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"""Final Edition
THURSDAY
| OCT 3 0 $42
Section I
In
2
Sections
-
Beg. XJ. 6. Pat. Office'
Volume
Number
156
4120
New York N.
Y., Thursday, October 29, 1942
By ERNEST R. ABRAMS
Appreciation of "the greater spirit of cooperation on the part of *>
regulatory bodies, State and Federal," was expressed by John S. all to even greater patriotic en¬
Fleek, of Hayden, Miller & Co., Cleveland, in his annual address as deavor.
"This morning we must devote
President of the Investment Bankers' Association of America, with
time
to
certain
our
dence
cussion of details
is
growing that there is af
trend
to
promote
the ways in which the SEC procedure
could be speeded and simplified
more objective
methods
of without sacrificing the intent of
distinct
the conference
the
table
lining procedure for the duration
might well be that:
Companies
with previous registration state¬
in
dis¬
cussions
be¬
tween the reg¬
and
ulators
regulated.
the
This
is
most
important
i n
its benefit to
••
th? PHblic' at
••
Act.
u
st
r
is
y
struggling t o
do its ordinary
business,
John S.
now
greatly re-
Pleek
"
simultaneously
its
time
to
give
further
to
and
freely of
stricted,
^
the
sale
of
doubt¬
less many instances constantly oc¬
curring
be
where
better
would
would
nation
served,
and
industry
interest
substantial
save
and
cost
the
service
channels of
charges, if the
private finance could
be utilized.
But the time element
alone, involving the undivided at¬
executives who should
tention of
be
concentrating
work,
war
on-
have
been
kept
detailed
registration
a
statement
new
securi¬
his
In
concluding remarks Mr.
said:
national
It demands
citizens
other
interest is
gether
of
that
us
para¬
and
all
work
we
to¬
united people exert¬
ing the maximum national effort
to
as
a
wii) this
titantic struggle for
address
fol¬
is my
<.
•
of comment that
the Government's way of financ¬
ing is the simple and streamlined
method,
while
the
investment
bankers way is entangled in much
imposed red tape.
"We
believe
there
are
many
here
today and
this session of
you
open
'
officially
vention in the
at the old Waldorf.
ing not only starts
Today's meet¬
our 31st year
its way but marks
on
three
decades
con¬
City of New York
of
the end of
honorable
his¬
has
aided
in
are
affecting
one
of
such
for higher
most
by which
and
country
in
Now
this
we
are
of
one
we
have
served
world
one
war.
serving in another—
greater propor¬
even
every
calling
us
public service enterprises should emerge from the
relatively healthy condition.
This will be due, in
large part, to the greatly expanded use of power by in¬
dustries contributing to the war effort.
But what of the post-war era? , Will industrial
power
consumption hold to present levels, once war demands are
war
in
Will other classes of
Will
enthusiastic
trade
pro¬
association
bringing victory to our
by contributing its training
experience in its specialized
field.
In
our
this
case
primarily
rendering what assistance
(Continued
on
1521)
page
INDEX
Page
Blink and Insurance Stocks.... .-.^.1518
Calendar of New Security Flotations. 1542
Investment
Trusts
1519
................
Municipal News and Notes.........1520
Oiir Reporter on Governments
1544
Our
Reporter's Report........ 1......1514
Personnel Items
1516
...
Railroad Securities
Estate
a
use
decline in industrial
enforcement
of
the
"death
sentence," plus the impact of increased Federal taxes, drive
privately owned electric utilities into public ownership?
Will punitive Federal regulation further harass these en¬
terprises after the war?
To what extent will their service
be
"blitzkrieged" by public
uled for post-war construction?
must be
forthcoming before an
power projects, sched¬
Answers to the questions
informed opinion on the
degree of prosperity electric utilities will enjoy in imme¬
diate post-war
years can be expressed.
of
no
Perhaps, as a preface to this inquiry, the present status
privately owned electric utilities should be defined.
At
time in the 60 years since the
industry was founded have
electric utilities
continuous
been better
and" reliable
equipped to render adequate,
service
the
to
nation's
consumers
than
they are today.
In the face of sharply increased in¬
dustrial demands, they still have
ample capacity to meet
expanded needs of consumers for the duration. Not only
have none of the repeated warnings of
impending power
shortages,, sounded inJhe past eight years by public, own-^
ership advocates and Federal regulatory authorities, so far
materialized, but, today, at the all-time peak of electric
consumption, possibility of widespread power shortage in
the United
States is
more
than
remote
ever.
..1517
-
-
Real
increase their
consumers
electricity sufficiently to offset
revenues?
effective methods
such
aid in
can
Securities.
-
.1516
(Continued
1536)
on :page
Securities Salesman's Corner........1519
Tomorrow's
Markets—Walter Whyte
Says
......1540
Uptown Alter 3..................... .1538
—
IBA
War
Investment
Finance
Business
Meeting
Essential
Investment Bankers Association
v
to
War Finance Conference
Nation's Welfare, by John S. Fleek,
retiring IBA President
....1513
Great Period of Post-War Expansion,
Commercial
through several
periods of depressions and busi¬
booms
of
meeting must be to
the
by Jay N. Whipple,
industrial progress.
"We have been
ness
lives
in
serving
the public—both investors and in¬
stitutions, as well as communities,
throughout the., nation—in
pro¬
moting. the growth of municipal
and
the
on
rates
these
areas
the main objective of
us,
a
mote
....
working
of
electric utilities to about four-fifths of that earned in
1941,
su¬
importance and when the
stupendous forces of a total war
to
"Thirty ydars ago, in the year
1912, the Investment Bankers As¬
sociation held its first annual
are
preme
31st An¬
our
tions than the first and
AND CONSTRUCTION
When
of
nual Meetine.
the
QUICK ACTION ON DESIGN
gether in annual conclave.
privilege to welcome
business standards and
is worthy
tion, is reason enough for the gen¬
membership to be brought to¬
eral
means
lows in full:
basis
prescribed by the 1942 Revenue Act,
promise to reduce this year's net income of privately owned
of
"In such times
arms
Fleek's
the
ness
and
President
Despite sharply increased Federal exactions which,
ended?
Statement of the Topic
the survival of the way of life we
registration statement." Mr. Fleek
"It
of this meeting.
pose
cherish."
tory, during which time the IBA
,
no
to detract from the main pur¬
way
national considerations
the issuance of
upon
ties."
precludes going through the tedi¬
ous
routine now required for a
further said:
dis¬
our ac¬
normal field of any trade associa¬
Government bonds!"
are
the
up
"It
He noted that "there
to
tivities; but this fact needs in
of stream¬
shares, be exempted from filing
mount.
d
and
affecting
of
to date and companies with listed
which
ments
"The
n
method
business
amount
as
these, 110 busi¬
discussions, however impor¬
tant, pertaining to the limited and
Fleek
i
One
routine
a
Copy
"
Nation; Urges Simplifying SEC Procedure
the opening in New York on Oct. 19 of its 31st annual meeting and
"War Finance Conference. President Fleek went on to say that "evi¬
a
Post-War Outlook For Electric Utilities
Fleek Declares Investment Business Paramount
To
Price 60 Cents
new IBA
Banks
Vital
Pres.,1523
to
Proceedings
Starting with
page
1521
■:
War
Financing, by Daniel W. Bell, Un¬
der-Secretary of the Treasury... ,1525
Report of Municipal Securities Com¬
mittee
...,.1528
Airplane
Supplements,
Not
Sup¬
plants Railroads, by W. A. Patter¬
son,. Pres.
Included in Special Section
of United Air Lines
Meeting Government's Finance
quirements
Re¬
.1528
.1529
mittee
Japan Fights Against Own Welfare,
by Former Ambassador Joseph C.
Grew
1527
Railroad Securities Com¬
Report of
............
.........
1530
THE
Admiral Land Discusses Cargo Ship
.'t.............
... 1532
Group Chairmen for 1942-1943. .1532
Progress
IBA
.
CHASE
<.
Post-War Outlook for Elec. Utilities. 1536
NATIONAL
BANK
also
x
Invest
III connection with
each
in
REPORTS
AND
SURVEYS
U.
the
OF THE CITY OF NEW YORK
day
S.
NATIONAL BANK
A.
MANAGEMENT PROBLEMS
FINANCING and VALUATIONS
WAR SAVINGS BONDS
Head
Office
Commercial
ENGIHEERSandCONSTRUCTORS
R. H. Johnson & Co.
Established
52 WILLIAM STREET':,
Chicago
INVESTMENT
SarvFranclscd
NEW YORK
64 Wall
Established
6
and
7
King
,
.
Buffalo
Broaden your customer
service with Chase
NEW YORK CITY
Cairo
correspondent
£3,000,000
.
.
1
STREET
£3,000,000
.
SUGAR
facilities
AGENCY
William
Street, E.
C.
Exports—Imports—Futures
Member Federal
PHILADELPHIA
Albany
CAPITAL
FUND
LONDON
SECURITIES
Branches
in
principal
Syracuse
Pittsburgh
Wilkes-Barre
Williamsport
1850
PAID
RESERVE
No.
WALL
1927
Street, New York
BOSTON
Troy
FULLY
99
Cairo
Register
AND STAMPS
Sanderson&Porter
LAMBORN & CO.
of EGYPT
BUY UNITED STATES
Towns
EGYPT
and
all
the
the
Deposit Insurance
Corporation
in
DIgby
SUDAN
4-2727
H. Hentz & Co.
Actual Trading
Members
New
York
Stock
York
Curb
Exchange
Cotton
Exchange
Markets, always
Exchange
New
York
New
Exchange,
Commodity
Chicago
Board
Orleans
New
And
of
Cotton
other
NATIONAL BANK
Specialists in
thru
of INDIA, LIMITED
finest contacts in
Bankers
Inc.
O ver-The - Counter
Trade
Kenya
Exchange
Head
Exchanges
Office:
Branches
in
Colony
N.
Y. Cotton
NEW
Exchange Bid*.
YORK
Kofabe, Gearhart & Co.
INCORPORATED
Members
BOSTON
CHICAGO
DETROIT
PITTSBURGH
GENEVA,
N.
SWITZERLAND
Y.
Security
45 Nassau Street
Tel.
REctor 2-3600
Philadelphia
Dealers
Government
and
26,
Ass'n
1-578
Enterprise
6015
India,
and
GUARANTEED
Bishopsgate,
E.
Burma,
Aden
in
Uganda
C.
Paid-Up
The
Zanzibar
Capital... .£4,000,000
Capital
£2,000,000
£2,200,000
Fund
Bank
conduct*
banking
and
Trusteeships
also
every
exchange
and
RAILROAD STOCKS
Ceylon, .Kenya
and
Subscribed
Reserve
New York
Teletype N. Y.
Telephone:
the
Colony
London,
Securities
.
to
description
of
HART SMITH & CO.
'
.
New
52 WILLIAM ST.,
Executorships
N. Y.
Dealers Assn.
IIAnover 2-0980
J3.
GUARANTIED RAILROAD
——
business
undertaken
Members
York Security
Bell
BO.
New
York
—
f_€o.
STOCKS-BONDS
—
—
Teletype NY 1-395
Montreal
Toronto
Gr.
9-6400
Telephone
NEW YORK
52
Broadway
N.Y.
1-1063
Teletype
s
THE COMMERCIAL* & FINANCIAL CHRONICLE
15X4
-Trading Markets
Thursday,► October 2§, 1942
I "'"I
in;
\Ve Maintain Active' Markets in U.> S;
Liberty Aircraft
FUNDS'for
Florida Power & Light
,
$7 Preferred
,
Cbas. Pfizer & Co.
CANADIAN Securities':
Welch Grapejuice
Common
.
,
7%
Debardelaben 4s,
Preferreds
Oklahoma
Pennsylvania Power & Light
Montreal Lt., Hi. Sc Pr. 3y2s/ 1956-63-73
1 st
$£>, $6, $7 Preferreds
.
(
BROS.
Established,
Members New
40
York
GOODBODY & CO.
1920
Members N. Y. Stock
Security Dealers AssVn
RELL TELETYPE NY
Utah Power & Light
:;
f
ll.1
Teletype NY 1-672
for mailing, upon
Our Memo
.
Hugh W. Long and' Company,
Incorporated, 15 Exchange Place,
!Jersey City, national distributors
Subject:
Nut, Com, & Conv, RfdBotany Worsted Mills, Pfd. & A
Peoples Light & Power, Pfd. 8c A-B
^Elastic Stop
*253
*252
254
Wickwire
257
;of Manhattan
NeW
Spencer
"Prospectus upori request.
Our
Send
120
Research Department has many timely reports on.
various Air Line Companies.'
iri
Broadway
New
Bell
Yorlc
ANGELES
-
2-8706
Ass'it
Dealers
BOSTON
-
Wires
-
'
•.
,
Sebel
Mr.
■
.
has
NY 1-1557
,||
had
■
Officers
LOS ANGELES,
For Salesmen
CAL.-1—At the
meeting of the Bond Traders As¬
,
sociation"
E.-
of
Los
Four
Angeles, Donald
Summferell' of
Merrill
Pierce, Fqnner & Beane
Lynch.
was
elect-
Orlando, Florida, territory.
cellent opportunity.'
*,'v'V'-":
PHILADELPHIA
;at 135 South LaSalle*
cago.
Ex¬
Write giv¬
Financial Chronicle^
Box, H 21,
25
Spruce St., New Yorkv
OUR
now a
REPORTER'S
office
Sebel will make' his
Mr.
ex¬
ing: full particular^ to* advertiser,:
Captain in
•the Chemical Warfare Service of
the Army of the United States. '
Inquiries on Issues in1 these Cities Invited
pref¬
perience, wanted for Miami and
long: ex¬
a
high grade salesmen,
erably with investment trust
ment. firms in the central pari of
;the country.
He will coyer .the"
!
territory which was previously
.served for the Long Company by
Louis A. Stoner,
to
HARTFORD
BH 198
St., New York, N. Y,
4-4!>70|1
.
perience in the investment trust
ilietd and is well known to invest¬
Teletype NY 1-1288
Direct
EOS
Security
jWesfcV
L
1926
Established
Members
inc.
Stocks,- Inc.'; Funda¬
mental Investors^ Inc. and Invest
Tors Fund "C," Inc.; announce thi
;appointment;of Harry L. Sebel as
'their representative' in the Middle
;
Phone: REIctor
&
Fund,
Bond
York
have an
jOst those individtliti Air LineisSues in which you
interest, end those void be forwarded to you, promptly.
for
New York
■
25 Broad
Harry L Sebel Will
Lbs Angeles Traders
I Represent Hygh Loiig
memoranda are ready
Your request
following
AVHitehall
Teletype*NY
-
,
The
•
Bldg. Brown-Marx Bldg.
Law Birmingham, Ala.
Direct Wire
,
A.Saxton&Co., Inc.
PINE St., N. Y.
1-423'
To ffPistrihufors
Maritime
New Orleans,
fi¬
NEW YORK:
r
:
Telephone BArclay 7-0100
Members New York Stock Exchange
.
$6* and $7 Preferreds
Exchange ifad Other Principal Exchanges
115* BROADWAY
HA 2-2772
Exchang-e PI., N.Y.
€ity-Ada:Atoka
Mtgv inc, 6s, 1954 "
Steiner, Rouse & Co.
$2.75 and1 $3' Preferreds
KATZ
195?
United Public Utilities
5%s-$2'
United1 Securities
S>/«», Serial
and
^
5s-59, Pfd. & Com.
Brown Co.
Missouri Pacific
.
Alabama Mills
.
Kentucky Utilities
.
6%
Pfd. & Com.
Abitibi P. & P. 5s-53,
-
-
■
..
REPORT
Street, Chi¬
' •'/
.xa
With
,
Henry Thrall Chosen
discount
For Wartime Post
ed
President,, succeeding
L..
6th street
530 West
Rrahift
ftkwais,
MINNEAPOLIS, MINN.—Henry
^Thrall, President of- Thrall
West
Co.,
Northwestern: .Bank
Building, has been1 appointed .ex¬
D.
Vnc-.
ecutive adviser to .the Ninth Fed¬
eral Reserve District Victory
Railway
Fund
which Paul W.
Jaffray- & Hopwood* is * executive manager.
Mr.
Committee,, of
Loudon, Piper,
Comuatty
Inc.
Special
Request
'spgcta^L°-
onR
Thrall has been Chairman of the
inc
Regional Committee
Minneapolis
since its institution.-
granted' leavO
He has been
of absence by his
firm ill order to give his full at¬
tention to ,his. new post; he will
continue as Minneapolis Chairman
Of
the
Joseph
Ryons of Pacific Company,
Other
officers
the
of
Associa¬
rates,
member
banks
advances to
against Govern¬
ment- paper, the latter should find
their task of absorbing new Gov¬
cho.sen
merman; of
are
William J. Zim¬
,
dent; George'H. Earnest of Fewel.
Marache & Co., Secretary; Sam
Green of Pledger & Co., Treas¬
urer.
Forest Shipley of Quihcy
Casa
Associates; • Lawrence
S,
Puliiam of Weeden & Co., and
Clifford Hey of Nelson, Douglass
&
Co.
were' elected
members
the Board of Governors.
of
Miles A.
to* observers,
Denver Bond Club
steady
Club of Denver has
short
and
hectic
history,
Malcolm
The heavy drain oh their equipment and personnel which fol¬
lowed the Presidential ordef of last May 15 placing them under
*
Army control, appeared to spell the doom of commercial airlines
the duration.
This prospect "
was reflected in the market level
Using military planes, military
of their stocks which sank to neW bases, etc., iri addition to their
own facilities and operating under
wartime lows in April. That airline stocks have advanced 70$ orders from
the' Air Transport
on average since then is eloquent
Command, the commercial air 4
Testimonial of the change that has lines will have the task of carry¬
taken place.
ing equipment and personnel not
for
1
,
1
What
.
the
<
has*
"about-face"
airline'
caused
in
the
this
sudden
outlook
for
Princi¬
pally, it was the commendable
decision
of General Harold L.
companies?
George, Chief of the new Air
Transport Command, to carry out
,
the
huge
air
cargo, program
through the agency of the exist¬
ing airlines. This means that in¬
stead of being faced with reduced
personnel and equipment, the air¬
lines are to be vastly expanded
under the sponsorship and direct
supervision of the Army. Under
the new plan the airlines will re¬
ceive as many transport planes of
existing types as can be delivered
from the production lines—on a
"lend-lease" arrangement. Present
personnel will be greatly aug¬
mented by Army flyers.
F.
cost of war.
required reserves unles it is satis¬
large
the
the
year
.:■/<
Roberts,
Sidlo,
Co.,
&
Bernard' F.
Vice-
Kennedy,
of the
United
States
Secretary,
and
J.
Phillip
Walter J.
*.,
Co.;
aviation—as
private
the
undertaking
are
not
club:
our
expanding
But the figures on
airline
operations
just prior to'* the imposi¬
in
the'
tion of wartime blackout
effort at
War
last
May
in
the*
past.
same
securities
■
.
as
in
the
:
Vari
now
on
three
February
1942
2,170
1941
1,109
1937
500
are
They give
associated
M, Wittenstein-& Co., South¬
ern Surety Building, as Vice-Pres¬
ident and Sales Manager, Mr.-Van
Ginkel was previously an officer
of Henkle, Van Ginkel & Co., Inc.,
with
indication
of the demands which were* being
placed on The commercial1 airlines
February
1942__—!,—104.2
March
2,500
1,215
April
2,884
1,352
540
581
•
April
158.2
139.1
84.6
96.7
1937
26.1
34.6
■
.
.*
'
<Continued
on
sub¬
a-
with the rather close show¬
;
-
Investors had their first oppor-»
tuttity to look over a* new corpora'
ate issue in some
weeks, when the
successful syndicate moved to re-1
offer the $9,500,000" of first mort¬
bonds, sold* competitively by
Alabama,
Great
Southern'
Railway on Monday.,
gage
the'
The Winning group
for
Winfielrf Jacfcley
With
Barcus, Kindred Co.
MOINES, IOWA—Winfield
now associated with
Barcus, Kindred-. & Company of
C. Jackley is
March
1941
to
First In Long While
for the past ten years:
DES
highly reveal¬
some
pointed
oversubscription in Con¬
the
,■
bonds
and
sold
set
a
bid 98.577
as
25
year
reoffering
price of 99% less % to dealers.
.
Passenger Miles Flown'
such
cash
.
MOINES, IOWA—Charles
Ginkef is
new
ing of subscriptions ^ the amount
Offered on the rreceht $4,000,000,000 offering.
«
Go,
DES
;
received.
Indications
stantia!
trast
Van Ginkef Now V.-P.
G.
$500,000,000
Was well
Express
(1,000' pounds)
(millions of miles)
data
ditional
Ex¬
3 l/i %
Domestic Ait
being
months
ing.
Stock
with which he had been associated
by
Naturally, the vital* statistics of
made public.
Orleans
that time.
enterprises.
this
New
;
Treasury's
Monday, for the purpose of re¬
financing $1,500,000,000 of ma- ;
turing paper and to raise ah ad¬
has joined the New York
office, at 41 Broad Street, of
T.
