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a is«
Final
Edition
ESTABLISHED
OVER
100
In
YEARS
2 Sections-Section
ommetcia
Ileg. U.
Volume 160
New
Number 4328
S.
Pat.
Office
York, N. Y., Thursday, October 26, 1944
Price 60 Cents
Copy
a
Changes In Distribution
By PAUL II. NYSTROM*
Professor
'
j
of Marketing, Columbia University
In Peacetime For America?
;
President, Limited Price Variety Stores Association
40-Hour Week With Its Penalties For
Overtime Never Justified Even In Depression Years And Should Be
Abolished Before It Wrecks Our Economy. Condemns Evils Of Closed
Marketing
Specialist
What Are Your Views On The Subject?
Says
The
Of Whether
Issue
America
Should
Adopt A System Of Compulsory Military Training In Peace¬
time Promises To Receive Increased Attention In Public And Official
Circles As The Wars On The Two
Fronts Move Closer To Certain Victory.
In The Interest Of Stimulating Public Thinking On The
Shop,
Sees Favorable Post-War Prospects Arising From Consumer
Savings And Growth In Marriages And Population As Well As Need Question And Thereby. Contributing To A Better Understanding Of The Implications Of Such A Policy, The
"Chronicle" Would Be Pleased To Receive For Publication The Views And Opinions Of Those Who Desire To
For Replacements And Rebuilding.
-Va:i
Express Themselves In The Matter. Letters Should Be Addressed To Editor, "Commercial and Financial
;
The subject assigned to me is, ''Coming Changes in Distribution."
As A Background For This Symposium, We Give In
I wish I knew the answers.
I shall, however, attempt to state some Chronicle," 25 Spruce St., New York City 8, N. Y.
Today's Issue, Starting On This Page, Several Recent Discussions Of The Subject, Two Of Which Represent
of. the condi-^
tions likely to speak
with equal assurance of The Views Of Members Of Church Denominations, While The Third Reflects Opinions Of The President
produce our system of distribution.
Will Of A Prominent Educational Institution.
'
changes
and
then add what
I think may or
should
occur.
is
There
least
of
at
point
one
major
sig¬
those
in
keting
charge
the
of
mar¬
of
goods,
advertising
sales
man¬
agers,
men,
brokers,
wholesalers, retailers and their
employees, be able to find the
markets,
stimulate
the
of
the extraordi-
men
nary impor¬
tance that dis¬
tribution
ma
rk
*
..
„
H.
e
and
tin g
have
will
,
Paul
in
the post-war
Nystrom
Xhis
era>
'
.
O
Sales
'
,
to
no
but
question
farms and
mines
of
nation's
the
that
factories, its forests and
provide for an economy
and prosperity.
I
that it
were
possible to
can
abundance
wish
*An address made by Professor
Nystrom before the Boston Con¬
ference
of
Statler
Hotel, Boston, Mass., Oct, 16, 1944.
Distribution,
;
.
.
''
,
'
;
-!
'
ever
;
*
One
.
'
"
„
,
^'
v
we
'
retail
and
sales
in
diluted with
untrained
and
victory
peep¬
ing above the
h
inex¬
help.
i
o r
z o n we
'
a r e
These changes
made necessary by the na¬
were
of
As
the
see
sun
staffs
anxious
make
to.
sure
So. long as the
that
our
boys
continues, so long as there
surpluses of purchasing power
deficiencies in supply, there
no
special need for sales ef¬
will
not
have
war
effort.
war
off
are
to
march
and
to
another
is
fort.
There
is
at
little,
if any, real promotive sales effort
going on anywhere. Most of the
new
employees in our sales and
distributive establishments prob¬
ably don't
know what sell¬
even
within
to
(Continued
on
page
1810)
Rev.
There is
answer
F. Meyer
is
that
being
made to that question which bears
\
examination.
(Continued
Social
on
tion
and
It
on page
is
DR.
IIARVEY
the
adopted
"We
following
the
disapprove
that has
been
quarters
manent
fasten
to
tion now,
of
the
in
a
are
dual
met here today,
of
policy
of
a
universal
s
done
of i militaristic
nations
ernments,
and
thousands
of
and
there
are
worthy
citizens
who
they
ture
their
of
fathers
we
that
military conscription
policy marks
which
the
a
and
against
gether
how
Harvey N. Davis
it
(Continued
to¬
as
to
to-mini¬
mize any pos¬
sible bad ef-
York
which
taking
counsel
national
New
of
tors
establish
as a
safe-,
administra¬
peace¬
lamentable trend,
Synod
condemns
to
do
second, as
educational
com¬
attempt
what
can
guarding, and
from
The
coun¬
further
to
many
fled
the fu¬
security
and
try
because
pulsory military service in
safe¬
our
gov¬
their native lands to escape
or
be
to
to
guard
con¬
American
such
are
con-
what
e r
ought
na¬
policy
as. a
United
i d
per¬
scription to be followed as a pol¬
icy in time of peace. This has gen¬
erally been regarded
citizens
the
States to
effort
the
upon
in time of war,
I take it,
as
capacity, first,
in certain
initiated
makes protest,
1818)
Technology
We
Ac¬
Education and
DAVIS*
N.
President, Stevens Institute of
resolution:
time,
one
Cyril
tee
genera¬
tion.
on
1818)
page
recommending that
pastors and lay folk make known
Index
page
Buy War Bonds
the
next
serious
Most of thenp do not even
care.
Sales training de¬
conflict
world
present
partments in factories, wholesale
Co.
preserve
we
Presbyterian
First
cepted the report of its Commit¬
can
America?"
have likewise been cut down and
seem
Aircraft & Eng.
them
of
"How
timidly
ing is.
Interstate
is,
<->
Wholesale
tion's
from
war
convert
r
peace
which
peacetime production, there is
to
g^eat many ques¬
tions which we are asking today.
large
and small, of manufacturers and
producers have, as a result of the
war,
been
largely
depleted.
perienced
can
-
have
country
the
By
Church, Brooklyn, Oct. 16-18, ac¬
a
organizations, both
produce. The war has
proved its enormous productive
capacity. Given a little time in
country
are
What Kind?
Opposition
The Synod of New York, meet¬
ing vat
Dean, St. John's University
There
faced.
this
Voices
C.M., Ph.D.*
and distribute the products of in¬
Universal Training—
Presbyterian Synod
REV. CYRIL F. MEYER,
By
demand
nificance upon dustry
and
so
build
national
which, I think, prosperity? This'is the key ques¬
This
we
can
all tion.
question
poses
the
agree, namely, greatest
challenge the business
„
Catholic Prelate
Opposes Program
of
Regular
Features
on
to
public officials and candidates
for office
1824.
NEW YORK STOCKS, INC.
Bond
for - AAA'''
State and
disapproval."
our
Municipal
Brokerage
Bonds
VICTORY
for Banks, Brokers
Hirsch, Lilienthal & Co.
Members New York Stock Exchange
and
oilier
London
-
Exchanges
Geneva
HAnover 2-0<>00
Established
Rep,
25 Broad St., New York
INVESTMENT
4, N, Y.
Telfetype NY 1-210
64 Wall
Cleveland
Prospectus on Requesr
:
Street, New York 5
HUGH
COMPANY
and
INCORPORATED
Albany
Buffalo
Pittsburgh
Williamsport
Trading
Syracuse
Dallas
Markets,
48
WALL STREET
NEW YORK
f
RAILS
5
634 SO. SPRING ST.
LOS ANGELES 14
Bond
Hardy & Co.
Members New
York Curb
CHASE
York Stock Exchange
Members
THE
Department
New
30 Broad St.
Exchange
New York 4
NATIONAL BANK
OF
Tel.
DIgby 4-7800
THE
CITY
OF
Tele, NY 1-733
NEW
YORK
always
Public
Philip Carey
ELECTRONICS
BROKERS
LONG
W.
PHILADELPHIA
Troy
Actual
BOND
1927
SECURITIES
BOSTON
Chicago
and Dealers
R. H. Johnson & Co.
Preferreds
.
INDUSTRIALS
Utility
Manufacturing Co.
•
Bull, holden 8c C°
Kobbe',Gearhart&Co.
<
MEMBERS NEW YORK STOCK
EXCHANGE
Members N.
INCORPORATED
Y.
Security Dealers Ass'n
14 WALL ST.. NEW YORK 5.N.Y.
Members Nero York Stock Exchange
120
45 Nassau Street
TELEPHONE-RECTOR 2-6300
HART SMITH & CO.
Reynolds & Co.
Tel. REctor 2-3600
New York 5
Teletype N. Y. 1-576
Philadelphia Telephone:
Enterprise 6015
Broadway, New York 5. N. Y.
Members
York
New
.
Telephone:
Bell
REctor 2-7400
Teletype NY
1-635
Security
>2 WILLIAM ST.,
Tew
Dealers
X. Y. 5
Bell Jeletype NY
York
Assn.
HAnover 2-098f
1-395
Montreal
IRA HAUPT & CO.
Members
of
Principal Exchangee
111 Broadway, N.
Toronto
REctor 2-3100
Y. 6
Teletype NY 1-1920
1
*
Two Traders
WANTED
and
.
.
:
'
■
Long Bell Lumber,Co.
CARRIER
Jefferson Lake
CORPORATION
BULOLO GOLD DREDGING
«
Conv.
r
Pref.
*P. R.
STEEP ROCK IRON MINES
Strictly
profits.
share in
•
Preferred
BROWN COMPANY, Common &
Exceptional opportunity of¬
fered experienced traders with
contacts.
Preferably utilities
and industrials.
Good salary
• •
.
,
Active Markets in V. S. FUNDS for
We Maintain
Thursday, October 26, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
1794
Bought-—Sold—Quoted
NORANDA MINES
■
Sufpte
Mallory & Co., Inc.
Bought
Sold
—•
Quoted
—
confidential.
*
KING & KING
Goodbody & Co.
40 Exchange
115
HA 2-2772
Fl., N.Y. 5
BROADWAY
.-v
NEW YORK 6, N. Y,
„
Teletype NY
Telephone BArclay 7-0100
TELETYPE NY 1-423
BELL
and Other Principal Exchanges
Members N. Y. Stock Exchange
Ass'n
Security Dealers
York
Analysis'
Request
on
Members
BROADWAY, NEW YORK
120
.
Steiner, Rouse & Co.
York Curb Exchange
New
.
Stock Exchange
York
New
Established 1920
New
Members
jVfcpONNELL&fO
;
REctor
Tel.
1-672
Members New York Stock Exchange
2-7815
25 Broad
St., New York 4, N. Y,
HAnover 2-0700
The Branch
Bemberg, Com.
American
Com. & Pfd.
Grinnell Corp.
Banking Controversy
Elk Horn Coal,
Kearney & Trecker
Kendall Company
Weighing & Vending
Preferred
&
Common
Baltimore Stock Exchange
Broadway, N. Y. S
Members
120
WOrth 2-4230
Bell
1-1227
Teletype A\ Y.
^International
Power Securities
6V2S and 7s
Against Branch Banking And Concludes That It Is Dif¬
ficult To See Any Justification For Branch, Chain Or
Hamper
Small Business And Tend To Destroy Free Enterprise;
And Urges The Strengthening Of Our Independent Unit
Banks "Rather Than Follow A Jack-O-Lantern Labeled
Maintains That Branch Banking Will
Area.
Branch Banking."
servicemen
Our
overseas,
do
They
'
?
3
Exchange
Y. Curb
N.
and
York Curb
Hew
Members
Telephone
Bell
System
hours
Exchange
our
New York 5
31 Nassau Street
Byrndun Corp.
in
1936
6s,
Common
dedicated
land
tunity."
of
& Preferred
20 Pine
Street, New York 5
Telephone:
WHitehall 3-1223
Teletype
Bell
<
1-1B43
NY
anew
in
to
oppor¬
and women
men
undergo a gigantic, perma¬
nent WPA without serious
threat
political and
economic
freedom, since too much Govern¬
to
our
ment
ally
employment
as
be
virtu¬
mass
unem¬
can
disastrous
as
was
made of the re¬
Frank
of
Weakly,
E.
office,
who is leaving to become Presi¬
Vice-President
fective Nov.
*5%
Corp.
•
t;
Slogan Calling For Uncondi¬
tional Surrender. As Unnecessarily Sentencing Thousands Of Our Sons
All
Promised A Camouflaged
Triple Alliance And If By Some Miracle All Germans And Japanese
Could Be Destroyed, Stalin And Churchill Would Go On Demanding
Strategic Frontiers And Maneuvering For Spheres Of Influence.
isn't the machinery of
It
offers
Various thinkers have presented workinternational cooperation which
England Public Service
Preferreds
Penn.
I
U.
Industries Com. &
S.
Pfd.
Finishing, Pfd,
Greene aXompauu!
Membens
!
N.
Y. Security
Dealers Assn.
&7 Wall St., N. Y. 5
Hanover
Bell Teletypes—^NY 1-1120 4*
2-4850
1127-
Preferreds
&
Com. Shearing & Stamping
Brooklyn-Fox 3s, 1957
*Dealt
in
on
New
York Curb Exchange
Frank C.Masterson & Co.
Members New
64
WALL
York Curb Exchange
NEW
ST.
Teletype NY 1-1140
YORK 5
HAnover# 2-9470
.
Belgium To Get Huge
relation
in
to
(Special to The Financial Chronicle)
i.
WASHINGTON, D. C.—Belgium
a
world
larger
shortly get an international
lend-lease credit of about $100 to
will
confederation
which
can
set-
other
motives
means
French
In
war.
loco¬
The
$150 million for raw cotton,
tie disputes by
than
The Cross
Lend-Lease Credit
States
Europe,
and
„
are
freight
cars.
Efforts are progress¬
ing to bring French and Belgians
together so as to remove attach¬
ment of French assets here. Busi¬
g a n
Company
Clay Products
Laclede Christy
Great American Industries
Memoranda
request
on
ness
communications with France
will
week.
probably be permitted next
■:
-"f
be dealt with by every town and
and
F. H. Roller & Co., inc.
Members N.
Y. Security Dealers Ass'n
Labor Office
in
munity in
and
.
every
State and
com¬
-country.
For our
in service and in
our
women
plants have come from
every section—even from
every
cross-roads!
If is a problem vital
war
to America's Main Street.
How vital
is
evident from
the
fact that in 1940, according to data
of
,
Economic
for
Committee
the
like the Inter¬
recent
conferences
on
could
The
■■'J''--
! y■■■
show what
be done.
difficulty is with the atti¬
to peace. A
tudes of governments
vindictive peace will
relationships.
poison social
really want
If we
the enemy nations should
assured that disarmed, stripped
peace,
be
46.mil¬
of conquest, and possessed of trust¬
with jobs. But at the
same
time, in spite of billions worthy governments, they will bg
spent
by the Government for included in the benefits, economic
WPA, doles, and relief for ten
"*A radio addrbss delivered' by
years,
there were nine million
Development, there
Broadway, New York 6, N. Y.
BArclay 7-0570
.
NY, 1-1026
.
Thomas
Norman
food and fiscal systems
111
were
lion persons
ISA
Rocky Mt. Group
ON BONDS WITH
Elects Earl Scanlan
^DENVER,
WE MAKE BIDS
COL.—Earl M. Scan¬
lan, of Earl M. Scanlan & Co., has
been elected head of the Rocky
Mountain group
of the Invest¬
ment • Bankers
Association
of
America.
He will succeed Aaron
W. Pleasants.
Paul E. Youmans,
§pllivan & Co., was named
president,'
and
OR
G.
Elmer
ViceLong-
C. E. tfe Willers & Co.
Members Neio York
Security Dealers Assn.
*
persons
Railroad
Public Utility
Mr. Thomas on Oct. 23 over Sta¬
try.
Trading Markets in
tion WJZ in New York
unemployed in this coun¬
Forty-six million jobs after
(Continued
on page
1801)
(Continued
.
1806)
on page
l AIIlt
&
CO.
/
New
York Stock
Boston & Maine
120 WALL
ST., NEW YORK
i
*'
•
A, B, C, & D
'
'
~
SUGAlt SECURITIES
Quotations Upon Request
TEL. HANOVER 2-9612
70
PINE
N. Y. 5
Teleytpe NY
ST.,
WHitehall 4-4970
1-609
Teletype N, Y, 1-2123
| Members N. Y. Security Dealers Ass'n
! 74 .Trinity Place, N. Y. 6
!
Detroit
-
Pittsburgh
-
-
Cleveland
St.
Common Stock
Louis
BOUGHT, SOLD & QUOTED
INCORPORATED
Members
Union
Cleveland Stock
Commerce
Bldg.,
Exchange
Cleveland .14
Telephone MAin 8500
HA 2-2400
Teletype NY 1-376-377
j private Wires to Buffalo
Railroad
Maryland
Drydock Co.
Preferreds
WM. J. MERICKA 6- Co.
•
I Troster,Gurrie & Summers
N. Y.
Teletype NY 1-2361
REctor 2-7634
Diamond Alkali Co.
National Airlines
I
120 Broadway, N. Y. 5,
1.
Buffalo, Niagara & Eastern
$1.60 Preferred
Air Lines
Exchange
Sugar Exchange
j
G.A.Saxton&Co.,Inc.
The new
take office on Nov.
Chicago & Southern
Members
1
STOCKS & BONOS
Secretary.
City.
elected
officers will
well, Boettcher & Co., was
Henry Holt & Co.
5% due 1969
New York Coffee <£r
Industrial
-
Indiana Limestone 6s, .1952
asking $200 million for
locomotives.
practice ori zations
•
Union, the In¬
ter national
our
New
(Va.)
Debentures
& Sl/i %
sugges¬
United
of
—.
——
.
few large industrial centers. In¬
it is a problem that must
men
Issues
J
Says Dumbarton Oaks Plan Merely
To Death,
hamlet
Preferreds
McFadden Publications
Teletype NY 1-1919
Common
stead
a
Electric
(Va.)
WHitehall 4-6120
Broadway
Bell System
1, 1944.
national Postal
.
States
Members New York Curb Exchange:
65
of Washington
ployment.
'
\<•
This is not a problem that faces
Central
Members New York Stock Exchange
Chicago
director
and
Edward A. Pureed & Co.
Socialist Candidate For President Views
the chief difficulty to peace.
understand fully that we
ours
cannot
H. G. BRONS & CO.
These
1920, and Mr. Miller
At the same time an¬
nouncement
tirement
Mr.
1921.
since
firm,
since 1918.
Aeronca
Losing The Peace
able
want
of freedom
a
Struthers Wells
the
with
Darfler since
By NORMAN THOMAS*
free
down the road
Garis
L.
Roy
Francisco
L. H. Gilmer
M.
Central States Elec.
"the
high tions for \ re¬
privilege of gional federa¬
marching tions,
like a
1952
Street); Walter L. Darfler and
W. Miller, of the Chicago of¬
fice (123 South La Salle Street).
Mr. Carlson has been associated
Company
■
They
/
Common
St. Louis-San
sys¬
a
of
/
enterprise,
Indiana Limestone
Income 6s,
want
—
jobs in
private indus¬
try
-
in
fac¬
war
tem
-
long
good
1-1548
■
We Are
men
now
tories
COrtJandt 7-4070
Teletype NY
——'
or
women
working
Vanderhoef & Robinson
Southwest Natural Gas
home—wherever Properties/Washington, D. C., ef¬
after V-Day to leaf-raking-and
super
—and the
on
the seas, here at
WPA.
Instead
they
a
branch offices
our
Stuart & Co., Inc., of the
appointment of three new VicePresidents: J. Howard Carlson, of
the New York office
(35 Wall
sey,
not
want doles
3/6$, 1956
Traded
on
Direct wires to
Elects Three Y.-Ps,
dent
they may be—do not wish to return
apple selling.^
Savoy Plaza
*
For And
Group Banking Beyond The County In Which The
Parent Bank Is Located Of Within A Limited Trading
; licit
Halsey, Stuart & Go,
Announcement is made by Hal-
Vanderbilt University
Southern Economist Reviews The Arguments
Melville Shoe, Pfd.
Peerless
GARIS
ROY L.
By
NY 1-1557
New Orleans, La.-Birmingham, Ala.
29
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Direct
r( '
Broadway, New York 0
Private Wire to
Cleveland
■Ici'i'etf
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Street,
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5, N, Y.
Volume
THE COMMERCIAL & FINANCIAL
Number 4328
160
The
U.
Reg,
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interested in
are
1
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•
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William Dana
-
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i
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Thursday 1
Girl
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on
If
that
part,
them off
entire
the
in
have
you
of
cast
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Obsolete
our
represent
any stocks
"bloomers"
give
us
your
hands.
chance
a
to
Obsolete Securities Dept.
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::1
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the
with
and
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take
>
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*
every
outfit
finally
Department.
Spencer Trask & Co.
i
,>
week I;
a
could
that
Seibert, President
Thursday, October 26, 1944
Trico Products
We
'
William D. Riggs, Business Manager }.
Pettibone Mulliken
GIRL
PREFERRED STOCKS
Herbert D. Seibert,
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':
•
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corporation,
banking,
clearings, state and city news, etc.)
•••',
Board of Trade Bldg.
Broadway
NEW YORK 4
!
and every
Dealers Ass'n
1944
by
Reentered
Securities Department
William
Company
Dana
B.
second-class matter Feb¬
as
ruary 25, 1942, at the post office at New
York,
Specializes in
N.
under
Y.,
the
of
Act
March
3, 1879.
Subscriptions . In United States and
Possessions, $26,00 per year; in Dominion
of Canada, $27.50 per year; South and
TITLE COMPANY
Central
America,
Spain,
Mexico i and
$29.50 per year; Great Britain,
Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
CERTIFICATES
Cuba,
Continental
;
-
Call
for quotes
as
Other Publications
1 Problems Of The Transition
■;Y
Naess
&
*Members
40 Wall
New
Stock
York
St, N.Y. 5
The
Japanese War May Last Two Years After Germany's Defeat. Accord¬
ingly, We Will Have A Period Of "Hybrid Economy" Of Part War And
Part Peace, With Lower Production, Reduced Incomes, Declining Prices
And Continuing Government Deficits.
Predicts Unemployment Of 4
Millions, Raw Materials And Other Surpluses, Government Maintained
Exchange
Sharp Contraction Of Business Profits. Warns Of
Need For Continuing Government Controls And Urges Cooperation Be¬
tween Industry, Labor And Government As A Satisfactory Solution.
few years the «>
United
will
States
nomic
tion of
to
After the
war
the
President, Westinghouse Electric International
8
n
t ernational
Business
it,
educational and cultural
own
somewhat less
committee. The
word—cartels.
Probably no
subject, in
refer ence to
domestic
and
foreign pol¬
is
re-
icies,
c e
i
v
i
much
tion
n
g
so
by
<o
u
ur
W.
manY
ferent
different
tion
subject.
by
committee
—
address
committees,
J-
eign
.
Teletype,
Wire
to
i
NY
Los
l-248»
'
Angeles
.
(Continued oh page 1816)
made
topped
lions
Session
the
Committee
Agreements
Trade
of
the
Council.
(Continued
on
:
Agreements
-
v
Laclede-Christy Clay Pr.
Miller Mfg. Co,
Segal Lock & Hdw, Pfd.
V"y;y
i
:
hy Bought—Sold
several
attach
July 22, 1944,
there
pointed out
''Chronicle"
the
co
product
previously
as
to establish
indications
delegations
reservations
Members New York Security Dealers Ass'n,
170 Broadway
Bell System
wished
or
along with their signatures.
However, at the urgent request
Monetary
of Lord
^
Fund and In-
British
1808)
t ernational
ers
For¬
for
Re¬
and
Develop¬
ment.
Al¬
though
the
Final
Act
the
And The 5% Rule
Keynes, the head of the
delegation, and other lead¬
of the
Bretton
of
Conference, these
and
ervations
construction
Equity Securities
statements
Capital Could Not Be Marketed If Rule Is Enforced
In response
to many inquiries during the past several
the SEC undertook an investigation of the costs of
all
M.
of the United
sented
there, and
Con¬
w a s
(he 44 delegations that signed the
signed by the
delegates
of
Bratter
('Final Act" was not lost sight of
Nations
was
repre¬
and, accordingly, officials of the
Treasury Department which were
(Continued
considered
on page
Punta
were
withheld, with the understanding
that they would be made a part
of the proceedings.
»
Y
Since the adjournment of the
Bretton
Woods
Conference, the
fact that important reservations
had been made by a number of
ference
Herbert
Haytian Corp.
res¬
Woods
SEC Report Gives Indication That Small Scale Equity
COrtlandt 7-oiyu
Teletype NY 1-84
state¬
ments
an
International
Interna¬
National
on page
Gisholt Machine Co.
Haloid Corp.
unanimous
a
in
agreements on that
Foreign Trade Convention,
York, Oct. 10, 1944.
Mr. White is
of
as
BrettonWoods
the
of
that
signed the were,
by Mr. White be¬
General
Federal Screw Works
WASHINGTON, D. C., Oct. 25.—The Treasury Department today
for publication the reservations made by the various na¬
tional delega-^
Bank
years,
System
released
National
New
tional
Security Dealer« Attn,
REetor 2-5288
Bell
Private
meeting in New York,
Oct. i8,1944.
(Special to The Financial Chronicle)
which is considering
Second
Chairman
York
lllBroadway,New York 6, N. Y.
Association
produce
Sold
Request
Member«
New
before
By HERBERT m. BRATTER ■"/ ^
overall inter-departmental
31st
Small Business
*Ah address made by Mr. Naess
the American
Statistical
the
and
To Bretton Woods
Congress in Wash¬
departments have their
special
an
and better methods
new
the
the
the
—
on
J.F.Reilly&Co.
of technique and our fine indus-
the
Reservations
cartel
a
Most of the Federal gov¬
ernmental
own
Bought
*Circular
Barfgis Bros.
being given to this burning
in
conclusions
ers,
have
to
ington, has committee considera¬
diL
places,
increased number of skilled work¬
nd
has its
-—
Commerce have
the
different people, with
so many
many
£0
m-,
White
of
fore
sideration,
»
our
pro¬
a
cartel committee. Most Cham¬
*An
con¬
of
management
atten¬
and
are
Rohr Aircraft
quantities of
can be produced with
greatly increased capacity, the
enormous
as
euphonious
title, for the
respectable
w a r
is this subject of car¬
tels.
Every national organization
of importance —• trade, political,
bers
Northrop Aircraft
upon
potentially
goods that
problems
gigantic
about
Agreements
an
1
skill
be the national«•>
I
dependent
facilities,
labor,
subjects being considered in connection with national
post-war planning, none is receiving more attention than what shall
^National Airlines
will
market
war
We
Of all the
policy towards
The
management.
Yyy^:;:/
^Mid-Continent
markets at home
and abroad for the disposal of the
those
Recommends Creation Of Council Of Industry To
%:y:.
Teletype NY 1-1203
Liberty Aircraft
largely disappear and we will be
duction
Cartel, Mr. White Asserts That Our Policy On This
Subject Will Shape Not Only Our Foreign But Our Political Relations
Express Statesmanlike Thinking On Cartels.
of
From
■
of
-pi - j 'jy/'
After Defining A
WHh Other Nations.
HAnover 2-8970
produce
economic
the
-
Broadway
New York 6, N. Y.
problem will be not only
market.
equally
point of view
Co.
39
f
eco¬
tremendous
Program
1' :y''py-, y:V;
Members New York Security Dealers Assn.
great quantities of
goods, but to sell them in a peace
an
By JOHNW. WHITE *
-
Intormatlon
L.J. GOLDWATER & CO
—
manded.
faced
be
peace.
A
Complete Statistical
quantities of goods if they are de¬
with the solu¬
exchange, remittances foi
foreign subscriptions and advertisements
must be made in New York funds.
—
QUOTED
-
During the last few years the United States has overcome- and
solved successfully tremendous problems of war.
During the next
problems
Cartels
SOLD
.
:
in the rate of
Bell Teletype NY 1-2033
BOUGHT
Price Floors And, A
NOTE—On account of the fluctuations
WHiiehaU 4-6330
CERTIFICATES
*
Investment Counselor Holds That Transition Will Be Long Because
$20 yr.
Monthly Earnings Record—Mth.. .$20 yr.
Newburger, Loeb & Co.
TITLE COMPANY
Cummings, Investment Counselors, New York
Bank and Quotation Record—Mth.
"
i
By RAGNAR D. NAESS*
' ?: ">;■
,.
■"
Alegre
Merchants
Distilling
Tybor Stores
DUNNE & CO.
Members New York Security Dealers Assn
25
Broad
St., New York U, N. Y.
Tel. WHitehall
3-0272
1820)
obtaining equity capital by small and medium sized indus¬
trial concerns!
shown in the
trial
averaged these costs
as
PANAMA COCA-COLA
registration statements filed with it by indus¬
concerns
The
It has tabulated and
having assets of not
over
Dividends declared
$5,000,000.
Dividends
In the
stocks
were
issues of
common
and
preferred
tabulated, and this cost, in percentage of
gross
proceeds from the issues, amounted to 17.9%,,of which the
(Continued
on page
1800)
1943
-
-
C'rcular
—
Public National Bank
$2.75
3.65
on
Third quarter analysis
—
available
30
C. E.
74
request
Trinity Place, New York 6, N. Y.
BOwling Green 9-7400
Unterberg a Co,
Members New York Security Dealers Assn
Established 1914
Telephone:
on
request
HoiiRsseSTrsster
"V.
& Trust Co.
$4.50
Approximate selling price
period from Jan. 1, 1938, to June 30, 1944, the
flotation of 184
date
to
1942
report indicates clearly that if underwriters and
dealers of securities of small industrial companies were lim¬
ited to a gross profit margin of 5%, there would be an end
of market transactions in such securities.
costs of
1944
Teletype:
81
*
NY 1-375
Broadway, New York 6, N. Y
Telephone BOwling Green 9-3565
Teletype NY
1-1666
;»^hBUIU SPAl 7w
»%
m
Lju/L i
■..
THE COMMERCIAL & FINANCIAL
179-6
Thursday, October 26, 1944
CHRONICLE
DENVER
BOSTON, MASS.
FASHION
men's
Makes
PARK,
clothes; "Stein
Inc.
An
Bloch", "Fashion
Owns Weber & Heilbroner.
Also
sells to retailers everywhere.
No reconversion
problem.
Attractive postwar outlook.
Park", etc.
our
I
Alabama Mills*'
detailed report.
HAnover
"
2-0600
1-210
Emerson Radio
OFFICE
r
'
H. & B. Amer. Machine Pfd.*
Circular
Request
on
Middle West
'
-
Title Guarantee & Trust
>
'*
H i
Loft
"A"*
Collier P.
Com.
Com.
President
'
Roo
Candy
Herfington
Paper
' •
Pierce
Butler
Punta
Alegre
'
Manufacturing
:
Sugar
*
.
Tokheim
Tank
Oil
United'Drill
"A"
United
cn~a»
'B" "
lationist
FSi"'^5
E
■
Export Air Lines
Chicago & Southern Airlines
j
had ''paraded before
1
Continental Airlines
Mid-Continent Airlines
|
National Airlines
I
/
1
Elec.
Derby
Neutrality
Iowa
"scuttling"
Com.
cated
i
"
Arr.
Southern^ Util.
Com.
Com.
Mass. Power & Lt. $2 Pfd.*
Nassau
&
Portland
Suffolk
Elec.
Ltg. Pfd.
Power
Pfd.
Prior
Natural
Mont
General
Instrument*;
International
Stromberg
>
*
/.'l.
1
Detrola
on
Pacific
Company
o f
C a 1 i f ornia,
Hey
Secretary,
McOmber,
S.
Revel
Miller
A.
&
elected to
Directors, Clifford
E. Poindexter.of Turner-PoindexBoard
of
Company, H. A. Cottingham,
Dean
Witter &
Company, and
ter &
.
Leo B. Babich of Hill Richards &
good to come back
Company. John C. Hecht of But¬
,
country; equaled only by his
service
in the ' United
Appreciation Possibilities
present
Request
States Navy.
the
To
The
people of Minnesota .he
of National
stock
common
Distillers
Products
Corp. appears
gave,
m
.inr
something else very precious
long absent from our na¬
tional life.
He gave teamwork
attractive for its appreciation pos¬
and too
sibilities
government, not one-man govern¬
ment.
As
Members N.
120
Y. Security Dealers Assn
BROADWAY, NEW YORK 5
REctor 2-8700
NY J:?H
'Phone to. Philadelphia
ENTERPRISE 'PHONES
Direct
Hajtraem
Buff. 6024
•
man-has
so
that
Boa. 2100
•
a
State
ably
and
that
von
will
(Continued
everyone
elect
by
on page
an
sue-/
esting study may; be had upon re¬
of the
over!
research
Hentz & Co.
department of'H.
.•
■
•
;
;t
-
r
6s
'■
-■
-
"//•;■■
So'weslern Pub. Serv. Com. & Pfd.
North
Texas
Check
us
-■«■-/
v''.-
Company
'
& Pre fervid vr "•
Common
Wickwire
|
'
John; Irving Shoe£*
'
Company
Galveston-Houston
All Texas
4(is & 5s
4s,
Alan Wood Steel Preferred
•
;
'
j
i>
Spencer Steel
Common
Utility Preferred Stocks
on
Southwestern
Penington, Colket & Co.
Securities
J 23
Broad
S.
St.,
Houston
Hanover 2-0310
Teletype PH 180
San Antonio
-
Pa.
New York Phone:
Pennypacker 7700
DALLAS, TEXAS
9,
Philadelphia
Phila. Phone
RAUSCHER, PIERCE Cr CO.
;
ST. LOUIS
Buckley Brothers Adds
Three In Los
Angeles
(Special to The Financial Chronicle)
Stix & Co.
CALIF. —
Henry Marin, Marshall S. Riddick
ANGELES,
Walter A. Wolford
and
associated
come
Brothers,
have
INVESTMENT SECURITIES
be¬
with
Buckley
Sixth Street,
530 West
509 olive:
street
members of the New
delphia
York, Phila¬
Angeles Stock
ST.LOUISI.MO.
Los
Mr. Riddick and Mr.
Wolford were formerly with G.
Brashears & Company.
and
,
Exchanges.
"Let There Be
Members
St.
Louis
Stock
Exchange
!"
Ligh I
Eugene C. Dinsmore, 312 Pat¬
Building, Omaha, Nebraska,
Attractive Possibilities
terson
is
giving out books of matches in
gold covers with the
hope that he may discover where
Nebraska municipals are,hiding.
attractive
G.
Saxton
A.
Situation Of Interest
MacFadden
offer
Publications,
■
interesting possibilities, ac¬
cording to a descriptive summary
prepared by Bristol & Willett,
115 Broadway, New York City.
Conies
had
of
this
from the
summary
firm
upon
may
be
request.
Inc., .70
issued
discussing
memorandum
a
factors
favorably
affecting
New
Great Northern Railway
5s of 2032.
of
Inc.,
Co.,
City, have
Orleans
Common and preferred stock
&
Pine Street, New York
study of the
quest from William Loss, manager
agrees
1821)
a
income
by H. Hentz ;&
Co., Hanover Square, New York
City, members of the New York
Stock Exchange and other leading
Exchanges.
Copies of this inter¬
cessfully conducted the affairs of
the
liberal
yield, according to
result, when he left for the
Navy, there was a first-class man
ready and able to fill his shoes.
That
its
v.
■■■*
situation prepared
and
&
4i/zs
Annuity
Sold i- Quoted
Dr. Pepper
LOS
Company, Treasurer.
The following were
■'
the
'
/
Southern Union Gas Common
„—.—
his
Carlson
Circular
L.
*
Itepublic Insurance
i n,
again to Minnesota, the State of ler-Huff and Company and Wil¬
leader, Comdr. Harold liam J." Zimmerman, the retiring
Stassen.
As a great Governor and
President, were elected National
a
bold and courageous leader of Committeemen.
opinion, he rendered services to
«n
1
CHICAGO TRACTIONS
,
Clifford
—
,
Witter
that gallant
Submarine Signal
*
r w
g o s,
Fellow Americans:
Magnavox Corp.*Majestic Radio & Tel.*
P. R. Mallory*
,
Co., VicePresident, Jo¬
seph F. Galle-
part
It's mighty
'
Pa. & New York Canal & R. R.
&
isolationist policy
"Times" follows:;^'':v
Governor Thye, Mrs.
Stassen,
Gas
"A"*
Lab.
Dean
the
York
-
Du
1933,
PH 30
Y. C.
7-1202
Lehigh Valley R. R.
Bought
Nicholas
K i
P.
Eco¬
indi¬
London
in
St., Philadelphia 3
Private Phone to N.
offi¬
elected
were
address, as reported by the New
Puget Sound Pi;. & Lt.
Queensboro Gas & Elec. Pfd.
.'rmthwest
Stock
Pennypacker 8200
Dearborn 1501
~
Bingham,
Other
American rep¬
the
of
pre-war
f
cers
of the Democratic
Administration; and its adherents.
The. text of Governor Dewey's
the
on
and
a
J.
Walter, and
Hurry.
Act of 1935, the
Conference
nomic
Pfd.
Div.
Power
o
long-dead
past," contended that various acts,
such as the passage of the "fruit¬
withdrawal of the
Electric
Water
Federal
Illinois
Gas
&
Gas &
Bag
BOENNING & CO.
1606 Walnut
4
DALLAS
eeding
Zimmerman
a
the American
resentative from Geneva, and
B.rmingham Gas
Conn. Light & Power
Cons.
Common
COrtlandt
11,
William
people the ghosts of a
less"
UTILITIES
231 So. La Salle St.
Wednes¬
sue c
Repub 1 i C an
Dewey
a
day," Oct.
Congressmen.
Governor Dewey,
after asserting that Mr. Roosevelt
|k/;LINES/%■:/>,/
American
i
continuing interest in:
&
Paper Co.
:
of
Angeles,
meeting
held
icy to leading
flu
Thoman
L."
at;
iso¬
pol¬
pre-war
liiiiiis
A
Los
the
ascribed
Pump
&
Association
Traders
the-la tter
v
A
•
Stove
Wa-na
>•;
.
&
Bond
Pol¬
Associa¬
tion, in* which
*
.
,.
..
the
21,
icy "
*
Pfd. & Wfnts.
in
Foreign
,
Remington Arms
H. H. Robinson
»
a
.'///•■
CHICAGO
ANGELES, CALIF.—Clif¬
Hey of Nelson Douglass &
Company was elected President of
City
Oct.
on
before
Pollak
Talon
Y.
N.
>
•
ford L.
the
in
address
Mokan
Textron
have
LOS
sev.elt,
made
Pfd.
&
Marmon
'
Angeles Traders f
Elect Hey President
of
statements
■'<
-
Fire Insurance
; 1
Corporation
,s "
Machine & Welding
B. Amer. Machine, Pfd,*
Oxford
Common
COMSTOCK & CO.
Los
largely to replying
to
•
Bak.
devoted
was
Gaumont
Interstate
Los Angeles
Hagerstown, Md.
Telephone—WHitehall 3-7253
Southern Advance
address
s
•
Federal
&
Y.
We
War Stock
/'
again discussed post-war foreign policy.
Minneapolis, in which he
Eastern
H,
N.
Long-Bell Lumber
''•■/;/ ;
Philadelphia 2
Walnut Street,
Pittsburgh, Pa.
Outstanding
Post
;
between
Oct. 24, delivered an address in
Governor Thomas E. Dewey, on
Pfd.
Glass, Com. &
"B"
Brockway Motor*
Eagle
An
Spring St.
Trinity 3908
CG 362
Systein
New York
lican Leaders.
Car
Cement
Randolph 3002
Wire
(Circular sent upon request)
Amer. Window
Crowell
LOS ANGELES 14
650 S.
Angeles Stock Exchanges
Los
Private
Philadelphia, New York and Los Angeles
1529
From Prominent Repub¬
Congress, And Announces Pledges Of Support
Aspinook Corp.
Cons.
-/
MARKET
Teletype: NY 1-375
BOwling Green 9-7400
Republican Candidate Blames Roosevelt For Scuttling The London
Economic Conference, "The Most Isolationist Action Ever Taken By
An American President."
He Promises To Work Harmoniously With
,
INDUSTRIALS
Co.
BUCKLEY BROTHERS
DISTRIBUTION
Congress Can Enable Swift Use Of
Force To Preserve Peace-Dewey
Standard Stoker
Request.
on
.
135 La Salle St.
Purolator
v
Common
Memo
Members New York, Philadelphia and
CHICAGO 3
Riley Stoker*
Scovill Mfg.*
Buda
Pacific Coast
—
SECONDARY
Trinity Place, New Yofk 6, N. Y.
Telephone:
Stoker
Standard
-
Telephone
&
Common
Established 1914
74
Lisht
Wholesale Distributors
•
^
•
Triumph Explosives
Wickwire Spencer
Common
Western
For
Nu-Enamel;
British
I
■!
United Printers & Publishers
UNDERWRITERS
Distilling*
Son*
<
PHILADELPHIA
CARTER H.C0RBREY&GO.
International Detrola
Liberty Aircraft New
Magazine Repeating Razor
Majestic Radio
McFadden Pub., Com.
&
i
i
Bldg.
Denver 2, Colo.
Teletype BS 69
1990
310 par (callable at 14 plus arrears)
Selling price—12
B>d
300 California
,
CHICAGO
$.60 (Arrears $4.05)
Dividend Aug. 31, 1944
Great American Industries*
Axton-Fisher
B. E. SIMPSON & CO.
SQUARE
BOSTON 9, MASS.
POST
10
.
6% CUMULATIVE CONV. PREFERRED
Electrolux*
Auto
.
I
lerner & co.
Teletype NY
AMERICAN BANTAM CAR
Douglas Shoe, Com. & Pfd.*
Deep Rock Oil
■
"Empire Lee Mining i
i
•<
Appl.
Continental Casualty
Moxie*
Elkton
!
request
upon
*
■.
•
,
sent
|
;L.
/:
;
-
Tel. HUB
Merchants
Alma Lincoln Mining i
Dr. Jack Pot Mining
Market 12%/- 13%
,
Circular
Auto Car
Bendix Home
Stock
/
.
ST., NEW YORK 4, N. Y;
BROAD
25
Hardware*
American
the market to buy:
in
are
Members New York Stock Exchange
Aetna Standard Eng.
J
We
Class A
SIMONS, UNBURN & CO.
'
i
-;.j
31.25 Cumulative Participating
,
Aetna Life
Stock
Cement
Dividend Arrearage
a
Riverside Cement /
All investment dealers should send
for
Outstanding
With
Copies of this
esting'memorandum, and
a
^inter¬
stydy
of the situation may be had from
the
the
firm,
upon
request,
current, issue
of
as
well
their
as
"Pre¬
ferred Stock Guide," and a circu¬
lar
on
Standard Stoker Co., Inc.
Volume
& FINANCIAL CHRONICLE
THE COMMERCIAL
Number 4328
160
1797
'•
WE BUY
Randall
BONDS
Company
WITH
"B" Common
H
•
j--
George R. Cooley & Co.
•
Telephone WHitehall 4-3990
1-2419
Teletype NY
Members New York Stock
"Campaign Promises"
Exchange
npHERE's
profit in promises—when
no
closing
Desires
York
with
connection
Stock
unlisted
as
carrying
I\Ioderate
Christian,
basis.
connected
and
in
versed
cial
D 25,
Financial
&
Spruce
established
-
|
well-
lucid
preparing
Write
on.
25
Chronicle,
St., New York 8, N. Y,
Spruce
25
York
New
do
Financial
&
for effective assistance when .such
us
why
St.,
8, N. Y.
v:
means we
WANTED
With
excellent
to
a
new
or an
unlisted firm.
you,
we say
will do
just that. When
on us
and
see
what
that
we
Dominion Bank
Imperial Bank
will
Provincial Bank of Canada
from supplying practical
have
you next
we mean
scarce
when
a
Royal Bank of Canada
issues, it
problem,
we say
that
HART SMITH & CO.
and should be mutually
can
WILLIAM
52
pleasant and profitable?
R. W.
New York
Pressprich & Co.
Assistant Trader
HAnover
NY
2-0980
1-395
Montreal
Toronto
American Water Wks. & Elec.
5s,
1975
old line
68 William Street
Controls
201
some
1
NEW YORK 5
:
Assistant Cashier
Community Water Service
Devonshire Street
BOSTON
'■■■■•■■:
Chronicle, 25 Spruce
Good
Central Public
St., New York 8, N. Y.
Box
G
8,
•
•
«■
4s,
1948
Eastern Minnesota Power
GOVERNMENT, MUNICIPAL, RAILROAD,
Chronicle
PUBLIC
•
Post^War Depression?
By WILLIAM R.
•••••"',
.1
•; ,<
Utility SVgs, 1952
East Coast Public Service
Members New York Stock Exchange
O
Salary " and Bonus
Arrangement
1946i:•
6s>
10
Address Box S 44, Fi¬
ness.
Teletype
HOUSE
listed and unlisted bond busi¬
nancial
St., N. Y. 5
Bell
:x
.
con¬
nection with New York Stock
Exchange firm
Bank of Nova Scotia
BY OVER-THE-COUNTER
background
make
Bank of Montreal
can
f'
;•
analyses to locating and obtaining
cooperation between dealers
desires
help
can't afford to indulge in "campaign
we
everything possible to help
data and
why not call
TRADER
•-fX '
•
promises" that can't be fulfilled. When
there¬
fully. Box L 10.
Commercial
Sun Life Assurance Co.
Canadian Bank of Commerce
That's
of unearthing special situa¬
and
Steep Rock Iron Mines. Ltd.
substantial
a
Paper Co.
Noranda Mines
transaction, it s performance that counts.
a-
mutually'profitable/
prove
experi-
capable
bulletins and reports
Commer¬
Chronicle,
of
services
tions,
unlisted
who look to
progres¬
statistician,
seqks
Best of ref¬
bonds.
Box
erences.
dealer needs help
part of our business today, and we have many dealer friends
over-the-counter house
-enced
thoroughly
trading
stocks and
Well
business.
position in
Profit shar¬
unlisteds required.
ing
:
sive
International Utilities
1
STATISTICIAN
New
house,
view to obtaining listed
a
well
as
with
Exchange
:■
a
Cooperation with other dealers accounts for
TRADER
Fanny Farmer Candy
.
Minnesota & Ontario
Teletype NY 1-955
Dlgby 4-10W)
.
Paper Co.
Company
Electrolux
v
St., New York 5, N, Y.
I Wall
-
Brown
••
.
GUDE, WtNMILL & CO.
INC.
152 William St., New York 5
V
1
—•
y •
...
Abitibi Power &
Dealers Don't Like
Coupons Missing
~
if
AND
.
INDUSTRIAL
UTILITY,
5
BONDS
yz
1951
s,
Peoples Gas (N. J.) 5V2s, 1980
INVESTMENT STOCKS
Frederic H. Hatch & Co.
'J
Incorporated
BULL,
Members
W. R. Bull Management Co. New. York City
*
Bell
1
Of Prevailing Price Controls There Is No
Threatening Com¬
modity Price Collapse As Occurred After The Last War And Therefore
Any Cause For A Post-War Business Depression Stemming From A
Commodity Price Boom Is Simply Not In The Making.
Y.
Security Dealers Ass'n
Wall Street
63
By Carefully Analyzing Conditions Prevailing After World War I And
Cbntrasting Them With Present Conditions The Writer Concludes That
N..
New York 5, N. Y,
Teletype NY 1-897
,
Because
There are many today who belive that a period of industrial de¬
pression and collapse of commodity prices will follow shortly after
the
present
war
\v 1
\
did
War.
ZnMUStt/*
M.
after.
;
V-
,
business at the >
Thomas
;
Francis
1920-1921
speak
and
J
business
ment
W., Phelps,
I.
du
Co.,< will
"Problems
on
in
partner in
Pont
of
Invest¬
Regulated Market," at
a
which,
search, 66 West Twelfth St., New
York
City, on Friday evening,
"Oct. 27, at 8:30 p.m;, Mr. .Phelps
v
i
fol-'
are
i d 1 y
v
re--
membered. As
to
what
take
is
.
•
R.
William
the
modity speculation and hoarding.
materials
and
products
to
and forward
get at any price,
buying in many lines
became
rule.
the
-Business
generally, active and
volume,
were
and
outcome.
The
the
■
;
\"
There
therefore
were
few
a
natural
*
following tabulation depicts,
action
of
t
-
some
(Continued
the
.
major indices
on page
bring about
'V~V
1317)
is
Chair¬
A' S.
Harry J. Rudick will speak
"Tax
Avoidance
^Provisions"
Tuesday, Oct. 31, at 8:30 p.m.
Rudick
is
..
on
on
Mr.
Chairman of the Taxa¬
1
d
v e
r.d
healthy
nomic
i
-
the
City
of
New
York, and is. one of the tax ex¬
perts taking part in the weekly
symposium of which Alex M.
tax
Hamburg is Chairman.
,
All the boys
Simpson, attrac¬
tive wife of Bryan Simpson, B. E.
Simpson & Co., California Build¬
ing,. Denver,:, Colo..-, has
really
added something to the giving out
a
in to say
number
hello in
of
the
boys stop
person.
Sati;
look
.
Los
there
that
on
i LOS ANGELES,
page
650
P.
O'Connell
A.
„
.
cutbacks, termination,
disposal,
reconversion
and all
important phases of demor
There
is
a
-new
ten¬
dency in Washington to raise the
estimate of cutbacks from 40% to
estimated
by reliable
authorities that cutbacks would be
Munition
^ Ground
Aircraft
follows:-'.'- -V !>'.
-
Products'Army Equipment-'-——-..-I''
—
and
i
•
Francisco
;
Honolulu
General Tin Investment
Tokheim Oil Tank &
*
Pump Co.
V:
Ohio Match
-
V
v
Universal Match
CALIF.—Vic¬
Spring
Company,
Street.
Mr.
with With-
& Company,
thereto
G.
he
was
Inc.
Frederic H. Hatch & Co.
Incorporated
Prior
Members
Vice-President of
Y.
N.
Brashears & Co.
Bell
>
m
Security Dealers Ass'n
63 Wall Street
New York 5, N. y.
Teletype NY 1-897
of
on
as
South
erspoon
the German war
has accelerated activity in Wash¬
about
San
»
-
1815)
Troendle recently was
....
It is
BArcJay 7-4300
^ I ••'
York"*;'
Angeles
tor H. Troendle has become asso¬
"thegrowing
f;;
crisis in Europe and the possible
60%;
Exchange
Exchange
Stock
ciated with Klehmet &
1945,
prosecution
Co.
York1 Stock
14 WALL STREET
-New
(Special to The Financial Chronicle)
recoil
for
New
Francisco
and other security and, commodity exchanges
75
V. H. Troendla With
*
ery." Refer¬
ring to the out¬
of auotes.- Her cheerful .voice has
made
Members
American Maize Products Co.
eco-;
•
bilization.
along Seventeenth
Street say Clara
fact
:.
Direct' wires
Dean Witter
34
that
!■:-■.
,
a
(Continued
ington
surplus
"Clara Has II"
of
those
o
'a
Stated
of
^
n:
f* ;"t"
e.
of
Bar
view
Pacific
on
including
possible drop of about
$30 billion in war expenditures. If
Mr. O'Connell
the
}
reconver¬
L.
Weissman
."In
would be
to
sion: problems
that must be
o
,
post-war
and
o
Treasury War Expenses—
.'called
ence,
attention
s,'
a
if any effective price ceilings.- A
spectacular price advance in com¬
was
Re¬
of the financial authorities
one
was
rising.conditions
on
credit
favorable.
modities
Social
tion Committee of the Association
general shortage of goods caused
by the war demand led to com¬
hard
for
.
Confer¬
man.-
Bull
the former period.
At the time of World War I,
became
School
Construction
institutions
securities,
which also have eastern markets.
of
Rudolph
.
enl ightening
deductions may be drawn by com¬
paring certain economic condi¬
tions of the present with those of
Certain
New
Genera 1'
Chairman
the
and
Coast
taking., part in ..the weekly series
."Ten Years of the SEC," of which
may
lac el-
p
after the present war, some
dealers
War, But Sees A Period Of Prosperity After Re*
conversion Similar To That Experienced In The Twenties.
War
,
(e.w.t.)
Quotations and executions for brokers,
Million Unemployed At
,
the
it
to 10
Open to 5:30 P. M.
Distribution oil October
disasters
lowed
P. A. O'Connell Predicts 7
'
collapse of
the
Exchanges
1945
:i
For Social Research
time, the post*
business
Pacific Coasi Stock
In welcoming delegates to the (Sixteenth Boston Conference on
16, P. A. O'Connell, President of E. T. Slatt e r ya n d.• ;
L*-■■
^ f
—r
—" .."
——
Naval Vessels
64
Company and
Address New Schoc!
in active
war
Tof|
-
By those'who
were
Rudick
»
'fy
I.
Protracted Prosperity
End Of
as
World
[ Expects
Equipment-
^
V
50%
58
35
Shute To Represent
v
Milwaukee Go. In St. Paul.
vST. PAUL, MINN.—Preston B.
Shute
will
Attractive Rails
•
The
current-
situation
in
St.
Louis-San Francisco issues offers
represent The Mil¬
Company in St. Paul and
Minneapolis, it is announced by
interesting possibilities, according
to a- memorandum .prepared by
Vilas & Hickey, 49 Wall St., New
Clarence
York
dent in
Yock Slock Exchange.
