for the year amounted;

to

as

Exchanges
Balances

effect

because

transactions-

The average

$229,397,011,743.56

Balances

holding com¬
panies have been unable to find
purchasers. So it will serve both
purposes."

any

.

16,

nounced

"

$1,236,268,285.49
day during
(Oct.
6,

one

the

Dwight W. Michener, Assistant

1941)

Largest

New York

Monday, Oct. 26, at
meeting at Block
Hall, 23 South William St., New
York City.
its

on

student

of

in

work

the

Friends

of

Scheduled

V

balances

on

day during

one

the

year

(April

The

amount

of

Coupon
total

the

amount

Return

Exchange
In

the

1

past

of

$36,748,340.97

'the'Night Exchange
63'/o. of
the
total

year

daily exchanges.
,
"
Total transactions

-

,

.

since

organization

of

Clearing /House (89 years):
Exchanges
itLL$8,738,849,016,483.88

February

over—short term issues

or

in the

the

which

future.

near

to

are

successful

ex¬

come

The

March

and

bond

issues

of

major

size

in

award

for

the

are
near

(Oct. \

31,

;

,

'

No

,

sales

or

200,000

—

June

sales

or

sales

or

sales

200,000
,

December

balances

record

sold

or

William

H.

President

Moorhead,

and

Cashier

Viceof

.—A.¬

issues

coming to market will be small.)
October

In

;

Panama

connection

outstanding

N. Y.

City,

Fla.,-

with

'

'

'

the

at

P.

8,446,000

September

re-elected

time

Howell,

Chairman

Bank

Trust

and

Co.,

President of the Association.

as

Mr,

dent of the Chase National Bank,

members

of

House Committee

the

are:

Clearing

William

S.

Gray, Jr., President of the Central
Hanover
Bank & Trust Co.;
J.
Stewart Baker, Chairman of the
floard of the Bank of the Manhat¬
tan
the

Sloan
ers

Bank, and S.
Colt,- President of the Bank¬
Co. Messrs. Gray and

Baker

served

the

on

Committee

during the past year.
According to the report of Ed¬
ward L.
Beck, Manager of the
Clearing
House,
total
clearing
transactions for the year ending
Sept. 30, 1942, amounted to $229,397,011,743, compared with $211,604,998,472 in the previous year.
The transactions-for the year just
ended consisted of exchanges of

and

balances

$37,620,653,810. For the fiscal

ending
changes

Sept.

30,

1941,

amounted

to

091,686, while balances
351,906,785.

The

Traphagen

(Chairman),

Presi¬
York;
J.
...

liam N.

Enstrom, President, Irving

N. J. Gets

Of

our

were

was

of

year

Committee
Sherrill Smith

President,
Joseph

(Chairman), Vice-

Chase

S.

Admissions:

on

National

Bank;
Vice-Presi¬

Maxwell,

for

the

Sept. 20, 1942:




Nation

the

the

first

Oct.

on

$34,the

ended

ending

Oct.

Newark,

companies,

Co.

the American

are

Beneficial

Man¬

Group, Prudential
Co., Public Service

Life Insurance

phone Co.

authority.

The

office

steps by other

wealths

and

by

Output Of Pennies Out

of

To Oonserve
The

common¬

the

..'f:

"The
the

tNew

program

New

ODT

staggered

drawn up by
War Transpor¬

was

Jersey

Committee,- appointed

Governor
months

Charles

United

ing to

States

conserve

by

several

of

request

Eastman, ODT Direc¬
Subsequently, Governor Ed¬
ison appointed Joseph E. Conlon,
Joseph B.

tor.

President

of

the

State

Board

Utility Commissioners, State
ordinator

of

of

Co¬

Transportation, with

full war-time

authority to coordin¬
public transportation facilities

the

War

mittee.
Mr.

Transportation Com¬

As

his

three

first

issued

Corilon

official

act,

the

following
directives, according to the
-'.' V1

Bank & Trust

schools,
parochial
schools,
and
high schools in cities throughout

sten,

Co.; E. Chester GerPresident, Public National

the

National City Bank.

a

Vice-President,

State

to

adopt opening and
closing hours ia conformance with
schedule drawn up

Copper
Mint,

vital

Appointment of
consultants

rubber

program

Oct.

on

14

William

M.

by

a

staff of tech¬

on

the

serve

under

nation's

announced

was,

Rubber

Jeffers.

Director

They

hour

which

previously

the

businesses

district

the

program.

Those

named

are:

E.

B.

Bab-

of

A.

M.,

the hours

Technology; W. L. Campbell,

former

Vice-President of Kroger

Grocery Co. in^charge of

facturing

and

plants;

manu¬

Machine

Foundry

Co.,

and

in

the

to

not

to

open

8

A.

not

the

and

close

public

of 4 P. M.

business

M.

to

between

and 6 P.

district

effected

River;
on

on

the West

by High St.;
the North by the Lackawanna

Railroad;

and

the

on

South

by

South Street and Clinton Avenue.
The effective date of this order is
12.

"Directive

No.

3

ordered

six

companies employing large office
change the opening and

forces to

velopment for

approximately

Rubber Co.

is

usual

so

as

an

not

to

hour later than

to

coincide with

50%

in

.

sinking'

funds

of

December, with produc¬
247,152,492 pieces having
$11,603,020.10.

value of

a

"Production of the
less

nickel'

one-

that however, "de¬
coins, arising from the
level of business, continues
,

.

savings of nickel and
war.use.

pieces,

moderate rise

over

Au¬

gust, but only about half the

pro¬

a

duction level of the

early

summer.

Mrs. Nellie Tayloe Ross, Direc¬
tor of the Mint, renewed her plea

that all coins, but especially onecent

pieces

"hiding"

now

in

children's banks and other recep¬

tacles, be returned to circulation.
pointed out that if each of an
estimated : 33,000,000
American
She

turn

should

to

use

discover

just

ten

and

re¬

one-cent

pieces, and these should stay5 in
circulation, the Nation's supply
would be increased by an amount

equal.to one-third of the record
1941 production of the coin.

1,000
be

tons

saved

of

for

ture, she said.
\ The Treasury's

More

might

copper

manufac¬

war

v

,

announcement

further stated:

'••••'

v.

"Shortage
of
materials,
strain of prolonged capacity
erations on machinery and

:'

the
op¬
per¬

sonnel, and loss of hundreds of
highly skilled employees enter¬
ing the Armed Services or going
into war plants all have contrib¬
uted
gram

to

the

urgency

of the

pro¬

"Nearly
coins

was

$12,000,000

worth

turned out by

of

the Mint

in

September, including 7,155,309
half
dollars, 15,153,509
quarter

dollars, 39,841,509 dimes, and 59,086,500 pennies.
"Peak
production
of
recent
months was in May, with 173,763,418 pieces of which more than
119,000,000 were pennies.
Sus¬
pension
of
coinage
of
5-cent
pieces in recent months, while
preparations were made for use
of a new alloy,
is reflected in
coinage

figures.

The

all-time

peak month, in number of coins

for

copper

■;

big

of

is the

worry now

pennies.

actually

The

lowly
perhaps the

is

Nation's most useful coin.
150 years of Mint

In the

operations/more
than 19,000,000,000 have been
pro¬
duced, of which almost 11,000,000,000

one-cent

were

pieces."

Collyer Warns Materials
Lack May Affect Rubber
A

warning rhat "late

of

1943 will

stocks of rubber and those

see our

Allies nearing exhaustion,"
by John L. Collyer,

our

given

was

President

Co.,

of

before

the

the

Of Detroit

B.oF.

Goodrich

Engineering
on

So-

-fpert

Set, 9.

in

building and equipping the
giant plants called for in the na¬
tion's

synthetic

and in

rubber

the actual

of

use

.

emphasized by
sary

for

the

and

rubber,

was

Mr,. Collyer, who

"structural

plants

program,

production and

man-made

said

materials

construction

neces¬

of

the

equipment .must

ba
made available promptly or there
will
be
serious delays in com¬

pletion of "the production facilities
urgently needed."

so

As

for

tion's

the

time

production

rubber

might
"our

meet

when
of

be

the

na¬

man-made

expected

to

require¬

necessary

ments"

said,

adequately, Mr. Collyer
"certainly not until 1944."

He went

on to
explain that the na¬
tion wil produce about
32,000 tons

of

synthetic rubber this
year,
practically all from privately-fi¬
nanced plants.
In 1943 the gov¬

ernment

plants

will

"come

big production," he said, and
timates for that

into
es¬

range from
300,000 to 450,000 tons, which still
is

in

year

contrast to

of

rubber

in

1041.

the 765,000 tons
country consumed

the
In

1944

it

is

estimated,

he said, that synthetic rubber
pro¬
duction will be from
700,000 to

900,000 tons.

to put the outstanding coin

stocks to work.

It

■

"But the

rf„e-s5"°"s:

this, conservation
program.
Production of pennies
in
September
was
59,000,000

'nickel-

new

underway.

silver, copper ancl
permitting substantial

manganese,

state

threatening

is

now

is composed of

recent

for

,

?,!
ly

M.

sylvania Railroad and the Passaic

closing hours of their offices

&

10

their

Ray P. Dinsmore, manager of de¬

Goodyear Tire

re¬

business

bounded oh the East by the Penn¬

Oct.

Morehead

Patterson, President of the Amer¬
ican

The

of

and

stone

of

yester¬

to the public for the
day's business between

hours

cock, chief chemist for the Fire¬

Co.; L. D.
Tompkins, Vice-President of the
U. S. Rubber Co.; Dr. E. R. Gilli-

effect

Newark

doors

doors

Tire and Rubber

prevailed.

"Directive No. 2 ordered all
tail

their

of

those

day (Oct. 5).

start of the

aspects

than

had

went into

program

for

technical

later

This phase of the staggered hours

Deputy Director, upon whom Mr.
Jeffers has placed responsibility
the

high

than

will

Col. Bradley Dewey,

advices
mand

thus

one

production of
by

■

general, the school hours ordered

Transporation

nical

;

municipal

seek¬

metal,

war

according
to
a
report
made to Secretary of the Treas¬
ury Morgenthau on Oct. 13. •••-. The

by the War
Committee,
In

were

pieces

families

.

"Directive No. 1 ordered public

Bank and Trust Co., and William
S. Lambie, Senior

curtailed

cent

,

Edison

the

at

ago

'!■

A;.:'

v:

Jersey

last

tion

'copper'

municipalities

announcement

said:

of

and

supply

in

6

was

Corp. and New Jersey Bell Tele¬

a

ODT:

neering at Massachusetts Institute

referred to in

year

in

became

dent, New York Trust Co.; Frank
Houston, President, Chemical

ex¬

issue of Oct. 16, 1941, page 623.

report

Jersey

plants.

war

effective

affected

Co.—Loyalty

Staggered Hours

of similar

ate

*

■

.

State, -school
funds,; etc.

agement Co., Firemen's Insurance

staggered hours program
ordered officially by Govern¬

was

K.

land, Professor of Chemical Engi¬

The following are extracts from
the

New

Program

at
is

also

six

Insurance

in line with the recommendations

year

$177,253,-

report

Clearing House for the
Sept. 30, 1941,

the

of

•.

which have their main of¬

tation,

•

$191,776,357,933

of

hours

National

Trust

'

months,

Co.; Leon Fraser, President of Rubber Technicians Named
First

all

fices in

Jackson, First Vice-Presi¬
dent, Chemical Bank & Trust Co.;
John E. Bierwirth, President, New

of Trust Co.

Stetson, who served on the Com¬
mittee during the past year, suc¬
ceeds H. Donald Campbell, Presi¬
Other

4,500,000 sold

.

The

has

the Board of the Commercial Na¬
tional

12.

sold

The

York

same

/'*

companies,

other pension

shifts

order

throughout the country in order
to meet the transportation crisis.

Baxter

dent,
Bank
of
New
Clearing House Luther Cleveland,
Vice-President,
Association, at its annual meet¬ Guaranty Trust Co.; Henry C. Von
ing held on Oct. 6, elected Eugene Elm,
Vice-Chairman,/ of Board,
W. Stetson, President of the Guar¬
Manufacturers Trust Co.;> Ralph
anty Trust Co., as Chairman of
Peters, Jr., President, Corn Ex¬
the
Clearing House Committee, change Bank Trust
Co., and Wil¬
Herbert

of

Defense Transporation viewed the'
action as the possible forerunner

are:

Conference Committee: W. Ran¬

Nominating Committee: John C.

Elects New Officials

and

change

Bank.

of

Clearing House

The New

police and

York
Trust
Co.,
and
John
I.
Downey, President, Fifth Avenue

refundings

refinancing

indebtedness.

firemen's,

This

the other Committees named

22

,

in

sold

mental

.

offered

16,625 purchased
250.000

2,295,000 sold

House Committee the members of

dolph Burgess (Chairman), Vice$1,575,000 Reading Housing Authority, Pa./ Chairman of
Board, National City
refunding bonds.
V \ Bank; James G. Blaine, President,
Marine
October 23
Midland, Trust Co.;
N.
$1,005,341

/f

July

State

Assistant Managers.
addition
to
the
Clearing

insurance

purchased

Chase National

as

•

Angeles, Calif.

the

Bank, was elected
Secretary of the Clearing House
succeeding Samuel Shaw, VicePresident and Secretary of the

\ V

Standard Federal Savings and Loan
Association
735 South Olive
Street, Los

'Guardians,

purchased

August

$432,909,546.73

.

which

new

•

$520,700 sold
5.814.450

Russell Clark and Charles A. Hin-

of

'

purchases

29,980.000

—

June

30,

Avenue, North, Birmingham, Ala.

300,000 purchased

May

on

(Oct.

1923)

Second

Hinsdale Federal Savings and Loan Association
8 East Hinsdale
Avenue, Hinsdale, 111.

,

-•

April

richs

for

policies, the prospect
naturally is that for some time to
amount

•

$60,004,000 purchased

_

January

war-time

expenditures

improvements held to bare
necessities
by the
demands
of

the

Guaranty Savings and Loan Association

$2,500 sold

„

Salle Street, Chicago, 111.

Savings and Loan Association
Street, Danielson, Conn.—Write for free booklet

Main

2004

purchases

October
November

La

purchases

No

.

September

local

come

•

No

•

South

and information.

purchases
sold

No

August

Chemical Bank & Trust Co.
Mr.
Beck continues as Manager and G.

With

future.

84

447,000 purchased

July

March

*

$3,853,040,114.48

Largest

the

previous
issue sold are also appended.
(Ed. Note—Very few municipal
scheduled

211

$743,350 sold

May

February

on

1929)

of

last

the

$9,623,196,160,772.97
exchanges

record

up

names

bidder

for

runner-up

Danielson Federal

1942—

.

cluded),

Chicago Federal Savings and Loan Association

$2,785,000 purchased
11,950,000 purchased

__

884,347,144,289.09

•

•

Total'

Largest

portant municipal offerings ($500,000

•

•

April
.

handled

sold

1941—

January

/

$538,225,531.88

Item

was

Department

'

im¬

more

Atlanta, Ga.—Write for free booklet.

1,139,000 sold

»

.

Exchange''
u—1

was

The

$48,469,807.90

sold

284.000

.

December
,

total

City, Utah

"A Safer and Better Plan."
$4,400,000

November

4,

1942)

1

We list herewith the

Atlanta Federal Savings & Loan
Association
22 Marietta Street,

1940—

October

Batabces

.r

v

•

two years:

$250,832,901.73

—

Major Sales^

American Savings & Loan Association
17 East First South
Street, Salt Lake

Government securities for the last

„

any

Committee

Service

(Quakers) in France, and returned
to this country just last June.
His
subject will be "France of Today."

•

following tabulation shows
Treasury's
transactions
in

the

(March 16,

-

Smallest

American

the

When doing so please mention
the "Chronicle."

.

Michener,

an economist and
world affairs, assisted

sales

investors, trustees and otherfiduciaries interested
becoming acquainted with the Federally insured investment
op¬
portunities offered by savings and loan
associations should write for
current explanatory literature to
the associations mentioned
below.

in

The

day during

1942)

luncheon

Mr.

•

on

one

any

Oct. 15. This compares
of
$8,446,000 in

on

net

Individual

August.

$320,816,244.63
balances,

the year

National Bank of New York, will
address the Municipal Forum of

*

;

with

year

Director of Research of the Chase

in

accounts

of

the

during

(Dec.

year

Smallest exchanges on

Address Municipal Forum

other

1942, resulted in net
$4,500,000, Secretary of
Treasury
Morgenthau
an¬

sales

on

1941)

Dwight W. Michener To

and

September,
$759,592,754.11

—__j

exchanges

one day

any
the

vestment

41

Investment Funds

ment

124,571,701.35

Total

Largest

-

Sept.

A Safe Haven For

Market transactions in Govern¬
securities for Treasury in¬

daily transactions:
$635,021,052.76

Exchanges

the

In Govts. For

37,620,653.809.85

Total

such orders cannot be carried into

Market Transactions

.

$191,776,357,933.71

~-

1433

Turning momentarily to consid¬
eration of rubber's post-war
role,
Mr. Collyer pointed out that the

possible American synthetic rub¬
ber capacity of

1,000,000 tons an¬
nually—combined with 1,500,000

tons of natural rubber — would
make rubber substances available
in
"u.ndreamed-of

quantities."

New standards of
and

service

comfort, utility

would

with the rubber

be

possible

industry working

closely with industrial engineers
finding pew uses for such

in

products,

he

said,

but

that such considerations

indicated
were

re¬

motely secondary to "the primary
job of winning the war."