J.
Feibleman,
member
of
the
the nation's
offering of
one-yeaf* certificates, put out on
ness,
J.
,
commercial
The
the investment busi¬
Coughlin, Coughlih:&
William
are
about to embark upon the largest
air transport job; in the history of
with
Clark, Amos C. Sudler, Treasurer.
United
airlines
ciated
of
;
such action becomes necessary.
George A. Searight, long- asso¬
Bosworth, Chahute, Loughridge; &
Co.-,
May,, Donald F.
throughout the Continental
Brown & Co.; William P. SarStates, but to our allies
as well.
The scope of this under¬ geant, J. A. Hogle & Co., and Ear!
taking is so big that .it is almost M. Seaman, Eau M seaman &
an understatement- to say that the
Co., were appointed directors of
alone
Searight Joins
T. J. Foibleman Staff
proportion
debt.
Meanwhile,
however,
banks,
particularly those in the inferior,
may be expected to make increas¬
ing use of this' source of relief- as-
Simons, Roberts & Co., President; change; In" his hew connectibn Mr.
E1 m e r
G.
Longwell,
Brown, Searight will continue to be active*
President;
'
Rather it appears thdt ultimate¬
ly the Reserve Board will find it
necessary to lower the rates of
fied to have the System step into
the position of depositary for A
Geo.
elected
for
Schlessman,, Owen
efflip: of new Treasury
securities put out to finance the¥
Sharkey, 'Jr., of O'Melveny, Wag-
DENVER, COLO'. -L The Bond
their
lasting an¬
a
problem of keepinginstitutions in funds against the f
enseller. & Durst, and Joseph L.
Ryons were nafhed National Com¬
Elects Roberts Pres.
in
like
swer to the
mitteemen.
Victory Fund.
the War had put the commer¬ following officers
they are doing the biggest job 1942-1943:
on
ernment
securities
substantially
Bingham, Walter & eased, at least for the time being.But this move does* not Took,v
Hurry, Hilgers & Co.i Vice-Presi¬
tion
war
Six months ago it looked as if
cial airlines out" of business.
Today
majority of regional Re¬
a
Banks having reduced their
serve
Summerell
page-1540')
114.8
33.4
i,;k!
Chicago as Manager of their local
office in
the
Equitable
Btt-vidjng-.
Mr. Jackley was for-
As
expected the bidding for the
was keen to the point where
margin of only 10 cents a bond
separated the high bid from the'
issue
a
next
..
.
tendered,
that
being
Losing No Time
Defeated in its efforts to tack
branch
•1 ■mArlv.befld.nf, .TachlovYb: Cft.«
best
98.5672.
"rider"
-
on
the
(Continued
a
recently enacted1
on page.
1539)
,
.
Volume 156'
Number 4120
THE COMMERCIAL &
We
We
pleased to
are
FINANCIAL CHRONICLE
interested in
are
135 So. La Salle St., Chicago
LONG
AND
.
Spencer Trask & Co,
.
Incorporated
November 2,
CITY, N. J.
FINANCIAL CHRONICLE
'
.
William B., Dana Company
Publishers
'
V
,25 Spruce Street,
.
New York
3-3341
BEekman
Herbert D.
*
'
,
■
i
:
Seibert,
!■
Editor and Publisher
D,
Riggs, Business Manager
Thursday, October 29, 1942
i
Published
twice
with
a
Other
Fred
H.
week
a
{
.
[every
news and
offices:
Chicago—In
charge
of
Gray,
Western Representative,
(Telephone State 0613).'
Smith, 1 Drapers*
Gardens, London, E.C.
"Field
Building
London—Edwards &
Copyright
; Company.
1942
by
William
ed
with
from
Theodore
to. 1938
ment
with
them
to
1934
head
was
Prince
and from
of
J-
'ruary 25, 1942, at the post office at
.New York, N. Y., under the Act of Mar.
.8, 1879.
'•? Y': •
,
'
United
in
States
and
Possessions $26.00 per year; in Dominion
of
as
head of the
department.
account
of
the
fluctuations
in the rate of exchange, remittances fox
foreign
subscriptions
and
advertise¬
ments must be made in New York funds.
1
i
;E,F.Hullon&Co)
SAN
to The
Financial
FRANCISCO,
Chronicle)
CALIF.-—
Thomas M. Hess has become
ciated
asso¬
Com-i
with E. F. Hutton &
160 Montgomery Street. Mr;
formerly a partner in
pany,
Hess
"MARKETS
of
In the past he was an
officer'
Shaw, Hooker & Co. and was
the
Anglo-California " Na-j
with
FOR
tional Bank of San Francisco.
ALL MORTGAGE
Security
\
CERTIFICATES
NEW
BANK
TITLE
&
CUV
YORK
TRUST
&
Elvyn Gowgili Is Now i
With Davis, Skaggs
by
COMPANIES
MORTGAGE
COMPANIES
(Special
PRUDENCE
COMPANY
Members
York
New
Stock
St., N.Y.
Bell
Exchange
NY
FRANCISCO,
CALIF ~
Elvyn S. Cowgill has become af-j
filiated with Davis, Skaggs &
Co.j
211 Montgomery Street, members
the
of
WHitehall 4-6300
Teletype
Financial Chronicle) ■>' ,'i
The
SAN
Hewburger, Loeb & Co.
40 Wall
to
San
Francisco
Stock
Ex¬
change. Mr. Cowgill was previa
Qusly with Eastland, Douglass &
Co. and prior thereto was an offi¬
cer of Franklin Wulff & Co., Inc.
1-2033
Co.
Ctf*.'
Title
Co.'a
&
Mtge.
all
other
Trust
Participation*
L J. GOLDWATER & CO!
V
DVR
-
INC.
Members New York Security Dealers Assn.
7
5.
39
Broadway,
New
2-8970
York,
Teletype
N.
Y.
1-1203
NY
Tramway Corporation
DENVER, COLORADO
The
-
Denver Tramway Co. in 1914 acquired by purchase all of
railway properties arid franchises of the Denver City Tram-i
the interurban lines of the Denver
way Co., the Denver and North-i" Tramway Corp,
western Railway Co., the Denver
The company owns and operates,
The
the
Power Co. and the Denver
way
all
Terminals, Co.- and
of the
funded
Traml
assumed
debt and other
obligations of these companies.
The
J
franchise under which the
corporation operates
was
in
Denver
1914
from
the
and
Co.
Tramway
acquired
City
issued
was
iq
1885, "without time limit,. author-^
izing operation of cable and.elee^
trie
railways,.. Validity of this
perpetual franchise has been up4
held
in final
.
court
decisions.
j
.
The Y Denver
Tramway
Corp,
owns all of the capital stock, ex-t
cept directors qualifying shares, of
the Denver & Intermountain Rail-i
road Co. This company owns and
operates
Attention
Retail
Distributors
Denver
Tramway Corp.; was incorporated in Delaware
in 1925 as a consolidation of the Denver Tramway Co.
(incorporated
1914), the Denver .and Northwestern Railway Co. and the ConsolL
dated Securities and Investment Co. under a plan of
reorganization
dated April 15, 1925,
v Y':'Y;Y'Y Y; V :':Y'Y;"'y'- -y.'-YY;Y:/;/
v- y,.
...
.
issued
Building
TELETYPE
-
Denver
was
Gibbons & Hess and its predeces¬
sors.
Real Estate Bonds
Y:.Y,
.
(Special
Ctfs.
HAnover
associated
T. M. Hess Joins:
$27.50 per year; South and
{Central America, Spain, Mexico
and
Cuba, $29.50 per year;
Great Britain,
Continental Europe (except Spain),
Asia,
Australia
and
Africa,
$31.00 per year.
Ctfa.
Co.
■
Co., after which he joined
Rodney & Co. in the same
capacity. He remained there until
research
In
Co.
Title
Bank
1934'
Canada,
NOTE—On
A
A
mond &
with Parrish & Co.
Invited
Mtge.
and
DENVER, COLORADO
Co.
.
Subscriptions
y
■
.
second-class matter Feb?
Inquiries
invest-?1
the
became
In
Complete Statistical Information
Fuller
he
Specialists
Lawyers
C o m pany
an d
advisory department of Red-,
when
4-6551
Lawyers
Vas concells, Hicks
de^"
&
WHitehall
Are
Bond
inj
and'statistics
quote.
STREET, NEW YORK
We
Mr. Lurie was'connect-:
1930
Dana
,
as
research
1941
B.
*
Reentered
associated
their
partment.
Thurs-»
advertising issue);
statistical issue on Monday]
'
day (general
;
'
a
REAL ESTATESECURITIES
Securities
.
for
or
Obsolete Securities Dept.
99 WALL
Corporation
Paine, Webber, Jackson & Cur-J
tis, 25 Broad St., New York City,
announce
that Sidney B. Lurie;
formerly of Parrish & Co., has bea
come
William Dana Seibert, President
William
Teletype NY 1-5
Denver Tramway
Sidney Lurie Heads
Paine, Webber Dept.
Office
Patent
S.
1
'
-
or
stocks
us now
Telephone;
;
"unquotable"
any
phor.ey
bonds, 'phone
Specialists in
;
own
Quy bids ring the bell every time!
Members New York Stock Exchange
■
'v
1942
COMMERCIAL and
6.
i
Spring Street
LOS ANGELES, CALIF.
*
Reg.
■■
634 South
Exchange Place
JERSEY
♦
you
otherwise
Street, New York
Telephone HAnover 2-4300
COMPANY
•••'•
15
''
?
If
25 Broad
W.
Victory!
STOCKS
Representative
as our
i
Nearer
PHONEY
PREFERRED STOCKS
^
in the Middle West
HUGH
AND COMPANY
One Week
Public Utility and Industrial
■a#
,
llCHTEIISTEin
"
High Grade
harry l. sebel
!
offerings of
announce
the appointment of
f
1515
electric
an
interurban
line for the
carriage of freight and
passengers between Denver and
Golden, Colo., and urider track-?
age agreement carries on what¬
ever freight business there is on
Edwin HarbachJoins
;
v
the
entire
business
rail,
bus
vices.
mass
in
consisting of
trolley coach ser-?
and
Also
electric
transportation
Denver
two
owns
BROWN COMPANY
Preferred
Earnings
share
approximately
in
$23
per
1941—Accumulations
proximately
$18—Curvent
ap¬
price
18 y2.
CIRCULAR ON REQUEST
CHARLES KING & CO.
61 Broadway, N. Y.
WH. 4-8980
Teletype N. Y. 1-142
Specializing
In
Canadian
Bonds
&
Stocks
interurban
lines
(21 miles)—one to
Leyden and the other to Goldenj
Colo.
Owns
of which
173
about
miles
141
of
track,
miles are-lo¬
cated within the City of Denver,
covering 76 route miles.. Operates
about
14
coach
and
of
63
153
route
in
of
Denver—a
miles of
Incorporated
Bonds and Stocks
transporta-?
Real Estates and Tractions
/ •
•:
Transportation is furnished by
about 165 rail cars (with 44'iq
reserve), 58 gasbline buses and
46 trolley coaches (4 in reserve);
a total of 269
operating units witl}
48
units
in
In
reserve.
modernization
plan
-
Utility and Industrial
gas
total
Y,Y.> Y•
tion.Y
Doyle, O'Connor & Co,
trolley
miles of
route
services
bus
miles
route
1940
j
Municipals
135 S. La Salle St.
a
CHICAGO
inaugu-.
was
■[
Illinois and Middle Western
rated
by abandoning certain rail
(Continued on page 1539)
:
Our current BULLETIN
-
r'
:
Hogle In Los Angeles
.
(Special
LOS
Harbach,
-manager,
:come
•&
Financial
ANGELES,
L.
win
to The
CALIF.—Ed-;
local
joining the J. A. Hogle & Co. staff
C.
R.
Brownson,
Bradley,
Frederick
Charles
;
'Y
'
»■":
'
■
owners
THESE CAN
OF MISSING
WITHOUT
SELVES.
SINCE
•;
Neglected Opportunities
in Solvent Rail Bonds
A, Catozella,', formerly
with Merrill Lynch, Pierce, Fen-
Hew York
had
i
Merrill
Chicago
«<
v
request
Y
Y ; Y'
-
-
St.
William A. Fuller & Co.
Member
Chicago Stock Exchange
Louis
209 S. La Salle Street
Kansas City
CHICAGO
STRAUSS BROS.
as
Y
Members New York Security Dealers Ass'n
,
32
"Chronicle" of Oct. 22 it
Broadway
-
Board of Trade Bldg.
CHICAGO
NEW YORK
indicated that Mr. Catozella
become associated with the
was
on
WIRE SERVICE
Des Moines
Manager of their In¬
Advisory Division apd
Tax Economist. : V
change,
available
THROUGH
"
DIgby
■Teletype: NY
4-8640
1-832,
834
Harrison 2075
Teletype CG 129
Lynch firm.
/
;
,
of valuable securities, stocks and
BE LOCATED ALONG WITH
are
pleased to announce that
Denver Tramway Corp. 5s 1950
.
is
THE
We
MR. GEORGE A. SEARIGHT
now
associated with
us
in
our
Denver Tramway Corp, Pfd.
New York office.
THOUSANDS
DEBTORS, WHO MOVE FROM PLACE TO PLACE
LEAVING
ANY
APPARENT
TRACE
.
OF
THEM-
Bought—Sold—Quoted
■ -
T. J. Feibleman
.
1924, WE HAYE
BEEN LOCATING MISSING PEOPLE
Member
FOR STATE AND GOVERNMENTAL DEPARTMENTS—LEAD¬
ING
>■
.
Broadway, New York City, mem¬
bers of the New York Stock Ex¬
dormant bank accounts
a
-s
Vincent
REPORTED MISSING
263,000
•
..
;R. Scott, all previously with DaCo..
•
Catozella Mgr. Of Advisory
In the
Jender, Rea L. Eaton, and Homer
vies &
'
vestment
Cal-
B.
.'
'.i
& Beane, has joined the re¬
search staff of Reynolds & Co., 120
associated with J. A. Hogle
Charles
.
her
for Davies & Co., has be-
Co., 532 West Sixth Street. Also,
.are
'
Dept. At Reynolds & Co.
Chronicle)
formerly
5
SECURITY
COMMERCIAL
DEALERS
—
BANKS
CONCERNS.
,
SKIP TRACERS CO.
-
—
.
FIRMS " AND
LAW
•
*.
515 MADISON
TEL.
PLAZA
41
New
Broad Street
Orleans
Stock
Exchange
New York
'
AVE., N. Y. CITY
3-9030
CRAIGMYLE, FINNEY & CO.
Members
Our
new
telephone number Bowling Green 9-4432
Monday, October 26, 1942
ONE
New
WALL
York
ST.,
Stock
NEW
Exchange
YORK
Telephone WHitehall 4-5290
& FINANCIAL
THE COMMERCIAL
1516
■¥
UTILITY
PUBLIC
Thursday, October 29, 1942
CHRONICLE
i-
Fort Pitt
Hotel Securities
INDUSTRIAL
Bridge Works Co.
Common and 6's
"
"
1
'
•
,
Analysis
RAILROAD
•
\
\
of
1950
'
■
•
•
•
request
on
Bought
—
Sold— Quoted
MUNICIPAL
1
r.
-
Interesting Statistical Data
BONDS
Seligman, Lu bet kin & Co.
•<
:
AC.ALLYN»®COMPANY
Incorporated
/ :
,
Members
.
.
.
-
'
.
M. S. WIEN & CO.
,
York Security Dealers Association
New
i
41 Broad Street
Boston
Detroit
Milwaukee
,
.
.
New,York
.
Broad
25
.
,
St.,
Bell
The Fort Pitt
N Y
..
1-1397
Bridge Works
Bridge Works Co., with main offices in Pittsburgh,
dividend of $1,00 per share on its common stock, payable
Nov. 10 to stockholders of record Nov.- 5.
declared
80 BROAD STREET
a
The company,
Co.
An
Example Of Increased Renting Activity
SAINT LOUIS
established for over 45 years, has been one of the
independent companies in its field, and for the past few
years has been' actively engaged^fin
defense
construction
work,' and bonds seem to have interest¬
especially in the expansion pro¬ ing possibilities through partici¬
pation in present war activity and
gram Of the steel and aviation in¬
the post-war program, and appear
dustries.
v'V
leading
;
In Downtown New York
ao9 ouve st.
1942, the 80 Broad Street,' Inc.,. will pay ,to bondjholders $26 interest, representing a full year's interest at 4% on the
Teletype—SL 60
System
System Teletype
.
Hanover 2-8780
at Canonsburg,.. Pa., and Massillon,. Ohio, has just
Pa., and. plants
Bell
Dealers Association
L
Fort Pitt
REAL ESTATE SECURITIES
^
York Security
York
Omaha
ST. LOUIS
St/k
New
New
Teletype NY 1-592
Telephone HAnover 2-2100
Philadelphia
New York
'!
f,
.,
Members
i
.
INCORPORATED
CHICAGO
Request
on
On
Nov.
1,
$650 bonds issued in reorganization of the property in 1937.'.Earnings
understood that current
are also
sufficient to provide airmail sinking-fund for retirement / It is
of bonds.
v
-■■■'
■«' : ^
'«
backlog
of
unfilled
orders
amounts to over 20,000 tons, which
The property owned by the corporation consists of two leasehold
will
probably
increase
in the
estates
and
the
36-story office^
.
-
Members St. Louis Stock Exchange
building, completed in June, 1931,
on the west side of Broad Street
between
Stone and Marketfield
Streets.
Area of the land is 12,867
Seaton Bowlin Joins
Mason, Moran & Go.
:
in
272,000 square feet. The building,
one of the last erected in the dis¬
CHICAGO, ILL.—Mason, Moran
•
Co., 135 South La Salle Street,
announce
the
association
with
&
modern and, although
erected principally for the ship¬
ping trade, has at the present time
a
diversified tenancy,
approxL
mately 90% occupied.
"'*■
formerly
Municipal Bond
Pepartment of Thompson Russ &
Co. in Chicago.
Mr. Bowlin was
in the past with John J. Seerley
&
Co.,
Kneeland & Co., and
Mitchell, Hutchins & Co.
Bowlin,
A.,
Seaton
Manager
the
of
is
trict,
their Municipal Bond Department
of
feet and the rentable space
the building is approximately
square
NSTA Service
:
'
following
taxes
F.
'
.
;
Edward Atkins
delinquent real estate
which were liquidated from
;
:
amount of annual rent
under the
leases was obtained and
bondholders accepted a new. $650
bond in exchange for each $1,000
bond.
They
also
received 10
ground
,
.
Blizzard
with
each
Leslie Carter
Interest
Robert Daffron
made
been
U
1938__«__J,__l^-
15.18%
Gerstley
Nov.
Nov.
Halcomb
-Nov.
Nov.
Nov.
1,
1,
1,
1,
due
to
beneficial
to
which do not
.
those
even
of
B.
Oler
New
-
Joseph B. Smith
Swann, Jr.
Henry C. Welsh, Jr.
John'Wurts
and 145,721
The same
The
C. Howele Young.
company
TRADING
MARKETS
REAL ESTATE
$650
SECURITIES
★
★
★
•
SHASKAN & CO.
Members New York Stock Exchange
40 EXCHANGE
Bell
payment
Pt.,N.Y.
DIGBY 4-4950
Teletype NY 1-953
several
Co.
adjustment of the
talization
Sterling Lawton With
Merrill Lynch Firm
(Special
to
The
Financial
Chronicle)
MINNEAPOLIS, MINN.—Sterl¬
ing L. Lawton, for a number of
years an officer of the recently
dissolved
firm
of
Needham
&
Company, Inc., has become asso¬
A and B stock.
to The Financial
class of stock
one
is
being considered, and it
appears
to
be
a
definite
equity for the A and B stocks.
The
H.
Fenner &
of the
company
Duff,
is
conceded
headed
by
to be one
ranking public utility ex-
from the firm
request.
upon
of directors has been
and
The board
reorganized
committed
Chronicle)
seems
of capitalization it is
Blickensderfer
,
i
w a s
previously
Co., Sutro & Co.,
Hume C.
Young has become associated with
Central
Republic Co., Inc., 209
South La Salle St; Mr. Young was
previously - with Thompson Ross
Securities Co., and prior thereto
for a number of years with Web¬
with
Beane, 169 East Flagler St. '
ILL.
(Special to The
—
.
Securities Co.
; "
(Special to The Financial Chronicle)
CHICAGO, ILL. — George E.
Wright has become affiliated with
Link, Gorman & Co., Inc., 208 So.
La Salle St.
Mr. Wright was for¬
merly with Thompson Ross Secur¬
ities Co., and prior thereto with
A. Noyes
& Co. and David
& Co.
(Special to The
to
carry
expected, ac¬
cording to informed sources, that
the Peoples Light & Power will
distribute gradually to its own
Davies &
and M. H. Lewis &
(Special
to
The
Co.