Copies pi"
this memorandum, and
a
waukee
L.
Finger, Vice-Presi¬
charge of the St. Paul of¬
fice. Mr. Shute who has been with
City,
? the
firm in Milwaukee will make
on
his,
headquarters, at the, St. Paul
Pacific Ry.
office
in the Endicott
Building.
members of the New
bulletin
the exchange offer for Central
Co.,
may
be had from
Vilas & Hickey on request.
THE COMMERCIAL & FINANCIAL CHRONICLE
1798
(Del.)
Northern States Power
Securities
Peoples Light Gr Power
Specializing in
$3 Preferred
Sold
■—
Executed
Orders
Coast
Pacific
Quoted
—
Pacific Coast
RETAILERS
6% & 7% Preferreds
Bought
Thursday, October 26/ 1944
PUBLIC UTILITY
Paine, Webber, Jackson & Curtis
Schwabacher & Co.
BONDS & STOCKS
ESTABLISHED 1879
T
,jU
Members
.
.
New York Stock
New
York
Curb
Exchange
COrtlandt 7-4150
Private
Consolidated Natural Gas
Natural
Consolidated
r
(Oct 23rd closing) as
has
Gas
San
the apparent result of the accident
of its subsid¬
Teletype NY 1-928
to
Wire
Francisco
Monterey
SMITH, LANDERYOU & CO.
declined about 2 points to 29V2
Principal Offices
Barbara
Santa
—
Oakland
—
Trade
New York 5, N. Y.
14 Wall Street
Utility Securities
(Associate)
Exchange
Chicago Board of
Public
on
Exchanges
Sacramento
—
Fresno
EST. 1925
liquid-gas storage tanks exploded
in Cleveland.
Early reports named only 14 dead, but according to a
later news-ticker story, deaths as a result of the explosion and fire
may reach an estimated 200.
Fire devastated 10 city blocks, causing
an estimated damage of $7,000,000,
f—
1
—
which is apparently in addition to ratio of 1 to 600). However, since
the company's own loss of $4,000,- the gas has to be kept at a tem¬
00,0 (9 or 10 company buildings perature well under 200 degrees
below zero, this requires special
were destroyed in addition to the
equipment and several feet of
tanks).
iary last Friday, when two or three
Early AP reports indicated that
in the neighboring
testing laboratory of the Amer¬
ican Gas Association was the orig¬
explosion
an
inal
cause
this
was
of
the
but
holocaust,
Since eye¬
later denied.
witnesses of the disaster—includ¬
ing 75 company employees—were
for
Cleveland,
of
Celebrezze,
has
been
appointed, head of a Fact-Finding
Commission to study the struc¬
tural, chemical, metallurgical and
operational phases. An appropri¬
ation of $25,000- will be asked for
the probe.
Strangely enough, while many
small business enterprises iir the
district have doubtless been crip¬
pled
as
ability
a result of the fire, the
of East Ohio Gas Co. to
If
investigation
the
indi¬
negligence, East Ohio
well be subject to claims
for damages and Tor loss of life
amounting to millions of dollars,
any
Gas may
its own estimated loss of
$4,000,000. But the system as a
whole is very strong in cash. The
Consolidated report for 1943 did
not: include
a
parent company
balance sheet or figures for the
individual
subsidiaries, but the
Consolidated
balance
sheet
re¬
plus
of
cash
vealed
•
$31,000,000,
amount of net
over
and about the same
(in
addition to
cash assets held as a special
current'"assets
some
While
reserve).
supply normal or peak industrial
demands for gas remain
unim¬
paired. According to a company
that
representative, the real reservoirs
it is
understood
company,
under
The storage
tanks are a useful adjunct to the
business but held only the equiv¬
are
alent
ground.
:
of
240,000,000 cubic feet of
peak load require¬
for a single day might run
whereas
gas
ments
no
special insurance was car¬
Ohio, the parent
with its negligible longdebt and sound cash posi¬
ried
by
term
East
tion, should have no difficulty in
making
good
any
claims
and
particularly as their set¬
spread over a pe¬
losses,
tlement may be
riod
of years.
,
loss, esti¬
A picture of the company's three mated at $4,000,000, may be large¬
small
spherical
tanks
holding ly offset by system excess profits
A pro forma esti¬
liquid gas (together with two of tax savings.
the
large,
old-fashioned
tanks mated income statement for the
year
ended 1943 showed system
nearby) were pictured in a book¬
Federal income taxes of $7,475,000,
let sent to stockholders of Stand¬
to
The
343,000,000 cubic feet.
ard
Oil
Co.
(N. J.) Nov. 1, when
Consolidated
split off from
Standard Oil (the stock being dis¬
tributed to
1
on
a
Standard
l-for-10
resented
a
was
basis).
stockholders
They
novelty in the
rep¬
gas
in¬
dustry, and other large natural
gas companies have been contem¬
plating the use of this storage
ihethod, though it is believed that
East Ohio Gas is the only one to
have
adopted it thus far.
One
spherical tank — occupying per¬
haps one-fifteenth the cubic space
Says
company's
own
1944
figure
would be larger.
Loss
and
damage claims against the
company,
which might not be
fully determined and paid until
1945
or
later,
might well
be
chargeable against operations of
and
is
it
future
The
probable that the
years
for tax purposes.
accident will probably de¬
lay adoption of the use of liqui¬
fied
gas
containers by the in¬
dustry.
So far as the effects on
Consolidated Natural Gas
are con¬
earnings for 1944 should
used by an old-fashioned gas tank not be greatly affected due to the
with
atmospheric p r e s s u r e— tax factor, and the balance sheet
will hold about 40 times as much position appears so strong that the
gas, so that the new method is company should weather the dis¬
very economical of space (in the aster without serious difficulties.
cerned,
reaction
should meet support,
authoritatively • stated in Washington, on Oct. 24, that
of General, Charles de Gaulle as the
was
market
Current
the recognition of the regime
estimated
is, of course, difficult to es¬
timate the potential loss to Con¬
solidated as a result of the explo¬
It
cates
Director
Walter Whyte
1
;
level.
It
idated.
probably all killed, it will be ex¬
D.
,
Released To de Gaulle Government
on
by Hope Natural
Tomorrow's Markets
OMAHA 1, NEBRASKA
French Assets Frozen In United States To Be
de facto
ceedingly difficult to reconstruct
the catastrophe and determine the
causes.
However, the Municipal
Safety
years
carried
f
Tcletype---OM 298
System
a
Gas, another subsidiary of Consol¬
sion.
Frank
work
research
some
Bell
The tanks repre¬
cork insulation.
sented
210 FARNAM BUILDING
government of France, will give that regime access to
an
$1,000,000,000 of gold and dollar assets "frozen" in this
Indicating this in a special dispatch from Washington,
Oct. 24, the New York "Times" also had the following to say:
Access to the gold and liquids*
1
dollar assets of the old French study whether or not the French
Government and Bank of France have applied for access to these
will be. accorded through a gen-i assets..
be
145-146
Subsequent rally will
important to watch.^
litical
Po¬
apparently affect¬
news
ing price movement.
country/
eral license that is expected to be
issued
French
facto
!• Although
by the Treasury to the de
Government.
other
From
indicated
that
the
Belgian Central Bank's claim for
it
sources
in
announcements
have
Brussels
was
$228,294,233
against the Bank of
learned : that while France also France has been
settled, or is in
will now become
a
party to a the process of settlement, there is
master
Lend-Lease* Agreement still a lien
against the American„
those
like
Allies
which
to
other
our
controlled
French
for that
assets
parties, the situation of amount in the name of the Bel¬
vis-a-viz len$-lease
gian Bank arising out of a Su¬
aid will
not be changed^mate¬
preme Court decision in its favor.
rially sinc£ they have been re¬
:
In
addition, to
the
approxi¬
ceiving such aid under interim
mately $1,000,000,000 of French
arrangements.
Some cash trans¬
Government liquid assets frozen
actions, one of them involving
here, and the estimated $400,000,are
the. French
,
purchase
of
American
already
tives,
have
ranged.
Although there
material
Gaulle
to be'
the
to
there
|
getting early
liquid French assets
Control's
Fund
eign
"freeze"
French nationals
of
assets
this country,
is
It
want
ury's
of
the
are
involved
in
United
nationals
security
course,
claims
the
States.
as
it
was
too
she
early
would
to
be
meeting of the United Nations on
subject, which is expected to
during the winter.
be held
present intention is to re¬
tain the "freeze" on these assets
it is possible to
the maze of title
personal identities involved.
but
brought into the Big Four security
conversations before the general
the
untangle
in the Coun¬
projected international
organization
in
due
whether
know
The
until such time
*
of the
cil
Treas¬
frozen in
Thomas E.
Gov.
would take her place
not
outstanding against the assets
of French
before
Stoker For Post-War
and
<■
Standard
Stoker
Co.
common
stock
offers
attractive
post-war
Secretary of State Ed¬
possibilities,, according to a new
ward R. Stettininus, Jr., told his
memorandum issued by Otis &
news
conference today that the
Co., Terminal Tower, Cleveland,
question of releasing the French Ohio.
Copies of this memoran¬
funds was under study and that
dum may be had from the firm
Acting
it
could
be
considered
as
under
upon
markets.
recent
request.
there
reason,
For
one
hasn't
been
much volume in either direc¬
tion
to
any
unusual
Occasionally we
cause
comment.
have
or
so
But a daily sales
of approximately
days.
volume
750,000
million
a
seen
share
the
was
customary
thing.
ffi
;Jc
:};
Last
Monday volume' sud¬
denly increased.
To make
this
increase
significant, it
was
practically all on the
downside.
is of
What caused this
pure guesswork.
will tell you it is the
course
Some
Stettinius said that France
Mr.
Gaulle
would
"
/
step.
controls at this time since
questions of duress by Nazi
interests
now
de
the
relaxation
a
many
that
probably
Mar¬
Dewey; denounced the Adminis¬
tration for failing to
take that
estimated at around
stated
at
assets,
$300,-
Mr. Stettinius said, in answering
advanced
of
in
$400,000,000 in value, will not be
immediately thawed.
government
gold
French
•
about
be
to
questions at his news conference,
that plans for recognition of the
de Gaulle government were well
here, it is probable, according to
Treasury officials, that the For¬
the
of
tinique.
de
said
is
000,000
no
nationals'
French
of
000
ar¬
government
to the
access
seems
obstacles
locomo¬
been
By WALTER WHYTE
Volume has meant little in
apparent trend away
Dewey to Roosevelt.
Others will tell you still other
now
from
things.
But
at this
reasons
stage of the market picture
are
hardly important.
Re¬
sults, present and possible fu¬
ture ones, are what count.
*
*
In the
column has been
There
reaction.
about
secret
'
$
past two weeks this
calling for a
no
deep
was
Stocks
it.
had
bounced up
against offerings
and
backed
away.
Under
usual. conditions,
if issues
rally to previous high levels
and fail to penetrate, a - de¬
cline
occurs
not.
Every
often than
more
market
and then the
manages
to go
through
such
now
offerings and
territory.;
break out into clear
But
does
seldom
without
this
occur
accompanying
step-up in volume. We know
Illinois Power dividend
Portland Electric Power
Robbins &
Scranlon
arrears
preferred
ADVERTISING
All
Its
Branches
Myers preferred
Plans
Spring Brook Water Ser. pfd.
Prepared—Conference Invited
*
Guenther Law
Incorporated
131 Cedar Street
Direct
NEW YORK 6, N. Y.
Wire
to
Chicago
no
Chicago Philadelphia San Francisco
such volume increase
On
occurred.
on
sales
and
than
on
This,
too,
ing of Every Description.
the
contrary,
increased
it
was
the side of decline rather
Cutlery Repair¬
Sextoblade Razors
New York 6, N.Y.
Telephone COrtlanclt 7-5060
Boston
BROADWAY,
that
Headquarters For
Blades.
Albert Frank
29
SINCE 1889
when
In
Gilbert-J. Postley & Co.
Quality Cutlery
an
market
the
side
has
a
of rally.
good stock;
reason.
*
When
-1=
V
markets
show
ina¬
WECK CUTLERY, Inc.
138 Fulton St.
CO.
7-1176
45 Nassau St.
RE.
2-9192
bility
or
lack
of
desire
to
penetrate previous highs, the
(Continued
on page
1819)
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4328
160
1799
Seaboard Air Line Ry. Co
Arden Farms
New Securities—< When .Issued
.
Bought
—
Sold
—
Common & Preferred
Quoted
HEW YORK
Arbitrage Circular1
upon
f
Request
WAR FUND
SUTRO BROS. & CO.
120 BROADWAY, NEW YORK
5, N
Y.
61
Broadway
By JOHN T. CHIPPENDALE
bond
market
in
the
j
jR.
past
week
was
a
com«-
.
.
.,
cated
consider¬
buying interest in recent weeks, a large part of it being
of a long-term semi-investment nature. Rather belatedly investors
are beginning- to recognize the vast strides the management has made
in putting its financial house in order, the further progress to which
it'is definitely committed; and the favorable traffic and earnings
prospects of, the road for some<§
————
—/
' 1
time to
come.
its
VIn
initial
stages there
disappointment
over
some.;
was
the
.
through apd in the other,
1935, it carried 6,9% through. The '
latter year was distorted, how-'
ever,
by extraordinary mainte¬
nance charges applicable to opera¬
tions in other years.
It appears
safe to say that on the basis of
its past operating record the roadi
should be well able to support fitspresent debt even if no real boom
is coming in post-war years.
Aside
from
conservative
the
ratio of charges to
prices of the exempt issues seem to have pretty well discounted
have compromised the position of
other contemplated tax changes.
all Illinois Central security hold¬
ers to let the loan, with its oner¬
normal operat¬
ing results of the road, the com¬
pany is believed to face a further
period of war swollen traffic even
when the European phase of the
war is over.
The road is a prin¬
cipal north-south carrier,
with
lines extending from Chicago to
ous
the Gulf of Mexico;
.
.
.
.
/ Barring the complete elimination of corporation income taxes
.
or
meet the
the deletion of the normal tax exemption feature from these
obligations, neither of which is expected to take place, present
,
.
/
.
«
problem in view of the
heavy collateral pledged
Unduly
to
;^;vyYxK;5'-.-
Nevertheless, every time proposed revisions in taxes are talked
about, the partially exempt securities are subjected to price changes,
although recently these fluctuations have been rather narrow.
,
secure
Ernst&Co.
10.1%
.
-
Exchange
new
applying a single "net income" basis for taxation might management's financial policy, in
change in the tax treatment of partially exempt securi¬ that it was aimed first at elim¬
ties.
Also, Mr. Blough noted that no plan thus far Observed inating the RFC debt, which had
calls for the retention of the wartime excess profits tax in our to be paid at par, when a more
rapid reduction- in charges would
permanent peacetime tax structure. ...
have been possible through con¬
NO NEWS TO MARKET
centrating on the purchase in the
i
It was pointed out that there appears to be very little in the open market of bonds
selling at
remarks of the Treasury official that has not already been pretty substantial
discounts.
Actually,
well taken into consideration by present holders, as well as pros¬ the
program of the management
was
pective purchasers, of the partially exempt securities.
"
;
by far the soundest way to
.
""Listed New"York Stock
The securities of Illinois Central have been attracting
able
some
.
Telegraph Co.
Teletype—NY 1-310
Railroad Securities
that
mean
Bell
6% Stock $100 Par
paratively quiet affair, although the partially exempt issues agaip
ground on light .volume.
The recession in.the exempt oblir
gations followed the statement last Thursday by Roy BlOugh, Direc¬
tor of the Treasury Department Tax Research Division, that the
studies by the Treasury Department and Congressional tax groups
on post-war corporation taxation and simplification have developed
the possibility of applying a single corporation tax rate and a single
"net income" basis for taxation.
Tile Treasury spokesman indi¬
gave
New York 6
Telephone—DIgby 4-4933
"Our Reporter On Governments''
Government
York Stock Exchange
Member9 New
Telephone REctor 2-7340
The
*Gold& Stock
pflugfelder, bampton & rust
Members New York Stock Exchange
the RFC loans.
It would
collateral provisions, remain
Needs for
'
MEMBERS
New
York
Stock, Exchange and other
leading Security and Commodity Exeha.-
120
231
Broadway, New York 5, N. Y,
So.
LaSalle
St., Chicago 4, 111.
Morgan Stanley Offers
$100,000,000 Amor.
Tobacco Co. Bonds
A nation-wide group of 148 in¬
vesting banking firms, headed by
Morgan Stanley & Co., is offering
publicly today $100,000,000 Amer¬
-•
ican Tobacco Co. 25-year 3%
de¬
bentures at 101% and accrued in¬
terest.
This is a 2.94% yield to
a
outstanding.
Nevertheless,
the stepped up war in the Pacific can
Accumulative sinking
reported that the market undertone, for these issues is showing stress placed in clearing up the not be met entirely by the facil¬ maturity.
RFC obligation did tend for a time ities of the transcontinental car¬ 'fund, commencing in 1945, is cal¬
strength, and it was stated that during the early part oil
this week practically all of the securities that were in for sale last to obscure the really outstanding riers or the port facilities of the culated to retire the full amount
week had been placed by dealers and taken out of the market. . . , progress that was being made in West Coast. A substantial propor^ of the issue by maturity, so that
It is evident that many institutions are looking for an opportunity the overall reduction in outstand¬ tion of the war goods going to the the average life of the issue will
Pacific theater will unquestionably be about 15
ing debt and charges.
'
to pick up the partially tax-exempt issues at attractive prices, and
years.
Other prin¬
via
the
Panama
Canal cipal underwriters are: •
Complete details as to bond move
it is during these periods of price irregularities, such as took place
Smith,
purchases by the company so far through" Gulf ports. On this basis Barney & Co.; The First Boston
last week, that they are able to get them. .
i
in 1944 are not available but it is Illinois Central should continue to
;
* Reports are prevalent that certain institutions are waiting
Corp.; Mellon Securities Corp.:
evident that since the beginning operate at capacity. Under such, Harriman
for the Sixth War Loan to comev along, with the idea in mind
Ripley & Co.,, Inc.;
of the war boom the company has conditions it should be able to conr.
that if there is selling in the partially, exempts, and they arc
Blyth* & Co., Iriciy Kidder, Peareduced its'; non-equipment debt tinue earning between $16,000,000depressed in price, they may be able to' get these issues at real
body & Co.; Lehman Brothers;
by between. 21% and 25%. There and $18,000,000 net after charges
bargain levels.
V ;■./,
Goldman, Saqhs & Co.; Union
'V.
are very few Of the solvent roads
arid taxes. It should require only,
Securities Corp.; F. S. Moseley &
IJARLY "CALLS" DEPRESSED
that have been able to retire a another $30,000,000 or $35,000,000.
Co.; Lazard
.
.
.
It is
considerable
-
.
.
Selling during the past week took place in the shorter term
partially exempt securities with some of the sharpest declines being
registered in the issues that are callable in 1946. . . . These securities
that become callable in 1946 all have high coupons and, irrespective
of
tax
conditions, there is no doubt but that they will be retired
at the call date, the
Accordingly, it
was
that there will
sire
longest of which runs only to June 15, 1946,
pointed out again, that there are good possibilities
be
not
any
piajor tax changes before these bonds
and institutions that desire short-term tax-exemption
find these issues attractive for such purposes at presently pre¬
retired,
may
vailing prices.
.
.
.
Secretary of the Treasury Henry Morgenthau last Sunday an¬
nounced the details^of the marketable issues that are to be offered
in the Sixth War1 Loan Drive as well as the conditions under which
and
the
2%
banks can
bonds
due
purchase
1952/54.
.
>
.
the 2*/2% bonds due 1966/71
With reference to the 2f4%
2%. bonds, .the Treasury indicated that commercial banks may
purchase these issues directly during the drive to the extent of
10% of their savings accounts, or $500,000, whichever is the smaller
amount.
During the Fifth War Loan, commercial banks were
allowed to.purchase the 2%% and 2% bonds in an amount equal
to 20% Of savings accounts, or $400,000, whichever was less. . . . .
.
i
The terms offered the commercial banks for participation directly
and
...
drive, with respect to their sayings deposits, is a
change from that -given them in the previous drive, although at this
time certain points have not been fully clarified. . . .
.
->
One of the questions is whether subscriptions for the 2! 2% f
and 2% bonds up to 10% of savings accounts, or $500,000, which- v
ever is less, is cumulative as it was in the Fifth War Loan; and
;
in
the
coming
r
reducing debt it
In the process
announced
was
Freres & Co.; Lee
to reach the
Higginson Corp.; Drexel & Co.;
goal of $10,000,000 Stone &
Webster and Blodget,
annual fixed charges. Illinois Cen¬
Inc.; and White, Weld & Co. * In
tral apparently; will not be too
of
debt
retirement
management
-
by the management that by the
middle of last May fixed charges
had been cut to around $12,000,000.
-addition
long in joining that group of car¬
riers which will emerge from the
war
boom no longer Stigmatized
as'"marginal."
There is little question but that a
further reduction has been
accoip*
plished in the interim since May,
perhaps by now to as low as an
the
over
148
The proceeds of
bentures will give
•
capital
purchase
of
ment, before consideration will be
given to dividends on the stocks,
is $10,000,000. This is well within
the
de¬
new
the company
to finance the
ventories of leaf
$11,500,000.
Blair Bo. Vice-Pres*
Blair &
the realm of possibility before the
company's participation in the war
boom
is;ended.
Even
if
no
;
further debt retire¬
would
well
appear
able
to
support its charges under normal
business cycles. Charges of $11,600,000 would absorb only 10,3%
of average gross in the
period,, which period
1936-1940
appears as a
conservative post-war expectancy.
In only two years of the
depres¬
sion decade did the road fail to
carry
.more
than
14 %
of
gross
through to net operating income
before. Federal
income
In
taxes.
of those years, 1931, it carried
ican
projected larger in¬
tobacco.
Amer¬
Tobacco
has
more
than,
its sale of cigarettes for
doubled
Co., Inc., 44 Wall Street, domestic consumption during the
City, announces that last five years.
This compares
York
New
ment were to be accomplished the
road
Enos Curtin has joined the or¬
ganization and has been elected a
Vice-President
'
tion.
Mr,
of
the
corpora¬
.'/•;/
Curtin
has
with
a 57%
increase in cigarette
consumption in the United States
hi
the
same
period.
just
been
re¬
exceed
the sales of all
leased
from active duty, having
'cigarettes by
completed two and one-half ..years
competitor.
of service with the Army of the
United
the
We wish
to
Sales
Lucky Strike cigarettes alone
any
one
of
now
brands
of
American
States, in which he held
of Lieutenant-Colonel.
rank
During this period he had two
years of staff duty in Eugland,
Africa and Italy.
Prior to his Army service,
Lackawanna
Mr.
Curtin-was associated with Hemp-
R. R
hill, Noyes & Co.
of New
IMclaughlin, baird & reuss
Members New
underwriters
selling group: of
400 investment houses.
a
Working
annual level of around
one
(Continued on page 1824)
to
there will be
The ultimate goal of the manage¬
..
SIXTH LOAN DETAILS
the commercial
similar proportion.
of
Jersey
purchase, ALL
York Stock Exchange
STOCK
SEABOARD AIR LINE
BOND BROKERAGE
Specializing
in
ONE WALL STREET
SERVICE
Underlying Bonds & Certificates
Railroad Securities
NEW YORK 5
1. h. rothchild &
Members National Association
TEL.
HANOVER
2-1355
TELETYPE
NY
1-1310
,
of Securities Dealers, Inc',
Adams & Peck
specialists in rails
co.
52
wall
street
HAnover 2-9072
n.y.c.5
tele. NY 1-1293
63 Wall
Street, New York 5
BOwllng Green 9-8120
Boston"
/
Philadelphia
Tele. NY 1-724
Hartford
FINANCIAL CHRONICLE
THE COMMERCIAL &
1800
Thursday, October 26, 1944
SPECIALISTS
GOODALL WORSTED
SANFORD MILLS
SITUATIONS
in
CONSOLIDATED TEXTILE
Our
MARKETS IN
✓TRADING
Real Estate Securities
will
Statistical;
and
prepare
report
REAL ESTATE
AY
Y
Since
1929
issues
See
SECURITIES
on
on
in
which
the
of
any
we
column
our
page
Department
send, you
NASHAWENA MILLS
a?
250
trade.
ALABAMA MILLS*
'
MERRIMAC MILLS
advertisement
/
1796;
120 Broadway, New York
$eligmany Lubetkin & Co^i
SHASKAN & CO.
;
Members New York Curb
Exchange
Members
Dlgby 4-4950
PL.,N.Y.
40 EXCHANGE
1-953
Bell Teletype NY
Incorporated
Y'Y;
Members New York Stock Exchange
•
•
.
Tele. NY 1-1288 & 1-2173
,
■
V
Established
.
1926
Members New
J:.;'/;,,;YY'Y. Y;
HAnorer 2-2100
Broad Street, New York 4
41
•
..
,
Dealers Association
York Security
New
4 Phone:- REctor 2-8700
&
York Security
Direct 'Phone to Philadelphia
Enterprise 'Phones
Hartford
6111—Buffalo
Dealers Association
A-AYY;YY.Y... ;;:Y;Y ,',Y..
6024—Boston
2100
,
Real Estate Securities ! ISi
I
OUR
REPORTER'S
h
WEST
By JOHN
And The 5% Rule
The Future Of Real Estate Bonds
Current prices of real estate bonds, compared with prices two AyXYv?/- Y* (Continued from page 1,795-) YY' ^,;'Y Y%Y;' %YY AY.
bankers' or underwriters' compensation was 16.1%.
For
years ago, are so much higher that investors may very well hesitate
and wonder if perhaps the peak had been reached.
•:
;l;YY j concerns having assets of $1,000,000 or less, the underwrit¬
These are times of feast or- fam¬
The writer definitely, feels that despite the increased prices,
ine for the underwriting bankers.
ing cost or Y distributors' compensation was 19.7% of
circumstances are such that even at current levels real estate bonds
REPORT
«
the feast is getting
And just now
be
to
'
bit
little
a
will
of
handle
YAJY
Y
'At the moment there are some
come
a
<•
r
the
been
which
offerings
v
.
the- last
in
out
brought
-
night.
Y:
various
apartment houses. Even with¬
increases,
100%
occupancy
has substantially improved earn¬
ings of this type of real estate.
Pre-war, it was not uncommon
resting spell still looks to be a
fortnight away for the calendar
is
still
with
bulging
for
business
of
advance
Sixth
the
many
hotels to operate on a
40% vacancy basis and apartment
which is scheduled to go through
in
no
out
market's
circles,0 the
is
and
'
whatever the feeling in
But,
•;
ceilings,
OPA
for
not
question but that for
the
same
reason
higher rentals
would also be obtainable in hotel
fort-;
v-
it
Were
the' supply.
than
greater
there
of new
have
been
flow
heavy
has
because the demand for space
would
A profit if the market were given
a
bit more opportunity to ab¬
sorb
the
a
proceedsf of
3.4%
the? flotation.
This
with
compares
cost on similar issues of companies pos¬
sessing assets above -$100,000,000, as reportedvby the SEC
average
1
*
'
them who would welbreathing spell, feeling
that the general situation
post-war real
continue to do well.
'
among
.
estate should eluded that this threat is not as
;Y YY: ; \ great as may appear on the sincy in 1941.
-' v
*•' "
Sharp increases in commercial i'ace.
;A/YYY;YA%Y"'a.; '•>
The SEC makes no comments
building rents has been possible
The expert opinion was that
that
:
readily.
reasonably priced and that there should still be the possienhancement.
He feels
; .
;
:
YYY.. -;
%
still
are
than the
more
digestion
industry's
houses
War
on
15%
a
basis.
vacancy
ity distribution costs
as
to whether these
secur¬
justified, or whether the bankers
margins for themselves or
higher than costs ' pfe-war;
(2) made unreasonable profits.;, There is no mention of a pre¬
that because of new zoning laws,
conceived standard compensation or a maximum spread.
set-backs required would be such
that new; buildings would have to
Perhaps it will be eventually recognized that this is not
have much greater ground area a matter of
policy or the application of a theory.
Gross
in order to have as much space to
profit margins are not stable or predetermined.
They are
lease
as
present buildings now
have.
The increased
construc¬ bound to vary with the times and the prevailing conditions.
tion costs, plus the cost of addi¬ They are determined in the minds of dealers on the basis of
tional land, would mean that the
experience, foresight, and risk. Each individual transaction
new
buildings would have diffi¬
is a case unto itself.
>' j •
(1)
new
construction
building
would
costs
30%
least
at
be
or
dealers
demanded
are
excessive
culty in competing with the rents
of
Add to this
debt of this
Undoubtedly small business, in competition with large
undertakings, undergoes disadvantages and handicaps in
construction, compared to
struction.
Plans
have
already
Ordinarily the investment bank¬
the reduced debt of present build¬ obtaining capital through the regular channels of invest¬
been filed for many new build¬
ment.
ing firms would undoubtedly welThey must pay to overcome these disadvantages. It
ings.
In order to ascertain the ings with bond issues, and you
come even a greater flow of busi¬
threat of this new construction to indeed have a rosy future for is the dealers in local and inactive securities that perform
ness.
But for months now they
o
Y: the
existing buildings, the writer has real estate bond issues.
important service for them in the flotation and market¬
have been feeling the effects of
discussed
this
situation
with
A couple of striking examples
the manpower shortage quite as
ing of their securities and, notwithstanding the higher
of older buildings being able to
prominent builders.
From these
much as other lines.
discussions the writer- has ;con- compete./with
newer
buildings charges imposed for these services, they are, in many cases,
And the enormous volume of
are:
li ■%%-;' A; A' indispensable in the process of obtaining capital from the
new financing which has been go¬
Drive for the Treasury, the un¬
61 Broadway—just1 reorganized
public and in giving small business access to the capital mar¬
ing through has been taxing the
derwriters are to have at least
with bond issue reduced to $3,- kets.
In this way, security dealers and bankers have bene¬
abbreviated working staffs phy¬
another busy day, judging by
961.000, selling at a 30% discount, fited small business concerns that desire to
sically, sipce the actual sale con¬
grow and to
the -calendar.
For on Nov. 13
including stock representing an
stitutes but a minor part of the
maintain their individual status, despite the seemingly high
two large public utility issues
equal share in 971-2% of the own¬
Loan
which
Drive,
opens
might
space
be
cleared up post-war by new con¬
20.
November
of
lack
This
on
present buildings.
the
high
funded
newer
;
.
work involved.
V
V
scheduled
are
The
a
labor
real
comes
before
bids
deal is secured and then again
closed and
the
plans..'
amount of
vast
ering
the
securities
is
321 Millions Still Ahead
Including
the
American
its pro¬
jected refinancing involving $48,000,000 in new securities.
\
Nov.
13
,
cumulative
next.
Metropolitan
Edison
$1,400,000
Co.,
also
Gas
fers
of
at
On
are
slated to offer pub¬
the
licly
total
of
same
day
$44,400,000
stock
shares of
On
and
bids
104
200,000;
due
on
ment.
But in between that time and
the start of the Sixth War Loan
Priced
offer
an
Y'
v
'-'Y; YY
Y Y;
balance will be added to
working capital and applied to re¬
of
tobacco
inven-
U.
Bonds
are
property.
At
current market of bonds, a value
of only $3,614,000 is placed for
this property, compared to orig¬
inal funded debt of $10,878,103.
ownership
the
of
small
security issues.
The investment of "risk capital"
be largely eliminated, and private initiative, repre¬
sented in this country in the main by the organization and
would
Pioneering is not usually conducted on a large scale with
heavy capital outlays. Individual enterprise has been and
still is the mainspring of America's business expansion.
But
the cost of obtaining risk capital in new and small scale
business ventures must necessarily be higher than, in the
Wachob Bender Has Y(
of large scale, well financed and proven profit-making
enterprises. It is, not only, reasonable, but axiomatic, there¬
fore, that underwriters, dealers and others who assume a
Thirtieth Anniversary
purposes
f
part of the risk in obtaining venture
capital for productive
should demand and receive a greater gross margin
OMAHA, NEB.—Wachob-Bend- of compensation than when they underwrite, L>uy or sell
er Corporation, investment bank¬
large issues of seasoned and well distributed securities.
212 South 17th Street, is this
ers,
celebrating
year
the
30th
firm
has
issued
a
Accordingly,
anni¬
of its formation. In con¬
nection with the anniversary, the
versary
most attractive
publicists
to
Post-War Prospects
trend.
Price,
Yesterday a large block of 50,000
shares of U. S. Potash Co. common
Building,
owned by Borax Consoli¬
dated, Ltd., was offered publicly.
Stock
Nachman Corporation offers
of
the
Continental
Chicago,
New
York
any
fixing of
a
maximum
gross
profit
mar¬
gin is illogical and indefensible. It would be highly destruc¬
tive to our free enterprise system, which the Administration's
and spokesmen in
their utterances "so highly
they seem to seek
cherish," but which, to an unusual degree,
interesting post-war prospects,
according to a memorandum on
the situation prepared by Hicks &
beneficial owner.
profit limitation rule on all security trans¬
virtually destroy the open market for
case
S. Potash Sale
Accordingly the deal did not in¬
volve new financing and the pro¬
ceeds went to the corporation as
a
actions would be to
cur¬
gradual transfer of closelyheld securities to public owner¬
ship goes along what with heavy
taxatiorl among other things, mak¬
ing for and perhaps speeding the
stock,
margins they may charge for their services.
To enforce
7th
Hotel—(870
4V2s).
mortgage, $1,100,000. Bonds carry
stock representing two-thirds the
The
;
gross
operation of small individual enterprises, would be practi¬
cally stifled. It should not be forgotten that the investment
rently selling at a discount of of venture capital originates mainly with small scale under¬
38%. Bond issue, $4,055,000; prior takings.
Y.
Central
Park
Avenue
illustrated brochure.
tnrip«;
the
ing spell which some of its mem¬
bers would appreciate at the mo¬
debentures
the
plenishment
Short Breathing Spell Due
banking fraternity
will probably get the brief breath-
recently.
applied by the
company to liquidation of shortterm loans arranged with banks,
$13,000,000 of bonds of the Cali¬
fornia
&
Oregon Railroad and
Navigation Co., and also for $16,981,000 bonds of Potomac Edison
Co. and, on Wednesday, Nov. 1,
the Chicago, Eurlington & Quincy
Railroad will open bids for $40,000,000 of new mortgage bonds.
Then
handled
and the
are
most
have
which
Proceeds will be
common.
Tuesday
respect from
issues
that
new
2.87%.
Co., plus 150,000 shares of
preferred
$2,772,700, compared with an ap¬
praisal of the property of $16,079,736 in 1925 and funded debt
in that year of $12,500,000.
(The
property actually sold in 1925 for
$14,000,000.)
:
"
■Y>.%;
and naturally dif-
indicated current yield of around
of
bonds and serial notes of Koppers
in
the
been
preferred.
a
Co.
Tobacco
undertaking
■<
bonds and 600,000 shares of new
bankers
expecting
ership of the property. This places
a
value on the property of only
This represents a new money
.of',
stock
Mobile
of
American
mortgage
of
shares
preferred
,
good
response to today's public offering
of $100,000,000 of 25-year 3% de¬
bentures
being offered for the
Bankers were
Next Monday bids are due for
$37,000,000
of
first
bonds, and
125,000
to open bids on
American Tobacco 3s
$322,000,000 of new securities re¬
maining to be marketed between
and
$30,000,000
new
is slated
To¬
bacco Co.'s $100,000,000 of 3% de¬
bentures, due out today, there is
a
prospective aggregate of some
a
bidding,
mortgage bonds. And the
Central New York Power Corp.
of
for
date, the Houston Light
Co. will market, via
competitive
taken,
now
J
Power
&
under¬
present
.
On that
clerical work involved in deliv¬
for
up
come
upset
to
meanwhile
after the subscription books are
to
something happens
unless
Illinois
in-
Bank
111.,
members
and Chicago
destroy by their actions.
THE
SEC
SHOULD
TAKE THE CUE—IT
END TIIE THREAT OF THE
NY Bank Stocks
Compared
Laird, Bissell &
Meeds, 120
Broadway, New York City, mem¬
bers of the New York Stock Ex¬
SHOULD
5% RULE.
Interesting Air Situations
Mid-Continent Airlines and Na¬
tional
Airlines
offer
attractive
possibilities, according to circulars
change, have prepared a detailed iust issued by J. F. Reilly & Co.,
memorandum and additional in¬
comparison and analysis of New Ill Broadway, New York City.
formation on Nachman may be
York City Bank Stocks as of Sept. Copies
of the<=e interesting re¬
had from Hicks & Price upon re¬
30, 1944, copies of which may be leases may be had from the firm
had from the firm upon request. upon request.
quest.
Exchange.
Copies of
this
Volume
•.THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4328
160
1801
advertisement
i»...
The Branch Banking Controversy
won't be
This is number
detailed and
personal knowledge
capacity, re¬
10-ten million more jobs than in sources, skills, and aspirations of
1940, or 53 to 56 million employed every patron. It is not bound by
inflexible rules, formulas and reg-.
persons in the United States. This
no'n-profit, non-polit cal, indep'en-/ ulations of a dictatorial parental
enough;
goal of the C. E. D. is from
war
The
•
the
of
seven
authority,
financed entirely
even
of
by contributions'
limited size, from, individual
has more than 2,000
a
bank is an
object .of community. pride.. Its
own
success
depends upon the
commit¬
community
tees'dedicated to the task of stim¬
community
serve.
the many problems that are bound
The
arise.
with
dealing
post-war
as a
approximately 2,000,000
United
States,
only 3,200 employ more
than 1.000 workers, and only 35,000 employ between 100 and 999
sentee"
business employers in the
The
each.
the
balance
or
employ
business—with
100
—' accounts
workers
for
employment.
Hence,
be
must
roots movement."
Tens—even
sands—of
and
our
hundreds
our
and
men
industries
in
women
the
own
after
war
the
of
soldiers
to
want
in
they
home
return
Mgin
Certainly
Street.
branch
littlebusiness i should
of
be
a
perhaps
major post-war phenomenon. The
opportunity for the little business
man to serve his community after
need
great
a
services
for
unavailable
during
He
■.
Just
/■
as
pioneers
small
on
a
•
appreciate the true
They do
applicant for funds.
for
awav
not large
are
"we'll be safe
little harm will result if
Instead*
had better keep our
we
funds loaned to industries
thesq
pio¬
will
men
be
frontier
new
parent
these business
the
in
We
organizations
ally unknown to
their
..
community in
know
problems.
If
them
they
i
Now
the
to deny
branch
such
an
hasten
banks
allegation.
point out that often
a
They
local ad¬
visory committee is appointed to
and
are
:7;; '.''"7:'-"7 7.
that type of
assist the manager of
to
the branch
bank in
permanent 'basis
their financing must come from
the "grass roots" up, rather than
from some government bank or
recommending the action
to be made by the parent bank on
applications for funds.
But that
through a branch bank
of a parent institution located in
some distant, large financial cen¬
ter. "Absentee banking" can never
meet the needs of post-war small
tangible feeling of pride, the capi¬
talization of skills and character,
succeed
on
a
intimate, personal contact, that in¬
agency, or
business.
are
absent.
is gone!
The
The heart of banking
7/ ,/7/r
.7. :7.".
/
' 7
branch banker denies that
.'7 V." .7 '
v~7>"y '7 industries will be centralized in
One authority has pointed out
regions near the parent banks. At
that the principle of branch bank¬ the same time he
points to the
ing js "out of harmony with the Canadian system of branch bankr
traditional American principle of
local autonomy under which our
ing
dent
It
was
unit» bank
marched
westward with the
pioneer fron¬
tiersmen, hand in hand, as they
opened and develoned our
try to the Pacific Coast.
the
independent
financed
the
unit
hundred*
.
It was
that
of
thou¬
»
American community,
thereby developing the skills and
resources of our people.
- .•
every
a
bank is controlled by a
local board of directors who have
his
.
•
-
Sorh
all
/".
according to the Canada
Year Book for 1933, page 408,
we find that 72% of the number
coun¬
sands of businesses on Main Street
in
for
out that
bank
of
justification
a
Speaking in New York
City before the Society for Sta¬
bility. in Money and Banking on
Dec. 18, 1936, the author pointed
the indepen¬
that
as
claims.
vast national resources have been
developed."
the
business
Canada
establishments
located
in
in
Quebec
and Ontario—the two provinces
in which the parent banks are
located.
.
are
79.5%
of
the
caoital
in
over
those countries with that
Here
in
have almost 15,-
we
which
there
means
between
half-
a
believe is
those who
better
to
Hence if
small
business
man
these
are
ential
America's
on
in
terested
the Canadian experi¬
anything, it is that the
vitally in¬
are
help the
for the
ning
banks.
would be
independent unit bank for the fi¬
to
banks
nancial assistance he needs. /Nor
But
will he be
trated into
gether
banking systems, and who
doubt
community to the-end that it will
be
the
to
Government but business
vitally
interested
Sub-contracting has
during this
own
continued
sands
Its
is
Advocates
point to, its
into its
in
tages
over
bank.
For
of
the
one
that it would
In
an
banking
alleged advan¬
independent unit
thing they contend
line with the
address before the
Southern
1944,
California, Jan. 27,
William
J.
Bryan, Vice-
President
of
the
it
Perhaps
they
Third
National
take
them
them from failure
at the demand of
that
felt
outragec
itself
being
an
Government *. bureaucrats
us, we
only two things to destroy
banks and
our
it
our
rail¬
After that they could take
and every other industry
any
free
Only the shadow oenterprise would remain. Ef¬
forts
into
to
a
consolidate the
railroads
limted number of systems
failed,
owing
to
,
inherent
the
weaknesses of the arguments pre¬
sented. Advocates of Government
ownership
of the railroads have
dwindled to
face
of
the magnificent perform¬
of
ance
handful in the
a mere
present
railroads
our
during the
in
m
ov
,
the future
better that
been
fighting for
happiness
after
the,
and. future
they have marched in the
7/':/:vv':7 ?7'v MARK MERIT
J of Schenley Distillers Corp.
FREE- Send a, postcard or letter to
Schenley Distillers Corp,, 350 Fifth Ave,,
1, N. Y, and you will receive
a booklet containing
reprints of earlier
N. Y.
articles
on
various subjects in this series.
branch
banker
views
the
This
munity has
of its
ignores the fact that
a given com¬
financial resources
no
and that the community
own
served
is
the
thousands of bank failures in the
so
United
parental
organization
many miles away;
1920
States
the
in
since
ness
as
proof
be
can
of
a
our
fundamental
only by the
overcome
of
elimination
and
resources
years
the
its
independent
relatively small
alleged ineffi¬
and its almost
Branch
and
country
branches
in
convenient
huge cartels which
monopolize the principal indus¬
of
dress in New York
banking
over
tries,
Federal
Reserve
Since
the
cartels
were
the few banks in
of
would
give
branch
at least the area of
a
does
not
communities
to
son
banking
bank
now
believe
can
pense,
undisputed control of its
industry and business.
Branch
the fact
banking
face
does not
the
In
likewise
Mussolini's
tatorial
powers
can
overlook
our
we
friends
made
assumption
in
in
easier
of
Italy.
dic¬
Nor
the plight of
England
and
independent unit banks
superior banking service un¬
attended
by the dangers which
strength
oarent bank and
of the
banking in those countries has
experience
resources
of its
the
of
per-
a
at
experience
that branch
au¬
rea¬
branch
less
ex¬
verifies
banks
are
justify their existence.
Canada
1929, it
the
the
to
training and
managing
that
operate
but
branches
public because of the
of the
In the ad¬
City, the
likely to be closed if the return
the small unit bank, due to
following reasons:
(1) Greater safety would be in¬
sured to the
independent
an
"Not only is there little
a
Germany
to gain
locations
thor stated:
served by
over
pay
unit bank to function.
district.
It is argued that branch
owned
or
controlled
by
the
banks! Hitler had only to take
system
would
where, perhaps, at the present
time, according to the argument,
therefor
a
a
banking facilities of
by
opening
up
mation
of
of
probably
banking
it
few
mercy
accessible the banking
more
resources
this
at
complete
dependency
on
local
conditions, and the substitution
a
security —
victory parades.
branch banks has led to the for¬
into
of
measure
the branch bank in
cient management
of
fair
sonnel.
inevitable step toward a collectivist economy. •;:-,,:
■;
an
are rarely content with
monopolizing their own field
resources
a
than to help
us,
a
be
and
concentration
do to repay
can
to those who have
But the advocates o'
war.
unit bank, with its
bankers
we
owe
provide for them
(2)
Branch
¬
7/
we
make
banking has
accounting depart
versa.
debt
It is his contention that this weak¬
predominant.
salesman,
a
We don't think there is anything
need only to turn to
coun¬
the
vice
branch banking continue to ignore
the fact that such a system would
The
the
been
Anyway, we're
going to be reasonably sure about
banking system.
banking
weren't always
placing them in the
have
to
better
weakness in
the
to
came
ment
prise, as we know it in this
country, cannot exist without an
independent banking system, we
become
'miscast/'
beginning, when
right niche Maybe John Doe ought
need
at their will.
Nashville, stated:
"For evidence that free enter¬
tries where branch
the
in
too careful, in
would
.
Bank of
•
—
save
over
,
Independent Bankers Association
of
us
never
roads.
of
of all the important
countries of the world, including
France, Germany, England and
Canada.
where they, won't be
a
system of free private enterprise
inseparably
branch
be in
k and. most effi
Perhaps he would have done much
—nationalize
thou¬
: ./^/7/77' ::7",'
many
■
over,
do
interlinked with independent unit
banking. 77-.'':
wor
organ*
be hap¬
cient for themselves and for
can
just
crushed by the money trust."
It will be
V-Day
success
until
various
they can
to
or
f
are
of ways never dreamed
before?
time
our
concen¬
be
would
going to be
are
Gov¬
public
merits.
come
war.
after
men
its
in
of
We
either to
/
;
stability of
Not only the
American business.
it
-
ernment
better
77'/-
much
become
win
careful in finding the right
piest in" their
few giant branch-
a
women
become necessary for the
i
higher
Decentralization of business will
mean
them
that
matter
making its maximum contribu¬
tion to' full "employment, a
standard
of
living — a
America.."
let
and
temporarily
us
properly to civilian pursuits when,
za lions—where
these
gomg
adjust themselves
war, to
jobs for them in
all
are
important job of
more
this
Since
rather difficult task
a
nationalize
We
men—yes,
too—rwho have left
the most influ¬
our
among
people in the country, it
Main Street must look to his local
disappointed! For to¬
they
can
develop each
of¬
frequently—for
worse,
everything humanly possible
very
ence means
-
is
for
or
they return.
-
bank
Wac
participate in it, This
stockholders who
at present."
as
million
forward step.
a
"something"
ficers, employees, directors and
a
have set up
we
unquestionably does something to
million
and
it,
see
we
III doing so, we are taking what,
we
to do
Canada, for the concentration of
wages
concern
contrast the situation
us
and businesses in Canada. 80.8%
employees, 80% of
a
possibility.
"Let
thou¬
banking policy for the serviceman
experience
after V-Day. ':/7/7;:/7:'
7:> ' /'
they are going to
need
the
understanding,
assis¬
tance,
and
full
cooperation
of
who
indi¬
have
would
we
of
after
year
a,
as
very
try
person¬
in small, dis¬
It just isn't
us
communities.
tant
country
bankers
a
afford
cannot
character loans to
make
to
viduals and
able to plan the future with con¬
every
know
We have
men.
them.
of
one
healthy and dynamic system of
In
the
detailed financial analysis of each
with their livelihood, but
fidence.
near
We
organization.
good business."
free competitive economy.
The small business men must be '•>! Not much hope in
our
to
them
deny him the funds he seeks.
we
they will furnish the seed-bed for
a
miles away, for au¬
How can such a
Furthermore; since his de¬
and very
post-war business world. Not only
should ' they provide millions of
persons
far
too
mands
7v
former day,
a
business
neers
vV:vV.;,;
"absentee"
an
were
our
in
-
forefathers
is
tion.
purchasing
power
are
in
the
possession of persons along the
entire length of America's Main
Street with which to satisfy those
needs.
warm,
But,
lot of "humanic?" ji>.
a
located in all parts of this coun¬
in
his home
a
are
sands of factories and businesses
capi¬
give him much serious considera¬
and that billions of dollars of
war
men
this
official
probably
merits of the situation?
not know the
and
the
goods
of
group
V-day lies in the fact that there
is-
many
thority to act.
pressed
banks,
that
head
Canadian bank just recently ex¬
are
non-resident board of directors,
a
The
banks.
000
parental institution has to look to
The development and expansion
national
(exclusive of
are
maximum advan¬
of
bank
the
of
Canada it is difficult to believe
sympathetic welcome at his home
bank.
On the other hand, the
high
a
On¬
undeveloped natural resources)
7
'
tage, will always receive
percentage of them hope for such
an opportunity.
the
of
con¬
ours.
industry seeking to
a
63.24%
there is public
agitation for the nationalization
banking comparable to that in
V-Day.
community to
America's
to
V
- r r r
gone so far that
estab¬
order that he may serve
into business for themselves when
products are
Quebec and
in
the
of
also in these two provinces.
"If we had a system of branch
talize his newly acquired skill
go
'
,
" j
they hope to
businesses
a war
80%
•
wealth of Canada
A young serviceman or a worker
are
—
tario.
Certainly it will be
seek the funds necessary to
lish
salaries,! and
centrated
may
will have to offer when they
service
learning
new
skills. A reported survey recently
made by an Army Colonel of the
men in his regiment revealed that.
34%
gross value of
the most important security that
tens of thousands of our service¬
thou¬
of
in the
men
Phone LD-159
•
•:
;
;
men
;
t
we,
businesses,
interesting self imposed
rules and. regulations about que
conduct towards those yvho assist
us in conducting our business,
some
his branch
a
employ them, for
there
f*.-nr -r ir rfiir iif ^if
and
have to offer.
the
Home Office Atlanta
.
v
•
:
make
cannot
the only asset a young man
"grass¬
a
'
loan, although character is often
C. E. D. has pointed out, post-war
employment
Private Wires
:i
their
will, provide them with re employ •
Of course, we are obligated
to
BONDS, STOCKS, COMMODITIES
When
ment,
this business. So
BROKERS OF
in¬
an
American
their return.
INVESTMENT SECURITIES
and
character
bank
ap¬
as
follow
become
never
can
rigid
natural consequence,
a
proximately 45% of the total busi¬
ness
OTHER LEADING EXCHANGES
UNDERWRITERS AND DISTRIBUTORS OF
herent part of the community in
the manner of the unit bank.
As
than
less
often
•
war.
resume
peacetime activities,
other
like
BANKERS
MEMBERS NEW YORK STOCK EXCHANGE AND
He has little
institution.
orders,
bank
less
plants. Business in this country is
still primarily little business.
Small
INVESTMENT
back to
come
normal
a
in¬
flexible, of his absent superiors.
It is.but logical that his branch
100 persons in each of their
than
is
one
discretion but must
no
the
(which is al¬
2,000,000!)
The
banking.
they
and
organization, owned and con¬
trolled by the people in the com¬
munity. The other is managed by
an agent or employee of an "ab¬
•Of the
most
unit
between
about fifteen hundred
employees have gone to
fundamental
the
our company, Schenley Dis¬
Corporation, and its several
affiliates,
privileged/ to
is
is
From
tillers
in the
men
local
em¬
ployment in each community
local problem.
it
.
Here
branch
E. D. is proof of the need
the C.
for
,
difference
of
decentralization
of the business
success
ulating and assisting business men
on America's Main Street to solve
to
series.
a
Come Marching Home!
of miles awayv
tnousands
fifty-nine of
When Johnny and Jane
hundreds ' 01
•
.
T/.e independent unit
businesses;
autonomous
maybe
•
SCHENLEY DISTILLERS CORP., NEW YORK
character,
dent organization of business men;
V/'»
.,.<•••
.
NOTE—From time to lime, in this space,
there will appear an article which we hope
will be of interest to our fellow Americans.
(Continued from page 1794)
this
»'
/
in
was
number
3,065.
the
1920
number
was
4,676;
of
in
4,069; but in 1935
had
been
reduced
According to the
(Continued on page 1812)
re-
Ohio Municipal
Ohio Brevities
Possibilities
For Post-War
Thursday, October 26, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
1802
Comment
:-,The largest Ohio municipal issue to reach"the market for some
Vice-President of the Financial Advertisers' Asso¬
ciation and Assistant Vice-President of the National City Bank of time was the City of Akron issue of $884,000 refundings, award of
which was made on Oct. 23 to a syndicate on a bid of 100.978 for
Cleveland, is conducting an employee relations forum at the 29th
annual convention of the • Association, which opened yesterday 1 at 'l'Vais; making a net interest cost to the city of about 1.34%. Ohio
firms participating in the award included William J. Mericka & Co.;
Chicago.
- v
' ■ ••
7 ■
The theme of this' year's gathering, which concludes on Sunday, Ball, Burge.& Kraus; Seasongood & Mayer, Pohl & Co.; and Brown¬
is "What's Ahead?"
ing '& Co.