Thursday, October 22, 1942

THE COMMERCIAL & FINANCIAL CHRONICLE

1434

ACCOUNTS INSURED UPTO
$5,000
PER

Latest Semi-

AT

Annual

RATE
OF

Dividend

Dependability Of Assets Characterize Holdings

ANNUM

0

•

for Trust Funds in

Speculative Investment Legal

A NonAssets

check

send

Certificate

Investment

for

$525,000

Plan"

booklet, "A Safer and Better

cost less at the time the loan was

Savings & Loan Association

Atlanta Federal

would cost to
build today.' The margin of safety
on such loans increases as build¬

FEDERAL ORGANIZED 1928

Atlanta, Georgia*

Marietta Street

22

Savings &

Loan Insurance

Corporation :

they

ing prices rise. A loan which was
80% of value in 1939 becomes,
even without any reduction of the

Loan Bank System

Meviber Federal Home
Federal

than

made

''

V GEORGIA'S LARGEST

K

principal, a 65% loan by 1942,
with building costs on the upward
,

spiral they have climbed the last
year
and a half.
The Federal
Home Loan Bank Administration's

Insured, Non-Speculative

INVESTMENT ACCOUNTS ■///
■■

''

■

•

for

figures show that the cost of build¬

•

offering

'■

Excellent Yield •

:

—

Convenience

invited.

Inquiries

average

1935-39

period.
•4
Obviously as far as their con¬
struction loans are concerned, the

companies,
./:-//'.

Assets $1,000,000

' T-v

v;

period of 19351939. This development strength¬
ens
every loan made during the
the

ing

V/.O'X

Legal investments in many States for guardians, trustees, trust
insurance companies, banks and fiduciaries.
-

ordinary six-room house is
23 % above where it was dur¬

an

now

;;/;■

Safety

Insured

Federally

ing

Individuals /

Institutions, Trusts,

and

savings

'\/:-'

portfolios

GUARANTY Savings and Loan Association

HINSDALE

hiNSDALt, ILLUNUib

SAFETY

F. S. & L. I. C,

1.

Insured by

2.

88% of three million dollar
loan

v

insured

portfolio

by

f. h.

Non-members

are

cordially

to

to membership

dealer,

own

In¬

information

seek

vited

regard

in

from their
or
banker.

broker,

served

Enters Second Decade
Loan Bank

of Chicago reached its

tenth anni¬

Oct. 15. It is the largest of
the 12 banks of a system created
versary

by

Act of the last session of

an

Congress in the Hoover adminis¬
tration establishing a permanent

Directorate since

the

on

beginning to be their guests

aLthe~regular-monthly-meeting
Monday, Oct. 19, to be followed
by a dinner in the evening.

Chgo. Home Loan Bank
Federal Home

Present Directors are:
:

E.

Charles

Chair¬

Sheboygan, Wis.; Henry G.
Zander, Jr., Vice-Chairman, Chi¬
cago;
George
Dick, President,
Modern Federal Savings and Loan
man,

Association,' Milwaukee i Earl S.
Straight, Secretary, North Shore
Savings and Loan Associations,
Shorewood, Wis.; Nic W, Heint-

system in home financing
to round out the nation's reserve

skill, Secretary, Community Build¬
ing and Loan Association, Mil¬
credit
structure
which had al¬ waukee; Philip K. Kinzer, Viceready taken care of commercial President,
Carnation
Company,
banks and farm credit.
Milwaukee; Arthur G. Erdmann,
This regional bank opened of¬
President, Bell Savings and Loan
fices in Evanston on Oct. 15,1932,
Association, Chicago; Edward J.
and moved to Chicago in early
Czekala, Secretary, National Sav¬
1934, and has expanded its quar¬
the

and build¬

and Loan Association, Chi¬
D. Johnson, Pres¬
ident, Fidelity Federal Savings
and Loan Association, Galesburg;
William
E.
Hodnott, President,
Lincoln Savings and Loan Asso¬

in the
district, it

ciation, Lincoln; Guy A. Wood,
Secretary, King City Federal Sav¬

occupying

floor

second

entire

105

at

West Monroe Street.
In the first decade

as

institution for savings

a

reserve

and loan associations

ing

Illinois

and Wisconsin

disbursed

has

$117,571,998 to 452
according to A. R.
Gardner, President. As of Sept,
15,
191 associations
in Illinois
associations,

56

and
from

had

Wisconsin

in

the

bank

loans

aggregating $22,-

466,108, These advances are used
to supplement local home-financ¬

ing funds and for the most part
these borrowing members are lo¬
cated in defense areas where the
housing of war workers has be¬
come
a serious problem.
"The Federal Home Loan Bank
of

existence

of

of

challenge
war

an

economy,"

President.

its

enters

Chicago

decade

to

second

meet

the

bank

ings

cago; Lawrence

ings

Peoria.

Invited

home

financing




as

Sierocinski, President,
Second Federal Savings and Loan
Association of Chicago, Chicago;
Fred W. Hermans, Kenosha Build¬
John

A.

ing and Loan Association, Keno¬
sha; Judge August
C. Backus,
Milwaukee; Paul E. Stark, Madi¬

1
'
and

40

between

50% of the association lending in

activity show that it never even
normal until late 1940.

reached
Thus

■The

of

story

two in the value
security behind the loans

the

of

action

Congressional

maintenance

the

''VV' Y\Y

:•

Congress Increases
Planting Of Guayule
the

on

legislation increasing the planting

improvement in the course of

the past year or

funds in Government

excess

bonds.

the day the loan was made.
•

general policy ik to put

the

their

associations since 1936 is certainly

or

present declining market;

the

and

worth just as much today as it was

guayule, a rubber-producing
shrub, from 75,000 to 50,000 acres
was
completed on Oct. 13 when

of

;

I

of the reason for the
safety of savings and loan's mort¬
is only part

amend¬

in

concurred

Senate

the

loan assets today. The other ments proposed by the House. The
part has to do with the monthly ; measure, -authorizing the Depart-,
reduction of the principal on prac¬ iment of Agriculture to make the
gage

expansion, was originally passed
by the Senate on Sept. 21 and thq
House on Oct. 8.
Increased plant¬

tically all of these loans ever since

they

Building and

made.

were

loan associations have insisted on

this since they began

in this

coun¬

1931, and no matter what
changes the times have brought
in their procedure, This funda¬
mental systematic repayment is
retained.
Of
the
$798,000,000
which savings and loan associa¬
tions lent for all -purposes in 1938,
try in

i

ings of guayule had been recom¬
mended by the President's Special
Rubber
Investigating Committee
as

these

in

noted

was

columns

Sept. 17, page 985.
House

'

Oct. 8

passed a'
deficiency
appropriation
bill;
which carried an item of $19,000,-*
1006 for planting as much as 100,4
only some $649,452,300 would still
be owed today, following normal
000 acres of guayule in the fiscal
average schedules of repayment (year 1943.
The Senate must still
over the past four years.
Of the act on this appropriation.
; 4

they

which

$986,000,000

in

lent

The

on

Regarding the House action As¬

1939, only $843,535,040 is outstand¬

Press: advices

sociated

ing today, roughly speaking. Even
of the $1,199,579,000 lent in 1940,
normal repayment schedules will

said:

have left only

standing.

$1,095,024,000 out¬

'Y-Y

■

.

value,

or

at least holding its own,
the bor¬

and the amount owed by

systematically

being

rower

"The

House

re¬

Oct.

of

8

■%. Y-Y'Y:

Y-/v./V
vote

shortly

came

after ' the

Appropriations Com4
mittee made public testimony es¬

Y.V'Y/., timating

increasing in

With the security

loans

made by savings

and
purchase
have been

Loan

L.

Federal

Hirschinger,
Savings

and

this

that

part of
rubber pro^

one

America's emergency

anese

the Jap^

after

formulated

gram,

seized the world's principal

rubber resources,

Illinois

Savings

and

the

down

The uncertainties of war

of homes from 1936 011

the higher war incomes of
many of the borrowers this year
have combined to bring about this

appraisals

on

flected

no

runaway

which-1 re¬
enthusiasm

cases.

plus

about the

phenomenon^ As early as the first

booms

quarter

prospects of real estate
in the days just ahead.

been
probably
the
appraisals on which any
purchase loans were ever made
before in a period of general busi¬
ness recovery.
In a normal real

They

have

about

were

volume

a

repayments

loan

1942,

third larger in dol¬

than

they

had

been

soundest

lar

estate market most of these houses

of the
previous year. Of course, the un¬
expected rapid repayment of loans
creates some problems for some

would be worth

associations

even

more

today

than the appraisers' figures in

the

late

1930s, even allowing for de¬
preciation, which is inevitable and
which savings and loan managers
always take into account.
In the
abnormal situation caused by rent
control and growing restrictions
on the supply-and-demand forces
of our economy as determinants
of

price levels, all that

be said is that the

safely
security for the
can

during

the

period

same

which

in

re-employment

not find

may

the

mortgage

loan field for all the funds flow¬

ing back so steadily, but it proves
beyond any doubt the depend¬
ability of the assets which make
the the bulk of the associations'
holdings today.
Delinquencies on loans, either

up

interest

on

or

principal, : have

probably reached a 13-year low,
although
gible

for

have been negli¬
several years already.

they

Loan

Once the members who borrowed

H.

on

Belleville

1920s had become the

League, Springfield; John
Schmale, President, Greater
Savings and Loan As¬
sociation,
Belleville;
Joseph
J.
Jandar Secretary, Lawndale Sav¬
ings and Loan Association, Chi¬
Mr. Maurice E. Vaseny Sec¬
retary, Quincy-Peoples Building

cago;
and

Loan

Association, Quincy;
Frank
O.
Schneider, President,
Kankakee
Federal
Savings and
Loan Association, Kankakee; Emil
A.
Basener, President, St. Paul
Federal Savings and Loan Associ¬

Mr.

Charles

Bloomington;

Association, Baraboo; Ward Bodfish,

Whitlock,

paying

are

of

ation
of Chicago,
Chicago; Al¬
George H. Beckley, Secre¬ fred MacArthur, President, Cen¬
tary, Appleton Building and Loan tral Life Insurance Company of
Association, Appleton; Allen R. Illinois, Chicago; August A. Moths,
Calhoun, Secretary, Standard Sav¬ Secretary, West Bend Savings and
ings and Loan Association, Mil¬ Loan Association, West Bend; Mr.
Judson
G.
Rosebush, Appleton;
waukee; B. F. Kuehlhorn, Mil¬

Robert

Borrowers

principal amounts of their loans
ahead, of schedule in thousands

loan institutions for the

son;

waukee;

and

•■V//;:
former members of
'/

the Board are:

Baraboo

thrift

Association, Mt.
W. Reuling,
,

.

the

institutions, with 10 years of ex¬

Loan

and

Vernon; and Clarence

"Existence of a coordi¬

nating instrumentality among
local

the

unprecedented
said

Somewhere

based

Broughton,

reserve

ters several times, now

principal assets today.

rdn

would cost

more

| amounting to $2,695,302. In addi- 1 fortunate one from the point of duced, while the institution holds than $130,000,000.
>
"Department experts told the
| tion to the payment of these divi- view of the associations' holding the mortgage on the security, the
House Appropriations Committee
'prime: loans. There were certainly average savings and loan associa¬
j dends, during its first 10 years
tion can survey its principal assets that in addition to the vast pro¬
I the bank has built up reserves and
no real inflationary tendencies in
^undivided profits equal to 4.2% the real estate prices of the late today with a great deal of assur¬ gram for planting the rubberance. Y Y. Y >■■■:■
"S-; z'Y
": vY bearing shrub, 56 processing fac¬
1930s, although there was some
| of total liabilities and capital.
There is one final factor which tories would be required, at a cost
I
By way of observing the tenth slight pick-up
from depression
makes the loans on the books to¬
of about $450,000 each—or a total
anniversary, the present Board of levels of price and volume of
Directors
has
invited all who sales. Those who chart real estate day an even more gilt-edged asset. of more than $25,000,000.'
the

The

building costs

today's- levels,
ft
would be difficult to find sounder
loans for a financial institution's

the past several years has been
for the purchase of homes already
present emergency takes."
Mr. Gardner points out that a built.
Between
a
third and a
dividend has been earned every half of the loans outstanding today
have thus
been made on such
year and stockholding home fi¬
nancing institutions and the gov¬ properties.
The relation of the
ernment have received total an¬ y amount loaned to the value of
nual returns on their investments such properties today is again a

SAVINGS & LOAM ASSOCIATION

DOUBLE

associations'

loan

built largely on val¬

below

were

perience behind it, gives every
promise of making the sailing of
these local institutions smoother
no
matter
what
directions the

FEDERAL

are

uations made when

Birmingham, Alabama

North

2C04 Second Avenue,

which sav¬

volume of mortgage loans

and loan associations and cooperative banks had
outstanding on their June 30 statements was on security of homes
built in the past six years.
They are the result of these thrift and
home
financing
institutions'
lending
of ' $1,900,000,000
for the
building of half a million new homes since the beginning of 1936.
Practically $1,300,000,000 of this/fY
home purchase loans made by the
amount was lent on houses which
building

ings,

many states

$5,200,000. Surplus and reserves over

over

Write for free
or

of

accounts

Investment

solicit

We

one-third of the

Fully

Individuals, Trust
Officers, Administrators, Guardians, Life and Fire Insurance
Companies and other Trustee Investors.

0

and Loan

S.

and

United

Kirkpatrick,
Mr.

•.

States

League, Chicago.

inflated property

the books of the

values of the
minority

on

savings and loan

institutions, and the new borrow¬
ers of the 1930s became the domi¬
factor, there was an entirely

nant

picture with regard to
delinquencies.
The war economy
to date
has been characterized
changed

by

increased

eagerness

to

pay

rather than any reluctance or

in¬

ability.

happens

stitutions competing in a

that in¬

declin¬

ing market like the present take
some

unwarranted risks to employ

the funds which flow back

than
loan

schedule.

faster

The savings and

remembering

associations,

1932—-after all they have been in

Morton

the

Savings

for

business of mortgage lending
111

years—are

their former rigid

maintaining

loan standards

that

Con¬

raise from 75,000 to 500,000
the authority Jor_ planting
The shrub will be cul¬
huge plantations in

guayule.
tivated

on

parts of California, Arizona, Tex¬
and

as

New

Mexico.

"The testimony made

the

public by
Committee

Appropriations

yesterday did not indicate where
the

processing

plants

be

would

located, although it was assumed
they might be built in

or near

guayule growing areas.
"The appropriations
not

into

go

did

group

discussion

a

the

I;,
of thq

synthetic rubber plans, to involve
millions of dollars, consider¬

many

ing only the Agriculture Depart¬
ment's request for $19,000,000 ad-r
ditional immediately for quick ex¬

guayule

of

pansion

cultivation;

The government already

vided $13,000,000
"In

the

has pro-i

for this program;

asking for

C. M. Granger,

the $19,000,000,

assistant chief of

Department's Forest Service,

said, Tt will take about $100,000,000

that

more'
will

to

plant

result

all

from

the stock
a

larger-^

than-expected production of seed
this year, and to
essary

'put

up

the

nec^

factories and get the rub-*

ber out of the shrubs.'

"Mr.
ture

sometimes

It

ncres

asked

officials

"The
gress

Granger said the Agricul-t

Department

88,000

acres

of

hoped to

plant

guayule

next

spring, and he predicted the

na¬

tural rubber production from the
shrub in the fall of 1944 would be

33,000 /tons

instead

of

13,000

originally expected."
Senate
increased

passage

as
,

of the bill for

planting of guayule

was

referred to in these columns Oct.

1, page 1169.

.

.

<r
,

Volume

156

Number 4118

THE COMMERCIAL & FINANCIAL CHRONICLE

1435

Savings-Loan Ass'ns War Bond Buying; Aids
War Financing / Controls Inflation Tendency
By FERMOR S. CANNON, Indianapolis,

bond

President United States Savings and Loan League
:

Purchase
associations

of

Government

has

been

of financial

system

bonds

of

one

the

institutions

by savings, building and loan
phenomena of this

characteristic

since

mid-July,

1942.
In the past
14 weeks they have increased their total
holdings by 68.7%.
This
estimate is made on basis of reports from
1,675 associations, repre¬
senting about 50% of total assets.
They have invested since July 1,

$60,385,000 in Governments, in-<8>cluding Series F and G War Bonds. insitutions which
Back of the movement has been

the

concerted

ficers

of

ings

the

and

program of the of¬
United States Sav¬

Loan

League working
through leading savings and loan

had

inflow of

an

money increasingly greater than
;their demand for mortgage loans,
the business which is primarily

theirs. ,« The

turning

choice

the

between

was

investors

of

new

away and saying,
have no use for your

"Sorry,
funds,"
or
finding some other outlet, safe,
sound and paying a dependable
return.
On the other hand, here
was
the Treasury of the United
States, asking for billions of dol¬
money
we

lars to- overcome, for the sake of
our continued
existence, a ruthless
and

powerful combine of nations.

To those of
of that

saw

both sides

picture there

do

to

who

us

was nothing
both sides to¬
channel savings and

except

gether,

and

put

loan funds into Government bonds.
The purchase of Series F and G

War

Bonds

limit

for

to

up

the

$100,000

purchase drive as just a
preparation
for
a
substantially
larger goal in 1943.
As long as
the

lasts

war

there

will

be

for

challenge

to our institutions to
take whatever money comes their

invest

way,

loans
and

it

where

in

the

channel

it

sound

Government

Trustees, Insurance Companies, Public Bodies, etc.

bonds

to help finance the
war,
wherever home buyers or builders
of war housing do not seek such

Consider

financing.
Back of the patriotism and the
need for a sound outlet for funds

which

are

coming into the

role
the

of

we

another

can

against

inflation

has

in

be¬

Savings and loan
institutions are profoundly inter¬
ested in
preventing the dreadful
spiral of rising prices which eats
up

man's

a

investment

sis.

We

know

that

with

1

association executives
in each State.

goal

'

For Insured

a

empha¬
every bond

investment

your

money.

chairmen

as

They placed their

for .the

ate $100,000,000

last

half of

1942, and divided it; on a
basis of assets, into separate goals
for the various States.
Already
have

States

15

gone

their

over

quotas, and where this has hap¬

pened '/the
chairmen
are
working hard to get as far

.

still
over

the

goal as possible..
In. the main, the associations of
this type have not hitherto been

concentrate

sion

of

this

which is

The,

on

comprehen¬

field

of

to

many

new

so

investment

of them.

thing of which they can
always be certain is that the li¬
one

quidity

which

their

require at this time
than

institutions

urgently
is mate¬

more

in

ordinary times
rially enhanced by the ^possession
of an increasing amount of Gov¬
ernment obligations in their port-,
folios.