Financial
Chronicle)
MIAMI, FLA.—John J. Morley
has..been
Merrill
^
S.
added
Lynch,
(Special
Financial Chronicle)
ILL. — Harry
S.
Adams, Nathan H. Edelstein, and
Herbert H. Post have joined the
staff of Doyle, O'Connor & Co.,
Inc., 135 South La Salle St. All
were
formerly
connected with
CHICAGO,
Lowell Niebuhr
that
This is in line with the belief that
there
W.
a
says
stock
to
The
to
the
staff
of
Pierce, Fenner &
Financial
Chronicle)
NEW ORLEANS, LA. — Sidney
Bagot
is
now
with
Baumann
Investment Co., 226 Carondelet St
(Special
to
The
OAKLAND,
Weidner
Financial
Chronicle)
.
CAL. —Robert
has
E
affiliated
become
with Davies & Co., 1404 Franklir
St. • Mr. Weidner was previously
with H. R. Baker &
Wulff
Bond
Co., Franklin
Co., Inc., and Morrison
Co. In the past he was local
&
manager
&
for
Murray
A.
Schuh
Co.
(Special
to
The
Financial
'
Chronicle)
ORLANDO, FLA.—Morgan W
Price, Jr., has joined the staff oi
Financial Chronicle)
MO.—Daniel L.
is expected that 90% of the new out step by step a policy of pru¬ Denise is now with Barrett Hershares will go to the 83,201 shares dent liquidation in keeping with rick Co:, Inc.; 1012 Baltimore Ave¬
of old preferred and 10% to the the present-day policy of holding nue
Mr. Denise was formerly
After readjustment with United Funds Management
145,721 shares of A and B stocks. companies.
basis
ciated with Merrill Lynch, Pierce,
Beane, Rand Tower.
on
common
re-^
company's capi- ' perts of the country.
source
upon
.
ber, Darch & Co.
IN
then will have outstanding only 83,201 preferred
shares of
:
making additions to your personnel, please
particulars to the Editor of the Financial Chronicle for pub¬
(Special
its bonds.
B.
Co.
&
•
lication in this column.
'
intends paying off its entire
bank loan as soon as the SEC ratifies the sale Of its Mississippi
properties, according to report.
The company has already paid off
Henry H. Patton
Works
Bridge
CHICAGO,
Peoples Light & Power
v
If you contemplate
Developments In The Peoples Light & Power
The
Carl T. Pattison
John
Pitt
Thompson Ross
Milburn
Richard
Luckhurst
-
properties
McFarland, 3rd
John A.
from
request.
of last year.;
Fort
send in
26.00
loss
City-Ada-
acquire any of
McCullen
William
those
these agencies as tenants.
10.67
the
Oklahoma
district, the amount of vacant
.is rapidly/ being -absorbed
and must have the effect of being
24.26
*The reduction in this
was
McBride
had
on
Railway Co., Inc., may be
space
$22.75
-
Atoka
stock, .and
22.01
1939
1940
1941
1942
orandum
.
distributions
1, 1938__
31,
SeVmh^ee?aSvo^lyflgw»h Jieimer 4 Co.. Inc.. 42 Broadway,
New York City, which may be had
1, 1941
18.65%.
1, 1942——. 17.35%
As various Government agencies
continue to acquire space in .the
Nov.
on:
Jack Faut
Dec.
-
1, 1939-—-i-—13.75%
Nov. 1, 1940-18.89%
Bond
George R. Kemon
Benjamin H. Lowry
»
as
placed
Per
Eugene Hemphill
!
were
interest
have
j
Henry W. Harper
\
payments
following
•
Frank Haas
<•
,
cent return on The value .was
follows:•• •' V
;
•>•>,
•
property.
Derrickson
James
'
the
per
annual income basis and the
on an
Donald W. Darby
Alfred
" '
./
ended
year
present
is
stocks
has $725,000 of
bonds, due in
Rail Issue Looks Good
1950, outstanding, after anticipat¬
l - First Mortgage Income 6s of the
ing its annual sinking fund re¬
quirements of $32,000.
Current Oklahoma City-Ada-Atoka Rail¬
earnings, : before taxes, are run¬
way offer attractive possibilities
ning substantially ahead of com¬
parative 1941 period, and in spite at the present time according to a
of increased taxes for 1942-4t-is circular just issued by BrP.Berii-
was
the then value of the
Edward Christian
Charles
on
vested with them
indebtedness re¬
duced from $2,800,000 to $1,820,000, an amount more in line with
Brinton
William
new
pros¬
mortgage 6%
first
and the mortgage
Boston
George S. Burgess
Carlos Cardeza
_
stock
of
company
Henry D. Boenning, Jr.
John
1
Nov.
bond, and through the reorganiza¬
tion 100% of the stock of the new
G.
of
as
V
mon
price for the unit
each distribution date, the
Based
appraisal of the property at
that time placed a-value thereon
The 'of $2,250,000. Reduction in the
An
shares
Ferree
seems
>
the
■'For
1, 1942,
is available Nov.
in the
industry as well as
1941, the company reported earn¬
ings slightly in excess of $6 per
share on its 70,000 shares of com¬
full 4% income
Nov.
William Batten
Samuel
interest
——
Leonard S. Bailey
Herbert H.
annual
this
!
trie
The fact that
Nov.
\
Appleton
in
distribution
for
period;
during
Philadelphia Association is an af¬
filiate of "the National Security
William
terations reduced available income
district.
earnings of the property
reorganization./
are
Traders Association.
The
Building..
building was able to rerent. the
space but the loss of' income be-i
tween tenants and the cost of al¬
bonds outstanding in the
of $2,800,000 and adjust¬
ment of the terms of the ground
Flag
serving in the armed forces.
Office
Post
New
The
participation
shipbuilding
the
amount
members of
the Investment Traders Associa¬
tion of Philadelphia who are now
The
ernment agency, moving into
absorption of office space in the
and
market
situation in air
particularly interesting
in
the
manufacture
of
gantry according to special reports just
cranes.
This latter field
is of issued by Luckhurst & Co., Inc.,
Broad
vital importance' in the present 60
Street,
New
York
war
program and will probably City, on several companies they
be in the post-war construction consider
particularly attractive.
period.
'■ Copies of these reports, and mem¬
building and another, a Gov¬
own
active
for
reorganization of the prop-
gage
favorable
Air Issues Look Good
future, due to strides being made
its
erty in 1937 had to deal with mort¬
leases
•
large tenants, one moving into
proof that the property has
been benefited by the increasing
The
have
to
pects.
,
Thomson &
KANSAS CITY,
Corporation.
PASADENA,
Balch
Financial Chronicle)
ANGELES, CAL.—Harold
BHckensderfer
has, become
stockholders its holdings of scat¬ Y.
tered
properties,
retaining
for connected with Van Denburgh &
itself mainly Texas Public Service. Bruce, Inc., 523 West Sixth St. Mr.
(Special to The
.
CAL. —ClarkS(
and William
become associated
II. Wolf ha^
with Wyeth
Co., 45 South Euclid Avenue.
Balch
LOS
McKinnon, 18 Wall St
(Special to The Financial Chronicle)
was
formerly local
3VI
manag
for
Mitchum, Tully & Co., Merr:
Lynch, E. A. Pierce & Cassatt, ar
Banks, Huntley & Co., with whi<
firms
dated.
Mr.
Wolf
was
also
assi
Volume
156
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4120
1
1517
American Silica Sand Co.
l*t
MtR. Inc. 6s,
Oklahoma
1951
1
Defaulted Railroad Bonds
City-Ada-Atoka Ry. Co.
1st Mtg.
Inc. 6s,
1954
I
'
Abitibi Power & Paper 5s, 1953
O'Gara Coal Company
'/''/
.
'
1st Mtg.
,
1955
5s,
Bought and Sold
,
v
Analyses available
V
V".
.
PFLUGFELDER, BAMPTON & RUST
■.
'
r
r
61
LILLEY & CO.
4
Packard
Brown Co. All Issues
•
request*
on
Aldred Investment 4%s, 1967
■
Members
•
Broadway
New
'
•
York
1
Stock
/
.
reiep/iona—DIgby 4-4933
Phila., Pa.
Bldg.
5
r
New York
'
/,
RAILROAD
-
Minnesota & Ont. Paper All Issues
Exchange
*
'
Bell
REORGANIZATION
Montreal Light, Heat & Power
Teletype—NY 1-310
3s
'63,
1956,
Shawinigan Water & Power
1961,
4s,
1969
United Securities
RAILROAD
SECURITIES
1000% Increase in Earnings Before Bond Interest
Bralorne Mines,
,
September, 1942___ $64,599
12,492
For September, 1941--.,.-,
Interest
the
on
company's
9 mos. to
19
funded
^
Sept. 30
$409,735
Sept. 30_--/-.-~-
to
mos.
impose
in
increase'55
extraordinary
must naturally be
extraordinary develop¬
ment, which in this case' happens
earnings
due to
an
to be the construction of two
depot and a cargo plane assembly
plant—about 10 miles southeast of
mile
one
the
the
from
to
City and
main
line
of
equip
'traffic.
for
the' line
' ■■/
ator
air
The
'■
/"/
depot,
-
construction of
which began some time ago, cov¬
about
ers
1,920
acres, is
construction and
manent
pected
to
employ
of
///"/::
whose letter
about*'45,000
civilian .workmen
when
quoted.
are
in, full
Co.
is
bonds..
'*'■
than
workmen
is
understood
90%
-
complete;
large
serve
a
large
;
Army,
for
in
area
estimated
about
at
operation
of cargo
ships.
The
plant is to be of permanent steel,
concrete and masonry construction
—.«
3
ill
and
^
^
will
feet
square
_
struction
480
on
is
i
1.
about
aaa
a
about
cover
/\aa
132 miles.
.
>ji..
•!
_
with
4i
j.
the
.2,000,000
Con¬
Rock
war
estimated
that. 28,000
be
employed.
cost
is
estimated
Payrolls
mate
are
at
ultimate
first
$30,000,000.
expected to approxi¬
$100,000,000 annually when
Shawnee
Interurban
are
The two bond
issues
secured
first /mortgage on separate
mileage,
/:/y''""_•_
Other capitalization consists of
Burns Bros. Coal 5/61 A.
16,000
O'Gara Coal 5/1955
City-Ada-
/-y;'y; Atoka Ry.
'''
■.!
;■
Income 6/54
• -
•
common
stock,
Company.
1
Although designated in the de¬
gee
'
_/'••:
■
scription as 2-4s, the Oklahoma
City.,- Shawnee Interurban bonds
are really 2-6s, since they are en¬
titled
Henry Edelmann & Co.
29.
of
par, .15,922 shares, of .which
owned by the parent, Musko¬
are
Oklahoma
shares
$100
Broadway, New York
to
2%
fixed and 4%
addi¬
time to
Faced with
bond
to
psychology, rail¬
were
apparently
discover
the
out¬
standing, investment values to be
found .among the neglected "and
?
interest", liens.
ferreted
under
out
One
as
of
being
priced by
.any
the
liens
of
measure
/^Telephone Bowling Green 9-0686.
(Continued;
on
page
1936
1543)
the
^ •
Iowa
Central
5s
as
ings
4s
5s
the
Moines
&
Fort
under /way
underlying
some
rail
time.
parent
to
It has
can
,
many
be
no
Wall
63
Incorporated
1
New York, N. Y.'
Teletype NY 1-897
■ •' a
.
of
road
a
where
in
now
plan calls for par for
allocation in a new long term
par
blanket
for
solvent
a
car¬
reorganization, selling from 10 to
more
than 20 points below a bond
period it
safely be
may
ridiculously
isted outsidenf the
mortgage.
The
one
ap¬
ionable while the solvent lien has
not
been, even though - it has
basically higher earning power.
The Baltimore & Ohio 1st Mort¬
bonds
gage
are-
collateral
the
ICC
pro¬
%
1
/
Defaulted RR Bond Index
The defaulted railroad bond in¬
dex
of
Pflugfelder, Bampton &
61 Broadway, New York
shows the following range
for Jan. 1, 1939, to date: high—
Rust,
City,
44; low—14%;
Oct.' 28 price—411
secured by direct
lien on 1,632
The
even
where
first
of line, including a very
large proportion of the main lines,
that
section
vides earnings studies.
parent reason has been that the
reorganization lien has been fash¬
ing from Akron, Ohio, to the sub¬
urbs of Chicago.
It is indicated
excuse
readjust/
values in the "and interest" group
than it does in the reorganiza¬
tion
reorganization,
the
long been ap¬
investors that
a
voluntary
be hoped that the lesson, once
demonstrated, will take hold. The
only / trouble is that it requires
more study to determine such real
Street
Bell
the main line in the north extend¬
valid
strong mortgage of
the
At least for the balance of
war
low_ prices
:rederic H. Hatch & Co.
of
students
The ad¬
that sound values and
1935
for
by
the mortgage.
security buyers to the realization
Dodge 4s
mileage
covered
includes
practically all of the highly im¬
portant and heavy density eastern
lines south of Pittsburgh, and also
bond values
maturity
interest that is
tingent interest i$ well assured. It
took
the
Wheeler
proposal
to
bring the present crop of railroad
1949
1962
miles
been
to
as
4%
reorganization group, but it is to
timore
the orderly - accumulation that had
1st
this well
assumed that payment of this con¬
W.I.
1951
Des
in
ment.
6s 1932
5s 1934
4s
the
to
secured by
1938
Central
or
& 'Ohio 1st Mortgage 5s,
1948,. selling 4n the low 60s. The
only danger now seems, to be that
speculative interest may disturb
the
on
on
ditional 1% on the 5s, 1948, is not
secured by mortgage and as a re¬
sult was made contingent on earn¬
2nd 4s,
Louis
Louis
Louis
Louis
Iowa
intrinsic .worth has been* the Bal¬
rier, where undisturbed treatment
appears assured in the event of
Since
& St. Louis New
Minneapolis & St.
Minneapolis & St.
Minneapolis & St.
Minneapolis & St.
obviously
titled to
come.
undisturbed
and
(in reorganization)
Minn.
/
change in specula¬
a
-
for
there
non-cumulative.f
left
YORK
NEW
Teletype: NY 1-2050
LOUIS RAILROAD
-
in
tional, if earned. The Oklahoma
City-Ada-Atoka first 6s are en¬
6%, contingent upon in¬
The contingent interest. is.
■
un¬
section
come.
.men
surprised
"Katy").
are
this
uncertainties
.reorganization
road
first/ mort-
owned by the
STREET,
MINNEAPOLIS &
transferred to the
was
tor and investor
mortgage 2-4s due in 1954 (all of
which
With
It is
by the fact that under the com¬
pany's Chandler Act readjustment
a
few years ago the bonds wese
This group may continue to
some
6s due in
Oklahoma - City,
by
Consolidation Coal 5/60
the
mortgage, income
1954; : $400,000
WALL
ST.
/ constitutional
it.
curb
to
benefit from the
-.
workers
The
find
(4%)
earning power that
confidence
in
the
impregnable
position of the bonds in the event
of reorganization is based.
/
appeals
speculations, this speculative
riers.
Capitalization consists of $700,000
Oklahoma
City-Ada-Atoka
will
1
WHitehall 3-3450"
a
long neglected field of -medium
priced bonds of the marginal car¬
Kansas, Oklahoma & Gulf systems.
is
the
that
restricted, the Govern¬
enthusiasm
"Katy,"
complete. It is expected that the
plant will be in partial operation
before the first of the year, and it
to
of
fact
Toronto
substantiated
the premise that rails are the ideai
Island, Santa Fe, Frisco and
40%
30%
the
interest
Mortgage bonds.
fields:" Being thoroughly sold on
u
are
acres.
made
EROY A. STRASBUR6ER & CO.
/.
speculative interest in reorganiza¬
tion rails contracted sharply, and
the public, began to look to other
Of this
tions
with
can
means
extending from Coalgate to Atoka,
Oklahoma, is leased from the Mis
souri, -Kansas, Texas RR. ,hrr'
Connec•
individual
..
1-395
Confidence is further supported
certainty injected into the picture,
81.41 miles from Shawnee to Coal-
I
& Pacific R. R. Co.
in
con¬
4 -;:/•>
proportion
ment
DeuglaarAireraftl will be a manu¬ gate^ Oklahoma, and 34 miles from
facturing rather than an assembly Oklahoma City to Shawnee is
plant, designed especially for the owned.' About 14 miles of road
construction
is
difficult, to reconcile such
should be
years,
and until this
good fortune was thought
many
approximates
Chicago, Rock Island
re¬
HAnover 2-0980
NY
Montreal
of
secured
Nevertheless,., .the ' fact remains
that if the idea gains support that
speculation in reorganization rails
be nearing obsolescence.
The
line, exclusive of trackage rights,
$27,500,000.
The aircraft plant (operated by
;
trading
issues
instituted before the period
so
called
speculative^ orgy.
of
to
the middle west. The ultimate cost
is
The road has been in
stroke of
all
were
.
of
one
the largest air depots of the
designed to
be
the
,
group
6,000
some
It is
employed.
to
on
of
/"• ii
•
statements
Ry.
partial operation with
Construction
more
is
It
Oklahoma- City-Ada-Atoka
year" hbnce.
a
delaying
treatment
better,
'
present plans and the depot is in
about
in
con¬
'
a
part of the Muskogee
consisting of Midland Valley RR. Co., Kansas, Oklahoma &
Gulf Ry. and Oklahoma City-AdaAtoka/-. •'>■'*
v
operation
markets
N, Y.
Teletype
New York
reorganization plans
through aggravating litigation for
we
Chamber
ex¬
is
WILLIAM ST.,
Bell
net
bring
was
wide speculation
securities
these
HART SMITH & (ft
52
We maintain
apprehension in Wash¬
claimed that
Sun Life Assurance
a
summation of
information
above
did
.,
ington over the speculation in
organization rail bonds.
It
indebted to the Oklahoma City
of Commerce, parts- of
are
per¬
is
the
For
.
which
George
siderable
plant after the war.
//
Noranda Mines, Ltd.
Commerce
home the fact that there
Douglas Aircraft Company has
Railway. The projects are served
by a spur track from the main
Interstate
by
Commissioner Splawn and supple¬
mented by statements from Sen¬
announced that it will propose to
continue
the
operation of this
line. /
from
letter
passenger
City-Ada-Atoka
Oklahoma
propos'al to
transactions in reorganization rail¬
.
accompanied
proposal 'was
is/the only rail facility
serving this particular area. The
company's traffic is freight' ex¬
clusively, it being understood that
the management does: not. desire
Government projects—an air
the center of Oklahoma
——
both plants are in full operation.:
The Oklahoma City-Ada-Atoka
Railway
large
on
tradition by
tax
,
an
profits
on
blowing some good. The
proposal by itself would presumably have had little, or no, effect
on the market.
The terms of the suggested tax were such that it could
hardly have been taken seriously even if one disregarded its dubious
constitutionality.
However,
the<?>
' 1 '■
1
September, 1942, and 8.27 times in the 9 months' period before allow¬
ing for Federal income taxes.
y • '.
"
•'
Such
tax of 90%
a
road bonds last week held to
Ltd.;,
Canadian Industries Pfd. & Com.
The ill wind that blew in Senator Wheeler's fantastic
times in
11.74
earned
debt
38,440
51/2$, 1952
Canadian Bank Stocks
'
For
'73
SECURITIES
when
the
Ohio system as a
Baltimore &
whole is barely
able to cover its fixed charges the
earnings from the mortgaged lines
is sufficient to provide a margin
of safety of roundly 100% for the
Neglected Opportunities
'
There
in
are
many
solvent rail
hitherto
been
opportunities
bonds
which
overlooked
have
accord¬
ing to the current bulletin issued
by
Strauss Bros., 32 Broadway;
City, Copies of this In¬
teresting bulletin giving further
information
may
be had from
New 'York
Strauss Bros, upon request.
PRODUCING
OIL ROYALTIES
vK
An Ideal
Oklahoma
1st
City-Ada-Atoka Ry.
Mortgage Income 6s
Bought—Sold—Quoted
Circular
Available
upon
Request
TOtendering our clients who are desirous of
those of their Seaboard-All Florida
6s/35 certificates and/or bonds,
pleased to
which
we
discuss
with
them
we
would be
the
prices at
Inflation Hedge
We
specialize
gladly show
gest
this
clients
at
type
the
and
will
should
sug¬
Royalties
in
you
why
of
you
security
to
your
present time.
A
believe tenders should be made. /
Schedules
our
as
current
filed
with
offerings sent
the
SEC
on
request.
upon
TELLIER& COMPANY
D; F. Bernheimer & Co., Inc.
42
Broadway, New York, N. Y.
Bell
System
Teletype IVY-l-1043
1. h. rolhchild &
co.
Members
Oil
Established
n.Y.c.
Tele. NY 1-1293
Royalty
Dealers
Association
specialists in rails
11 wall street
HAnover 2-9175
Eastern
42
Broadway
1931
New York, N. Y.