■ 7.:7--'
./
<♦>
:
—
:7'.;:v.7
7-':V' 7 :'^; 77/;'■
Dale Brown,
recommend
we
Standard Stoker Co.
.
Stock
Common
■
,
Request
New Memorandum on
speaker will be
Another
Rude
S.
E.
OTIS & CO.
(Incorporated)
1899
ESTABLISHED
Tower
Terminal
Cleveland 13, 0.
Bell Teletype
CV 496-497
.
Phone
CHERRY 0260
OFFERINGS WANTED
:
'
OHIO
KENTUCKY
MICHIGAN
CAREW
CINCINNATI
7-7 • v, V,;-. '■
2, OHIO
ex¬
charge of operations of Republic,
Truscon is a Republic subsidiary;
Paul
public for ten
Sunne
;%Mr5.
with
been
years,
Re¬
spending two
at the Youngstown Truscon
years
TELE. CI
1804
7v;7;7.
Miller
of
*
$
" *
For the first time in six years,*.
Toledo,
the weekly output of electricity
by the Cleveland Electric Ilium- '
to
appraisers
appoint
determine
to
the
of
value
true
)
land
Sport Products Common
Whitaker
Paper
Trust
Land
Philip
Farm
cial
■
Income
Bonds, Pfd. &
the
Farm
Gibson Hotel L. T. C.
Com.
Market value
$18,
was
'
"
MEMBERS
Neio
York
'
,
'
Cincinnati
Stock
Under
Exchange
Dixie
Terminal
a
Building
share
CINCINNATI 2
Tel. Main 4884
terms
Cletrac
receive one-third of
share of Oliver stock for each
merger
holders will
New York Curb Associate
,
share.
per
Stock Exchange
Tele. CI 68 & 274/
Cleveland
of
Tractor
that
W.
King White, President of Cle¬
trac, will be made a director and
member of the executive commits
which
is;to
•
COMMON
•
v
on
known
be
:Jt
of
board
Request
Oliver
as
Frank J.
a
will
Cletrac
Ryan, Assistant to the
production reflects lower
consumption by industry. It appeares that the peak of demand
for war "production was passed ten
months ago."
power
Valley IBA Group
7
WM. J. MERICKA & CO.
INCORPORATED
Union
Commerce
j.
Stock Exchange
the
Teletype CV 594
BROADWAY
Oliver
o?
\
a
business meet-
NEW
YORK
6
share
Oliver
doubling
800,000
to
the
S100
annual
meeting
Harris
Seybold
-
nounced
the
.
-
President
For Our Own Account
;
J. A. White & Co.
Union Central Building
Cincinnati 2,
Ohio
Telephone
Teletype
CI
t
163
-
Parkway 7340
Chicago,
Potter
company
Co.,
offi¬
the
has
dealers
as
part
post-war
expansion
9
■
now
'
Field, Richards & Co.
Tele. CI 150
Boles, The Ohio Co.,
Ohio, Vice-Chairman;
Lucas,
Stein
Bros.
'i,
paint divisions.
Nelson
W.
Treasurer.
ecutive
Members
of
Blyth
&
the
Ex¬
Robert
Committee:
Co.,
officio member.
*.'
B.
Louis¬
Universal
C.
I.
:
School
cepted bids Oct. 20 on a $240,000
T.
obligations,
purposes.
Oct.
dated
1,
and
William
E.
C.
Reusch & Co. and Walter,
&
Woody
Heimerdinger. Only one other
bid
received
was
by the district,
this being an offer of
for
which
opened
duties
101.21 for 2s.
be
1944
15.
Dec.
dated
ture
will
bids
sealed
be
and
ma¬
1946 to
semi-annually from
&
Co.,
429
Fourth
will
voters
bond
asked
be
involving
issues
,
to
of dollars for post¬
construction
projects at the
general
election,./the
will^b^ pre¬
Couql^./- The
v
sented in Hamilton
county governmentj also;the City
Cincinnati
of
school dis¬
its
and
improvements
contemplate
trict,
involving the issuance of $41,000,000
The
bonds.
dorsed; by
is
program
civic
various
en¬
groups
the
and will have to contend with
imposed by
formidable handicap
State
require
which
statutes
65%
vote for
favorable
a
approval
of local bond issues.
of
the
were
with
Babson's
Reports.
to
&
the
offering group
& Co.; Kuhn,
Read
Stanley &
Co.;. Morgan
Co.; Harriman Ripley & Co., Inc.;
the
First Boston Corp.; Smith,
Barney & Co.; Lhzard Freres &
Co.; Goldman, Sachs & Co.; Halsey, Stuart & Co., Inc.; Lehman
Net proceeds from the sale, to¬
gether with treasury funds of the
company, will be applied to re¬
demption
the
on Jan. 1, 1945, of all
company's $115,499,000 of out¬
standing
first
and
refunding
3%% bonds, series H,
due on Dec. 1, 1961.
The aggre¬
gate of the principal and redemp¬
tion premium of the outstanding
series H bonds is $124,161,425. ; /
mortgage
new
for
bonds will be redeem¬
both
sinking fund ar^d
general purposes, at prices rang¬
from
IO8V2
on
or
before
ing
June
1,
1947,
to
after
par
June 1, 1973.
The sinking fund provisions re¬
quire payment semi-annually on
1 and Aug. 1 of a sum at
least
equal to the amount
by
which % of 1% of the aggregate
Feb.
funded
debt
May 31
or
the
on
preceding
Nov. 30 exceeds
tain
payments,
sinking
funds
cer¬
principally
for
underlying
on
mortgages, made in the six-month
periods ended May 31
Nov. 30.
or
7 The
company's
consolidated
balance sheet on July 31 showed
outstanding funded debt of $302,341,500, 4,197,662 shares of 6%
cumulative
1,173,1*33
preferred
of 5Vs%
stock,
shares
cumu¬
lative
first
preferred
stock,
400,000 shares of 5% cumulative
proved but do not minimize the
first preferred stock, and 6,261,357
it
that
■
fact
that
36%
can
will
the voters.
1
be
.
shares of
of
minority
of
majority
months
were
-
stock.
$87,866,008;
ended
the
in
revenues
seven
:
,
...
common
Operating
wishes of
thwart the
overwhelming
an
are
program
small
a
July
on
31
income,
gross
■
$37,964,151;
interest
deductions,
$6,601,059, and net income,- $13,-
Ohio Municipal Price
212,495.
Index
Oct.
Oct. ;
Sep.
§
I
t
t
1.35%
1.53%
1.18%
11
1.53
1.18
Wilbur H. Zink Forms
.35%.
1.35
.35
4
7
•.
•
__
13
—
Aug. 10
July
*•
18, 1944_
.Dale—
Oct.
__
V
1.35
1.53
1.17
1.50
1.14
.36
1.31
1.49
1.13
i
__
_.
„
17
Apr, 12
May
—
Zink & Go, In Clove.
,36
1.32
.36
.33
1.48
,1.15
1.31
1.40
1.16
.30
1.31
1.40
1.16
.30
3.32
J2
Jpn., 14
1.40
1.17
.29
3.341
1.50
1.19
1.53
1.21
.32
1.23
.34
(Special to The Financial Chronicle)
CLEVELAND,
OHIO —Wilbur
.31
3.37
.1.31
-
Mar.
15
Feb.
10
Jan.
19
Dec.
15, 1943,.
1.42
1.59
1.24
17
1.39
1.57
1.22
,35
1.39
3.58
1.21
.37
3.43
1.02
1.24
.38
H. Zink has formed W. H. Zink &
Co.
with
offices
in
the
Union
.35
Nov.
Oct;,1 13
Sep,
_
__
_
1.40
'
15
„
-
__
3.44
Aug. 18
1.57
1.(53
1.25
Commerce
Building, to engage in
Mr. Zink
the securities business.
was
formerly
a
partner
firm of-Perko & Zink.
in
the
1
.38
15
3.50
1.03
1.32
.30
1.7(5
1.97
1.55
.42
Jan.
1
1 83
2.01
1.65
.36
Jan.
1,
2.13
1.70
.43
1, 1941—
1,1940—.
1.92
1.88
2.30
2.78
2.98
1942-1
I, 1938-
with the staff at the Executive
104
at
ap¬
Backers
/confident
1,1939-..
Headquarters in New York City.
Loeb
able,
Jan.
Avenue,
in
Dillon,
The
1CC0 inclusive.
Jan.
Pittsburgh,"Pa. Both in the past
priced
were
Included
new
Nov. 9. The bonds will
on
W.
have become associated with Was¬
bonds
yield 2.80%.
maturing semi-annually
Shurtleff
—
re¬
bonds,
The
Brothers; the Mellon Securities
purchased Corp.; Dean Witter & Co.; Glore,
Forgan & Co.; Kidder, Peabody &
by a group
headed by Ryan,
Co.; Stone & •Webster and BlodSutherland & Co., as l%s, at 100.332. Associated underwriters were get, Inc., and • the Union Securi¬
ties Corp.
William J. Mericka & Co., Fox,
Jan.
Credit
new
capital
new
3%
mortgage
from 1945 to 1966, were
July
(Special to1 The Financial Chronicle)
son
Corp., has taken up
large offering
Springfield
District, which ac¬
recent
Jan.
-
With Wasson In Cleveland
Faust
A!an G, Rude, Vice-President
7'7/7
'j
Mar. 10
CLEVELAND, OHIO
%
-/• j,/-" % j
contributed;., by
Rural
.52
2.14
1.62
2.58
2.01
.57
3.33
2.24
1.09
3.42
2.55
.87
tlO
index Coy ' 20 bonds.
lower grade bonds.
110 high grade bonds.
SSpread
betVcen high grade and lower
*
of
Another
was
&
Boyce, Louisville, Ky., Secretary-:
pro¬
time to his position of Vice-Presi¬
dent in charge of Glidden's Chi¬
#
Union Cent. Bldg.
CINCINNATI
Chester
Chairman;
5)5.
devote all his
■
syndicate
series L, due on June 1. 1974.
are
e
V;:
7
plant superintendent-.
Tele. CV 174
T h
,
ville, Ky.; C. T. Diehl, Provident
7j'7 Saving's Bank, Cincinnati, Ohio;
Anthony- J.
Armbrust,
Merrill
Gordon H. Mutersbaugh, vet¬
Lynch, Pierce, Fenner & Beane,
eran employee
of Glidden Co.,
Cincinnati, Ohio, and J. Austin
has been made general super¬
White, J. A. White & Co., Cincin¬
intendent ef the paint and var¬
nati.
Stanley
G. McKie,
The
nish division, Dwight P. Joyce,
Weil, Roth & Irving Co., Cincin¬
Vice-President, announced.
nati, the retiring Chairman, will
Gurdon Hamilton, formerly in serve on the committee as ex-
gram.
cago
CLEVELAND
T.
McDowell,
division
Gra¬
Louisville,, Ky.,
Seybold Dayton
Haviland replaces Mutersbaugh as
Union Com. Bldg.
Co.,
Ewing
its
7;:7;:;
Bankers Bond
Columbus,
the. post, will
SECURITIES
printing
are:
ham,
Graham
Thomas
ac¬
Harris-Seybold-Potter Co. has
established a used printing and
lithographic machinery division
at Chicago and recently integrated
sales
and - service staffs:: of the
.4
OHIO
in
i
Thomas
an¬
equipment.
of
this
'
of
group
of
quired the Charles N. Stevens Co.
of
bonds.
year.
New
Mitchell,
for;
School
improvement
and
construction
" elabo¬
rate
cers
V.
the
7
usual
125.000
convertible
e e
dispense
with
Nearly 84% of
Cletrac shares
outstanding
R.
of proposals calling
the issuance of $5,980,000
decided
to'
present
i 11
m
had
voted
authorized
par
The
Executive
Com
funding
November
the
underwriting
members headed by
Gas & Electric Co.'s first and
seek approval of
transact
business.
present
issuing
and
of
year
necessary
voted the merger.
Ohio
the
any
of
com¬
new
of
the
of
preferred stock.
We Buy
for
cers
Cleve¬
holders
of
shares
jcommcn
shares
on Oct. 25
elect offi¬
ing
;V
common
14
common.
29
shares
for each
mon
Members Cleveland
to
stock, two shares of
Building
CLEVELAND
election
of
Blyth &
Co., Inc., offered Oct. 24 to the
public $115,000,000 of the Pacific
in¬
1952,
Syndicate
Offers Pacific Gas Bds.
167
on
City of Akron, by
at
voters
to
Nation-Wide
An
1,
serially
major share of which
and
deliver
doubled
new,
the
coming
Investment
become
146,659
Tractor
The
the way, will
war
Ohio " Valley Group
the
Bankers
Association
The
1946
from
1
clusive.
Nov.
dated
are
mature
many millions
Elects Thos. Graham
ensuing
Oliver will
Nov.
authorize
Ohio
company.
land
and
Ohio
combined
of. the
k
ago.
year
of America held
:Jc
members
bonds
The
1944,
7,
municipal now
in
prospect consists of $656,000
Village of Wickliffe refundings
President, stated "this reversal in
F. H. Chapin and one other di¬
rector
Circular
company,
Corp.
DIAMOND ALKALI
\
combined
the
of
tee
week
being made
77y\,y'■■■
| The largest
sur¬
It is also reported
rendered.
week ago declined to 1,765,000
same
•According to the petition filed
Monday, the book value was
$25 and intrinsic worth over $42.50
production
power
kilowatt hours, or 2.1% from the
v
last
W. D. Gradison & Co.
a
at
Oliver7
with
merger
effected
was
Ohio"
for the seven-day period ended
spe¬
a
of
decrease
Oliver
with
merger
meeting.
the
approved
Equipment Co. at
which
Pfd.
Co.,
Cletrac
company's
Common
Certificates
Carey
of
northeasternl
and
fell below that of the same
week of the preceding year. The \
area,
)}■: Earlier this month, sharehold¬
ers
,
iiiating Co. for use in the Cleve¬
Cleveland Tractor Co. stock.
Gruen Watch Co., Com. & Pfd.
Associates.
1944 and
.
other
several
by Halsey, Stuart & Co., Inc. and
These
production methods.
v;:/'
■
-a-
has asked Common Pleas Court at
140
received
bid,^
offers, with the second best ten¬
der of 100.703 for IVzs
issue for
Cleveland
MAIN
city
successful
the
from
plant assisting in the introduction
and
Savings
/;■ *
,;■#
■
has
Robertson
Association.
Loan
TOWER
throughout the country
company's program to
Aside
the
of modern
Second -Federal
of
KLINE, LYNCH & CO. Inc.
the
sales
pand
post-war
sales financing
Clevelanders attending operations, John J. Tice became
are;
Robert J. Izant, Vice-Presi¬ Vice-President in charge of the
division,,
succeeding
dent, and H. J. Wills, head of the Cleveland
public
relations department
of Rude.
;,7777.■'yi,y;>
Central National Bank; I. I: Sper¬
Peter Robertson, Assistant Chief
ling and H. Leonard Flynn, VicePresident of Cleveland Trust Co.; Industrial Engineer for Republic
Allen C. Knowles, President
of Steel Corp., is' now the works
South Side Federal Savings and manager, of Truscon
Steel Co.
fiOan Association; D. James Pritch- Youngstown plant.
He succeeds
ard,! Assistant Secretary of Society W.. M. Kelley, newly appointed
for Savings; Charles Patch, Jr., Assistant to the Vice-president in
Hobart, copy director of R. L. Polk
&
Co.; L.A. Aklerson of the
Cleveland
"Plain
Dealer,"" and
Harry B. Winsor, Vice-President
MUNICIPALS
of
office
Among
trust office of National City;
PENNSYLVANIA
the
charge
branch
arid
activities
in
have
will
division
former Vice-President
of National City, now President
of the First Central Trust Co. of
Akron.
■■'Y..
Patterson,
Composite
grade
bonds.
Foregoing compiled by J. A.
Cincinnati.
Weil With
Goodbody & Co.
{Special to The Financial Chronicle)
CLEVELAND, OHIO—Julian S.
Weil has joined the staff of Good-
body &
Co., National City Bank
Building. Mr. Weil was formerly
with Merrill Lynch, Pierce, Fen¬
ner
White & Co,,
Co.
& Beane, and Sutro-Bros. &
"
i.|1l4Mua4\W^MMISa^»:n^tn^iU.^K34imMltfixmliM(l^liU.M>M^Wi'IKM>JUftn«M^iA«tfl01^M>*4Mit>>W<ittll*ftM
J
Volume 160
4rtum*tS«
t
'
Number 4328
V-3«M«af
...
jMMMr4MMUlU U.
-
(U»iS'^Hd4> Mii*flkltl »tf*,uU if
-■
ITm.
jr... wiw. «►■«
THE COMMERCIAL & FINANCIAL CHRONICLE
1803
.XWXf^v
it
n
(
w:v:^:" i'i •,
:.s:.ssv^\v
OXWSvW
H
11
XvX*
vav:
ja-xvx-
iip
v.vv^^AvT'Xy
a
grades of coal
One way toiskeep a house from get¬
ting cold
by weatherstripping all
demand for
cracks
that let cold in—and heat out.
There is going to be some shortage of
last —with
being mined. It is
tribute to mine
There
are
fewer
more
owners
men.
your
biggest jobs of the C & 0
along its routes,
so
understand the
problem, and to know
patient with him.
how essential coal is these days.
tons of
•Little,
Quite" a
and miners alike!
adequate rail facilities for
common-sense
make your coal
and
,
than
production. And
One of the
Lines is hauling coal from the mines
coal dealer is handicapped by a shortage
coal delivered to homes this winter. Not
estimated that 29 millions
going to be greatly in
of.* manpower, trucks and tires. So be
doors and windows. Closing up the
because less coal is
are
war
■
save
Such
;
precautions
we're in
a
position to
can
pile last 10% longer—
that much
things
as
on
.
your
fuel bill.
weatherstripping,
cleaning the heating system, closing off
unused rooms, firing carefully, and draw¬
ing your shades at night
your
family
snug
can
and warm.
chesapeake ani)a)hio railway
help to keep
nickel plate roao
-
pere
-
marquette railway
Save Coal— and Serve America
Growth In Wartime
Federal
PRIMARY MARKETS IN
v
Liquid Assets Analyzed
Royal Bank of Scotland
Year Increase Of $107
Bulletin Estimated A Three
Reserve
Incorporated by Royal Charter
Billions, Or About 2*4 Times Pre-War Level. Notes That This May
Provide A Cushion Against Severe Depression But Presents Inflationary
STOCKS
BANK and INSURANCE
Thursday, October 26, 1944
& FINANCIAL CHRONICLE
THE COMMERCIAL
1804
HEAD
Huff,! Geyer &- Hecht
Boston
5
York
New
67
HUBbard
3-0783
WHitehall
0650
■"•■'■'"J
TELEPHONES TO
.
4
|f;.
7008
,
1199324782-
according to the
September 1943;..and $30,618,000 in
$26,488,000 in
with
This
amounted to $31,448,000.
National Board of Fire Underwriters,
compares
-Y,
■''/>
By K. A. VAN DECSEN
August of this year.
Total losses for the first nine months of 1944
amounted to $308,824,000, compared with $271,211,000 and $231,615,-
000
evident that,
although the
upwar^'*
~~
trend" in fire losses is con¬
"war
of
the ; rate
tinuing,
increase is
losses
than
17.1 % «greater
were
New York
1942's, while 1944's losses are only
greater than 1943's.
13.9%
It ap¬
that, as
to
decline
will
more
a
to
and
trends
New
Members
Stock
York
Exchange
.
year- as
re¬
losses increased only 46.7%.
In¬
ported by the National Board of dustrial production and fire losses
Fire Underwriters; also the index* do tend
to; move in the same di¬
of industrial
production in the rection, however.
Of course it
United States, as compiled by the should be recognized that the in¬
Federal Reserve Board, and/the dustrial
production
index
is
-
annual net premium volume
of a
conditions,' on
fire insurance
Fire
Written
($000)
($000)
416490
430.425
422,947
428.142
(1935—39=100)
Year
etc.
Premiums
Losses
1925
SO
373,501
1926-
96
393,021
95
320,596
99
4 '301,268
;
'=>
110
422,215
*463,613
452,017
over¬
thg plant and equip¬
is receiving fire pro¬
Thus,
ment which
58
.
dis¬
addition,' shows
in
premium
tends
of in¬
index
the
follow
to
likewise
volume
1933——
69
316,897
280,367
1934
75
275,652
301,998
dustrial production; and
1935—
87
f 259,160
309,082
103
293,357
328,367
might logically be expected.
1936—;..
113
1937.—
302,050
313,499
125
306,470
399,089
1943—'
239
162
322,357
1944—— ;
' "
501,521
'468.474
*High. t Low,
§ Estimate.
-:v y
When
.
•
§420,000 §300,000 "■
tAverage of eight months.
$237
due
decline of the average rate
premiums, from $0.97 in
1925 to $0.65 in 1943, or a total de¬
cline of 33%.
With regard to
1943 premium volume,
1942
below
y;.
examining the tabulated
figures, it will be observed that,
in
to
fire
of
456,784
314,849
\ 380,235
199
vehicle
writings;
For example, following the
1929 economic collapse, while in¬
to
tions.
dustrial
production
rapidly
de¬
110 to 58, fire losses
to an average
of around $450,-
actually increased
annual
volume
000,000, and reached
The
000.
the
of
a
maximum
total of $463,613,-
in 1930 with a
have
years
usually been attributed to the socalled
"moral
arson.
or,
to use
franker
and
harsher
a
hazard,"
word,
The low in losses occurred
in 1935 with a total value of
160,000 against
an
$259,-
industrial pro¬
duction index of 87.
Since then,
production expanded and in¬
tensified, losses increased rather
as
then quite rapidly
as the war production effort has¬
tened to its peak.
steadily,
fire
that
be
losses
proportionally
For
however,
not increase
noted,
do
with
example, from
production.
1935 to 1943
the production index moved
87
to
premiums
239,
or
table
a
tober
these
comments
published
issue
News,"
of
fires
reported,
were
on
was
Oc¬
the
"Insurance
Fire-
"Annual
Out of 665,000
130,000
attributed
matches.
in
Best's
entitled
Losses by Causes."
to
19.5%
or
smoking and
The next highest cause
"electrical;" which accounted
for 58,000
or
8.7%; this
fol¬
was
lowed by 50,000 or 7.5% attributed
to
chimneys and flues,
6.8%
heated
44,000
heating
or
roofs.
Lowest
Children
in
or
over¬
equipment,
matches accounted for
3.5%.
or
and
6.6% through sparks
flammable
or
45,000
through defective
on
with
23,500 fires
the list
are
films and fireworks, each of which
expansion
article
nesses
of
accumulation
current
continues.
"While current
individuals and busi¬
of
the form
be held in
may
liquid assets,- tl^ese assets are
not
of
distinguish
of liquid
savings," the
to
necessary
savings
of savings, In times
measure
a
current - savings of indi¬
viduals and business are generally
peace
l'ire^.
billion dollars a
if no allowance*is made for
depreciation,
obsolescence,
and
destruction of existing capital, the
would
be
considerably
The growth in liquid as¬
has seldom equaled 5 billion
figure
larger.
sets
dollars
In wartime, how¬
ever, the opportunities for direct
investment of savings by, either
a
year.
individuals
a
goods
businesses
or
construction
of
or
are
for
the
in new
purchase
As
sharply limited.
result there has been little sav¬
form by individuals
businesses.
They have had,
ing in
this
however, an excess of current in¬
comes over
their current expendi¬
tures and have accumulated
assets
in
the
form
of
Government securities.
think
We
that
fire
truly
sable."
.
it
pertinent
insurance
be called
to
add
companies
"indispen¬
on
sibly
at
even
to spend the
sold
be
and
These
as¬
other
they
or
to
may
the former
nonbank
existence
of such
a
large
available
funds," it is pointed out,"raises
important questions as to their
possible significance in the peace¬
time
economy.
They provide a
cushion against severe depression
and also may present inflationary
and
savings habits should con¬
tinue, however, new investment
London, E. C.
in
Burma,
India,
assuming
Ceylon,
Kenya
ings in the aggregate, although
ownership would have shifted. If
banks
purchase
the
securities,
bank
deposits,
holdings
ities,
of
well
as
secur¬
increase. It is even
that
some
individuals
would wish to convert a portion
of their large holdings of currency
and
deposits
into
Government
securities and would
buy them
from banks, in which ca$e bank
deposits would decline, although
would
possible
the
aggregate liquid
businesses
of
would show
pset holdings
and
individuals
change.
;
"Banking
developments ; after
the war will depend to a greater
no
extent than in the war
period'on
the demand for private credit. Al¬
though some concerns may be out
of the borrowing market because
of
large liquid asset holdings,
will
others
be
funds.
seeking
substantial
Tubize Rayon Pfd.
Offered Publicly
investment
An
banking group
Kidder, Peabody & Co.
headed by
and
Union
Securities
Corp.,
as
joint managers, offered for public
sale Oct. 24 70,000 shares of 4%%
($100
preferred
stock
of
Rayon Corp. at $103 a
par)
Tubize
share.
Of
sale,
:
u
.
the
net
proceeds from the
$4,553,075 will be used by
the
corporation to redeem $2,450,000 of 3y2% sinking fund de¬
bentures due Nov. 1, 1956, and all
the 18,395 shares of
7% ($100 par)
preferred stock .outstanding. The
balance of the proceeds will be
added
initially to the corpora¬
tion's general funds.
Associated
with
Kidder,
Pea-
body & Co. and Union Securities
that
will
be
Co.; Hemphill. Noyes & Co.; Mer¬
from
loans
will
potential borrowers
of
such
part
upon
Extension
banks.
in
depend
the
willingness and ability of the
banking system to make advances
to
more
dynamic
and» rapidly
firms
growing
not
yet
credit
whose
has
been established.
New
standards may be needed
credit
in the post-war era.
"Consumer
j;
which
borrowings,
the past have been a sizeable
element directly or indirectly in
in
the
credit
bank
of
volume
tended,
ex¬
increase again not¬
may
Riter
rill
the offering group are:
Eastman, Dillon &
&
Co.;
Pierc(%
Lynch,
Fenner
&
Beane; Reynolds & Co.; Shields &
Co.: Paul H. Davis & Co.; R. S.
Dickson
&
&
Co., Inc.; Hornblower
Weeks;
Clement
W.
&
Courts
C. Langley & Co.;
& Co., Inc.;
Evans
A.
Folger, I Nolan
Co.;
&
Co.. Inc.; Graham, Parsons & Co.;
Hallgarten & Co.; W. E. Hutton &
Co.; The
Wisconsin Co.;;!'Bacon
Whipple & Co.; Johnson, Lane,
Space & Co., Inc.; Piper, J affray
&
Hopwood;
The
Robinson-
Humphrey' Co:;: Oscar Burnett &
Co., and Kirchofer & Arnold, Inc.
.
purchases even
holding large savings.
though
" ;v
"Although the total volume of
bank
credit
expand vin the
may
post-war period, there is a likeli¬
hood that the expansion will be
smaller
relative to the general
level of incomes and business ac¬
the pre¬
war period.
In retrospect it now
appears that the large growth in
liquid assets in the previous war
tivity than was true in
the
although banks grew
the demands on
of credit pre¬
relatively
they had been
prior to that war. It was then that
bank holdings of securities and
not
great
as
as
began to increase
rapidly. Changes in bank loans
and
so
loans
investments
three
decades
i
are
the past
shown in the
over
chart.
"If
should liquidate holdings of Gov¬
ernment
provide
businesses
and
individuals
securities
.
in
for
funds
order
current
banks may be
called
chase
securities.
these
of United
curities
business
by
concerns
and
This would
bank
In
this
coriversior
States Government
held
currency
a
tc
use
to pur¬
upon
event there would be
war,
viously customary were
security
holdings, but they will
also undertaken
Corp. in
decline in the first few years after
the war. There will be shifts in
ownership and possibly in
their
composition as
individual
persons and businesses soend or
of
undoubtedly be some
rapidly growing firms
will
them for the types
any
description
Executorships
and
and
meant that,
show
Trusteeships
new
There
after
expected that the
total volume of accumulated liquid
£2,200,000
every
banking and exchange business
bank
as
Government
rent
It is not to be
BankBj conducts
no
changes in public or private
debt, there would be no"hange
in the composition of liquid hold¬
utilize such, a large amount of cur¬
savings and maintain eco¬
nomic activity at a high level.
Capital
Capital
Fund—-
Reserve
be sold to banks.
case,
outlets will be needed in order to
invest their
Uganda
Bishopsgate,
other
readily
possibilities.^ If wartime liquidity
will
and
26,
Colony and Aden and Zanzibar
inves¬
post-war
assets
In
Government
Colony
Office:
Branches
may
tures. '
of
the
to
Kenya
Head
The
proceeds, these
withstanding the large consumer
holdings of liquid assets.* Indi¬
viduals may seek credit for their
"The
Bankers
their holdings
of
some
formation; they are the result of
borrowing
by
the Government
from banks and from the public
in order to finance war expendi¬
volume
Ltd.
of INDIA, LIMITED
to
high levels and pos¬
grow further.
Should
Bank,
NATIONAL BANK
has
expected
be
may
Deacon's
Glyn Mills & Co.
banks,
liquid. assets
of
which
ities,
continue
liquid
cash
represent new capital
sets do not
Associated Banks:
Williams
meant increased assets and liabil¬
their
accounted for 500
from
174.7%, while fire
than 7%.
more
and
should
It
closing
motor-
fire losses, it is of interest to refer
abnormally high losses
depression
and
sold,
reserves,
and
assets
categories, and
and
fire
actually increased
In
the decline
the
in
was
of j. ocean; ' marine
general, fire losses rise and fall
with
industrial
production,
as
might
reasonably
be
expected.
However, there are certain excep¬
clined from
a
tion
354,807
1940—
the
is
year
335,355
109
1938—
this also
In
distor¬
steady year by
this case, again, there
362,769
284.720
89
1939—— Y •
has
year;
that
303,646
442,143
Y
securities that
of the
has gone
is
p
■
£2,000,000
into insurance or
and a small
amount has been used to purchase
property. :■ ',•>
"It
ASSETS
£115,681,681
"For banks the
the article states':
In
between
the Banking System
on
Referring to the effect
tors
■
TOTAL
to pur¬
income
conditions.-:'
table,
Burlington Gardens, W. I
64 New Bond Street, W. I
£4,000,000
held a part in the form of
deposits and currency. Banks
have purchased the Government
securities < not bought by others.
Some of the surplus income has
been used for the repayment of
or
E. C. /
Charing Cross, S.W.J
Paid-Up
to as much as 10
The
49
Subscribed
Government
pension
Bishopsgate, E. C. 2
liquidate
surplus
some
:
individuals and businesses wish to
goods thaii it would under normal
'
345,291
1930——
their
•'
of Government securities in order
proportionately greater volume of
tection' today is turning out a
,
,
3
•' •••».l;
..
OFFICES:
Businesses and in¬
a large part
have used
represented by the net increase jn
residences, plant,: equipment, and
stocks of goods, and have amounted
390,654
75
of
account
427,160
91
present
time,24-hour operating schedules,
.
Industrial
Production
under
distorted
greatly
of 30 representative stock
companies,
u- '
y':-"\'y
Net' v.;
group
corresponded
has
borrowing
debt
Gibbs, Manager Trading Department)
fire t
States each
United
Effect
have
Request
Oil
Bell Teletype—NY 1-1248-49
■y.
20 years.
shows
lation
liquid
of
Government
has j received
the
Telephone: BArclay 7-3500
changes
The tabu¬
losses -in the
the past
growth
Federal
considerably more than
in taxes, and it
has been- necessary to meet the
deficit by borrowing. The amount
it
of
120 BROADWAY, NEW YORK 5, N. Y.
(L. A.
over
The
dividuals
Laird, Bisseli & Meeds
of
assets.-
'
'•"
8 West Smithfield,
paying off of Government debt in
amounts greater than any increase
that may occur in private debt
held by the banking system.- This
is not likely to occur on a large
scale in any short period of time."
has spent
throughout Scotland
*'■
about only as a result of the
come
bank
Available
accompanying tabid in order
gain some perspective <through
review
in, the
flected
expenditures.
.rational
the
a
City
1944
Sept. 30,
worthwhile ffo present
seems
excess of current pur¬
chases, notes the Bulletin, and the
difference has been largely* re¬
chase
:
level.
greatly in
closely to the excess of business
and individual incomes over their
Bank Stocks
logical to assume
war production is cut back and as
we
gradually approach normal
peacetime production/; fire losses
pears
of
or "may present inflationary
possibilities."
During the war business and in¬
dividual
incomes
have
been
of
Comparison & Analysis
month
slackening, for 1943's nine
It
It is
and 1942.
respectively, lor the first nine months of 1943
Governors
sion"
This Week—Insurance Stocks
in the United States in September,
of
probable $189.9 billions at 6nd of®
—f- ■
.
—~
•?.
u.—:—
1944 or about 128%, the Bulletin
, continue to exist in other hands
analyzes the significance of the or in other forms. Since the warexpansion, and without predicting time expansion of liquid assets
the future effect, states the condi¬ has resulted primarily from the
tions under which it "may provide growth
in Government debt, a
a
cushion against, severe depres¬ substantial decline in the'total can
Bank; and Insurance Stocks
Fire losses
Board
t
'
LONDON
Bulletin, published by
the Federal Reserve System, contains a
corporations, (exclusive of banks, insurance companies and similar
institutions) has increased from $83.4 billions at end of 1941 to a
SEATTLE
Enterprise
3008
Enterprise
PROVIDENCE,
'
'
■
PORTLAND,
60 U
Enterprise
HARTFORD,
."V":
CG-105
ANGELES,' SAN FRANCISCO,
LOS
LOUIS,
ST.
-i
leading article on the Wartime Expansion of Liquid Assets. Estimat¬
ing that the holdings of liquid assets by individuals and business
Street
7535
NEW YORK, BOSTON, CHICAGO.
SYSTEM CONNECTING:
PHILADELPHIA,
the
3
Salle
La
FRanklin
NY 1-2875
PRIVATE WIRE
S,
135
Square
*
The October issue of the Federal Reserve
Chicago
!)
Office
Post
10
street
W*U
OFFICE—Edinburgh
Branches
Possibilities, Too.
1727
result in
of
In other
the financing
of
se¬
anc
to cash forms-
demand
holdings
securities.
individuals
a
deposits
growth oi
Governmenl
words, part oi
consumers
and oi
businesses by banks after the war
may
bank
take
the
indirect
purchases
of
securities from the
than
the
direct
loans
and
purchase
securities."
form
oi
Governmenl
public rather
form
of
of
bank
corporate
»irri (i*i m
iTJj'1
Volume
TO
TRAIN
kt&'fi
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4328
160
J'rS ^
H
TO
TRAIN
ENGINE
TO
At
T A lAf
♦ eft
CO
TOWER
TRAIN
CAB OOS E
R, Orders Million
Dollar Installation for two
P. R.
Main Line Divisions
Instantaneous and
continuous
munication between
towers,
telephone
a
OF
reality
.
.
.
thoroughly
tested
The train
telephone is
not
iary
intended
to
more
operation
what is
trains. Rather, it becomes
an
auxil¬
to
effective by giving all who
more
happening
on
are
involved in
find possible improvements, but
ways
The induction
•
thorough and quicker information
to
of applying it more,widely.
telephone is
one
of the
many
far-reaching improvements brought about by
the
Pennsylvania Railroad's never-ending search
Pennsyl-
for
new
vania Railroad.
This great
.
fact
a
replace established methods
:.
things and better
evidence of the
advance in railroading has been in
at
work in
spirit of
railroading
.
ways/
It is tangible
tomorrow that
.
.
today is
perfecting and apply-
as to
experimental operation
the line.
Main Line Divisions of P.R.R. have
every
proved. Soon it will, be
only
learn the best
established signaling, communications and safety devices,
to
making them
train
of the busiest divisions of the
TELEPHONE
TRAIN
of conveying instructions to
and
on two
THE
com¬
moving trains and wayside
now
H
Pittsburgh
to
,
between engine and caboose,- between
train and train is
FUNCTION
,
long been equipped with
on
a
Pennsylvania Railroad for two
branch of the
years
.
.
.
not
ing ideas and inventions that ordinarily would
be considered
as
belonging
to
the distant future.
proved device for safety, signaling and communication.
Included
are
automatic block
signals, signals in the locomotive
cabs, interlocking plants, power-operated and electrically-locked
switches, dragging equipment
universal
track
circuits,
PENNSYLVANIA
RAILROAD
detectors, slide protection fences,
telephones
at
signals,
switches and
Serving the
Nation
strategic locations, teletypewriter networks, facsimile apparatus
for transmission of train orders, and
centralized- traffic control
Buy Uniltd States
★ 49,625 entered the Armed Forces;
ix 408 have given their lives for their Country
War Bondi and Stamps
Thursday," October 26, 1944
:
THE COMMERCIAL & FINANCIAL CHRONICLE
1806
ment and
ivs
false and sentimental
a
Stalin's
far
is
character
view
of
more
likely to make for war than
facing of facts. Let us
honest
an
American Business
take, therefore, a further look at
history and, on the basis of what
Shares* Inc.
tells
it
,.ifv
By the summer of 1939 Russia
had come through the fires of rev¬
-
into
olution
actual
INCORPORATED
i*
chicago
•
jersey city
•
Prospectus
request from Principal Underwriter
on
X
-AT
i.os angeles
♦
of
position
a
and
great
potential
strength.
Her
economy,
as
I
pointed out last week, was State
capitalism; her government an absolute dictatorship.
But the ma-
Lord, Abbett & Co.
new york
I
Russia.
amine
III
,
;
us,
Last1 week
Prospectus upon request
OF INVESTING COMPANIES
•
consider the future.
- emphasized
British
imperialism. This week let us ex¬
;
Vl,,!'/
•"
[
INVESTORS SYNDICATE
terial
her
of
conditions
;
•
:
;
•
people
;
improving. Stalin was not so
were
Minneapolis,1 Minnesota
greater
weak that he had to make the in-
Jig
Mutual Funds
;;
Nine Months Sales
'v
REPRESENTATIVES
IN
THE
CITIES
PRINCIPAL
THE
OF
famous
STATES
.UNITED
the latter the green light for
He.had some excuse but no
justification for his conduct in the A
fumbling power politics of the
British and -French- governments; :
war.,
Companies reports that
through Sept. 30
amounted to $115.9 million, as compared with $115.2 million'for the
•Cull year 1943.; Repurchases were also at a higher rate than lasf
year, amounting to $54.4 million for the nine-month period, leaving
sales
of
the
68
open-end
net sales of $61.5 million.
On
Sept.
assets
of
30,
the
open-end
1944,
.
j
:
net <$>-——
Association's
member
:
;
-
total
funds
member
——
68
million, representing a
gain of $126.1 million since thq
of the
and
or whatever organ¬
set up. Above all the
are
must
be
non-imperialist,
people must be assured self-
guidance
that end is necessary, it must
government
t
v
(Continued from page 1794)
many are
the
political,
livery
year.
to
and where
conflict
of
causes
in the
ent
world, so keen are the lat¬
rivalries among the victors,
and
so
provocative of war is im¬
perialism, that if by a miracle all
the Germans and Japanese could
be
perial authority. V
IThese basic principles are being
flagrantly
violated
by
Stalin,
would
Churchill and Roosevelt. Unneces¬
velt, I suppose, would go on with
the futile task of trying to appease
them both by underwriting their
1894
Calvin
Bullock's
October
issue
of Perspective marks the 10th
niversary
an¬
of that publication.
Croup Securities, Inc.
A Class of
It
marks, too, the 50th anniversary
of the founding of Calvin Bullock.
Prospectus
on
Request
sarily, they
sands of
The occasion is taken to review
sentencing thou¬
are
our
to death by the
sons
slogan, "unconditional surrender,"
which they use in part to hide
DISTRIBUTORS
the road which the firm has trav¬
eled
during the past 50 years.; A
GROUP, Incorporated
large chart shows the course of
63 WALL ST. •
NEW YORK 5, N. Y.
economic changes in the United
States during this period and the j
text records the highlights along'
try is compared to the recent
the way. ,'vv v| A,-;
their
divisions.
own
Dumbarton
Oaks, in its setting, merely pro¬
vided a camouflaged triple alli¬
destroyed, Stalin and Churchill
go on demanding strategic
frontiers
and
maneuvering
for
spheres of influence.'; And Roose¬
empires with the lives of our sons.
Governor
Dewey's
New
York
speech was politically clever from
Republican standpoint and most
a
of his concrete criticisms of Roose¬
?
.
comeback of the railroads.
Looking toward the future, the
conclusion is reached that, "the
stock
market
have
yet taken
favorable
does
not
into
to
appear
account
post-war earning
the
pros¬
of industry, especially if a
material reduction
in
corporate
pects
taxation
regarded
.reasonable expectancy."
■
be
may
as
.
a
"Prices
shares
general
New
Steel
York
Series
Industry
Stocks
the
in
which
basic improvement in that
of
the
indus-
Comparative
Distributors
to
tional
Sales
affiliated
Group
dealers
as
in
letter
a
tabulates
sales
of
the
Group
Se¬
of
months
million,
this
with
total
year
$17.5
were
15.1% oh the total.
or
Re¬
purchases were $5.0 million, or
9.2% of the total, and net sales
$12.5 million, amounting to
were
of
total
industry.
net
sales
of
the
J;'.:-
.
-V'''/•••
National
PUTNAM
FUND
Securities
&
dustrial
Stocks
Series
industries
new
achieves
its
in
Post-War
J
50
Distributors,
Inc.
State St., Boston
of
rate
Stocks
four
in the
new
of
are
industries.
National Income
issue
of
increase
Keynotes.
in
The
national
occurred
in
in¬
the first
after World War I is
yardstick.* It is then
years
leaders
neither
truths
nor
They
try
as
a
these
believe
really trust each other;
to hypnotize idealists
with words like
"cooperation" and
that, if the same rate of
prevails after this war]
age
Approximately the
is
then
arrived
different
basis
NATIONAL
Securities Series
vj - •
1930's,
National Securities &
an
Research
120
The PARKER CORPORATION
ONE
\
COURT ST.,
BOSTON
Management Associates, Boston,
Mass
Corporation
BROADWAY, NEW YORK,
ANGELES* 634 S.
BOSTON,
CHICAGO,
So.
(5)
Spring St., (14)
10 Post Office Square
208
ican
Anglo-Amer¬
oppose an
war on
Russia,
doomed
a war
because
failure
to,
Russia's
of
La
Salle
than
strength,
growing
But I
I.
billion after this
not
high, but low."
Like Banks
St.
(9)
(4)
30%.
market advance of over
out investment
.values today it is well to keep
in
mind
that
bond
interest
before taxes and that in¬
comes
discount railroad
afford the
terest-paying
bonds
a
as
group
only bond investment available
.today
i
liberal
where you can still get
income and substantial
appreciation possibilities."
;
1,
Investors
Trust
assets of $152,541,277
Sept.-30, 1944, equal to $21.97
per sharq on the 6,942,970 shares
Lord, Abbett makes an inter¬
outstanding. This compares with
esting comparison between the net assets of
$140,643,966 a year
1. ';
----operations of commercial banks
on
■
and
those
in
of
the
investment
is
r
in¬
■
■'
:.
Corp.—Revised
; Keystone
folders
folio
,•
Keystone
on
port¬
High-
Grade Stocks (S-l), Fast Moving
bank; the money
Stock's (S-3) and Inflation Hedge
put into an investment. com¬
is
your
•
no
decline.
The
invested.
you
money Jn
ho income
chance for
capital gain,or
In"the investment Tom-:
your
as
money
well
as
will afford
the
an
chance for
capital change.
lished
a
folder
Group
on
has
Railroad (Bond)
Shares showing
expectancy" of
appreciation
the bonds
At
Jevels
held.
the
"reasonable
on
present mar¬
the- possibilities
exist
.
.
.
National
currant issue
Se¬
Corp.—The
Research
&
Notes-
of National
subject: Post-Wap Building Boom.
Calvin Bullock—The current
.
.
.
and
bond
high-grade
comparing
Bulletin,
common
stock
yields.
Abbett—revised pros¬
Affiliated Fund dated
14, 1944. v', . Selected Invest¬
,". Lord,
pectus
Oct.
pub¬
(S-4).
curities
.
Discount Railroad Bonds
Distributors
Stocks
on
Cui{r
t
issue
of
ments
Co.
^'These
Seemed Impor¬
highlighting Harry Hop-
tant,"
—
en
Things
kin's "conversion" to business or¬
thodoxy;
of
Sept. 30, 1944. portfolio
Selected
American
Shares.
posses¬
countries
with which he had treaties of
non-
and occupied a
aggression,
j'
large
of Poland.
He telegraphed
Hitler:
"Our
friendship is
ce¬
part
mented
in
blood,"
a
other
Stalin's
taste."
Molotov
matter of
army,
the
and
declared, "Fascism is
strong Communist parties through¬
out
which had been
collective security,
the-world,
for
agitating
Britain and
denounced
France in
unmeasured
terms.
Meanwhile
Stalin
a
war
against Fin¬
land
began
least
at
Hitler's
unprovoked
as
attack
Poland.
on
as
Iron¬
ically that war helped Russia by
showing", weaknesses in her army
Stalin set to work to
which
rem¬
edy. He killed and deported thouLithuanians
of
sands
and
Poles,
j
especially Socialists, whose appeal
to the masses as over against his
Then
Hitler perfidiously attacked him,
the Russian people rallied to the
Communism, Stalin feared.
defense
Russian heroism
firm
which
done
leadership
and
in
the
USSR,
much to
so
men
,
;
•
;
war
admiration of the world
the
won
than half of them
more
serfs.
Stalin's
once
as
rallied to defeat Napo-
leon when
were
homeland
the
of
they had
V
had
felt,
them from
save
the Nazis.
With
Stalin
success
to
access
ready,
Europe
Al¬
water.
warm
,
for
I pointed out last week,
as
clash
the
over
Czars
eastern
over
and
took
the
of
ambitions
the
dominance
Russia
of
and
Britain
;
for
spheres of influence in Europe
is on.
Stalin is harsh or lenient
towards the little countries which s
had been his enemies
his
suits
it
according.as
interest, primarily in
exalting Russia's power, and sec¬
ondarily in advancing Commun¬
ism which he has not forsaken.'
There
be
can
no
reasonable doubt
the record that he first invited
on
the
Polish
of
rising
Warsaw
over
patriots
the radio
and
in
then
denounced it and refused to send
Thus
thou¬
might have
been recalcitrant to a puppet Po¬
supplies.
Poles
of
land were slain
a
is
who
He intends to fix
without
boundaries
Poland
even
fairly conducted plebiscite.
has
quite true that he
for
a
It
case
alteration of them.
So
in the west.
Hitler's
some
Hitler
did
crime
Fund Literature
| Mutual
deposit
bank
■
the
by
likewise
difference is that
the bank affords
ket
ago.
of Ab¬
you
money
commercial
a
pany
and
issue
current
The
compa¬
little Baltic
of the
sion
sands
Massachusetts
reports net
;
Hitler he took
with
ance
air-borne
7*. Report
I.
M.
would seem,
war
a
IC "In "seeking
of
•
LOS
hemently
figure
entirely
projected level of $150
a
income,
or
^rV.:
point someone*iI bound
to interrupt me by asking
in the world would more ve¬
one
same
on
through 1929 had been main¬
tained
during the depression
pany
Prospectuses upon request
at
1910
you
dealers,
invitation to new
me; "Mr. Thomas, don't you be¬
lieve that the future of; peace de¬
projection. * "If
the rising trend established from
vested
be obtained
an
At this
to want
post-war years would aver¬
$148 billion annually." ]
: '
with
may
but
wars.
f
four
stracts.
authorized
setting of which Dum¬
not, as he thinks,
promising beginning on the road
to peace,
the "national income for the first
nies
used
Prospectus
ism in the
barton Oaks is
a
gle for spheres of influence and
the Administration's campaign for pends upon continued friendship
post-war
military
conscription between the major victors?" The
here in America prove that our answer is an emphatic "Yes." No
Series
position
growth
which
come
from
cepted the basic evil of imperial¬
for
logical and encouraging anal¬
ysis of the probabilities with re¬
spect to posf-war national income
is made by Keystone Corp. in the
current
ac¬
increase
A
Fund
He
shown
which
ownership of shares
established companies which
interested
surrender."
conditional
the
through
request
the Morgenthau plan for
Germany but not the slogan "un¬
In¬
on
lists
a participation. Par¬
point is .made of the fact
that Industrial
ojf3$io/c-/b
at¬
think reaction from blind appease-
this fund has
ticular
The Stalin and Churchill strug¬
Governor
Research
Corp. in its current letter
various
Putnam
,
The
matter.
"internationalism" while they keep
the masses drunk with hate.
So
Growth Stocks
upon
against an aggressor,
especially since the aggressor is
likely to be one of themselves.
Mutual security with general pro¬
the
tacked
force
tection.,cah exist only in *a dis¬
armed world.
.UlTf-T
Sales of
compared
68 open-end member funds in the
OJI Cfi
of
parts of competitive arma¬
to constitute an interna¬
use
market."
velt's foreign policies were sound.
But none of them went to the root
ments
20.3%
Prospectus
which, as history proves,
cannot last long but can, while it
lasts, do immense harm to genuine
peace. -It is preposterous nonsense
to believe that existing govern¬
ments can bind their successors to
ance
for the industry.
Group Securities in the first nine
Co. has pub¬
attractive memorandum
an
behind
sales
Hugh W. Long &
the
industry
seem
bine months'
•
Opportunity in Steel
on
steel
still
curities
lished,
of
;
Europe powers
destroy one another while
Russia sat by.
Anyway in alli¬
be under international and not im¬
Since
Western
the
would
peace
at $776.9
first
that
izations
stood
funds
Probably his principal hope was
-Vv
————
;
which
Hitler
gave
o'-UUu
The National Association of Investment
1944
with
deal
seeking
in
was
these
violence.. What was
for Hitler is not right for
changes by
wrong
Jt
Stalin.
America
may
too late, for
Stalin's plans,
be
alter
to
although that is not yet certain.
we need not underwrite
At least
them.
In spite
in
of what Stalin is doing
.
the Baltic States, Finland and
Poland, he is in far the best posi¬
tion to dominate most of Europe.
His
is
most
the greatest country, the
strategically located, with
■
■
the most natural resources. What¬
ever
may
be the faults of Russian
Communism,
it
is
at
from the racism which
least
curses
English speaking powers
Poland,
unless
Stalin
he
or
his
blunders
freg
the
Despite
successor,
badly,
will
,
.Volume 160
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4328
have Pan-Slavic support.
Speaking
He has
absolute obedience of the in¬
the
ternational Communist movement >
•
/
for
V -
and
trade
'
In the Far East he is tempora¬
,
'
■
derstand that
we
shall not under j-
there
or
London's power
Latin
write Moscow
politics.
which will, not die with the
ger
•
was
some
Nazi danger" in
America,-but the real dan¬
'
:
whose influence in the Civil Ser¬
vice at
bor
Washington and in the la¬
union
movement,
while less
than Martin Dies imagines, is far
greater, than the professional lib:
erals will admit.
.)/
In
western
Europe, Stalin will
appeal because he has not had to
bomb their cities
children to
ade.
He has
for such
a
reduce their
or
hunger by the block¬
no such responsibility'
mess
as
Roosevelt has
helped the British make in Italy
under AMG.
Already the Com¬
munist Party is the strongest sin¬
gle party in France and its press
is playing up the Soviet role while
it
cries
down
the
British
and
American contribution to
French
liberation.
Stalin's
This
rise
of
power
and' influence
in
cannot
be
•
Europe
counteracted by force.
It need not be aided by the kind
of blundering of which the British
rily, but only temporarily, appeas¬
ing the British Empire., He has
,
declared
not
intentions
his
to¬
a
cartel of British
rivalries
between
the
or
to
of
mother
of
to examine other
imperialism
war.
If
not
the
as
our
lated
ests.
be
time
them
and
for
to
to
appeal
ored
..
.
It is
and
a
I
•
tragedy for the future—
so
strong a word
that not Roosevelt,
but only myself, is
these
basic
issues
which our own, our children's
our
ad¬
not
dis¬
—
on
and
children's children's peace de¬
pends.
A choice between Roose¬
velt and
merits
or
Dewey
at
race
home
Intermediate
concluded
Dunn, New York
consolidated
debentures
bentures dated
of
Aug.
1,
placed
Nov.
1, 1944, and
1945.
at
together
Both
with
cash
Nov. 1, 1944.
the
total
As of Nov. 1, 1944,
amount
of
debentures
outstanding will be $269,915,006.
well .developed than once you had
hoped; you will be voting for
Mastic
stark imperialism disguised as a
phony internationalism. Only by
the greatest effort will we be able
Asphalt Looks Good
Mastic
Asphalt
Corporation,
manufacturers of patented prod¬
American. imperialism,
militarism as the result of ucts to accomplish proper insula¬
avoid
to
and
tion
proclaim to all the world
post-war prospects according to a
Administration's
gram
its
was.
south
most
good
foreign
policy
neighbor program
of the Rio
of those
Grande.