L\•

and

we

heavy

investors

bonds.

Some

have

Government

have

owned

never

to the present crisis.

any up

stuck

home

in

close

to

financing

their

They

role

institutions

as

and

there has been little to urge .them
into the Government bond market

until

Many institutions, it
is true, owned some Government
now.

bonds

secondary line of li¬
and probably most of

as

a

quidity,
them at

time

one

another held

or

HOLC bonds

exchanged for their
casualty mortgage loans of the
1930s, but it has never been a

practice

obligations

of

the

under

operate make

no

U. S.

as

sioned
us.

did

we

a

invested

the

because

fearful

present

envi¬

we

and

wonderful

thing, to executives whose expe¬
rience has not taken them into its
hitherto.

confines

how

knows
risk for

to

That

judge

a

a

man

character

mortgage loan does not,
he himself too often feels, qualify
him to judge which Government
bonds to buy and when.
' '
-

a

Thus the $100,000,000 bond drive

savings

among

tions

this

has meant

and

latter
some

half

loan
of

institu¬
the

It

has

year

concentrated

tra study on the part of our

utives.

sent

them

ex¬

exec¬

to

the

investment counsellors and to the
shelves

of

literature

on

the

sub¬

ject.
The official publication of
the League has devoted article af¬
ter article to the matter of choos¬

ing which bonds to buy and it has
dwelt always on the

necessity for

buying them.
>

A combination of patriotism and

common

paign

sense

1940.

funds

Such

direction

inspired the

cam¬

which the League officers
on July 8.
Here were

launched




of

the

has

necessarily narrowed
the margin between income and
expenditure in the British institu¬

Their experience has been so salu-'

that

The Government bond market

is often

of

executives

job of education ahead of

a

where it had been 7.2 at the close

tary

campaign is therefore all the more
noteworthy. We set our goal as
low

assets

real

guidepost

to

savings and
feel-they have a

for

:

their

funda¬

policy of helping

mental

the

American

finance

with the savings entrusted
them.
.war

/-The War Policies Committee of
the United States League empha¬

tically

endorsed

associations'
ment

the

program

of

investing in Govern¬

bonds

last

May, saying

larger and larger percent¬

a

age of their incomes. Associations
should offer every encouragement
to the people of their communities
to continue to save every dollar

possible.

This necessitates accept¬

ing all the savings offered by the
thrifty citizens.
It requires the
lifting of all restrictions on the
amounts of

new

money

that

are

offered

will-mean
States

Economic

mortgages.

The

in

sound

excess

of

home
money

received

over
the loan demand
should be invested in
Government
bonds. Associations can make
no

more

direct

or

important

con¬

tribution

to victory than the ac¬
ceptance of all the money offered
and the
investing of the same in
Government- bonds."

Our
upon

1942

by

all

campaign
the

is
leaders

looked
in

you

good

as

and

$5000.00
other

no

equally

return

a

on

ACCOUNT

NOW

Oanielson Federal Savings and Loan Ass'n.

League, in

Phone 377

Danielson, Conn.

any

time since inflationary

confident

that

Mr.3>——

Director

as

of

will

President

speaking

be

of

the

the

for

of¬

savings, building and loan

con¬

>'/'|

ficers of the League. They repre¬
sent the national organization of
the

at

/v

Stabilization

Indianapolis,

Standard federal.

*

—

meets every

standard of
safety for your savings.
Strong,time-tested man¬

The League statement surveying
the effects of stabilization of the

the 6,000,000 investors
savings and loan institu¬

economy on

the

in

agement, ample reserves,

tions, emphasized the relief which
every person saving or investing
money feels when he realizes that
uncontrolled price rises which eat

sound

underlying security,
plus federal insurance for
each account to $5,000,
Liberal income

up

protect you.

to be

too. Funds received

his cash reserve are not going
permitted.
"The
program will
inevitably

as¬

sociations which have among their

contribute

2,000,000 borrowers

of month

by 10th

from 1st.

earn

part of the majority of the popu¬

of

small

"Since
trol
a.

many

properties

there

is

to

owners

for

be

rent.

some

rental

.property

the owner's

from

now

on,

they
have not been in the past several
months of the operations of de¬
fense
rental
provisions
of
the
OPA," the statement read.
as

"Since Sept. 15 has been chosen
the pivotal date for wages, sal¬
and

reasonable

commodity prices, it is
that some adjustment

toward that
in

areas

date should be made

where rents

were

frozen

at levels

prevailing much earlier,
back into 1941," they
"We
hope that this
type of adjustment will be taken
some

even

continued.

under

serious

ability

to

month

on

to

consideration.

collect
a

extra

an

house

he

The

$5

extremely important
property owner whose

not

the

going to be pushed
level

Total

qf the frozen
con¬

trolled around higher price levels
of Sept. 15.
In industrial areas

where there will have been

increases, most of the work¬
and families have the ability
pay a little something addi¬

tional

for

want,

if

squarely,

rent

it
to

small

the well-lined

and

don't

really
to them

is put up
take something
landlord's

purse."

AND LOAN
•735 Soyth

of

Los

none

out
too

ASSOCIATION
Olive ' Street
♦
Ml-2331

Angeles

B.uy War Bonds Here:.

;

•

all savings and
in New
York

dollars

during the

first half

1942,
reaching
an
all-time
high, according to Zebulon V.
Woodard,
Executive
Vice-Pres¬

Do You Have

ident

the

of

New

York

We

Have

This

State

information

Banking Department and the

Our Accounts Are Insured

Loan Insurance Corporation

Current Rate of Dividend 3%

Federal Home Loan Bank of New

York.
The 256
ciations

in

savings and loan
the

State

on

asso¬

June

Writs For Details

AMERICAN SAVINGS

30,

LOAN ASSOCIATION

1942, had total assets of $479,305,390, compared with total assets of
$476,058,641,
is

an

17 East First South St.

SALT

Dec. 31, 1941. This
increase of $3,246,749 for the

six

on

months

of

1942

and

Consistent Dividends

By U. S. Federal Savings and

is

based upon figures received from
the

Paid

Since 1923

League of Savings and Loan As¬
sociations.

Money to Invest?

(Then Consider This)

LAKE

CITY, UTAH

sets

all-time high record.

"A Safer & Better Plan"
For Investors. & Trustees

In The Armed Forces

The Atlanta

some

rent

the

STANDARD

of

an

of

the

State increased by over three mil¬
lion

first

operation costs will be

assets

associations

loan

and

to

on

Savings-Loan Assets
| At All Time Higii

rent date and whose maintenance

ers

thrift

lation," they concluded.

a

and

owns

is

out

small

a

more

con¬

sacrifices, under rent

control, will be tempered

aries

to

the expense of operating

over

to

invested

pay

YOUR

84 Main Street

izing one.group at the expense of
another," said Fermor S. Cannon,

back'

on

will

to

up

of

Send card for free booklet and information

START

war

primarily interested in just what
the title implies, and not in penal¬

in

be

We know

the

to

Byrnes

are

can

3%.

are

that

HERE
insured

are

Savings

be

can

F.

taxes

money

in

attempted.

was

rents

receiving
more
savings accounts than

—

$3,000,000.00

over

trying

price legislation than it has been
trol

to
the institution.
The
committee recognizes that such a
policy will in many cases result

associations

Chicago

small property owner, the officers of the
and Loan League said that the picture is
brighter since, the President's administrative order under the new

as

"The people of this country musl
save

Street

Savings-Lpn League Sees Better Outlook
Property Owner Under Price Control

United

in

part:

inherent

dividends

a

on

FEDERAL

Trying to figure out for the past week what "economic stabiliza¬

V:

tion?

James

vestments, chiefly war securities,
was 10.4, as of the close of 1941.

We know
is

its

For Small

The percentage of the total
of British societies in in¬

•

for

the inflation¬

on

LaSalle

savings accounts here

current

production and prosecution.

"We

loan

investing .in

to

has

basis

lid which

influences

ary

the

sitting at least

to be held down

less¬

of the

mention

which may be .so
response

ened.

obliga¬
along

has gone

demand

turns to their savers and investors.

Governments. Several others plaee
a
definite limitation somewhere
from .10 to. 20%. on the amount of
The

mortgage

associations

possibility, of .their

assets

war

in¬

States

United

' which

and

Government

the

as

for

tions, but in 1941 they were still
adding to reserves and paying re¬

Government.; Many of: the State
laws

in

vestment

tions

channels

more

acquire

them to

among

and

more

are

of the

corner

*

The British counterparts of the
savings and loan institutions, the
building societies, have : become

become

credit expansion.

that

'•w'i

•,/

thus

S.

SAVE

bought by
a
thrift
institution,
pouring investment
funds
into

safe

first

and

request.

Safely and Liberal Return—

no

bought by the commercial banks

associations'

211

Assets

more

the

on

|L'-—:■

must

Fermor S. Cannon

been

offering

our

•—

HI

01

past few weeks.

certainty which needs

Ikr:-"'*.??*

ui

:

increasingly intense in the

come

of

Details

return.

CHICAGO

EBSBf

fundamental

play in helping win

the financial front. The

war on

battle

convenience

current

asso¬

ciations at their best
post-depres¬
sion rate these days is our con¬
viction

the

3%

step in cooperating with the cam¬
paign.
After that the managers

has

1942

year

and

comparable associations by Corporate and Private

All

calendar

by

us

exists,

Government financing, is one more
bond which will not have to be

the

Investment

the hundreds of investments placed with

home

demand

into

Institutional

a

Federal Savings

&
Marietta

Gordon, formerly as¬
sociated with Newburger & Hano,

Loan

Philadelphia, Pa., but who has
recently been acting as Special

to

Assistant to Regional Division of
WPB, has accepted a Commission
as Major, A. S. C., and is assigned
to Washington, D. C..

free booklet, "A Safer and Better

Horace W.

Asociation,

22

Street, Atlanta, Ga., will be glad
send

other

investors,

fiduciaries

a

trustees
copy

and

of their

Plan," describing the advantages
of investing in
insured Federal

Savings & Loan investments.

found out at first hand—that

lot

a

Aid Small Plants In N. Y. C.
[ Advocated By N. Y. Chamber Of Commerce
to

Repeal Of Law Governing Renegotiation Of War
Contracts Urged By N. Y. Chamber Committee \

including public officials,
are
going to have to stretch our
inuscles and^ our- minds before we
which will be at my old job—I am

Federal Agency To
The establishment of

Federal agency in New York City

a

of

share of war contract work for the

larger

a

do what I can by
honest piece of reporting to
job which we
cating ourselves to win this
and

cen¬

propriation.

Generalissimo

also

Chinese

voiced

the

while

all-out armed offensive every¬
where by all United Nations," de¬

increased

China and

the

for

aid

arms

ters"

Russia and "an end to

empire of nations

other

over

addition

In

employable

of

plus

sur¬

manpower,
more avail¬

has

also

York

New

largest

the

to

housing, industrial space, of¬

able1
fice

than

equipment

and

space

The

1

<•

fact

the

is

York

greatest

New
manu¬

country in

in the

city

facturing

that

the

"Despite

peacetime, it has been called upon
to produce only a comparatively
insignificant share of the nation's
reason

is

York

New

that

is

this

basic

The

contracts.

war

a

In the five
boroughs there are 25,000 factories
employing 50 people or less with
city of small plants.

Some

total of 250,000 workers.

a

plants already Mve had to

of the

down

shut

employees due to priori¬
'other
war
restrictions.

of their

ties

reduce the number

or

or

be turned to war

nation's

setting

the

for

agency

of

up

plan

Federal

a

direct repre¬
planning

the

during

sentation

Mem-

stages of war procurement.

Wiilkie Reports

Hill of Buffalo.

"The Chamber believes

that the

G. H.

his

on

Oct. 14

war

for

a

tries and labor and to the expan¬

six

other mortgage

sion of the

city's share in the war

effort, will help materially to ac¬
celerate many phases of the war
retarded through failure

are

now

full

make

to

plant facilities and

manpower."

31,000-mile

the Middle East, Russia and
China.
The last lap of the flight

ing

around the world was

the

by way of

Republic

of

Mongolia, Siberia and Alaska.- He
left

China

and landed

Oct., 9

on

Fairbanks, Alaska, on Oct. 11,
then flying to Edmonton, Alberta,
on Oct. 12 and to Minneapolis on
Oct. 13. After arriving in Minne¬

at

expressed con¬

in Moscow, and
papermen
tries.

of

separate

14

"(2) The second purpose of my
was
to accomplish certain
things for the President.
What
those
things were is naturally
confidential as far as I am con¬
cerned.
On some of them I re¬
ported

back to him while I was
On the others, I have

just made my report.

Roosevelt

President

as

possible.

as

soon

His conference

lasted

dent

an

with the Presi¬
and

hour

a,

half

President

asked
I

me

went

on

the

my

to

missions

tnp

he

when
around the

know, I went for three

chief purposes:

"(1)

to

demon¬
Allies and to a good

The first was

strate to our

that

so

the

it will hold.

peace

won

won

—

which follows

was
me

Pacific

Coast

Nielsen,

States

Denver,

of winning this war,
own idea.
Nobody

Ward

elected

Moun¬

Feemster,
Vice-Presi¬

Southwest

States,

Lloyd, Cleveland, and
Gauntlett, Chicago, for the

North Central

States, W. A. Cur-

Hartford,

States

and

for

the

Eastern

G.

O.

Gresham, Bir¬
mingham, for the Southern States.
A speech by the retiring Presi¬
dent, Mr. Champ, was reported on
in

these, columns of Oct.

8, page

1270.

on

this

days of rest in Indiana and

few

I

I intend to take a

trip.

I shall

go

to work on what

consider

myself

the

most im¬

I can do—making
crystal-clear reports to
American people.
How long

to do it. How well I did

the

thing

that will

takq I don't know.-

.

,

number of

of Class I
dle

railroads,
of August, 1942,
increase

of

as

according .to

a report just issued
by the Bureau of Statistics of the

!^Pw,—1-A,ftaYe

gain

over

August, 1941,

for

every

Professional, clerical, and

of

12.47;

maintenance

gen¬

of

way

structures, 8.03; maintenance
equipment

transportation
engine,

and

portation

and

stores,

(other

yard),

than

6.38;

(yardmasters,

9.29;

ties

trans¬
switch-

tenders, and hostlers), 11.84;

in

work in whole

war

in

earns

facture

officials

sistants, 6.28;

and

staff

ex¬
as¬

and transportation

(train and engine ,se^ice)u 1L23.

items."

such

of

of

excess

NILE Urges

Patience
On Wage Order Rules

in part,

or

reasonable

a

profit, such profit should
be subject to a high rate of excess
profits tax."

William H.
the

the report also stated:
"To attempt to require renego¬
tiation of the price specified in
at the

contracts

end

Davis, Chairman of
War Labor Board,
issued the following

National
Oct.

on

In part

5

statement:

,

"The National War
has

with

flooded

been

Labor/ Board
requests

only the result of penalizing the

regarding the Ex¬
ecutive Order signed by the Pres¬
ident Oct. 3, providing for, the
stabilizing of the national econ¬
omy.
Paragraph 2 of Title III of
that Order authorizes the Board

most efficient and lowest cost pro¬

'to

ducer, leaving the inefficient and

tions

accounting period when the
profit of the contractor
opinion of the renegotiat¬

net

is in the

officer

ing

high

a

excessive,

result

not

is

can

have

undisturbed.

producer

cost

Such

only inher¬

ently unfair but is destructive of
business morale and its effect in

renegotia¬

the

unless

operation,

conducted

of al¬

tion

is

most

for information

by

men

to increase rather than to decrease

Government's

the

other

costs;

war

in

the exact
opposite of the law's purpose."
The report did not oppose the
use
of
renegotiation clauses in
words,

to

cause

Government contracts where they

voluntarily

were

entered

into,

where the circumstances of a par¬

justified their use
and where the clauses were so
framed that operation under them
involved only a determination of
ticular contract

ascertainable
cost
ac¬
counting facts.
It pointed out
that such clauses were being used
in Government -contracts prior-to
enactment
of
the
present
law
readily

(section
It

of Public law 528).

403

stated that:

v

'

•

.

;

clauses,
however,
should
be
'two-way
streets' permitting adjustment up¬
"Such

ward

as

renegotiation

well

as

experience

actual

when

price

downward in the

demonstrates the estimates of
to

cost

have been in error."
The

report,

which

represents

only the opinion of the Corporate
Management Committee until its
adoption by the Chamber, will be

presented by William de Krafft,
Chairman of the committee, at the
of the Chamber.
referring to the study-

Nov. 5 meeting
An

item

by the Senate Finance Sub-Com¬
requiring re¬

mittee nf the statute

1, page 1177, and the recently en¬
as agreed upon by
the Senate and House conferees.

Nickel Again

Restricted

control over
the metal
to implements of war and other
products certified by the ArmyNavy Munitions Board to be es¬
cently tightened its

nickel, restricting use of

The WPB

tion

order

revised its conserva¬
M-6-B,

which previ¬

ously prohibited use of nickel in
a
long list of products and per¬
mitted use of the metal in all
other

only on specific
This provision, it is

products

allocations.

as

regula¬

and

rules

be necessary for the

may

in accordance with this

decreases

Until this has been done,

Order.'
we

will be unable to answer spe¬

cific

questions.

:\,

,

,

issue these rules and

"We will

regulations as promptly as we can.
We shall try to get them into such
a

form that there will be a mini¬

misinterpretation,; mis¬

of

mum

understanding and confusion,

In

,

addition, the Board plans to is~*
sue
explanatory bulletins,' prob¬
ably in the form, of questions
These bulletins will

and answers.

attempt to answer first the ques¬
tions most often asked.. The rulV
.

ings and bulletins will reach em¬

sociation

through
the
through their trade as¬
or labor union, publica¬

tions.""1-

7

their

daily

radio,

or

"In the

the

employees

and

ployers

over

newspaper,

"7""

T

1

meantime,

behalf of

on

fected

am asking every em¬
employee who is af¬
by; this Order to be pa¬

tient.

As

Board, I

ployer and

to

employers and em¬

ployees who are in the midst of
contract
negotiations, their at-tention is called to Paragraph 8
of Title II which says that 'the
policy of the Federal Government
to encourage free collective
bargaining
between
employers
and employees is reaffirmed and

y

.