BOwling Green 9-7949
Teletype NY 1-1171
THE COMMERCIAL & FINANCIAL CHRONICLE
'•1518
the
even
Thursday, October 29, 1912
DIVIDEND
clothes
we: wear may
long-term, chhr
Habits
aye
easily
NOTICES
well have definite
sequences.
Carolina Insurance
Bank and
Gibralter Fire Ins.
Insurance
Unlisted Issues
to find how mUch
tfLcMa. )Cu)(ki Cj.
■
and
York
New
Members
other
Stock
Laird, Bissell & Meeds
Members
Exchange
leading exchanges
New
cally they
ercise
Exchange
Stock
York
Telephone; BArclay 7-3500
;
!■
1 WALL St.
NEW YORK
Telephone
DIgby
4-2525
Bell
(L.
*
1-1248-49
Trading Department!
Teletype—NY
A. Oibbs, Manager
Incorporated by Royal Charter 1727
ac¬
more;economi¬
live when- they" ex;-:
or twoof YinteU:
can
modicum
a
ligence in the way theyvdo.it. vJv
This general line of reasoning,
CITY
BROADWAY, NEW YORK
120
become
and pre¬
serving their possessions in- good
order may find it difficult, after"
the emergency is over, to start
abusing them again. Also, many
people will be agreeably surprised
Inquiries invited in all
Bought-—Sold—Quoted
Who
customed to maintaining
Stocks
Homestead Fire Ins.
citizens
Our
Royal Bank of Scotland
Those.
formed and hard to break.
of
and
our
ical
y
:
embodiments
A
well.
as
•
A
Common Dividend
/ '149th
share lias been declared tipon'tlie
per
8 fVesl
'
and- Common
Stock
Common
The American Touacco
Stock
of'
B
Company',
49
pay¬
on December 1, 1942, to stock; holders of record at the close of business
able" in'-cash'
'November;,!0,c
"
:
Charing Cross, S. W. I
64 New Bond Street,
A. Harvey, Treasurer
October 28, 1942
lot
people treat their
habitation
as
in
turned
be
model, without ado,
W* I
.
ASSETS
TOTAL
.
£98,263,226
one
worldly
could
and only
though it
oil. a
new!
E. C. 2
Smithfield, E. C. I
Burlington Gardens, W. /
1942. Checks will be mailed.
; Ddmcnd
OFFICES:
.3 Bishopsgate,
.
of
throughout Scotland
LONDON
Cents
regular dividend of Seventy-five
'*(750)
not only to our trinkets,
toys but to our own phys¬
applies
OFFICE—Edinburgh
HEAD
Branches
THE ATLANTIC REFINING CO.
.^
the
as soon as
present carcass is worn out. The
vast majority of us, dn fact:,-thinte
Associated Banks:.
.
William^
NUMBER
COMMON
!
little Of our health until we
ill, and apparently it: requires
some
great calamity or " sudden
...
Ltd.
Bank,
Glyn Mills & Co.
f
•DIVIDEND
DedcOn's
v
"
;
149
very
This Week
Insurance Stocks
—
are
It
can
no
longer go to the corner drug store, to the local emporium
or to the delicatessen dealer and buy whatever it wants.
This is not
a matter of money because, collectively, we have more of that than
American
The
public is having
strange, new experience.
a
gimcracks and the gadgets are simply not to
be had and, in the words of a famous comedian, "you ain't seen
nuthin'
yet."
Uncle Samuel is^
rapidly approaching the status of will not be available freely and
The goods, the
ever.
without limit.
Old Mother Hubbard.
learn to
salutary ex¬
must
perience for the people of a land
Which has been characteristically
inuhdated with milk and honey.
have.
This may well be a
»
accustomed
those
For
aiid
able
from
pneumatic
fqod
music—by
electric button,
to
merely pressing an
l&xuries
have
more
taken
and
more
the guise of necessities.
on
Theoretically, this is apt to be
none too good, either for the soul
the waist-line.
or
In
event, Americans
notoriously prodigal
have
with
that they are
see
forms of
able
be
from
accident,
from
in-1
the
company—but the insur¬
cannot supply you
company
with
a
tion is
set of tires.
new
their blessings and their resources.
dustry show that most claims rise
Supposedly a materialitsic nation,
We have surely given a minimum
which
attention
of
to
our
Wasteful
sions.
presering
and
material posses¬
and
careless
be¬
yond relief, most Americans have
never
before
where
thev
faced
did
situation
a
have
not
more
rubber, steel, tin, wool, sugar,
btc., than they could possibly use.
In fact, our greatest worry seemed
to be that we would ultimately
be
strangled
by our
abundance.
Without
It has been
an
Would
American
average
feed
good-sized
a
family of Chinese, or
(perish the thought!).
Many
super¬
said, and
that the
exaggeration,
.
Waste from
table
own
Japanese
economists
have, quite
seriously, held the view that a
large part of our prosperity has
been
attributable
to
a
genius for
Very
about from the
scribes
few
happenstance de¬
Perhaps,
"Acts of God."
as
in the insurance business, it might
be said that God proposes but
Man
disposes. As far as fraud sis con¬
cerned, under wartime conditions,
the penalties for arson and other
destructive
acts
to
as
severe
for
give
theft
of
are
or
materials
essential
now
so
anyone
ning to receive.
This has been
particularly noticeable, of course,
in the gasoline ration areas where
traffic is greatly reduced already
have
become-in¬
ran
sponsibilities.
V
As rationing is further extended
to the balance of the country and
brand
has
clothes, the
in
be
new
no
sooner
market
model.
of
been
the
we
a
now,
Until
great
for
it
concern
whether
things wore out, or were
damaged, or lost, or stolen. There
>vere always replacements galore,
if .we had the wherewithal—and
We usually
did.
simply sign
on
If not, one could
the dotted line and
get what he wanted in
easy instalments.
so-many
car
owners
of their
re¬
periodic car and tire inspections
instituted, traffic accidehts
will doubtless become a rarity as
are
Compared with the "normal" rate
of mayhem which motorists have
been
accustomed
inflict
to
upon
pedestrians and upoh each other
through the years. Observers who
have
had
occasion
recently to
travel between rationed and
But now, for the first time in
the experience of this generation
at least, many luxuries cannot be
rationed
non-
have remarked
areas
the
ordinary
or
and
necessities of
money,
even
life
Specialists in
PHILADELPHIA
BANK STOCKS
the great contrast
in driving hab¬
volume of traffic, in the
appearance of the vehicles on the
road and in the
general public
psychology. It is surprising, per¬
haps, how quickly the population
of various sections has adjusted
itself to the imposition of restric¬
its,
in
tions which
instincts
not
PHILADELPHIA
TRANSPORTATION CO.
SECURITIES
and
A
carried
manent
the
to
little
the
to
discipline, if
point of per¬
regimentation,
good.
whether
At least
we
like
it
may
in
be all
can
we
or
whether it works out
From
1510
CHESTNUT
STREET
PHILADELPHIA
RITTENHOUSE
8500
Cunningham, Treasurer of
Ballard-Hassett
Company; Valley
Bank
Building, Des Moines,Towa;
will become a Lieutenant' (j. g.)
in the U. S. Navy on Nov. 23.
see
an
the
care
;
Jr.,
:
Hagerstown, Md., is now serv¬
ing in the armed forces.
Russell Gartley, partner
to
lavish
upon
our
with
ficer
our
lawn
and
our
of' Thirty - (301
declared
D.
in
Roger Hopkins, Jr.,
& Co., Sixth
Grand, Los Angeles, Cal., has
been
commissioned
a
the
on
Cents
Capital
business, November
13,
1942.
($10.00
heretofore,
Louis,
Raton,
Rocky
New
Mountain
Mexico,
now
serv¬
ing as a Lieutenant in the U. S.
Navy. Mr. Metcalf was formerly
head of the Des Moines
Corpora¬
tion, which has discontinued busi¬
ness.
■' "■
■
-'■:
•-> ■:
Joseph
Netter,
II,
close
the
.
Tc Confer With SEC
,
Co.
Pacific
&
October
22,
&
1942L
Co., Chicago, President of the
Investment
The
of
above
$5.00
the
per
Company
Company
close
cf
;
50
the
to
cents
be
share
per
stockholders
ness
/-■
will
not
'■
1
.
Bankers
and viohn S;
Fleek, Hayd.en; Miller
14,
at
the
1942
of
November
busi¬
close
GAS
lor
at
close
the
1942.
ot
H.
business
November
DIXON.
asked
First
Lieutenant in the U. S. Army
nance-Department).
•
.
-
(Fi¬
A ;
Manufacturers TYust Has
Treasurer,
Manufacturers
55- Broad
Trust
Company,
St., New York City, is
a
pamphlet,
"The
1942," which con¬
distributing
Revenue Act of
the
text
law
President
with
an
of
by
the
bill
which
the signature
of
Oct.
21, 1942,
explanation of the various
on
provisions, as well as charts and
tables showing the application of
the
new
Copies
quest.
rates.
may
be
had
upon
re¬
James
A*
price disclosure rule.
informal
add
6,
on
the issues involved
information
the
to
the
SEC has been accumulating from
comments from
interested parties
solicited by the Com¬
mission When the original draft of
which
the
were
proposed regulation
out.
was sent
It is understood that before a
final draft of the rule is
THE UNITED STATES
The Beard 'cf Directors,
October
■
28,
declared
1942,
dends:
■
A dividend
of
at
a
tha
Mr.
CO.
LEATHER
held
meeting
following
divi¬
$8.90
per shave on the Prior
final payment On account
as
of- arrears, payable January 4,
1943
holders of record November 10, 1942.
to
stock¬
.
C.
New
York,
October
prepared
make recom¬
will
probably" embody
of
some
the:
practicable suggestions contained
in the many letters received byf
the
.
regular
quarterly
dividend of $1.75 per
share on the .Prior .Preference stock, payable
January
4,
1943
to
stockholders
of
rtcord
December
10,
1942.
A dividend of 25c per share On the Class A
Participating
and Convertible
stock,
payable
January
4,
1943
to
stockholders
of
record
December
19, 1942 and a dividend of 25c per
share payable April 1, 1943 to stockholders of
record March 10, 1943.
Treanor
mendations to the SEC which will
Commission,
A
although
Mr.
Treanor has declined to comment
at
this
time
what
on
mendations may
await the
With Mr.
his
recom¬
be, preferring to"
discussion'
result of his
Fleek and ML
Whipple.'
CAMERON, Treasurer/\
28.
1942.
Hotel Securities
Analyses
Sargeaht And Wilson
: With Hogle In Denver
hotel
of
j
securities,
which should be useful to dealers
J; A. Hogle & Co., Salt Lake City,
interested
in
properties of this
character, have been prepared by
Seligman, Lubetkin & Co., Inc.)
41 Broad Street, New York City;
Copies of these analyses may bd:
Utah, members of the New York
had
•
j
Pamphlet On New Taxes
with
It is expected that this
with the Baltimore office of New-
a
today
Securities and Exchange Commis-*
to discuss the proposed bid-
■
E.
retiring
the
Association, are
sion
will
CORPORATION
$7
ot: record
meeting
of the
Oonference
Treasurer.
per share was declared
Preferred Stock of the Corporation
payment December 1,' 1912, to stccknclders
on: the
Cincinnati,
Co.,
President
;
L.' BONNYMAN,
UNITED
&
Transfer books will not
a/dividand of ,$2.75
associated
as
Association^
Treanor, Jr., Director bf the Trad-1
ing and Exchange Division of the
,
84
NO.
-
P.
-
record
1942.
the
at
payable
books
■
of
has declared a dividend
on the Common
Stock
payable
of
Octobei' 31,
closed.
;
1942,
,■
Company,
Stock
record
DIVIDEND
The above Company
of
of
31,
Transfer
STOCK
dividend
a
Preferred
October
1942,
COMMON
of
declared
stockholders
to
business
14,
be'closed. >.
-
has
.share bn- the
burger & Hano, Keyser Building,
has been commissioned
U. 8. A.
_J18
Preference, stock
Donald J. Metcalf is
the
Jay S. Whipple, Bacon, Whipple
Nov.
as
C.
with Banks
Whipple t Fleek Of ISA
December
'•1JT, R. FAST, Secretary:
Y',> A-. ••
(j. g.) in. the U. S. Navy and is
reporting
for
active
duty
on
ations
E.
Street,
arrangements
share
per
Stock
this Company, payable
stockholders of record at
Lieutenant
2.
The firm of Hopkins,
Hughey & Co. will continue oper¬
the**
Berkeley Square, W. 1
throughout
.
Hopkins Hughey
and
in
•;
OFFICES:
Threadneedle
Agency
$7 Preferred Stock Dividend
At a meeting cf the Board of Director's of
United Gas Corporation he.d October 27. 1942,
partner
investor*,
to
Interested
■
47
LINE
of
1/1042.to
of
Division.in
First
service
banking
comp'let#
most
the
offers
travellers
and
traders
"
the
refrigerators, our radios,
bicycles, our baby carriages,
tnoWers, our plumbing
the
the AEF in World War I.
became
our
been
November
tains
standpoint,
obliged
automobiles,
efficient
it
New York, October 28. 1942.
A-dividend
for¬
in
the best
we are now
and
26 Broadway
■
par-value)
in
London,
COMPANY
.'A
merly in the investment business
not" and
insurance
which
PIPE
With over
of Australia,
States
and
'
Dagrenais,
all
in
Zealand, Fiji, Papua and New Guinea,
29
NORTHERN
: St.
Joseph: H.
branches
New
LONDON
■
^
the oldest
bank in Australasia.
and largest
870
countries.
has
Dale
George Street, 5YDNEY
Office;
1
J. R. PAST, Secretary.
.
Salt
in
City> Utah, 140 East South
Temple Street.;
-■,-y. •! V;.' -v
so
interest of all concerned.
F. J. MORRISSEY & CO.
stationed
present
Lake
foreign to the
practices of free
are
Americans.
and
.
V
Manager
The Bank of New South Wales Is
York, October 24, 1942.
Company, payable December 15. 1942 to stock¬
holders of record at the close bf business No¬
vember, 20, 1942.
on
,
had for love
at
considerable
contemplating
creasingly conscious
suit of
New
partner/, in
a
Head
t
f-
Broadway
26
j.A'dividend of One ($1.00) Dollar per share
has been declared on the Capital Stock of this
of A.
such a course.
Automobile acci¬ Huyck & Co., 100 West Monroe
dents are also beginning to drop- St., Chicago, 111., is on leave of
absence
from
his
firm, having
precipitately due to the lower
been commissioned a Captain, in
speeds required and the more
the Transportation Corps. Captain
careful
service
and
attention
which the family jalopy is begin¬ Gartley served as an infantry of¬
to
pause
and
or
Beck,
DAVIDSON, K.B.E.,
General
COMPANY
Refsnes, Ely, Beck & Co., Phoenix?
Ariz., is now; serving as First
Lieutenant in the Air Corps, and
come
other
should
D.
ALFRED
V
>
30th ——^£150,939,354
Assets
1941
PIPE LINE
>
In The Armed Forces
Paul
:
8,780,000
£23,710,000
?
;
of Prop.
O'CONNOR
Secretary
the Millenium may not be as far
imagine.
Liability
SIR
...
6,150,000
Fund
Sept.,
>"'■
£8,780,000 '
Capital
Reserve
Aggregate
threaten to engulf us,
off as most people
w M
THE BUCKEYE
'
1817)
t ESTABLISHED
Paid-Up
Checks will
October 26,1942
•v
fraud.
liberate
Wearing things out quickly.
In
words, the more rapidly we
through our old automobile
now
-
■
4
NEW SOUTH WALES:
stock¬
to
Reserve
been
in the fight against deteri¬
oration, both of men and ma¬
chines, and in the greater effi¬
ciency of each.
Perhaps, despite*
the turbulent land destructive seas
either through carelessness or de¬
cherishing
be mailed, i
made
is
The records of the insurance in¬
have
November 20, 1942.
ness
.
BANK OF
holders of record at the close of busi¬
nutritionv
sanitation and malignant diseases,
strides
share
per
payable December 15, 1942,
regarding
Tremendous
cents
dividend of
was
declared
a
the Common Stock of the Company,
on
However,
knowledge,
may
.you
fifteen
simplest fun¬
our educa¬
proceeding apace. We are
increasing
our
"store
Of
daily
.
.
realization of life's
damentals.
If the tires on
are
stolen or
collect
to
surance
a
Australia and New Zealand
meeting of the Board of Directors
a
held October 26, 1942,
danger to bring to human beings
hors de combat by cer¬
rendered
tain
protected
and
elementa
the
predatory hands.
yohr automobile
ance
any
been
and
tires
on
We
last1 longer.
mechanical things oiled
cleaned„ and
repaired;
we
must keep
satisfy most of their
to
Wants—from
safeguard what we
further and
go
that we
means
We must make everything
must
life
through
coast
to
This
At
i
DENVER, COLO—On Nov. 1st,
from
the firm
upon
request.'
Stock Exchange and other leading
national
new
will
Exchanges,
branch
office
in
Open
Denver
the Equitable Building with
liam P. Sargeant as
ager
C.
and
Production
'Mr.
were
a
in
Wil¬
Office Man¬
Emmetr
Wilson
as
formerly
and
Herbert Hipkins of Goodbody 8c
Co.,
Mr.
partners
Wilson
in
Sar¬
115
from
a
dissolved
ronto.
Oct.
31st.
has
trip to
spondents
of
New
York
Exchange and other leading
Exchanges,
geant, Malo & Co., which is being
as
Broadway,
City, members of the New York
Stock
Manager.
Sargeailt
Hipkins Back From Trip I
in
just
the
returned
firm's
Montreal
corre¬
and
To¬
THE COMMERCIAL
.Volume X56.. Number 4120
A PLAN TO BUILD UP YOUR BUSINESS
.'■■.■vfr'.V', ■: v-:\v
PART II
•"
(;
take " that position as a result of
practical experience and PUtpf ,a
knowledge of conditions as they
truly ..exist.
"The Commission has been
reg¬
ularly informed of our actions but
/
it would"
There
are
as
many
seem
appropriate to
151$
Prospectus
AMERICAN
on
request
re?-
View again the nature and extent,
■
•tbpinion with permit.
4 FINANCIAL CHRONICLE
tp analyze securities as differences. of pf .them
ways
as .they bear upon the,
subj e.ct of fhis, proposed Rule.
• i
It .seems as iif every statistician has his -owp
Since we are no exception to .this rule .all we fan say, ;l;.f<T.his rAssociation was a little
! is—if you desire to specialize in ''sleepers" and "special situations" more; than a year old when, in
f
then the first thmg you must do in prdey tp J?e success/pl J? j,p.;,.hayh; April, -194lv it undertook an
inT
! some workable method by which you are enabled to select the wheat, tensivei program of examination
,j pet methods.
[from the -chaff, If you want to hulld up a .business of this character,^
jit is absolutely essential that you offer the right merchandise,< OtheiV
; wise yo,ur .entire .sales campaign will be a failure and the results will;
will,";
1
which is the desired objective of such a campaign, -the wrong kind
vpf situations will bring losses to your .customers .and you know what;
that means.- So, the first ;step is definitely, "pick, 'em right."
" '••'/, j
J.,'.."
Here is a list of some of the most likely places tp find the "bar7;
-gains" both in the over-the-counter and other markets:
;
'.
be unfavorable to
.
Feast
marked degrep., Instead of creating "good
a
famine industries, such
or
as
Sugar]
the recent .examples !of
companies, 'textiles,, steels, machine took,companies.
t
;2. Industries that show definite signs of .coming out of the prolonged
"dog-house" class into better day s. Recent examples, fraction com;
;
of
all
members
and
:.
.enforcement of its Rules of Fair
Practice.
; ?:■;
-/ • -f'. 'yj-;;
"This
.
for two reasons:
it
was
-:
CHICAGO
necessary
in
a
pro-»-
ascertain the nature of the Asso-cintiori's '.problems.;: in. the second;
place, it:was helleyed at the time]
that
such
sary
to .carry out the concept of ;
a
program
was
neces-i
an:
was; rates
"In a period of 17 months well;
This is one of the most prolific opportunities for profit makingifj
you can put the pieces together at the right time.
^
> i
oyer- 2,500- members Of the Asso-i
,5. Preferred stocks With .accumulations; also included in this group orej ciation have been examined at
I
Income Bonds with cumulative features^ Catch one .of these ot low; least- once -in
respect to financial ;
I
depressed figures, get a company .that is coming out of the famine 1 condition and business practices.
stage into.prosperity,,add three or four years of accumulations of! The Association's staff has em¬
--
.
,
.
,
;
bad dividends, time it right, sell it to your customers,; buy, some] ployed several means in conduct¬
yourself, sell it out at a good profit, do this several iimes a year—:j ing these -examinations.
Utopia.
k!'';.v-; ■■
J;::
va-k'-a-".The Association's staff has per-.
Securities of companies in new industries rapidly/coming into]
serially examined' over .500 mem-:
prominence. Remember the "Tommy -Gun," "Dacca records," • Wita-j ber
firms. In addition, approxirains." Here again, timing, Js: the impo^faid, element if yo%^yant|
rhat'ely ] 300 member firms have f
to win unusual speculative rewards.
been examined by Certified Pub¬
.