The
fit for peaces
a
pro¬
:
j
of
buildings, has interesting
bulletin issued
thing you can do isjto
begin that effort by voting Social¬
ist.
But in
countries
Co.,
York City.
by Amott, Baker &
one
The size of the Socialist vote
Inc.,
suspicion
of Yankee imperialism is growing
will count in Washington and on
ing
again. Too much American friend¬
public, opinion.
It will be a factor
creating that new political re¬
alignment which is essential to
democracy as well as to prosperity
tabulated
upon
and peace.
150
Broadway,
& Co.
been
help
a
bribe to
the
to
bulletin,
which
comparison
in
have
money
dictators, too little
people.
Doubtless
contains
of
with similar products, may
PHILADELPHIA ELECTRIC: COMPANY
DATED NOVEMBER 1, 1944
DUE NOVEMBER I, 1967.
PRICE
ACCRUED INTEREST
100% FOR 1974 SERIES BONDS
'
OF THE PROSPECTUS
OFFER THESE
BONDS
ACCRUED
PLUS
MAY BE OBTAINED FROM
IN
INTEREST
ONLY SUCH
' :
<
OF THE UNDERSIGNED AS
THE FIRST BOSTON CORPORATION
LADENBURG, THALMANN & CO.
HALSEYi STUART & CO. INC.
'
LAZARD FRERES & CO.
LEGALLY
MAY
COMPLIANCE WITH THE SECURITIES LAWS OF THE RESPECTIVE STATES.
MELLON SECURITIES CORPORATION
GOLDMAN, SACHS & CO.
QUE NOVEMBER 1, 1974
100.50% FOR 1967 SERIES BONDS
PLUS
COPIES
LEHMAN BROTHERS
-
r
--
STONE & WEBSTER AND BLODGET
INCORPORATED
.
I
UNION SECURITIES CORPORATION
EASTMAN, DILLON & CO.
LEE HIGGINSON CORPORATION
'
'
GLORE, FORGAN 8cCO.
Fi S.+MOSELEY 8c CO.
,y
J OCTOBER
20, 1944.
,
*
W. C. LANGLEY & CO.
PHELpS, FENN 8c CO.
.
L. F. ROTHSCHILD 8c CO.
*
E. H. ROLLINS & SONS
.
hi.
SALOMON BROS; 8c HUTZLERSHIELDS 8c COMPANY
'
-
BEAR, STEARNS & CO.
A. C. ALLYN AND COMPANY
INCORPORATED
BLAIR & CO., INC.
f
$65,000,000 23A% SERIES DUE 1974
$65,000,000 :2%% SERIES DUE 1967
'
.
•
a
Mastic
be had
request from Amott, Baker
6FFER OF THESE BONDS IS MADE ONLY BY MEANS OF THE PROSPECTUS.
REFUNDING MORTGAGE BONDS
New
Copies of this interest¬
$130,000,000
PRICE
re¬
$44,155,000 of debentures due
ISSUES
DATED NOVEMBER 1, 1944
pro¬
funds
Roosevelt's failure to develop and
AS A SOLICITATION OF AN OFFER TO BUY ANY OF THESE BONDS. THE
FIRST AND
issues
The
par.
THIS ANNOUNCEMENT IS UNDER NO CI RCUMSTANCES TO BE CONSTRUED AS AN OFFERING OF THESE BONDS FOR SALE. OR AS AN OFFER TO BU Y, OR
NEW
dated
$1,785,000, will be used to
tire
tensification.
If
you
vote
for
either you will not be voting for
an
internationalism a little less
by
fiscal
$23,685,000 0.90% consolidated de¬
ceeds,
ployment, but-rather to their in¬
Banks
week
Nov. 1, 1944, due May 1, 1945, and
were
The policies of both
of them point to no solution to the
twin problems of war and unem¬
Credit
last
agent, for the banks. The financ¬
ing consisted of $18,685,000 0.80%
demerits in this field is
meaningless.
bad
our
eral
was
The best feature of the Roosevelt
tq ship and American
type of cooperation;
English At least they can be made to un¬
and
A successful
offering of two
issues of debentures for the Fed¬
due
their relative
on
FIC Banks Place Debs.
Charles R,
use
visedly
Dewey,
cussing
handling of the economic and politicaT problems of Puerto Rico.
their realistic rulef
better
a
■'
.
,
still
Nazi defeat is active tyranny and
exploitation, aided and manipu¬
by powerful foreign inter¬
chil-
.,
,
rfot leave it to
aspects
me
it is .dren, then our grandchildren, will
the suffer from the cruel and irra¬
only man in the world who ever tional exploitation of Africa bygot the better of him, especially European powers. There ought tp
since there is a strong native Com¬ be an African federation of free
munist movement in China.
He peoples,, and
there
should
be
Will probably get into the war international action towards that
with Japan in time to sit, at the end. Those who believe that the
peace table. He has been justified white man has brought nothing
until
now
in
concentrating his but benefits to Africa should be
military force against Germany. reminded that some French au¬
declare
Whether he has been justified in thorities
that
under
all his concessions to Japan is an¬ French rule with forced labor and
the
other matter.
white
man's
diseases
the
One thing about Japan is sure. population of French Equatorial
If Roosevelt or Dewey should be Africa declined to about a tenth
foolish enough to crush the whole of its estimated number in 1900.
Japanese people, and if the old (By the way I stand ready to
this and every other
power
politics
game
goes
on, document
Stalin will be* the only winner. statement I have made in this
He can, if he wants, pose as a speech.)
j
friend of the Japanese people, and
We Americans cannot afford to
at the same time profit by their be self righteous. We have to our
elimination as a power in eastern disgrace our treatment of the col¬
■■
and American oil interests
Time fails
wards Chiang Kai-Shek but
doubtful if he,: will forgive
with some American support are
guilty when they try to restore
private capitalism and the status
quo in western Europe, and pro¬ Asia.
These things need never have
pose plans for Germany which, as.
Dorothy
Thompson
has
ably been if Roosevelt from Pearl Har¬
pointed out, play directly into the bor onward had quietly insisted
hands of Stalin and the Commun¬ on a program fit for peace. Stalin
is, above all, a realist and wants
ists.
his country to recuperate.. The
In the Middle East Stalin's plans Russian people have no reason to
a
are, at this distance, less obvious. love
costly imperialism; they
But it is certain that Russia will have plenty of room. There may
.
f
peoples
power.
1807
INCORPORATED
WHITE, WELD & CO.
Thursday, October 26, 1944*
THE COMMERCIAL & FINANCIAL CHRONICLE
1808
ment does not
Cartels-A Program
Canadian Securities
this subject of international busi¬
Provincial
Government
in conjunction
the industry branch of the
agreements,
ness
with
Public Utility
Municipal
Wires to Toronto &
Direct Private
Office of Economic Affairs of the
Department of State.
Montreal
only recently
written a letter to Secretary Hull
on
the subject.; The publications
dent,
Wood, Gundy & Co.
of
Street, New York 5
do, to call
the subject cartels — is receiving
widespread consideration, study
of the SEC to the effect that drafts have been
CANADIAN BONDS
importance and significance of -
will
scratched,
been
war,
it is
highly probable that the Cana¬
dian
issues
new
here,
will
list
acquire
an
that
of
similar
importance
to
the "Kaffir" group of the Lon¬
don Stock Exchange.
During the past week, the mar¬
ket
a
slightly more active with
was
firm
undertone.
1960/50
ground
at
of
issues
ferings
into
llOVs and
struck
continued
demand for
all
were
4s
Canada
of
high
new
there
was
high-grade
of¬
maturities. Few
forthcoming in con¬
nection with the Seventh Victory
Loan
lem ;
drive and the supply
prob¬
is again becoming acute.
There
ternal
was
little activity in in¬
tional
bonds, but there was addi¬
evidence of increasing in¬
terest
in
the
shares
of
Canadian
mining companies. The Canadian
dollar in the "free" market after
weakening
10%%
to
rallied
to
you can gen¬
,
who eats is
%% discount, and the turnover
surprisingly small in view of
the anticipated
lapge offerings of
exchange in' connection with the
bonds
called
and matur¬
ing Oct. 15.
It is possible that holders are
delaying their sales in
avoid
to
the
an
experience
effort
on
a
similar occasion during October
of last year when, after
declin¬
ing to 12*4%/the rate strength¬
ened rapidly
their
to 10%
offerings
were
as
soon
as
absorbed.
Turning to possible future de¬
velopments, now that the Seventh
Victory Loan campaign is in full
owing, there is little likelihood of
any
great market activity, but
prices should be well maintained
as
there is a persistent demand
tor high grade issues which is in¬
creasingly difficult to satisfy.
A welcome
be
much
event that may not
further
delayed
is
an
announcement
concerning a def¬
plan for the reorganization
inite
of the Alberta debt.
it
is
difficult
to
The fact that
secure
ex¬
glutton—at least
a
potentially./'■
internal
be
This school of thought,
'generally, also seems to go on the
theory that any one who touches
alcohol is a drunkard, or that any¬
NY-1-1045
The
"jV-'%■' £■.
school
other
thought, at the
to feel that
of
extreme,
seems
■'>,
$100,000
Province of
::
,
,
Quebec
4s, due Feb. 1.1958/53
Payable in U. S. and Canadian funds
Priced at 108% to yield
2.85% to 1953
of
through
commodity
agreements, with the attitude of
other
government
departments
that there should be no /restric¬
surpluses
agreements'."
tive
words, along the general
trend of thought that "you" —
meaning government — "can't
do
;hat
me"
to
—
the
all
it's
while
being done. It is in the more rea¬
sonable realm of thought between
these two extremes that the opin¬
ion is ventured that there are al¬
definitions for the
word "cartel" as there are people
most
as
many
considering the subject.
There-are "good" cartels; there
are
"bad"
cartels.
And I note,
of
control
"International
64 WALL
&
Company
STREET, NEW YORK 5
WHitehall 3-1874
control of
a
surpluses,
they must
export up to 50% of their national
if
production,
they
Grave differences of
are to live.
opinion must
if we,
confidently anticipated
try to impose our
philosophies across
national borders
and especially
by
means,
any
economic
own
when
tels^ who do not, themselves, have
to wrestle with the practical solu¬
tions of the problem of surpluses.
You may take it from one who
has labored in the vineyards of
discussions
many
subject
on' the
of Cartels, on the non-governmen¬
tal side, that there are a grand
and great
variety of differences of
the subject, existing
within private enterprise — runopinion
! of
on
what
cartel
a
what
and
is
should be done about it
—
ment
we are
home.
but of
whether private
in agree¬
even
philosophies
at
found,
at
Remember
we
time, in this country, how
difficult it was for one sec-'*
one
very
tor of domestic
its
not
these
on
That
opinion td impose
special philosophy on an¬
own
of domestic
sector
sur¬
pluses" is of course the boileddown justification for any cartel
agreement,.— a point which might
at least be kept in mind by those
interested in the subject of car¬
at
was
opinion.
time when another
a
"experiment,
purpose,"
in
noble
tried out and later abandoned
was
with the repeal of the
prohibition
laws,
because it just would not
work. Let us not, with the certain
knowledge
that
different
eco¬
nomic bases existing abroad will
not permit acceptance of certain
of
views
our
on
this
question of
cartels, try, on; an international
scale, to impose another passing
national philosophy on other sov¬
ereign nations,
even though it, too,
purpose." What can
gain by either trying to impose
be
"noble in
we
ideas
our
on *
international
trade
other
nations, or as an alterna¬
tive, refusing to participate with
them in such trade. Trying to im¬
on
enterprise should
pose our philosophies will almost
express any opinion at all
surely result in bad blood., /'Re¬
about cartels, as a matter of policy
fusing to participate" is just what
—apparently on the general the¬
we shall do if American industry
ory of why should one stick one's
is not permitted to join in inter-,
neck out—and if so, when would
national trade under the rules.ac¬
be the propitious moment to do
cepted by other nations, as sound,
so.
The general opinion on this
and in the national interest, or at
latter point seems to be that it
least, as in Britain, as just quoted,
should better be postponed until
even
that tomorrow which never comes,
general principles.
Is this subject of cartels as im¬
just
to
think
it
v
it,
may
would /indicate?
be
of even more
importance than we dimly foresee
this
policies
time., What our national
are going to be on this
controversial
subject, will almost
certainly shape not only our for¬
our
ture
this war-weary
;-%v''-yj-y'iLet me quote from the financial
page of one of the recent issues
ftpace
of
world.
.v'1.. >
which
New; York newspaper, which
a
is
an
has
that
evil. •;
the
background
been briefly sketched
consideration
being
places by; so
many people has something of the
aspect of that cavalry regiment
that was reported to be charging
many
in all directions at
that the
places, by
once.
I submit
much"
consideration
given
"so
being
now
in
so
many
people to this
extremely important subject, has
so, many
something of the aspect of being
motivated largely by desire to ad¬
individual opinion and per¬
prejudice, and not to seek
what is good—and good sense
vance
sonal
out
.
of
as a necessary
submit
in these remarks indicates that the
one
about
ion
at
I
to us, as a nation,
"so
much"
us, as individuals, as the
and differences pf opin¬ given in so
a
interest
I
accepted,
on
from all
—
sources
available. Pri¬
vate
enteprise engaged in foreign
trade can well afford to recognize
and indeed must recognize —
that any selfish opinions on this
subject of cartels can not receive
and actually never will receive
—
outspoken supporter of the
administration in Wash¬
ington, in reference to the possible
effect of our policy on this subject
acceptance.
Government,
of cartels, on our national rela¬ public
tions with Britain.
I quote: "De¬ in this country should recognize
present
and indeed, in the long run,
through the force of public opin¬
—
creeping into the nomenclature on
-;he subject, the words "restrictive
cartels"
—
which
distinction
some
"restrict"
:hat
and
•'don't restrict," —
ence
that a cartel
draw
cartels
cartels
that
with the infer¬
that
does
not
might even be a "good"
maybe! The only trouble,
restrict
cartel
to
seems
between
—
here, is, who is to decide whether
a
cartel is really restrictive, or
not.- And
is
on,
Start out with this lack of com¬
acceptance of the definition
and, inevitably, the
great differences of
opinion and confusion of thought
on the subject.
cartel,
a
That
there
opinion in
quote from
a
the New York
"It is
differences
cartels
about
ments
by
are
governmental
now
a
of
depart¬
indicated
is
recent issue of
"Times,"
as
British
follows:
anticipated that Sec-
fact that
friends
language
war
with
and that
a
we
speak
us
our
common
we're in this
goal,
common
breach between
and
a
on
the
fundamen¬
tal, key economic issues is grow¬
ing wider by the day — and if
we are to avoid tragic misunder¬
bitterness, it
is
and I woke up and
faced this nasty truth.
standings
and
about time you
"We
all
again!
over
precise
the argument
the
spite
don't
agree
on
the
pro¬
priety of cartels and the whole
concept of private business agree¬
ments
designed to
divide world
markets, restrict production, reg¬
ulate
competition and fix prices.
information
the
on
this
fact that the
subject
Premier of
berta, Mr. Manning,
tice
Department are fighting for
their destruction."
issued.
and
tion?
Al¬
the recent comments
I hope so, but
when I read
in a London
again in daily, and in Parliament, about
Toronto last week make it abund¬ the reported visits of American
antly clear that a public state¬ business men to Paris, I wonder.
must
soon
be
tribute
welfare
greatly
—
to
the national
and, indeed, to inter¬
national
is
welfare, as well — if it
brought into governmental con¬
siderations
on the subject not as a
suppliant, with.hat in hand, not
as
a
malefactor
potential or
otherwise, whose opinions may
only be considered, with great
—
suspicion,
even
ment
was
ment
ion, will recognize—that private
enterprise with its long experience
in matters affecting foreign trade,
in its practical details, can: con¬
but as a full-fledged,
if junior partner of govern¬
—
and with the full obliga¬
"Or °again,- to
put it more
tions that go with such partner¬
bluntly/ while England has indi¬
ship — which,
too,
as
well
as
cated with dramatic clarity that
government, is sincerely interested
at worst, she considers cartels a
in the national welfare.
This na¬
necessary
evil in her economy,
tional policy; as is well
known, is
President Roosevelt and our Jus¬
Are these remarks an exaggera¬
Taylor, Deale
competition
unregulated
and lack of
other
degree our political relations with
present friends of the United
Nations and even perhaps the fu¬
other
mon
.
control
international
favors
eign trade relations but to a great
not
which
would be ruinous; that
so
interfere—in
should
result must be
-
De¬
Agriculture,' which
of
outside the twelve mile limit, gov¬
ernment
of
We offer:
;
reconcile, the view of the
partment
and
should
and
-rr
been
has
dif¬
than
we
have in this country.
Recall
that many of these nations haye
restricted
domestic
markets in
economic atmosphere
—
to
under the cate¬
comes
recommendations
final
word
RECTOR 2-7231
Stock
gold section of the
Exchange
as well
partici¬
any
—
greatest difficulty of the
committee in making
that
10
register
"The
Remember that these other
ferent
be
executive
tirpated.
N. Y.
was
in
America,
And
of 'conserva¬
agreementj ning the gamut of opinion not only
the interests of the
in
one
displayed
particular
purposes
,v.:,
portant
Northern
Canadian golds in this country,
The
petroleum pact with
Britain,
when they
are
tion.' ;
of cartel, in the bad sense of
trail.
but should it become possible to
of
recog¬
the
for
NEW YORK 5,
it is ru¬
mored that the Bank of Mont¬
con¬
States
is not in the interests of the
actions'
and
always been
as
gory
Canada and the Bank of Toronto
real is also taking the
tional
such
while
the propriety of interna¬
commodity
agreements,
TWO WALL STREET
of
Bank
Imperial
United
the
of
enterprise in this country, with a
private enterprise in a foreign
country — down almost to. the
level of buying and selling trans-*
INCORPORATED
thousand, already three banks,
Canadian
Bank
of
Com¬
interest
uni¬
One
.'argument on that
/
'
in this country seems
to feel that an agreement of al¬
most
any
kind between private
A. E. AMES & CO.
the
has
not broad ac¬
are
One group
development when the popula¬
There
as
foreign agreement—cartel,
light in
point.
CANADIAN STOCKS
tion of Yellowknife is less than
siderable
is,
erate considerable more heat than
Even at this difficult stage of
the
cartel
a
cartels.
to
pating parties.
Negus, Ptar¬
Thompson Lundmark
production be¬
compelled
established,
that there
or
as
district in the post-war period.
are
many
the
That statement does not-
United States of
will play a still more
important part with the inevita¬
ble
growth of the Yellowknife
merce,
as
point'of difference
opinion, here, is of course, on
is
CORPORATION
their closing,
a
almost
people considering
are
whether any
difficulties
labor
obviously is
answer
are
cartel
word
the
otherwise—which is not in the
of
MUNICIPAL
which had been in
fore
The
There
America.
Moreover, the mines in this area,
migan and
"no."
interests
PROVINCIAL
there; will be many discoveries of
the order of Giant Yellowknife.
suchias Con, Rycon,
what
means?
or
return, to
after the
conditions
normal
just
only
with a
and
of
;
of any
production.
gold
has
surface
The
/
GOVERNMENT
Northern gold fields
contribute largely to Cana¬
post-war
tion
reference
new
da's
a
no
increasingly clear that
It seems
these
going on;about cartels, is there
common acceptance of a defini¬
versally accepted principle is that
one will say that he is in favor
developments.
these
discussions that
ceptances of general principles in
real
This has detracted from the
if not agreement.
—
are
mean
worth.
dubious
of
I
as
all of these
In
subject;
mushroom
flotations
and attention
there
brought in their
growth of
have
a
please,
you
definitions of what
of the North West Ter¬
ritories,
wake
or,
—
cartels'
'restrictive
nizing
made
if
Yellowknife »
the
in
pected, will recommend an end to
Great
tional Business Agreements
prepared of "a new simplified form for the registration of shares of
mining corporations under the Securities Act of 1933" opens up new
vistas for Canadian mining companies.
•' %■/..
Already there are boom conditions in the Canadian gold- '
mining section, but unfortunately several spectacular discoveries,
district
the executive com¬
mittee's findings which, it is ex¬
are
The public press carries
daily, some feature com¬
ment on the subject. You must ad¬
mit that the subject of Interna¬
By BRUCE WILLIAMS
especially
American universities
our
almost
Canadian Securities
The announcement
has
the President,
subject.
London, England
Vancouver
Winnipeg:
Montreal
Toronto
himself,
our
iriendly
nations live and work under a
retary Hull will shortly.,report to
full of serious, informative statis¬
tical and analytical articles on the
Incorporated
14 Wall
The Presi¬
a greater*
relations
United Na¬
apply to
degree to
other
tions.
(Continued from page 1795)
-
lesser
or
with
I
wonder, too. if this type
of corn-
followed to
the oublic
benefit of
all
segments of their societies, by
other nations with great and long
experience, in international trade.
During this war, under the
auspices and direction of govern¬
ment, the best scientific brains of
the country have been marshalled
to
focus
attention
on
specialized
Volume 160
THE COMMERCIAL & FINANCIAL CHRONICLE
.Number 4328
intimately
of the
war.
Outstanding and astounding
—and I speak with due restraint
engineering
problems
connected with the winning
.
—
have
results
method of delegating special problems to specialized attention and
These
study.
problems, with the
of military necessity for
finding the answers to them, un¬
der
this ^ technique
have
been
tackled without thought of per¬
sonal-opinion or prejudice, but
with the sole desire to come to the
pressure
correct
conclusions
and
answers,
quickly and accurately. Are the
post-war problems — I ask you —
in the economic field of
with
tions
rela¬
our
about them?
do
Well
foreign neighbors,
to be of any lesser importance,
than these war-time problems in
the military field? -Must govern¬
our
:—
^
'
and what to
\
if it is, then, may
least
r-
American
that
should
arrive
clusion
itself,
industry,
as
ing
on
at
con¬
common
a
regards its own think¬
this subject of cartels —
In¬
and what to do about them.
stead
industry hav¬
of American
ing 100 different groups — trade,
technical and engineering associa¬
ferent conclusions and answers
it be asked why
should not
the
same
technique
that has been employed in tack¬
may
ling these scientific and engineer¬
would
it;not
be
more
practical
and
the
on
ject of cartels from its
to
tackling
problems
timately
connected
connected
economic
the
delegate
much
benefit
to
suggest
group
of the whole
and
in¬
house jof American
the
COUNCIL
maintenance of world peace.
too
mittee
delegates
or
—
that
Is it
DUSTRY
great
would
same
the
might result if this
the
of all seg¬
industry.
and
Its
con¬
Such
could
mendations
should,; be
definite
of
phrases
recommendations.
recom¬
and
broadcast,
and
an
will
will
of
to a
wise,
think
the
' t -r
:
cannot
or
Industry,
other¬
or
consider
collectively
and
through to the correct an¬
swers on
with
in
not, through such a Council
American
this question of cartels—
the
interest
public
foremost in mind
always
and, then
—
dertake, with one voice, not
voices, to
its honest
express
ing
the
were
correct
followed, In seek¬
solutions
to
this
individual
$65,000,000 each, One series maturing Nov. 1,
The
mercial,
—
economic,
This is under
no
underwriting
1967
the
oversubscribed.
been
on
bid
series
98.94888
and
This
submitted, and
was
in
Co.;
Stone
&
Webster
Lehman
W.
C.
Co.;
Fenn
Phelps,
&
let it prepare
Hutzler;
where
it is about to
in silence for what
trade, com¬
cultural
—
what others may
condemn
ment
,
/
Shields
&
banking firms.
gether
from
with
addition
and
000,000
refunding
and
long-term
debt;
-
1
stock,
preferred
mium
shares
or
of
:4
including
$482,210,
of $1
.
and
■
1
A
1
<:
$100,000,000;f gprgf
The American Tobacco Company
Twenty-five Year 3% Debentures
Dated October
Due October
15/1944
15, 1969
Price 101% and Accrued Interest
Copies of the Prospectus may be?obtained, from only such of the undersigned as may legally
these Debentures in compliance with the securities laws of the respective States.
offer
MORGAN STANLEY & CO.
SMITH, BARNEY & CO.
THE FIRST BOSTON CORPORATION
MELLON SECURITIES CORPORATION
BLYTH & CO., INC.
HARRIMAN RIPLEY & CO.
KIDDER, PEABODY & CO.
Incorporated,
LEHMAN BROTHERS
F. S. MOSELEY & CO.
GOLDMAN, SACHS & CO.
LAZARD FRERES &
CO,
UNION SECURITIES CORPORATION
LEE HIGGINSON CORPORATION
T
\
DREXEL & CO.
STONE &
WEBSTER AND BLODGET
Incorporated
Dated October 26,
19//#,
'
-
WHITE,
pre-*-
2,368*943
8,160,287
stock,
common
without par value.
offer is made only by means of the Prospectus.
>.
dividend preference
stock
of
and
or as an
offer to buy, or as a solicitation of an offer to buy, any of such Debentures.: f- f/;
$12,-
preferred
stock; $27,954,210 ($100 par) 4.4%
to-,
for sale,
$130,000,000
2%%. bonds,
subsidiary
common
funds
the
first
subsidiary
&
sale,
of
•
23/4.%. bonds due 1971; $31,866,037
■
the
to
refunding
$20,000,000
White,
Co.;
treasury
circumstances to he construed as an offering of these Debentures
The
in
first
H.
Bros.
;
dated basis will have outstanding,
L. F. Roths¬
Salomon
Co.;
Proceeds
think and do in
the matter.
&
exclusive
interest.
Upon completion of the*financ¬
■ the
company
on
a
consoli¬
Lee
E.
Co.;
$137,800,000,
ing
Blodget,
Co.;
;
Weld & Co., and 102 other invest¬ 'shares
receive, and not un¬
or
quire
accrued
Higginson Corp.; F. S. Moseley &
con¬
child
criticize
&
Langley
Rollins & Sons, Inc.;
to
bonds due 1967.
The re¬
demption will be made on or
Dec. 1, 1944, and will re¬
& Co., Inc.; Bear, Stearns
& Co.; Blair & Co., Inc.; Eastman,
Dillon & Co.; Glore, Forgan &
ously and without hedging, then
dertake
3%.%
about
Allyn
Co.;
$4,000,000, will be
by the company to redeem,
the $130,000,000 outstand¬
106
ing first and refunding mortgage
Brothers;
and
clusions and convictions, courage¬
the
approved
Inc.; Union Securities Corp.; A. C.
a
of
used
:v.
&
—-——:—•
not in excess of
at
underwriting
group
with
Mellon
Securities
Corp. and The First Boston Corp,
are:
Goldman, Sachs & Co.; Halsey,
Stuart & Co., Inc.; Ladenburg, Thalmann & Co.; Lazard
IN¬
—
for
the
Freres
—-—
proceeds of short-term bank loans
the only
was
A
by the SEC.
Included,
won^
group
bid of 99.44888 for
a
the 1974 series.
un¬
100
1967, being priced at
1, 1974, offered at par.
The
IOOV2, and the other series, due Nov.
which
—
conclusions
groups
Corp.,
the issue
a
as
exercised
;
headed, by the Mellon Securities Corp. and The First
as joint managers, offered Oct. 20 $130,000,000 first
refunding mortgage 2%% bonds.
The issue is in two series of
group
issue has
'
procedure
A
/■'
Boston
then,
not
If American industry
upper
forum
a
be
public interest. /<;!; A
com¬
industry
if you
constitute
ideas
—
—
a
to
ligation,
par¬
AMERICAN
OF
—
-—
Group
Dispose Of $139,000,000 Phila. Electric Issue
and
ticular viewpoint, decide to name
with
—
—
own
Mellon Securities And First Boston
express
considerations
unequivocal
each considering this sub¬
single, over-all
plied
American
clusions could be implemented in
100 individual
do not all of these
groups,
winning of the
ap¬
Why, then,
subject?
ing problems connected with the
be again
over-all
a
a
war,
of
a
Industry
—
ity,
then,
could well be said to
statesmanlike thinking
ments
such
of
American
of
economic
and
cultural
right of American industry to ex¬
chambers of commerce, et
cetera, — all
considering
and press its opinion, undertaken with
studying this subject of cartels — trepidation as to possible retali¬
and all coming up With 100 dif¬
atory consequences, but as an ob¬
on
If not,
Council
groups,
of
industry, in the handling
these economic problems, sit
opposite sides of the table, eye¬
ing one another with suspicion?
considered, discussed and
tions;
less confusing if there were
single group which could prop¬
erly presume to speak for all of
American industry, with author¬
ment and
could be
resolved? ! Conclusions
,
I at
suggest to the members of
Foreign Trade Convention
this
this
from
come
problem of cartels
1809>
WELD & CO.
both
THE COMMERCIAL
1810
sible
In Distribution
;
(Continued fi
establishments
have
been
derized
and
retail
stores
and
streamlined
down almost to
an
slen¬
indis¬
first page)
om
anything
have
we
This
fore.
ever
the
is
be¬
seen
that busi¬
job
must do.
ness
The part that distribution must
play in the creation of post-war
tising and selling in our schools prosperity may be suggested by
and colleges have
dwindled or the increases in sales that must
disappeared.
There are reports be secured by retailers.
In pre¬
from all parts of the country that war years
retail sales averaged
there
relatively
are
few
young
people who are thinking of going
into selling as a career,
Selling
has not only grown soft, it has
for the most part become non¬
from 55% to 60% of the total
tional
income.
na¬
Thus, in
1939, as
total national income of
against a
$70.8 billions, retail sales amount¬
ed to $42 billions, or 59%,
With
existent.
the sharp increases in national in¬
Now we face a new prospect. come resulting from the war and
The end of the war is approach¬ the greatly extended use of gov¬
ing. Business is going to have to ernment credit, coupled with the
change over to production and shortages of consumer goods, the
civilian
for
distribution
markets
ratio
declined.
sales has
of retail
of selling to
instead
the govern¬ In 1943 it amounted to but 50%
ment.
Production for peacetime of the national income.
If retail
conditions depends upon selling. sales in the post-war period were
Grain on the farms, textiles in the to regain the same ratios to na¬
mills and household appliances in tional income as in the pre-war
factories,
are
meaningless
and era, then retail volume(will ex¬
wasted unless ultimate customers ceed $80 billions a year! The larg¬
can be found for them.
If we are est amount ever registered in any
to regain and maintain peacetime
pre-war year, in 1929, amounted
prosperity we must have selling, to just under $50 billions.
and a lot of it.
Sales organiza¬
It may be ' assumed,
however,
tions
ed
rebuilt.
be
must
afnd
Men
must be found and select-4
women
have
who
ambitions to
and
They must be
the
aptitudes
sell.
in¬
spired to do this essential work.
They must be paid, coaxed and
driven to accomplish more than
indoctrinated,
has
great
and
and
marketing
face
a
responsibility.
The distri¬
age,
long discussed and
'
forecast, is at hand.
Let
Dis¬
been done before.
ever
tribution
bution
trained
selling
what the job
see
us
V
must
do.
task of private
The
is that
post-war
business has been
well described by the Com¬
mittee for Economic Development.
draw
ble.
Business must build *a pros¬
perity based on full employment.
To accomplish this, every factor
of industry and distribution, every
income
national
the
in¬
expended
percentage
through retail stores may decline:
Taxation, for example, will take
a much larger share.
There may
also
be
proportionate increases
absorbed by non-retailing chan¬
nels, such as for services, profes¬
sional fees, entertainment, travel
and so on.
Certainly, however, if
national
the
peacetime
reaches
income
of $140
level
total
than
billions,
should
trade
retail
a
be
billions, and
more
probably $75 billions, as
against a total of $46 billions in
not
less
1940,
$70
$50
and
billions
back
1929."
the reports of that
upon
organization for my information.
The job is to convert' from war
to
peace
economy
as
quickly,
smoothly and effectively as possi¬
the
as
creases
the
very
I
that
in
-
this volume of sales be
Can
ef¬
fected by our. distributive system?
In
opinion,
my
and will.
it can
Certainly,
however, it will re¬
quire much,more than usual ef¬
There
fort.
the will to
be
must
There must be the desire to
exercise
foresight and to make
try.
extensive plans.
There must be
retailer,
the willingness to venture and to
and every sales and advertising
take risks.
There must be ade¬
employee must do his part. Those
quate rewards and honors
for
who sell are to the future of busi¬
wholesaler
ness
and
what
the
every
the
and
marines
paratroopers are to the army and
navy in the present war.
The CED has indicated that fol¬
lowing
work
the
war
there
opportunities for
000,000
must
some
be
57,-
There must be
persons.
a
national income of from $135 bil¬
lions
to $140 billions, based on
purchasing power, to main¬
tain such employment.
This in¬
come
will provide the purchas¬
ing power
to raise
and
keep
our economy at a high and pros¬
perous level.
This amount, how¬
1940
those who succeed.
To
this great pur¬
pose business needs to be freed
of
unnecessary
burdens.
There
may not be too many slackers or
free riders within the system it¬
self. The grinding,
burning brakes
regulation, so tre¬
mendously extended during the
war period, must be lifted or we
will not go very far. The tax bur¬
den needs to be lightened,
It is
futile to expect any return to the
of government
ever, is only slightly less
than
the present national income stim¬
ulated
new
by
ment
production and
largely by
govern¬
purchases
on
borrowed
funds.
It is greater by more than
war
50% than the largest national in¬
come
that we ever had in any
peacetime
year
try into the
The
preceding
our en¬
will
pre¬
portantly, taxes need to be stabil¬
ized!
The full faith of the nation
in
institutions and its
its
ment
the
an
may
again
be
govern¬
regained
if
government will get back on
even keel and live within its
has
clearly and
The
phatically indicated that this in¬
foster
level
taxation
high tax rates, if continued,
strangle efforts to extend
business.
Even more im¬
em¬
come
of
must be
reached
and
trial
inequities
legislative
rather
than
that
indus¬
reduce
found in the
exceeded, or this nation will again National Labor Relations Act, and
be plagued by unemployment and the
Wage and Hour Law, need to
depression, with its accompanying be drastically corrected.
If em¬
threats to our economy and pro¬
ployers are to be encouraged to
posals for the substitution of Stat- extend employment they should,
ism, Socialism, Communism, or at least, be accorded the same
some other totalitarian system.
'
rights as employees and their
The gravity of the job to be unions 'in the settlement of com¬
done is further enhanced by the mon issues.
The 40-hour work
degree of. inflation that is occur¬ week with its penalties for over¬
ring and , has already occurred, time, never
justified even in the
amounting to at least a 40% in¬ serious years of*depression, is now
crease
since 1939.
The require¬ likely to become a heavy mill¬
ment
of
a
income*:, of
national
$135 billions at 1940 price levels
must
be
restated
$150 billions
These
must
at
figures
be
duction
a
as
as
in
excess
of
1944 price levels.
that
mean
tfthre
greatly increased
well
as
greatly
creased sale oh civilian
goods
pro¬
in¬
over
before
It
to suppose
it
portion of these married couples
that
strife, such
as
stone around the neck of
industry
of our
is
a
strong probability that American
industry, all branches considered,
can
not produce enough under a
40-hour work week to supply the
seeking
the
economic
advancement
society.
nation's needs.
There
There
is
no
pos¬
large
a very
pro¬
will be entitled to them. The
farm
will be a big one;
market
our
wage
local
occupations, is another meas¬
There have been about 12,000,by well - meaning 000,000
children
born
in
this
people who simply haven't thought country since 1940, of which at
through to the mischievous ef¬ least 2,000,000 are in excess of the
fects of this proposal.
It is in¬ normal birth rates in pre-war
supported
evitable
that, in the post-war pe¬ years.
You can be sure that the
riod, after the government ceases parents of these children will use
to pay the bills for employment, their
savings and make their best
the whole minimum wage pro¬
special efforts to provide the ordi¬
gram will prove a serious obstacle nary necessities for these children
full
to
employment
and
quently to prosperity;
evils
The
of
conse¬
shop
the
future
There
is
there
menacing obstacle
and pros¬
time
the
anyone
nor
for
millions
families,
new
of
old
homes
rebuilt, repaired,
re¬
there
who doubts that the de¬
automobiles, tires and
automotive
equipment is
other
certain to be
It must be clear to those who will
of economic progress.
Be¬
for
mand
the place for a discussion
of the merits of these imperatives.
they stand in the
abnormal need
modeled and modernized. Is
this
think that
are
that must be
growth
neither
an
are
h;
:y.
nishings needs
perity of this country.
is
regulations
yond the housing and home fur¬
method of the strike and the lock¬
to
war
for replacements of all kinds.
important of all, the destructive,
brutal, primitive, if not moronic
a
the
Then there is
need correction. Finally, and most
out constitute
as
soon
lifted.
,
clds^d
the
as
unprecedented?
The
wants for radios, refrigerators and
other ' household
appliances are
way
It is even
tail store
have been made in
If there is now a re¬
in this country that does
not need
considerable reconstruc¬
repairs
sary
recent years.
modernization
and
tion
im¬
to
its sales efficiency, I have
not seen it, nor have I heard Tof
it.
There exists a tremendous po¬
tential demand for new buildings,
prove"
fronts, new floors, new lay¬
new
condition¬
outs, new fixtures, air
ing, refrigeration and other kinds
of equipment.
When the war is
over, when materials
and labor
become available, we are likely to
the most extensive program
see
of
retail store construction and mod¬
this
that
ernization
ever
that
there
will
be
has
country
There is
known.
no
no
danger
de¬
such
is that
there will be' a run-away demand
and that it may be over-done.;
The
mand.
real
is
What
danger
retailing ,r is
of
true
probably equally true of wholesal¬
currently held in check like tight¬ ing, warehousing, transportation
eco¬
ened
steel
springs waiting for and other institutions responsible
well-being for which we
post-war release. Some companies for the distribution of goods. The
all hope can be achieved if these
are
already doing a sizable busi¬ plants and equipment of all -of
legislative evils are continued.
these institutions need extensive
ness in offering deliveries of these
There are, however, other con¬
goods as, if and when they are rebuilding, remodeling and mod¬
improbable that the national!
nomic
ditions that favor the achievement
of
post-war
available.
Customers
are
actually
prosperity.
estimate
the free enterprise system
tions
will be
Factors
contributing to obso¬
given a fairly free and open field
lescence in consumer goods. There
in which to begin its work.
In re¬ is also the
prospect that the dis¬
cent years the people of this coun¬
coveries of numerous new mate¬
try have learned; and are still
rials and processes coupled with
learning a great deal about the
the application of new and more
conditions of living under the va¬
attractive,
artistic
design, will
rious
system
of
totalitarianism.
render much of present consumer
What they have learned has made
goods and equipment obsolescent.
most of them rather glad to con¬
Houses must be repainted and re¬
tinue to live under the American
furnished inside and out.
Apparel
system of free enterprise. For the
will appear in new styles making
present, at least, the voices of the
wartime necessities seem ridicu¬
proponents of state socialism, fas¬
lous. There will be
cism and communism are not very
loud.
has
American
made
brilliant
a
excelling that of
war
record
other sys¬
tem and country. With fhe utmost
good-will
and
even
gratitude
American
every
citizens
are
give private business
show what it
can
a
eager
cal
a
psychologi¬
advantage that is highly im¬
portant.
will
I know that most of you
that the cessation of
agree
foods and
and
,
enormous need for
refurnishing fac¬
the
this
of
favorable
post-war
lished
to
immensity
So much for the condi¬
to an expanded
program,
the
demand. Once estab¬
next problem will be
'Vvv
maintain it.
the
in
Changes
Channels
.of
Distribution.
Many people
are
wondering whether the post-war
period may bring any startling
changes
the
in
;
distribution' of
So far as I can see there
not likely to be any revolu¬
goods.
are
tions
in
either
channels
the
or
methods of distribution.
The
wholesaler-independent
sys¬
made extensive
and remarkable gains during re¬
tem,
which
has
likely to hold its
cent years is
and
continue
should
to
own
parallel
the growth of future distribution
of
In spite of the rise of
goods.
chains, mail order houses and de¬
are
not, of course, confined to partment stores during the; past
consumer.,goods. There will be.a generation, the independent retail
post-war demand for capital goods store business is represented to¬
of
every ../■ possible
description. day by more retail stores and en¬
Many factories built in recent joys a greater volume of business
The potentials
tories.
chance to
do for the post¬
This is
as
J Theie is*an
rebuilding
to
•
period.
war
new
well as plenty of
many other items now rationed or
unavailable.
As a result people
will be in the mood to buy.
beverages
private business
It is difficult to over¬
ernization.
First making down payments for prior¬
among these is the likelihood that
ity deliveries after the war.
of demand
propaganda
for
totalitarianism years to produce war goods are
may be but temporary.
The ad¬ undoubtedly up-to-date. Some of
vocates of national planning, cen¬ them are described as models of
tral ownership and control in one efficiency. Certainly this not true
the great majority of plants
form or another will return again. of
consumer
goods.
In
In the meantime, private business producing
than it
ever
had before.
d
Changes may certainly be ex¬
pected" within the various chan¬
nels of distribution.
Retailers'
co¬
operatives, group buying land vol¬
untary chains are likely to have
enjoy this temporary relief many cases such factories are outof-date
and
even, in
advanced
sniping and attack while
They cry
busy in laying the foundations of stages of dilapidation.
out for new equipment as soon as
post-war prosperity.
.can
front
There
certain
are
other
mate¬
conditions which, if
rial
properly
utilized, will, likewise, help the
free enterprise system. There will
be
surplus
consumer
savings
of
additional growth and, more par¬
ticularly, to get down to more ef¬
fective and systematic methods of
doing business.
Wholesaling is
it becomes available.
Millions of destined to further streamlining.
dollars will be required to bring More
exterisive
development in
these industries up-to-date.
cooperative marketing in the pro¬
The
well
of this country will ducer and processing field seem
extensive
renewals
as inevitable.
great quantities of new
Since
1929
there has; been a
farms
require
as
for
by the end of this goods. It is true that the farmers
and their families,'with such little
year..
This is an enormous back¬
hired help as they have been able
log. This should help to stabilize
to
get, have made a marvelous
sales even if the period of recon¬
record of war food production, but
version should unavoidably bring
with
enormous
costs
to
their
on considerable unemployment.
farms.
Farm
plant and equip¬
about
$100
billions available
post-war use
rather
rapid
system
distribution.
to
some
salers.
development
of manufacturers:'
Such
extent
In
a
the
of
branch
branches
have
displaced whole¬
few
instances
such
branch systems have been extend¬
ed to displace the traditional or
ment, the country over, is largely customary retail
channels.
We
suggested that an uncertain¬ worn out.
Soils have been de¬ have probably not seen the end
ty of economic outlook and a
pleted.
Fences are in disrepair. of this movement. It seems likely
prospect of widespread unemploy¬ Barn and
housq roofs are leaking. that- a- considerable number "of
ment may retard or even prevent
Extensive repairs are. needed and manufacturing concerns, 'particu¬
the use of these savings Tor the
enormous quantities of paint will
larly those now in the war indus¬
normal purchase of goods. To this
be required to cover the hungry
tries, concerns that are new and
the reply may be made that peo¬
weathered walls. New farm equip¬ have no established relationships
ple have always used such sav¬ ment of all kinds is heeded.
Not with, distributors or retailers, and
ings for necessary expenditures the least of the wants of the peo¬ others
r whose
relationships have
in the past and there is . nothing
ple who live on farms is for new been sharply broken off,1 may at¬
to indicate that human nature has
clothing; yes, for Sunday suits and tempt distribution through owned
greatly changed. There are, how¬
dresses, to take the place of work- branches.
Expansion in this way
ever, special reasons for believing
clothing now yery generally worn will for a time at.least be easy to
that
these
savings and accom¬
by farm people seven days; .a week finance from .war. earned reserves
panying current incomes are like¬ ail
year around.
There is like¬ and newly expanded credit. That
ly to be ready for the fullest use wise
widespread need in the farm this method of distribution may
as soon as the repressions of the
homes
of the country for new prove more economical than the
war effort are withdrawn.
home
furnishings,
household wholesaler - independent or chain
More than .5,090,000 marriages
equipment and appliances, the de¬ store systems of distribution, or
have taken place since Pearl Har¬ mands for which have had to be
that it may be the means of great¬
bor.
There have been no
com¬
shelved for the period of the war. er efficiencies over any present
parable increases either in the Farmers will want
many things form of distribution, have yet to
construction of housing units nor
after the war.
They will have proved. My guess is that experi¬
in the supplies of home appliances
and furnishings.
It is reasonable "the money to pay for them. They ments in manufacturers'.-branches
In recent weeks some observers
-
have
means.
war.
CED
levels
moderate
vailing before the war, but pres¬
ent
maintained
accomplish
provision,
eliminated
economy.
The mini¬ will' start making direct efforts,Consider the requirements of
established by Federal even if there is some unemploy¬ the retail stores of this country.
law for interstate commerce, and ment,
to
establish homes and Scarcely a new store has been
by State law in certain States for households of their own.
built since 1941.
Not even neces¬
ure
tinguishable
trace.
Classes
in
marketing, merchandising, adver¬
be
wrecks
mum
j
for this
excuse
should
Thursday, October 26, 1944
& FINANCIAL CHRONICLE
,
Volume
160
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4328
~
and
branch
of the labor barons in the butch¬
tion
may
ers' unions
systems of distribu¬ some very active signs of progress.
in the long run make Since the late 1930's up to the
but little change in the present entry of this country into the war,
they
enjoyed
the
prenomenal
patterns of distribution.
; Department stores are likely to
held their own with other impor¬
,
tant retail channels of trade in
the
growth
of
tion is to
than
more
their sales.
some
extent favored by
economic adversity.
economy,
can
achieved
in
controversies
If prosperity
post-war
and
the
.
national
between
private brands are due to be
again.
Apparently the
revived
period, it seems unlikely that con¬
sumers': cooperatives will show
Variety stores are, I believe, any gains in excess of other chan¬
nels of trade."
If, on the other
certain to enjoy considerable ex¬
pansion, but may follow the pat- hand, there is a slump with wide¬
ern
of growth shown for these spread unemployment, consumers'
stores in the past; namely, not to cooperatives are likely to spread
rapidly.
■■ij'-.y'V-".grow as fast in a boom period, but,
;
The chief concern of the other
on the other hand, not to decline
and more usual channels of dis¬
as fast or as far in a depression.
tribution affecting consumers' co¬
Supermarkets in the food field
operatives is the threat that they
and roadside retail establishments
may be granted preferential treat¬
of various kinds seem destined to
ment
in legislation or taxation.
expand considerably before they
Except for this; and so long as the
reach their leveling off periods
other channels
,.
'
be
Advertising, both national and
by newspaper, radio and
other media, are certain to grow
increasingly important.
The old
doubling
.
national
test of
have
brands
war
stood
the
conditions better than
most
private brands, and a proper
cultivation of the present advan¬
tages and prestige of the national
brands may help to heal some of
the old wounds of battle between
national advertisers and the large
Market
■
:
,
research,
in
and utilized as
is certain to be
.
well
companies
already
some
a
matter of course,
applied
even more
from such
regu¬
fast and as far as pos¬
as
is, of course, some danger
There
that-the wants of consumers may
outrun the
capacities of producers
to supply them
distributors
and
with post-war goods.
There is a
considerable danger that distribu¬
the
need
in
the
has
been
in
the
some
as there
for sound packaging of fresh meats will de¬
future,
past,
The restrictions pend
by Regulation W are, how¬
so inflexible and so unsuited
credit practices.
fixed
ever,
normal consumer requirements
to
upon
whether
Too
they are at present they
as
much
,
a
emphasis
placed
credits
consumer
as a
Bonds for
been
other in their
will
ef¬
We
of
sale,
or as an
the growth of our
need
for
for
the
speed in making ready
market is evi-
post-war
training on the job, training for
jobs and training for ad¬
There
is, of course, the vancement. If workers are to be
equal danger of mov¬ highly efficient they must, like
ing faster than the consuming soldiers, keep in training all of the
I am convinced that any
public is ready for it. * Being the time.
first in any movement may satisfy plans made for the post-war pe¬
a
riod which require execution by
personal pride, but being the
first is rarely the sure way to a officers or employees must include
dend.
than
The
war
has given us all a new
idea of the value of training.
in the military
service
are
Men
cdmprehensive, competent provi¬
sions for training.
Without such
provisions the plans will fail. Our
training program, like our busi¬
ness program, must go far beyond
anything attempted in the past. '
What of the future of the costs
of
marketing? Many careful ob¬
hold the opinion that wage
servers
levels established during the war
will be maintained or but little
reduced
in
the
post-war
A number
nated.
of inequalities
have. crept into the wage
structure of the country during
which
the
war
will have to be corrected.
War
workers, for example, are for
most
part
receiving
wage
rates
considerably in excess of
the
similar classes of workers in civil¬
ian
industries.
perhaps
may
rates
wage
industries
Some
be
on
passing
to
reductions
expected
peace
a
credit
consumer
Other wage rates, however, par¬
j ticularly in the distributive trades
and occupations, are more likely
to rise to equalize the earnings of
industrial workers.
It
is
to
wise to be
be
expected and like¬
hoped that an increas¬
ing number of workers in both in¬
dustries
trained
and
trades
(Continued
on
may
page
Pacific Gas and Electric Company
present
beyond
limits.
Auto, tire and automotive
ment. stores are,
equip¬
First and
for reasons that
obvious, due to enjoy an enor¬
mous
post-war boom.
We shall
also probably soon see airplane
Refunding Mortgage Bonds
are
public
suming
L, 3%, due June 1, 1974
To be dated June
;
I, 1944
and to be due June 1, 1974
....
*
the first
in
back
Series
-
agencies and stores serving the
consuming public just as the au¬
tomobile agencies served the con¬
and second decades of the
present
century.
Furniture,
and
other
face the
Price 104% and accrued interest
appliance, hardware
goods
durable
dealers
largest demands for
their
goods that they have ever seen.
There will be not only the market
for
also
Copies of the Prospectus may be obtained only from such of the undersigned
are registered or licensed dealers or brokers in securities in this State.
but
for
as
appliances for old homes
modern
well.
as
homes,
market
furnishing new
the
extensive
sales
The
in these fields seem
opportunities
almost bound¬
less.
Restaurants
come
the
after
rarily
to
an
may
war
industries
end, after the women
back home and
rationing is ended.
In the long
run, however, restaurants and the
service of ready-prepared food on
war
Blyth & Co., Inc.
slump tempo¬
workers
Harriman Ripley &
go
premises are likely to
indefinitely.
which
Smith, Barney & Co.
The First Boston Corporation
Incorporated
Lazard Freres & Co.
DeanWitter&Co.
Goldman, Sachs & Co. Halsey, Stuart & Co. Inc.
Lehman Brothers
expand
cooperatives
Co.
the
Consumer
for more than
at
the
bottom
in
importance on
distributive
institutions, have recently-.shown
the
list
Glore, Forgan & Co.
of American
Kidder, Peabody & Co.
Stone & Webster and Blodget
Incorporated
100 years have been
October
24,
1944
in the
from war
industries.
$115,000,000
end of the war will in¬
considerable extension of
the
ing
clude
period.
Penalty, or time and a half, wage
Vates will, of course, be elimi¬
national econ¬
may
un¬
new
of record only and is under no circumstances to be construed as an offering of these
offer to buy, or as a solicitation of an offer to buy, any of such Bonds. The offering is made
be presumed that the
demands of our economy follow¬
It
go
similarly train
for the task that lies ahead of us.
There is, as we have seen a big¬
by legitimate consumer credits in
omy.
training
must
New Issue
given to the part played
has been
each
Business
consumers
lesson
taught by the military to
heeded.
our
We must
only by the Prospectus. This advertisement is published on behalf of only such of the undersigned
as are
registered or licensed dealers or brokers in this State.
of
of in¬
cause
with
vie
and
nation.
our
the
consideration
Not enough
flation.
has
over-extension
upon
institutions
fatal, not only for
This, advertisement appears as a matter
handicap.
serious
prove
consent
methods of distribution.
be
but for
allow
not
every emersuch
training
-sttrrr
'
if left
the
tion of product as well as of meth-
men
and
of
that
and to business development
wjll
Pre¬
transported by plane.
Lack
in general and retailers in ger job to be done than ever be¬
particular may not be adequately fore. To do this job all workers
prepared to take care of the driv¬ must be trained. There must be
ing, moving demand of consumers training at every stage.
There
be
when the war economy ends. The must
pre-induction training,
<
There will be
task
every
tors
extensively, not only in .determin¬ profit.
of retail distribu¬ ing wlfeirconsumers will buy, how
Importance of training. From
and the beginnings of diminishing
much they will be willing to pay,
tion serve their publics effectively
what I have so far presented you
returns. Certainly the trend away
in what quantities *and in what
and economically, there is really
will see that business and partic¬
from small specialty food stores
kinds of packages they will prefer
very little reason for the growth
ularly distribution has an enor¬
towards general food stores which
to buy, and where they will buy,
of consumer cooperatives beyond
mous
opportunity as well as a
has been under way for several
-but also as to the best methods of
the opportunities afforded by such
great responsibility before it. That
years may still continue.
;
capturing their attention and in
organizations to its members to
the performance of this responsi¬
;
There may be question, how¬
holding their repeat trade.