.

continued.'

.

"We

respectfully request em¬
ployers
and
employees not to
write,
telegraph
or
telephone
Washington
with
specific
in¬
quiries for a few weeks, and not
to
do so then until they have
tapped
all
authoritative
local
sources

be

It would

of information.

impossible for

because of
a shortage of time and personnel;
to answer personally each of the
thousands
of
inquiries," "which
would

Production Board re¬

The War

such

issue

speedy determination of the pro¬
priety of any wage increases or

superhuman wisdom, will be

"By

were

the

above

followed.

this procedure,
employees
will

and

up our

if

us

not

following

employers
speed

to

come

procedure

us,

work and aid in the

prosecution of the war."

United Fruit Looks Good
United Fruit Company offers at¬
tractive-possibilities for apprecia¬
tion based on post-war prospects,

according to

an

interesting

orandum just issued
ton

&

mem¬

by E. F. Hut-

stated, is retained in the revised
However, the general ex¬

New

York

removed from these

New

York

other

leading national exchanges.

emption

is

restrictions in favor

of the armed

forces, A-l-K, or better orders,
and where necessary for compli¬
ance

ecutives,

include facili¬

equipment used in manu¬

or

that

order.

train,

This in¬

operations.

The term does not

sential.

reporting group.
The percentages of increase were:

and

that

if, during the war period, any
business, whether or not engaged

was

shown in the number of employ¬

eral,

•

It further believes

sonable.

compared

corresponding month of
1941, and 0.46% over July, 1942,

ees

•

believes

Chamber

tactical

cify prices which are fair and rea¬

1,322,435,

was

with the

A

The Commit¬

war.

that

profits should be

aircraft,, ammunition, ar¬
mament, ships, tanks and other
military vehicles, and parts to be
incorporated in such implements.

after

years

of its departments should spe¬

any

employees
of the mid¬

9.55%

made

York

cludes

acted tax bill

Employees Increase

,

The total

an

three

when

to

as

tor

con¬

negotiation of war contracts was
referred to in our issue of Oct.

Number Of Rail

making a re¬

careful,




the

C.

New

of

<$>-

it

contracts with the Government or

Norman R.

Some

I have a plane waiting for
me now at the airport, to take me
back'to New York where I started

my

will havp to ask
offi¬
the people and the news-,

for

V.

Aksel

and

Interstate Commerce Commission.

y

.

written form before

portant

purpose

cials,

be

from Moscow and
from Chungking.
A lot more I
want
to
formulate and
put in

the

it you

can

have found out a lot.

"I

then

asked

it

quickly so that we can get back to
our jobs again, and won securely

neutral countries that there
is unity in the United States on
many

This

and for the

people, about this war

port.

"As you

W. A.

and

Moir, Los Angeles, was reelected
regional Vice-President for, the

/

the, from, Cairo,

world.

.

:

of it I have already reported, back,

to fulfill;, for him

on

how

and

after which he issued the follow¬

ing prepared statement:
"I
have just reported

-

■

"(3) The third job I set out to
do was to find out as much as I
could, both for myself

port

Pittsburgh,

still abroad.

American

requesting that he make his re¬

coun¬

trip

dential candidate received a tele¬

from

Stanley
H.
Trezevant,
George
H,
Doven-

Scott,

tin,

apolis,'.the 1940 Republican Presi4
gram

Louis;

L. E. Mahan, St.

are

.

tour
took him to 13 countries includ¬

through

They

the missions he had performed for

Nations.

China

terms.

Clarke, Philadelphia. George H,
Patterson, Chicago, was reelected
Secretary and Treasurer. Wallace

Tc Presides! On Mission

front, affirming what he had said
fidence in victory for the United
Willkie's

bankers were
selected for that body for similar

H.

Wiilkie renewed his plea for- the

Mr.

expiring in 1946 and

muehle,
Chicago;
Frank
C.
Waples, Cedar Rapids, la.; John

available

of

use

term

which Memphis;

nation

the

of

production

conference following his talk-with the President, Mr.
speedy establishment of a second

At a press

was re¬

elected to the Board of Governors

reported to President Roosevelt at the White tain States.
the President
Wichita, was
flight around the world.
1 ■
'
dent
for
the

on

survey

Galbreath, Tulsa,

adoption of this plan, aside from
its direct benefit to local indus¬

Wendell Lj Wiilkie
on

election fol¬

The

nominat¬
ing committee headed by Dean R.

y-—Renews Bail For Second Front
House

Frederick P.

succeeds

lowed the report of the

center.

here which would give the

small plants

city's

the

meet¬

Champ, Logan, Utah. Herold G.
Woodruff,
Detroit, was elected

manufacturing

greatest

any

report said:

"The

final

Wartime Mortgage Fi¬

on

Vice-President.

made New York the

have

which

annual business

He

nance.

production and manpower
of the thousands of small plants

production."

Chamber

the

ference

a

fort the

On Oct. 8 Commissioner Sloan
outlined : to the Executive Com¬
of

is

plan

tee in its

of any

ing, recently held in Chicago, in
connection with three-day Con¬

practical ap¬
proach to the solution of the prob¬
lem of mobilizing for the war ef¬
"The

1,

A.

tion's 29th

adop¬

the report of the Chamber

Committee said:

i

mittee

Business

urging its

In

13.

Oct.

tion,

Oct.

Mullenix, President
of
the
Cuyahoga
Estates
Co.,
Cleveland, was elected President
of the Mortgage Bankers Associa¬
tion of America at the organiza¬

was

lems of American Small
on

re¬

were

Mortgage Bankers

Charles

Production

placed before the Special
Senate Committee to Study Prob¬

Many more will have to close in
the next few months unless they
can

Of

Board
Smaller War Plants Corp.

and the
and

front

columns

Mullenix Named Head

been submitted- to

War

the

the end of the

Government

completion.

to

stages

plan has

both

these

Mos¬

manufacture from

the

the, initial

.

in

in

1173.

page

and to retain established
engineering firms to sub-contract
the work, supply the engineering
knowledge to small plants and

second

a

ported

plants

said:

on

cow

remarks

State

the ground, among others*

on

normal

Willkie's

Mr.

were

as

the Army and Navy
be made in
local

by

supervise

11

nations."

could

which

other city in the country, the
report pointed- out. - The report

any

items

such

for

tracts

until

condition

an

manding

it

that

and

impossible for

He

opinion

the

criteria

or

tractor to know his true financial

Kai-shek

leaders.

of

criticized

was

definition

no

made

there that "the time has come for

■* v

needed

other

and

contained

execessive

conferences with

Chiang

Commerce

deemed

be authorized to

of last month.

war

;'

peace."

held several

he

Coordinating Corp. would
take prime con¬

The

throughout the country, there
were
upwards of 300,000 regis¬
tered unemployed in the city as

the

of

law

The

tiation.

it

spent six days (Oct,
2-7) in Chungking, the war-time
capital of China. During the visit

which
the
of
Mayor LaGuardia,
wbuld have to close down or dras¬ direction
calls for the creation of a Fed¬
tically reduce employment in the
agency
which would
be
next-'few
months
unless
they eral
could secure war work, the re¬ known as the New York City Co¬
port' Which was drawn by the ordinating Corporation and would
be a subsidiary of the Smaller
Committee on Public Service in
the
Metropolitan District,
said War Plants " Corp. and financed
from the latter's $150,000,000 ap¬
that, although there was a labor
shortage in war production

my

Mr. Wiilkie

out under

worked

been

win

to

Chamber

The

public on Oct. 15 an interim report from its Special Committee on
Corporate Management urging repeal of the law providing for the
recapture of excessive profits on Government contracts by renego¬

an

help in this new
all face of re-edu¬

Commissioner Sloan's plan,
has

to

fellow-citizens to

public by the Chamber of Com*^—
——T
of the State of New York bers of the Chamber Committee
were favorably impressed 'with it.
on Oct. 18.
Warning that many more small
in the five
boroughs

Before I go back to work—

going

merce

factories

us,

win.

thousands of
small plants in New York, as proposed by Commissioner George A.
Sloan of the city Department of Commerce, was urged upon Donald
M. Nelson, Chairman of the War Production Board, and Lou Holland,
head of the Smaller War Plants Corp., in an interim report made

obtain

for

Thursday, October 22, 1942

THE COMMERCIAL & FINANCIAL CHRONICLE

1436

is

with

safety regulations.

It

further stated:

"Implements of war are defined
as,;Coipbgt epd-promts,xoip^eje

Company,

61

Broadway,

City, members of the
Stock

Exchange

Copies of the memorandum

and

con¬

taining interesting information
United Fruit may

be had

on

upon re-

quest(from E,J?\ Hutton^ Co;,

Volume

Number 4118

156

THE COMMERCIAL & FINANCIAL CHRONICLE

Term Ins. & War Bonds
A plan for combining the pur¬
chase of life insurance and War

Savings Bonds in such
both

be done at the

can

and still
surance

a way

that
time

same

keep within a normal in¬
premium budget is being

offered by the Church Life Insur¬

Corporation, a wholly-owned
subsidiary of The Church Pension

adaptable to housing are experi¬
encing increased demand. We can¬
not accurately visualize the future
in terms of changes in the econ¬
omy which will occur within the
lifetime

of

the

as

our

mort¬

that

so

ings

Fund of the Protestant

Church.

In

Episcopal

brief leaflet

a

be

to

which
can

is

investment

an

as hereto¬
Its gold hold¬

pay,

their

present value
will
continue
to

at
.

.

Treasury, does not wish to
gold mining in other coun¬
tries by discontinuing the
pur¬

For

put into War Savings Bonds and

gold is almost the only

result

if

as

had

he

form

permanent

more

and

ance

taken

out

a

insur¬

of

later, without fur¬

can

ther medical examination, resume
a normal insurance
program after
the need for the purchase of War
Bonds is over. Thb leaflet states:

"Although
term :: insurance is
hormally designed for temporary
protection we are now living un¬
der conditions which

mal.

are

not

nor¬

The great need and

patriotic
duty of every American citizen is
now to buy as many War Savings
Bonds and Stamps as he possibly
can. We are properly urged to re¬
duce everything to essentials in
order that the United Nations may
have at their disposal the means
for

successful

a

prosecution of

and

relentless

defense of civ¬

our

ilization

and
Christianity
until
victory is won. |At the same
time, the protection of one's home
and family must bei maintained.

final

of

gold,

since

this

could

serious effects which

have

might

out-weigh

the

advantages

derived from it

Production

Board

miners

in order

and

available
sidered

to

for

mining

work

program.

The
300

,

order

mines

duced

in

States

'

gold

United

to

territories,

except
mines which previously had been
accorded
preferential
priority
treatment by the WPB because
of their

by-product output of such

war-essential
lead

and

mines

Fees In War Contracts

is pro¬

continental

200

metals

zinc.

as

copper,

Certain

small

were

excepted.
The gold mines are directed to

halt

operations "at the earliest
possible date," and at the latest to
stop breaking out new ore after
Oct. 15.

Although all must stop
within 60-days, minimum
activity
necessary to keep buildings and

MOVIES
If

you hanker for nostalgia and such
songs as "Oh, You Beautiful
Doll," "By the Sea, By the Beautiful
Sea," "Where Do We Go From
Here, Boys" and other relics of a few decades
ago, then don't over¬
look "For Me and My Gal"
(MGM). It's a grand yarn, well told and
excellently portrayed by Judy Garland, Gene
Kelly, George

Ben Blue

that

and others.

branch

of

Murphy,

It's

show

story of backstage vaudeville life when

a

business

in

was

its

heyday; the period when
every small-time vaudevillian doing split weeks in
whistle stops
dreamed of the day he would
play the Palace, the New York theatre
which represented the
pinnacle of vaudeville success. Picture
slowly, picks
with

a

begips

tempo, slackens

up

that

scene

bit toward the end but finishes

a

has

everybody in the audience pretending they
have colds.
There isn't a dry eye in the house
when Judy Garland
and Gene
Kelly sing their theme song, "For Me and My
Gal," from
the.Palace stage.
The circumstances under which they
finally ap¬
pear is a fine bit of
directing. Judy Garland flashes a pair of stems
that will have the
boys drooling. Of her singing ability there is no
question.
She's still tops.
Gene Kelly, who was such a hit in "Pal
Joey" and a new Hollywood acquistion, is
grand as the heel with

the
.

which

and

of

by

for
imports from the United States."
pay

war

..

from

in

means

to

con¬

affects

the

shipment

able

equipment

essential to the

more

the
is

be

the

make

some

Russia

to

other grounds.

on

instances,

which

on

Oct. 8 ordered gold mines to halt

operations

in¬

halt

chase

War

and

slower rate

a
.

being given wide distribution,
insurance,
which normally is considered only
as
temporary
protection,
costs
much less than the usual types of
policies but if the difference is
The

•

"The

as

be found."

it points out that term

Stamps, the individual will ac¬
complish approximately the same

1437

in

$22,000,000,000 will

over

crease, although
than heretofore.

generally continue

sound

as

it will

an ounce.

probably

the homes of American

citizens should

of

retain

mort¬

reasonable

which

for

ance

on

'■

fore, $35

unit, the

tected

added

7

rican, Canadian and Russian gold

need for home
and home ownership will be pro¬
gages

Oct.

"For the time being the United
States therefore, will continue to
be the great market for South Af¬

social organization is based on the

family

advices

part:

making today but so
national concept of

gages we are

long

residential

ington

heart of a ham who later redeems
himself.
George Murphy, as
the Ola Dog Tray, the guy who
loves Judy but backs out in favor

of Gene
of

Kelly, gives

faithful interpretation.

a

Ben

the vaudeville

Blue,

Price

business, is fine in his limited scenes.
Voyager" (Warner) gives Bette Davis a dream
role.
In

which

the gamut of all human emotions.
best seller (title taken from Walt

Instructions

which

will

guide

Adjustment Boards in deter¬
mining the circumstances under

advertising expenses may
figured as allowable costs in

be

contracts

war

were
made public
by Chairman Donald M.

Oct 7

on

Nelson

of

Board.

the

The

contained

in

War

Production

instructions
letters

were

sent

to

top

procurement officials of the War

Department,
and

U.

S.

Navy

Department

Maritime

Commission.

Broadly speaking, the instructions
lay down these policies:
*
"On
cost-plus-fixed-fee
con¬
tracts, the costs of advertising
placed for the sole purpose of sel¬

Based

graduate

a
.

.

Olive Higgins

on

.

"Now,

it she

runs

Prouty's

Whitman's;poem) it tells about a
dowdy spinster, of say 30, who is driven to a life of seclusion and
madness by her mother's
tyrannical dominance.
It isn't until
psychiatrist Claude Rains diagnoses and
prescribes treatment that
she comes out of her shell.
On a long sea voyage she meets and
falls
near

in

love with Paul Henreid.

Henreid rushes her, but
being married,

friendship remains platonic.

His small daughter displays the same
intraverted tendencies Miss Davis had before her
treatment and is
sent to Claude Rains for attention.
When Miss Davis returns home

she refuses to lead the life her mother
cut out for her.
Her mother
dies, and Miss Davis blaming herself for her
death, is on the verge
of a relapse.
Returning to the sanitarium she meets Henreid's daughter where she
forgets her own troubles in an effort to

000 men are employed in the
gold
mining industry and that 3,000 to
4,000 will be made available for

be classed

ing, however, which properly can
as an
operating expense

help the child;
amusing tale, though an in¬
teresting one.- There is little comedy to relieve the grimness of a
story of a warped mother love and the damage it causes. Bette
Davis,
the gloomy, semi-hysterical
psychiatric who blossoms out, is com¬
petent as always.
Paul Henreid is suave as the man in the case.
Gladys Cooper, the dominating matriarch, is magnificent in an un¬

incurred

sympathetic role.

that at age 40 the cost of a 10-year
convertible term policy is about

essential

may

erations.

be

43%

The States most affected by the
order are California, South Da¬

who is in doubt

Insurance is not

luxury.

a

It is

a

necessity to the great majority of
people." ' r-'}?;-;.
" .v"
Illustrative

•

the

leaflet

of

life
of

are

given in

showing, for instance,

the

policy

the

ment

rates

and

cost

of

cost

of

policy.

;

a

an

ordinary

only about 11%
10-year endow¬

Although

term

in¬

equipment

in

repair

and

the

workings in safe condition will
permitted.
It is estimated that

be

ling goods

4,000 to 5,-

non-ferrous

mining

op¬

kota, Colorado, Montana, Nevada,
Arizona

and

Utah.

The value of

surance, it is pointed out, has no
cash or loan value and becomes

gold mined in the United

payable only in the event of the

policy term:, the pur¬
chase of War Savings Bonds and
Stamps with the saving in pre¬

in 1941.
The United States, pro¬
ducing about 13% of the world's
gold supply, is the second largest
producer in the world, the Union
of South Africa being first.

mium will gradually build up an
equity somewhat equal to the cash

nouncement,.

death

the

of

assured

within

the

specified

and

loan

value

on

the

more

ex¬

pensive types of insurance.
"The

Church

Corporation,"

Life

Insurance

the

Simultaneous

with

this

Paul' V.

Chairman of

the

War

Nutt

its

rates,
proposal

the

insurance

term

low

be

used

con¬

that
more

widely during the present emer¬
gency for the purpose of main¬
taining
an
adequate
insurance

and, at the same time,
promoting the purchase of more
War Savings Bonds and Stamps."
program

to

be

seek jobs

said

in copper and other

that

these

Mr. Mc¬

miners

will

given aid in finding work in

non-ferrous

mines

transportation
locations.

and

The

given
to

expenses

WMC

new

directive

instructs

Exemption Urged For
Retiring Realty Debt
With

rapidly increasing taxes
depressing the value of rental
properties and in many instances,
jeopardizing the ability of larger
home

owners

to

maintain

their

consideration
"reasonable tax
exemptions for debt retirement,"
Frederick
P.
Champ,
retiring
President of the Mortgage Bank¬
holdings,

serious

should be given to

Association

ers

of

America,

told

members of the Denver Real
tate
on

come,

7.