I
5.
»
j
]
Next week
we
will present part three of this "plan for
building,
lic Accountants trained in respect;
to
mean
Investment Company Briefs
a
of
means
1942
a
table
income
tax
individual Ameri-
the .current issue pf "JCeyr
notes", quotes the statement .of
Treasury
Department's
General
.Counsel, Randolph Paul, that "No
caps,
financial
legerdemain,
panaceas,
protect
no
the
no
tax
verbal evasions can
whole fixed income
group from a larger-than-propor-
tipnate dirriinution of their standr
ajd of living."
To this
categorical statement,
"Keynotes" adds the reasonable
prices will be seen before any susr
tained upward movement occurs."
The main body of the service is
devoted to
I
an
analysis of the
Failure to ,act will result in a
possible •serious shrinkage in net
SERIES
NEW YORK STOCKS, INC.
SERIES
:?o.
PROSPECTUS ON
REQUfST
COMPANY
LONG and
HUGH W.
:!
income after taxes."
■
■,
INC ptPOl AT.IO
15 EXCHANGE PLACE
634 SO. SPRING ST.,
IOS ANGELES
JERSEY CITY
"T.be
features
of
new
MAJOR !
INDUSTRY!
OF
advice that "Investors should plan
now
to increase income where
there is -sound opportunity to do
business" in special situations. An outline of the method we| to broker age accounting and bro¬
.companies and the
have used in jpaking an appraisal of the pivotal points regarding
kerage practices. Since it was
up
LOS ANGELES
order to
'self-regulation'
3. Groups of securities that have; been oversold. The:public utility*
preferred? on several occasions an the past five years have offered; only an. attempt; today we believei
;
exceptional prof it-making opportunities. There are .others of like fhe .pcpncept^", of self-regulation^
performance that periodically come along. .
i .origipally - held by the. Gongress,i
4. Bonds with indenture provisions that careful .analysis will indicate] ..the business and the Commission
has justified itself.'
1
may be bought in by.the company through open market purchase.]
j
JERSEY CITY
was
believed that such
was
gram
■
instituted
in the first place,
program
At that time
'
INCOBPORATED
63 Wall Street, New' York,-,t';
industry .attempting, with gov-1
panies, railroads, heavy machinery companies (steamshovel manu-r ernmental cooperation, to put and]
Showing by
facturers .outstanding example of this group), building contractors,. to. keep dts .house in order. The;
word 'attempt' is used .advisedly.; just what the
;
:
Lord, Abbett & Co.
aggressive:
investment
way in which
lead,ing uiiits in the industry have
corporate tax provisions; It is a
been able to" adapt themselves in
It has the advantages©! brevity, the elimination of much excess paper j
good job of condensing the 600amining the .entire membership this country to the
extraordinary odd
work and is particularly well suited to the needs of a smaller organi-i before' the end of the last fiscal
pages of the tax bill into
•conditions of recent -years serve to
zation that does not boast the resources of a large statistical depart-] year on Sept.
.30, 1942, it was de¬ .explain why public interest in summary form. Here are the gen¬
eral conclusions:
ment.1 We will also suggest> a plan that has been successful fn de-* cided to examine the
remaining them at this time is greater than
•"•With the corporate •provisions
tenmning.' the trends of marLet Action in .the over-1JaenCpmtcr .,inM- members of the Association by for several
years past.
Investors
kets. This is helpful in the proper ."timing" of . situations.: In our
of the 1942 tax bill already largely
questionnaire. The questionnaire who
are
genuinely
concerned
discounted in both reported earn¬
opinion, timing is just as important as correct statistical diagnosis, employed consisted of two parts, about the
problems of protecting
if you want to make profits out of "situations."
the' first; covering financial 'con¬
capital and obtaining an adequate ings ;and stock prices, its actual
ditions; the second dealing with* income return in the days ahead passageintplawrepresentsjio.un-^
favorable market factor.
On the
business practices in general, inshould find such companies par¬
eluding^ questions which ; would ticularly worthy of consideration contrary, the -removal of uncer¬
tainties which persisted as long as
disclose
whether
the
member
today—and the volume of
individual situations from a statistical standpoint will. be.
presented;]
our;
cTesire to complete this job of ex¬
Report Opposing
NASD Exec. Gommiifee Submits
pur¬
SEC Bid Asked Disclosure Rule To Gommission
■
broker - dealer
understood
and
properly disclosed to his customer
the National Association of Securi¬ the .capacity in which he was
of the Board of Governors of the As-, acting; whether the member ,un^
memorandum to .the Securities and Ex-, derstood ..and complied with goy-
The Executive Committee of
ties Dealers, Inc., in the name
addressed a
sociation has
change Commission opposing -the proposed regulation which would ern.meipitai ' rules and regulations
compel over-ther.counter dealers <to disclose marked bid and asked; concerning the keeping. of books
and records, the hypothecation of
prices to customers in each transaction (Rule Xrl5CfrlQ).?
In
letter
a
to
and
Exchange Commission, the Com¬
mittee declared:
views
"The
.
.
forth
set
the
in
memorandum are those of a sub¬
stantial majority of the members
the Association .and,
of
so
know, are unopposed
element of the business.
we
"The
Customers'
securities,
and
etc.;
They now see, in spite whether, the member - was com¬
of the convincing results attained, plying:; with the Rules
of Fair
that these efforts, if the proposed; Practice pf the Association.
The
rule is adopted, will have .been final -phase of this second part of
the
in vain.
questionnaire included .dis¬
"If this, or any similar • rule, closures in respect to sales and
were adopted ft would .obviate the„ profit policies.
;
Ganson Purcell,<»
of .the. Securities
Chairman
far
as
business.
-
.
by any need for that part ,of the work of
the
ultimate objective of the
proposed Rule, we presume, is to
secure
universal
conformance
with standards of practice -ob¬
served by the great majority in
the over-the-counter business.. We
wholeheartedly subscribe to this
objective, but we are convinced
that neither the Immediate nor
the ultimate objective sought by
sented. the
greatest
of
part
tp the industry and
investing ■public. Therefore,
question
of
fair
our
profit
policies and the sale of securities
at prices not reasonably related .to
the:
the; been but .one phase .of the business
industry would not support and; practices which the Association
could not
an
be
expected to support has carefully examined. '
whose remaining •
"What
Association
field
service,
of
•limited."
The text
submitted
.
■
.
of
to
5
;'
would
-
-
be
;
are
of
taking .-advantage of this .type
program.".— From
investment
the
Oct.
22 issue of
Calvin Bul¬
in process, and the
justified feeling
that
most of the worst of corporate
taxes is now seen, can be con¬
sidered
as
essentially favorable
the
bill was
.probably
influences
fending to clarify the
securities market situation."
lock's "Bulletin."
"Wartime
Investment
Policies
prices, as given in .of .Colleges and Universities" is
the title ,of the current issue of
the Get. 2.2 issue of National Se¬
curities &' Research Corporation's "Brevits." The bulletin quotes at
"Investment Timing"-service, con¬ length from an article by J. Har¬
cludes as follows:
"The market vey Cain of the American Council
continues to give indications .of on Education Studies. Here is one
The forecast of the intermediate
trend of stock
We must, therefore,
position that lower
toppiness.
significant excerpt:
k
(Continued on page 1539)
the market for such -securities has
Association which has repre¬
service
"•The
chases of Dividend Shares, to ,pite
an
example, indicate that an in¬
creasing number of -such investors
so.
;
the memorandum
the ,SEC' detailing
" v">
have .been the results pi
this examination program? In the;
hold
to
the
INVESTORS MUTUAL, INC.
first place, the
Association, acting
through its District eBusiness. Con¬
duct
Committees, has taken dis¬
ciplinary action "against firms in
;be-> attained
the
opposition of the - dealers to
with this Rule. Our experience of
the
proposed regulation follows:
those
instances in
which
their
our
opinion ^his'^proposed .sales; and profit policies appeared
Commission
the
can
the last two years in self-regula¬
tion
fortifies
our
belief that the
c
"In
Rule
unworkable
is
and .imprac-
to!^ he inconsistent with good: busi¬
busi¬ iicable but it |s not pur -purpose' ness ethics. * This action has. taken
to discuss technical and .mechani¬
ness can be placed on a high pro¬
several forms. Business Conduct
fessional level without imposing cal details in this -memorandum.. .Committees have expelled mem¬
No.rrJEo.r the purpose of this mem-; bers from,
upon
that business^ further. re¬
membership, in the
strictive rules aiid regulations and prandum, do we intend fo exam*- Association. They have suspended
that adoption of such further rules ine its legal authority in the light; members according as the facts
and regulations may, indeed., seri¬ of the intent of Congress and the,, and .circumstances warranted. In
ously interfere with the process provisions of the statute. We fake many' instances, members have
issue with the proposal on more;
of self-regulation.
been
fined.
District
Business
grounds and deny Conduct/Committees have on oc¬
"The securities business has not fundamental
that there is any necessity for
just given lip-service to the idea
casions been able to effect sub¬
standards
of
the securities
of
self-regulation represented by
this Association. On the contrary,
those
who
have
sponsored
and
supported this idea have invested
liberally of their time and money
to
make
it
a
vital
force
in
such
rule.
a
AN
•
OPEN
Prospectus
defend
any
the
request from Principal Underwriter
EST.
INVESTORS
stantial restitution to customers.
not be¬ In addition to the foregoing, the
sentimental urge to Association, through its Business
SYNDICATE
1894
MINNEAPOLIS, MINNESOTA
.
of
on
INVESTMENT COMPANY
v
"We take that position
cause.
END
securities
business
against renewed public indictment
the of its treatment of investors. We
Conduct Committees, has, as a
su-lt of -the examination and
(Continued
on page
re-
study
1.5,3.3)
OFFICES
IN
THE
PRINCIPAL
CITIES
OF
THE
UNITED
STATES
THE COMMERCIAL & FINANCIAL CHRONICLE
1520
Thursday, October 29, 1942
FLORIDA
V1RCINIA
FLORIDA
VIRGINIA-WEST VIRGINIA
MUNICIPAL BONDS
NORTH and SOUTH
Wire Bids
I
CANADIAN
Our long
da
gives
municipal, bonds.
to
answer
them at
1
glad
be
We will
inquiry
any
regardirtg
F.W.
39 South La Salle Street
Corporation Bonds
CRAIGIE&CO.
Bell System Teletype;
1ST NAT
wise
municipalities
serving
tended
Rector 2-1545
rule
that
to
tions
od
Committee
The
further
application
the
municipal
would
be
in
the
of
Bell System Teletype—NY 1-69
its
in
gress
Securities
of
enactment
Exchange
originally written and
Turning
•,
to
the
and
State
ties
without
of
The
tax
of
consent
phases
all
of the district.
themselves
express
become callable next July
Woodhull said the entire
Mr.
$3,664,500 would be redeemed on
July 1, according to present plans
of
These
redemptions
of the district.
of
Board
statement
Trustees
the
of
disbursements
Chicago Sanitary District, Illinois,
will meet today
(Thursday) to
authorize the sale of
the
issue of
an
indebtedness
issue
of
the
"Chronicle"
X-15C1-10, to include the munici¬
special section devoted
to the proceedings of the Invest¬
pal field within the realm of its
a
regulatory powers.
ment Bankers Association's recent
war
finance
conference
in
With reference to the SEC pro¬
briefly here
on
New
the contents
be
injurious
of Sept. 39.
vide
$114,314,890
needed to redeem outstanding ob¬
naturally, concerned the efforts of
means
the
the Federal administration to tax
municipal bonds and the attempt
of the Securities and Exchange
Commission, via its proposed rule
public
interest
as
and to
the
industry
Jan.
next
the
become
receipt of bids
money
■
Tentative
1.
is Nov. 23.
Federal. Govern¬
the
callable
date
for
the issue
on
■//',
the
a
our
outstanding bonds will become
very
municipals "reaches
foundation upon which
dual
form
of
based."
of the
is
government
callable
."v-'--,:'
Of
conclusion, the Committee
summed up its opinion on the
in these words:
tax matter
&s
gaged in purchasing and market¬
the first of the year.
from cash on hand.
"A
amount
optional
on
Jan. 1
are
character
bonds will be paid off from the
of
form of govern¬
drastic
so
a
$1,106,000
proceeds
~
of
$107,120,390
Sept. 30, 1941.
on
above
until
$98,000,000 next July 1. The
has
1955.
actual
no
1935, when it ac¬
complished
a
large
refunding
operation, the district had $140,000,000 In bonds outstanding, and
since that time it floated
000 in bonds to
ital.
provide
vv
•
model time; Other Octobers^
the automobile industry
and
which everyone—young and old, rich
was
Jreje
would be unveil¬
ing sparkling new Values in a strictly American
custom
It
,
,
from the
sale
of the
aipbition fmd free.opportunides^free^ways
(Continued
was
poor—enjoyed.
The well known, serious fact
was
that, each
the automobile industry spurred by a
vigorous spirit of free competition and "divine
discontent" would offer the public new and
better value—lower prices—often both.
proving Themselves.
.
a
kind of progress report to
by the automobile
company.
on page
1
,
year,
The
public not only gained by getting more
public took a
friendly interest in the mystery, excitement
for their dollars, but also the
and revelations of
icans
are
car
new
model time. All Amer¬
fanciers;
only the elite of
Europeans have been.
In the
spirit of wholehearted patriotism, the
people of America ha ve given up, among other
things, the annual pleasure of buying a new car.
The need for and the value of devoting automo¬
bile factories, personnel and management abili¬
ties to the production of war materials is selfevident/Automotive engineering and produc¬
tion talents are repeating their peace-time
achievements with better products, lower costs
—frequently both—for .America's'Victory effort.
These great institutions—which are nowdoing
much,
well and
expeditiously—were
a
special pride of America in the peace years
and are even more so today. They were big,
successful and progressive before the war be*
cause American people enjoyed the custom of
buying a new model car every year. Not every¬
body did buy one—hut nearly everybody
so
At
a
new
company
so
such
as
Chrysler Corporation
merited continued confidence and
was
nounce
have
no
new
entitled
models to
well.
are
not
numerous.
More
than 70 per cent of all their service orders
are fdr lubrication, minor
adjustments, small
replacements and body repairs. The quality
tant
today.
,
;;Vfy, ,;y•
•>>;'j; ; J:; '"''J
The anxieties of the nation
duction of
war
tain items of
■.
.
our
are
so imporJ.-z-V'
divided
chiefly
troops and the pro¬
materials in the factories. Cer¬
equipment are scarce; tre¬
energies are being applied to getting
them produced. Impressive results in produc¬
tion are being accomplished and, we are con-*
fident, will be.
'.-;rJV './
war
mendous
models in people's hands. Plym¬
Major repairs
/.
between the activities of
an¬
outh, Dodge, I)e Soto and Chrysler dealers
report that the old ones are standing up very
>
'
this year, we have good news to tell
'
The American way
will win! The American
is to apply the superior courage, honesty
and intelligence of free men to a task and (jet
it done—better than Was thought possible!
way
otiWyv,
The Factories Serve
The Dealers Serve
with War Materials
with Transportation
Production
Maintenance
%♦ cgfi
wanted to.
:
get the sales and profits needed by the
organization to keep on progressing.
we
*
■
and truck conservation that is
car
to
Although
■
These dealers have the "know how" for the
model time, the public would decide if
about past
Symbolic of America
so
Report of Progress
'•
A
Plymouth,' Dodge, I)e Soto and Chrysler
dealers are playing an important part in car
conservation. They have the experience, spe¬
cial equipment and replacement parts for this
transportation maintenance work.
the public
^
Divisions
of CHRYSLER
TIT
>
Administration officials of the
State of Iowa have predicted that
.and long life engineered into these cars are
of Jiving—thatwe are all fighting to preserve.
Other years at new model time the new car
\
Primary Road, Maturities
refunding issue.
symbolic of the American pattern of
$10,000,new cap¬
■
.
Iowa To Redeem 1943
*/.
was new
maturities
In
'-ic
T1IS
as
This compared with
Of the total
proposed should not be at¬
our
tempted by any other means
than a constitutional
amend¬
ing municipal securities and other¬
on
this
of 4Ms of 1955 and
$1,394,000 of 4s of 1955. These
change in
en¬
said
amount, the district Is
planning to pay off $4,125,000
In
a
of Trustees,
Board
total,of $10,039,500 of present
and
third
the
Net redemptions planned to be
effected by the district will cut
total
indebtedness
to
slightly
district
Ross A. Woodhull, President
tax
to
ment
whole,
which
ligations
of
It added that the attempt
both
of the report.
The Committee's primary topics,
the
portion
a
ment."
large and
small investors, to the States and
their governmental units, which
to
for
enue
posal, the Committee pointed out
York City. Included in the mate¬ that the rule, as applied to mu¬
rial published is the full text of nicipals, could not be effectively
the report ol the Association's or efficiently complied with and
Municipal Securities Committee; that it would be impractical and
For this reason, we shall touch unworkable; and (2) that it would
hut
$2,500,000 refunding bonds to pro¬
the guise of a war
disclosed that under¬
lying this effort "are reaches far
beyond limiting the levy solely
to the income from future issues,"
and went "far beyond raising rev¬
for
quarter of the year showed that
the district had total
bonded
States under
This
cut
The Treasurer's
cash receipts
on
necessity,
contains
will
ily decreasing total bonded debt
Chicago Sanitary District
municipal securi¬
the
to
1.
Plans Refunding Sale
immunity, the Committee said that
the renewed effort this year to
tax
bonds
give
another big slice from the stead¬
j
matter
and
as
subse¬
as
quently amended.
people of
concerning it.
the
Law,
These redemptions
will leave
$3,414,500 of bonds optional Jan. 1
unpaid. Ah additional $250,000 in
change, as well as the op¬
portunity to
the intent and purpose of Con¬
the
effect
the
consideration
the
to
,l
country the opportunity to
measure
transac¬
violation
afford
would
our
con¬
'Tele. CG 540
Randolph 3900
KII 83 & 84
The constitutional meth¬
ment.
investors.
F. B. ASIIPLANT & CO.
Tel:
Telephone 3-913?
and
CHICAGO
VIRGINIA
RICHMOND,
RJECrummer
Company
•AN*»LDC\J§^_^<VtH,CAOO ILLINOIS
Two Wall Street
and School Bonds
MUNICIPAL BONDS
obligation.
no
Municipal, County
comprehensive
a
of familiarity with these
background
Goveriiincnt, Municipal and
us
Company
CAROLINA
experience in handling Flori¬
issues
(Cluumcv .S'ccuvitics
on
CORPORATION
1541)
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4120
156
—1521
CONFERENCE
Studies War And Post-War Problems
31st Annual Meeting
national
association.
We
know
long experience of the note¬
worthy achievements which the
Fleek Declares Investment Business Paramount
the
Nation; Urges Simplifying SEC Procedure
To
not
(Continued from first page)
essential services
but for its vital
post-war period of
for
only
during the
States
United
the
to
can
we
war,
the
Treasury in its war financing.
role
is
altogether appropriate to
Association year with a
War Finance Conference; for the
world rehabilitation and the con¬
our
version of industry
"It
close
determined
was
unanimous
vote
by
Dec.
on
Part
"It is
your
purpose
our
just prior to the time your present
officers
were
inaugurated.
The
resolution which you passed reads
to
1. That
again pledge to
our
Government the allegiance
and
full
support of the Invest¬
Association
Bankers
ment
of
That
defense bonds
tant
fense
3. That
as
sale
of
national
offer
facilities
freely
whole¬
and
heartedly to the United States
in its campaign
bonds, and also
Treasury
element
one
no
for
can
business
as
This
whole.
a
to
in
activity
other
any
manner
can
whenever
and
wherever
of
we
serve.
"On that date this act was very
significant in showing the
tional point of view and the
triotism of the people in the
vestment banking business;
"We
of
national
associations have had many meet¬
of the other.
$175,000
37,000
all.
on
is
days later, on Dec. 7, your man¬
started
conferences
our
and
Treasury
in January we
such
have demonstrated
a
with
the
conferences
high spirit of
date, already a matter of record,
immediately took first place in
cooperation without a trace of
competition for publicity and flag
governing the subsequent activi¬ .waving.: It is natural and proper
ties" of our Association.
that these frequent meetings to
"This has
for all
of
been
us.
a
difficult year
War is
a
devastat¬
ing calamity at best; and for in¬
vestment banking it brings dras¬
tic
>
displacements
ments.
For these
and
reasons
curtail¬
you
united industry
for war financing should result
in a better understanding of our
willingly volunteering to take
ordinary business
to sell Government securities.
organize
help
several
tions
Emil
for
tired
as
patriotic duty to keep our organi¬
zations
going—despite
all
dis¬
couragements and interruptions.
This requires consummate resolu¬
tion
of
prob¬
lems and seeks to aid the industry
in
meeting them and attempting to
find
;
their
solution.