The
agitate for a cause, to join some¬
wasteful hit-or-miss methods of bility will be difficult is certain.
ever, whether self-service which
thing, to belong on committees
That it can be performed and that
has expanded so enormously un¬
and to strive for election to some¬ marketing goods followed in the
the
responsibility will ■* be dis¬
der
the necessities of war will
past will certainly give way to
thing and for leadership. I do not
charged I have not the slightest
continue at the same high levels.
methods and procedures whose ef¬
discount the importance of these
doubt provided the owners, the
The outlook for retail self-service
fectiveness and results have been
fundamental functions of the con*
executives and the employees of
is to a considerable extent de¬
sumers' cooperatives, but in the predetermined.
business will do the things that
pendent upon what retail labor absence of substantial economic
Other
important but general they should do with the same
costs are going to be. If excessive,
gains, it is unlikely that there may changes in consumer demand may singleness of purpose in winning
self-service will remain at wide¬
be enough
people who want to be safely forecast. Most consum¬ peacetime prosperity for them¬
spread high levels and may even
agitate, to join, to belong to, or to ers
will
want
better
quality selves and their communities as
see greater growth.
support consumers' cooperatives goods than have been available shown in providing the produc¬
House
to
house
selling will to make them formidable rivals
under
war
conditions.
Wartime tion necessary for the winning of
probably continue in the post-war of other channels of distribution. victory models and
make-shift the war.
period much as it was carried on
substitutes will be a drug on the
Most important of all aids to
Many changes in products, pack¬
in the pre-war period as an im¬
market as soon as newer and bet¬ the reestablishment and mainte¬
aging and services are undoubted¬
portant form of distribution for
ter goods are available.
nance of national prosperity is or¬
ly on the way to post-war mar¬
certain
specialties characterized
Consumers will want and ex¬ ganized, systematic, thorough edu¬
kets.
The pre-packaging of fresh
by novelty, demonstration quality
cation and training.
There is the
frozen
and
dehydrated pect more variation and greater
and
relatively high margins to fruits,
to
think
of
development
ranges of qualities, colors, sizes need
goods is already well-established.
cover the necessary
costs of di¬
and prices than have been avail¬ through training
for all classes
It seems probable that consumers
rect to consumer selling.
able in the past.
There are prob¬ and grades of workers from the
will be offered a much wider va¬
Consumer credit, now drastical¬
ably few if any American citizens operating heads to the most rou¬
riety of fresh fruits and vegeta¬
who are not tired of regimenta¬
ly. limited by Regulation W, will bles from all
tine workers of business.
parts of the world,
need liberalization.
for
gency.
would
sible.
more
distributors.
established
forts to get away
lations
be obtained.
local,
Consumers' coopera¬
future
growth of the American
subject
only to
the
shifts in population in,our metro¬
politan cities.
.
can
1811
Union Securities Corporation
be paid
1814)
(6). The argument of the branch
The Branch Banking
Controversy
(Continued fro mpage 1801)
liquidity of the financial re¬
sources" of the country by mak¬
the
35),
port of the F, D. I. C. (page
'At the close of 1935, there were
it
possible to transfer funds
sections of the country/
18,448 banking offices in opera¬
tion in the United States and
ing
While it might be
argued that the percentage of
reduction of branch banks in
only could the idle funds
of one community be transferred
between
Not
possessions.'
Canada
the
than
smaller
banks
were
now
by
valuable, since it proves Conclu-' bank with idle funds
in
it no longer
many
ways
means
can
invest it
outside of its im-
to operate a branch bank j mediate community in commerIt is cer¬
closed, thereby denying cial paper, bonds, "etc.
to the
banking facilities to the com¬ tainly not encouraging
munity concerned.
This prac¬ small business man on Main Street
tice is contradictory to one of to know that an "absentee" board
the basic arguments for branch of directors of a parent bank may.
banking. In various parts of the without notice and without con¬
pays
is
it
banks and
pay
today
be
communities in which they are
conclusion
The
located.•'
is in¬
£or Bankless Towns,"
„Southworth
state
man
in Cali-
to
serve
r
that might otherwise exist, but the fact that many of the
where there are other
\
;
the
From
land
and
mine)
are
.
.
experience in Mary¬
it is clear
put "all its eggs in one
Diversification
branch
exist."
will not
be
v.
•
he
a
was
crash
ing needs' of any customer is
and
safer
•
,
fout
although it has won
jmany advocates to the cause of
| branch banking. Not much hope
fin that for the small business
industry
can
now
they need.
man!
Unit banks
funds
save
1929.
twenty-five
and
as
in the
case
his
"No system of
better
is
1
of
needs
weak
banks
-
legitimate financial
American
businesses,
of
country
was
due
Trust
Co.
Cleve¬
of
and.the
19 branches
Trust Co. of Cleveland
In Maryland
difficulties
financial
Trust
of the
with
Co.
19
18
with
Co.
Louisiana
branches,
financial
the
in
condi¬
and
20
Bank
Canal
branches
Hibernia
the
and
Bank & Trust Co., also
Orleans,
with
of New
branches,
nine
forced State-wide
banking holi¬
days. Add to these the failures
of
the
$200,000,000
Bank of
United States in New York, the
be
unit
free
people cannot afford to pay.
The
Government has
already
entered the field of
with
branches, the $19,000,000 North
Carolina Bank & Trust Co. with
15
branches, and we get a pic¬
ture that is not pleasant to be¬
strong
hold,
even
though
omit
we
enumeration
detailed
'
of
a
the
other branch and chain banking
systems that broke down in the
recent
These facts
depression.
the
refute
that
claim
banking will
cause
branch
cessation
a
of bank failures.
"Instead
banks
the
nth degree, losses to stockhold¬
ers and to
depositors—a sorry
story of financial mismanage¬
ment
such
erated
as
to
would not be tol¬
such
or
could "not be
as
operation of unit banks. It must
be stated also
that many in¬
52,714 SHARES,
The Lionel corporation
forced
close
to
of
cause
banks
were
their doors be¬
unit
dependent
■
the
city banks
of large
collapse
they had
which
in
deposits.
COMMON STOCK
\
""Only banks not members of
examined by the
regarding
less
or
in any state in which this announcement is
of the undersigned and other dealers
lawfully offer these securities in such state.
may be obtained
circulated from only such
Prospectus
as
may
F. D. I. C. and
the proportion
losses and doubtful items to to¬
creases
banks.
GRANBERY, MARACHE & LORD
EMANUEL &
CO.
A. C. ALLYN
AND COMPANY
INCORPORATED
with
The
estimated
of
the
assets
size
average
losses*-, in
of
in¬
the
of these
1935 was
4.1%; for banks with deposits
from $100,000 to $500,000 the
average
with
October 26, 19-14.
value
book
was
deoosits
going to
The
are
through the
our in¬
Until the
of
resources
dependent unit banks,
financing
the
of
their
of
some
surplus
with
V
as
absorbed
war
funds, their vaults
bulging
were
«;
■,
railroads
our
de¬
%
■
being
are
taxed heavily to secure, funds
with
which.the Government subsidizes
their
competitors,
banks
that
are
taking
are
so
unit
our
>
being subjected to taxes
ever-increasing
an
portion of their income, which is
used to subsidize
their
on
competition that
business
from
away
unprofitable basis.
an
If Government
competition de¬
and
unit
banks, then I repeat—because 5t
is so fundamental—our system of
stroys
free
railroads
our
private enterprise is doomed.
It is for this
reason
avoid
movement
any
facilitate such
let
us
unit
that
strengthen
our
rather
banks
we
should
that
may
Hence
calamity.
a
independent
than
follow
a
"branch
labeled
jack-o-lantern
Chain and
developed
to
$1,000,000 the average was 2.7% ;
but for banks with $1,000.000 to
$50,000,000 in deposits, the aver¬
some
banking have
parts of - the
evading legal restrictions against
branch banking.
scribed
It has been de¬
branch banking's "fifth
as
column."
"Both go hand in hand."
Hence, the objections to chain and
group
banking are many times
more
serious than those against
branch banking, since it can be an
indirect means of. setting up a fi¬
nancial "octopus" and securing a
banking monopoly before the pub¬
lic is
of its danger.
aware
of
view
the
"impressive
growth of chain and group bank¬
ing since 1929, the F. D. I. C. stated
in its annual
report for 1938: "
Holding Company Banking.
The,Annual Report of the Cor¬
poration for the year ending
Dec. 31, 1937, pointed out that
by use of holding companies a
.
single interest
fices
and
in
can
State
operate of¬
different States
can
many
operate
of offices
or
a
large number
within any
banks
regardless of existing
strictions
on
Attention
was
branch
re¬
banking.
also called to the
effect of holding company bank¬
ing
"
2.35%; for banks
from, $500,000
group
in
country, primarily as a means of
doubtful have been com¬
startling fact that for non-mem¬
ber banks the ratio of estimated
tal
we
financed under
Government supervision
proper
piled only for these banks. The
annual report of the F. D. I. C.
for 1935 (page 41) reveals the
The
if
collectivist economy.
a
be adequately
can
of bank assets which are worth¬
SHARE
liquidated
In
the Federal Reserve System are
data
on a
many
banking."
watered
stock
too
system of free private enterprise
witnessed
have
we
banking
in
basis
Many of these public fi¬
agencies can and should
nancial
them
Carolina
South
political dema^
some
tionalizing the resulting "banking
monopolies" and financial "octo¬
puses." It is a price the American
44
of
s
Reserve
to destroy our system, of
private enterprise by na¬
takes
possible in the organization and
PRICE $13.75 PER
for
easy
$2-3,000,000 Peoples State Bank
of record only and is under no circumstances to he construed as
offering of these securities for sale, or as an offer to buy, or as a solicitation of an ojfet
to
buy any of such securities, The offering is made only by the Prospectus,
share)
it
Just
the
Federal
the
System. Furthermore, it would be
an
organization that would make
Trust Co. of New Orleans with
This announcement appears as a matter
per
with
ble
posits.
of
unscrupulous financial manipu¬
(par value $1.0
organization that is incompati¬
an
and
tion
people will
American
the
permit oritolerate.
At the
time he would be setting up
avoid
lations,
an
crisis
the
"octopus" he
financial
the
knows
same
Thus he is forced .to
case.
create
be
Baltimore
troubles of the pre¬
small
Ohio
branches, and the Union Trust
ceding decade, there were thou¬
sands
large or small.
National
the merits
he attempt to prove
can
ways.
the
provide better security for
depositors.
For safety is pri¬
marily found in sagacity and in¬
tegrity of management, which
account for the fact that, despite
the banking
for branch banking on a na¬
tion-wide basis. In no other way
be
competitive
Union
nor
are eager
Na¬
174 branches
with 22 branches.
banking system will
a
First
the
with
Guardian
land with
which it is based. It is for
that the unit banker
make
districts, his next logical plea will
gogue
condi¬
very
be secured
can
in several of the Federal Reserve
Guardian
velopment of branch banking
in this country. He is convinced
not
Bank
the
"In
reason
that such
financial
However, since,
tle diversification
to the financial condition of the
/, ;\
strongly opposed to the de¬
' V:;.;
Reserve
lit¬
Federal
given
a
district.
fices.".
tiun-
can
within
only
not
given State but anywhere
a
Bank of Commerce with 58 of¬
of another
banking
col¬
failures
bank
unit
Michigan—viz.:
million
than the individual
bank
and
the
was
and
years
..
"It
tional
did not race to
"
scandal
cipitated the banking crisis in
unit
when his assets be¬
The Comptroller
.
unsound
branch
precipitate a na¬
ing systems in Detroit that pre-
frozen.
rescue.
can
thousand
.
Fur¬
post-war
within
never
tion of the two big chain bank¬
him during those
of the Currency
to care for the
(3) According to its advocates,
rjbranch banking would "increase
of the
forever
branches'
establish
to
it should be clear that an
a
of the twen¬
in
came
doors open,
South¬
look to
Southern unit banks for the
It
faced.
be
'
banking
most satisfactory manner.
ern
country.
J could cause.'
con¬
banking system, or a
one
the
merit,
the
lapse,
as
resulted
from
the
Michigan situation, such as not
to 1932—there was no
agency to lend him ninety mil¬
lion dollars as in the case of
% dred
of
a
dispose
tional
prior
Even in
(under branch banking is contrary
iio the facis and, therefore, with-
in
must
ambitious,
experience
from
bitter
twelve
South, unit banks have been
able to increase their resources in
importance today.
at
494
2.800
are
the
of
He wants authority
large .enough.
of his
over,
illusion long before
an
ration to
upon
little
there
17%
his
that
branch banks
are
any
better under similar
laws than unit banks, and more¬
'
this
j there will not be bankless towns
record
should
thermore, he was fighting the
battle alone, for there was no
Reconstruction Finance Corpo¬
commodate the legitimate borrow¬
done at
The
this argument
on
knew
the
V
community if it must be
loss. The argument that
that
or
offices
branch
\
ties
(5) The arguments that a sys¬
tem of branch banking can ac¬
a
light
banker
unit bank to
"
licenses
receive
to
is
reopen
branches,
>
stated:
dollars
Obviously, therefore, no branch
bank will be organized or oper-
lated in
is
"The small, independent
•
operating at a loss.
failed
least 19, controlling at least
in his address in New York when
munity would not be deprived of
a
branch bank even if it should
antee that banklessness
to
basket."
'The author threw
siderable
function and that certainly a com¬
permission to
have
possible; hence
is
banking
sounder.
in
es¬
mere
a
revealed by a sur¬
of the branch banks which
vey
(7) The basic argument in favor
of branch banking is that it doesn't
continue
tablish branch banks is no guar¬
that
15, ~ 1933,' issue of the
"American Banker" stated: 'The
banker
conditions.
came
a
history
April
system, or whatever
amount he needed to keep his
unprofitable for
The reply
to this very
An editorial in the
bitter truth
of the branch banker
unfavorable record is
area,of operation is not
greatest fail¬
banking
our
since 1865.
to
handicap
that branch banks will be
located in communities where it is
Louisiana,
in
ures
assets
doubtful
and
than do small banks.' "
be
may
of
proportions
larger
worthless
banking
States
with local business
plied
.
United
the
credited with the
proved to be a tragic mis¬
Furthermore, the almost
is contrary, how¬
ever, to the whole philosophy of
branch banking; since it is im¬
h' is much less than might be sup¬
(italics
in
errone¬
have
to
today.'
chain
and
report of the F. D. I. C. (page
41) states:.'Large banks appear
enormous.
were
is also true
same
age of. estimated losses to total
\ assets was more than 4.8%. This
city,'banks
large
propaganda that
This argument
banklessness by these branches
posed
v'1.;.-'-'.;
any cause,
from
the
assets
"Branch
that
that the prosperity
$5,000 each against loss should
such a bank go out of business for
The
brought
at its worst than
was
patrons.
A
branch manager may be there one
year and gone the next, and there¬
fore, cannot come intimately in
touch with the^ bank's patrons or
to
cities
.
inite
unit bank are now protected up
a
branches
redeemed
towns
unprofitable to
whose
branch banking system is a def¬
a
:
under the F. D. I. C. depositors
and banks means that the num¬
of
^
/
the
upon
of
some
when the
safe
and
depression
constantly changing personnel in
be without a' bank.
ness
ber
take.
them accord¬
depositors, however, would
Furthermore,
Such
amount of bankless-
city are located in other
*
reserves
operation of a branch in a
community, it could be closed
without
loss
to
any
depositor.
| branches outside the head office
t
1
pressure
solid
more
unit banks
are manned by an uptrained and
unsatisfactory personnel. Experi¬
ence
has
proved
in
the past
twenty
years
that
officers of
branch banking systems are not
as skilled in interpreting financial
Statements and in making safe
loans as some persons have as¬
sumed. Many so-called secondary
the
undoubtedly
the
lessen
become
M. Chap¬
63:
banks
branch
fornia
[
page
/
the
assumption
ous.
It is argued that, should it
(4)
(1941), S. D.
and John
on
"The
j
tant business.
study, "Banking Facilities
a
'
unit
a
by friends, politicians, and
others, is based
directors—unimpor¬
the absentee
of
because
death to his—in the opinion of
or
evitable."
In
profitably invested else¬
of
forced to, make a
be
may
officer
an
against his better judgment
to bear
ingly, leaving him without the fi¬
nancial resources that mean life
sold to citizens in the
or
more
where and transfer
transferred,
being
are
closed,
•
loan
sultation. decide that its funds can
affiliated
branches that do not
States
United
bank
between any sec¬
pensively and without delay. Fur¬
thermore,
an
independent unit
ing in reality, real-estate offices.
The
Canadian
experience
is
sively that when
be
can
of
Federal Reserve banks, inex¬
the
only—be¬
in name
It should be
funds
tions of the country
1933
trying years before
shift of population
that
out
transferred
States which closed their doors
in the
any
business centers.
pointed
United
the
in
banks
or
of the
that many
remembered
so-called
rapidly of
it must be
in the United States,
of
needs
community,
but,
it is
claimed, branch banking would
enable banks to take advantage
of
reduction
financial
the
meet
to
another
been
has
banking offices
of
number
the
1920
since
that
banker
Thursday, October 26, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
1812
upon
bank practices.
'The
holding
vice facilitates
concentration
to
related
company
de¬
self-dealing and
of lines of
credit^
interests beyond the
limits contemplated by law. The
Volume
Number 4328-
160
THE COMMERCIAL
&
What
| Pensions And Social Security
BABSON
'
Stocks
Don't write
tions
for
me
to
Here
you.
chains
PARK, MASS.—Many businessmen and investors are
is
corner
simple
a
of your
the list to
him check those whose stocks
'
"•
■
taxes
from—
those
■
,in
lower
■
■
ets
4 in¬
and
creasing'mini¬
mum
:
50
stocks.
wages to
cents
'•
—
—:—1
You
/
an
V
-
see
;
v';;
that people who are to
hour: Certain¬
or old-age pensions
and,, in fact, Social Security, will
ly,
;
not
not
b
-
to
inessmen
enter
new
ventures
and
i
'«1
:
Hedging
Against
Higher Wages
•When
Roger
the
Babson
W.
price controls
and the excess
-N'O profits
taxes
are
removed, most businessmen
cart pass on a good portion of their
taxes.
This, however, cannot be
done by those who have retired
/■/'• /A"';'
from
active
through
business
vestments
except
selection
careful
most
a
of investments.
What
are
the
in¬
by which investors
can
compensate for these Federal
ex¬
penditures
for
Then visit and
stores
of the
to
think
all will be
the
best
nancial condition.
that two
three
or
pensions,
Social
the entire nation involves
centration
con¬
a
risk
through the
of failure of important
Difficulties of examina-
hazard
groups.
:i'- tion
of
and
supervision multiply
with the growth of banking organizations controlled by single
'
interests.'"The
mends
;
\;V,'
Corporation
r eco mlegislation which" will
.
prevent further expansion' of
holding companies in the field
of banking."
;
The
author
not
only
agrees
with this but believes such legis¬
lation' must be enacted ' without
In view of the facts set forth in
discussion,
is
it
difficult: to
justification for. branch,
group banking beyond
the county in which the parent
bank is located, or within a lim¬
ited trading area.
v
see
any
chain,
or
;/Although
from limited
harmed anyone.;/;
The
in realities
memorandum prepared by
other
are
reasons
under
dual system
our
of control,
constitute the first line of defense
of
portance
on
American
democratic,
our
stitutions.
;
They
to
business
every
America's
economic
in¬
of vital im¬
are
man
Street.
The
Main
stability of our country
their
mand
The
in
men
banks
unit
fact
that
of
is
our
small
independent,
our
from
evident
the
they do not fear their
inability to borrow money after
V-Day.
In a report by the New
York "Sun" of Aug. 3,
first
five
fears
1944, their
listed
as
by
stocks
either
eco¬
and
concern over governmentally sub¬
sidized competition was fourth.
The fifth fear was of politics re¬
maining in business."
men are
our
business
awake to their real prob¬
men—our
banks
—
pioneers
of
ence
discussing
both
Our small busi¬
independent, unit
—
still
for
venturesome
if protected from the
clangers that can destroy them.
of
the
cussed at the Butte conference.
J. Eldridge Scheffmeyer, mem¬
of the New .York Stock Ex¬
ber
change, and John E. Scheffmeyer
will
form
the
partnership
of
Scheffmeyer & Co., with office at
26 Broadway, New York City, as
A confer¬
—
the
Stock for sale
Securities
Ex¬
and
Commission, western
mining men, securities un¬
Eldridge Scheff¬
has recently been active
as
'individual floor broker; prior
thereto he was a partner in Pol¬
and the investment
commissioners of the
48 states
am
has been called
be had from the'firm upon
•
* • ■
1 v--, •.
lard & Co.
no
by Governor Sam
circumstances to be construed
solicitation of
or as a
an
offer to
buy
any
as
an
offering of this
of such Stock.
'
The offering is made only by the Prospectus.
Sifff
.
V
NEW ISSUE
•
'
80,000Shares:;
selling
are
for
$1.25 Cumulative ConvertiblePreferred Stock
not .more
If
i'
r
,
in¬
terference
values
under
and* if desirable.
chains
will
p-l.>/
have
apply
s
:
"■
If
6.
to
quickly
move
exercise of
f-'i
;
Price
$25.00
accrued dividends
share
per
from
October
1,
1944
as
may
may be obtained in any State from only such dealers participating
legally*..offer ■ this stock under the securities laws of such" State,
eral taxes by
Van
to
one
8.
Various
and
the
taxes
This
announcement
appears as a matter
of these securities for sale,
'
Legis¬
not
of record only and is under no circumstances to be construed as
offer to buy, or as a solicitation of ah offer to buy, any
or as an
1
an
offering
11 /
of such securities. The offering is made only by the Prospectus,
NEW ISSUE
a
70,000 Shares
mer¬
carry
I be¬
ulti¬
are
ing
on
War II.
-
the
Preferred Stock
-
inventions,
new
market
,
(Par Value $100
com¬
are
per
Share)
World
after
This will be beneficial to
industrial concerns, but will
be harmful to many others. This
many
Price $103 per Share
problem, however, which the
a
merchant need not consider.
He is
plus accrued dividends from October 1, 1944
position to sell whatever the
a
listed.
chains
The
and
areas
to
date of
delivery.
they give
an
Copies of the Prospectus
may be obtained within any State from the
undersigned only by persons to whom the undersigned may
large
Hence,
important geograph¬
cover
States.
many
: i
,.
■::
regularly distribute the Prospectus in such State.
ical diversification.
10.
Merchandising stocks should
be
harmed
in
course,
a
thing
goes
after
World
by inflation.
bull
market
Of
Kidder, Peabody & Co.
every¬
while in a bear
market everything goes down; but
II
may
a
bull
or a
bear
a
selective
Riter & Co.
not
necessarily have either
we
market, but rather
market.
Union Securities Corporation
up,
War
y
Incorporated
locality, not by the
•
and products
processes
y.
Alstyne, Noel & Co.
mately paid by those manufactur¬
ers or wage workers who are tied
down
■
!*d;
E. H. Rollins & Sons
adding them to the.
most
storekeepers.
,
can
I know
price of goods. If there is
profit in carrying certain
chandise, the stores will not
such merchandise. In fact,
that
74,594 shares
subscribed for through the
taxes
chain
repealed the taxes.
7. Merchandiers pass along Fed¬
lieve
not
the rights.
'
this issue
where they have
cases
to
were
Copies of the Prospectus
in
,
started
Such rights
out of that State as
move
of certain
Prospectus.
^
enacts
too severe, a
the
com¬
concerned.
State
some
are
which
Plus
companies might well be com¬
pared with a good bank or. fire
insurance company — as far as
which
in
■
petitors.
Hence, the labor ex¬
is not an important factor.
are
outlined
terms
fairly
a
also
to
-■B;
'
;
.
pense
their assets
-
given
rights to subscribe to the above referred
1944. This announcement relates only to
V
low labor cost; but any wage in¬
creases
;
;■>
were
; :
expired at 3:00 P.M. Eastern War Time, October 23,
and,
These
.
^
Corporation's Common Stock
>
shares of $1.25 Cumulative Convertible Preferred Stock
hence, are not tied
down, like a manufacturing com¬
pany or a large department store,
to one spot. They can-move when,
4.
rata
pro
Most of the chains rent their
stores
_
$20.00
/:
'
:
consider.
3.
.
Holders of the
business, book
important factor to
an
Par Value
_
with
are
:
Liberty Aircraft Products Corporation
/
pre-
are
in
financing
mine
approval
mining interests, will also be dis¬
derwriters,
request.
pre¬
or
we
not
small
lems and d.angers.
ness
new;
released
partnership.
HELENA, MONT.
This advertisement is not and is under
headed for further New Deal
is
unan¬
recent
Mining Con¬
was
nomic dictatorship was third
Obviously,
ly
of Nov. 3. Mr. J.
public wants/ whether old or new,
held by. and
by whomever it is manufac¬
fear of post-war bureaucracy and
tured.
regimentation; second was inabil¬
9. The
merchandising
stocks
ity to retain sufficient earnings to yield well and most of them are
remain in business.
two
meyer
for
not
are
bonds
than their book values.
fol¬
A fear of
are
"First place
lows:
A. A.
a
stocks. which
mon
preservation.
confidence
business
part¬
Confer In November
,
—the welfare of our people—de¬
The'
metal
may
the
forms, which the SEC has recent¬
change
memorandum
by
Forming Scheffmeyer & Co.
have bonds out¬
number have no
preferred stock. I like best com¬
we
Governors'
of
this
South Da¬
Very few of these merchan¬
dising chains
standing and
as
Western
1, on wnich
Kaye will retire
G.
and
adopted
Bennett & Co., Inc., 105 South La
Salld Street, Chicago, 111. Copies
buying good chain store stocks be¬
sides those above given. Consider
the following: v/ ■ "
fS-
•'
properly evaluate
what is "progressive."
Our inde¬
pendent, unit banks, functioning
Lewis
states
ference held at San Francisco.
Nov.-
effective
western
imously
general
limited
a
be confined
financing recommendations
partner in the firm,
be
Montana/ !on.
kota to carry out one of the mine
SES, Mining ien To /
stock of Merchants
common
lature has
that
-
Attractive Situation ,1
f
Merchandising Stocks
But there
portant that
and
<
11
Street, members
Lyons, Jr.,
to
cease
tion
politicians give this money to the
people and then collect it back
again through the stores at which
they trade.
'
'v4'
1.
limited
date
the present situation • and outlook
Buy
L.
ner
never
F. Pen¬
leading exchanges, on
Kemp in the past was
operated, then divide your money
all/of these. Diversifica¬
a
leases become cancelable.'
deal
will
fighting pensions, bene¬
fits,
Hopkins'
minimum wages
or Hillman's labor union rates, it
may be safer in the end to let the
of
improvement
and
progress are alwajrs in order in a
dynamic society, it is equally im¬
we
and
equally well-
among
5. A
good
merchandiser » can
delay'. :/■•;:U; liquidate quickly if necessary.
Some
of
theses merchandising
5
this
William
confer^
entirely to small mine financing.
Governor Ford is acting in con¬
junction with the governors of the
partner in the firm.
a
I
fi¬
If you believe
are
'\r :f / - /"'//v////; •;
/development of large banking 'ferreds. y'Xi
f'
2. Many
of
the
chain
store
Organizations"; extending
over
States and possibly over
Nov. 1. Mr.
Distilling Corporation offers im
teresting possibilities according to
;
other
and
you
operated.
—
the money;
save
ceded
4. many
com¬
in excellent
Kemp
Fifth
South
The
which will take place at the
Finlen Hotel, Butte,
Nov. 10 and 11, will
of the New York Stock Exchange
yourself.- ' Buy
store which
think
be
235
Big Board in New
investors to protect themselves is
to own stocks in these stores, in¬
more
''
'• -1
City.
these
pare
are
stead
employ
people.
i
York
but will im¬
mediately spend it at .the food,
variety and chain stores in the
neighborhood. Hence, one way for
encourage
u s
■"
get veterans
this* will
the
on
the stock
Security, relief, etc.? I believe that
one answer lies with putting one's
money into good merchandising
the
brack-
listed
ence,
nington Kemp will be admitted to
partnership in W, L. Lyons & Co.,
banker and have
your
C. Ford of Montana.
Lyons IO0. To
LOUISVILLE, KY.
Take
city.
1813
Admit F. P.
the
near
or
which the nation will-be burdened after the War.
fact, Harry L.
Hopkins, the President's closest advisor,, in the current issue of
"American Magazine" calls also for more benefits and bonuses.
In¬
stead of suggesting a general tax reduction, he demands lifting all
W. L
.
selec¬
becoming frightened at the thought of the huge pensions, etc. with
In
CHRONICLE
list of the
a
operating in
busiest
Buy
make
to
rule*to follow: Make
Babson Discusses Effects On Investments
/
FINANCIAL
October
24,1944.
.'-V
A
finance discussion will
war
will
which
America
be
figure in the 33rd annual meeting
Association
the Edgewater Beach Hotel,
of the Investment Bankers
at
held
participate.
annual
scheduled, and besides the
President John Clif¬
ford Folger, there will also be an
address by a prominent speaker
address
to
be
by
page 2581,
of Folger,
our
As
later.
announced
indicated in
was
issue of June 22,
Nolan & Co., Washing¬
ball
nominated for
of the convention
The program
committee
certain
re¬
get-together reception,
Lounge; 8 p. m., dinner,
Alfred'P.
Sloan Jr., Chairman General Mo¬
tors Corp.; address by The Earl
of
room;
address by
Halifax, British Ambassador to
the United States of America.
outlined follows:
<
remuneration
sult in greater
accom¬
In¬
should
re¬
production, greater
and at the same
take-home wages
time
no
Among the expenses in the dis¬
of
wages comes
goods the cost of
first. If there are to
in the distribu¬
be wage increases
tive trades such
it
seems
suggested here,
as
the
free
management
enterprise
may
costs
sys¬
risk
effort to
never
departure
from the
produce and to sell goods at lower
and lower prices.
It is well with¬
a
in
probability
that
through
the
train
Wednesday,
Nov.
29—10:30 use of new materials and im¬
arrivals; registration of delegates; a. m., fourth session of the meet¬ proved methods of processing, the
12:30 p. m., luncheon, Marine din¬
ing, East Lounge; certain commit¬ costs of production may in many
ing room; 6:45 p. m., get-together tee reports; election of officers for; cases be reduced. There may also
reception, West Lounge; 8 p. m., 1944-45; induction into office of be some instances in which the
Sunday, Nov. 26—9 a. m.,
dinner, Marine dining room.
governors-elect; remarks by John
Monday, Nov. 27—10:30 a. m,, Clifford Folger as incoming presi¬
committee meetings; 12:30 p. m., dent; adjournment.
dining
luncheon,,
Marine
committee
meetings;
room;
The
announcement
that
states
2:30 p. m., all reservations for rooms at the
East convention must be made through
first session of the meeting,
Lounge;
President
by
address
John Clifford Folger; certain com¬
the
the headquarters
Association,
which
33
So.
Clark
St.,
costs
of
marketing
lowered.
be
It
however, that
marketing will
to
tempt to describe, but will
leave
be attained and maintained.
overcome
of
I have
extent
alternatives
The
achievement
deed.
I
can
am
abundantly, but also by' distrib¬
uting effectively and by paying
workers proportionately to their
services rendered and well. A na¬
who do not understand may com¬
plain about these higher "costs of
marketing. It is a matter of com¬
mon sense that a, system of distri¬
bution that builds up national in¬
come and accompanying prosper¬
tion's prosperity is made up of the
prosperity and good living of its
individual concerns and. its indi¬
successful
a
very
in¬
dark
bound to believe that
be
vidual workers. National prosper¬
solu¬
half-way
no
I believe that the free
ity will have been achieved when
each unit and each worker will
en¬
terprise system must succeed af¬
firmatively, brilliantly" and con¬
have done his
.A''
job.
The Securities Salesman's Corner
By JOHN BUTTON
Don't Spread Your Efforts
likewise
inevitable,
overall costs of
increase.
People
to
are
-
enterprise system Can
free
justify its existence and perform¬
ance
not • only
by
producing
to which the
public, includ¬
ing its managers and its employ¬
ees,
bend
their good-will
and
their best effdrts to the job ahead.
the
rests with busi¬
be
goods.:'V:Q
The
doubt, but whether or not they
will
be
overcome
will
depend
upon
will
and, more particularly, with
those engaged in the distribution
ness
no
may
seems
be
can
rather
imagination, what
be. What the
your
outcome
I
not, however, wish to minim¬
ize the difficulties. That these dif¬
ficulties
to
the alternatives may
do
tions.
Unddr
tinuously, or that it must give way
something else.
I shall not at¬
concerned about higher
marketing.
In conclusion, it is my convic¬
tion" that through the free enter¬
costs of
there
inevitable that the
of distribution will rise.
tem
■■
American business
increase in unit costs.
tribution
Thursday, October 26, 1944
-.*•*»
>a...
greatly
can
and in accordance
plished rather than for time.
centive
•*>— •»
prise system post-war prosperity
with the amount of work
Treasury, will participate;
6:45 p. m.,
West
ton, D. C., has been
now
States
Mr. Folger, who is head
reelection to the presidency.
as
Lounge;
ports; war finance discussion, Ted
R.
Gamble,
National
Director,
War
Finance
Division,
United
work done
for
on
Addresses by Alfred P. Sloan Jr., Chairman of the
General Motors Corp., and by the^1
Earl of Halifax, British Ambassa-' nounced later; 2:30 p. m., third
dor to the United States, are also session
of
the
meeting,
East
will
A
(Continued from page 1811)
Nov. 26, 27, 28 and 29. In the discussion Ted R. Gamble,
National Director of the War Finance Division, Treasury Department,
Chicago,
:
Of IDA At Chicago In Distribution
Annual Meeting
and War Finance Conference
...
Doming Changes
War Finance Discussion Planned For
of
FINANCIAL CHRONICLE
THE COMMERCIAL &
1814
Too Thin
traps into which even the most diligent and intelligent
drift, is that he sometimes gets "too many balls in the
One of the
salesman
can
air" all at
one
It is the diligdnt
time, and tries to keep them there.
rather
salesman
than
the
fellow
tries
who
that is often plagued by having too many
doesn't know where to start first.
to
take
the
short cuts,
things to do, so that he
y
'y:
and too rhany
mittee reports;
6:45 p. m., get- Chicago.
small clients that take up too much of your time in service calls
together reception; West Lounge;
that do not pay. In fact, you can have so many things to do that
ity, even though the costs of mar¬
8 p. m., dinner dance, Marine din¬
you can literally knock yourself out trying to do them. When you
keting do increase, is much to be
To Form Iseman & Co.
ing room.
see
such a situation arising, it's time to halt and
CAST ASIDE
preferred to a low cost but inade¬ WHAT IS UNESSENTIAL.
;
;
Harold M, Iseman, member of
•
;::y;
Tuesday, Nov. 28—10:30 a. m.,
quate system of distribution.
If
second
session
of the meeting, the New York Stock Exchange,
Have you ever seen the salesman's prospect file that is just
the various factors of distribution
East
Lounge;
meeting of the Alfred Bruno Wolfe, and John W..
discharge their responsibilities ef¬ piled high with cards upon which few, if any, consistent calls are
board
of governors
(open ses¬ Schulz, will form Iseman & Co. fectively and so help to reestab¬ being made?
Or, how about the calls that are repeatedly ma'de
sion); 12:,30 p. m., luncheon, Ma¬ as of Nov. 3. Mr. Iseman has been
upon accounts that have never been productive?
Instead of casting
lish national prosperity we should
rine dining room; address by a acting
as
an
individual
floor
them aside and spending valuable time on other calls that could be
not for the present at least be too
:'
• A
y
productive — the old cards are kept. Then there is the salesman
prominent
speaker to be an¬ broker.
who tries to know everything about everything — it can't be done!
of
are
You
can
have too many ideas, too many prospects,
,
•
.
.
■
-— his knowledge
are only so many hours in a day.;
who wishes to be successful in the.
securities business to USE HIS TIME and NOT WASTE IT, When
The securities salesman has two things to sell
There
of his business and his time.
behooves
it
Therefore
anyone
the realization that wasted effort is
then
first
the
to ydo
thing
—
AND
PROSPECTS
ACCOUNTS,
SMALL REWARDS. ^
NOTICE OF IMMEDIATE PAYMENT
is
:?.;v
being expended becomes apparent
CUT OUT TIME WASTED ON
SALES
"V
THAT; BRING
IDEAS,
.
Keep the small accounts but put them on the mailing list; call
the telephone and do your business with them
them occasionally on
Railway Company has irrevocably directed The First National
Bank of the City of New York to publish appropriate notices calling for redemp- ,
tion all of the bonds outstanding in the hands of the public of the following issues: v.Great Northern
Go after the larger accounts where your time
expended will bring you rewards that are commensurate
with the headwork you are putting into your job. Boil your work
down to two or three essential selling ideas, and stick to them. > If
by mail or phone.
and effort
like special situations, pick out one or two in the low-priced
two in the medium-priced range and specialize in them.
If you have some accounts and prospects interested primarily,in
purchasing securities for income,'here ;again pick out a few good
ones and specialize.
Stop jumping all over the lot -w you can't sell
you
range; one or
Great Northern Railway Company "
First and
Refunding Mortgage 4%% Gold Bonds, due July 1,1961
On
the
all
January 1,1945, at 105% of principal amount
plus accrued interest to said date
prospects in your territory and you can't be offering a
security every day and at the same time know what you
different
are
doing.
As far
Great Northern Railway Company
Mortgage 4% Convertible Bonds, Series G and Series II
due July 1, 1946
,
*
On
new
accounts are concerned
—
prospect among thpse
funds, estates, etc., where the; larger
Take a plan, map it out, work it;" follow
individuals,, institutions, trust
v
General
:
as
account
can
be
found.
securities with an investor
January 1, 1945, at 101% of principal amount
v
plus accrued interest to said date
COUNT.
through and make your TIME
substantial
sums
One hour spent discussing
who can see and talk, in round lots and
for investment is worth several days of running
t
around in circles looking for the small
is
Great Northern Railway Company
Collateral Trust
On
\
so
small in the securities business,
put in effort where you can
4% Bonds, due serially to January 1,1952
small business
odd-lot buyers. The mark-up
the way to make it pay isUo
take out the rewards.
Short cut the
concentrate on the larger accounts.
—
January 1,1945, at 104% of principal amount
plus accrued interest to said date
Notice of Prepayment of
Eastern Railway Company
Northern Division First
Assumed
N
On
by
of
Minnesota
Mortgage4% Bonds, due April 1, 1948
Great Northern Railway Company
The Florida Southern Railroad
-
April 1, 1945, at 105% of principal amount /
plus accrued interest to said date
Due
On
Holders of the above bonds may
immediately obtain the full redemption price
thereof, including accrued interest to the specified redemption dates, by surrender^ '
ing such bonds with all unmatured appurtenant coupons to The First National Bank
of the City of New York at its office No. 2 Wall Street, New York 15, N. Y.
The above General Mortgage 4% Convertible Bonds, Series G and Series H, will
continue to be convertible in accordance with their terms into Preferred Stock of
Great Northern
Railway Company until and including said redemption date unless
and
after
-
„
J
,
'
3,
1944
November
1,
1944, holders
of
above-mentioned
obtain payment, prior to maturity, of the principal
of said Bonds and of the interest coupon thereon due
amount
January 1, 1945, upon presentation and surrender of said Bonds
and coupons at the office of United States Trust Company of New
York, Fiscal Agent, 45 Wall Street, New
York 5, N. Y.
to principal must be accompanied
instruments of assignment and transfer in blank.
Bonds
registered
as
Atlantic Coast Line Railroad
by
proper
Company
(Successor ot
The Florida Southern Railroad Company)
GREAT NORTHERN RAILWAY COMPANY
Paul, Minnesota
October
January 1, 1945
Bonds may
paid prior thereto as above provided.
St.
Company
First Mortgage 4% Bonds
»■■«?*
"
n
Jut™
■»*.»
By F. D. LEMMON, Vice President.
*
By F. J. GAVIN, President
Dated: New York,
N. Y. September 13, 1944.
Volume
160
Number 4328
THE COMMERCIAL & FINANCIAL CHRONICLE
1815
and
Pttm of
Protracted Prosperity
After 1945
Mcorgunisation of
mAMmim Ammrnrn
1945
in
RAILWAY^COMPAiJPtf
German
tinues
war
distributors
war
and
should continue
production
the
con¬
Would have greater sur¬
we
pluses to dispose of."
.''What
To Holders of the
v.
would
Line
Railway First Mortgage 4%
/
April 1, 1950
Seaboard Air Line
Bonds, due
A,'/■
Mr.
P'AA,'.
'
-
Consolidated Mortgage
-
that
.
,
%.
v?fA//
Georgia and Alabama Railway First Mortgage Consolidated 5%
•
(re-
5%
.
billion
and
services
,
-V
effect
families
hold
income
has been approved by the United States District Courts for the Eastern.
District of Virginia and the Southern District-of Florida.
Reorganization Com¬
of the securities
165 Broadway,
New York 15, N. Y., or with one of the subdepositaries named below,
under a Deposit Agreement dated as of October 1,1944, so that the Plan
inav be
promptly consummated. Copies of the Plan and of said Deposit
Agreement may be obtained from the Depositary or any subdepositary,
or
from the Secretary of the Reorganization Committee, on from
Messrs. Georgeson & Co., 52 Wall Street, New York 5, N. Y.
as a
mittee to carry out the Plan, urge the immediate deposit
above named with Chemical Bank & Trust Company,
problem and
bring
tion.
about
■'
on
and
Both
who
the
"looking
period
close
enough for all
1945?
is
The
depend
the
ers' durable
been
six
war
months
it
would
after
the
result
two
a
goods will probably show
decline,
as
sharp drop in Government spend-
:
"Beginning
;
"Reduction
due
layoffs
of
shutting down of
of
war
of
To the holders
"Psychological effect of lay¬
offs
on
who
will
those
too
may
be
still
"Desire
wait
to
merchandise and
names
are
not
known
to
the Committee. In order that
be
you may
that you receive copies, please immediately cut out, fill in
a
like
sure
ment
to
Europe will be
factor
portant
in
our
economy."
„
First and
TRISTAN ANTELL, Secretary
OTIS A. GLAZEBROOK, JR.,
,/0 Wall
JOSEPH FRANCE,;
Street, New York 5, N. Y.
A
■
.
CHARLES
ADKINS, Counsel
Street, New York 5, N. Y.
1
to
<
For terms of the
•
August 1,1944, to mature August 1, 1974,
4)4% from August 1, 1944, to August 1, 1949,
and thereafter at 3)4%.
A
new
bonds and the
.
Calvert and Redwood Streets, Baltimore 2, Md.
may
be ob¬
Kuhn, Loeb & Co.,
?
■
Mercantile Trust Company of Baltimore,
provisions with respect to the exchange,
Exchange, copies of which/
tained at the office of
The First National Bank of Chicago,
38 So. Dearborn St., Chicago 90, Illinois.
Old Colony Trust Company,
45 Milk Street, Boston 6, Mass.
■';/
-A
Room
mail this coupon)
:
52 William Street,/-
%:4r;'' New
and at the
(Cut out, fill in and
Refunding Bonds, Series A,
reference is made to the Offer of
SUBDEPOSITARIES
.
be dated
MARKELL,
Chemical Bank 8C Trust Company,
165 Broadway, New York 15, N. Y.
\
be exchanged
to bear interest at
Reorganization Committee
:
.DEPOSITARY
...
may
(Guaranteed by Southern Pacific Company)
Dated New York, N. Y., October 24, 1944.
15 Broad
provisions of such offer, said bonds
principal amount of
attached coupon.
LEONARD D.
Offer of Exchange dated
Central Pacific Railway Company
and mail the
York 5, N. Y.
"
,
v
:
/; y
v
following offices of Southern Pacific Company:
2210, 165 Broadway,
Room 662, 65 /Market Street,
San Francisco 5, Calif..
New York 6, N. Y.
REORGANIZATION COMMITTEE,
Room 1050, 310 South
Michigan Avenue,
■Chicago 4, 111.
Seaboard Air Line Railway Company,
Room 1206, 52 Wall Street,
New
York, N. Y.
The
undersigned
-
Line
owns
#
i :
of
Bonds. Please send data
on
Railway Company Plan of Reorganization by
the Seaboard Air
return
mail.
This
notice does
not
constitute
bonds. Such offer is made
an
offer to
exchange
only by the Offer of Exchange.
SOUTHERN PACIFIC COMPANY
Name.
Address
CENTRAL PACIFIC RAILWAY COMPANY
........
(City)
J
for
newer
24, 1944, addressed to the holders of the foregoing bonds whereby,
in accordance with the
for
an
they
_
fresher
items.
"Reconstruction goods for ship¬
of
Railway Company has made
that
lose their jobs;
(Guaranteed by Southern Pacific Company)
October
employed,
fearful
Refunding Mortgage 4% Gold Bonds, due August 1, 1949
Central Pacific
pay
overtime
work;'.
Central Pacific Railway Company
First
and
plants;
premium
elimination
to
NOTICE OF EXCHANGE OFFER
named above except the first four and the last one)
a
result of the follow¬
a
ing factors:
will
very
or
building and repairing of homes.
Soft
of
German
in
years
kinds, and home furnishings, new
liquidation, of
the war economy influenced, of
course, by the ending of the Jap
war.
If the Jap war should end
in
for
Such
things as automo¬
biles, refrigerators, washing ma¬
chines, major appliances of all
beyond
trend
¬
consum¬
goods which have not
available
more.
the
upon
great revival in build
a
ing and replacement of
purposes.
outlook
economic
The
mittee
'
we
of
twenties.
Committee represent¬
ing Underlying Mortgage Bonds of the Seaboard System (all issues
or by the Com¬
representing Seaboard Air Line Railway Refunding Mortgage
Bonds or by the Committee representing Seaboard Air Line Railway
Company First and Consolidated Mortgage Bonds or by the Committee
representing Seaboard Air Line Railway Company Three-Year 5%
Secured Notes should not deposit such certificates with the Reorganiza¬
tion Committee. Said Committees have approved the Plan and holders
of certificates of deposit issued by any of said Committees will be bound
by the Plan unless they withdraw their deposited securities within the
period specified in the notices now being published by said Committees.
•Copies of a letter, proxy statement and form of letter of transmittal
are being mailed to
security holders whose names are known to the
Reorganization Committee. There are many security holders whose
1945
beyond
similar to that
year,
a
represent about 75%
"What
and
V
15
or
should expect a rather protracted
entire
are
y;T :
manufacturers
the Jap
12
Referring to*the more distant
Mr. O'Connell remarked
population, probably
$7,000,000,000
to
$8,000,*
000,000 out of the total savings
of $120,000,000,000.
While these
a e rough
estimates, I think they
"Many distributors are count¬
ing on war-time savings to sup¬
port
business
dui/ing reconver¬
sion.
it is predicted,
as
a longer period to complete their
physical task of reconversion and
result in less unemployment."
hold
satisfactory solu¬
a
$40,$45,000,000,000;
between $3,000
and
ilies with less then $3,000
serious
j\:'/-AA\
more
or
earning
and $5,000 hold between $8,000,000,000 and $10,000,000,000; fam¬
brains of the country to
.
held by the
generally re¬
$5,000
families
which will take
one
they
somewhere/ between
even
very
it
incomes of $5,000
It is estimated that
earning
or
from the armed
a
is
that
with
000,000,000
■■
of
greater part of savings,
very
from
therefore, presents
the
can
will this have
women
and
billions
families
ceive
industry the
total could well be from 7,000,000
to; 10,000,000
unemployed.
This
the best
these
families
1944
of
part
If the millions of
most
and upwards.
personal
greater
great extent the greater part
same
Mr.
income
drop to $15 billion
"What
men
Seaboard Air Line Railway Company
Holders of certificates of deposit issued by the
$23
pro¬
would be
hold
decreases.
income
as
of ,$120,000,000,000.
the
will show
course,
The
workers in the lower income
very
<
Tampa & Gulf Coast Railroad Company First Mortgage 5%
Bonds, due April 1, 1953
A/A AAVA-''
undersigned, appointed by said Courts
personal
on
They, of
upon
a tremendous backlog
buying power., As a matter of
fact they do not hold it.
To a
psychology of the people?
Unemployment will likely total
4,000,000 to 5,000,000 by the end
of 1945.
With the discharge of
t
Georgia and Alabama Terminal Company First Mortgage 5%
Bonds, due December 1, 1948
The
have
reconversion
of
$125
address,
its
it
prosperity somewhat
experienced in the
important factors
leading to this prosperity period
of
his
as
fully
would have
the
Company First Mortgage
5% Bonds, extended, matured July 1, 1931
A A'/AY',,
A Plan for the reorganization of
of
holds
families
de¬
a
coming,
should continue for
war
that
war
high
In other
income
less in 1945.
>
.
The South Bound Railroad Company First Mortgage
duced from 6%) Bonds, matured April 1, 1941
•
for
1945..
taxes estimated for
well
The Seaboard and Roanoke Railroad
■
national
decline
The
,
Seaboard Air Line Railway, Atlanta-Birmingham First Mortgage
,
a
taxes?
a
Georgia, Caroling and Northern Railway Company First Mort¬
gage 5% Bonds, extended at 6%, matured July 1, 1934
4% Bonds, matured May 1, 1933
look
such
cause
months, this would give industry
large.
are
they have
"If,
that
resources.
economy?
these savings?
and if
as
If
it would
future,
Who
O'Connell asked "what effect will
Bonds, matured
f
could
we
run
cancella¬
before industry had
completed
neighborhood
estimated,"
billion for 1944
Continuing
January 1, 1934
-
is
billion."
Florida Central and Peninsular Railroad Company First Consoli¬
dated Mortgage 5% Bonds, matured January 1, 1943
{
,
"It
of individuals for
words
4% Bonds, due January 1, 1949
Bonds, due October 1, 1945
would,
commonly quoted figure of these
savings
is
somewhere
in
the
cline of $25 billion in the income
Railway Company Three-Year 5% Secured
Notes, Series A, matured February 1, 1931
Florida West Shore Railway First Mortgage 5%
50%
as
Seaboard Air Line
Up;.:.
O'Connell.
war-time
our
case
serious disturbances
been storing
savings
What effect will
continued
Government cutbacks
Railway Company First and Consolidated
Mortgage 6% Bonds, due September 1, 1945
..
spending?"
least $150
Line
Carolina Central Railroad Company First
of
he pointed out, "that income pay¬
ments to .individuals will total at
Railway Refunding Mortgage 4% Bonds, due
October 1, 1959
Seaboard Air
effect
ing and its consequent decline in
consumer
Air
"War-time
the
this decline in Government spend¬
Seen rifles Named Below:
Seaboard
be
almost unlimited
up
total
a
orders.
war
gram.
believe
to
seem
worker has
war
of
should be the
(Continued from page 1797)
the
practically
tion
an
im¬
post-war
,
THE COMMERCIAL & FINANCIAL
1816
cessful
Problems Of The Transition
trial
managements,
of the
1795)
by many observers,
(Continued from
*
xne
essence
ber that this is
problems of transition lies
in the degree
in doing
to which
we
succeed
Within
prolonged period. Just as
the transition to war took many
.
months and was
so
a
a
This
reached
be
many
6
Follow¬
.
are
frequently made without ref¬
to these war developments.
Chances
are
that
little value unless
have
intended
to
Pre-War Conditions
estimates
such
they
are
/
ture
reduced, because of the time ele¬
changes that have
to
:
the
Such
problems."
„
does
involved.
ment
3.
our
Disposal of Non-Agricultural
Materials
Raw
—
for the
make allowance
not
brought
It is possible only to
by the war.
a
point of view
a
limited
extent
been
think
to
There
will
.
be
large surpluses of steel, non-fer¬
metals
rous
terials
other
and
will have
that
ma¬
raw
to
be
dis¬
posed of., Government stock-pil¬
ing on a huge scale is bound to
be
resorted
tions
and
to
price regula¬
controls
will
continue.
Government
and
industry
and
Both
will be in favor of combating
the
deflationary effect of a free mar¬
ket in many of these commodities.
A
the war
the solu¬
tion of this problem less difficult.
There will be a sharp division of
opinion as to the best policy to
phase
prolonged
of
with Japan would make
follow to protect the
smaller and
high cost producers. Government
subsidies for such producers might
be attempted
even though
they
uneconomic,
This
is
in
line
wasteful.
and
with
a
policy of
assisting small business.
One might think that this pic¬
would not bring "transition
postJapanese war period. If they are
so intended, their value is greatly
apply
to
the
of
4. Federal Income Taxes—There
will be
of
a
great deal of discussion
revamping
structure
tax
our
the
try."
Our
of
that it-will be solved
are
within,
1
Foreign Trade—Foreign trade
8.
i$ becoming one of the
keystones
Government policy- in the fu¬
ture.
The trend will be to at¬
to
foreign' trade
a means of
supporting production and em¬
ployment.
This will be possible
only by new methods of conduct¬
ing foreign trade at variance with
pre-war policies., First an assur¬
ance
of peace and international
to; stimulate
tempt
on
huge
a
scale
as
cooperation will be required. Sec¬
ond,
tions,
of
huge loans to foreign na¬
to be repaid over a period
The Dumbarton Oaks
years.-
the
and
Conferences
Bretton
Conferences give the clue
Woods
of the trend.
in many
Future foreign trade
will.be conducted
areas
the
control
of
Governments or
foreign Government
largely
under
their respective
through
agencies cooperating with private
capital of foreign countries J For
the United States to develop an
enormous
increase. ; in
foreign
trade, it will be necessary to de¬
policies
velop
to
deal
Successfully
success¬
'/;//
with
our
reducing taxes.
be difficult to reduce
;■
-
Problems Can Be Overcome
Some conclusions stand out. Our '•!