"The siphoning of in¬

and in fact the liquidation

of

capital, which will occur in the
financing of the war, will lessen
the accumulation of venture
ital

and

thus

affect

cap¬

activity

in

speculative
real
estate,"
Mr.
Champ said. He added:
"Unimproved
property,
faced
with the prospect of idleness dur¬
ing the war, will become less val¬
uable
while
older
properties




worker in

connection with

gold mining, except

upon

of such worker to such

referral

employer

"In

'The
tions

substance
in

letter

of

the

order

the

marshaling of

be

whole

stayed, "at
subject of

manpower

and the

allocation of labor may be consid¬

ered," according to the Associated
Press.

Released by Senator McCarren

Nevada, the letter told the
President that the order would re¬
lease only a few miners for work
in

strategic metal mines but would
disrupt the economy and morale
of gold mining areas.
•*
Incident

to

the

shutting

of the gold mines it
have been learned in
on

Oct.

7

that

the

was

down

said to

Washington
purchase

of

for

advertising; and their defin¬

ition

of

will

'reasonable expenditure'
substantially the defin¬

be

ition

previously announced by the
Secretary of the Treasury.: The
Boards

to

are

a
company has been
in large part converted

or

work, fairly sharp limits
placed on such expendi¬

be

tures.
.

'

"When

being

a

,v:'y ■
fixed-price contract is

negotiated, field procure¬
frequently request

breakdown

of

costs.

ate cost

to

York

as

a

separ¬

determine

exactly

advertising expendi¬
be charged against

/ .,y:..

places I've visited Zimmerman's Ilungaria
(163 W. 48tli) is the most surprising. From a
fairly modest entrance
you go down a few flights of stairs into a bedlam
difficult to de¬
scribe.
People stand four deep demanding tables in a room
big
enough and crowded enough to look like Grand Central Station
at
the rush hour—There's a floor show

(an elaborate affair, I'm told)
never got close
enough to see it until it was almost all over.
food, however, is excellent.
A house specialty, chicken
paprikash, is something to go out of your way for. Dinners
begin at $L
Dancing is continual if you can manage to get on the
floor, which
seems as jammed as the
dining room itself.. The Hungaria is ob¬
viously popular with people celebrating wedding anniversaries or
giving going-away parties to newly drafted men.
It also seems to
have quite a following
among family groups.
Table upon table was
but I

The

.

filled with
tire

mothers, fathers and their children.

place is Zimmerman

Budenny mustache.

54th) is

himself.

But

even

<

You'll

Dominating the

en¬

spot him by his Marshal

his

as

Mr. Nelson

pointed out that

can

govern all cases,
eral the rule of

Production

on

verted to

war

preserve

marks

The

Oct.

page

The

.

(it

out and

opens

can

must

case.

Board,

ap¬

The

he

said,
arbitrary
undue

manufacturers

con¬

work who desire to

decision

Charles

Wright),

a

war

1359.

(Weylin

Hotel, 40 E.

pretty dark-haired, blue-eyed colleen, sings pleas¬

antly.

After 10 at night the program becomes
then that Charlie Wright, Muriel
Byrd and

more

ambitious.

It is

Billy Martin come on.
accordian, has a repertoire of

Wright, accompanying himself on an
delivery it's a treat to hear. His saga of Maxie and his
taxi will keep you in stitches.
His recital of the family Ramsbottom
songs and a

and

their

visit

to

the

will

make hearing the words difficult.
Muriel Byrd sings and plays the
piano,
and quite well too.
Billy Martin, with a Greek God profile, fills in
with more piano, but quite
competently.
The Penthouse Club
(30 Central Park South), in addition to its other

Everybody laughs

zoo

loud.

so

.

.

.

attractions, is now
boasting THE Miss California of 1940, a Miss Suzanne Daye.
Miss
Daye, besides being something to look at—blonde with blue
eyes and
figure

a

which

has

the

boys

bugging out their eyes—sings. Her
work

sounds

sional.
who

completely

After

sing

in French,

other

profes¬

listening to people
Spanish

language,

hear

somebody

tunes

the

to

sung,

be

Miss

way

Suzanne

Marian

a

sing

they

30 CENTRAL PARK

SOUTH

Adjoining The Plaza

pleasantly

relief

my

were

A

to

American

meant

a

most

unique restaurant in

beautiful location, overlooking

Central Park

to

the north.

without accents. And

quirements.
a

it's

The Penthouse Club

or

Daye

fills

the

re¬

So what, if she isn't
Anderson?

She's

Serving

best

food,

skilfully

prepared.

a

Entertainment after IIP. M.

Venus de Milo!

to

Bar

you for a loss if you're not
careful)
During cocktails Dawn Roland (nee Mrs.

comprehension,

reason

Weylin

throw

and that in gen¬

allow

contracts

reported in these columns of

15,

.

hideaways which is actually
you,can negotiate the small outer door

no

goodwill.

WPB's

.

you'll find it worthwhile.

some

their investment in trade

and

door.

enough but completely outside

does not wish to set up
rules which might work

hardship

the

one

be laid down to

ply in each particularWar

at

of those pleasant East Side
intimate as it claims.
If

particular contract."

advertising fees in

New

such

item, since it often is not

what part of
tures should

was

The

In

manufacturers should in¬
advertising expenditures in

clude

discontinued.

reporting this in Wash¬

■_

officers

cases,

a

however,

where

war

can

instructed,

gold by the Treasury is not to be
"Times"

TOWN

the West Side

inhibitions

allow

set formula

of

Of all

an

prepossessing appearance doesn't
dampen the ardor of the celebrants who seem to have checked their

they will note the sums
for advertising; they will
a
'reasonable expenditure'

practical

WPB

instruc¬

ABOUT THE

not

tractors

that

until

!

"Now, Voyager" is

spent

overhead rather than

a

fix¬

on

"When Price Adjustment Boards
review the profits of war con¬

public on Oct. 13 against
closing of gold mines and asked
least

are

regard to such expendi¬
briefly as follows:

tures is

a

a

admis¬

different-classification

a

management expenditures
ed-price contracts."

Service."
to President Roosevelt in

the

advertising expenditures paid for
of the
contractor's fee,
on
cost-plus-fixed-fee contracts, or as
part of the general overhead and

ment

made

contractor

a

to

as

out

by the United States Employment

Twenty-one Senators protested

and

tracting agency with which he is
dealing.

wholly

nance

In¬

of such expense should
take the question up with the con¬

that

Es¬

Exchange in a recent address

Oct.

admitted;

River,

any person who on or af¬
Oct. 7, 1942, has left employ¬
ment as a production or mainte¬

inadmissible.

for
reasons
of
policy,
under certain circumstances

employers not to "hire
in, or hire for work in, Alaska or
any State west of the Mississippi
ter

or

sibility

McNutt,
Manpower

facilities

of

an-

Commission, issued a directive
which, in effect, forces miners re¬
leased by the gold mine
closings
vital non-ferrous mines.

and

institutional advertis¬

andpossessmns.waa$290,174,600

leaflet
con¬
cludes, "urges upon those who are
eligible to take advantage of its
sideration

States

are

dustrial

It is obvious

Keep

Victory

Is

Em

Rolling

Nearer

Every Day!

Telephone FLaza 3-6910

Flotations

Calendar of New Security
STOP NUT CORP. /

ELASTIC

filed a regis¬

statement with the SEC for 50.000
of 6%
cumulative convertible pre¬

shares

and 178,572 shares
of common stock (par $1), to be reserved
for conversion of preferred stock
Address—Union, New Jersey
Business
Manufacturer of self-locking
(par $50)

stock

ferred

—

nuts, etc.

Offering—After
reclassification of se¬
50,000 shares of 6 %
cumulative
preferred stock will be offered
first
to
holders of outstanding
common

curities,

convertible

through warrants at $50 per share,
portion through underwriters

stock,

unsubscribed
$50

at

and

redemption of
(par $100),

cumulative preferred stock

acquire all of the 650 outstanding shares
of the no par capital stock of New England
Pole & Treating Co. $110,000.
to

proceeds of the series M
bonds, the serial.notes and common stock
will be used to redeem at $120 per share
retire

otherwise

or

on

before

or

1,

shares of

unspecified number of

an

Oct.

preferred stock of the company and
the
purchase
and
construction
of
facilities for the carrying out of the com¬
7%

for

,

pany's business.
.
/
Registration Statement No. 2-5024, Form1
.

list of issues whose registration statefiled less than twenty days ago.
These issues

Following is
ments were

a

(6-29-42)

A-2.

Central Maine Power Co. on Aug. 5, 1942,
filed

grouped according to the dates on which the registrar
tion statements will in normal course become effective, that

request with the SEC to withdraw
irt-view of decision to

a

uast indenture data

are

$5,000,000 10serial notes at private sale.
On July
1942,
company' filed an amendment
the

sell
year

days after filing except in the case of the secur¬
foreign public authorities which normally
become effective in seven days.

is twenty

16,

ities of

notes

P.M. Eastern

Offerings will rarely be

DENVER

for

1944

MANHATTAN BOND FUND,INC.
Bond Fund,

Manhattan

Business—Operation

in¬

transport

etc.

ties to offer 33,738 shares of

registration statement with SEC for 1,000,000 shares of capital stock, par value 10

common

&

Fireman's $10

share
Address—-15 Exchange Place, Jersey City,

N.

per

W.

Hugh

—

Long & Co.,
the principal

offer¬

Offering—Date of proposed public
ing is given as Nov. 1, 1942
Proceeds—For investment

shares

~

exchange

Registration Statement No. 2-5051. Form

SATURDAY OCT. 31

A-2.

GRAND FORKS HERALD,

each

mature

will

Bonds

follows:

as

We

$12,000 on

mined

bonds due Sept.

debenture

1944

1,

(10-12-42)

registration statement with SEC for 40,000
shares

of

5%

stock,

preferred

cumulative,
Houston,

produces, purchases
natural gas
in
a
large

Business—Company
distributes
of

cities,

and communities

towns

after reclassifica¬
be offered at $50
per share.
The holders of common stock
(approximately 80,000 out of 158,289) who
have
not
previously
waived
their
pre¬
emptive rights to subscribe for the new
issue of preferred will be afforded a 10-day
period after the effective date of the reg¬
of

stock,

statement

istration
cise such

to

of

of

stock

company

ber

is

shares

company

by

will

the

to

offer

exchange

shares

of

by

the

company

common,

shares

11,000

of

public

par,

stock,

per

will

receive fees and

and

the second

missions

offering

as

the

commissions for

in the State of Texas

will receive fees

managers

and com¬

of the selling group

preferred

stock

outside

of

State of Texas

allocation of the
net proceeds has been made, but will be
added to and become a part of the gen¬
Proceeds—No

eral funds

of

specific

the

'

(10-12-42)

FIREMAN'S
Fireman's

FUND
Fund

INSURANCE
Insurance

Co.

water
of

has

Address—San

value common s^tock

Francisco, Calif.




$5,000,000 ten-

1972;

to

entirely

business,

within

be

sold

rule

of

the

writers

under

the

and

The 261,910
be

to

offered

Fllicott

vice

Co.

take

shares of common are
the holders of the

to

less

shares,

any

ceased

with

filed

the

with

cordance

the

merger

commission

proceeds of the series M bonds will
to

principal and .premium in
at 105% on Oct. 1, 1942,
of $1,494,000 face amount of fi.st mort¬
gage, 4% series, due 1960, of Cumberland
Power, $1,538,060; to pay principal and
premium in the redemption at 105%% on
a

pay

1942 to be announced of $9,275,-

date in

000

amount

face

first

mortgage

bonds,

1966
of
Cumberland
County $9,784,348 and to pay bank loans
made by the company which were incurred
3%%

for

series,

the

due

purchase

facilities

and

construction

of

of the serial notes and the

Net proceeds

will

stock

be

used

to

pay

par

premium in the redemption on a date
to be fixed in 1942 of an unspecifed num¬
ber of shares of 6%
preferred stock and
and

unspecified

number of shares of 5 V2 %

are

of Cumberland County at
110%, respectively, all of which
to be called for redemption by

merger

merger
r

stock,

i

.

f

|

I

.

t

'

t

i

i

ducers

enterprises until thg financial position*
the borrower or a
change in general

to

of

markets open avenues for longer*:
from customary sources
Preston & Co., Chi¬

capital

Underwriter—H. M.

111.,
is the sole underwriter.
The
underwriting commission is $8 per unit * ■<
cago,

July 30, 1942 to defer

Amendment filed,

effective date

'

class

Offering-—The
of

units

in

sold

;

r

4

at

be

to

unit. With at least the first 90C
there will be included with each
4 shares of common stock; thereafter

unit

each

unit

class

of

stock

A

tion

.

•

.

of

;'ri'

;

with

the

stock,

common

-

1942,

to defer

$1

value

par

POWER

Power

ing

Fund

Michigan Ave., Chicago
Business—The company is engaged in the
distribution
and sale of enamels, paints,
varnishes,
and

linoleum

kindred

distributed

lines,

The

finish,
which

the

under

Enamel."

$100

Bonds

and

shares

Par.

Oct.

Interest

Debentures,

the

due

Cumulative

preferred

1, 1950;
Preferred

rates

on

the

and the dividend
stock, will be sup.

plied by amendment
Address—25

S.

E.

Second

Ave.,

Miami

Fla.

Business—This
Power

&

Light

subsidiary
(Electric

of

Bond

American
&

Share

System) is an operating public utility engaged principally in generating, transmit'
ting, distributing and selling electric en.
(also

ergy

serving
east
of

manufacture

most

of

and

sale

of

gas)

the

territory along the
(with exception ol
Jacksonville area), and other portions
coast

of

Florida

Florida

Underwriting ana Offering—'The securi¬
registered are to be sold by company
under the competitive bidding Rule U-50
of the SEC's Publio Utility Holding Comties

Act.
Names of underwriters and
price to public, will be supplied by posteffective amendment to registration state¬
ment

to

%

engage.

have

new company also plans to issue and
outstanding $2,910,000 of first mort¬

serial

The

stains, polish
are
principally

trade

the com¬

statement

The

the

com-

new

conversion

of

the

pro¬

shares.

common

*

Registration Statement No. 2-5041. Form

'

(8-28-42)

A-l

effective

Registration
23,

Sept.
THE

tion

and

specifications

Underwriting—Floyd

Cerf

D.

Co.

is the

principal underwriter.

5

EWT

p.m.

on

1942

Lloyd and all or any part of 34,000 shares
from Gladys

Lloyd.
There is no firm com¬
purchase any of said shares.
underwriter has agreed to
pay a finder's fee to American Industries
Corp., Detroit, Mich., in the amount of 5

The

stock pur¬

cents for each share of common

chased

underwriter from
Offering price to
public will be supplied by amendment

by the principal
the selling stockholders.
shares

to

be

offered

are

already issued and proceeds will go to the
individual sellers of the sharesA-2.

~

Registration effective 5:30 p.m. EWT on
1942

14,

registration
Southern

GAS CO.

Union

plan)

Offering—The 6,000 shares registered are
and outstanding and are being of¬
a corporation and

issued

fered for the account of

Gas

with

the

supplied by amendment.
Proceeds—The registrant
ceive

go

for

(the latter to

Co.

be

Gas

Co,

common

stock,

value $1 per share.
The name of the
registrant will be changed in consumma¬
tion of the merger, plan from Texas South¬
western Gas Co. to Southern Union Gas Co.
Address —1104
Burt
Building,
Dallas,
par

7

"

f*

'•

'

1

Business—Primarily engaged as an oper¬

price

be

to

to re¬
which will

Is

not

the net proceeds

of

any

to the selling stockholder.
.
'
Registration Statement No. 2-5035*—Foriti

S-2.

(8-13-42)

Oct.

filed

1942,

6,

to

defej-

effective date
*

Oct, 9
filed
an
amendment
to its
registration statement
which places the number of shares of 7%
cumulative preferred stock to be offered
at 5,496 in place of the 6,000 shares named
in original registration statement
Trion

The

filed a

SEC

The

stockholders.

individual

paid for the stock by the underwriters and
the
offering price to the public will be

:*

Co. has

corporation in a proposed
covering 240,584 shares of

Union

Southern

Gas

statement

surviving

merger

....

UNION

Southwestern

Texas

.

/

plant at Trion, Ga.
Underwriting—Courts
&
Co.,
Atlanta,
Ga., is named principal underwriter, Other
underwriters will be named by amendment.

Amendment

share

per

fabricates

and

-

manufactures,
fin¬
cotton goods in
its

Business—Company
ishes

stock,

preferred

value $100 per share,
Address—-Trion, Georgia.~

(8-1-42)

Sept.

cumulative

7%

of

shares

to

principal

Proceeds—The

Company has filed a registra¬
with the SEC for 6,000

statement

par

principal underwriter is
granted the option, until close of business
Dec.
3If 1942, to purchase at $1.50 per
share all or any part of 72,500 shares of
common stock of the company from C.
L.

mitment

COMPANY

TRION

The Trion

Offering—The

$2

ultimate

for

them
ducers

formulae

the

-

that

says

has no present intention of issuing
preferred shares,
planning to
hold

the

"Nu-

name

sold by

products

bonds,, maturing from 1944 to
will carry an interest rate

which

varying from 2 to 5%

manufactured
by
Armstrong
Paint & Varnish Works, of Chicago, under
contract In accordance with the company's

Company

on

underwriters

of

number

the

and

preferred shares which each has agreed to
purchase are given as follows: Courts &
Co., Atlanta, 1,000; R. S. Dickson & Co.,
Inc., Charlotte, N. C., 1,000; Kirchofer &
Arnold, Inc., Raleigh, N. C„ 950; Milhous,
Gaines & Mayes, Inc., Atlanta, 500; Wyatt,
Neal
& Waggoner,
Atlanta, 500; Brooke,
Tindall

&

&

man

Co.,

Atlanta,

J. H. Hils450; Robinson-

450;

Atlanta,

Inc.,

Co.,

Humphrey Co., Atlanta, 400, and Clement
A. Evans & Co., Inc., Atlanta, 246 shares
Offering price to the public will be sup¬
plied by amendment

ating utility company

Underwriting—E. H. Rollins & Sons, Inc.,
is the principal underwriter
Offering—Agreement of merger provides,
among
other
things,
that the survivor
corporation shall offer approximately 240,584 shares
of its common stock, par $1
share, for subscription by holders of
presently outstanding common stock of
Union Gas Co., New Mexico Gas

per
the

and

New

Mexico

Eastern Gas Co. at

of $1.50 per share.
Details of
plan have been filed with the

the

price

merger

In

reglateret

and

York

New

The statement eays

are

pany

CO.