"Investment banking is an in¬
dispensable function in our na¬
tional economy arid its efficient
machinery needs to be maintained
attitude
in
President
and
the
work
of
to
definitions,
ment dealers in many
of
invest¬
States, and
eliminating much wasteful dupli-
com¬
(Continued
several
1532)
on page
trend
to
23,000
30,000
the
the
limited
the
to
served
in
red
1962-63
2s
1966
1.85
2s
1972
@ 100
of
and
to
2.20s
1954
1.70
New Orleans, La.i.
2%s
1960-61
1.90
New York City__i_
2%s
1969-71
1.95
2s
1961
2s
1953
1.40
2s
1956
1.50
1.80s
1964-66
1.75
1
%s
lVz*
1952-53
1.45-1.50
1956-57
1.60
4l/zs
1946-47
.90-1.00
2%s
1948-51
1.10-1.25
15,000
Quincy, III.
16,000
Quincy, 111.
36,000
the
Reading, Pa.
j__
Reading, Pa.
120,000
____
1.65
.-a
Reading, Pa.
175,000 Reading, Pa. _i_»_
10,000 Twin Falls, Idaho_
1.70s
1967-72
1973-79
It
1.80-1.85
1%«
1955-58
Yonkers, N. Y.^.^-
2.10s
1978
____
10,000
All
of
the
bonds
maturity.
We
maintain
listed
above
trading
callable.
markets
in
1.60-1.65
2.00
Yields figured
dates furnished upon
Call prices and
active
are
;
to
request?
Housing
all issues of
Authority bonds and invite your inquiries.
j
re¬
Phelps, Fenn <& Co.
it.
.39
privilege of
October
New York.
Broadway
29,
1942.
:
:
■ ■ ■■
working with them and with their
the
Burns,
Jr.,
Stock
officers
the
who
has
just
re¬
iiiyyyp ■■■'■
t'^-VV';'C';.
Exchange
and
Firms;
executive
f
:
■'
p
.V-
:'7 7 :7:o.7:-Cv-V"' 7 '
;'77'" '
'
com¬
mittee of the National Association
of
Securities
Dealers
—
Messrs.
IjIIIISIATEIIIII;
Dewar, Baird, Fulton, and the
others, and to D. Rich of the Gov¬
ernment Securities Group.
"We have explored many ways
and means by which we could bet¬
ter
serve
f-
each other, as well as the
investing public, and American
industry as a whole. There is no
point in striving in
Established 1812
a narrow sense
■/
V V
:.
•
••;v 7
;•
•;: * ;*
j;-.-**.
*'
•
r■ •?
-•
;«vVA:*
|
and
MUNICIPAL
•
v..
IBA PAST PRESIDENTS
1939-40-41
MEMBER
INSURANCE
CORPORATION
*
'■.
: ■■
j
j
.
Municipal Bond Department,
Head
55
Wall Street
•
•.
S.
Fleek
E.
F.
Connely
Jean
C. Witter
TTT
"
•
•
•
■
The National City Bank
Office:
New York City
m
1
BONDS
1938-39
'■
John
v "
President of the Associa¬
'•
1941-42
$
1.70-1.75
1.80s
100,000
Commissioners, for 30 years we of
the IBA have had the
1.90
New Orleans, La.^.
Philadelphia, Pa.—.
25,000 Pittsburgh, Pa.
40,000 Pittsburgh, Pa-U-125,000 Pittsburgh, Pa.s___
Securities
State
1.25-1.35
1964-67
25,000
expended
burdens
1949-51
100,000
available
now
1.90s
2%s
20,000
has
war
Los Angeles, Cal._
Louisville, Ky.__»_
20,000
the
duty
98%
@
40,000
sale
With
strictions should be placed upon
the
2s
100,000
and
additional
1.85
1.75
Houston, Tex
1.05-1.15
confusing com¬
plexities of rules and regulations.
The preservation of this business,
as
a vigorous and going concern,
is of real national importance; and
no
1.40-1.55
1973-74
1983
be needlessly
tape
1953-57
1.90s
Fresno, Cal.
Hartford, Conn
1947-48
business, needs to be con¬
for the serious job of in¬
not
.90-1.35
2s
dividual and national survival.
must
1946-52
2s
hours
personnel
%s
iy2s
Houston, Tex._„__
the
working
1
16,000 Los Angeles, Cal._
all parties, i. e., both regu¬
lators and the regulated, realize
that
39
1977
11,000
their
investors,
protect
1.75
@
2s
Houston, Tex.
Houston, Tex
further > the
of
1962-63
;
1.85-1.90
25,000
bonds!
realization
full
1959-61
2s
.90
.70-
1944-45
2l/4s
25,000
do its ordinary
business, now greatly restricted,
and simultaneously to give freely
to
2%s
and
to
time
1.70-1.80
55,000
lic, at this time, of all. times, when
an already overburdened industry
struggling
1965-69
is most im¬
This
regulated.
1.70
1.90s
25,000
25,000
pro¬
the regulators
between
1951-55
1963-64
Ga
_
35,000
of the conference table in discus¬
sions
1.30-1.50%
1.80s
2s
Buffalo, N. Y.
Camden, N.
Charleston, S. C._
Dallas, Tex.
Dallas, Tex.
Fresno, Cal.
21,000
objective methods
mote the more
"As; for
my
the
forms
these
particularly
refer
I
Schram,
F.
is mindful of the continuing
to
simplifying
New York Stock Exchange; James
discussions, I wish to empha¬
size the point that it is also our
The IBA
more
a
credit
give
their
matters.
tion and resourcefulness.
to
colleagues in these other Associa¬
time from your
busi¬
and
problems
wish
"I
so
ness
a
united effort in solving them.
are
all the more to be commended for
"But with reference to our
express
made
Beginning
cellaneous
to
en¬
Buffalo, N. Y
18,000
distinct
a
its
IBA.)
in
Atlanta,
200,000
■'
;v..
.
"Furthermore, I wish to
Government
pa¬
growth
What is harmful to one
eventually has a deleterious effect
of
NASD, NYSE, ASEF, the Govern¬
ment
Securities Group- and the
in
uniformity in registra¬
statements, regulations, mis¬
Housing Authority Bonds
expense
be strong.
of
to which I refer are
only
more
tion
legitimate business in the
All elements should
ings in Washington and elsewhere
to promote the sale of Govern¬
ment bonds. (The principal organ¬
izations of this industry of na¬
scope
ing
or
s
financing.
the principal
na¬
in¬
two
munity
portant in its benefit to the pub¬
war
not
financing of industrial and
segment
or
long profit at the
tional
these
sell
association,
aid in
services and
our
courage
segment of the business. The lead¬
ing men in this industry know
movement, in my opinion, has
been greatly accelerated by the
efforts of the entire industry to
de¬
effort; and
we
the welfare of all and survival of
the
most impor¬
a
the
of
part
the
of
success
separate
one
or
there
have shown as never before
willingness of work together for
accomplished
interest,
great
years
vantage for one group of officials
ing of corporate and municipal is¬
a
vitally concerned
are
we
the
in
or
ad¬
or
public
protect investors but also to
appreciation of the greater spirit
of cooperation on thej part of the
regulatory bodies, both State and
Federal. Evidence is growing that
sues,
America.
2.
aggrandizement
viz., the exchanges, the over-thecounter business, the underwrit¬
national
of
time
this
in
emergency, we
attention: and I believe that
our
despite certain appearances to the
contrary, the several elements in
the so-called securities industry,
follows:
as
personal
attempting to grasp credit
that
I
truism that in unity of
a
and cooperative effort lie
strength and our salvation.
The war has brought this forcibly
1S41,
5,
to peace-time
production.
this administra¬
over-all policy of
tion
in
for
have
the
strides have been made in bring¬
State Commissioners and their As¬
sociation
Over
States.
from
•
1
of New York
:
Thursday, October 29, 1942
COMMERCIAL & FINANCIAL CHRONICLE
THE
INVESTMENT BANKERS ASSOCIATION
AMERICA
OF
PRESENT
OFFICERS 1942-1943
PRESIDENT
Vice-President
Vice-President
Albert
Jay N. Whipple
Arthur C. Allyn
Armitage
Exec.
Vice-President
Vice-President
Vice-President
T.
Sec.
&
Treas.
ALBERT
"V;; ii.
GORDON
Edw.
J. C. Folger
r.
Baker
Julien H. Collins
William
Fairman
R.
<
Rush
Dick
-.it*
'
Blanchett
J.
F.
Bayne
■
1 •1
•
'
*
.
S.
t
■
Dickson
.tr
c
f
Alden
Jr.
H.
Little
GOVERNORS
PRESENT
D.
Hopkinson,
John
E.
William
Blunt, 3rd
Henry
H.
Brand
L. S. Gilmour
Egly
i.ttt.in ih-fl't u
H.
J
Errol
E.
Buckner
Arnold Grunigen, Jr.
Hagood
Wm.
H.
Clarke
Y. Hackett
*
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4120
Volume 156
1523
000,000,000. According to figures
compiled by the National Indus¬
Government
war
dwarf the amounts raised
trial
Conference
finance
more
J.1. Whipple, New IBA President, Foresees
Great Period Of Post-War Expansion
our
than the combined expendi¬
Board,
that
is
tures for the five years from 1925
through 1929.
to
that
assume
It is probably fair
only a portion of
the
productive capacity resulting
from those expenditures will be
useful in peace time and that a
Whipple, partner • of the Chicago investment house of3^
——2
Bacon, Whipple & Co., upon being elected President of the Invest-j in a paper, 'Beyond All Present
ment Bankers Association of America at the closing session. of its j Vision'
(which was digested in
annual meeting in New York last week, said that he expected "the! the current issue of 'Investment
greatest period of expansion and progress the world has ever known" Banking'), points out spme inspirafter the war. For that expansion, he said, industry will need capital ing facts,| probabilities; and possi
bilities as to
in amounts that will dwarf previ-3>
•
future scientific and
"In view ofthe necessity of sur¬ technological developments of in¬
ous industrial financing just as the
viving so that we may be avail¬ dustry that we may have some
present war
Jay N.
country and its
financin g
able
dwarfs
millions of investors
r a
i
s e
other
'He
consider
for
d
the
briefly
"There
linve stment
bankers
the
to
the
for
they
have
war-born
work
The
and
been able to
developments
in industry to
ef-
,.
help-
in
Jay N" Whipple
ing the Treasury raise the billions
tot
needed
winning
the
war,
j
v
election,
was
in the nature
sales conference
national
of
a
war
on
bonds with Treasury officials and
the heads of the War Savings Staff
and
;
organiza¬
conditions/ and that you propose
to carry on.
It also suggests that
you see in. the period following
the war an opportunity limited
only by your capacity. V'yju'.
"Nevertheless,
The Association's annual meet¬
ing, which opened on Oct. 19 and
which closed with Mr. Whipple's
your
would
from
refuse
become
forces
of
one
no
to
join
you
2,000
the
ranks who have already
our
members
or
with
the
armed
if
war,
in
me
terms
the
of
participating in
of the
doctor
a
who
discussion
question of prenatal influ¬
at
ence
Medical
American
of
convention
.a
the
Association.
The majority, after citing a great
illustrating the point,
had agreed that the prenatal ex¬
periences of a mother had an im¬
portant effect on the expected
many
cases
child.
This
still
doctor
one
dis¬
agreed, however, and to prove his
point explained at great length
that three months
before he
was
born his mother had
stepped on a
phonograph needle which
had
gone so far into her foot the doc¬
tors were unable to remove
you know, a piece of
its way through the
may
come
my
it. As
metal works
tissues and
out almost
the body.
'Despite
of
abroad—will
in
not be
to
that
the
exceed anything
far
"Furthermore,
investment
bankers have played an important
large part will require additional
capital for conversion to the pro¬
part in the reconstruction periods
duction
country has been engaged. Trad¬
ing on the New York Stock Ex-
of
goods
for
the
deferred civilian demands.
"Just
as
huge
the amounts raised
private
IBA
profit
progress,
following
by
every war
(Continued
in which this
on page
1528)
PAST
PRESIDENTS
it
enter¬
1937-38
and private financing will
replaced, except in certain
1936-37
1935-36
necessary; circumstances, by public
ownership
and
fi¬
government
nancing.; As long as we have pri¬
vate ownership of business, it is
that
sale
of
this
a
ownership
sented
by
market
for these
tions
of
stocks.
our
as
pro¬
repre¬
Providing
and
business,
by bonds, is
portant
market be
as
a
the
obliga¬
represented
job, and
im¬
an
one.
"Some indication of the amount
of
capital that
be
may
necessary
industry I for peace
may be obtained from (he amount
being required to equip! it for war.
re-equip
to
"During 1941 alone, capital out¬
lays for
and
new manufacturing plants
equipment were nearly $6,-
F.
E.
Edward
Frothingham
B.
Orrin
Hall
G.
Wood
the
He went
any
on
place
to say,
this horrible experience
mother's,
there's
the matter with me.'
nothing
actions
State arid
SALMON
ability
definite
in
be able to
featists
rather
so
Let
progress.accuse
and
let
no
THE
reactionaries,
our
y
but
"First,
inevitable,
a
and
DEPARTMENT
Pine Street Corner of Nassau
;
.
and we can
victorious peace is
victorious peace
BANK
OF THE CITY OF NEW YORK
BOND
„
must
we
that
"
influence
in behalf of progress.
assume
NATIONAL
CHASE
one
of being de¬
us
exert
us
CHASE
that,
control
to
Municipal Bonds
Secretary ef tht Treasury -jSbl-lSbj
within our
them,
the
changes that do occur will result
our
P.
Bell System
Tel, HAnover 2-6000
f
\
Teletype NY
1-1010
secondly, that a
will guarantee a
providing for freedom of
enterprise. What are the implica¬
tions we are justified in drawing
from these two assumptions?
I
system
believe that the post-war era
be
the
sion
»
.
A
INSTITUTION
NATIONAL
FOR
SIXTY-THREE
YEARS
will
greatest period of expan¬
and
has
ever
ism
and
progress
that the world
Stocks
Our provincial¬
known.
isolationism
as
a
v
Bonds
-
Commodities
nation
and
as
the
Commission Orders Executed
past, and our viewpoint will
be
a
people will be a thing of
international.
Stine,
a
Dr.
Charles
Vice-President of duPont,
Unlisted Securities
Security Issues
Underwritten & Distributed
Bought, Sold & Quoted
Government, State and Municipal Bonds
Statistical Information
Underwriters and Distributors
Provided
of State,
on
Securities and Commodities
General Market, and Public Revenue
Paine, Webber. Jackson & Curtis
'
ESTABLISHED
MUNICIPAL BONDS
•
BOSTON
Akron
INGEN
municipal
First Trust Bldg.
Miami, Fla.
/
57 William
8c
CO.
INC.
New Haven
'•
•
;
1
V
1879
1
'•
•
i
•
.
*.
*s. ,> /-
Principal Stock and Commodity Exchanges -U
NEW YORK
•
Concord
Cleveland
Grand Rapids
B. J. VAN
.
.
Members
Hartford
Philadelphia
CHICAGO
Duluth
Springfield
Elmira
Minneapolis
Milwaukee
Lynn
Ffrovidence
t
Detroit
St. Paul
Worcester
Bonds
St,
New York
135 So. LaSalleSt.
Chicago, III.
BROKERS
is
previous experience.
our
opportunity for service prescribed
such a move.
.';V,
Victory
Fund
Committees
"Because we may find inspira¬
taking a leading part in discus-tion for the job we have under¬
sing means and methods of stimu¬
taken through the Victory Fund
lating the sale of Government se¬
curities.
In assuming office, Mr. committees, let's indulge oufselves
momentarily and look ahead to
Whipple said:
j
In doing this,
"If I talked about what is most the time of peace.
let's adopt a constructive • view¬
on my mind, I would continue the
discussions of yesterday's war fi¬ point—one that recognizes the ne¬
cessity of change—and at the same
nance conference, probably to the
time direct our thinking and later
point where you might think of
on
prise
because
essential
to
that the de¬
finance the
peace—both from this country and
•
was
it
reasonable to expect
mands for capital to
into work directly
gone
connected
the
of
so
vided to permit the purchase and
here today
far you
have
adjust
is
belief
my
necessary
are
so
is
take
meet current unfavorable
tions to
get inspiration
forts
that
indicates
technological
for greater
fact that you
"Moreover,
motive
hard
and
this business.
succeed in
to
didn't
it
initiative,
imagination,
scientific
;
when
time
a
time; when
of the 'fittest
more
that
been
in
a
was
never
financin g
.
of
inexorably.
.But,
matter, there never has
operated
part
problem
this
war,
this
part in financing.
in war, it is
of survival
law
look ahead to
will
our
survival, and what we may rea¬
sonably expect of the future.
wars.
told
serve
perhaps not inappropriate that we
mounts
a
to
other
any
finance
to
UNDERWRITERS
DISTRIBUTORS
*
COVERNORS (Continued)
PRESENT
John
Harrison
D.
Frederic
i
P.
Mullins
I.
A.
Long
Maynard H. Murch
Thursday, October 29, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
1524
John
S.
Stanley
Loomis
Augustus W. Phelps
Donald
G. McKie
I.
Pat
McLeod
Morris
James F. Quigg
William J. Price, 3rd
A. E. Ponting
G.
.
i
Robt.
I.
G.
Rowe
'
W.
O.
Skillman
F.
K.
Stephenson
R. McLean Stewart
Percy M. Stewart
■
Winthrop E. Sullivan
:
;
F. D.
FARRELL
•
GEORGE
:
E.
*
JONES
Joseph T. Walker, Jr.
flT. Johnson Ward
Philip K. Watson
Elmer
L.
Williams
R- M. Williams
H.
B.
Wyeth
Jr.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4120
156
1525
y>" -y,
The
Fund
Commercial Banks Essential To Wai Financing
activities of the
Victory
Committees, organized and
staffed
largely by the bankers and
investment- bankers
of
the
coun¬
road
one
that both the Ambassa¬
dor and I have travelled
together.:
We belong to that small company*
of
Government
officials
.who
try,? have been, of vital assistance
Declares Bell 01 Treasury At IBA. Conference
•
commercial banks in our fi¬
"of the place of the
Consideration
for
nancing program" was brought before the Investment Bankers' Asso¬
ciation of America, at its War Finance Conference in New York last
week by Under Secretary of the Treasury Daniel W. Bell, at which
incentive to
saving and put
said
Mr.
Bell,
"must form the
foundation
of
went
Mr.' Bell
tute the whole
the
contri¬
bution
taxes
make
can
the
Daniel
W.
In
advocating
tax
to
will agree that a frozen
banking system trying to become
running
to
'go
pro¬
A
said
around'
at
,
program
at
this
table
with Ambassador Grew, His
path
and mine may seem at first
sight
was
Embassies
serving today.
then Counsellor of
in
Berlin
the
in
Mr.
our
and
Vienna,
Department;
I was serving in the
Treasury De¬
partment. For each of us the ex¬
and later at the State
periences of that other
war
of 25
have provided a stand¬
ard of comparison for judging the
years ago
war
to lie far apart—his in
diplomacy,
mine in fiscal fields. Yet there is
effort of today.
financial problems
The
(Continued
on
page
of
the
1534)
'
might create a bad situation."
While stating that "we all real¬
ize that
a
great deal
remains
more
IBA PAST PRESIDENTS
to be done in
•
as
financing the deficit
far-as possible from outside the
commercial
that the
and
Grew
are
be
1934
1932-33
1931-32
banking system," Mr.
share of
a
un¬
.
banks preserve a
liquidity." - To help
we
so,
a
sold
3
Mr.
Bell's
have decided !delivered
to
banks
the
of maturities
range
from
served."
"
months,
of the
address
which
dinner
at .the
Conference, follows in full:
'Nearly
a
year
ago,
Mr.
you,
the :Fleek, and the heads of
financial associations of the
in
was
meeting
other
of Treasury bonds.
case
coun¬
.
"In addition to this
not
is
long-term
this
we
!, try came to us and offered the
large increase, 'services of their members to the
in bills, we have also revived the
Treasury. '.Since .then our work
use of another short-term security
together; has grown into a rela¬
in the
goods
Bell
by selling
Government securities
war
of Treasury bills, to 10 years,
case
—the
Mr.
unfrozen after the
a
conference
will
fact,
securities
"Spending
must be reduced
drastically if the
prospective supply of consumers'
posal,
do
should have
Secretary
spending
of
that
successful
the War. Suc¬
finance," he said, "re¬
quires fairly stable prices, and
wise policy will
help maintain
them."
the
them
to
war
Morgenthau's
I think
wnich
ever, that •we must resort to the
.commercial banks,- it , is impera-
tant;, that
/.•■-.■v'i;-'■ ■
cessful
have offered me'this chance to
say
so. I know that this also
expresses
part of it—in
Departments
Federal
Bell said that "to the extent, how¬
maximum
financing of
Bell
help generously and patriotically,
and I am glad, Mr.
Fleek, that you
least
at
same
precedented magnitude."