,
.relatively, short
a
strikes
have
will
disturbances, perhaps J
some parts of the coun¬
social
and
the
problem
abroad
within
this
It will surely customers
Otherwise foreign
corporate or framework.
individual taxes if large deficits- trade will be much less than Lendcontinue.
The drive to aid pri¬ Lease at the present time.
and
We
duction.
of
Government-owned
equipment
in
private
plants.
While a difficult problem, chances
given
disposal
time.
exports.,
are
Future Cannot Be Judged Against
erence
detriment
a
Equipment—Considerable
thought and publicity has already- serious in
been
We will in effect
export trade.
subsidize
It may
last two years.
As a result it is
not possible as yet to talk about
the transition to the final peace
as, any
near
term development.
Such a level of business would
The immediate problems of tran¬
sition will be those following the be regarded as a boom against
A large vol¬
European phase of the war com¬ pre-war standards.
ing during the period while we ume of civilian business would be
are
still fighting Japan.
Addi¬ super-imposed upon continued ex¬
This combin¬
tional problems of transition will penditures for war.
ation is equivalent to a high level
come after Japan's defeat, but this
of normal peacetime activity ac¬
may not be until 1947.
/>■--;v
.i'„ Estimates of post-war; national companied by huge Government
'' V,-:
income and other economic data expenditures.
Germany's defeat.
as
The Disposal of Government-
J 7.
fully
a
this low point production
should rise as civilian industries
get going and large armament ex¬
penditures continue. The Federal
Reserve Board Index may reach
160 to 170, during the following
eighteen months while we are still
fighting Japan.
The Japanese phase
months
act
•
Owned
domestic market and one
our
for
ing
of the war will last many
after
for
a
about
months after her defeat.
gradual process,
the transition to peace will take
long time.
few months after Gerr/
a
will
large scale exports of agricultural
products.
It will force the devel¬
opment of two price levels—one
lo\y point of about 140 to 150 in
the Federal Reserve Board Index.
Actually the transition is likely
a
while we are still
many's defeat there will be
sharp slump in production to
Transition Will Be Prolonged
to be
This
remem¬
fighting Japan., '
this.
If success¬
ful, the effect will be to maintain
agricultural prices that are not
competitive on the world markets.
page
Also
only in part.
Thursday, October 26, 1944
CHRONICLE
from
problems will arise largely
■surpluses. :* Surplus of labor, sur-
ij
produce or j
surplus of .raw materials.
Our .)
problems of scarcities will be'
minor and will be largely solved
capacities
of
plus
to
within a, year or two..
J
The problems
so
V
face will be
large and difficult that it will
we;
impossible
become"-'virtually
to
"free enterprise" to do the
job without substarttial and."con¬
rely
on
tinuing Government controls and
intervention.
This is not
.
rosy
a
lor
those
who want
"Government out of business." It
prospect
is
far
better, however, to recog¬
nize the facts
they
as
are
and to
make the best of them than it is
to
one's
hide
sand.
the
in
head
Cooperation between industry, la¬
bor
Government can.be de- /
and
veloped which will assure us a
satisfactory solution of these prob¬
lems.
Policies can be designed,
bo,th in
domestic and foreign
our
affairs which will be of great
in
softening
trends
If
cooperation and policies
materialize,
over¬
can
we
If not,
these problems.
come
aid
\ deflationary
that, will descend upon us.
such
should
will
the
we
into stormy weather.
We
are
faced with a crucial period
ahead.
Only time will tell the
run
outcome. *■
'/•
.:
} -v' ■",
however,
will
These are some of the principal
for low¬
problems that will arise as a re¬
speak of the transition to the
er corporate tax rates even in the
sult of the substantial deflation
hybrid economy which will de¬
face
of
large deficits.
A tax in business from present levels.
It may structure
velop during the year or two fol¬ of affairs after the war.
may be evolved giving
They are problems largely result¬
lowing Germany's defeat.
The prove true that a deflation from corporations tax credits for a part
ing from surpluses.
Now I shall
problems that will face us during present conditions of the magni¬ of new capital expenditures and
The Central Pacific Ry. Co., a
discuss some problems of scarci¬
1945 and 1946 will be those of tude suggested will not be toler¬
for venture capital.
This, how¬
subsidiary of the Southern Pacific
ties. '■
ated for long without important
transition to civilian production
ever, is not likely to be done until
Co., announced Oct. 23 an offer
Problems of Scarcities — There
in an economy still dominated by oolitical and social repercussions.
after Japan is defeated.
/,/
whereby holders of $50,000,000 of
This may be particularly so if an¬
will be a temporary lack of suf¬
war.
In fact, the transition, to a
its
$88,211,000 outstanding first
5. Price Policies—This is a field
adjustment of
ficient capacity in some indus¬
civilian economy is already under other downward
refunding mortgage 4s, due in
substantial proportions will fol¬ of thorny problems. These can be tries.
The automobile industry
way
although on a very small
1949, may exchange them on art
divided into two major categories,
low Japan's defeat.
Such an ad¬
is the outstanding example. Here even basis for
scale.
■
ncwly-created first
opposed in character.
The first
the problem involves the decision
These transition problems de¬ justment at that time seems in¬
and
refunding
series A 4*4%
will, be problems of pricing of
evitable.
as
to the desirable expansion of bonds due in 1974.
pend upon the economic condi¬
If tenders do
commodities in excess supply. De¬
The problems that will/arise
tions that will prevail during that
capacity to meet a temporary not attain the $50,000,000 limit,
mands will be made for the estab¬
should
be
judged
against this
highly abnormal demand.
The the plan may be declared opera¬
period.
It is possible to paint a
lishment of "price'floors".
The
picture in general outline of these background. Certainly the wide¬ second will be problems of pric¬ successful solution is not readily tive by the company on the basis
found. The industry will be asked of the lesser amount of
conditions at present, " but obvi¬ spread publicity given to post¬
exchanges.
ing scarce commodities, particu¬
to provide employment on a huge
ously such a picture is bound to war prospects of a boom and full
The offer will terminate when¬
larly
consumers' durable goods
be subject to error.
The small and marginal ever the tenders attain the $50,The picture employment are substantially at and building materials. The Gov¬ scale.
that I have in mind is based on vafiance with the picture I have ernment will
impose "price ceil¬ companies will greatly increase 000,000 figure, or on Nov. 15,
drawn.
If actualities will be so
their relative standing if the large whichever date is earlier. Kuhn,
the following assumptions:
V.
ings" probably at the 1942 or 1941
much less favorable, than expect¬
(1) There will be at least a 50%
The pres¬ Loeb & Co. heads a nation-wide
level.
It will be much easier to companies hold back.
cut-back in the output of muni¬ ations, a surge of disappointment maintain the
ceilings than it will sure will be great to over-extend group of banks and brokers for
might sweep the country. (V
tions-after Germany's defeat.
be to maintain the floors.
In fact capacity from a long range point the solicitation of exchanges un¬
The answer is likely to der the plan, which is
(2) The Japanese war will last
the ceilings may be necessary in of view.
part of
The Most Important Transition
until the end of 1946 or longer.
Pacific's
most cases only for a short time be a compromise, with production Southern
long-range
Problems
//
(3) There will be no immediate
because of the rapid increases in higher than ever within 12 to 18 program of debt reduction.
The following are the most im¬
large scale attempts to support the
All bonds due in 1949 that are
supplies and keen competition. months after Germany's defeat
economy
by Government inter¬ portant problems that will arise The floors will be hard to main¬ but still insufficient to meet the exchanged under this plan will be
vention. The emphasis will be on against this background. There are tain
except
through
subsidies. demand and therefore insufficient deposited under the new mort¬
to eliminate the necessity for vol¬
encouraging and supporting free nine of them.
They may become permanent, ;
gage and, in addition, there will
enterprise.
untary or Government sponsored be
1. The Problem of Employment
pledged
initially $8,119,500
6. The Problem of Wage Rates
price controls.
principal amount of like bonds,
—-Unemployment^ even while we —Labor will demand the continu¬
Economic Conditions Likely to
There .might be a problem of most of which were acquired re¬
are
still fighting Japan,: will be
ation of present or higher wage
Prevail
lack of capacity to provide elec¬
large enough to demand action on rates.
cently by the Central Pacific.
A
rigid wage
structure
Under those assumptions I fore¬ a National scale.
tric power equipment. The growth
Serious unem¬
seems almost certain.
Under the
see the following conditions dur¬
of the
utility industry suggests
ployment will develop in many
pressure of an increasing labor
ing1 the years 1945 and 1946 pre¬ sections of the country on a scale
that the return to normal shift
suming Germany's -defeat within beyond the ability of local and supply wage rates will probably
operations in industry may strain
A
It
Hybrid Economy
far
is
more
in terms of pre¬
war conditions.
A pre-war boom
level of business might easily be
considered an unsatisfactory state
practicable
few
next
-
to
years
:
vate
■
enterprise,
stimulate strong pressure
Oemlral Pacific
Ryc
Gives Exchange
;
Offau
.
,
E. H. Rollins Offers
the next few months.
;
> ■
ctate communities to deal with it.
.
A gross national product no
higher than $130 billion as against
There will be
almost $200 billion this year.
question
(1)
(2)
of
the
ment-owned
Income, payments to indi¬
no
higher than $110 bil¬
as
rush to start Fed¬
eral and State public works.
of
viduals
lion
a
Govern¬
for
pumoses
employment. will be
debated hotlv.
against nearly $160 billion
of
use
plants
creating
The
We
all
are
aware
of the aids that will be given re¬
now.
turning
(3) Income from farm market¬
veterans, in
the
form
of
ings no higher than $14 billion as
against more than $20 billion now.
(4) A declining trend of com¬
loans, bonuses, unemployment in¬
surance,
etc.
The crux of the
modity prices and the cost of liv¬
ing.
ing present
problem however, wUl be in giv¬
,
2.
(5) Unemployment of four mil¬
lion
Index
A
Federal
of
dIusps
Reserve
Production
averaging
sub¬
revenues
output
penditures.
shall
not
discuss
these
esti¬
out
most
that
ward bias if
rest
a
they
carefully
are
with
anything.
assumed
and
be
great
In¬
sur-
the
be
to
time
products
be disposed
sharp re¬
required in the
a
substantial
quantities
sbione^ abroad.
>mt result will be
tion in farm
products
a
The
sharo contrac¬
income.
This prob¬
'moderately
down
even
though the Government will not
tolerate
tions.
widespread wage reduc¬
•/ ."
*'
/ '/' '■ '
pnd, wage rates are in¬
related.
Lower prices
and inflexible wage rates accom¬
Prices
timately
Government
with
an
will
even
then
more
faced
be
delicate task.
Control of prices and wages
to control of
profits.
such delicate
on
leads
This leads to
auestions
as
return
capital, profit margins at vari¬
levels
ous
of
production,
com¬
petitive
advantages and
disad¬
vantages and in effect the whole
lem will invite continued
en¬
gamut of industrial financial and
an
larged Government action to sta-
distribution problems of manage¬
ments.
This would be a hornet's
up-
They sug-
accepted
bilize agricultural
J the
,
Such
cost
0f
action
prices/even at
blibons
is
and
of
likely to
dollars,
be
suc¬
power
If large foreign
facilities.
superimposed on
the domestic demand, the problem
orders should be
of insufficient
Liberty Aircraft Stock
E. H. Rollins
underwriting
might
will
also develop in other industries
but these examples will suffice.
electric
arise.1
power
equipment
nest
for
for
any
Congress.
'
I
at home are
Sons, Inc., and
that
group
offered
unsubscribed portion,
shares
of
Products Corp.
Liberty Air¬
$1.25 cumu¬
lative convertible oreferred stock
of $20 par value.
a
share
plus
from Oct.
The price is $25
accrued
dividend
1,
Owners of
common
stock of the
received prior rights to
buy the preferred at $25 a share
company
the rate of
at
subsidiary
we
the
80,000
of
craft
have discussed.
are
and. Gf^manv while
Administration
.
them
24
Oct.
Problems of scarcities
Manv of
problems
flowing
from the larger
ones.
Others will not arise until after
the defeat of Japan.
We will have financial prob¬
lems arising from the cashing of
war savings bonds.
We will have
political and social problems aris¬
ing from keeping large armed
forces -on land, sea-,•.and in the
air
fighting Japan or policing
ones
&
Van Alstyne, Noel & Co. head an
capacity to produce
panied by much lower volume
spells only one thing — a sharp
Other Problems of Lesser Im¬
contraction in profits and many
portance—There are many other
losses.
This will be the case at
least
for
a
while
immediately problems that could be discussed.
I am purposely leaving them out
upon Germany's defeat and de¬
for several reasons.
They are on
spite the relatively high, level of
the whole less important than the
business that will prevail.
The
worked
lower level of business than
generally
Farm
agricultural
that will be
mates in detail but will make the
comment
same
of
desoite
ex¬
will
have
will
,
of
agricultural
At the
duction
Government
stantially below Government
I
will
of.
about 160.
(7)
of
which
Board
workers jobs/
war
Maintenance
come—There
persons or more.
(6)
-
come:
ferred
for
common
one
each
held
offer expired
on
will
ment
of
the
be
a
Marine
made
on
of
7.
,
of
This
from sale of the
$1,000,000
Midland
to
reoay-
loan
Trust
from,
-Co.
July 24/ The' remainder
working caoital.
-Each-share-of-new preferred is
convertible
into
two
shares
of
-
common
stock,
subject to .adjust¬
ment in the conversion rate.
,
pre¬
shares
Oct.
aonlied
wiU be added to
■
share
ZVz
Oct. 23.
Net proceeds
stock
•
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4328
160
W. M. Brock Nominated For Pres.
;
;
"
.
tlie
decline
in
1915 to
.
(Continued from page 1797)
. had come'naturally enough under
'
,
cyclicaL advance ' and
activity from
during
1921:
Stock
business
Prices
(Dow-Jones Indus-
storm-center.
that the
Pre-War
—
1915
low, Feb. 24:
(close) 54.22.
V High—Nov. 3; 1919: (close) 119.62.
Low—Aug. 24, 1921 (close) 63.90.
of
the
to
say
whole
periods of price collapse
depression
had
taken place
at the end of, or
closely following the Civil War
industrial
and
(New York and Boston)
Megrue
Brock,
Dayton,
•
leader in savings and loan
week
for
Further diagnosis plainly
■
sible
was
internationally / prominent
placed in nomination this
presidency of the United States Savings and Loan
League, which will elect its 1945 head at the annual meeting in
Chicago, Nov. 13-15. President of the $30,000,000 Gem City Building
and Loan Association of Dayton, which he has served for the past
40
the
years,,
prospective
President of the organized
and
home
financing
new
thrift
business
in
~
President
this
active for
more
the
organization
been
has
year,
than
decade in
a
points
active
in post-war advisory ca¬
pacities to the State government
the
commodity price col¬
^■V7
Low—Rates prevailing, 1921-1922, lapse. The evil seeds of the col¬
lapse were sown' in the years of
61/2% to 4%.
the vicious jump from 69 to 167.
Industrial Production: (Federal
To be sure, the action of the Re¬
Reserve Bank Index)
serve
Banks both presaged and
Pre-War—1912-1915 yearly aver- precipitated the downward turn
'.
age: 55.
"
: V1'
'■ :•'' in commodity prices; but if the
in
Maryland.
Mr.
"
.
Brock
Chairman
tors
of
Bank
of
the
has
the
Vice-
been
board
direc¬
of
Federal
Home
Cincinnati
of
since
,
High—Feb, 1920, 82.
Low—April, 1921, 55.
action
v
not
;
:
'•
Statistics) V
v
High—rMarch, 11920, 115.6.
Low—Feb., 1921, 81.7.
;
.
,
'i
/11
>
High—March, 1920, 125.4.
Low—July, 1921,71.6.
;
Wholesale Commodity Price
•
(B. L. S.)
Pre-War—1912-1915 yearly
; a«e:
69.
■
;
aver-
High—May, 1920, 167.2.
;
Low—June, 1921, 93.4.
It
will
be
:
that
|
stock
immediately preced¬
ing the present war, 1935-1939, the
wholesale commodity index aver¬
aged 80.5. Because of the accumu¬
lated obsolescence and shortages
of goods prior to this war and the
colossal demands for war produc¬
tion, there has been more reason
for commodity prices to boom up¬
ward
than
at
the
time
of
headed downward toward a final
low of 63.90 in
In
January,
August, 1921.
1920, the Federal
tion, but a price advance of only
29%, the unmistakable effect of
price ceilings.
«
as
Council,
having
Chairman last year.
served
the
on
;
League he
Executive
Henry P. ;Irr
Brock
M.
important
Committee
on
Eco¬
nomic Policies and of the Insured
the
country, is
Council
Union
of
a
member of the
International
the
of
Building Societies and
Savings and Loan Associations,
and was a delegate to the last in¬
ternational congress of the busi¬
ness, held in Zurich, Switzerland,
six years ago.
W::;
For
World
years of tremendous war produc¬
statutory advisory
Federal Savings and
the
tee, and has been Chairman of its
W.
,
a
1936,
some
Council,
the
Committee : on
Trends, the- Constitution' Commit¬
are
120% advance from War I.
Actually, however, the in¬
the 1915 low closing, successfully
dex has risen from 80.5 to the
discounted danger ahead by turn¬
present level of 104, or 29%. The
ing downward from the high of
142% boom of the last war cov¬
119.62 on Nov. 3, 1919. By May of
ered about four and one-half war
1920, when wholesale commodity
and post-war years. In the pres¬
prices turned downward, stocks ent war we have
already had four
were already in the lower 90's and
prices, after
'
noted
has
Loan
the
In the United States
It is easily apparent
in the years
V
member for
Advisory
served
that many,
strikingly different
today from those of World War I.
^
of
group,
Loan
been
conditions
Payrolls (B. L; S.)
;
«
,
a
years
taken, the inevitable
break in prices would have been
delayed, only to take a nose-dive
from still higher levels and with
immeasurably more tragic results.
Employment (Bureau of Labor
"V
and has been
the rediscount rate had
on
the
for
work
business, and that Mr. Irr, this
year's Second Vice-President, is
to the condition which made pos¬
High—Jan., 1920, 6%; June, 192Q,
Ohio,
activities,
the
and the War of 1812.
Pre-War—Rates prevailing, 19151919 4 to 5%.
.
.
safe
is
Similar
Rediscount Rates (Federal Reserve
Banks
It
cause
real
the
tic
.
-
real
was
business depression was this dras¬
decline in commodity prices.
■'
.
which
came
01U. S. Savings And Loan League
Wt
Finally the collapse in commod¬
ities
trials)
:
the circumstances.
Vice-President
the
of
League the Nominating Commit¬
tee names Henry P. Irr, President
of the Baltimore Federal Savings
and
Loan Association.
The
Nominating
>
Committee's
report went to the 3,586 member
savings and loan associations, co¬
operative banks and State organ¬
izations
year-old
which
the
compose
United
52-
States
Institutions ^Committee.
President
last
-
He was
Ohio
League, and
had served on the principal com¬
mittees of that State organization.
Savings
and
year
of the
Loan
His civic leadership in Dayton
includes the treasurership of the
Wilbur
and
Orville
Wright
True,
there
as
a
teller
in
1904
and
has received successive pro¬
motions which placed him in the
are
Sayings And
.
.
-
.
.
,
resent the Securities and
,
perity/
•
/
D.
C., which has shown
a
steady
idend arrearage.'
Exchange
Commission at the Western Goy<
ernors' Mining Conference to be
held in
Butte, Mont., on Nov. 10
and 11.
I-;
The
:
•
meeting called by Governor
Sam C. Ford of Montana will dis¬
problems involved in financ¬
ing mining enterprises.
cuss
The Business
Hew
We
Live—Fred
G.
Clark:
and Richard Stanton
Rimanoczy-D. Van Nostrand & Co., Inc., 250
Fourth Ave., New
York Citycloth—$1.00.
Your
Stake
in
Community *
Planning—National Committee pri
Housing, Inc., 512 Fifth Ave., New
York 18, New York—paper.
Your
Servant the
Moleculer—
Walter S. Landis—The Macmillan
Co.,
N,
60
Fifth
Ave.,
New
York,
Y.—cloth—$2,75,
R. L. White & E. J. Platts
With Clifford J. Murphy Co*
PORTLAND,
L.
mond
Platts
White
have
MAINE
and
become
Congress Street.
Ray¬
—
Everett
J.
associated
with Clifford J. Murphy
Co., 443
Mr. White
was
formerly with Goldman, Sachs &
Co. and prior thereto conducted
his
own
investment
Portland under the
&
business
name
in.
of White
Co.
Attractive Investment
The Public National Bank and
J
duction, employment and payrolls
Mining Meeting
Commission;
Association
Marked Growth Of
,.
Be At
Me¬
Commissioners Sumner T. Pike
viee-presL
dency of the Dayton Community arid Robert O'Brien, Baldwin B.
Chest; directorship of the Dayton Bane, Director of the Securities
Better
Business
Bureau,
and and Exchange Commission Corpo¬
chairmanship of the endowment ration Finance Division; John, L.
fund of the Dayton Art Institute. Geraghty, Denver Regional Ad¬
He entered the employ of the ministrator, apd Day Karr, Seattle
Gem
City - Building
and
Loan Regional Administrator, will rep¬
morial
League.
It points out that Mr. Brock, who chief
management responsibility
still
many
has been serving as First Vice- in 1931.
-T
months of war ahead, with the
rates abruptly from 4%% to 6%,
and a further rise to 7% followed post-war years and their special
in June. This led to drastic re¬ problems still later. Exactly what
will happen with prices cannot be
strictions of credit by commercial
banks which further aggravated predicted, but the case has been
amply proven that prices can be
an already bad situation.
held down during a war
Industrial
economy.
production
started
As to the post-war years, if jobs
downward early in 1920.
The in¬
are- to be had and large amounts
CHICAGO—One out of every four of the
dex fell from 82 in Feb., 1920, to
savings and loan asso¬
to
be taken
in taxes',
industry ciations and cooperative banks with more than $5,000,000 in assets
55 in April, 1921, a drop of 33%.
must prosper. Industry requires a
gained $1,000,000 or more apiece during the first half of 1944, the
Despite extremely adverse condi¬
United States Savings and Loan League
reported.
Morton Bodfish,
tions, however, it did not crack its free, or nearly free, economy to
prosper.
But
speculative com¬ Executive Vice-President, said that 55 out of the 217 member insti¬
pre-war average.
tutions of the League in.this group made gains of this size as comEmployment started tumbling modity price booms are by no
means
a
necessary accessory to
pared with 19
/
<&from 115.6 in March, 1920, to 81.7
business prosperity, as is plainly for the same
in Feb., 1921; and payrolls from
growth in and out of depression
shown in the prosperous years, period
the
125.4 in March, 1920, to 71.6 in
reaching $63,694,089 as of June 30,
1921-1929. During this period the previous year.
1944.
Holding its place as second
July, 1921.
yearly average of the wholesale Th e V growth
in rank among the
Then in May, 1920, wholesale
League's mem¬
commodity index moved upward rep or ted
ber institutions is the Old Colony
commodity prices started their
from 97.6 in 1921, to 103.5 in 1925,
among
these
fall.
Note
that
the index had
Co-operative Bank, Providence,
and then actually eased off to 95.3 instit u t i o n s
added no less than 142% to its
Rhode Island, which had $41,261,in 1929. In the same period in¬ breaks all
095 at mid-year.
pre-war average of 69, and regis¬
/
dustrial production
climbed al¬ records of the
tered its high in May, 1920, at
Geographical distribution of the
most
steadily from the yearly past 15 years.
167.2. From this peak it went into
over-$5,0'00,000 associations and
a gruelling month-by-month de¬ average of 58 in 1921 to 110 in
Altogether,
cooperative banks is the widest it
200 out 4of the
cline to 93.4 in June, 1921, a col¬ ; 1929.:
^;. /• •
has
even
been,
Mr.
Bodfish
If it is correct to conclude that 217
increased
lapse of 44%. War demand had
pointed out.
There are institu¬
ceased.
Shortages in both con¬ the real cause of the 1920-1921 de¬ their assets,
tions at least this large/.in 35
sumer and capital goods were ap¬
pression was the drastic collapse and 30 insti¬
States.
At
the
previous preparent, but the demand was not in commodity prices and that the tutions moved
depression high mark of savings
seeds of the collapse were sown in
sufficient to support the highly in¬
up
into
the
and loan growth, the more-thanover
flated price levels and extended the years of the preceding spec¬
$5,000,$5,000,000 institutions^ - were - lo¬
ulative boom, then it must follow 000
g r o up
credit of the day.
(
\,
V \ ,4 >
cated in just 31 - of the States.
The
business mortality which that had the boom not occurred, during
the
Morton Bodfish
Connecticut, Florid a Georgia,
fir st
six
followed was high. Manufacturers the resulting collapse would not
North Dakota, Tennessee and Ver¬
months.
There are now 69 mem¬
have followed.
saw about 40% of their liquid in¬
mont are among the States which
ber
institutions
of
the
League now
There are many business and
ventory values fade to zero in a
have
institutions
in
this
year.
Commercial failures (Dun financial problems ahead of us to with more than $10,000,000 in
group and did not have them, at
assets and this is the longest list
& Bradstreet's) in the four years, be
solved, and still others may
the close of the 1920's.
*
1917-1920, averaged $188.7 million, arise. It becomes plain, however, of these since 1930.
The most spectacular gain of
whereas in the succeeding four that any
cause
for a post-war
years,
1921-1924,
the
average business depression similar to the all, that of the Coast Federal Sav¬
Bright Possibilities
climbed to $583.3 million.
last war and stemming from a ings
and Loan Association, Los
Giant
Portland
Cement is a
Falling stock prices had merely commodity price boom is simply Angeles, was a net addition of low-priced stock hi an industry
Gains of more than with a
represented investors' readjusted hot,in.the making. There has been $8,450,758.
bright future and. offers in¬
opinions of corporate values. The no boom in commodity prices and, $4,000,000 each were chalked up teresting
possibilities, according
advance of the rediscount rate had so far, there is no apparent reason by the First Federal Savings and to a
circular prepared by Lerner
signalled the Reserve Banks' opin¬ to expect dne; A period of some Loan Association of Detroit, and & Co., 10 Post Office Square,
ion that it was time to curb a too price readjustment may well oc¬
by
the
Carteret
Savings
and Boston. Mass.
Copies of this cir¬
rapidly expanding credit structure cur when the present war demand Loan Association of Newark, New cular may be had from Lerner &
is over, but industry can, and fre¬ Jersey.
which, in turn, was financing an
Co. upon request and also a cir¬
inflated commodity boom. Buyers quently
Largest institution of the sav-^ cular on Riverside Cement class A
does, take an orderly
of goods had become cautious or
ings and loan type in the country
downward
which the firm believes is an out¬
price
readjustment continues to be the
had taken to the sidelines entirely.
Perpetual
without harm to industrial pros¬
The start, of the declines in. pro¬
Building Association,. Washington, standing cement stock with a div¬
Reserve Banks of both Boston and
New York raised their rediscount
SEC Commissioners To
Trust Company of New York of¬
fers
an
cording
attractive investment, ac¬
to
a
memorandum
on
the
Sept. 30th, 1944 statement of the
bank, which is being distributed
by C. E. Unterberg & Company, 61'
Broadway, New York City. Copies
of
this
may,
interesting memorandum
be had from the firm upon,
request.
*;
.
.
Thursday, October 26, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
1818
though I shall not press this point
Compulsory Military Training
7
In Peacetime..Tor America?
today.
As
.
(Continued from first page)
starts in the home
aided by the Church and
School.
If the
Government is
a
this
on
measure.
The
second
question is this:
Why all the hurry?
There are
By REV. CYRIL F. MEYER
roughly 11,000,000 Americans in
smart, it will not barge into the
C.M., Ph.D.*
home where it does not belong. the armed forces who know a lot
our
There are many Americans who more about real war than
answer of those who are lining up
These boys have
behind
the
Gurney-Wadsworth think we have too much govern¬ Congressmen.
faced hunger, exhaustion, strafing
—
Bill
(H. R. 1806) and the May mental nosiness, as it is.
and murderous machine-gun fire.
Bill (H. R. 3947).
Both of these
The third argument professes
bills
have
the
same
objective, alarm at so many buildings which If this measure becomes law, it
will affect not them, but their
namely, to impose on bur Amer¬ will be idle after the war is over.
sons.
Do they want their sbns to
ican boys
one year of military Why let this equipment
go to
receive this training compulsorily?
training. The proponents of these waste?
We built
camps,
and
bills urge their passage on the schools, etc., and now they will be At least we should have the de¬
plea that this year of peacetime white elephants.
My answer to cency to give them a chance to
answer the question.
They won't
compulsory military training will all this is: "So what?"
For 12
keep us out of another war.
If I years we have been spending like it, if they come back to find
that we have passed this law, just
were
convinced, for one minute money like a drunken sailor, and
passed the Prohibition
that the only way we could keep now we are supposed to become like we
out of a future war would be to excited about the waste of a bil¬ Amendment, when they were out
of the country.
There is no need
pass
this bill, I would preach lion or so. Why all the excite¬
at ail to rush this bill through
from the housetops for its pas¬ ment?
In this era a billion dol¬
sage.
But I am not at all sure lars is only "chicken feed." As a Congress. Wait until the hysteria
of war has subsided, when
our
that this is the right answer.
matter
of fact,
these buildings
heads
will
be
cooler
and our
and
Opposes Program
•
democracy
stand
Meade
Senator
makes
What
the arguments
are
doubtful
very
me
which are ad¬
of this legisla¬
them miss the
is
other
in urging mili¬ judgment keener.
could be sold or put to some
use.
I see no sense
is
There
T
tiling
one
should
we
the build¬
remember. The members of Con¬
tion.
ings.
One might just as sensibly
gress are sensitive to the attitude
point completely.
Others toucjt argue that because Mr. Jones of their constituents back home.
the point, but do not appear con¬ bought a crutch to help his son
If enough people let their Con¬
vincing.
Let's take a look at Jimmie who twisted his ankle in
gressmen
know that they defi¬
those which really do not relate a football game, now that Jimnitely oppose this measure, I don't
to the issue.
Remember, the real mie's ankle is healed, he should
think they will risk the loss of
issue is whether or not the future twist his other son's ankle, so that
reelection by voting for it. In the
safety of America depends on this the crutch could be used.
last analysis, if this bill becomes
year
of
compulsory peacetime
Putting aside these irrelevant a
law, it will be nobody's fault
military training.
The arguments arguments which are so much
but our own.
■
favor
Some
of
in
vanced
tary training just to use
consider irrelevant may padding to create the impression
be reduced to these: (1) the phys¬ that the reasons for compulsory
ical fitness argument, (2) the dis¬ military training are overwhelm¬
I
which
cipline argument, (3), the use
facilities
The
runs
argument.
physical
argument
fitness
like this: Statistics
25%
about
of
show that
of our boys were
not
physically fit to enter the armed
services.
A year of compulsory
military training would correct
this unfortunate condition.
The
main objection to this
legislation pending in Congress is
that it is definitely a rejection of
the American tradition of a vol¬
untary peacetime army and navy.
We
have
always
gone
on
the
principle that "a willing worker
is better than a forced worker."
[f we need, for purposes of na¬
ing,
security, "a larger peace¬
argument fails to mention that
of the reasons for rejection time army and navy than we had
before the war, let us have them
were organic troubles that no year
of military service could correct. by all means.
But what is the
But, aside from that, we have al¬ matter with expanding our pres¬
many
ready in our elementary,
second¬
Training
Corps at colleges? What is wrong
with
making enlistment in the
services attractive? What is wrong
Officers
Reserve
ent
schools and colleges, facilities
physical education. Why not
expand these, if necessary, and insist that especially in our 'high with
ary
for
"selling" army and navy
schools, the boys are taught skills careers to those who are inter¬
By what title do the pro¬
which will make them good fight¬ ested?
er^ later on, if they should be ponents of this measure assume
needed?
The
Government has that the ONLY way to secure na+
enough to do without running a tional safety is by this compul¬
military
training?
Why
gigantic physical fitness program. sory
The discipline argument points should we reject a good method
that has worked in the past, when
with pride to the products of mili¬
tary training: "See how respon¬ there is absolutely no proof that
sible the Army and Navy makes it will not work in the future?
men!
It gives them a stability of
Another reason why I do not
character which the schools were like this measure is that I believe
never
able to do."
Personally, I it will create a definite military
We shall
question the fact. The discipline caste in this country.
of the Army is the discipline im¬ find ourselves facing this paradox.
posed by authority.
If you don't While We seek to protect democ¬
do what you are supposed to do, racy from attacks from without,
you get a dose of K.P. or worse. we shall slowly be undermining
There is not a great difference be¬ it from within. And I might ask:
tween the discipline of Sing Sing Against whom do we need this
and that of the Army.
If we hark gigantic pool of manpower?
back to the post-war period of Against Germany? Against Japan?
World War I, do we find these Hardly, if we keep our threats, to
noble products of military train¬ make sure that
these countries
ing edifying the rest of us by their will not be in a position to wage
"stability of character"?
If my war for many, many years to
Then against whom?
memory serves me well, I think come.
The
that most of the boys were so de¬ answer
should
come
from
the
lighted when the discipline
of the
that they
really went to town and made
"whoopee."
We don't want that
kind of discipline.
What we do
Army
want
was
is
removed
self-discipline based on a
man's appreciation of
his relation
community and springing
from his willingness to make a
contribution to the democracy in
which he is fortunate enough to
live.
And it is not Uncle Sam's
his
to
job
to
pline.
teach that kind of disci¬
That is your job who are
proponents of this measure,
I don't know the answer.
cause
I
Before
ask
be¬
close
I
would like to
of the propo¬
of this measure.
Why is it
questions
two
nents
that it is not an issue in this pres¬
ent
to
Congress
should
them to
we
sider
vote
of
for
many
know
matter.
this
If
We
campaign?
asked
are
the
being
return
men
to
and we
how they stand on
Are
we
to
return
Washington uninstructed?
do that, then the
that
we
might
By
on
to
address made by
Meyer at the luncheon of
Assembly of the
York
Daughters
Rev. Dr.
Pennsylvania, Oct. 12, 1944.
Hotel
accept and even to advocate,.
As citizens we must, I feel, rec¬
of
themselves? I should like
to know how Senator
absolute
the
ognize
military
universal
time
some
to
come
necessity of
training for
as insurance
against possible disaster*
I fer¬
vently hope that out of ''this war
there will emerge feome form of
organization that
world
Wagner and
be
and
trust
will
not
part in such a
i% appropriate
world
play
be afraid to
again
But, never¬
organization.
theless, I do not believe that the
millenium is just around the cor¬
ner.
Institutions of this sort ma¬
eration
take
may
gen¬
a
several generations to
or
world organization that
depended upon to keeprthe
forge
can
It
slowly.
ture
a
be
internationally as effec¬
local police force keens
the peace within its own baili¬
wick.
:
7r
peace
tively
as a
For
Women
as
Well
as
Men
these days
have to mobilize for our own
far
fense
more
did this time.
that
learn
some
form
ing
premise of this afternoon's
as a
discussion,
l
that
premise
that
"universal" means
as
well as
should be included,
women
young
young
the
ready to accept as a
even
am
men
such
duties as
military
performed
being
traianed
being
women
are
the
by
for
Wacs,
aides,
nurses
the
of these
like,
are
con¬
airplane
of
tingents
and
of appropriate
training
spotters,
canteen
workers,
even
though some
services not now per¬
by
women
in
uniform;
*An address made by Dr.
tion
at
of
the
New
Jersey
Davis
Associa¬
Colleges and Universities
Seton
Hall
forestry
College.
Orange, N. J., Oct. 12, 1944.
South
and should learn from our
can
our
regular jobs more effec¬
own
But
tively.
at the
the armed serv¬
time of-
to do in
continue
to
not
we
may
time expect
same
doing
about
colleagues
military
ices
the side.
on
And
finally, I am not in sym¬
pathy with the suggestion that a
under a universal military
training plan as good a job as
they
are
for military training
should, I think, distinguish sharply
men
period set
a
thinking between three dif¬
to
general edu¬
in
cation by means of
"courses that
ferent
be devoted
shall
will be accepted for
school
or
credit by any
college in the country,"
quotation from
therefore
recent news¬
guaranteed
not
This
wording.
to
a
article being from memory
paper
and
proud of doing
so
In considering whether such a
suggestion is reasonable, / we
young
the
now
in time of war?
by law out of the lives of
considerable part of
aside
would
as
mean
all
federalization of education on
with
education)
(including
physical
that should
be included in a pe¬
riod
of universal training is
such
literacy education as may be nec¬
to enable every man to re¬
orders and
essary
and to ^transmit
ceive
other
information
military
curately and
,
My first plea, both' as a citizen
as an educator, is, then, that
and
period that may be demanded
•by law of every young man for
any
universal military training be de¬
voted, with singleness of purpose,
training, and to that train¬
to that
missioned
and,
specialists,
the
.
training of commissioned officers.
Let
consider them
us
in
turn.
Training Rank and File Main Job
The'
job,
rank
and
necessarily be the major
the
be
of
scheme
training.
think
personally
I
and,
should
be
of the
training
file will
sole
of
job
any
universal
The essential things to
compulsory
taught
physical fitness, a
are
the ways of an
familiarity with and some
measure of proficiency in the use
of the basic weapons of foot sol¬
diers,
and,
above
all.
morale
knowledge
of
army,
which
self-discipline
means
and
That
is
generally.
discipline
of; military
Expeditious
•.
7/
and
Training/
training,
kinds of military
the understanding and acceptance
intelligently.
Intensive
For
ac¬
our
namely the training of the rank
and file, the training of non-com¬
vengeance.
a
military training to military
men.
The only education other
than of a strictly military sort
all
about
that
can
one
a war that may
It would be fool- ;
ish, once peace has returned,. to
train everybody in the details of .
modern mechanized warfare, be- '
preparation for
as
be years away.
those
cause
will
details
change
train¬ from year to year. They are
ing be given as intensively and changing now almost from week
But the fundamentals
as
expeditiously as possible, and to week.
They are all that
that the young men be returned do not change.
to civil life with as little
delay
as
possible as soon as the minimum
requirements of national security
are
accomplished.
Let us not
countenance the mixing of a lot
of
dispensing
Federal
ness
of
sweet¬
this
All
how
long
raises
four
perifid of universal
The
a
sug¬
gestions mentioned above, which
have come from people in high
places, are tacit admissions of
the
commonly
considerably
fact that the full year
is
about
talked
than is absolutely neces¬
sary for any strictly military pur¬
pose. There is also other evidence
longer
the
same
effect.
in Washing¬
ton,
when fighting for certain
plans that might have provided
a more adequate supply of tech¬
nically trained men for the war
Early last spring,
industries, I prepared a memoran¬
dum in which I mentioned what
supposed to be common knowl¬
edge to the effect
to
train
a
combat service.
that it takes a
new
recruit for
The first man I
memorandum to im¬
my
mediately said, "The Army claims
it can now train combat replace¬
ments in four
It is also
a
months."
well known fact
Navy recruits not selected for
vanced
that
ad¬
specialist training are now
try
to
pay
impart
to
in
I believe that they
be effectively imparted in
months, and that that ought
to be the limit of what is
required
by law of everybody.
Commissioned
other
the
At
question of
the
training needs to be.
various sweetness-and-light
basic
I
could
preparing to defend ourselves
if and when we have to.
to
will
it
time of peace.
job
and light with the stern
<
hope to impart to all and sundry
of our citizenry in time of peace-;,
ing only, that that military
showed
before
so
trainees, may
Federalized Education Opposed
year
formed
Necessary?
Year
Full
a
peace
now
Waves, Spars, and other groups of
women
now
serving,
including
the
the
of
some
de¬
quickly than we
I am, then, ready
accept the necessity for some
of universal military train¬
to
a
just
defense,
national
for
ing
time
of air-power, we may some
Is
we
to go to
law
of camp for all or a
part of a period of military train¬
of
In the meantime, in
by
compelled
C. C. C. type
en¬
can
lasting peace.
I also hope
that the United States
force
have given them a
take our boys for a year
declare
citizens we feel bound
as
con¬
the New
military training. Why don't they
Catholic
of America,
and
colleges of the meas¬
our
that
ures
"mandate" to reach into our homes
*An
HARVEY N. DAVIS*
DR.
fects
weeks of basic training. ,7
seven
national defense in an
In the light of these facts why
emergency.
I have no sympathy
should the armed services now be
whatever with the suggestion that
asking that a full year of uni¬
perhaps we can combine a period
versal basic training be required
of
"national service," whatever
by' law
of
every
able-bodied
that may mean, with the proposed
young man?7 We civilian educa¬
period of military training.
I
tors have heard much lately about
heartily agree that the C. C. C.
the new and highly efficient edu¬
camps
of the great depression
cational processes devised by the
were an admirable form of relief
armed services for getting quickly
and that they did much good both
and effectively into the heads of
to those who went to them, and
draftees what they have to know.
to the areas in which they worked.
We
have
been duly impressed.
But I have no sympathy whatever
We have also been galvanized into
with
the suggestion
that, every
active soul-searchings as to what
young man in the country should
ing
What Kind?
after
fleet
adequate
I be¬
lieve in leaving education to the
educators just as I believe in leav¬
Universal Training
of
periods
have, been sent
as
little as
recruits
the
into
certain
in
that,
and
stress,
view
levels
our
tional
accomplishment of the end
which is to provide for
to the
in
The discipline suited to
mothers.
Catholic Prelate
feel
I
however,
citizen,
a
strongly that we should proceed
with utter singleness of purpose
being sent directly into the fleet
after only ten weeks at boot camp,
Officers
extreme
are
the
commissioned officers.
They, like
everybody else,- would have their
basic training in the regular way.
Then they could well be further
trained in an enlarged West Point
and
an
enlarged Annapolis, in
special Army and Navy schools
for turning selected enlisted men
into officers, in State militia or¬
ganizations, and to such an extent
as may be necessary, in R. O. T. C.
units in the colleges. Officer train¬
does not seem to present' a
problem that needs to be solved,
ing
be
could
or
scheme
of
training."
solved,
through :
compulsory
a
universal
,/
.
Non-Commissioned
Specialists
Finally, there are the non-com¬
or petty officer special¬
missioned
that
ists
our
in
reserve.
civil¬
ought to have
contemplated
ian army and navy
In
some
months
specialties
(or
another
four
less)
of
specialized training be¬
yond
the suggested four months
would suffice. ,In
evfen
of basic training
other specialties
eight
or
ten ad¬
ditional months would be needed.
Let us assume that the Army and
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4328
160
Should Not
Navy continue to give under uni¬
versal
service
the
specialized
now giving. Let
during the last
training they are
that
assume
us
month
of
better
the
men
basic
vanced
training in
that
us.'assume
lowances
training
jSuch
the
colleges. It would, I think, be
best, both for the armed services,
and for the schools and colleges
or
specialty. Let
the
and
pay
al¬
themselves, that each
appropriately higher
than during the ^ universal basic
training.
Let us assume that a
are
passing
man
has
specialist
a
universal service
course
when
the
And
mobilized.
ciyilian
finally, let
in
that
sume
courses
useful in civilian life.
whatever
doubt
circumstances,
ample
non-commissioned
no
a
fairly steady
into the
training, and
training
as ap¬
pealed to him.
supply
specialists
If
in
do
Stettinius
Washington
partment
the
at
Oct.
on
for
State
that
24
De¬
invita¬
full dress United
a
Na¬
security conference in this
country to endorse the tentative
charter
Oaks
framed
at
Dumbarton
be sent out in Decem¬
may
ber and the conference itself may
be convened in early winter.
A special dispatch from Wash¬
ington, on Oct. 24, to the New
York "Times," in reporting this,
continued
follows:
as
plan
this ap¬
as
He said that business left unfin¬
ished
by
the
about it?
Dumbarton
Oaks
fore that
time, but that they would
necessarily require another
meeting of Marshal Stalin, Prime
not
Minister
Churchill
and
President
Roosevelt.
"Uitconditioiial" Surrender Plan Gosis Lives^
Says Landoni^if!
President Roosevelt's
foreign policy
"unconditional surrender"
—
•—vis costing the lives of untold numbers of American
M, Landon told a Republican meeting at
according to
an
soldiers, Alfred
Sabetha, Kansas, on Oct. 24,
Associated Press dispatch from there on that day,
which added:
•
-J'y
"Unconditional
surrender," Mr. Landon asserted in his prepared
address, "has never been defined.*—
Everyone is entitled to draw his courage
conclusions,
own
Germans.
to
the
ard more
more
ican
lot
a
than what Mr. Roose¬
willing to
official
to the Amer¬
say
broadcasts
clear, over there,
fighting Germans
they are Germans, but
they support a system
cause
cause
that
be¬
be¬
that
threatens us."
The
1936
Republican Presiden¬
Secretary of.
Morgenthau,
Jr., into his talk, declaring:
"To1 pile blunder on blunder we
tial nominee brought
the Treasury Henry
have: the
posal
most
must
Landon
unbelievable
pro¬
Morgenthau to destroy
German factory and turn
Germany into an exclusively agri¬
cultural country.
face
the
added.
facts," Mr.
"Instead
of
a
hard-boiled hoss trader, Roosevelt
is like the sap that is always grab¬
bing for the check."
Mr.
not
are
,
"We
peace
than
at
arrangements
Dumbarton
more
—
Oaks.
"Yet,
Mr. Roosevelt has retreated to the
isolationism which
of
his
until
was
administration
after the
the
policy
from
1932
1940
election, and
which encouraged the aggressions
of Hitler., He is holding himself
aloof
from
Europe.",'
the
'
'
decisions
.in
i
,
of
.."We see Mr. Roosevelt lending
weight and emphasis to the Sec¬
retary of the Treasury's proposal
by taking him to the last confer¬
in Quebec with Churchill and
ence
leaving the Secretary of State at
home.
"We
for
';> *
•<;;
have
a
tough enough
job
sistance
re¬
without
ing them
anew
Morgenthau fir¬
with the desperate
Interesting Racing Issues
The
Bankers
Kentucky
Bond
Life
Home
Building,
Louisville, Ky., have issued
letin of" comment
ciation
of
offer
the
a
bul¬
a
racing
on
asso¬
indicating
securities,
which
Inc.,
Co.,
16
list jof
appear
,
to
attraction.
greatest
Copies of this bulletin
tained
from
The
be ob¬
may
Bond
Bankers
Co. upon request.
.i
contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.
you
Bramman
BOSTON, MASS.—Carl B. Joel
been
added
to
the
staff
some
Corp.,
Jefferson
Busch,
-
Inc.,
weeks and that after that he would
entitled
tions,
but
F.
Thomasson
is
connected
in
FRANCISCO,
with
CALIF.—
W.
Derryberry, formerly
Bankamerica Company, has
become
bacher
associated
&
with
Schwa-
Co., 600 Market St.
viously with Hill, Richards & Co.
(Special to The Financial Chronicle),
(Special to The Financial Chronicle)
-LOS
ANGELES,
SAN
CAL. —Sieg¬
fried A. Schmidt and Augustus A.
Stanhope
are
with Maxwell, Mar¬
shall & Co., 647 South
Spring St.
-(Special to The Financial Chronicle)
RALEIGH,
-
C. —Robert II.
S. Dickson &
Co., Security Bank Building.
(Special to The Financial Chronicle)
ST.
LOUIS,
Bramman
has
John
FRANCISCO,
O.
Greub has
CALIF.—
become affil¬
iated with Stewart, Scanlon & Co.,
220 Montgomery St.
Mr. Greub
was
previously
with
Frank
Knowlton & Co.
would
MO.—Edward
O.
joined the staff of
under
be
the
meantime
time,
charter
examination
by
all the governments to be invited
and public discussion in all coun¬
tries would
ward
met.
a
help the delegates to¬
decision
rapid
they
once
Nv.,
Mr.
Stettinius
expressed
the
hope that the exchanges of views
would be
accomplished
could
be
so
in the
out
sent
Mr.
Stettinius
on
FRANCISCO,
CALIF.—
George C. Morgan, formerly of
Detroit, Mich., has become asso¬
ciated
Russ
with
Wulff-IIansen
Building.
&
Co.,
market
stock
volume
on
concerned.
is
in the matter of decline
But
there
an¬
sion of the Dumbarton
stocks will hold
versation
them below technical
the chances of
and hold
in
that much better.
*
*
.
To
points,
sharper re¬
a
from these lows be¬
covery
comes
sell
*
stocks
would
now
hope
that their initial seem to be
short-sighted. For
purchase will justify itself. even if the
reaction breaks
Even clear signs of reaction
into ground which is
danger¬
will not make them sell.
But
ous,
the possibilities of a
coming re¬ sharp
rally on which to dis¬
bring out selling, pose of them has
by no means
if the evidences of
action won't
the actual decline will.
This
it-can't-happen-to-me, philos¬
ophy is basic.
An accident
can
happen to the next man,
to you.
never
affect
can
stocks,
A selling drive
other guy's
the
never yours.
#
been eliminated.
*
certain
When the holder of securi¬
still
long of
Practically
issues.
their s recent
#
s'«
are
all of them show
paper prof¬
its.
If the writer
thought
that
ties
:i<
Headers
they
highs
would
all
were
he
suggested liqui¬
before this.
Long-
would
to
go
have
becomes
convinced, by
dating
proof, that it can hap¬ term
indications, however,
to him, all reason is still
point up. So, until there
visual
pen
thrown
of
out
the
window.
sufficient
are
indications
The desire to hold
in
through is the market
itself, the advice
relegated to the ash can. The to hold on still
applies.
It.
urge to get out from under must
be
emphasized, how¬
becomes
paramount.
that the various stops
given here in the past few
is
one
of
the
real
weeks are not to be
ignored.
causes
for deeper reactions
They still apply, and should
than
market
signals ordi¬
any stock sell under its stop
narily call for. By the same point
by a half point the stock
reasoning, it is during such affected shou Id be
dis¬
periods that the potential posed of.
buyer with vision and guts
can
pick his spots to get the
A complete list of the
stocks,
stocks
that
will
rebound
purchase levels and individ¬
ever,
the reaction has
once
its
run
course.
*
*
ual
stops,
column
*
appeared
normal.
is
And
if this
nor¬
mality is to be carried for-
full outline of the pro¬
Schenley Distillers Corporation
posed charter was communicated
by the State Department to the
interested governments and that
#
More next
this
5jS
Thursday.
-—Walter Whyte
[The
article
views
do
expressed
not
coincide
Chronicle.
Available On Request
con¬
in
Thursday, Oct. 19.
*
Monday's market declined.
Tuesday's market showed a
slight rebound.
Such action
time
Oaks
145-146.
ai
actual
is
though it is psycho¬
logical.
A public long of
cause,
the
base at about
a
public desire to liqui¬
date can carry them lower.
little logic where the
Yet, if this drive does carry
there is
the conclu¬
in
necessarily at
with
They
those
of
this
any
the
presented
are
at
those of the author only.]
have prepared an attractive book¬
let
containing the first articles
on
a
Columbus
Day, after their visit
White
House, diplomats
the
American
Latin
received
countries
Mr. Stettinius
at the Blair House, where they re¬
by
ceived detailed explanations of the
accords.
that
time
Norman
in the series they have been run¬
ning in the "Financial Chronicle.'"
Copies of this booklet
Department
of
Latin
request by writing to Mark
Merit, in care of Schenley Distill¬
ers
Corporation.
New York 1,
Secretary Stettin¬
planning an¬
meeting with the American
diplomats as a single group to dis¬
cuss
the security projects
some
time during this week.
was
Although
President Roosevelt
in his address to the diplomats on
Columbus Day urged the setting
up of the United Nations Peace
Organization promptly "without
waiting for the end of hostilities,"
this statement by Secretary Stet¬
tinius
makes
cannot be
into
it
evident
that
it
accomplished until well
next year.
The
five
come
an
ference
prove
of
the
WALL
N.'Y.
SUGAR
P. R. MalJory & Co., Inc., offers
an
to
powers
agreement
nations
Exports—Imports—Futures
interesting situation, according
an analysis prepared by Steiner.
& Co., 25 Broad St., New
City, members of the New
York Stock Exchange.
Copies of
this analysis may be had from
Rouse
DIgby 4-2727
York
Steiner,
Rouse
&
Co.
upon
re¬
quest.
Established
Talbott With A. C. Best
(Special to The Financial Chronicle)
H. Hentz & Co.
*
i
with
has
Broadway,
years
associated
become
A. C. Best & Co., 757 North
Mr.
with
was
Talbott
R.
for
New
York
New
York
Chicago
New
Exchange
Curb
Exchange
Cotton
Commodity
Dake
Company.
the
Orleans
Exchange
Exchange,
Board
Cotton
other
of
Inc.