Mortgage
1971; $10,000,000 Sink,

Debentures,

140.000

on

LIGHT

Light Co.
$45,000,000
First

SEC

rate

A

&

in

located

fin¬

the new com¬
not intend to engage in the
top manufacture in which the
company has engaged and intends
to

pany

Address—8 South

Commission
Florida

old

the

located in Rhode Island, Virginia

cloth

1967,

filed a registra¬
SEC for 106,500

Corporation

statement

shares

the

10,

prop¬

Mills,

pany
does
business of

15, 1942, to defer

CORPORATION

NU-ENAMEL

Co.,

Oct.

filed

Mills,

acquire

will

Worsted

gage.

Amendment filed Oct.

deposits made by non stockholder members.
effective date

em¬

Worsted

Stillwater

company

Stillwater

continue

(3-18-42)

key

and

Connecticut and certain stocks of

old

Registration Statement No. 2-4968. Form

a

persons
than above now
Stillwater Worsted Mills and

new

of

ished

working capital

Proceeds will be used for

4-1.

the

Illinois..

•

sale

shares of
group of ap¬

other

to

subsidiaries,

and

reduce -the

the right to

reserves

company

stock

company,

number of common shares to be included ir

Of

shares

offered for

ployees of the old Stillwater Worsted Mills
and the 30,000 shares of producers commop

erties

$110 per

60,000

60,000

executives

,30

proximately

Inc.,

ol

price

a

thd

are,,to be

be offered to

will

common

its

Southern

FLORIDA

f

INC.

MILLS,

"share.% The

a

employed by

••

is

stock

A

shares,

stock

$10

at

and

common

common

term borrowing

par
$50, for the debentures on a
dollar for dollar basis and or exchange for

Proceeds
will
be
applied
as
follows:
County prior to the proposed
and converted under the agreement t $53,170,000 to redeem at 102Y4. the $52,000,000 ol company's First Mortgage 5s ol
Into an obligation of the com-

Cumberland

f

1942 giving to

pany

stock

and

shares

of

(7-7-42>

Amendment filed July 23,

members of the company only the privilege
of exchanging the 6% cumulative preferred

the

$2,650,000.

be

Registration Statement No. 2-5026. Form

and

redemption

debentures

Offering—The new debentures will
priced at 100 and accrued interest

bonds, due Oct. 1,

as

the

of

buying privilege deposits with the company
balance, approximately $78,500 after
expenses, will become additional working
capital

Amendment

WORSTED

a

.

The

Stock,

used

the

of

$250,000

used

be

follows;
be

all

In ac¬
recently

plan

will

filed

Corp.

,

is

company,

be presently
issued.
Approximately
$120,000 of this amount will be issued to
replace the outstanding 6% preferred stock
which is being eliminated.
Approximately
$48,000 additional will be issued to retire

with

proceeds from the financing

Net

registration

a

will

A-2.

v '
STILLWATER

the
—

,

(9-28-42)

«

Corporation on Aug. 26 filed
an
amendment
to
its
registration state¬
ment giving the public offering price at

a
cooperative
selling
to its
whom are retail

Company

only,

Proceeds

cap¬
,

A-2.

Nu-Enamel

druggists.

accordance

261,910

filed

Co.

drug

members

the
by amend¬

Co,,

Gas

working

and

Stillwater Worsted Mills, Inc., a newly
registra¬
organized company, has filed a registration
tion
statement with the SEC. for 39,912
statement with the SEC
covering 30,00p
shares class A stock, $25 par; and 25,232
shares of preferred stock, $10 par value;
shares common stock. $1 par
'
..
■:
30,000 shares producers common stock, $10
Address—33 N. La Salle St., Chicago, 111
par
value and 60,000 shares of common
Business—Primary function of company
stock, $10 par value
Is to loan money to enterprises whose debt
Address—East Avenue, Harrisville, Rhode
and/or capital structures are being adIsland
"«
:
'
'
Justed or reorganized by .Its whollyTOwned
Business—Plans to engage in business af
subsidiary, H. M. Preston & Co. - A second:
worsted yarn and cloth
manufacture, in¬
ary function is to loan money, with fundi
cluding dyeing and finishing
not used In its primary function, to pro¬
Offering—The
30,000
shares
of
pro¬
vide "interim" or intermediate financing
Finance

Interim

SOUTHERN
—

wholesale

shares
as may be subscribed for by stockholders,
and to pay therefor in cash at $10 per
share provided
the proposed merger beProceeds—Statement says that prior to
the issue of the securities now registered.
Cumberland County Power & Light Co., a
public utility
incorporated in Maine in
1909, will be merged into the company and
Central
Maine
will
thereupon
acquire,
pursuant to an agreement of merger, the
business and all the rights, powers, etc., of
Cumberland.
After
the merger has be¬
come
effective, the business of the com¬
pany will include also the business, fran¬
chises and properties of Cumberland, the
separate
existence
of
which will have
the

Drug

Business

with their pre¬
rights.
New England Public Ser¬
has subscribed for and agreed to
in

share

I"

York../

company's outstanding common stock and
6% preferred stock for subscription at $10
per

""
CORP.

FINANCE

Eastern

expenses

of
Co.),

(old

New Mexico

Co,,

Registration Statement No. 2-5046. Form

1942, to defer

10,

Registration Statement No. 2-5029. Form

hearings)

(including

data

22, .1942

with the SEC for $350,000 6%
debentures, due June 30, 1957*
Address—120 Cherry Street, Buffalo, New

public will be supplied by amendment
Offering—Public offering price of
ment.

Oct.

date

INTERIM

statement

and offering price to

amounts

re¬

ELLICOTT DRUG CO.

the

of under¬

Names

effective

Mexico

New

Co.,

Gas

ital

'

filed

Amendment

(9-22-42)

Suspension
Oct.

and the notes
competitive bidding

Commission.

be

by

Registiatiuat-StatementHor-2-5844.-Feria
A-l.

Underwriting—The bonds

130%
filed

registration statement with SEC for 64,086
shares of $10 par

1,

Maine

preferred
CO.

regis¬
Series

Business—Company Is an operating pub¬
utility and engages in the electric, gas

an

TUESDAY, NOV. 3

a

bonds,

lic

and

common

company

Registration Statement No. 2-5050. Form
A-2.

filed

serial notes, maturing serially on July
1943 to 1952, and 261,910 shares of
common stock, par value $10 per share.
Address—9 Green Street, Augusta, Maine

Net

Underwirting—The preferred stock is not
being underwritten.
Names of principal
brokers
soliciting
subscriptions
are
Moroney, Beissner & Co., Houston, Texas,
and Mackubin, Legg & Co., Baltimore. The
transactions occurlng

Co.

mortgage

1 from

share, presently outstanding

first

accrued interest
net
amount

the corporation will be used as
working capital.
Net amount received by
partnership will be partnership funds dis¬
tributable among the partners or usable for
such purposes as the partners may decidfe

year

of

for the 10,000 shares
7%
cumulative, par
share, callable at $55 per

$50

$50

for

the

for

to refund all
subscriptions,

number

subscribed
holders of

preferred

value

exer¬

sufficient num¬

the right
cancel the

and

is

preferred,
of

a

subscribed

not

sufficient

a

preferred
and

held.

reserves

payments
if

to

each four
If in the

for

preferred

common

opinion of the
of

which

within

pre-emptive rights by subscribing
share

one

shares

is

securities,

ceived

CO.

with SEC for $14,500,000

general

maturing July

M,

emptive

Texas

Offering—The

Power

statement

and

first

Texas

but

deter¬

us.

bonds and notes will be supplied

par value $50 per share
Address—Petroleum
Building,

number

Maine

Central
tration

first

will

CORPORATION
Natural Gas Corp. has filed a

Houston

lor

Issues
whos®

clusive, plus

State

HOUSTON NATURAL GAS

tion

te

unknown

are

or

been

not

CENTRAL MAINE POWER

Registration Statement No, 2-5049. Form

in

have

dates

par

Proceeds—The

publication
Offering—Bonds are to be offered at
prices ranging from 101.57 for the 1943
maturity to 100.50 for the 1952 maturity*
The
average
offering price per unit is
102.10-73 plus-accrued-interest
Underwriting—Kalman & Co., Inc., St.
Paul, is the sole Underwriter
Proceeds—The
net
proceeds,
together
with other funds of the corporation, are
to be used to retire as of Jan. 1, 1943, the
corporation's 6lh % 15-year sinking fund
Business—Newspaper

and

of
but

ago,

Street,

Fourth

North

118

—

list

a

more

or

value,

underwriter will purchase the
partnership and the debentures from the
partnership and the corporation and offe?
them to the public at prices ranging fron
103.28% for the March 1, 1944, maturity
to
100
for maturities 1948 to
1952, in¬

Forks, N. D.

Grand

A-2.

days

offering

1, 1952
Address

below

present

twenty

par

The

ship.

whose registration statements were filed

1 from Sept. 1, 1943 to and
Sept. 1, 1951; $62,000 on Sept.

including

OF OFFERING

UNDETERMINED

Sept.

$1

value of $1,000 each, for the
sum
of $150,000 plus accrued interest to
date
of delivery.
Corporation in normal
course
also assumes liabilities of partner¬
the

of

DATES

capital stock,

partnership, $150,000 of the debentures

the

(10-15-42)

INCORPORATED
Grand Forks Herald, Incorporated, has
filed
a
registration statement with the
SEC
for
$170,000
4 %%
first mortgage
serial maturity bonds, dated Sept. 1, 1942.

its

of

$250,000 of its debenture 5S and is also to
deliver to the underwriter, on the order of

in San Francisco

Statement filed

motor

by

equipment, rolling stock, real estate, fran¬
In consideration thereof corpo¬
ration
will
deliver
to
partnership 4,000

underwriters
under plan of

issued

be

Proceeds—To

Form

Registration Statement No. 2-5048,
(10-3-42)

effective

chises, etc.

Underwriting—There are no

A-l.

principal un¬

the

is

Col.,

vehicle.
The new
corporation will acquire from the partner¬
ship all accounts receivable, motor vehicle

Occidental

of

share

one

Gas

Form

(9-17-41)

A2.

Nu-Enamel

merchandise

45/100ths share of Fireman's Fund for

of

underwriter

Denver,

comes

30,348 shares of Fireman's in
exchange for 67,440 shares of $10 par com¬
mon
of Occidental Insurance Co. on basis
and

Home;

Inc., Jersey City, is named as

of

basis

on

Co.,

Offering—The issuer, a new corporation,
the exercise of its option, will take
over and
carry on the present business of
a
partnership as an interstate carrier of

75/100ths
of Fireman's Fund for one share of
California

by

Co.

Union Gas

Southwestern

reorganization

effective date

upon

of Home Fire & Marine Insurance

of

Co.

share

J.
Business—Investment trust

Underwriting

and scrip for fractional shares
exchange for 44,984 shares of $10 par

in

lines

derwriter

par common

cents

supplied

Registration Statement No. 2-4845.

Underwriting—Brown, Schlessman, Owen

securi¬

Offering—After reclassification of

has filed a

Inc.,

marine

and

5%,
maturing
inclusive
Denver, Col.
of
motor
truck

1952,

to

Blake Street,

Address—2501

motor

INC.'

CO.,

debentures,

$400,000

serially from
Business—Fire,

TRUCKING

CHICAGO

Chicago Trucking Co., Inc., has
registration statement with the SEC

filed a

be

to

of Southern

Texas

amendment

towards redemption or payment

used

debt

Further de¬
post-effeotlve

par.

no

units,

Denver

made before the day follow¬

surance,

proposed

effective date

ing.
THURSDAY OCT. 22

the

from

registration and such with¬
drawal was approved Aug. 19, 1942
Amendment filed Oct. 16, 1942, to defer

of 4:30

unless otherwise specified, are as
Standard Time as per rule 930(b).

These dates,

withdraw

to

SEC

of

issue

proposed

the

with

certain

stock,

be

redeem at $110 per
shares of company's

142,667

.

of net

Balance

1942,

'

10 shares of common of

Inc., and

Nepsco Appliance Finance Corp. $9,100 and

1942,

Oct, 20,

offered

share plus dividends

per

1; 1936, due Aug. 1, 1956, of Nepsco

of Aug.

the

preferred

^acq> amount of 5% debentures

$6,000

Services,

19, 1942

Offered—Publicly
at $50

and

Statement effective 5-30 p.

ESWT on Oct.

acquire 30(T«hares of the common stock

to

$7

to

$15,693,370

1954;
share,
tails

proceeds from the sale of

serial notes and common stock will be used

25.48%; Shields
& Co., N. Y.,
25.48%; H. M. Byllesby &
Co., Inc., Chicago, 25.48%; First Trust Co.
of Lincoln, Neb., 14.56% ; Bosworth, Chanute, Loughridge & Co., Denver, 2%; McDonald-Coolldge
& Co.,
Cleveland, 2%;
Vietor, Common, Dann & Co., Buffalo; 2%;
Cruttenden
&
Co.,
Chicago, 1 %; A. E.
Masten & Co., Pittsburgh,
1%; The Mil¬
waukee Co., Milwaukee, 1%
Registration

such redemp¬

supplied by amendment.

be

Additional net

percentages of the unsub¬
shares underwritten are as follows:

White, Weld & Co,, N, Y.,

m.

ill

tion

underwriters

of

in

The amount to be utilized in

respective

scribed

share

per

Purpose—May be used for
6%

(9-29-42)
.
Underwriters—Names

of

A-2.

Nut Corp. has

Elastic Stop
tration

to deposit the redemption price there¬
trust for the holders of such shares.

pany

capital expenditures and working capital
Registration Statement No. 2-5047. Form

OFFERINGS

Thursday, October 22, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

1438

and previously

addition to

announced

the securities to be

issued

exchange for outstanding securities of
the constituent companies involved In the

in

plan, the details of which have
previously been filed with the Commission
and made public, the company will issue
and sell for cash $3,650,000 of first mort¬
merger

sinking fund bonds,
1, 1962
Registration statement
H. Rollins & Sons, Inc.,
gage

3%% series due

Oct.

company
bonds

that

for

the

it has

Union

corporation

at

a

equal to not less than 103%% plus
such manner that there
will not be involved any public offering of
the bonds requiring their registration under
the Securities Act of 1933.
As compensa¬
tion for its services in finding a purchaser,
the banking firm is to be paid a commis¬
sion
of one-half of one per cent of the
price

aggregate principal amount of the bonds
The banking
firm also has agreed to
purchase any

unsubscribed shares of com¬

offered to present .shareholders
constituent companies
Proceeds—The proceeds to be received by
the survivor company from the sale of its
bonds in the face amount of $3,650,000 and
from the
sale of common stock for cash
and
$250,000 of the proceeds from the
Southern Union Production Co. loan will

of

stock

the

Co.

of

Missouri

filed

a

,

Mo.

Business—This subsidiary of The North
is engaged primarily in the
transmission, distribution and sale of elec¬
tric energy, which it generates and pur¬
chases from
its subsidiaries, serving
the
city of St. Louis, Mo., and portion of 5
adjacent Missouri counties and of 3 coun¬
ties in Missouri adjacent to the company'*
Osage hydroelectric plant
Underwriting—Dillon, Read & Co., New
York, is named the principal underwriter.
American Co.

Names

the

of

other

underwriters

will

be

supplied by amendment

Offering—The 2,695,000 shares of com¬
pany's common stock are outstanding and
are owned by its parent, The North Amer¬
ican

who will

Co.,

ceeds

from

the

receive the entire

sale

the public

to

pro¬

of

such

shares

Registration Statement No. 2-4940.
A2

9,

Form

(2-2-42)

Union

accrued Interest, in

mon

Electric

.

reveals that E.
has advised the

agreed to sell the

survivor

ONION ELECTRIC CO. OF MISSOURI

registration statement with the SEC for
2,695,000 shares common stock, no par
Address—315 N. Twelfth Blvd., St. Louis,

Electric

1942 filed

an

Co.

of

Missouri,

amendment

to

on

its

Feb.

regis¬

tration

statement, naming the underwrit¬
141 in all, who will publicly offer the

ers,

2,695,000
all of
pany,

shares (no par) common stock,
are owned by its parent com¬
The North American Co. The names
which

the

of

underwriters,

number

and

shares

such

of

of

the

maximum
stock

common

which each agreed to purchase were listed
in

the

"Chronicle"

of

Feb.

26,

1942,

page

846

Amendment filed Sept.
effective

28, 1942, to defer

date

UNION LIGHT, HEAT AND POWER COMPANY

Union

Light,

Heat

and

Power

Co,

re-

Volume

gistered

156

25,000

Number 4118

$100

shares

.stock

.

Main

&

other than

common

par

.'
/' •
Cincinnati,

'

1

Address—4th

THE COMMERCIAL & FINANCIAL CHRONICLE

■

.

St.,

electric.. utility

Operating

—

Underwiiter

Columbia

—*

Electric

A

Gaa

4%

will

Offering—Stockholders
subscribe

to

share

'mon

for

5/94ths

each

each

for

holders

of one com-,
5/94ths of a share
share held at $5.32
share basis, stock¬

of

purview of

a
a

held

to 5
new
Bhares
$100,016 per share

at

i

'A-2.
"

WEST

/

•

.

-J

.