In part jtive-that Interest -rates be kept at
and
that
the
he- added:- "In the months—per¬ (prevailing .levels
maximum
of
liquidity be pre¬
haps years—to come, it is impor¬
consti¬
ever, -
.
to finance a large share of
upon
does not how¬
of
.
.
called
banks
the deficit—in
.alone
The
case.
You have given your
certainly
all of you
the
with
that- "we must recognize
e
'that '"revenue
raising
the
told
to say; commercial
on
month
.spending- tax.".■"T.y •.'
f i
war
nance;" h
last
would
with long-term issues.
upon
proposed
of
program
any
than
operations.
financing
the sentiments of Secretary Mor¬
be
f
the banks no favor if it genthau;
permitted them to load themselves ".;'T am especially glad to be on
spending—the very
thing that must be reduced? This
is
what
Secretary
Morgenthau
penalty
which
rates
—or
Government
our
doing
■
an
securities
interest
Government
pointed out that "we must not delude ourselves that the fi¬
nancing of a total war can be merely a money market operation."
"Total war" he declared; "requires -♦>
total effort and total sacrifice, and, present price level. What could be
.;
'
the financial more reasonable, therefore, than a
front
can
be progressive tax that would give
exception."
"Taxation,"
higher
2%; but this is not the
time he
no
longer-term
bear
served during the first World War
in
certificate
of
indebtedness;
"It may seem at times
are
the
that banks
being discriminated against in
being
permitted
tionship which has become genu¬
inely important in the financing
of this
'."i.
war.
G.
.
W.
Frank
Bovenizer
M.
Allan
Gordon
M.
Pope
to subscribe
Gold man, Sachs & Co.
Complete Service
30 Pine
Street, New York
Investment Securities
U. S. Governments
-
•
States &
Municipals
Commercial
Railroads
Public Utilities
Paper
Commercial & Travelers Letters of Credit
Industrials
Foreign Exchange
orfy;--
208 So. La Salle St.,
1416 Chestnut
KIDDER,
"
Founded
BOSTON
115 Devonshire
1865
PHILADELPHIA
St.
•
■
;
Broadway, St. Louis
■
123 South Broad St.;
i0 East 45th St.
CHICAGO
;i
13!> So. La Salle St.
UNION
SECURITIES CORPORATION
Laurence M. Marks & Co.
Members
75 Federal Street, Boston
314 North
York and Boston Stock Exchanges
ANEW YORK A.
*
\
,
PEABODY'6?jCO.;
Members of the New
17 Wall Street
Chicago
St., Philadelphia
Investment Securities
of the New York Stock Exchange
Investment
Securities
!
■
;
'l\
■
«
•;
BOSTON,
HARTFORD
new YORK
'j:
65 broadway, new york
.
<
•
BUFFALO
PHILADELPHIA
{-
•
•
-X
;
SYRACUSE
B1NGHAMTON
ALBANY
BALTIMORE
i
THE COMMERCIAL & FINANCIAL CHRONICLE
1526
ence
■
local finances.
upon
this
times
normal
Bid-Asked Disclosure Rule Declared
Thursday, October 29, 1942
-
Even in
„
throw
would
As
developments of special import during the year re¬
among
the annual report of the Municipal Securities
Committee of the IB A, presented at the Association's annual meeting
in New York.
The report sees the rule as having an injurious effect
ters
on
of importance in
State and Governmental units,
and likewise
industry itself.
port herewith,
C. Webster
investors and the
on
as
We give the re¬ change Law as originally written
signed by Robert and as subsequently amended.
Chairman:
port to
year
the states and their gov¬
Inasmuch
ernmental units.
consider it
this time
a
essential
one
to
us
we
review
at
of these subjects to
considerable
extent,
we
will
limit this report to these two mat¬
ters,
1.
They are:
The
proposed rule of the SEC
X-15C1-10.
21 The renewal of the efforts to
obtain
enactment
authority for the Federal Govern¬
ment
to levy upon the income
from state and municipal bonds.
statutory
by
wrote
into
the
bill
section
a
so
providing. After an extensive dis¬
cussion of the subject on the floor
of the Senate on Oct. 7 and 8, this
provision was stricken from the
bill by a vote of 52 to 34.
It will
if
the
thus tax the in¬
can
classify that taxation so as to
municipalities or cer¬
tain kinds of organizations or cer¬
of
of
kinds
place
It
income.
rate of tax
one
on
a
now
direction
permit the increase
mind it is per¬
in these times
To my
that
of local
control
govern¬
merely
spellsbureaucracy,
which
has in it
many of the vices of dictatorship
ment
could
one
take
we
in
taken
clear
Federal
certain
tain
that
step
be
ernment.
fectly
can
tax
'No
should
of Federal control over local gov¬
Federal
from municipal securities, it
come
from the effects of Fed¬
which would
"
'Furthermore,
ever
kind
itself.
municipalities and then exempt
inevitably
the
On
control
over
hand local
communities,
other
local
the income from the securities of
spells independence and is filled
other types of local govern¬
with the vital virtues upon which
some
the
If
ment.
Federal
Govern¬
free government is built.'
be recalled that in the Senate in
that the
September, 1940, an amendment ment has the power to tax income
Will There Be A Renewal Of
;
legal phases of the proposed rule
was
proposed to a then pending from municipalities in that way, it
The Attack?
in
its application to
municipals
tax it
in such degree
and
revenue
measure
which
would can
will be discussed with the Com¬
We should
"Clearly efforts to force the is¬
have authorized the Federal Gov¬ manner, as it wishes.
mission by David Wood of the law
then find the Federal Government sue by the statutory method are
ernment to tax the income,;from
firm of Thomson, Wood & Hoff¬
future issues of state and munici¬ thereby having the opportunity to costly and take the time of Con-j
man, New York City.
A copy of
pal bonds.
The proposal at that discriminate between communities gress, and of state and municipal
a
memorandum on this phase of
others from their!
time was also voted down.
-' of .the .United States which they officials and
the
subject prepared by David
essential, duties—more than ever,
'"During the recent discussion.in wish to finance and those that
Wood was previously sent to all of
war
period.
the Senate on the subject, Senator .they, may not wish to finance.
We important; in . a
our
members.
For
subsequent
(Continued on page 1533)
i
then be in more danger
Davis of Pennsylvania, statediand would
reference, copy of this memoran¬
we quote from the
Congressional-,
dum appeared in 'The Daily Bond
Record:
Buyer' of Aug. 28, and in 'The
"It
there have
been two developments relating to
municipal securities of special im¬
the
"During
Ex¬
Securities
the
of
actment
standing bonds concluded to sub¬
mit the matter of taxing future is¬
sues to the Senate and accordingly
rea¬
I have indicated.
son
Government
<$>-
lating to municipal securities, the proposed bid and asked disclosure
rule of the SEC (X-15C1-10) was cited as one of the two such mat¬
"
the. smaller community upon the
Federal Government for the
Detrimental To Municipal Securities
than
eral bureaucracy.
is
also
expected
■
,
.
"
Bond
T
Buyer' of Aug. 29.
ury
"Another informative memoran¬
dum
on
| the legal aspects of the
Once
see
the pattern of the Treas¬
IBA PAST PRESIDENTS
Department's" future i action.
they succeed in ramming
.,
1927-28
1929-30
1930-31
this
provision down the throats of
this Congress they will be back
Marshall, Trimble & Mitchell, at-, here within two months pleading
Proposed SEC Rule X-15C1-10
torneys,, New York City.
This with you and me to tax outstand¬
"This proposed rule which was
memorandum
also
appeared in ing bonds in order that they ..may
submitted to the business for re¬
'The Daily Bond Buyer' and in
obtain
additional
Federal
reve¬
view and comment has been care¬
'The Bond Buyer,' issues of Sept. nues.
They will remind us again
fully studied by our members, and 11 and
Sept. 12 respectively.
j of the all too familiar taxpayers.
we
have prepared
a
statement
Mr. A, Mr. B, and Mr. C,. who are
Tax Immunity
descriptive of the practical effects
receiving from $600,000 to $800,of the rule in its application to
"In our report of last May to
000 in tax-free municipal interest.
municipal securities.
It is ex¬ the Board of Governors, we brief¬
'Then having opened the door
pected that this, statement will be ly summarized developments dusubmitted to the Securities and ing the forepart of the year in by taxing future and outstanding
Exchange Commission at a com¬ the renewal of the effort to gain issues, it will be simple-for the
subject was prepared by Caldwell,
'
"
paratively early date.
"We
believe
that
the
Federal authority to tax state and
Commis¬
sion, upon its examination of the
proposed rule, will recognize that
in practice:
'
*
1.
It could not be
effectively
or
efficiently complied with and that
it would be impractical and un¬
workable.
2. It would be
injurious to:
a.
—b.^Investors^=large_nnfLsmall;
of
The industry engaged in pur¬
without
states
constitutional
a
That effort
under
the
was
the form
in
amendment.
renewed this year
guise of
a
war
feared
been
all
underlying this effort
far beyond
to
proprietary functions of State and
municipal government.'/
"Senator
"
and. Means
of
review
the
Ways
of
Committee
the
chasing and marketing municipal
securities and otherwise serving
House
municipalities and investors,
system.
j
3.
And
furthermore,
that
it
15
its
rejection of the proposal with
re¬
ture
issues.
The
on.May
Senate
Finance
lay
! Committee,
and purpose
while
more
no
-I
.
.
Henry
Trowbridge
Ferriss
T.
a
the
by
on
Federal
one
"Senator Burton
re-
Govern¬
of taxation,
of the States
HARTFORD
Insurance,
Utility and Manufacturing Stocks
of Ohio in his
PUTNAM & CO.
-I
'My final point "is the general
of
Hayes
Municipal and Corporation Bonds
said:
undesirability
R.
CONNECTICUT
political;
a process
burden
Henry
Callaway
potent in¬
all the
discussion
' jecting the proposal to tax out-
of Congress in its en-
however,
v}t
Texas
States, it can unbalance
the dual system which we enjoy'.or
"
would be in violation of the intent
is
If
ment canv
spect to both outstanding and fu¬
announced
'There
life and the heart of any
to the income from future issues.
way"
\:
of
strumentality
of
any
govern¬
mental organization than the tax¬
ing power.
It goes right to the
reaches
are
Connally
during his discussion stated:
that
limiting the levy solely
us
impose corporate taxes on the
of municipalities, and all
revenues
neces¬
along,
Department to urge
Treasury
the
sity, and the proposal embraced
outstanding bonds as well as those
of future issues thus disclosing, as
-"By
'
c.
consent of the
had
The states and their govern¬
mental units which means public
interest as a whole;
!,
securities
municipal
Federal
Member New
influx
:
York
Stock Exchange
HARTFORD
CENTRAL ROW
6
;
,
'
;
Tel. 5-0151
.
J
Bell
N.
System
Y.
Teletype—HF 564
Tel.—Canal
6-1255
ROBERT GARRETT 6- SONS
Joint Stock Land Bank Stocks &
Established 1840
Bonds
All Issues
Investment Bankers
Bought—Sold—Quoted
C. e. NOVOTNY
BALTIMORE, MARYLAND
no
NEW YORK
BROADWAY
Teletype NY 1-56
Telephone WOrth 2-0194
Canadian
Government
Provincial
Securities
Municipal
Public
Direct Private
Toronto
and
Julius A.
744
Incorporated
14 Wall
Rippel, Inc.
NEWARK
Wood, Gundy & Co.
Wires to
Montreal
Utility
MArket 3-5331
Broad Street
New York Phone REctor 2-5344
Street, New York
Bell Teletype
TORONTO
MONTREAL
WINNIPEG
VANCOUVER
LONDON, ENG.
—
NK 294
Volume
156 { Number 4120
THE COMMERCIAL & FINANCIAL CHRONICLE
1527
tant
Railroads
Not
/
IBA Committee
Says Patterson, Speaking
"
will be realized without serious embarrassment to the
railroads."
the
to
steamship lines
According: to Mr. Patterson "it would appear
that the airplane-cannot supplant, but instead will supplement the
railroads."
Mr. Patterson's views $
presented in
were
der
the
title,
a
statement,
un¬
"Will the Air¬
plane
S
time transport formula.
sup¬
plement to the
report
of
the
Railroad
curities
mittee
IBA,
ed
Se¬
addition
Com¬
of
into
the
nual
the
weight
an¬
can
be
follows:
tance
of
combat
strument
as
in¬
not
be
is
and
well
known
and
overemphasized.
can¬
Consid¬
eration of these facts
gives natural
rise to enthusiastic speculation re¬
garding the post-war possibilities
of
commercial
Visions
air
transportation.
of
huge air liners and
towed glider 'sky trains' carrying
a major share of the world's com¬
merce
over
sea
and
land
are
everywhere being publicized to¬
day in newspaper and magazine
articles and in public utterances.
%
"When
publicity
the
using
as a
would
be
than sufficient to accommo¬
the
and
modern, warfare
transport medium for : the
strategic
movement
of
critical
supplies required in the conduct
war
operation
wartime
present
basis for evaluating
peacetime future of
air
At
in the, first
the cost of
cargo
present
commer¬
cial air /transport it should be re¬
fifty times the cost of trans¬
significant
commercial
sky train'
month. The airplane can¬
hope to compete in this field,
plane's
real
contribution
to
strategic
•
cannot
situations,
be
relied
the
upon
which
constitutes by far the ma¬
picture, the creation of its
market, the people and the
of
chandise that could
the
cargo
now
trans¬
ported by the steamships and the
all
railroads.
transit
"The
future
is
commerce
appears
realized
that
of the
airplane
in
magic
cost
saving
cutting an
airplane up into little pieces and
dien tying the pieces
together."
"Compared to other transport
media
the
airplane
rate premium based
claim
can
largely
on
one
possible.
economy
demands!
types of transport media, each ful¬
filling the requirements peculiar
without
serious
embar¬
hundred-fold and yet capture
to its
services
all
the
various
inherent characteristics.'
own
It would
of
that the airplane'
supplant, but instead will
supplement the railroads.
appear
cannot
PAST PRESIDENTS
1926-27
1925-26
1924-25
the
value of the time it saves.. An in¬
dividual
is-easily persuaded that
his
is
time
yf air
the
added
cost
travel, especially when this
factor
tion
worth
is
considered
with
in
conjunc¬
convenience, comfort,
intangibles1 as the
and such other
and
prestige
with travel by air.
associated
But
an
piece of cargo presents
inani¬
a
dif¬
ferent problem.':
Here ..the time
^aved must be business
time, and
•t must be
ing.'
strictly worth the sav¬
A large number of important
renters
are
served
port of the bulk of commodities by
surface transport
surface
by
overnight
tage
means.
:\»■
1.
,.
"Undoubtedly, future . techno¬
logical ; development will make
possible a great reduction in the
cost of flying an airplane. But the
aircraft industry has by no means
a
corner
all
on
The
country.
the brains
railroads
—
what advan¬
is to offset the higher cost of
•he airplane there?
And for the
targe
bulk of commodities, speed
in transit is
a
relatively unimpor¬
Pliny
Jewell
Ray Morris
Thomas
N.
Dysart
in the
too
can,
and
undoubtedly
costs
by means of engineering and
will,: cut
;
advances
operating
their
permitting
State and
greater speeds and increased plant
and
equipment
utilization, i In
aviation,1 operating
costs
are
higher in relation to fixed costs
/Municipal Bonds
than in other forms of transporta¬
and therefore
tion
have
should
ume
tance
among
increased vol¬
lesser impor¬
a
the possibilities for
While towed glid-
cost reduction.
Lehman Brothers
Dealers In
CANADIAN
Governments
Railroads
Provincials
Utilities
S
Ernst <Sl Company |
MEMBERS
NEW
YORK
CHICAGO
STOCK
EXCHANGE f
STOCK EXCHANGE
COMMODITY
120
,
NEW
,
YORK
23
Broadway
OF
'A
TRADE
INC.
-1
;
i So. La Salle St.
New York
Direct
EXCHANGE
CURB
CHICAGO BOARD
EXCHANGE,
Chicago
private wires to
Chicago,
Investment Securities
111., and Los Angeles, Cal.
30 Pine Street
AY E maintain
an
active interest in the
of the following States
30 State Street
New York
obligations
Boston
and their Municipalities
NEW JERSEY
ALABAMA
NORTH CAROLINA
ARKANSAS
SOUTH CAROLINA
LOUISIANA
TENNESSEE
MISSISSIPPI
TEXAS
■:
-c—
COFFIN
NEW YORK
&
BURR
INCORPORATED
Ira Haupt &
Members New York Stock
and Other
111
2-3100
BOSTON
Bell
NEW YORK
NY
Teletype
I
HARTFORD
Member of Boston Stock
1-1920-1921
M
Municipal and Corporation Securities
Exchange
Principal Exchanges
Broadway, New York
Telephone:
REctor
Government
Co.
at
the
speed in
airplane makes
the
Our
mer¬
move
this
IBA
a
that
never
for
not
the
great, but it
future will be
domestic air cargo could increase
in
it
were
the
own
indeed
as a producer of
tremendous sav¬
rassment to the steamship lines or
ings in the cost of moving
things, to the railroads. The volume of
by air.
There appears to be no
mate
air
-an
transport by air is between thirty
W. A. Patterson
a
of
opera¬
tain
romance
place.
a
in
some
more
the
as
In
date
"The impor¬
airplane
that
payload
the
a
importance in combat
operations
and may find
application in cer¬
for
state-
ment
of
carried.
have
ers
tions, in fact, the capacity of sur¬
face carriers' needed to supply fuel
Pat ter-
son's
*
a
As¬
meeting.
Mr,
forward
of
cost
It is'very easy to run
situation where the weight
aircraft fuel required exceeds:
of
present¬
at
the
to
propulsion.
the
sociation's
the dol¬
becomes
all important.
I"n order to ac-^
complish transportation by air it
is necessary to pay the cost of
overcoming the force of gravity in
roads?" which
a
In peace¬
time commerce, however,
lar cost of transportation
u p-
plant the Rail¬
formed
unimportant part of the war¬
very
::
v
—
membered that the dollar sign is a
tons per
not
jority
While
conceding that "the future of the airplane in commerce
is indeed great," W. A. Patterson, President of the United Air Lines
Transport Corp., states, however,; that "it appears that this .future
or
consideration, the most im¬ only one-tenth of 1%
of
the
portant factor being the rate of freight ton' miles now carried *
by1
flow, merely the laying down' at the American railroads. And that
destination of a given number of is
without' considering
the air¬
PORTLAND
Exchange
THE COMMERCIAL & FINANCIAL CHRONICLE
1528
Thursday, October 29, 1942
"This has been accomplished by
Methods Of Meeting Government's Needs
For Funds Discussed at IBA Conference
the Board
of
Governors
of
of the Federal Reserve Sys-
were
discussions
on
others of prominence who participated in
with the necessity of meeting the
among
Oct.
19,
dealing
needs
financial
Government's
—
through increased war bond sales
to the public and additional taxes.
Mr. Eccles who, it was noted in
side
the New York "Journal of Com¬
ing
merce"
among
to
of Oct.
20,
was
not listed
the speakers, was invited
the meeting
of 300
address
at
delegates
President
the
of the
S. ^Fleek,
John
of
invitation
the
banking
system
and less goods to buy,
have no place for their
except
in
Government
power
funds
bonds, he declared.
In the
paper
in
discussing the
of the Victory Fund com¬
Bank,
IBA;
speaking extemporaneously
he told the gathering that we are
serve
raising only 6% of the cost of war
mittees
by taxes and that we should do as
ganize^ stated that these commit¬
job as England and Canada
which are raising half the war
cost in this manner.
He stated
that these countries are raising
tees
good
a
half the increase'in their debt out¬
work
that if
raised
The
he
which
have
is the
"He said that'war expenditures
no
there
helped
to
or¬
fixed objective, but
an
was
objective, it
$48,000,000,(>00 that must be
somehow this fiscal year.
"Journal
will
exceed
collections
tax
by
$63,000,000,000 during this period,
of which approximately $15,000,special issues and raising the bal¬
ance
the
was
job of the Victory
of;Commerce" fur-
"Banks
their
will
have
holdings
present
double
to
of
bonds
Reliance
place entirely in big
however, he declared,
be
cannot
prospects,
and
funds
the
half
least
at
should
banks.
the
necessary
be obtained
This
outside
will require
an
integrated selling program which
and
can
that
so
be
must
various
set
into
voluntary groups
will co-operate instead of
in the
that
being
conflict
great educational program
will
be
required to sell war
groups."'
quoted likewise indi¬
issues to all income
The paper
* 4:
"A-
has
Sou/A/3a Sa//e Sfreef
;'K
'•"*
'
is
.
.
problem
was
who
that
one
the
of
major
educating
for
to
War
the
Treasury;
Savings
Aims
of
active in presering an economic
system which will safeguard their
investments. They will be the first
to
oppose
or
any
to
destroy these investments.