Trade
Exchange
Exchanges
Open New Branch
a con¬
must
ap¬
at least the
must ratify the
or
Cohen, .Simonson
bers
New
York
& Co.,
Stock
have opened a branch
N. Y. Cotton
4, N. Y.
YORK
office at 95
Delancey Street corner Orchard
Street, under the management of
organization
Jules Glass.
be instituted.
Exchange Bldg.
NEW
mem¬
Exchange
principal ones,
project before the work of actual
can
Stock
York
New
nine
Alger
,
Members
MILWAUKEE, WIS. —John A.
Talbott
1850
must
on
the charter, after which the
individual powers,
STREET
NEW YORK 5, N. Y.
And
leading
to
Ave.
99
Mallory Interesting
Amer¬
tives of Central and South Amer¬
countries.
Fifth
350
LAMBORN & CO.
be had
Ar¬
ican Affairs, has been conferring
with
the
individual
representa¬
ican
may
upon
former Ambassador to the
Argentine and at present chief of
points left in abeyance and
(Special to The Financial Chronicle)
SAN
But
swered in the affirmative.
H He recalled that
them is hard to
Technical factors call
carry
in
early winter.
organization,
ranges will bring out
increased volume.
As a rule,
that the
Asked whether any special con¬
sideration had been given to Latin
American views on the security
still
N.
Houston is.with R.
the
ques¬
other
Corporation.., Mr. Marr
pre¬
of outstanding
said, would take
ida Theatre Building.
B. Marr is with Broad Street Sales
was
he
ius said that he
Charles
ANGELES, CAL.—Harold
rest.
some
with W. II. Ileagerty & Co., Flor¬
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
to
get other machinery for the
settlement
the
Building.
PETERSBURG, FLA. —Al¬
SAN
LOS
Schmidt
Standard
Building.'
time and would preclude the
Since
(Special to The Financial Chronicle)
fred
GREENSBORO. N. G—Earle G.
Warmath is with Equitable Secur¬
ities
-
Boatmen's Bank
ST.
(Special to The Financial Chronicle)
the
as
described
calling of the general conference
before the year end.
Precluding
any immediate meeting of Chiefs
of State, he said, was the fact that
President Roosevelt was going to
be very busy during the next few
be
this minor
recovery.
How far this second reaction
say.
for
upper
prepare your¬
another reaction to
follow
from the lower levels of the
mour,
of
H. P. Wood & Co., 75 Federal St.
were
Any one of these methods, the
Secretary pointed out, would take
to
Broker-Dealer Personnel Items
has
talks
level"
by Sir Alexander Cadogan, or by
an
exchange of views through
regular diplomatic channels.
were
.(Special to The Financial Chronicle)
official
Dumbarton
from
If
could
December and the conference held
soldiers to crack the final
our
shell of the fanatical German
humble
invitations
ev.ery
he said,
Ministers, by another meeting "on
the
or
decided in the
being
was
European
war
questions,
be dealt with in three other ways,
either by a conference of Foreign
To
Landon said future
over¬
makeit
seas
we
themselves
people.
"Our
..
American broad¬
Germans
specific and make
sense
velt is
our
the
':hK D'D -V.
yy-':y:
"Strangely,
casts
including
—
of despair. The war in
Europe has been prolonged by
Morgenthau's folly."
Such
•..
Whyte
you can
for
(Continued from page 1798)
will
chances are that a retreat
conversations must be settled be¬
such
some
peals to you, what if anything, do
you think we here can or should
completely volunteer basis.
a
together in basic train¬
advanced military
R.
Jr., Act¬
ing Secretary of State, indicated
it easy for him to go on into such
these
could be trained, year after year,
on
for
get the training in early
enough in each man's life to make
•
of
ask
would
I have
Edward
self
Savs
tions
in
might
ensure
In
high
individuals
men
Parley Here
Early Winter
tions
This would keep men
age
flow of
trade
a
that under
an
an
ing, would
us as¬
specialist
many
could learn
a man
of
Walter
Peace
birthday,
semester in which their birth¬
days fall.
is
army
as
soon
as
or
18th
college
or
enter
man
deferment to the end of the term
greater responsibility if
and
and
that
except
school
or
pay
on
possible after his
permanent right to higher
a
universal
compulsory
a
ward
Tomorrow's Markets
Stettinius Indicates
plan as this would not
seriously affect any of our schools
period of ad¬
a
Schools and
service
invited to volun¬
are
teer for this or that
Affect
Colleges
.
1819
CHICAGO
DETROIT
GENEVA,
PITTSBURGH
SWITZERLAND
THE COMMERCIAL & FINANCIAL
1820
Thursday, October 26, 1944
CHRONICLE
—
which have
Tieasuy Reveals Reservations
To Bretton Woods Agreements
and
the
of compiling
work
iwith
and j
the records
preserving
visions of the two plans to
■
of
lends
its
to
Gaulle
de
the
week
ment
recognition this
the
Moreover
which
/,/!. '(>/../:
interest at
Govern¬
this, time
attitude toward Bretton
When the Conference met
-
Woods,
the French delegation
represented only a National Com¬
mittee, not a Government, and
therefore may have felt inhibited
in-revealing publicly the content
In'; July,
France's
of; the special letter on
reservations which it sent to the
the
President of the' Conference,
Henry
Morgenthau.,
They are still not talking for
Honorable
Ji\
considered
However, the fol¬
are of current in-
facts
lowing
\ '
•
One
|'•
definitely dis¬
that
thing
much
in
important
less
larger quota.
France is also
displeased with her quota posi¬
tion
as
compared with that of
Russia and other countries.
France is not satisfied with the
a
provisions relating
multilateral compensation.
Bretton Woods
representatives at
Conference it was
insisted
Among French
the
should act as a
multilateral clearing center where
Fund
the
that
member's currency would be
redeemed for any other member's,
any
criticism
countries
a
have
should
Another, point
tions
:
the
foe in the interest not
is
actually induces countries to use
the full 25% when not necessary,
the
French maintain.
Although
this
in
was
matter
/:
tions of the method
The following text of
egations in respect to specific ar¬
.
be
of
these
in
the
consist of merely a
Fund
on
'Concerning
occupied
Articles
The
chase
of
to
nition
(c)
(b) and
the
to
as
/'/;..// 'V,,
opinion of the Austral¬
delegation the purposes of
the Fund,
which provide cri•j! teria for its -management, place
the
of
fund
•
little
too
emphasis
on
;?•
of
for
emphasis on the promotion. of exchange stability and
permanent
which may
shortening the duration and
lessening the degree of dise-
on
>'i
«
.
A;-: of India%(."*/v:
In view of the fact that
Aus-,
gold and few
dollars,
the. quota fixed
for
Australia
will; compel her
to
1 build up liquid reserves outside
; the
Fund to meetthe wide
ii tralia
has
little
Reservation
i the
as
<.
;
■
;
fluctuations
balance
her
in
*
.
//.;
.
.
/.
Peruvian
18th
f
The.
delegation
Australian
be
required to
concur
in
a
;
by
seriously
a
in its terms of trade.
Article
re¬
No.
7526
which
of
in
(Hi)
were
to be earmarked and
or
become
tural
of
many
countries,
the
annual,
drawing rights should be great¬
er
than twenty-five percent of
be
taken
for
the quota.
the
account,
are
•1
Article V, Section 8
The
Australian
delegation
considered the charges provided
-for. in this Section
are
too high
questioned the principle of
benefit from American immigrant
and
.
:
;
remittances, prevailed at the Con-
charging
countries
interest
or
or
eventual
ceases
a
l
request.
upon
Craig In Chicago
ILL.
B.
i
Craig and Herbert C. Roer have
CHICAGO,
'
become
&
Weeks,
Street.
Salle
Both
Arthur
—
/associated
blower
Horn- /
with
39
ber of years.
formerly
were
./"./:■
• -
La
South
with Cruttenden & Co. for
^
a
i-
num-
'/
*.
Fashion Park Attractiye
A
detailed
Park,
Inc.,
study
Socialist
rule,
in the
Bank of
Bank*
necessity
for
maintain
to
exchange balances
/
contained
is
;
Fashion
of
in
a
Linburri
mons,
teresting study
firm
the
Co.,
&
Broad
25
Copies of this in¬
St., New York.
be had from
may
request.
upon
:
.
Attractive Situations
"
6%
and
Common
cumulative
(the
-
American Bantam Car and Pari-
;
Section 1
of
of the British
the
location* of
apply equally to
of the projected
Reconstruction
and
The British Gov¬
therefore find it
necessary at some later date to
ask .thaUall. such interrelated
ernment
according
circulars
to
Hoit, Rose & Troster, 74
Copies
?
circulars
these
H.
8c
Roller
Co.,
Inc.,
governments
rather than in
technical conference.
*
a
-
,
had
!
Of Interest
Situations
F.
be
may
the firm upon request.
from
;
.
Ill
Broadway, New York. City, have
prepared
Christy
memoranda
a
American
Industries,
Clay
:
In-
;
firm
'
Products
which
Limestone
diana
Great
on
Laclede
and
the
may
questions should be considered
,as a matter for decision between
•
attractiye
Trinity Place, N. Y. City.
headquarters of the Fund ought
not to be
considered without
reference
to
the
location
of
other international bodies which
will be established.
The same
for
offer
Coed-Cola
ama
issued by
the opinion
location
preferred, !of
convertible,,
.
Development.
of
member
if the Fund is liquidated.
the firm
from
'
(Special to The Financial Chronicle)
!
Statement By The Delegation
Bank
either
liability
to be
State
the
purpose
Peru if it
the
the
account
observations
of estimating
Peru's quota and its proportion
to be paid in gold, or for use in
(any of the operations of the
Fund, or to cover any contin¬
gent
had
•
lating the net foreign exchange
holdings of the Union of Soviet
Socialist Republics shall take
Government
f
.
(e)
Soviet Socialist
Article XIII,
liable to
into
a
as
(Union- of
In
wording- of that law.)
Con¬
sequently,
the gold thus set
aside by Law No. 7526 cannot
agricul¬
kind
of The United Kingdom
ish
payments
in view of I the
Sutro
situations
;
any con¬
to
1
'w/'vl.; a
and
central bank—the State
kept
disposal in.
ever
seizure
"initially"-should
deleted from the last clause
/international special circular prepared by Si¬
with
concerned
abroad,
used in any way or manner, nor
delegation
1
} :
(b)
of the second sentence.
"re¬
current
as
y;'.:V
■
working
custody by the central re¬
bank, and were not to be
of
remittances as
transactions. France feels
•
reserves
wide fluctuations in the balance
that
:.
into
sus-
serve
y
word
'
:
* J. ■
•'
*
' '
..
tingency whatsoever. ("Oro in¬
tangible" in the original Span¬
considered
treat all immigrant
1
free conversion of
currency into gold, provided
were
•;
eign trade, the Fund in; calcu¬
existing
at
viz., 16,338.71115
kilos of gold, valued by law at
38,784,832.53
Peruvian
soles,
change
V, Section 3 (a)
Australian
The
1932,
the gold
that time,
par
adverse
May,
'
■-
.
Roer &
Republics/ which is performing
the functions of financing for-
'
Law
that
value
when a country has a serious
and persistent deficit in its bal¬
ance
of payments accompanied
a
to the size of
pended the
the
considered that the Fund should
quested change in
regarded
transactions
BffThe Delegation
-
-
The
be
Because of the centralization
the
Peru
.
'
,
Article V, Section 11
term
Republics of banking operations
;
quota for Ir
Statement
Article IV, Section 5 (j)
,/
a£
of such
in the Union of Soviet
•
of/Iran
Reservation
the
payments.
In doing so she is
likely to have to take action in
/conflict with* the purposes of
*//
^
Statement Bv The Delegation
-
'
:
'
■
'
of
the
concerned,
Article XIX: (a)
:
-
the Fund.
be
to
"
.
(4)
transactions or capital transac¬
tions.
the size of
to
quota for India.
and commission
orable interest
family living ex¬
transactions
are
df
t'U*
in
members
the
cific
Statement By The Delegation
1
following words should be
determine whether certain spe¬
enemy-occupied countries.
quilibrium in international balances of payments.
Article HI, Section
situation
the
into; account
such
Seaboard Of Interest
penses,"-having in* view that the
Fund may upon the agreement
with
executive directors
not take sufficiently
much
of
reconstruction"
and
Hornblower & Weeks Add
(i)
transactions" the
mittances for
of
mentioned
XIX
include
to
"current
?
selection
the
completion
•
expe¬
their' respective
of
Article
Not
date
the
to
as
employment,' and too
of
levels
"and
rates for such loans."
de¬
gold contributions."
-
Reservation
the
(b)
"in the
words
amount
the
Article XX, Section 3 (b)
the pro¬
words
added: "and shall establish fav¬
United
held in the amount not less than
nition of "current transactions."
>
de¬
Bros. & Co., 120 Broad¬
positories designated by the re¬ way, New York City, members of
maining fqur members" to add the New York Stock Exchange,
the words: "in each of the four have
prepared
an
interesting
remaining countries having the arbitrage circular on Seaboard Air
Line Railway Co; Copies may be
largest/quotas, gold shall be
defi¬
the
to
as
the
the
diting
international
an
be
should
Article III, Section 1(b)
restoration
such
of
section
After
of the joint state¬
on the estab¬
of
the
After
;:.Uy;..
'!/?Article XIX (i)
Reservation
Republics
Article I (iv)
leted.
by experts
.:
motion and maintenance of high
point on which France
differed ' from
the
majority at
Bretton Woods was the decision to
China and Poland, which
sales
net
Article XIII, Section 2
defi¬
"officiaL holdings
of
a
and Associated Nations.
'
Reservation
Delegation:
Article 1
.
In the
A minor
capital transactions; but the views
of United States and such'couni-
the
monetary
repur¬
currencies.
ian
taking currency out of circulation,
no to speak.
or
Socialist
This
monetary reserves."
may
credit in favor
often
gold
in
than
of The Union of Soviet
V, Section 7
Section 7 (b)
from ■ the
convertible
currency
with
rather
Statement By The Delegation
its
of
ment
provisions
member
a
•,Article XIX
of Australia
A
the books of its
remittances
the
(interrelated
technical conference.
exchange during the Fund's fi¬
nancial year be paid for with
gold, should be maintained in
conformity
with
Article
III,
in
countries
with
its
Fund
;
Statement By The
currency,
currency
a
connection
Agreement of The International
a
as
of
such
favor of
in
clause
clusion
Finan¬
and
half
to the non-in¬
as
enemy
published
as
Monetary Fund.
provision whereby each
member's subscription is made by
tries
documents,
Reservation
text
Statements of Certain Delegations
so
such
complete
"Commercial
of
V, Section V (b)
requiring
When the cur¬
credited is drawn upon
by the Fund and spent, it tends
to cause inflation.
The French
that
the
all
governments
gold
lishment
Chronicle," July 27, 1944.
cial
central bank.
current
with
read
(Hi)
lack
Fund
Article
and
The British Gov-
matter for decision between
as a
convertible exchange
quota, the Fund in
selling foreign exchange to that
country shall require that one-
12-month period.
a
that
^
and
exceed
3 (a)
to
as
Reconstruction
questions should be considered
principle that so long as
member's; holdings
of gold
a
a
in
quota
agree¬
and the International Bank should
..
whereby any
desired
its
the
International
the
on
in
sections
and
ments
Article
as a
result of pre¬
definite quantitative
limitation on the purchase of
currency from the Fund to the
extent
of
25
percent of the
scribing
specific
ticles
Reservation
to
projected
-
The
flexibility
the Treas¬
ments of each of the national del¬
exchange by '.'exchanging" its cur¬
the
Article V, Section
V
Department's release of the
reservations and state¬
ury,
veto
the total of the quotas.
Issued
By Treasury
the
on
-
uniform
on
the
of
ernment may therefore-find it
necessary at some later date to
•
changes in
par values accorded to members
having 10 percent or more' of
/■
; '
Reservations
of
Text
Reservation
power
for
same
member."
Article IV, Section 7";
;
of
equally
apply
Development.
ask
fol
established. / The
be
Bank
;
as
the ^location
the- location
"Charges
and
commissions
paid partly in gold and
partly in local currency of the
member, or fully in gold—uni¬
formly by all members—inde¬
pendent of the amount of the
monetary
reserves
of
each
;y//.//: /
'
will
.' / •'/.
;
to
•
/observations
/.
paragraph
"///
without
considered
be
to
other international bodies which
shall be
countries to re¬
gold subscription by
one-fourth.
■
.
' (
opinion of the British
the
location
of
headquarters of the Fund ought
not
V, Section 8 (f)
To reword this
omis-
the
to
as
'
the
reference
sub¬
would otherwise
it
amount
lows;
clause permitting en¬
a
duce their
a
A
acquires. foreign
member country :■
is
ternational relations.
sup¬
ject to the inflationary implica¬
case,
and
more
The French authorities also ob¬
for
again assuming the
sovereign nation; one
expect to see French views
forcefully presented in in¬
ated
dignity of
by
objected.
favor
Conference.
the
at
Monetary
war may
have to pay."
occupied
emy
its
with
-
:
hostilities
or
Article
•
various other delega¬
tions at Bretton Woods (including
Australia, Belgium, .Brazil, Czecho¬
slovakia,
Netherlands and Po¬
land), the point was not carried.
The
United
States
particularly
rency
sion of
"
France has been liber¬
that
Now
only of the-
concerned,
but of the Fund as a whole, be¬
cause- as nowworded, the
Fund -
own
pleased
-
suffered
have
present
the
Article III, Section 3
Reservations
it succeed, and yet
" from
far
achievements
felt to
members
individual
the
Woods
Bretton
to want to see
full quotas
they
This
necessary,
of
be said that
gain frorft
program not
In summary it may
a.
on.
be allowed to use their
this
:
" Reservation as to the size of
the French quota and of Euro¬
pean quotas in general;
'
France has too much to
such that a member
justifiably require more
than 25% in one year,'and that all
members should automatically
fn
French
.
are
rency
The
By
/
Delegation
Government
during
reduce its
initial gold payment to 75% of
Articl^ III, Section L "
cred¬
and
debtors
between
Nations
areas
cupation
Delegation
distinc¬
humiliating
In
stantial damage from enemy oc¬
,;v(/■
Statement
,
itors, as for example in connection
with the distribution, of any prof¬
its from operations.
.
%
per an¬
member
country's use of its quota.
The
French argued that fluctuations
of trade
balances and business
■
V
debtor
French dis¬
of
limitation
ported
mem¬
the
.
satisfaction was the 25%
France
to
V
bodies.
/
Article XIII, Section 1
•
III, Section 3
United
(the
other, international
of
■
of The United Kingdom
"Any countty represented at
,
•
beep J ao
corded special privileges, beyond
those granted at Bretton Woods. countries
as
bership
of
and
Reconstruction
Statement By The
.
the
open
gives
v.1.'•///;.'(./
Article
home
condition of
a
for
Development: %
and Financial Conference whose
place in the manage¬
ment draws
.
cycles
might
it
because
regardless of how obtained.
A
France., feels that the occupied
num
being
from
far
Fund,
opinion of the,, Soviet
delegation • the following ad¬
ing made
pre¬
that
circles
the
of
meaningless
made
In
by membership of the Fund be-
.
obtained
world trade than France,
to
opinion
the
French
in
may
-
pleased the French at Bretton
Woods, and still displeases them,
is ^ the
small quota assigned to
France in the Fund.
China, a
country
Also,
from, being
'
Articles
the
Agreement of the Internationa!
Bank
ment:
withdrawal should be protected
>
!
made in the articles of agree¬
;
right
'Concerning
to, - or alterations of,
language
should
have
been
delegation
the
that
Statements of Certain Delegations
;
ditions
_
publication.
.
rencies.
vails
XII,
Article
Australian
The
\
^
importuned by interested parties,
Some of the French delegation
who
desired
to
have the facts fat Bretton Woods were dissatisfied
with the loose provisions of the
made
known, to release to the
Fund relating
to redemption of
public the specific nature of the
the Fund's holdings of local cur¬
reservations to the various pro¬
exception was taken.
(See
(b).
Article XV, Section 1
A
ficiary nowadays of immigrant re-
proceedings, were j mittances.
minutes of the
-:
of
balance
favourable
a
payments.
The Union of Soviet
-
"Republics
"
Section 6
France is not a bene-
ference.
"♦
while provision is
'made for the payment of two
percent interest to
countries
(Continued from page 1795)
entrusted
Statement By The Delegation of
adverse balance
an
of payments
believes appear
rent
levels.
teresting
upon
& Co.
Copies of these in¬
circulars
request
"
attractive, at cur¬
'
be
may
from F. H.
-
'
/
had
Roller
!
THE COMMERCIAL & FINANCIAL CHRONICLE.
Number.4328
Volume 160
'many experts
oh national,defense
think should be spent."
'
it was in'that month that I pub¬
licly called for a two-ocean Navy,
Force To Preserve Peace-Dewey
(Continued from jpage 1796)
majority • my' g o o d to the three great* Republican
Secretaries of
State: Charles
friend; Edward J. Thye.
The experience of the people of Evans Hughes; Frank B. Kellogg
Minnesota Under these great Re¬ and Henry L. Stimson, his own
publican Administrations ? points present Secretary, of iWar? ,If.so,
/whelming
*
the: way toward the
progressive,
forward-looking
teamwork gov¬
people: will install in
ernment the
I
afraid he. has
venient memory.
am,
very
con¬
.
It
was
who said
the nation next Jan. 20.
a
..
my.
on
f
opponent
himself
the day he took of¬
;:I had intended to talk tonight fice, the 4th of March, 1933, and
"The
about some of the problems of the L now, quote, his. words:
;
American
/farmer.
have
I
ferred that'talk so'that I
out
delay correct
omissions
in
de¬
with¬
can
Ond
some errors
the
speech
of
my
opponent last Saturday night.,
,
^ But before doing
and
so, I. want here
to repledge my adher¬
now
to the farm program
of the
platform which was
drawn by the farm leaders them¬
ence
Republican
,
selves.
The wide fluctuations of
world
image of
International
consultation and widespread hope
for the bettering of relations be¬
tween the nations gave to all of
us
a reasonable
expectation (he
continued) that the barriers to
mutual confidence, to increased
trade and to the peaceful settle¬
ment of disputes could be pro¬
gressively removed."
picture
substantial
was
an
peace.
That statement about 1933 was
farm products that fol¬
lowed the .last war will not be the truth.
My opponent did in¬
tolerated.?;V/ v ■"<*■:} herit a progressively improving
prices
on
floor
A
will
be
and structure of international cooper¬
prices ation from the Disarmament Con¬
seal-up crop ference of 1921, led by Charles
loans.
A proper farm program Evans Hughes, through the great
will be created and so operated Kellogg-Briand Pact of 1928, in
maintained
with
under
.
placed
farm
•
:
of
assurance
concept,, which
a
Mr,
Roosevelt
still later called "just plain dumb."
It was in those terrifying days
of the Nazi
that
he
blitz, in May of 1940,
told
become
us
should
we
not
"discombobolated"
(per
Dewey pronunciation). Then, with
France about to fall, he publicly
announced on June 4, 1940, that
he saw no reason for Congress to
stay in session, It was an election
year—so in that
hour of national
peril he said,that
a continued ses¬
sion of Congress would serve no
useful.. and except, sarcastically,
the ' laudable
of making
purpose
speeches.
It
that American Congress
at
that
historic
was
which
refused
time
to go home.
It stayed in
Washington .and went to work.,
It was that Congress which then
passed the National Selective Ser¬
vice Act, sponsored by a Repub¬
lican Congressman and an antiNew Deal Democrat.
It
that
was
Congress which stayed after it had
been told to go home and ran the
appropriations and authorizations
for national defense up to twelve
billion dollars, and it was that
Congress that authorized
ocean Navy.
Those
are
few
a
our
more
two-
| then he has warred with Congress
1
Kenneth Wherry of Nebraska,
Republican Senate whip,
Joseph: W. Martin/ Jr.; of Mas-"
its
members have: learned
the saehusetts, the Minority Leader of.
bitter lesson that legislation asked the House of Representatives.
at every
major 'tulh:;. He has in¬
sulted its/integrity publicly and
for?one purpose is. twisted to
other.
This
is
a
which to build the teamwork
on
for
necessary
that's
future.
the
why it's time for
And
change.
a
Three times in recent months I
out domination
dictation from
or
appointed bureaucrats.
I shall discuss in detail
the
problems of
the
,
our
and Home
Farm
farmers
on
Hour next Sat¬
urday.
On
three
great objectives
we,
the American people, are wholly
We
agreed.
through. this
victory.
carry
and
determined :to
are
war
total
termined
shall
that
the
take
We
to swift
are
United
the
lead,
even
de¬
States
before
victory, in the establishment of a
organization to prevent fu¬
world
ture wars. We are determined that
fighting men shall find when
they return victorious a vigorous
and productive America, the kind
our
of America in which there will be
:jobs ancl opportunity for all.
It
{
forv the very purpose of
'unity: for peace that,
last August,: I lifted our peace
plans wholly out of partisan con¬
flicts—by joining hands with Sefetary Hull in work! on the pro¬
posed organization to prevent fuwas
keeping
'our
'
■'
ture wars.
"
-
in¬
discussed
desire to follow
our
independently."
course
Here
my
we
the
constitutional
termine
what
to
power
quota
of
de¬
force
it
the
of which
are
/
two parts of the story
opponent conveniently forgot.
Arms Conference "a milestone in
civilization."
How
men's
our
do
change
If we're going
memories!
to learn
Now let's look at some more.
lesson for future use,
.
Jn my addresses on that sub¬
ject I have tried to keep it but
of partisan debate.
Unhappily, however, last Satur¬
have
record
iv,V/:' '■
of the policy of consultation with straight.
It was in that year, 1934, that
other nations, an overwhelmingly
Democratic Congress adopted the Japan served notice of termina¬
tion of the limitation, treaty which
fruitless Neutrality Act and the
kept her navy inferior to ours.
President signed it.
It
day night my opponent once again
sowed among us the seeds of dis¬
It
unity. He made a speech, a very
long speech, on foreign: affairs. had
also in 1935 that, instead
was
we
Yet it
was
in
that
1933
we
really
last chance to bring order
our
We had hoped he would speak to
American people as grown¬
out of the
the
money
ups and tell us. what our foreign
policy is and where it's going.
We had also hoped to hear some
word of cheer about the smaller
London Economic Conference had
chaos of international
exchange and trade.
The
been labored over for months
by
Republican
Secretary of
State
Harry L. Stimson. Yet, as one of
nations, so important to the con¬ his early acts as President, Mr.
science of the American people- Roosevelt
deliberately
scuttled
was
istrations
this
to
keep
the
in the first two admin¬
of
the
New
Deal
that
country sent 10,000.000 tons
iron and steel to Japan,
of scrap
unchecked by my
opponent until
Oct. 16, 1940.
The weight of that
scrap iron alone was ten times the
tonnage of the whole Japanese
Navy.
Mr,
'
/,
Roosevelt
said
last Satur¬
day : night that we could have
that conference.
That was the
"compromised" with Japan, and
hope for the people of most completely isolationist action I
quote him, "by selling out the
■Italy, some assurance that, the ever taken by an American Pres¬ heart's blood of the Chinese peo¬
Scandinavian
countries
which ident in our 150 years of history;
ple." Well,: let's see what we did.
Rave suffered so much, and the It was that tragic event that led
In addition to scrap iron, he
other small countries, might soon at least one European statesman
permitted' the shipment to1 Japan
be admitted to, their full, partner¬ to say ' there was nothing then
of as much, as three million bar¬
ship in the work for organized ahead in Europe but war.
rels a month of oil, the heart's
peace.
; .Year: after, year, our
chiefs of blood of
war,
'for use against*
But Mr. Roosevelt gave us none staff
reported on the utterly im¬ China and for storage against
of that.
Instead, he sat by the poverished
and pitifully
small America, That oil continued to
fireside and dreamed of yester¬
manpower
of our Army.
Year flow until
July of 1941,, four
day,
He
paraded
before
the after year, the Budget Bureau,
months before Pearl Harbor.
American people the ghosts of the which is under the
personal direc¬
Let those who claim to have
long-dead past. He told us a few tion of the President, cut down
exercised great foresight remem¬
bits of-history, carefully selected, the amounts
requested.
It was
ber these lessons in history.
And
and then said in effect* "Ask me
-ight in the fall of 1939, after the
let us as a nation never forget
no questions—-you are not entitled
second World "War had actually
to
know where we
are
going. begun that Mr. Roosevelt's Budget them.
Just leave everything to me."
Now, my opponent in his speech
Bureau cut. out 55,0. millions of
Now, Mr. Roosevelt said in that dollars of amounts certified by the actually blamed a handful of Re¬
speech, and I quote him: "l am Army for critical/arid essential publicans for otlr failure to go
some
word about the fate of Po¬
land,
the President of the United States
of
times
election
some
gentlemen
the
you
Wallace
Acting
wire from
H.
Minority
White,
the
of "the
Leader
United States Senate.
It reads:
the
members
the
of
Congress
of the United States.
None of
these
us
pleased to follow your splendid
leadership in bringing this plan,
into reality."
The rest of these messages are
in identical vein and I have made
them
public tonight. Here's the
of unity we need in thin
country—this is the kind of unity
we
need so desperately in the
years ahead.
From the beginning of this cam¬
paign I have insisted that organi¬
kind
zation
shall
Senators
Con¬
both
of
parties have made mistakes.
dividual
takes.
In¬
citizens have made mis¬
Every single
both in
and
of
one
of office
out
us—
—
has
takes
of
interested
the
past
in
by,
the
mis¬
indi¬
any
vidual in either party.
terested—the people of
try
I am in¬
this coun¬
interested—in what the
next Congress will do.. We must
are
riot find ourselves after next Jan.
20,
stalled
on
dead
center
as
a
result of this series of recrimina¬
tions
between
the Congress.
my opponent and
He's already dem¬
that
onstrated
he
world, peace can and
bipartisan effort.-' I
continue
cannot
insist
to
that
on
approach.
The
avoidance
is too
future
of
warn
important to be in the sole
custody of any one man, of any
one
group or of any one party.
It's too important to hang
by the
slender thread of one man's con¬
tinuity in office.
Only with the unity now dem¬
onstrated by the telegrams
read to you tonight from
leaders of the Congress
Senate
can
action
of
we
who
utive
I have
the next
and the
achieve
the kind
to
preserve
necessary
Only with
peace.
.will
Chief Exec¬
a
with
work
Congress in harmony
the
can our
\
,
-
fu¬
£-v;-
Our work for future peace- iiiust
on Jan. 20' next
and will become
bipartisan effort, bringing to it
ablest men in our country
from both political parties.
1
That sense of unity can also.be
brought to our domestic affairs.
a
the
With
made mistakes.
I'm not
a
ture be assured.
Individual
and
gressmen
for
must; be ;
has been all-wise in
matters.
I shall personally be very-
peace.
.
"that
read
me
Senator
telegram
a
these
,
.
ed
of
at
will make available and what dis¬
of
Let
each
consider the sound and successful
cretion it will give our represen¬
chapters of the whole story—all tative to use that force.
my opponent conveni¬
I have not the slightest doubt
ently forgets. But the American that a
Congress which is working
But it was on March 5, 1933, people will not forget them when in
partnership with the President
that Adolf Hitler made himself they go to the polls in November.
will achieve the result we all con¬
Now in his speech of last Satur¬
dictator of Germany,
That was
sider essential and grant adequate
a fateful year.
Germany walked day night, my opponent did re¬
power
for swift action to the
the
out of the Disarmament Confer¬ member
Washington Arms
American representative.
ence.
Germany and Japan quit Conference by which, for the first
But those who would attempt to
the League of Nations. And trag¬ time, we succeeded in restricting
ride roughshod over the Congress
ically, under the leadership of Mr., Japan to an" inferior naval, rela¬ and to
dictate the course it should
But he forgot
Roosevelt, America did her own tionship qf 5-5-3.
follow before it has even been ac¬
bit toward" the" breakdown of in¬ that he was supposed to be telling
quainted with the facts are tri¬
ternational cooperation for peace. the whole story. He complained
that we "scuttled" part of the fling with the, hope of the world
Mr. Roosevelt now speaks fond¬
in my
strength of our Navy. But that's They are deliberately,
ly of the League of Nations. But
not what he said at the time. Then, judgment, seeking to precipitate a
it was he who in 1933 said this
in a magazine article, Mr. Roose¬ hardening of minds.
If this stub¬
of the League, and I quote his
velt asked America to trust Japan born course is pursued,, it can onlv
words: "We are not members and
once
and complained, and I now quote result
again as in 1919
we do not contemplate member¬
his words, "of the delay in the in a disastrous conflict between
ship."
'" ■
jv /
'■'
:
scrapping of;United States ships the President and the Congress,
He rejected. the policy of col¬
as provided' for
and pledged, in To that I will never be a party.
laboration with the League which
accordance with the treaty," close
I deeply believe that we cannot
had previously been established,
quote. What he also forgot last build an
understanding and a
and in 1933 the American repre¬
Saturday night was that as late purpose for our future if we are
sentative at Geneva was instruct¬ as
1934, he called the Washington to continue to have- abuse from
control and world renounced war as an
operation of their program with¬ strument of national policy.
administration,
from
length what I ■r' '^Ybur statements in support.'of
a post-war organization and
your
develop¬
program for lasting peace. I have vigorous leadership in
ing and clarifying our country's
emphasized that,this work must
be pressed forward without wait¬ foreign policy have my respect
and. approval.
Your views will
ing for the end" of the war.
I
be accorded enthusiastic and loyal
have emphasized, as my opponent
of the
has not, that, and 1<am quoting, support: by Republicans
Senate
and
by
the
American
"we must make certain that our
people."
>
participation in thq world, organ¬
Now let me read a wire from
ization is not subjected to reserva¬
Joseph W, Martin, whom my op¬
tions that would nullify the power
ponent last Saturday night, by the
of that organization to maintain
way, practically conceded1 will be
peace and to halt future aggres¬
the next speaker of the House of
sions."
■
Representatives, That wire reads;
That means, of course, that it
"When elected President, you
must not be subject to a reserva¬
can count on enthusiastic support
tion that would require our rep¬
of the Republican House of Rep¬
resentative to return to Congress
resentatives to carry into effect
for authority every time he had
your plan for United States lead¬
to make
a
decision.
Obviously ership in organization to cooper¬
Congress, .and only Congress, has ate with other nations for world
have
that it will leave with the farmers which most of the nations of the
the
hold in my hand
I
an¬
sad'foundation
a
who
will
President,
with each
other, we need not fear the peace.'
For agriculture, for labor, and for
Congress and
a
cooperate
an-
unlimited
we
will seize
it and unite to bring it
about.
'
the
least
business
have
we
before
future
this
Certainly,
we
can
if
us
do in the
•
is
name
of those
fighting today to make
that future possible.
With God's
who
are
help we shall unite America and
forward once again.
-
go
.
work
r
.
.
giving
look
you
the whole story." Let's
the
at
vital
events
my
op¬
ponent left out of what he called
the whole
My
story.
opponent
heavv hand
erned
our
Does he
of
\
says
that
isolationism
the
gov¬
country in the 1920's.
to apply that term
mean
items.
It
was
into the World
•
in January, 1940,'that Mr.
told the Congress that
That
was
still
Court.in 1935.
when
Mr.
on ..the.crest
Roosevelt
of his lead¬
Roosevelt
was
$1,800,000,000 for national defense
was in his judgment and I quote
him, "a sufficient amount for the
Coming' year." although he: then
ership, with three-quarters of the
United, States Senate Democratic
admitted that it
was
"far less than
work
a-
Congress of his
party.
own
It is unmistakably clear that our
future
demands
Chief
hew
that
we
Executive
have
who
a
can.
and will, work with ihe new Re¬
publican
Congress.
We must be
forward harmoniouslv
and effectively if we are to meet
the mighty problems of peace.
able to
Now
go
who
will
lead
the
next
Attractive For Investment:
-Stock of the
Emporium Capwell
Company, " which
operates two
large modern department stores
in San Francisco and Oakland,
Calif., offers
an
attractive situa¬
tion for investment purposes
ac¬
cording to a detailed study issued
by Kaiser & Co., Russ Building,
Senate and the next House? Well
San
here
the New York and San Francisco
ers
are
the
acknowledged lead¬
today:
;
,
Wallace H.
Acting
White; Jr., of Maine
Minority Leader of the
United States Senate.
Arthur
gan.
Vandenberg
Chairman of the
Michi¬
Senate Re¬
R. Austin
of Vermont,
Chairman, of the R^nublican Na¬
tional
tions
Convention
Stock
Exchanges.
Copies of this
study may be had from the film,
upon request.
(
of
publican Conference Committee.
Warren
FrancisCo, Calif., members of
Foreign Rela¬
Subcommittee.
Robert A. Taft of Ohio; Chair¬
And qven with the help of nine
Republicans
he - still
couldn't man of the Republican Steering
>
muster a two-thirds vote.. Since Committee.
Post-War Prospects
American
Box
Board
Co.,
.
a
with good - peace-time
prospects, offers attractive possi¬
company
bilities,
according
to
randum issued by B.
a
memo¬
W. Pizzmi &
Co., Inc., 55 Broadway, New York
City.
Conies of this me^or^ndum may be had from B. W, Pizzini & Co., Inc., upon request.
Securities
Flotations
Calendar Of Hew Security
TOBACCO
AMERICAN
filed
has
CO.
a
statement
for
$100,000:000
debentures, due Oct. 15, 1969.
will be applied to the extent re¬
registration
25-year 3 %
Proceeds
short-term loans
quired to payment of all
and
banks
from
will
balance
share of
new
one
expects to finance the pur¬
inventories of leaf tobaccos.
The underwriting group consists of 148 in¬
vestment houses headed by Morgan Stan¬
ley & Co. with $5,000,000.
Other under¬
company
chase of larger
1944,
16,
$25
at
24
Alstyne, Noel & Co.,
and dividend.
Van
and
Inc.,
&
CO.
with other
bond sale,
the
from
proceeds
will be used to re¬
tire on Jan. 1, 1945, the $115,756,000 series
H 3%% bonds at the call price of 107y2.
of the
funds
and ac¬
101
company,
MANUFACTUR¬
AETNA BALL BEARING
changed to Aetna BalL;M
Roller Bearing Co.) has filed a registration
statement for 30,375 shares of 5% cumula-'
tive convertible preferred
stock, par $20.
CO.
(name
offered to
being
is
stock
preferred
The
20,. 1944, the series of 1967
the
plus interest and
and interest. -
100.50
1974
of
series
stock of record Oct. 14,
holders of common
$20 per share oh basis of
for each four shares
Subscription rights will expire
statement
for
82,000
registra¬
of com¬
a
shares
The stock is issued
does not represent
the. company.
Paine,
Webber, Jackson & Curtis, New York, head
the list of underwriters. Filed Oct. 6, 1944.
Details in "Chronicle," Oct. 12, 1944.
mon
stock
and
outstanding
new
financing
(no par).
and
by
for subscription at
of common.
Oct.
Underwriters will purchase
1944.
30,
preferred stock not subscribed for by the
stockholders.
Proceeds will be added to
capital.
The underwriters are
Bacon, Whipple & Co., and Rawson Lizars
Co.,
Chicago, and Carlton M. Higbie
Corp., Detroit.
Filed Sept. 30, 1944.
De¬
tails in "Chronicle," Oct. 5, 1944.
working
SERVICE
CORP. has filed a registration statement
for 37,856 shares of 4,15%
dividend series
preferred stock, ($100 par).
Company is
offering to holders of its 37,856 shares of
$6 dividend series preferred the opportunity
to
exchange their stock on a share for
share basis for the new
4.15% dividend
VERMONT PUBLIC
CENTRAL
with a cash payment of
the $6 preferred.
The
cash payment is equal to the difference be¬
tween the initial public offering price of
$102.50 of the 4(4 % preferred stock and
the redemption price of $107.50 per share
of
the $6
preferred.
All shares of $6
preferred stock not surrendered in ex¬
change will be called for redemption at
$107.50 per share plus accrued dividends.
Any shares of 4.15% preferred which stock¬
stock,
preferred
$5
share
per
holders
take
not
do
7,
14,
in
has
CORP.
filed
a
102,424
covering
statement
registration
shares of 4%
% cumulative preferred stock,
Corporation is making an offer
to the holders of its present 6%
preferred
stock on the basis of which each holder of
$100.
preferred would receive 1 and
3-107 shares of new preferred for each
share of present preferred,
with adjust¬
ment for dividends.
The exchange offer
expires Oct, 30.
Proceeds from sale of
any unexchanged stock will be used for the
redemption of all the shares of present
preferred stock not exchanged.
Lehman
Brothers,
Wisconsin Co.
and Hallgartett
present
Co.
in "Chronicle,"
Details
Price
underwriters.
are
will be $107 per share.
Filed Oct. 6, 1944.
Oct. 12, 1944.
CORP.
KIMBERLY-CLARK
public
to
registration statement for 175,stock (par $10) and
a
subscription warrants evidencing
the right to subscribe for common stock.
Company is offering to
stockholders > of
record Oct. 9, 1944, the right to subscribe
to the new stock at $10 per share on the
basis of one share of new stock for each
share of common stock held.
The rights
175,938
will
expire at 3
of
shares
stockholders
the
Oct, 27,
p.m.
1944.
stock not subscribed
new
subsequently be sold by
Of the proceeds $10
may
direct.
company
share will be allocated to the
stock account.
Not underwritten.
per
filed
has
a
Sept.
28,
filed
has
CORP.
THE LIONEL
a
regis¬
tration statement for 52,714 shares of com¬
The shares are
issued and outstanding and do not 'repre¬
sent new financing.
The proceeds will go
to the selling stockholders.
The principal
underwriters
are
Granbery,
Marache &
stock
mon
$10).
(par
Allyn &
and A. C.
Emanuel & Co.,
Lord,
Inc., all of New York.
Filed Oct, 11,
1944. Details in "Chronicle," Oct. 19, 1944.
Co.,
Oct.
Offered
$13.75
at
1944,
26,
per
RAYON CORP. has filed a reg¬
TUBIZE
for
statement
istration
of
shares
,70,000
stock (par $100).
Net
proceeds will be applied to the redemption
of $2,450,000
3!'2%
sinking fund deben¬
tures, due Nov. 1, 1956, and for redemption
of 18,395 shares of 7% preferred stock, par
$100, redeemable at $110 per share and
accrued dividends. Balance of net proceeds
will be added to working capital.
Kidder,
Peabody & Co., and Union Securities Corp.
head the list of underwriters.
Filed Oct.
9, 1944.
Details in "Chronicle," Oct. 12,
4%%
preferred
■
1944.
one
Offered
Oct.
$103
at
24
Rights
held.
mon
subscribed
will
shares
underwriters
expire
be
Proceeds will
the-public.
to
general funds of the com¬
pany.
Lehman Brothers,
the Wisconsin
Co. and Hallgarten & Co. are underwriters.
Filed Oct, 6, 1944.
Details in "Chronicle,"
be added to the
Oct. 12, 1944.
a
lias filed
statement for 50,000 shares
(no par).
The shares
outstanding and do not
registration
of
stock
common
and
issued
are
represent new financing. The underwriters
are Lee Higgjnson Corp.
and Paine, Web¬
ber, Jackson & Curtis, 10,000 shares each;
registration statement for 80,-
a
cumulative convertible
000 shares of $L25
preferred
shares
of
shares
Net
capital.
7
rights
cents).
50
exercise
for
of
Inc., and Smith, Barney &
Co., 8,000 shares each; Graham, Parsons &
Co.,
5,000
shares;
Bosworth,
Chanute,
Cook
&
Offered
will
offered
be
Oct.
25
$35.50
at
share.
per
VAN RAALTE COMPANY, INC.,
a
registration statement for 129.281 shares
of
stock
common
stock
common
of
Holders
(par $10).
record Oct,
1944
16,
in
the
ratio
share
of
on
Subscription
after Oct.
and
14, 1944.
pffered are
estimated
for
ex¬
1944,
ex¬
$1,262,810.
receive
The
March
7%
1, 1945,
cumulative
$115
per
share,
preferred
and
the
.stock
balance
In
working
of
record
the right to subscribe
(par $20) at $25 per
net
will
the 9,654 shares of its
first
proceeds will be added to working
to
a
company
$1,110,210 of such proceeds to redeem,
use
on
will
company
of
amount
17,
share
rights
If all of the common
subscribed for it is
pire Nov.
shares
additional
one
held.
preferred
added
of
are
given the right to subscribe to the 129,281
shares ox common stock at $10 per share,
preferred
the reduction of
-
has filed
the
stockholders
the preferred stock
Filed Oct. 10,
2,000 shares.
Co.,
the
of
$1,000,000, and excess pro¬
Common
were
160,000
reserved
the
of
proceeds
any,
be
to
will be applied to
if
(par
will
respect
bank loan of
ceeds,
stock
shares
with
$20) „and
(par
common
conversion
stock.
to
stock
common
issuance
Oct.
Co.,
Co.,
Inc.,
the
bonds
and
into Koppers
corporation formed fox-
be
may
new
a
merged
out the merger,., providing stock¬
approval is obtained.
Proceeds
carrying
holders'
the
that
event
common
stock
proceeds
offered to
from
of
at
the
capital.
sale
stockholders
of
are
to make
ten.
will t(se
up any
Filed
-
debt
Co.
of
Koppers
and
of
all
and
Co.
the
existing
Koppers United
200,000 shares
& Co.,
& Sons;
Coffin ;& Burr, Inc., First Boston Corp.,
Hallgarten & Co., Halsey, • Stuart & Co.,
inc., Harriman Ripley & Co., Inc., Harris)
Hall & Co., Inc., Hayden, Miller & Co.,
Hemphill, Noyes & Co., Illinois Co. of Chi¬
cago, W. C. Langley & Co., Lazard Freres
& Co., Moore, Leonard & Lynch, Reinholdt
&
Gardner, E. K. Rollins & Sons, Inc.,
Singer, Deane & Schribner, Stifel, Nicolaus
& Co., Inc., Stein Bros. <fc Boyce, Stone &
Webster and Blodget, Inc., Union Securities
Allyn
&
Co.,
Inc.,
&
Co.,
Inc.,
Alex.
Watts
Baker,
Blyth
White,; Weld
Corp.,
"Chronicle,". Oct,
tration
CO.,
shares
of
De¬
1944.
1944.
12,
has filed a regis¬
150,000
shares of
INC.,
statement
cumulative
Whiting,
and
Co.,
&
Filed Oct.'9.
Weeks & Stubbs,
tails in
Brown
for
200,000
preferred
stock
and
The dividend
rate on
common.
preferred Will be filed by amendment.
will be applied to the retirement
the
Proceeds
existing 200,000 shares of
preferred stock of the Koppers Co. after
the merger and to pay off bank lxotes ag¬
gregating $4,786,624 of Koppers United Co.
Underwriters same as above. Filed Oct.. 9,
1944. Details in "Chronicle," Oct. 12, 1944.
of
of
all
the
has filed
CO.
POWER
WATER
TIDE
a
statemexxt for $4,500,000 first
bonds 3Va% series due Nov. I,
1974, and 10,000 shares of 5% preferred
stock,
par
$100.
Bonds and
preferred
stock are to be offered for sale at com¬
registration
mortgage
bidding.
Net proceeds estimated
approximately $5,605,000, together
company's general
petitive
to
.
be
"Chronicle," Oct.
27,
5,
1944.
1944.
Details
in
;
of
resent
financing by the company?
new
Independence,
Business
Mo.
"
Manufacture
—
%
has filed
registration statement for 38,380
a
cumulative preferred
4,/4%
of
'T 0 •
ment.
will
be
types
various
manufac¬
is
clocks.
of
of
:
offer
-will
Offering—Corporation
%
the
*
proceeds
Credit
Corp.
outstanding as of Sept. 11, 1944, Com¬
Credit owned 177,689 or 59.22%,
mercial
Commercial
which''Shares are being sold by
underwriters.
to
shares of
of its outstanding 38,380
holders
to
war
stock.
the
mon
consisted
part of 1942 business has
entirely
of
production
almost
materials.
Since
i
will go to,the
which, is selling
Of the 300,000 shares of com¬
Proceeds—The
Street, New York
business
Business—Normal
,'v
'
-•
.
by amendment.
supplied
Commercial
ture; of.
early
" •
■
Offering—The offering price to the pub¬
stock
/
City.
Underwriting—To be supplied by amend¬
\
lic
(par $100).'
Address—109 Lafayette
sale' of
/ \ I- :
and
,
harvester-threshers, etc. ,:•••
shares
-
Streets,
and Hay ward
Address—Cottage
•
CORP.
INSTRUMENTS
TIME
has filed
registration statement for 177,689 shares
common stock, $2.50 par.
The stock is
issued and outstanding and does not rep¬
a
Whipple & Co.,
j
GENERAL
of
preferred stock of Koppers Co.
Under¬
writers are Mellon Securities Corp., A, C.
(10-20-44),
GLEANER HARVESTER CORP.
Registration Statement No. 2-5512. Form
S-l. (10-17-44).
v
#
the
,
Hemphill, Noyes & Co.
of
underwriters, with
of others to be filed by amendment.
—
group
Registration Statement No. 2-5517, Form
S-l.
Chicago, and W. E. Hutton & Co.;
both of
interest.
accrued
and
the
names
Underwriting-—The underwriters are Paul
H. Davis & Co., and Bacon,
with
the
to
Underwriting
head
r, ■ j ./'
working capital.
per- share.
Proceeds—For additional
applied
at ,$7
in
1
■
,
: •
•,
.
Form
Registration Statement No. >2-5518.
S-l.
preferred stock the right to exchange
such shares on the basis of one share of
(10-20-44).
;
'
.
;
6%
share of new 4V*%
preferred, plus $7, together with a cash
dividend adjustment on the 6%
preferred
to date fixed
for exchange.
If all the
6% stock is not exchanged the corporation
preferred for one
6%
retire
will
of
as
thereafter
Jan.
1945,
1,
possible
as
as
or
4,000
between
soon
preferred not issued in exchange
to underwriters and proceeds
with other funds of the company used to
retire balance of outstanding 6% preferred
of
INVESTORS
of
the
Address—200
the
of
a
;;
•>
Min¬
.
.
Minn.
management
type.
Underwriting—Investors Syndicate, Min¬
is named principal underwriter.
neapolis,
market.
Offering—At
investment.
Proceeds—For
' %
,
;
-
Registration Statement No. 2-5519. Form
A-l.
(10-20-44).
SHAMROCK OIL & GAS CORP. has filed
price of $110 per
redemption
(no par),
Roanoke
Building,
Business—Open-end investment company
new
at
special capital stock
neapolis,
will. be..sold
stock
INC. lias filod
MUTUAL,
registration statement for 2,000,000 shaves
and
shares of the unexchanged 6% pre¬
ferred with funds it has available.
Shares
5,000
registration statement for 101.593 shares
common
stock
(par $1),
The shares
are issued
and outstanding.
share.
a
of the
presently outstanding 6%' preferred stock.
Underwriting—Underwriters are Kidder,
Peabody & Co., W. E. Hutton & Co., Lee
Higginson Corp., Stone
& Webster and
Blodget,-Inc., Glore, Forgan & Co., and
Hornblower & Weeks.
V:\
Registration Statement No. 2-5513. Form
of
Purpose—To effect the retirement
S-l.
(10-17-44),
6
MONDAY, NOV.
with such cash from the
Address—Amarillo,
Texas.
and
refining
oil
' ■
%
Offering—Price to the public will be
supplied by amendment..
;
!
;
Proceeds—The proceeds will go to ,• the
selling stockholders.
Underwriting—Kidder, Peabody & Co. is
named principal underwriter. .
%
Registration Statement No. 2-5520. Form
S-2. (10-20-44).
rv
Business—Producing
natural
and
gas.
"
funds
as
be required, will be used to
may
first mortgage 5% series
redeem $6,065,500
bonds
A
Feb.
due
Filed
1979.
1,
Oct. 9,
1944.
Details in "Chronicle," Oct. 12,
1944.
MACHINE
FEDERAL
CO.
WELDER
&
registration statement for $2,000,000 15-year 5% sinking fund deben¬
tures
due
Sept,
I, 1959.
Proceeds for
working capital.
Central Republic Co., Inc.
and Peltason, Tenenbaum Co, are principal
xxnderwriters.
Filed Oct. 9, 1944.
Details
has filed
a
"Chrdfxicle," Oct. 12/ 1944?
in
filed
for
60,000
class
cumulative convertible
7%
of
stock
A
statement
registration
a
shares
has
CO.
MANUFACTURING
HARRIS
$5)
(par
and 120,000 shares of
reserved for conversion.
convertible class - A
class
B
The
7% " cumulative
(par
will
$2)
offered
be
$5
at
Douglas
&
per
share.
heads
Co.
MONDAY, OCT. 30
shares
The shares are issued and outstanding and
Price to
share.
Scott,
Horner & Mason, Inc., Lynchburg, Va., is
principal underwriter.
Filed Oct. 11, 1944.
Details in "Chronicle," Oct. 19, 1944,
not
do
the
stock¬
holders, R. F. Bensinger and B. E. Bensinger, 15,000 shares each.
*
$26.50
is
Wabash
South
Address—623-33
Avenue,
Chicago^ 111.