24, 1942, to defer

SUGAR

Indies

Sugar

statement

Address—60

to

Our

formality and

suggestions

ques¬

from

the

the

that

serious

E.

filed

the SEC

stock, $1 par
42nd St., New

the

a

for 453,69L

proposed

the conclusions drawn from it 'and

bonds

presented at
the
'clinics.'
The draft of

Purcell,
O'Leary,
for

war

of

of.

the

the

Proceeds—To

to

and Share;

Bond

Electric

to

blackstrap molasses,
the Dominican: Republic and Cuba
j

m

Underwriters

Offering—The

8.;'

tiready

purchase from United Gas Pipe Line;
$6,000,000 of its
1st & Coll. 4%
bonds due 1961.
Balance will be used in

City

part to .reimburse treasury for capital ex¬
penditures and possibly to pay accumulated

af

and to

;Co.,

.dividends

of

$9,502,490

/:•

United

Gas

upable

1942,

further

to

the

extend

bonds, due

expired on Feb.

poration
■to

the

aold

intends

end

16,

1942.

continue

to

its honds

that

shall

be

or

•/'//■.

offered;

United

Inc.,

filed

the

SEC

value

"par

DRUGGISTS

a

11,

Aug.

Druggists of St. Louis;
registration. statement
4,000 shares of

stock.

no

Company

was

Street,

Wil-

1942

Address—00

«

West

Tenth

Del.

;

•

Business—It proposes to operate a warehouse at St. Louis.
The corporation has

'been

formed

■distributors
the

of

benefit

of

purpose

United

purchases

merchandise
United

the

for
of

other

Drug

have

to

wholesale

at

than

enabling

Co.

that

of

sold

by

Drug CO.

Underwriting—No underwriters named.
•

.

Offering—This offering of stock is not
being made to all distributors of United
Drug
in

Co.

the

products but

Shares

share

for

the

the

of

It is

not

event

sold

products

of

from

at

$200,000

St.;

$50

United

dis-;

Drug

a

•pending receipt of funds to be raised from
/the sale of this issue, a loan not in excess

,of $50,000

be made to the corporation
by United Drug Co.
At no time will there

be
•

the

event

form

a

terest

.

of a

at

.from

the

such

rate

stockholders
checks of

note

sales

for
of

one

3%.

will

be

Of

earnings,

with in¬

year

The

benefits

distributed

dividends,

as

ticipations

'

monthly
and

remaining earnings.

par¬

Each stock¬

ills merchandise purchases increase;
so he may hold stock proportionate to his
"purchases in order to receive his share of
as

earnings

■/•

Proceeds—So

far

the

purposes

determinable,

in

'druggists $185,000,

•'<

the

the amounts and

indicated, namely, to

merchandise

of

chase

■

as

will be devoted

.funds
to

V-

v

for

sale

to

pur¬

retail

and to working capital

v
•
: ,./
'
Registration Statement No. 2-5045. Form

$15,000
;

,

(9-24-42)

A-l.

Statement effective 5:30
Oct. 16, 1942

Registration
ESWT

m.

on

UNIVERSITY

CLUB

OF

p.

Club of Chicago has filed a
statement with the SEC for
principal amount of 4% deben¬

University
$802,500
due

tures

Sept.

30, 2105

Address—76 East Monroe Street,

Chicago,

111.

Business—The

has

club

operated

since

in 1887 and intends to
continue to operate as an organization for
educational, social arid fraternal purposes.
It has nc capital stock and is not operated
for pecuniary profit but is operated solely
its

organization

for the benefit of its

club building presently operated by the

the

of

there

was

State

the

known

tion

Association.
tion
of

funds
the
-to

club
so

club
offer

curities
the

of

organized under the laws
Illinois, a stock corpora¬

as

the

The

largely

were

the

in

for

Federal

held

be

the

wartime

held

be

districts

Reserve

in

Southern

and

Middle

and

University

shares

of

subscribed
the

obtained for

that

by

association
..

Auxiliary
corpora¬

members
used

the

the construction of

building.
The cfub now proposes
4% debentures—being the se¬

its

registered hereby-Un exchange for
shares of the association,

outstanding

r




have

yet

as

elected

all

The

schedule

the

for

Middle

,

Oct.

29—Federal

trict No. 9.

Nov,

2—Federal

No.

?

10.

At

j. Su Backs Employes

Dis¬

Muehlebach

Hotel, Kansas City.
Nov.
trict
St.

4—Federal

No.

8.

At

Reserve

the

Statler

Louis.

V,

Nov.- 6—Federal
trict

No.

-

7.

At

"■

Reserve

the

Dis¬

Drake Hotel,

Chicago.
In

Dis¬

Hotel,

;/,/:/•

its

announcement

the

ABA

■';.

says:

"The

conferences

will

be

terned after those held in

land

during

the

latter

pat¬

Cleve¬

part

of

or

corpora¬

of the

asked

best

prices for

the

Invest¬

Association, should

order to follow return

new

peace.

that

a conference on Oct. 10
with representatives of both sides

is

no

be

ment

private

possibility

ownership yand

in

States Department of
Labor, ar¬
rived in New York from Wash¬

Oct. 13 to seek to adjust
differences.' The New York

the

govern¬

advised his listeners

themselves for

financing after the
find

cer¬

financing.

prepare

on

demand

war

an

era

tc
of

which wil]

for

capital not only
country, but abroad, "far

this

/

J

another

with

ket

running to

undertaking

some* two

billions

o1

By far the largest part of this

projected

financing

the

of

it
of

form

will

be

aimed

$1,500-000,000

Vz%

will

refinancing
at

take,
since

retirement

of outstanding

certificates maturing Nov,

1, next.

V '■ /vV;;,//./'/.

But it will also involve raising
of $500,000,000 of new money for
the
war
chest, and will bring
Treasury operations for the cur¬

/

"Mr. Somerville declined to
say
whether he had conferred with
union or company

Monday. ;/r

to

than

more

$6,000,-

due

are

next

;://:./// ■>•;.'; ;.y'/•"//

,

On the

day the Alabama.

bids

revealed

the

to

those

findings of-a

ed

by

the

in

attendance

conduct¬
Association
which
survey

Labor

Board

defense
1943.

industries

In

and

by the

addition,

panel

into

end

of

discus¬

sions have been conducted at each
of these

conferences, which have
participated in by bankers

been

from the districts where the meet¬
and

at
be

were

held.

As

in

Cleveland

"hen's teeth" there is

Boston, the panel participants
forthcoming meetings will
personnel

officers

who

have had extensive
experience in
recent
months
in
meeting and

dealing with problems of person¬
nel losses,
replacements, and new
employee

training that have re¬
sulted from the war. •
Representa¬
tives of large
metropolitan banks

'No Com¬

ment."'/
The

at

Oct.

time

it

mediators
efforts

referred

was

columns

which

from

ened

a

to

in

to

8, page

1251,

said

was

had

that

^strike

workers.

of
As

Wall
to

the

a

strike

following

quote

we

from the

"Times"

"Pending action

a

the
of

Oct.

general

general

strike

Wall

of

houses, originally
Tuesday.
"We

are

workers

Street

not

strike

set

going
unless

in

brokerage
for

next

pull

we

in

all

••;:

three

a

are

cate¬

Si:

Fundamental Investors reported
total

asset

net

value on Sept. 30
$5,760,925.38. This
equal to $14.76 per share, rep¬
resenting an advance of 12.2%

amounting

to

from the $13.15 value at the close
of the preceding quarter.

"An Equity In America"

title

of

the

fire

on

point

is the

"Hare's,

new

insurance

of, the

Ltd.,
stocks.

title

is

con¬

vincingly made and the further
point that fire insurance stocks
provide a good hedge against in¬
flation
latter
War

is

also

stressed.

On

this

point the record of World
I

is

cited

wherein

of

in

64%

leading

stockholders'

in dividend dis¬
""

#

"

»:«

u'

Accompanying the Oct. 15 issue
of National Securities & Research

Corp.'s "Investment Timing" Serv¬
a sheet containing support¬
ing data to the Stock Yield Index,

the

of

one

proverbial
indi¬

every

the

eight component

iri-

dexes of that organization's wellknown Investment Timing Index.

The data includes a chart giving a
graphic presentation of the past
performance
of
this
indicator.

Comments are, in part, as follows:
"This particular

based

the

upon

index, which is

relation

between

stock

prices and dividends paid
during the preceding 12 months,

by test, the most accurate of

was,

the

eight indexes finally used to
the Investment Timing

up
At

time

no

period

year

it

theoretically,
period

since

over

the

or

the

the

tested

was

20-

back

three-year

data

has

been

published, has this particular in¬
dex given a false buy signal. In
other

words, it would have been
profitable to buy and sell when
signals were received.
w
.

"The

of

record

this

.

particular

index is such that the buy signal

reported in the Investment Timing
Bulletin of Sept. 17, 1942, must
be regarded as highly significant."
.1

Now
Peter

Proprietorship

from

J.

to

do

fices not to

morning
Steelman
the

it, and we have ad¬
in

members

our

walk out

in
a

order

other

on

to

of¬

Tuesday

give

Dr.

chance to intervene in

situation." Mr. Flaherty said.
union

intends

to

use

8fc

Bond

-

Share

Cor¬
on

Sept. 30, 1942, taking securities at
their market

to

a

value and

after

de¬

dividend of 15 cents

per

payable Oct.

15, amounted

$6,872,044, equivalent to $19.08

per

share

on

360,000 shares of out¬

standing capital stock.

pared

with

$18.09

per

a

share

on

and

with $19.57

end

of last year.

a

This

com¬

net asset value

every

possible means of obtaining
peaceful settlement."

fit

and

poration reports that net assets

ducting

partnership in the firm.

forced
vised

Sjt

-

..

National

Morgan is now sole
proprietor of Peter Morgan & Co.,
31 Nassau Street, New York City,
Wistar Ambler having withdrawn

"The

to

five
#

share

appeal

Steelman, union leaders
they had rescinded orders for

general

as

11.

the

on

Dr.

other

scarce

withdrawn

rescinding of orders for

said

as

that competition will be
keen,
especially
with
railroad
earnings providing
a
favorable
backdrop for the financing.

^settle the strike.

' general

Street office

to

Since corporate new issues have

cation

strike

It had since been reported that a
union representative had threat¬

the

bank

$9,500,000 of 25-year
314% first mortgage bonds.

Mr. Somerville replied:

State

forces

mediating

its

for

been

these

armed

referee

War

a

same

the case, and~that he was
turning
the entire case over to the
WLB,

have to replace at least 100.000
employees who will be drafted
the

first

Index.

Great Southern Railroad will open

Customer and Personnel Relations

the

gories.

make

Alabama, Great Southern

had

to

appear

ice is

000,000.rDetails

agree

five

bursements.

dollars.

rent month

to

names

the

alongside their
figures.
Keystone
Series "S 2" is the only
security
in the group which ranks
among

Early next week the Treasury
it announces, will be in the mar¬

"Times" of Oct. 14,
indicating this,
</.:.'/ ■: ;/■/'-; ;•: ;■/:.y/

attorneys dur¬

...

September and in Boston earlier

Powers, ABA Director of

stocks

increase

v

Sets Refinancing

experience.

said' :'v

refused

The

check

performers in each of the
three categories on the basis of
the figures given.
Then, by. re¬
versing the fold, the names of the

equity and 61%

of

"blue

enter¬

replaced, except in

And he

mediation working."
At the instance of Dr. Steelman.
R. V. Somerville of the United

ington

to

or

following

"there

25

best

The

that

asked

are

folder

not

this month.

William

flap of the folder.

public

Flaherty, general

of

of the securities are not included.

You

25

of

payments

chip" stocks in terms of a $10,000
investment in each are listed on

performance

ing the day. Asked if it was true
that attorneys for Bache & Co.

At these conferences,

by their 1937 highs), the 1941
earnings after taxes and the 1941
dividend

tain necessary circumstances, by

ganizer

2.6

ured

of

K.

other net assets

Corp. is out with
ingenious little folder contain¬
ing a "3 Minute Test." The ap¬
preciation possibilities (as meas¬

prise and private financing will

Dis¬ is reported as stating that the firm
Hotel,, had declined to accept her sugges¬
;/ ■. v;//•"
j tion for arbitration, and added'

Reserve

1.6

Following the failure to effect
through arbitration a settlement

Edward

28.3

The Keystone

welcome tonic for the in¬

conviction

the strike of employes of J. S.
Bache & Co. a request was made

8,6
17.5(

—

1.0

one

securities

.

Reserve

the

re¬

any

Upon his election this week,
Mr. Whipple expressed the firm

.

:

Assets:

was

of

Adjust Strike Qf

At the Nicollet

Minneapolis..
trict

;

of

the

fraternity, : which has
listening to much discussion

been

(AFL): following the
ABA
members
in
the
Middle failure of a move
by Mayor La
West, and will go forward shortly, Guardia to seek an adjustment of
to banks in the Southern and Mid-; the
dispute.
Mrs/ Ethel S. Ep¬
die Atlantic areas.
/
stein, the Mayor's labor secretary,
Western conferences follows:

and

President

Treasury

to

these

individual

ment Bankers

Employees

sent

of

Jay
N.
Whipple,
of
Bacon,
Whipple
&
Co., Chicago, just

vitations

been

State

security.

vious

have

the

upon

New IBA Chief Looks Ahead

of Local
20,940 of the
American
Federation
of
Office

ings

members

Offering—At the time of construction of
club

To

into

registration

"/

v'/4/\"k/t

arrangements

Federal Conciliator

shows that the nation's banks will

CHICAGO

the

2.2

an

individual

bid

Atlantic Federal Reserve districts,
between Nov. 16 and Dec. 11. In¬

to

year-end

District No. 2

throughout the country is nearing on Oct. 10 to Dr. John R. Steelcompletion, it is announced at man, head of the conciliation
ABA headquarters in New York branch of the United States De¬
City. Four meetings will be held partment of Labor in Washington,
that his agency intervene to settle
pr the Middle West between Oct.
29-Nov. 6, and five meetings will the strike. The
request came from

holder will be allowed to increase his hold¬

ings

schedule

j

vestment

Personnel Conferences

may

$200,000 raised from all sources,
such a loan is made it will

over

In

be

Reserve

been made for the conference on
the Pacific Coast."..;

To Hold Wartime
The

ill

have

effects

of

in

the

prove a

-'./J

■.

per

the

to

contemplated that it will be
borrow money.
However, In
temporary loan is necessary

to

•necessary

of

those

to

served

be

to

are

total

a

'tributors
Co.

economically

area

Louis.

is limited

3

April 21, 1942, to aeiei

by the American Bankers Associa-.

OF

District No.

(12-29-41)

date

personnel conferences to

*

,'mlngton,

2-4923

advise

of the

tion

covering

common

organized

A2.

No.

i

.

INC.

Wholesale

has

with

the selling

Reserve

at New York.

No
by

i

.

*

"

LOUIS,

be,

would

Philadelphia.

afore¬

.

WHOLESALE

ST.

to

price

Statement

Amendment filed

eiths*

the

public as circumstances shall dictate
In order to obtain the pest possible price."
;
Amendment filed Oct. 17, 1942, to defer

UNITED

a

revived

The cor-,

•to the

.effective date

Form

effective

negotiations

privately, by renewal of
agreements or otherwise,

said

be

it

proposal1 would
dealer entering into

any

current

Federal

be

"These purchase agree¬

amendment states:
ments

at

will

amendment
will

Registration

This

1959.

and

Dallas.

at

com¬

with

__"1

100.0

tion, other than another dealer, to

Federal Reserve District No. 11
at

Federal

registered

outstanding

company/

oi

District No. 6

4.9

Industrials

Cash and

a

any

64.2

that

be

subdivision

transaction

Reserve

belief

would

SEC

quire

1

and

variety of reasons,"
they then proceeded to

The

District No.. 5

9.6
3.2

Government bonds

outline.

follows:

as

at Atlanta.

registered

shares

public,

parent

the holder

shares

the

are

Reserve

Federal

by

in dis¬
shares,

York,

is

of the

the

the

Proceeds

covering

lateral trust 3%%

17,000
of

of

to

New

are

stockholders

agreements

panies

stock

of

Federal

at Richmond.

owned'

-

Inc.,

436/691

of

extent

company,

aggregate

are

York,

will be held

amend-,

by

registered

and

New

Bank

remaining

mon

pur-;

with 14 insurance com¬
the proposed private sale
to such insurance companies of $75,000,000
of the company's first mortgage and col-

-chase

the

supplied by

that It had

6tating

of

former

offered

filed amendment with

Corp.

21,

to

City

the

The

;

Feb.

on

been

named

shares

represents 47.7%

<5-15-411

-SEC

solution.

the

preferred stock
Registration Statement No. 2-4760, Form
A-2

be

outstanding,

Company

National

$7

companys

on

will

51,4

Bends:

V.

State,

the

adverse

for

which

they

and

ment

repay

$2,000,000 open account debt to E.'B. &

Invert

and

sugar

demand note of $25,925,-1

'1953; to pay .6%
'000

due.

Debentures

6%

Service

Public

'Gas

United1

$28,850,"000

redeem

the

because

and

State

,

•

Joseph

;

McGoldrick, for the

financing

pality

1

equipment_-___

Utilities

New York and of every munici¬

bank

Juban

.

.

both

enactment

seriously

was

'

rail

Preferred Stocks

Chairman Gan-

expressed

"this

anticipated in the
City;
1932: ABA's -statistical-presentation of

organized " in
reorganization

plan

from civilian work into

city,

D.

advised

Stocks:

Utilities

Other

son

Joseph

mu¬

was

follows:

Rails

letter to

a

States and

16.6%.

as

Industrials

Commission's:
regulation
governing
by

from

Rails and

Exchange

issued

In

18-19-yearold men now
being legislated by
Congress, induction - of married

power

and

1430)

page

Sept. 30, the portfolio

diversified
Common

nicipalities.

personnel

ties

2.6%
As of

City of New

York, through their respective
Comptrollers,
have
joined
the';
growing opposition to the Securi¬

personnel

on

from 23.0%, while gov¬
ernment bonds and cash decreased
to

The State and the

personnel shortage.
Dominican
Sugar Corp.
and
•tem ;
cer-;
•
••
'
;
I
"Although the dates have not yet
cain
of its subsidiaries, is solely a
hold-i
Underwriters—None
been set for the meetings in the
mg
company
owning
the
securities
of
Offering Terms—Bonds will be sold to
everai operating subsidiaries engaged prin-j
Southern and Middle Atlantic dis¬
'Institutional investors,
whose names will
in
the
production of
raw
cane
be supplied by amendment, at 99.34% •
•; jipally
tricts, the cities in which
Electric Bond and Share.Sys-

part of

gas;

(Continued
to 28.3%

SEC and Municipals

man¬

shortages facing banks during the
coming year have been pictured
correctly by the ABA's survey and

fj industries

York

Investment Trusts

(Continued from First Page)

/,

in

1439

Reporter's
Report

a

and the forecast by Presi¬
dent: Roosevelt ' that- legislation
j
may be necessary to draw man¬
regls-

CORP.

Corp.

with

Business—Company,
pursuant

with

men,

date

ihares of common

Rector Street, New York City

Address—2

•

INDIES

West
;ration

Business—Production and sale of natural'

>

<

Amendment filed Sept.

Corp.

1958

•bonds due

■

Registration Statement No. 2-5042. Form,
(9-8-42)
: •"
'
' "»■
1 c•*'"

effective

Gas

value,

the club

by

1942, to defer

15,

the basis of $100
debentures for eachi

Association of $100 par

conducted

situation

indicate

The

on

of

amount

dis¬

rural

The meet¬

emanating from
Washington during the past week

4% debentures
of the University

shares

and

power

offer: its

for

the

Issuer."

be

"Developments

set

that term

another

of

to

proposes

exchange

*

CORPORATION
1
registered $75,000,000
mortgage and collateral trust 3 Va % i

-first

.

Oct.

filed

of

in

floor will be welcome.

ex¬

the

in

other than shares of the Association owned
i

•.

GAS

United

securities

share of

date

UNITED
'

use

fi-1

Amendment

•'effective

tions

paragraph 5 fl) of the rules as. to
of Form E-l as constituting "the

principal

<3-30-401

•

the definition

such

within

club

the

Auxiliary Association

Statement No. 2-4378. Form

Registration

of

to

are

banks

participate.

minimum of

exchange of securities by the issuer thereof

m

&

costs

construction

i

in

club

stock is held
Electric Corp.
'
Proceeds—To
repay
current
debt and
$2,835,000 first mortgage bonds held by
parent and associated companies, anu foi
Gas

Columbia

the

for

Substantially all outstanding
by

ings

the issuance of the

that

"reorganization"

a

forth

subscribe

share

is

25/94ths

On

unit.
may

each

;for

debentures

change

of

to

units

in

of¬

receive

considered

smaller

tricts will

such proportion thereof as

or

It is

••

Corp.
fer

acquisition of such

upon

shall
approved by the board of directors of
the club,
to cause/the association to be
dissolved and liquidated.

company

!

and

and

be

business

i

by the club,

shares,

Ohio

j

shares of the association owned

of

June 30, 1942,

per

share at the

.

THE COMMERCIAL &

1440

Reporter On "Governments"

Our
BIDS MADE ON

BONDS WITH

selling just hanging over everybody.
And a check around indicated

COUPONS MISSING
OR

MUTILATED
.

Inquiries Invited

S. H. JUNGER CO.
40

Exchange PI., New

Teletype N. Y.

4-4832

DIgby

Phone

York
1-1779

Prefd. Shares Offered
A

Weld &
&

headed by White,
Co. and including Shields

syndicate

Co., H. M. Byllesby & Co., Inc.,
The First Trust Co. of Lim

and

coin, Neb., made a
Oct.

of

20

public offering

issue of 50,000
cumulative convert¬

new

a

shares of 6%

preferred stock ($50 par) of
Elastic Stop Nut Corp. priced at
ible

$50 per share plus
dends.

■

The

.

•

accrued divK
•''

ible, for each preferred share, at
the rate of 3 4/7ths shares of com¬
mon stock on or before Nov. 30,
1943; 3 13/29ths shares of common
stock on or before Nov. 30, 1946;

long as any pre¬

and thereafter, as

ferred is outstanding, of 3

l/33rd

The new

shares of common stock.

preferred is. redeemable, at the
option of the company, in whole
or in part at any time on 30 days'
notice at $52.50 per share plus ac¬

of out¬
cumulative prefer-

standing

6%

stock of

'ence

$100

par

reimburse the company

value, to
for sums

expended for new machinery and
equipment, for additions to plant
and for additional working capi¬
tal.

in¬
corporated in 1934.
It maintains
and operates factories at ■ Union,
XL J., arid Lincoln,- Neb., where
it manufactures, under the trade
Elastic Stop Nut Corp. was

name

of Elastic Stop Nuts, a wide

variety of self locking nuts which
maintain firm: bolted connections
The

also pro¬
duces auxiliary material used for
fastening gangs or series of bolts
and nuts in' assembly work.
At
corporation

On

completion

of

the

present

financing, the corporation's capitalization

will

shares of 6%
ible

of

consist

"It is

422 shares of which

standing.
debt..

now

are

There will be

no

out¬

of reasons:

MICH.—William

,

.

troit

Stock

Exchange,

their removal to the Buhl Build¬

ing

from

the

Union

Guardian

jewelry

though

1

production,"

will not be
the materials

lit: «is

which

from
a

in war

now

McBain observed.

Costume

have

made

extensive
Aluminum and stainless

d y

r e a

change.

undergone

except

for

pointed out, "with the result

that

kitchen

steel

ware,

.

...

which have been lax to date.

from sources

INTO

.

.

the

j

.

around still who are far from fully

Lots of investors

Governments.

.

.

.

.

.

activities; you'll have your money
A''

.

'7.77

"7*,'"....

-

INSIDE THE MARKET

security

.

.

the

talk

around of the need

frequent intervals, available to

high-pressure campaign.

the

tax-an¬

Yule Gifl Selection
Seen

all buyers and sold by a nation-wide

Early

...

spite

is that Reserve is try¬

have

the district

from

ing to convince bankers that they must borrow from
banks to raise their reserves to buy new issues. . . .

Cut in re¬

Prime

.

.

,

he

.

.

spring surprises on very people he consults and upon whom

depends for support.

.

.

:777

.

over

issue, payable at maturity at 101.

,

.

.

Represents ad¬

issue floated in June, which was a 12-year maturity.

Canada's not too great.
f

,

;

.

.

.

:

Proposed SEC Bid, Asked Disclosure Rule Held
Financing

Harmful To N. Y. State And Municipal

Com¬
to tell their customers

Objections to a proposal of the Securities and Exchange

stores,

reporting

than ,90% of the
we customarily
Christmas will be available

of

things

this season.

"Goods

manufactured while the

nation was still at

many

the

before

plants

to

and or¬
conversion of

peace

war

production,

provide-^-this year, at least—
many
of the .items customarily
seen on retailers' Christmas coun¬

will

luggage, smokers' items and sta¬
tionery.

"In

made

addition

goods,

,

to

the

those

! (

:

have undergone radical
change.
"Wheel goods" are vir¬
tually non-existent in the former
sense of the
word.
Today's toy
Toys

will offer scooters,
pull toys and doll bug¬
gies constructed, with the excep¬
tion of a few nuts and bolts, en¬

departments
wagons,

are

Toy PT4's, anti¬

evidence

in

and tanks

all

—,

made

of

,'7
' 7
7
"It
is
already
evident
that
Americans are
looking *ahead—
with the realization that this war
.'.7

wood.

is

a

hard

777

;

war.

,

They are buying

practically.

They

toward

wear

long

comfort and utlity

have an eye
and usability,
when they shop

today.

finally, many of them are
on the stay-at-home

"And

- '
pre-war

ingenuity

of

in clothes and equipment.
this Christ¬

things

I venture to say that
mas

will show

season

all-time

an

high in the sale of parlor games—
not for
children alone but for
adults

well," Mr. McBain con¬

as

cluded.

M. D.

Griffith, of NY Board

Of Trade Takes War Post
-

ters," he said.

at least,, there is

this year

adequate supply of hollow and
flat silverware.
There is enough

concentrating

Mr. Mc¬

Bain said, "more
kinds

reach

an

made by

managers.

"Generally speaking,"

dered

...

;

selection
their gifts

retail

nation's

merchandise

sold at

sale of

Canada's announcement of its Third Victory Loan covers

normal

nearly

a

Company, said today,
the results of a survey

.

merchandising—merchandis¬
fiscal policy and of its multi-

problem of Treasury today is

ing of its over-all point of view on
billion dollar loans.
Good rules of merchandising suggest seller
does not

shoppers,, de¬
curtailments, will

Hughston M. McBain, First VicePresident
of
Marshall Field &

.

the Reserve Committee.

arriv¬

•

aircraft guns, airplanes

Christmas

which to choose

still

watches

Swiss

Even

this country.

tirely of wood.

Nearly Normal

wartime

the

in

requirements for nation as a whole will not come as soon
as anticipated a while back.
.
.
.
Borrowing technique is recom¬
mended for the time being.
.
.
Plus open market support of
market by

inexperienced investor."—__

for issuing one big loan at less

Authoritative report from Washington

the

entire block, he may

cost for
sell one

portion below and another portion
above
the
average
cost, which
would be difficult to explain to

ticipation, notes, war bonds, etc., etc.'/.;. . A narrower choice and a
more defined financing program might be more advisable. ...
Still

true test, in view of the
practice of block pur¬
bonds. While the

dealer buys at an average

for in¬
variety

ware

this country, Irish linens
come
in adequate Volume.

For

chases of serial

7V; V ..7-;';..

;71;.::"'7'

a

common

working
,\7

ManyHealers saying therb "are too many possibilities
vestment,"
Morgenthau is confusing the market by the
of his offerings—certificates, bills, notes, 2s, 2l/z$, as "taps,"
.

perhaps mis¬

is the dealers' cost of the

"Nor

.

.

itself

inexperienced investor.

the

lead

in

difficulty

confuse and

would

don't want the new ones or
outstanding, buy the shortest-term stuff available
and keep rolling them over as they mature. ...
■ '
You'll be in the most conservative position possible; , you'll avoid

to

English

Besides the

have

this

value,

Taking the assumption that you

equal

ware -

product."
ing in

...

criticism of your

out

teristics which affect their market

the very longs

any

municipal

turning
the foreign

factories are now

our own

bond issues have varying charac¬

yourself fully invested so you'll be at ease with your
conscience and know you're supporting the Treasury at this

for'you.

be

comparable

since

and

securities

.

Get

crucial time.

inevitably would

ascertain true prices for

Many corporations reported
.

increase

passed on to the government units
issuing the bonds.
"Since it is at times difficult to

SHORTEST STUFF

THE

.

announce

the

.

—

Honey & Co., members of the De¬

impair the liquidity

is

instances

many

.

.

Spread between our rates and

'-jci

<

would

materials
Mr.

sub¬ .curtailed,

division of the State for a variety

"It

in

equivalent for civilian use to

the rate of current of this type of securities and thus some stocks on hand,, are "out,"
tend to lower their market value.
war
bond sales, the Treasury should raise more than $900,000,000
"Since it would tend to depress but in their stead are enamelware,
through individual subscriptions this month. ...
the current market level, there iron and newly developed glass
Next month?
Assuming the three-month spacing of the taps
would be a consequent increase in and pottery utensils.
is to be continued, we should have another reopening of the tap issue
The supply of imported china
the cost of new financing to the
for insurance companies and other institutions eligible to go on this
State and its municipalities of ap¬ and dinnerware is now limited to
subscription list.
And sales of war bonds. . . . And maybe some
proximately $10,000 per $1,000,000 that from England, but this coun¬
more shorts. ..."
'
7
.
.
.
'
try's kilns are providing china of
of new bonds issued.
Also there's a report around—which sounds good—that as soon
"As the proposed rule would top quality.
"A number of years
as the tax bill is on the books as law, the Treasury will offer an issue
slow up dealer sales and increase ago, we brought the technique of
of bills due March 15.
A large amount of them to help corpora¬
Quimper and Majolica
the dealers' cost of doing business, making
tions keep their tax reserves invested and encourage subscriptions
ware to this country," Mr. McBain

14-year 3%

DETROIT,

and

municipality

every

job for this month and at

t

A

upon

.

That will finish the

vance

Surrenders To Army

effects

...

funded

...

material

ill-advised, be¬
it would have seriously ad¬

cause

Company, that the

&

be

Field
replacement

experience of Marshall

the

belief that this enactr

our

would

But, it has been

thetics for metal.

price at which the securities
were acquired by the dealer.

the

ment

1-1397

Y.

N.

Teletype

reasonable

of

the financing
of the State of New York and of

000,000 in new cash.

cumulative convert¬

($50 par value)
and 600,000 authorized shares of
$1 par value common stock, 389,-

ascertained

be

not

exercise

HAttover 2-8780

St., N.Y.

25 Broad

Dealers Ass'n

Y. Security

Members N.

If the bid and asked

diligence, the dealer would inform
the individual or corporation of

$2,000,000,000 issue of certificates of indebtedness will be sold
on Monday to refund the $1,507,000,000 of Vi%
certificates maturing
Nov. 1.
By so doing, the Treasury is raising an additional $500,-

50,000

preferred

asked prices for

and

could
the

after

serve

military equipment.

bid

the security.

prices

M. S. WIEN & CO.

corporation of the best

or

Cfs.

Bought—Sold—Quoted

person or

current

-

present the bulk of its Output is
consumed by industries producing

corporation other
another dealer, to advise the

a

person

A

under conditions of severe vibra¬

tion.

and Internal Loans
Mexicsun Interest Arrears

verse

.

redeem 1,847.55 shares

it would require

than

...

■

Mexican External

bond

with

invested in
with fairly big cash
balances on deposit with their banks and comparatively few Gov¬
crued dividends.
ernments in their portfolios.
These apparently don't want longProceeds from the sale of the term Governments and are afraid to buy the new issues. . . . So
new preferred stock will be used
here's one thing being recommended by experts:
to

Convertible Preferred

dealer, entering into any
transaction
in
these
securities

"In substance,
a

REFUNDING

THE

PennV Central Airlines

New

State.

,

from thinking.

Bridge Works

Common & 6s of SO

7

of the City of New York
of other municipalities of the

and

.

.

.

.

.

Ft. Pitt

York,

Cart you see how we can

.

of

State

the

bonds' of

the

Everybody is worried." 7 ,7. 7

raise these multi-billions with¬
out resorting.to direct sales of securities by the Treasury to the Fed¬
eral Reserve on a tremendous scale and more inflationary financing
methods?
•,
•
77 /• \
7-.
7
77" *
Even the most conservative observers squirm as they study the
figures, analyze, the alternatives. ... .
Of course we"Ve a supported market and we'll continue to have
one.
And all investors must.buy to the limit or they'll create
the very situation they fear worst. . . . But you can't stop yourself
tions?

.

■'

•

stock is to be convert¬

new

7
buying and

this was perfectly true. V. . '
Everybody is worried about (1) who is going to keep this market
up by buying outside of the Federal; (2) how the banks are going
to take more and more and more and more 2s, when they don't
like that bond in the first place; (3) how the Treasury is going
to raise the huge sums it needs when already the market shows
had signs of weariness; (4) how we're going to avoid out-and-out
inflationary borrowing of funds when we've a financing prospect
ahead that dwarfs all considerations. . . .
Have you the answer to any or all of these significant ques¬

.

Elastic Stop Nut Corp.

-

operation. The rule would be ap¬
plicable to bonds issued by States
and by -their municipalities arid
would thus become applicable to

C
,'V

(Continued from'first page)
77
It's at dead center again, with no one

the market now.

Thursday, October 22* 1942

FINANCIAL CHRONICLE

At

Board
York
a

special

a

of

meeting

Directors

of

Board of Trade, on

leave

of

absence

-

of

the

was

the
New

Oct. 15,
granted

has cre¬
Building
which
was
recently
to M. D. Griffith, Executive Vicethe best independent market at the time of each trade have been
ated others from
materials not
taken over by the U. S. Army.
President, from the New York
voiced by Joseph V. O'Leary, New York State Comptroller; Joseph
needed in war. Shortages will be
Board of Trade.
Mr. Griffith will
D. MeGoldrick, New York City Comptroller, and J. J. Mulcahy, Con¬ apparent in some specific ljnes,
be located
in Washington on a
troller of the Port of New York Authority, in a letter to Ganson and replacement materials will be
temporary basis until Dec. 15th, to
Purcell, -Chairman of the SEC/S-——': .' 7 ''
- 7.1 ■'—
» evident in others, but very few of handle a
special assignment for
practical in transactions involv¬ the items usually given at holi¬
The belief, is expressed therein
the War Department.
Sidney J.
ing public securities, and that the day time will be totally absent."
that the enactment of the pro¬
Weinberg, Assistant
to Donald
With
one
notable exception,
International
posed legislation "would be ill- losses which the State of New
Nelson, formally requested the
advised, because it would have York and its municipalities and there will be no shortage in ap¬ New York Board of Trade to grant
seriously adverse effects upon the political sub-divisions would suf¬ parel lines.
"Rubberized" ma¬ the leave of absence. Mr. Griffith
Railroad Co.
State of New York and of every fer from its operation are entirely terials and rainproof, synthetics
has been the Executive Vice-Pfesmunicipality and sub-division of out of proportion to any benefit have gone to war—but suits, coats, ident of the Board for the past 15
Escrow Ctfs.
the State." The New York "Times" which it might confer on the in¬ handbags, gloves and all kinds of
years.
John C. Ostrom was ap¬
vesting public." The. text of the cotton garments will be available
of Oct. 21 in noting the opposition
pointed Acting Executive Viceletter is given as follows in the in sufficient quantity.
to the proposed rule, states that
President
during Mr. Griffith's
"Times":
in a joint letter/the Comptrollers
"Replacement materials will be absence.
Mr. Ostrom will also
"Our attention has been called evident in many of these items—
recommended that the SEC "look
HAY,
continue in his present post as
to a proposed rule which the Se¬
Members New York Stock Exchange
upon State and municipal securi¬
made-made
fibers
for
animal Secretary of the Drug, Chemical
ties as exempt from the proposed curities and Exchange Commis¬
71 Broadway N. Y. BOwling Green 9-7030
and Allied Trades Section.
fibers; wood, bone, shell and synrule on- the grounds that it is im¬ sion has suggested be placed into
Bell Teletype NY b-61
mission

Spokane

FALES & CO.




to

require over-the-counter dealers

American manufacturers