Business—Manufacture and sale of bowl¬
ing
tables,
be
billiard
alleys,
etc.
\
/"••'
■
I.
■
the
Offering—The price to
filed by amendment.
to the selling
>
Lehman.
.*
shares for each account.
*
p
Registration Statement No. 2-5514. Form
(10-18-44),
:
7,500
S-l.
per
.
ment.
for
"
....
'<
■;
:
■
company will offer the
under
the Commission's
sale
.
competitive bidding rule with the success¬
ful bidder naming the interest rate.
Offer¬
price
ing
to
be filed by
will
public
the
at
105,
RADIO
proceeds will be used , to
together- with accrued In¬
the outstanding $27,500,000 first
mortgage bonds 3J/sr%. series due 1966. Any
balance of net proceeds will be added to
'
working capital.
Registration Statement No. 2-5515.
(10-18-44),
'
statement
(par
will
be sold by the company, 95,000 shares will
be issued to stockholders upon exercise of
options and 2,500 shares will be sold by
another stockholdei".
Proceeds from sale
CORP.
filed
has
for
cent).
a
registration
shares of commoxi stock
297,500
one
Of the total 200,000 shares
not in excess of
$170,000 for the purpose of calling at $10
per
share all of the outstanding 26,016
shares (no par) preferred stock.
Holders
of more than 9,000 shares of preferred, in¬
cluding British Type Investors, Inc., and
Empire
American Securities Corp. have
stated that such stock will be converted
by Majestic will be used
into
common
stock
not
and
presented for
redemption, and company's'-statement
said
holders of pre¬
ferred will take similar action.
Balance
will be used to record, manufacture and
sell
phonographic records
and working
capital.
Proceeds to Majestic on sale o)
the 95,000 shares upon exercise of options
it
is
probable
amounting
to
that
other
$112,499
will
added
be
to
working capital.
Kobbe, Gearhart & Co.,
Inc.
underwriter.
is
principal
Filed
Oct.
WORSTED
COMPANY
OF
AMERICA
a
registration statement with the
.
•
,
New York
Avenue,
Eighth
•
■
.
Business—Operates a chain of GO retail
women's
apparel stores.
;
Offering—Price to the public
■%
share.
is $8
per
'
Proceeds—Company will use proceeds foxgeneral corporate purposes,
Underwriting—Van Alstyne,
the
heads
of
group
Noel &*Co.
^'ith
underwriters,
to be named by amendment.
Registration Statement No. 2-5522. Form
(10-21-44).
S-l.
11
SATURDAY, NOV.
■'
KEYES
CO.
FIBRE
for
has filed
$1,800,000
registra¬
a
first
tion
statement
gage
sinking fund 4% bonds, series A, due
1,
mort¬
1959.
Bank
Address—806
Offering—The offering prices of the de¬
bentures and common stock will be sup¬
plied by amendment.
Proceeds—The debentures
of Commerce
Build¬
ing, Portland, Maine.
molded pulp products,
stock
are
outstanding
aiid common
securities of the
which are being sold by stock¬
holders of the company to the underwrit¬
ers.
The net proceeds
will go to the
company,
selling
to
the
stockholders,
and no part will go
company.
Business—Manufacture of wide
Offering—Price to the public will be sup¬
demption of $1,137,500 first mortgage sink¬
ing fund 4Va% bonds and for additions to
manufacturing facilities of the company.
f
Underwriting
Union
The
—
Securities
Corp.,
underwriters are
C. Langlev &
W.
Inc., First Boston Corp.,
& Co.,
Inc.,
Smith,
Webster and Blod¬
get, Inc., A. C. Allyn & Co.. Inc., Hemphill,
Noyes & Co., Paul H. Davis & Co., F. S.
Moseley & Co. and E. H. Rollins & Sons,
Co., Biyth & Co.,
Harriman
variety of
plied by amendment.
Proceeds—To provide funds for the're¬
#
Underwriting—Coffin
named
&
Burr,
Inc.,
is.
principal underwriter.
Registration Statement No. 2-5523. Form
A-2.
(10-23-44).
.
,
Ripley
Barney & Co., Stone &
Registration Statement No. 2-5516.
(10-18-44).
Form
•
UNDETERMINED
We
below
present
a
list
of
Issue*
filed
whos»
deter
whose registration statements were
days
wenty
CHEMICAL CO. 1
has filed a registration for $3,400,000 first,
mortgage bonds, V/z% series, due Nov. 1, i
OIF OFFERING
DATES
Inc.
WEDNESDAY, NOV. 8
TRAILER
a
Oct.
Address—Sanford, Maine.
Business—Textile manufacturer.
PITTSBURGH COKE
(named to be changed to Trailmobile Co.),
filed
,
CO.
19,
SUNDAY, NOV. 5
Address—519
others
(name
Goodall-Sanford, , Inc.)
has
filed a registration statement for $2,800,360
3 !i%
sinking fund debentures, and
246,566 shax-es of common stock (par $10).
The securities are issued and outstanding.
1944.
has filed
.
Form
has
CORP.
the company.
of
rector
City.
to
changed
S-l.
Details in "Chronicle," Oct.
12, 1944.
.
.
GOODALL
TELEVISION
&
STORES
registration statement for 200,000 shares of
capital stock of whieh 114,000 are being
sold by the company and 86,000 shares by
Frank
Rubenstein, President and a di¬
>.
Proceeds—Net
S-L
TUESDAY, OCT. 31
capital.
The 8,600 shares
being sold by a stockholder are owned byCarl I. Friedlander who will receive the
FRANKLIN
amend¬
by
filed
be
f.
.
Offering—The
bonds
1944. Details in
MAJESTIC
1
.
«
increase com¬
Proceeds—Will be used to
,
Underwriting—To
terest,
of underwriters.
Filed Oct. 11,
"Chronicle," Oct, 19, 1944,
amendment,
sup¬
pany's working
utility.
Business—Public
redeem
group
>. %
and
airplanes for civilian use.
Offering—Price
of
the
preferred
common
stock to the public will be
has filed a registration
of common stock
the
*
is production
business
of light
LIGHTING
amendment.
registration statement for 120,000 shares
(par $5).
The shares are
issued
and outstanding and do not rep¬
resent new financing/ Shields & Co. heads
stockholder.
a
plied by
'
proceeds.
;
.. ■
Underwriting—F. Eberstadt & Co., New
& POWER CO.
*, ■
statement, for $30,-. York, is, principal underwriter.
Registration Statement No. 2-5521. Form
000,000 first mortgage bonds due 1974. ;
Address —900
Fannin Street, Houston,
S-2,, (10-21-44).
v.;,. /
HOUSTON
has filed
CO.
WORSTED
of
Address—Middietown, Ohio.
each underwriting
Co., .both of New. York,
preferred
and 33,600 shares of com¬
Of the common stock tb be
offered, 25,000 shares are for account of
the company and 8,600 shares for the, ac¬
(par $1),
(par $1).
mon
will
underwriters
are
Brothers and Goldman, Sachs &
The
—
stock
convertible
cumulative
55-cent
count
■
public
-
•
Underwriting
registration statement for 75,000 shares of
Business—Normal
Proceeds—The proceeds go'
stockholders.-
biiliard
pocket
and
AIRCRAFT CORP. has filed a
AERONCA
standing and are being sold by two
represent new financing.
public
THURSDAY, NOV. 9
The
value).
(par $10).
stock
of common
CO.
registration statement for 30,of common
stock' (no par
shares are issued and out¬
a
shares
000
INC., has filed a registration statement for
12,000
filed
has
INDUSTRIES,
FURNITURE
BASSETT
BRUNSWICK-BALKE-COLLENDER
working capital.
wilt be used for
the list of
underwriters.
Filed Oct. 9, 1944,
Details
in "Chronicle," Oct. 19, 1944.
Nelson,
its own treasury cash
deficiency. Not underwrit¬
Sept.
public
the
be
103
at
40,000
Cincinnati.
contemplated financing will result
retirement- of all existing funded
insufficient to redeem the preferred stock,
the company
the
of
.
pub¬
redemption of i$3,~
455,000 principal amount of first mortgage
bonds, 4%% series A, due March 1, 1952,
subscribed for by
remaining 40,000
to
offered
be
shares .will
■
The
from the
Blyth" & Co.,
each
LIBERTY AIRCRAFT PRODUCTS CORP.
has filed
of
sale
not
are
stockholders.
a
ercisable
a
United
WYANDOTTE
shares of com¬
Nov. 1.
Un¬
offered by the
1944,
issue of
and
remainder
the
.
which
shares
.•)
•
—
the
other
•
additional funds as may .be necessary
such
will
with
purchase
$11,400,Following
and
share and
per
UNITED STATES POTASH CO.
stock of record Oct. 20 at the rate
share for each five
mortgage bonds,.
1964,
1,
notes, Koppers Co. and Its parent, Koppers
dividend.
1944.
the
issuance
stock
share.
tion at $32 per share to the holders of its
The
notes,
the
Filed
Loughridge & Co., 4,000 shares; William R.
Staats
Co., 3,000 shares,
and Newhard,
common
Oct.
capital
"Chronicle,"
in
Details
1944.
1944.
25,
Sept.
Any
for by
registration statement for 99,960 shares of
stock (no par).
The 99,960 shares
of common are being offered for subscrip¬
common
of
due
serial
Proceeds
Blyth & Co.,
and associates at 102.5 for any of the
KIMBERLY-CLARK
&
■
938 shares of common
to
16
Oct.
preferred not issued in exchange.
They
specified a 4.15% dividend rate and com¬
pensation of $1.65 a share for the group's
service in effecting the exchange.
par
,
1944.
awarded
Issue
Inc.
Filed
"Chronicle,"
share,
per
registration state¬
a
STANDARD ACCIDENT INSURANCE CO.
has filed
to underwriters.
Details
1944.
Sept.
Sept.
exchange
the
under
$14.25
at
25
Oct.
on
.offer are to be sold
:
Offered
share of preferred
one
series
C00
KOPPERS
filed
has
COMPANY
SILEX
tion
filed
$23,000,000 first
3%
100
at
for
ment
CO.
shares of
stockholders at $7 per-
common
'
Offering—The offering price to the
will be filed by amendment,
Proceeds
Net
proceeds together
provision for all stockholders,
Columbia Terminals Co., the
largest individual stockholder, to subscribe
for additional
shares which may remain
unsubscribed.
Columbia
Terminals
will
SATURDAY, OCT. 28
KOPPERS
interest.
crued
ING
at
and
except
registration statement for $115,000,000 3 % first and. refunding mortgage
bonds,
series L, due June 1, 1974.
The
Offered Oct.
at
1944,
26,
Oct.
ferred
share,
and
lic
States.
being offered pro rata to pre¬
are
principally in . the
sale of cokej oven by¬
chemicals, pig iron, coke and
Business—Engaged
production
products and
cement,-
Avenue,
manufacturer
largest
the total 40,000
Offering—Of
common
discretion of the
SEC.
a
Robertson
the United
in
truck-trailers
of
effective, un¬
become
course
less accelerated at the
has
GAS
PACIFIC
filed
19, 1944.
Offered
in normal
Oct
ELECTRIC
Business—Second
according to dates
registration statements will
which
on
common
and
J
Commission, - for
stock, par $5.
Exchange
of
31st
—
Cincinnati, Ohio.
twenty
less than
filed
were
grouped
ago,
share
per
Blyth & Filed Oct, 10, 1944.
Offered Oct. 24 at 104 and interest by
Co., Inc., $4,100,000; Clark, Dodge & Co.,
$1,500,000; Dominick & Dominick, $1,500,Blyth & Co., Inc. and associates.
000;
Drexel & Co., $2,000,000; Eastman,
PHILADELPHIA
ELECTRIC
CO.
has
Dillon & Co., $1,500,000; Estabrook & Co.,
filed a registration
statement for $130,$1,250,000; First Boston Corp., $4,100,000;
000,000 first and refunding mortgage bonds
Glore, Forgan & Co., $1,000,000; Goldman,
consisting of $65,000,000 2%% series due
Sachs & Co., $4,100,000; Harriman Ripley
Nov. 1, 1967, and $65,000,000 2%%
& Co., Inc., $4,100,000; Hemphill,. Noyes &
series
due Nov; 1, 1974.
Entire net proceeds to¬
Co., $1,500,000; Hornblower & Weeks, $i,gether with treasury cash or cash aug¬
500,000; W. E; Hutton & Co., $1,500,000;
Kidder, Peabody & Co., $4,100,000; Lazard, mented by means of short term loans will
Freres- &
Co., $2,650,000;
Lee Higginsoi; be used to redeem on or about Dec. 1, 1944,
Corp.,
$2,650,000; Lehman Brothers, $4,- at 106 $130,000,000 first and refunding
mortgage bonds, 3V^% series due
1967,
100,000; Mellon Securities Corp., $4,100,Filed Sept. 20,
000;
Merrill
Lynch, Pierce, Fenner & aggregating $137,800,000.
1944; Details in "Chronicle," Sept. 28, 1944.
Beane, $1,500,000; F. S. Moseley & Co., $2,650,000; Paine, Webber, Jackson & Curtis,
The bonds were awarded to a syndicate
$1,000,000; E. H. Rollins & Sons, Inc.,
beaded
by Mellon
Securities Corp. and
$1,250,000; Smith, Barney & Co.„ $4,100,First Boston Corp., as joint managers, at
000; Stone & Webster and Blodget, Inc.,
a
price of 99.44888 for $65,000,000 series
$2,000,000; Union Securities Corp., $2,650,of 1967, and price of 98.94888 for the $65,000; White, Weld & Co., $2,000,000.
Filed 000,000 maturing in 1974,
Oct. 11, 1944.
Details in "Chronicle," Oct.
\
days
H. Rollins & Sons,
fex'ed to the public by E.
$1,000,000 or more are
of
writers
statements
of common
Filed Sept.
unsubscribed shax-es (74,594) of-
preferred for each 3% shares
held.
Rights expired Oct. 23.
and
Address
registration
whose
issues
added to
be
working capital.
The total bank loans as
of Oct. 16, 1944, are given as $15,000,000.
Prom
its
working capital as augmented
the
of
ratio
the
in
share
OFFERINGS
of
shares
80,000
NEW FILINGS
List
Thursday, October 26, 1944
CHRONICLE
THE COMMERCIAL & FINANCIAL
1822
offering
■
JfioW
or
more
have
dates
ago,
not
miknowr
or
but
beeD
♦<>
««•
&
1964.
Address—Grant Building," Pittsburgh, Pa.
ALVA
3.
PUBLIC
has filed
250,000
a
TERMINAL
ELEVATOR
registration statement for
10-year 6%
subordinated sinking
\
Volume
fund
due
notes,
the
used
for
and
the
1954.
purchase
house...
be
To
Proceeds will be
of the real estate
a
one
million
three million bushel
offered
mainly to
of
construction
bushel elevator, with a
head
community who
people in the Alva, Okla.,
Filed
elevator.
the grain
in construction of
interested
are
8,
Aug.
1944.
OREGON POWER
CALIFORNIA
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4328
160
has
CO.
registration statement for $13,500,mortgage bonds series due Nov.
The bonds will be offered for
sale at competitive bidding with the suc¬
cessful
bidder
fixing the
interest rate.
Company will apply net proceeds towards
filed
a
first
000
1974.,
1.,
the
redemption of $13,500,000 first mort¬
gage bonds, 4'r
series due 1966, at 195'/a
Details
Filed Sept. 28, 1944.
"Chronicle," Oct. 5, 1944.
i
plus interest.
in
Proceeds for
underwritten.
Not
interest.
Details in "Chronicle," Oct. 5, 1944.
1944,
The
has filed
EDISON CO.
METROPOLITAN
$24,500,000
1974 and
125,000 shares cumulative preferred stock
(par $100). The interest rate on the bonds
statement
registration
a
first
and
the
for
bonds series
mortgage
rate
the
has filed
registration statement for $48,-
a
000,GOO general mortgage bonds,
The
1974.
due
under
sale
be
series
for
competitive
Commission's
with .other
proceeds
Net
,
3%
offered
be
the company or other borrowings
funds of
will
will
bonds
the
rule.
bidding
CORP.
the redemption of out¬
standing
$45,000,000
general
mortgage
bonds, 3a4'b series due 1962, at 104, and
applied
vestor fears
preferred
The
mortgage bonds, 3Va%
104Vs.
Filed Sept. 29,
Details, in "Chronicle," Oct. 5, 1944.
$5,000,000
general
series
1965,
due
1944.
filed
has
statement for 25,000 shares
(par $10),
Proceeds will
be used for the acquisition of land, equip¬
ment and for working capital.
Price to
a
.
registration
of common stock
public
$.10
share.
Not underwritten.
Details in "Chronicle,"
per
Filed Sept.
20, 1944,
Sept. 28, 1944.
from
and
preferred
NY
funds
the
of
extent
the
to
company
other
and
Co.
Utilties
NJ
PA
re¬
FINANCE
statement
registration
riled
CORP.
shares
14.000
for
a
.:47<? cumulative series 2 preferred, par $100.
To be
sold to officers and employees of
and
company
subsidiaries.
ceeds
for
house
Price
buildings
May 25.
a
Co.-
$100-per
,
acquisition of. factory and ware¬
additional
trucks.
Details in "Chronicle,"
and
Filed May 19, 1944.
THE
and its
share.. Pro¬
Candy
Curtiss
'' •*
v •".■■■
■
EUGENE
CO.
FREEMAN
;
preferred stock,
cumulative, no par, and $5, $6 and $7
cumulative preferred stock, no par.
Filed
Oct. 6, 1944.
Details in "Chronicle," Oct.
12,
filed
registration statement for $300,000 trade
Proceeds will be applied to
acceptances..
organization expenses, acquisition of motor
trucks,
real
Sept.
Sept.
Details
1944.
1944.
13,
21,
"Chronicle,"
machinery,
buildings,
estate,
Filed
etc..
,
will
be
stockholders of record May. 31,
a pro rata basis at $8 per share.
Net proceeds
will be added to company's
capital and surplus funds.
Unsubscribed
shares will be sold to* Lumbermens Mutual
present
on
Co.
1944.
Piled May
"Chronicle,'" June 8,
investment.
for
Details in
1944,
29,
,
FLORIDA
tration
lative
POWER
statement
a
regis¬
shares cumu¬
40,000
for
(par $100).
The
be supplied by amend¬
will
rate
filed
CORP.
stock
preferred
dividend
Net
ment.
received
Oct..
GAS
MOBILE
to be applied as follows:
are
28,762 shares 7% cumula¬
tive preferred at $110 per share $3,163,82.0;
Redemption of
redemption of 5,940 shares of 7Vc cumula¬
tive preferred at $52.50 per share $311,850;
Georgia Power & Light Co. to
for
redemption of certain of its
provided in recap plan of that
as
General
Gas & Electric Corp. for 4,200 shares oi
S6 preferred of Georgia Power & Light Co.
$75,600, and expenses $80,000, total $5,$1,400,000:
payment
to
031,270.
Stock is to be offered for sale by
the
company
pursuant
to
Commission's
competitive bidding Rule U-50,
of- underwriters will be
tivo
amendment.
the
name
and names
filed by post-effec-
The sticcesful bidder will
dividend
Filed July 21,
July 27.
rate
the
on
stock.
1944. Details in "Chronicle,"
1944.
and
75,000 shares of common, 20-eent par
value.
The shares are issued and out-!
standing- and
the
offering
financing.,
does
not
rep¬
& Co., New
Yqrk, head the list of underwriters.
Price
.Allen
to. the public is $50 per share for the pre¬
ferred stock
and
$7 per
share for the
'
Filed
common.,
Sept. 30,
"Chronicle,'.' pet,
hgs filed
Details in
1944.
1Q44.
GERMANTOWN
FIRE
securities
of
.
subscribed
eral
public
will
the
voting
the
trust
&
May
29,
June
8,
to
the gen¬
same
for
Co.
are
1944.
of
period
a
10 years.
Filed
underwriters.
Details
"Chronicle,"
in
1944.
the
MANUFACTURING
has
CO.
registration statement for $450,000
first
mortgage
convertible
5!a c'o
bonds,
series A, maturing serially from 1945 to
1964, and 45,000#shares of common stock
($.1 par).
The shares are reserved foi
issue
upon
conversion of
$450,000 first
mortgage convertible bonds.
Underwit-*.*
is
P.
a:
Brooks
W.
will
Proceeds
of
bank
Filed
be
&
Co.,
applied
Inc..
to
New
York.
the reduction
Price range 101 for 1945
99.5 for 1960-64 maturities,
loans.
maturities
to
July 20, 1944, Details in "Chronicle,"
July 27,
1944.
offered
dividend
The
the
on
and
pre¬
.
.
..
12,
filed
$250,000
a
possible
,
impetus
which
cumulative income deben¬
common stock,
one cent
par value, to be represented by
voting trust certificates. The offering price
to the public of the - debentures is par, al¬
though certain of the debentures are being
offered otherwise than through an under¬
writer at a price less; than
100%., The
common
stock,, voting trust certificates,, is
being offered at par.
Upon completion of
the financing
the
underwriter, Bond &
10-year 6 r/r
in the early
anchor.
In
this connection it may be noted
merely
that
by
Filed
"Chronicle,"
in
Sept.
28,
Sept.
1944.
23,
has
capital
100,000
for
1944...
holders
of
will
,
by
Insurance
Co.,
Oct.
has filed
;
dation
on
too,
Drive
Y., principal underwriter
1944. Details in "Chronicle,'
N.
Inc.,
Gc.,
Filed Mar 29,
April 6,
1944.
.
-.
.
INDUSTRIES,
registration
6%, ten-year
,
WESTERN UNION TELEGRAPH CO.
POTOMAC EDISON CO. has filed a reg¬
filed
statement for $16,981,000 first
mortgage and collateral trust bonds, 3(4'/o"
series 4uo 1974.
Proceeds from sale, with
additional funds of company, will be used
istration
the
for
of
redemption
first
$11,981,000
iYs'A'i
F,
at
107 V2,
each
in
:
case
Bids
St.,
Oct.
31.
the
by
to
12
at
50
Broad
EWT
noon
RESISTOFLEX CORP.
statement
for
A
Sub¬
to
of
Names
be
B
stock
held
on
a
supplied by amendment.
1, 1944 of $25,000,000 25-year
Dec.
on
class
purchase
plus whatever general funds are
will be applied to the redemp¬
5%- bonds
on
1 '
;
date
Proceeds
tion
of
shares
to
the
them
entitling
necessary
company
York,- up
New
class
scription warrants will be issued to present
of company's class A and class B
record
for-the-purchase of the bonds will
received
be
of
available for conversion.
stock to be
8V3
'*
*
shares
of
$100
principal amount of
new debentures
for each 5 shares of class A stock or each
accrued interest,
Bonds to be sold
at
competitive, bidding.
Piled Sept. 22,
1944..
Details
in
"Chronicle," Sept. 28,
"
number
terminate
stock
plus
:
has
registration, statement for $24,603,debentures and an inde¬
a
convertible
holders
mortgage gold bonds, series E,. 5'A, at. 105,
and $5,000,000 first, mortgage gold bonds,
series
000
at 105% plus accrued interest.
underwriters and interest rate
to be
has
filed
supplied by amendments.
Filed Ang.
18, 1944.
Details in "Chronicle," Aug. 24.
The directors Sept. 5 voted to direct the
regis¬
a
shares of
officers to formulate plans to invite com¬
Proceeds for adpetitive bids for the new bond issue.
Price to public
Due to
a
decision of the N) Y. Public
$4- per * share,
Herrick,, Waddell & Co.,
Service Commission that it has jurisdiction
Inc., New. York are underwriters.
Filed
over the proposed issue, the company haf
1944.
Details in ' "Chronicle," '
Sept. 16,
decided to defer the issue temporarily.
Sept. 21, 1944.
tration
100,000
stock ($1 par).
ditionar working capital.
common
,
5
a
AND
W
FINE
registration
of;
common
working
FOODS.
capital
(par $10).
which may
.
improvements
house
INC.
statement for
stock
expansion..
and
Blyth
VERTIENTES-CAMAGUEY
CUBA.—-696,702
stock
shares
Resigns
Surplus Property Post
and ware¬
Co.,
Inc.
underwriters. Price to public $16 per
Filed Sept. 28, 1944.
OF
W. L. Clayton
SUGAR
of
($6.50 par), U. S. currency.
CO.
common
War
had
registered, 443,850
are
outstanding and
.by the-National City Bank, N. Y
Several underwriters have agreed to pur¬
chase $1,663,500
of first mortgage (col¬
,
owned
lateral)
due
Oct.
5S' convertible bonds of company
1, .1951,
Bank, N. Y,
owned
by
National City
Underwriters propose to con¬
vert these bonds at
or
prior to closing and
Mobilization.
would
Clayton
not
that
Under the circumstances, both
and
upon
job
And
weeks.
a
vast
next
few
to do
the
over
element
time
the
firms
dealer
underwriting
will be called
is the
more
of the
fact that, as in the past,
municipal
important in view
than
exerting
every
of the
will be
men
occupied
other
busi¬
15.
smith,
g.
Trust
Y..
N,
Treasurer
HARVESTER
COMPANY
Quarterly dividend. No.
105 of
one
dollar and
seventy-five
cents
($1.75) per share on the
stock, payable December 1, 1944, has
declared to stockholders of record at the
close of business November 6, 1944.
preferred
beep,
SANFORD
WHITE
B.
Secretary41
cf
ignation on Oct. 3, relinquished
his
post.
Mr. Byrnes has ac¬
cepted an
interim appointment
is named.
Mr. Clayton told reporters that
he was desirous of returning to
cotton-exporting business with
the firm
of
Anderson, Clayton &
Co. in Houston, Texas, of which
he
Chairman
was
before
years
in
mailed
as
.
to
Board
STATES
LEATHER
CO.
of Directors at a
meeting held
1944,
declared
the
following
divi¬
dends—tne regular quarterly dividend of $1.75
per
share
on
the
Prior
Preference
stock,
payable
January
1,
1945, to stockholders of
record.
November
13,
1944,
and
a
dividend
of $2.0G per sharo on the Class
"A" Partici¬
25,
pating
and Convertible stock; payable 50c on
15, 1944, to stock of record Novem¬
1944, 50c on March 15, 1945, to stock
record February 1C,
1945, 50c on June 15,
December
ber,
of
13,
1945,, to stock of record May 10, 1945 and 50c
payable September 15, 1945, to stock of record
August 10, 1945.
C.
New
York,
October
CAMERON,
25, 1944,
Treasurer.
ago.
The
New York
Surplus
istrator
"Times"
we
last February,
to
Admin¬
that
post
and operated under
authority of a Presidential Exec¬
utive Order until yesterday [Oct.
approved by the President.
He [Mr. Clayton] declined to en¬
was
on
his
previous
considered
"unbusinesslike"
administer.
;
the
and
statement
to
be
difficult
to
act
•
,
land acquired for war purposes.
As far as surplus plants are con¬
accept
crucial
Maxwell Fuller, partner in
the
New
died
his
on
York
Co., members of
Stock
Exchange,
Oct. 17. Mr. Fuller made
headquarters
at
the
firm's
Cincinnati office.
Act
31 when the Surplus Property
he
W,
W. E. Hutton &
Property
named
was
W. M. Fuller Dead
advices Oct.
Washington
the
take the following:
that
UNITED
Beard
The
Oct,
going to Washington four
From
4
the
of
1944,
24,
and
the
payment of these dividends will
to nil stockholders, of record at tbeir
they apnea'.* on the books -of the
Company unless otherwise instructed in writing.
c. e. a. McCarthy,
Vice-President and Secretary.
be
addresses
.
the
on
year
ended December 31,
1943, payable
December 15, 1944, to stockholders of record
close of business November 15, 1944.
,
successor
October
Dollar
share
per
the
Checks
coming War/ Loan Drive.
until his
York,
One
Twenty-five
preferred stock
of Southern Railway Company has today been
dec.aved, payable December 15. 1944, to stock¬
holders cf record at the close of business No¬
vember
15, 1944.
A dividend of Seventy-five Cents ($.75) per
share
on
1,298,200 shares of Common Stock
of
Southern
Railway Company,, without par
value,
has
today
been
declared
out
cf
the
surplus of net profits of the Company, for the
on
of the
success
New
at
in
effort in behalf
complete
SOUTHERN RAILWAY COMPANY
dividend
Cents ($1.25)
A
fiscal
less
no
groups
he
able" to him and referring to the
Board
setup
as
"unworkable."
ID,
York
INTERNATIONAL
proceeds in the
Treasury offerings.
reappointment, cerned, the Administrator is re¬
opposed the enact¬ ported to feel that the law's pro¬
ment of the Surplus War Property visions for consultation with Con¬
delay sales in the
Bill, stating that it was "unaccept¬ gress will
and
.
Mr.
previously indicated that he
h.
1944.
be carried out by insti¬
public trust funds in
According to reports, Mr. Clay¬
resignation of WHL. Clay¬
ton as Surplus Property Admin¬ ton feels that Congress has ham¬
istrator was made known on Oct. strung the Surplus Property Ad¬
4 by James F. Byrnes, Director of ministration in disposing of farm
Of shrs
1944. to
of
by- Bankers
New
and
The
are
share.
of
Steele
9,
close
order to reinvest
large
filed
shares
Proceeds for
be used for
office
&
has
75,000
at the
as
the Sixth War
is to get underway
addition, it is possible
that further liquidation of munici¬
may
Capital
the
cn
record
Co.,
16
Wall St.,
Transfer Agent.
THE
&
share
per
-November 21, 1944.
Checks will, br; mailed
on
by the
Nov. 1.
In
pals
has
Company, payable December
stockholders of
other borrowers will elect
selling
Annuity
the
comply with their credit re¬
quirements between now and that
achieved in
portion of
and
cants
to
date.
*
New York 5, N. Y.
Directors
of
ness
York,
New
,
Nov. 20, it is not unlikely that
many
involving about $25,-
Pension
30;
Life
October
a
Teachers'
.
Oct.
on
Board
this day de¬
clared a dividend of twenty-five cents per
share and a special dividend of twenty-live
and $2,000,000
Then,
Loan
$7,365,900 portfolio liqui¬
by the New Jersey State
Texas,
registration statement for 5,000
shares of $100 preferred stock, non-cumulativq
and
non-participating.
Price to
public will be $110 per share; proceeds to
company $100.
Proceds will be used for
construction of distillery, $250,000; working
capital, $250,000.. No underwriter named.
Piled Aug. 14, 1944. Details in "Chronicle,"
Aug. 24,' 1944.
a
Tim
preceded
State of Mississippi on
bonds.
This figure in¬
$14,000,000 by Houston,
cluded
BOAT
COMPANY
33 Pine Street,
on
$3,000,000
Mutual
the
may
eral awards
000,000
31,
be
as
Ore.,
$9,030,000
bids were received on sev¬
week
CORP.
DISTILLING
success
Portland,
by
be made here of
the fact that on Tuesday of this
Mention
Filed
STAR
of
the unsold
current offerings.
presently
OLD
the
ELECTRIC
★
for
received
This will
prospect, not to mention the
placing
outstanding 500,000
shares of capital stock at par on basis of
one share for each five held. Any stock not
taken by; stockholders will be sold at pub¬
lic auction.
Proceeds for working capital.
THE
of
conclusion
Secretary.
particu¬
offering,
offerings
tutions
after
degree
to
Aug. 16, "1944. Details in "Chronicle,"
Aug. 24, 1944, •
•/'"
seems,
volume of financing now
in
offered
be
it
large
filed a registration
shares
($10 par)
Stock
stock..
answer,
time
Details
THE MUTUAI/TELEPHONE CO., HONO¬
HAWAII,
final
will not be evident until some¬
at one cent
will be use for con¬
share. "'Proceeds
peak
improbable.
not
is
The
recent
to
advance
an
levels
trust. certificates,
voting
per
struction.
dealers hold to the view
some
that
Goodwin, Inc., will be entitled to purchase
25,000 shares of common stock represented
temporary
a
District, 111.,
Nov. 2.
It
prices, which reflect standings
part of the year, con¬
stitute a permanent base or is
and 230,000 shares of
FREDERICK BRAMLEY,
■
Montreal, October 10, 1944.
is
set-up
by such
of
000
tures
By order of the Board,
and is highlighted
heavy
which bids will be
early, of course,
conclude that the present level
to
scheduled
next week's calendar,
present
tary
would appear too
statement for $1,600,-
registration
a
holders of record at 3 p.m. on November 1,
1944.
by the $27,000,000 Chicago Sani¬
the
buyers
Inc.
Miami, Fla., bonds.
larly
yields
optimism on
generally.
greater
of
Co.,
today, when bids will
opened. on an issue of $7,600,-
the
offerings undoubtedly was very
heartening to the trade and be¬
spoke
a
.
occa¬
more generous
Stuart &
large issue is
As for
the quick response with
investors
greeted
recent
offered,
has
CLUB
the
RH 83 & 84
award
000
on-hand from earlier awards.
part
JOCKEY
be
to
:, Conceding'
sioned by the
meeting of the Board of Directors
held today a dividend of two per cent, (fifty
cents per share) on the Ordinary Capital
Stock in respect of, and out of earnings for
8-9137
Halsey,
Another
for
.substantial unsold balances then
1
1944.
PARK
re¬
break the stale¬
mate
that
developed
some
weeks back in the case of the
funds, to'
the 252,852 shares of common stock which
INC.,
statement
for are received, by the underwriters on such
debentures matur¬ conversion, together with the 443,850 shrs
ing Nov. 1, 1954.
Debentures to be of¬ previously mentioned, will make up the
fered directly by the company at par and total stbek to be offered. Harrlman Ripley
PARK
LINCOLN
has,
it
6/A cumulative preferred stock at $110 per
share.
Filed
Oct.
4.
1944.
Details
in
"Chronicle," Oct.
the average
Dividend Notice
At
the year 1944, was declared payable, in
Canadian funds, December 1,1944, to Share¬
by
15 to 25 basis points which made
bonds, 3aA'/o series due 1961, at Jp4}i»
to the redemption of 6,000 shares of
gage
on
Treasurer
RAILWAY COMPANY:
of
offer¬
these
on
Telephone
business
of
Checks will be mailed.
CANADIAN PACIFIC'
CRAIGIE&CO,
System Teletype:
the close
at
1944.
..Edmund A. Harvey,
-F. W.-
Bell
pay¬
October 25, 1944
MUNICIPAL BONDS
RICHMOND, VIRGINIA
flected the lower levels of from
and
together with general
$2,000,000;
These
ings.
at
the
on
placed
10,
CAROLINA
Company,
December 1, 1944, to stock¬
record
of
holders
November
the
by
Cents
Seventy-five
of
Tobacco
American
able in cash on
NORTH and SOUTH
in
matter
the
in
underwriters
prices
was
dividend
share has been declared upon the
Stock and Common Stock B of
per
Common
on
The
the
the go^)d
exercised
judgment
successful
rate
rate
bonds
sale
for
the
interest
achieved
success
preferred
stock are being offer^H for the account of
the corporation, while the common stock is
being offered by Consolidated .Electric* &
Gas Co.,
parent,- which owns all. of, the",
common shares of company,
except ~dir.eeors' qualifying shares.
Company will.ap¬
ply the proceeds from sale, of bonds and,
preferred- stock, estimated at not less than
plant
HANCHETT
filed
offered
be
price.
All stock-;
asked to deposit shares in
at
holders.will.be
Bioren
the
stock.
ferred
CO,
a
shares of
not
has filed
CORP.
with
bidding,
bidder inaming
and
be
to
are
competitive
1944.
INSURANCE
registration statement for 50,common stock, $20 par, and
voting
trust certificates for
said
stock..
Policyholders of Mutual Fire Insurance of
Germantown
are
to
have
pre-emptive
rights to- subscribe for the common stock
at
$20 per share
irt proportion
to the
respective premiums paid by them upon
insurance policies issued by Mutual.
Vot¬
ing trust, certificates representing shares
000
relatively short order.
A11
important factor
12 noon EWT on
SERVICE
Wire Bids
VIRGINIA-WEST VIRGINIA
,
FOREMOST DAIRIES, INC., has filed a
registration statement for 13,000 shares of
preferred stock, 60
cumulative, par $50,
resent, new
room
statement 'for
$1,400,000
mortgage bonds, series due Oct. 1,
1964, 6,000 shares of cumulative preferred
stock/par $100,
and 100.000 shares of
common stock, par $7.50.
All three classes
LULU,
company
at
company
registration
statement
securities
the
securities
the
first
tent required,
be-used
by
of
1944.
30,
proceds from the sale of the
new
preferred stock, together with addi¬
tional funds from the treasury to the ex¬
donation to
purchase
MONMOUTII
a
Casualty
the
for
2401, 61 Broadway up to
"
registration statement for 48,H8J
shares
of
capital
stock
(par, $5),
Shares are to be offered for subscription to
1S44,
prior
in
EXCESS INSURANCE CO, OF AMERICA
tiled
dividend
1944.
Bids
filed
has
$7
157111 Common-Dividend
regular
(75d)
con¬
y
New York 3, N.'Y.
Fifth Avenue
111
A
their response to new
having been rather im¬
cerned,
4%, $4,684,000 and series G, 4Y, $11,710,and to the redemption of outstanding
and
was
was
v
ATEO
rejected, while in the. case
the high bid
made by a syndicate headed
emissions
the redemption' of $1)400,000 of first mort¬
has
were
the
for
bids
of the Houston loan,
pressive* In consequence, under¬
writing groups for such recent
offerings as the $33,000,000 Los
Angeles, Calif., $12,000,000 Port¬
land, Ore., and $9,450,000 Baltic
mores
found it possible to dis¬
tribute the bulk of these issues in
900
$6
interest
investor
as
quired are to be applied to the redemption
of the following securities: First mortgage
bonds
EQUIPMENT
to the outlook for
as
the
two
NOTICES
jfvt/
latter loan
The
heavy flow of the new business
that developed in the past 10 days.
This was particularly true insofar
on
amendment.
by
stock will be offered
the Commission's com¬
petitive bidding rule.
Proceeds from the
sale of the new bonds and preferred stopk,
together with $9,049,900 to be received
bonds
a
INC.
in¬
of
result
a
for sale pursuant to
filed
be
at
TERMINALS,
COASTAL
as
price level during the recon¬
version period, reacted more than
favorably
to
the
exceptionally
to
.
weeks
recent
bonds, series D 4Va%, $20,330,500, series E
POWER
YORK
NEW
CENTRAL
market, which Fund, and a $3,000,000 Craven
North
Carolina
issue.
handicapped in County,
municipal
has been severely
due
dividend
will
stock
DIVIDEND
Municipal' News & Motes
Filed Sept. 27,
working capital,
additional
1823
period immediately after
the war when prompt utilization
Mr. Clayton is expected to remain of the plants for peacetime oper¬
at his post for a short time, until ation will be needed to provide
Mr. Byrnes, who tendered his res¬ jobs.
Situations Interesting
In Conn. Companies
Chas.
W.
Scranton
&
Co.,
209
Church Street, New Haven, Conn.,
members of the New York Stock
Exchange, have prepared memo¬
randa on Acme Wire Co.; VeederRoot, Inc.; Scovill Mfg. Co.; Ar¬
row-Hart
&
Hegeman Electric
Co.; Landers, Frary & Clark, and
United Illuminating Co., Connec¬
ticut situations which appear at¬
tractive at current levels.
Copies
of these memoranda may be had
Chas.
from
upon
W,
Scranton
&
Co.
request.
Previously
served
as
Commerce
Mr.
Assistant
under
Clayton
had
Secretary of
Jesse
Jones.
Thursday, October 26, 1944
CHRONICLE
THE COMMERCIAL & FINANCIAL
1824
Carrier
Teletype
REMEMBER
Trading Markets
Firm
1-971
NY
New
Corp. Conv. Pfd.
England Pub. Serv.
Pfd. Plain
BRITISH SECURITIES
Telephone
IT is'important
do
to you, that us we
business
no
all issues
Bendix Home
2-0050
■
OIK ivhole attention is
yours, in making
and firm trading markets in
accurate
r.ARL MARKS & ra
INC.
OVER
SPECIALISTS
COUNTER SECURITIES
-
M. S. WlEN & Co.
Members
50 Broad Street
New York 4, N.Y.
•
AFFILIATE: CARL MARKS &
40
Members
On Governments"
New
York
N A SSAU
4 5
(Continued from page 1799)
;
if it. is, it means that many banks wilt not be able to buy any
of these bonds for their savings account in the coming drive,
•
■
Security
STREET,
•/''
'}■ '•
,
Dealers
Association
NEW
Low-Priced
A
Y O RK
With
5
•
already reached their limit. ./. /
' "•
hand, if it is not cumulative, it will mean that the
banks with savings deposits have been given a much larger partici¬
telephone
Bell Teletype
telephone
philadelphia
rector 2-3600
Enterprise 6015
; /
new
york
On the other
pation directly in the drive and will get a much greater amount of
these bonds than have been available to them in the past. ... The
amount of Series F and G Savings Bonds the banks can buy for
.savings deposits is cumulative and' may not exceed $100,000 in all. . . .
-It was also- announced that the insurance companies, savings
banks and State and local governmental units would again be given
the opportunity to make use of the deferred payment plan, which
was used in the Fifth War Loan, with the period for deferred pay¬
ments in the coming drive extending to February 28, 1945. V V
;:
(Pa.)
and
furniture
//•';'
capital
premises
that bank man¬
increase the capital ratio, that is, the ratio
of capital, surplus, undivided profits and reserves, to deposits, so
that these institutions will be in a position to meet changed condi¬
to
prepare
tions with the return of peace.
.
.
.
The Comptroller of. the Currency
pointed out that while the banks today are, generally speaking, in
a strong position, the exigencies
of war financing have greatly in¬
creased deposits without a commensurate increase in capital pro¬
tection. V
The capital ratio has been a point of considerable dis¬
financial people for a long time, and in view of this
of Mr. Delano, Comptroller of the Currency,f a
advisable at this time to
consider the importance of this ratio. . . . Since the volume of bank
deposits will continue to grow, even after the ending of the war,
and the capital account will not keep pace with the deposit . increase,
study points out that it might be
recent
the ratio will continue to show further
declines.
.
,
Bank
of
a
mathematical ratio.
;
.
.
bank are intended to act as a cushion to
absorb losses that may be incurred in earning assets. ... /,. Hence the
capital funds of a bank should be correlated to the type of its assets
in general and to risk assets in particular.
What constitutes a "risk
asset" is difficult to state and no definition would be generally ap¬
.Capital
resources
.
a
It is, however, much easier to define a non-risk
non-risk assets of a bank have been classified as
■./
" ■// * ■' % ■'"4.-V-.
•' /
plicable.
asset.
of
.
The
,
.
follows:
■
...
.
hand and due from the Federal Reserve
banks. These are non-earning assets.
and other
on
Treasury bills and
(2)
_
i
certificates of indebtedness are
'
Bank
Bills
certificates of indebtedness.
have a maturity of about 90 days, and accordingly their
can hardly
be affected by a change in interest rates.
;v
Bank
of New
maturity
is
no
'
of about six
attached
risk
The
same
to
since
period and refund-
during the war and the reconversion
"
obligations maturing in two years, or so. ■ v
(3) Short-term obligations of sound political subdivisions,
such as municipal and State tax warrants, may also be treated
■
as
//
riskless assets.
COMPARATIVE
y'
y
was
to
16
1 to
6
to
12
1
to
4
to
14
1
to
4
to
15
1
to
Trust
&
Exchange
Bank& Trust
15
to
14
1
to
12
1
to
3
1
to
14
1
to
17
1
to
Tel. HUB
3
z
Co
Empire Trust Co//,.
.l.to
FIGURES
(capital, surplus, undivided profits and re¬
amount tied up in bank premises
relate
its capital funds
serves
for contingencies, less the
■;
Pressurelube, Inc.
Unlisted
Public Utility,
to
17
1
to
5
to
15
1
to
5
1
to
12
1
to
1.3
Guaranty Trust Co. of New. York___%.—_i.
1
to
10
1
to
3
Irving TrusLCo—
Kings County- Trust Co.—:
Lawyers.Trust
1
to
10
1
to
3
1
to
8
1
to
3
1
to
15
1
to
3
1
to
19
1
to
5
Manufacturers
J.
P.
New
York
Co
Trust
:
,
Morgan & Co., Inc
National
New
City Bank of
York
Public
Trust
to
17
1
to
.17
1
to
Bank
Trust
&
Co.
of
New
;
York
to
14
1
to
to
18
1
to
5
to
4
J Ratio of Capital Surplus and undivided profits to deposits.
?Ratio of Capital Funds, less bank premises and other real
exclusive of Government bonds and cash.
l'to
1.6
to
14
reported
to
this
time
to
of the New
the
below
out
clear
a
distinction
.
.
between
However, since the average maturity
City banks' holdings of Government securities is
York
well
work
national
.
included
the
in
other
assets
risk
or
assets
are
loans
.
.
to
brokers and
dealers, as well as prime commercial paper and bankers'
acceptances, which have no more risk attached to them than do
short-term
Government
obligations.
Nevertheless, it is
less
bank
.
,
.
lars
other
real
ratio
estate, to
of capital
funds,
situations
which
offer
attractive
possi¬
bilities, the firm believes. Copies
circulars, on the follow¬
ing issues, may be had from Ward
of these
& Co. upon request.
Mont
Du
Merchants
Laboratories
"A";
Distilling; General In¬
strument/Great American Indus¬
tries;;
Massachusetts
Power
&
Light $2 preferred; Majestic Ra¬
dio; Magnavox Corp.; Electrolux;
Brock way Motors; Scoville Mfg.;
Bird & Sons/Cons. Cement "A";
Riley Stoker; Alabama Mills, Inc.;
H.
&
preferred,
other assets—ex¬
that may not be considered entirely without risk.
This table shows the strong position of the New York
City banks
to the ratio of capital funds to other assets and indi¬
with respect
l-TO-10
any
It has
;
ratio
of
W. T. BONN & CO.
and
directors
large
depositors
continues to decline.
servative
.
capital resources-deposits
may
become
number of years, many
concerned
if
the ratio
This may lead to the adoption of too con¬
.
.
investing and leading policies.
Therefore, it was pointed
study, that where the ratio of capital funds to risk assets
.
.
out in this
of
to
a
is
bank
increase
less
its
.
than
1
capital
.
.
There
now
to
or
10, such
an
institution should endeavor
quality and maturity of its
to be considerable support for the
change
appears
on
Bank
120
Broadway
Telephone
Bell
New York 5
COrtlandt 7-0744
Teletype NY
t-886
V
the
stress'will be placed on the ratio
more
of
capital funds to risk assets, rather than on the much publicized, but
apparently of little value, ratio of capital funds to deposits. .
It is reported that several groups are already working on the
formulation of a new ratio of capital funds to risk assets.
Publications, Inc.
COMMON
and
' Page
Insurance
Calendar of New
Our
Telephone RANdolph 3736
Bell
Teletype—CG
939
Security Flotations 1823
Securities
Funds
—
..
..,.
Our
Utility
—
Sold
-—
ESTABLISHED
115
New
Quoted
on
York
1920
Security Dealers Association
Teletype NY 1-1493
..
.1806
1799
Real Estate Securities...
Securities
Salesman's
Tomorrow's
.1800
Corner (The) 1813
Markets—Walter Whyte
Says
.......1798
Ohio Securities Section
1802;
Savings and Loan
editorial
tion
material
011
page
Associa¬
on
page
1817.
Offerings Wanted
Empire Sheet & Tin Plate
6s
—
Com,
Dept. Stores
—
6s
15 Manhattan
Request
Bel! System
.'•<*/..
Securities,...... ,...1793
American
BROADWAY, NEW YORK 6, N. Y.
Tel. BAiclay 7-0700
1808
Railroad Securities
PREFERRED
6/68
BRISTOL & WILLETT
of
;
Report...1800
Reporter's
Public
Slj. "A"
Pacific Coast Cement
Pfd.
Members
,.1804
Items.,,,. 1819
Reporter on Governments.... .1799
QUOTED
Chicago
Stocks.:
Personnel
4s
Inc.
208 S0. La Salle,
y
'
Broker-Dealer
Mutual
a
10 has been the practice for a
DEB.
REMER, MITCHELL & REITZEL
Machine
Municipal News and Notes.........1823
been pointed out that since
1 to
'■/.
'
Canadian
BASIS NORMAL
Descriptive Summary
—
American
B.
,///
INDEX
/
...
Stocks & Bonds
SOLD
for
several
on
showing the protection that these institutions have against assets
Bought
—
for¬
manager
Baltimore
Lumber & Timber
BOUGHT
Bank
was
Cooke
clusive of Government bonds and cash—has substantial value in
Industrial
III. Power Div. Arrears
Mr.
currently
and
believed that the
premises and
John¬
...
maturity average, which is less than five
years, and in some instances under two years, for the New York
City banks, their holdings of Government obligations along with
cash are considered in this compilation to be non-risk assets.
Likewise
H.
Attractive Situations
...
.
at
R,
Ward & Co., 120 Broadway, New
York City, have prepared circu¬
applied against assets, and most specifically against risk assets.
It was pointed out, in this study that it was not possible to
get the
information
newly-opened
of
other assets
It had been stated the ratio of capital funds to
deposits has very
little meaning since the protection in these capital funds should be
the riskless and risk assets,
the
A. W. Benkert & Co,
estate
Dec. 31, 1,943, for all insured banks.
on
Berke¬
resident-
now
First National
Co.,
merly
MD.—C.
is
office
Building.
As is indicated in the table, the ratio of
capital surplus ancl
undivided profits to deposits, with only a few exceptions, is above
the traditional ratio of 1 to 10, and compares with the ratio of
1
&
son
Jr.
of
Baltimore
4
1
1
Co.
Cooke
manager
6
1
Trust
BALTIMORE,
ley
3
to
Company
National
United States
1
1
York—..
New
Real Estate
Douglas Shoe Pfd.
Mgr.
For Johnson In Ball,
1
1
Avenue Bank of
Macfadden
Giant Port. Cement Arrears
Teletype BS 69
G. B, Cooke, Jr.
>
Eastern States Pfd.
SQUARE
MASS.
9,
1990
5
National'Bank^A//_A/„__/'-/-^---
Fifth
First,
belief that from
pointed
OFFICE
BOSTON
6
to
POST
10
5
to
1
*
to
,1
1
Co
National Bank & Trust Co.
19%
for Copies
4
1
Bank
Continental Bank & Trust Co.Corn
8
1
_
to
1
i
Co
& Trust
National
investments.
out that in endeavoring to maintain adequate
eaoital funds against assets -subject to depreciation, a bank should
It
Bank
1
...
ing period interest rates, will not be permitted to rise to an
extent that would materially depress the price of Government
/
Hanover
20
1
__
Available—Send
LERNER & CO.
<S)
ta
1
York
Circular
/.//
•
1
/
.
314
-
Div. Arrears Ctfs. 1814"-
ended
'",/</
it)
to eight months, it is stated that there
cates that these institutions are in a strong position to handle
Treasury bills or certificates of mdebt-,
type of situation that may develop with the coming of peace.
be said about prime banker's accept-
'
/
Co.—
period
■'/■ ..//
can
prime commercial paper.
Government securities
with a maturity of one to two years may under present condi¬
tions also be considered for all practical purposes riskless assets,
:
the Manhattan
Commercial
payable in one year, the range
and
ances
/■ /■:;//•'/
'
the
for
are
-
price
While
fluctuations caused by changes in interest rates is obvi¬
ously limited.
Furthermore, since the certificates held by in¬
dividual banks have spaced maturities, resulting in an average
edness.
figures
Trust'CompanyA,
Brooklyn. Trust Company
1
of price
1
These
cash.
Stocks 3V6
of
■
■
Cash,
(1)
and
Bankers
Accordingly, it is quite evident that at
cannot be reduced to
shows the ratio
:
.
the end of the con¬
version period the ratio of capital funds to deposits will be lower
than ever before in the history of the country. ... The tradi¬
tional ratio of $1 of capit&l resources to $10 of deposits—or a
10% ratio of capital resources to deposits—it was pointed out
lacks a scientific basis, as the test of adequacy of capital funds
bonds
Sept. 30, 1944.
.
statement
New York City banks
comparison
to deposits, and the ratio of capital funds, less bank
other real estate, to other assets, exclusive of Gov¬
and
ernment
Central
A
...
resources
Chemical
/Recently the Comptroller of the Currency urged
andjixtures) to total risk assets.
recently made of the 23
Chase
:
CAPITAL RATIOS
the
Industry
an
Bright Future
Giant Portland Cement
1-5TG
'
and
Stock in
a
,
since they have
cussion among
HA. 2-8780
1-1397
Y.
N.
4
,•
agements
Security Dealers Ass'k
Y.
Kobbe, Gearhart & Company
INCORPORATED
"Our Reporter
N.
Exchange PL, N. Y. 5
Teletype
CO. Inc. CHICAGO
App.
Greyhound Corp.
(Actual Trading Markets, Always)
'
,
THE
-
-
FOREIGN SECURITIES
v
Hone Pfd.
Greater N. Y. Brewing
with the general public,
,
HAnover
Micromatic
&
Com.
Hill, Thompson & Co., Inc.
Markets and
.120
Situations
for Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
@FedFRASER