"I
know
cial
created
the
stantial part of the capital for the
Civil
by
the
War
financing
furnished
of
occasion^
sub¬
a
New York
Stock
Exchange
The
of
effect of
man
capitalist.
a
General
this
private enterprise
a
to convert this
to
his
gave
man
share
immedi¬
He felt
so
strongly about his proprietary, in¬
in
terest
General
that
Motors
sit-down strike occurred
a
in the Buick plant he was .raging
mad
and saw no excuse; for
it
PRESIDENTS
i-i' '■■■■■.
whatever.
1920-21
i
His
interests
new
adversely affected,
"I have been told
Chicago Stock Exchange
m
had
.
.,
,
by other and
better doctors than the
mother
one
whose
phonograph needle
in her foot, that in cases of serious
illness, one of the most important
factors in determining the outcome
is psychological—that is, whether
BANK STOCKS
MUNICIPAL BONDS
the
one
Motors stock.
was
in
lawyer
a
ately
ary
ors
;
Chicago
who was surprised to find that
his chauffeur had developed Com-*
munistic4
inclinations.
Shortly
after learning this, on some, spe¬
been
■
Communism, Socialism
other 'ism' which threatens
ownership in
As to his remarks the "Journal of
All
interest
ownership in the Government
bonds sold
have been sold in New York State.
of
sense
a
a
chauffeur
1922-23
Members
feel
(Continued from pge 1523)
change
started
in
Government
during the Revolution¬
War, and the body of invest¬
custom¬
result of their purchases of
obligations and they will be in¬
creasingly conscious of their re¬
sponsibilities as citizens and more
.
Post-War Expansion
bond
its
Arnold
y
of
potential
your
them
as
to.the Secretary of the Treasury,
:
and
and
Vice-President,
National
City
of Cleveland; Edward
C.
Bendere, Executive Manager, Vic¬
tory Fund Committee, Philadel¬
phia; George Buffington, Assistant
Sees Great Period Of
program
ernment issues after the war.
Coney,
Grunningen, Execu¬
tive Manager, Victory Fund Com¬
mittee, San Francisco.,
on
for securities other than Gov¬
ers
Bank
and
of
first
the
"These people are now capital¬
Staff of
G.
of
19,500,000 employees
payroll deduction plans
a
ists,
according to the paper indicated,
were Robert
W. Sparks, consult¬
ant
As
war.
regular
buying.
are
Others to address the gathering
the
So
month,
were
not ordinarily
reached by bond salesmen, ' and
that work among churches, fra¬
ternal organizations
§nd the like
is producing surprisirtg results."
people
last
this
the
750,000,000 in sales and, that thus
far 17% of all war savings bonds
IBA PAST
■
declared
"He
when
(S/zicaqo
'
set
objective
for the State of $1,an
V;
employes participation."
during 1917 and 1918.
the number of in¬
of "E," "F" and
"G" bonds already issued exceeds
90,000,000, against a total of 96,000,000 pieces of all issues during
30 over 2,024 at
he stated. Of
15,000 have 100%
Commerce" stated:
o uo.
j7nv<3sfrnci7fC)Qcur'i/i0s
/35
saying that
been
by Sept.
40,000
Ford, New York State
administrator of the war savings
as
Bonds
far in this war,
dividual pieces
roll
deduction plan have increased to
these companies
of railroad building that
It is estimated that 23,-
era
000,000 people invested in Liberty
bonds,' he said.
"Concerns adopting the pay
cated Nevil
staff,
^Sacon/Iifitpp/o
of F and G
Fund Committees.
by next June 30, he said.
•
it was noted
that President Sproul of the Re¬
same
fol-
as
and in 000,000 will be raised by bonds and
this respect, too, we should equal
this record. With increased spend¬
people
Sproul
lows:
Federal Reserve Bank of
and Allan Sproul, President of the
tern,
New York,
old-fashioned shoe leather selling
the start of the year,
part of the War Finance Conference in New York of the^
Investment Bankers* Association of America, Marriner S< Eccles,! ther reported Mr.
As
Chairman
great
followed.
roll savings plans and 'good
pay
ran
a
the patient is so sick and tired of
LISTED AND UNLISTED STOCKS AND BONDS
it all
to
a
that he is passive and ready
die,
or
whether he still retains
vital spark of
hope and the de¬
termination to live.
Underwriters and Distributors
_
"The members of this Associa¬
tion
who
structive
have
survived
the
de¬
forces
working against
us
during the past 13 years and
who, today, stand ready and eager
to devote their
Paul H.Davis & Go.
Established
A.
Prescott
Roy
C.
Osgood
securities, have demonstrated con¬
vincingly their determination to
1916
live
Members
South La
Salle
Merchants Bank Building
Street,
230
CHICAGO
South
Church Street
and
war
Principal Stock Exchanges
Underwriters and Distributors
10
time, thought, and
energy to the sale of Government
John
of today
play
a
part
both
in
the
and in the peace of
tomorrow."
of
MUNICIPAL, COUNTY AND SCHOOL BONDS
ROCKFORD
INDIANAPOLIS
||S|jFOR
57 YEARS
Southern
Established
1885
Textile Securities
H. C. Speer & Sons Company
the
field
v
building
135 South La Salle Street,
Chicago
Telephone Randolph 0820
A. M. LAW & COMPANY
(Established
1892)
SPARTANBURG, S. C.
State
Straus Securities
Company
and
'
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Municipal Bonds
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Street, Chicago
INDIANAPOLIS
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St.
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Exchange
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Volume
156
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THE
Number 4120
COMMERCIAL & FINANCIAL CHRONICLE
the possibilites of
cargo planes in
moving large volumes of freight.
There still is also a tendency to
Restoration Of Credit Of Railroads Of
■
■
1
■
Prime
*
f.
•
,
1529
•
,
t
1
1
,
proftable,
minor
ness
exaggerate the loss of business to
the trucks—most of which took
Importance To Free Enterprise
place
some
"The
years
backbone
of
the
of
this
a
relatively
the.railroad
is
also .true
passenger business.
busi¬
of
the
The financial
difficulties of the rails caused by
the low earnings of recent years
7
ago.
formed
part
and
railroad
were due primarily to the exten¬
business has been the long haul sive
collapse in heavy traffic.
demonstrating in a most emphatic manner how
mass
"Mr. W. A. Patterson, President
transportation of heavy and
vitally important the railroads are to the country" was noted in the however, is ignored by investors.
Few are interested in these high bulky freight.
Neither airplanes of the United Air Lines, well
jeport of the Railroad Securities Committee of the Investment Bank¬
earnings because they are consid¬ nor trucks can compete success¬ known to all of us and recognized
ers Association of America, presented at the latter's annual meeting
The short haul as one of the leading authorities
ered temporary and due entirely fully in this field.
in New York.
The Committee, under the Chairmanship of John S.
to
the war production program. and
package
freight,
although
(Continued on page 1535)
Loomis, of the Illinois Co. of Chicago, emphasized that the railroads
Earnings may not continue at the
"are a national necessity, and it<f>—; -.77v.1;""
' -i
——;—7
is most important that our total necessity and it is most important present high rate after the war,
railroad plant be preserved, main¬ that our total railroad plant be although we must remember that
IBA PAST PRESIDENTS
the railroads will have to play a
tained
and
enlarged"
both for preserved, maintained and en¬
"future national emergencies" and larged—not only for future na¬ very important part in the general
1918-19
1915-17
rehabilitation
tional emergencies but for all pe¬ world-wide
pro¬
"all periods of general business
riods of general business activity. gram that will follow.
Therefore,
activity," '
'/.7V" 7v7
This cannot be done unless their we can reasonably expect earnings
The report follows in full:
That "the
is
war
.
"The
Railroad
credit
Com¬
Securities
mittee at this time is
Bonds.
is
Everyone
properly restored and a
market again created for
"Where
and
would
that part of our
should be.
However, we are sub¬
mitting this brief report as an
opportunity to point out again
that private capital must realizg
securities
that
out?
the restoration of
at
representing
that
time
suggested by
great many people.
capitalistic
torial
free
7- • ••••;/; 7'7 7 ■:
"The present continued lack of
interest
on
the
and
capital
the
expressed by
as
some
riods
fi¬
cause
would hate to
we
ernment
roads
ownership
sequences
:
"The
most
the
and
far
se¬
,77V
the
to
answer
pessimistic
attitude
the
of
in
fear
ruinous
war
—
will
Of
lose
fic
and
to
the
a
of
competition
the
course
and
the
after
from
lie
to
increased
principally
lines.
present
seems
air
the
railroads
light freight traf¬
some
lot of passenger traffic
air lines and we predict
a
great development in this form
transportation.
However, we
that
believe
much
too
fantastic
being painted.
Our
imaginations are being stimulated
and it becomes easy to exaggerate
pictures
are
W.
G.
Baker,
Lewis
Jr.
Franklin
B.
to
provide and' maintain it—in¬
cluding the "stand-by" part, if
such a part there must be.'
of the rail¬
reaching con¬
in
to
■
in¬
of railroad
opinion
curities.
"The
to
seem
present
recognize that such a plant
be assured in periods of
emergency unless in all periods
there is available, enough income
gov¬
is demonstrating
is
the
also
"We
•
that would follow. 777
war
a
by
cannot
we
see
pe¬
emergency
be considered
merely "stand-by" plant. It must
did
hot have
reasonable grounds to
look for a favorable change.
We
hope this change will occur be¬
alarming if
national
it
of
part
services, some insurance
companies, some
banks
and a
great many individual investors
more
of maintaining for
of
large and efficient railway plant
—even if in other periods a large
nancial
would be
A recent edi¬
in
necessity
part of private
pessimistic atti¬
tude toward railroad securities in
general,
a
fRailway Age' says: 4A
realistic
national
transportation
policy must recognize the national
enterprise
system.
v
wiped
it
solution that
the
was
indicated
be
railroad plant that
of the railroads is of prime impor¬
tance to the maintenance of our
and
if
used a few years
been junked and the
That
was
today
being
had
ago
credit
the
not
was
be
we
substantially better than
vestment
V".
their securities.
ested in War Bonds than in Rail¬
road
is
proper
inter¬
more
all
know
that
the railroads
of
gross
Beak, Stearns
&
Co.
Members New York Stock Exchange
reve¬
making
highs and it is also true that
the companies have placed them¬
nues
are
new
a
emphatic manner how vitally
important the railroads afe to our selves in stronger financial condi¬
country.They are a national! tion than ever before. All of this,
STATE
:
7
f
•-
i
:/
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.
NEW YORK
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and Maryland
BUCKLEY BROTHERS
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Members
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MUNICIPAL
u. s. Territorial and Insular Bonds
Distributors of
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AND
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in
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THE COMMERCIAL & FINANCIAL CHRONICLE
1530
is
one
Japan Fights Against Own Welfare Says Grew;
in
not
one's
up
have
position
a
threats,
To
force.
Thursday, October 29, 1942
threaten
back
to
Contrasts War Finance 01 United Nations And Axis
is
down
enemy," and particularly its activities in the fields
of finance, were the subject of an address by Joseph C. Grew, be¬
These systems all are in contra¬
fore the annual meeting and War Finance Conference of the Invest¬ diction to the philosophies of ag¬
ment Bankers Association in New York on Oct. 19.
Mr. Grew, who gression
nurtured
by Japanese
is special assistant to the Secretary of State, and former Ambassador and German militarism. The Axis
to Japan, described Japan as "fighting counter to her own welfare powers have attacked. They think
and prosperity." "We Americans,"
•--they may not be as sure now
which
the
he said, "may say, without vain- mistakes
Japanese as they were nine months ago—
leaders
made
in
leading
their that they will win. We know that
we will win, and
country into war."
bring freedom—
Toward the end of his address not omitting the basic, practical
Grew
freedom from want—to
said:
basic
the
will agree that
of
issues
this
political; that they transcend con¬
siderations
economic
or
economic
Nations,
of the United
whatever they may be,
one
each of the others—so long as
proceed
Charter
and
times and under certain Japanese
quent
pronouncements
United
Nations
"The
the minds of the
thought
United
other
.:t.
from
*
'•
•
.
V
»•.
world
the
It is
take
can
risk
to
up
a
greater risk than
involved
us
in
fighting
grown
us.
of
our
sity
leaders, and we shall show
them, that war with us is the
greatest folly, among many fol¬
nese
lies, that they
an
her
become modified
the years.
Britain has
substantially little
over
different from
our
own.
both
by
China is
theory
and
ever
government
this war, but
one
economy
committed
committed. I
am
speaking, however, not only
of the hazards Japan faces, now
that
differ
enterprise, which has
and has
has
practice to
vidualist
a
joint state and indi¬
economy,
"according
to
Yat-Sen's principle of popu¬
Sun
lar
of the succession of
mostly
—
the
up
what
prosperity.
on
we
picture
In
he went
"For
not whether
was
several
endeavored
modities
avoid
an¬
tagonizing Japan, notwithstanding
the fact that Japan had done a
deal to antagonize
great
had
that
again
seemed
common
opinion it
was
wisdom
war, we did not
thought war should
be avoided, and at that time we
in
were
no
of
similar
embargoes
steps
warfare
and
are
a
errors
Now,
that
"The
I said
and
other
form
of
one
can
of
to
me
be
to
common
the
sense
and
Government
our
then
developing
a
term
failed
ments
and
tary
All
extremists.
of
summer
our
1941
of the
dation
which
insure
a
would
and
support
structure of
friendly
re¬
lations with the
Japanese Govern¬
ment; I constantly pointed out to
the Japanese—and pur Secretary
of State, Mr. Hull, was doing the
same—that they had everything to
gain and nothing to lose by con¬
cluding
a
with
and
us
ment
reasonable
would
return to
free
agreement
such
an
agree¬
bring in its wake
a
free flow of trade and
a
financial' cooperation;
commerce,
and
that
the
to
access
terials of East Asia
raw
on
sion to
low
a
future
of
assurance
ma¬
basis
a
of
prosperity:
These arguments fell on deaf ears:
It
found
was
lay
any
those
utterly impossible to
solid
foundation, and
>
who
worked
wanted
that
do
to
who
and
term
reach
an
and
mis¬
serve
peace
prefer
years
of
my
as
failed
con-
to
"Please
let
add
me
long known
of
and I
war
information
SOUTHEASTERN
en¬
that
Japan's
I
kept
which
Gov¬
our
of the.
to
the
on
that
came
Embassy
my
had
prepara¬
subject.
"During all this time
ernment
BONDS
pre¬
war
ernment currently advised
CHAIRMEN
ENGLAND
and
and
sued.
Japan I endeavored to fol¬
policy of constructive
were
agreement
knowledge of
STATE m MUNICIPAL
doing
were
best to lay a solid foun¬
very
the
during all the 10
be made
NEW
during the
we
tions for
YORK
succeeded
were
by Cabinets in tune with the mili¬
conciliation,'
conceptions. y I
diplomacy is to threaten when
NEW
of
optimistic
was
But these favorable pe¬
riods proved to be but temporary
and in every case such govern¬
success.
mis¬
'appeasement' is,
moment ago, open to
'constructive
con*
GROUP
I constantly
foundation. At
rapidly
overwhelmed by the military ex¬
tremists and pro-Axis elements in
the country.
Thus the effort to
situation.
the
in
they definitely
threats.
most fatal
in
pressures
was
Up until then,
and in my
with clear manifes¬
that
handled
respect prepared for
Economic
that
sense,
tation of plain
want war, we
form
if
I
a
been
do not believe in
war.
interests
lay such
governments
which to build
on
laid.
been
our
plain
We
us.
vital
first
tried to
flowing freely equal opportunity, which would
country to Japan, but at inevitably result in mutual advan-.
approximately that time our im¬ tage to our two countries, a rising
position of embargoes began; and standard of living in Japan, and
from
Govern¬
our
to
plan of expan¬
but when, for the threat to
oil and scrap iron and other com¬
during the
years
must call
we
Japan's
the gravest nature.
remarks
to say in part:
on
halt to
expansion should continue
after¬
and
further
middle and late 30's
ment
a
it conjures
Munich and
there
his
finally
no
that the question then at is¬
tion
sue
as
of
face
to
time
or
longer de¬
sirable to follow a negative policy,
and at that;time.I took the posi¬
term
—
The
war.
em-
unless
course
when I felt it
came
which
we
prepared
were
rela¬
our
course
should
a
eco¬
Japan
and that under
war,
such
eventual
in
public with the
misused
happened
stitute
sought
mark
that
start
circumstances
no
of
against
downward
a
might end in
of
wards."
economic and military neces¬
by
to show the Japa¬
inevitably
American
another, but they differ col¬
of free
would
tions oh
sion
unbridgeable gulf. We have a sys¬
tem
fact
application
pressure
ceptions, especially
lectively from Axis finance by an
glory, but, with profound convic¬
tion, that no nation in the modern
the
the
nomic
which gives rise to many miscon¬
leaders.
Nations
that
tion
appeasement."
He
added: " 'Appeasement' is a much
States, of Britain, of China, and of
Joseph C. Grew
important aspects of
During my years in
Japan I constantly took the posi¬
they
finance of the United
war
clear certain
used
subse¬
the
to
going td
to build
to be of
unless a
The President, in a pub¬
statement last July, made
until
referred
a
ac¬
that problem.
man¬
"diplomacy is often associated
to
connotes
has
lished
At the start of his remarks Mr.
Grew
fatal
Action'in
term
solid foundation
with
principles of the
the
on
Atlantic
the
that
interest;
systems
reconciled—each
be
can
financial
national
of
to
That
building, and no one is
be foolish enough to try
anything, if he wishes it
a
permanent character,
this, whether it Is
'appeasement'
or
any
term,
is
plain
common
sense.
kind."
are
war
all
then
ciliation.
labeled
"Our Japanese
"I think that you
by
cordance with
other
Mr.
be,
and
nation's influence.
back
to
if need
would
connive
at
not
Gov¬
our
and
did
not
give any assent to
aggressions which Japan had
the
or
committed
But
the
and
was
United
committing,
States
was
pre-,
jyaTt^to iTTeetPvery evidence of"a
Japanese return to goodwill by
bond: department
the substantial
evidence of good-k
will-
Mississippi Valley Trust Company
part.
on
Japan's
St. Louis
and
we
bor
our
most
to
Japan,
would
be
We
powerful
wanted to be
if
a
were
neighbor,
good neigh¬
Japan
herself
good
a
neighbor to us,
China, and to the other coun¬
to
tries in the Pacific.
"We
"
Fifty-Two Years
prepared to offer the
everything " for which
were
Japanese
;
her leaders professed to be
Frank M.
Stanton
Joseph
T.
Walker, Jr.
Walter
S.
Robertson
We
sound
trade,
on
offered
terms
both countries.
BANKING
INVESTMENT
fight¬
ing.
1890
esss
1942
the
Underwriters
Stifel, Nicolaus & Company
ST. LOUIS
SECURITIES®
CHICAGO
•
of
the
advantageous
to
We offered them
financial
coopera¬
United States
toward
putting their fiscal house in order;
All that we asked was that
Japan
abandon her militarist
aggressions,
cease being a bad
neighbor in East
Asia, and enjoy with us the pros-*
perity that we and they could
Distributors
CORPORATE and MUNICIPAL
INCORPORATED
powerful
tion
them
have
found
in
We
common.
did
not, do not, and never shall assent
to Japan's assuming the
hegemony
Steni Brofes
of
KANSAS
Municipal Bonds
CITY. MO.
aggressor.
Far
"The
ance
1009-15 Baltimore Ave.
Stale and
the
an
Co.
b
East
as
Japanese
of the
a
robber
rejected
prosperity, the
and
assur¬
secur¬
ity and the welfare for which they
say that they are fighting.
They
attacked us.
They added us to
*
OMAHA, NEB.
the list of those whom
they seek;
to conquer and to
despoil.
They
attacked us because they did not
BONDS
MUNICIPAL
BOND DEPARTMENT
Locust
-
want the
prosperity of honest in¬
dustry, fair trade and sound fi¬
nance.
They did not want co¬
CORPORATION
operation
PREFERRED STOCKS
Mercantile-Commerce
Bank and Trust
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INVESTMENT
peaceful
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NEW
and
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tional relations.
"
❖
*
•
:
' I
5'
system supports
of production
designed to
both
producers and con¬
Our public finance is in¬
tended to pay for
government, to
for
the
enlargement
and
pay
BANKERS
maintenance
916
Baltimore Avenue
AT&T—KC262
Kansas City, Mo.
VI.
3143
of freedom/and to
correct inequities in our economic
life.
Our international finance is
a
method of recording and facili-
Volume
THE COMMERCIAL 8c FINANCIAL CHRONICLE
Number 4120
156
tating. the actual exchange of real
beeause
Japan's
goods
realized
that,
not
and
real
conceive
services.
of
trade
We
as
do
flowing Japan
had
to
leaders
military
for
purposes,
war
autarchic.
become
has been the
keystone of Japanese
competition.
The
international
China
did
war
phases
nothing—either in
only
one way.
For many years,
reciprocal trade agreements
policy of the United States has
been a complete antithesis to the
The
the
is
history of increasing and
multiplying controls. It was dur¬
ing these years, and continuing
farmer. His
economics
as
you know, until last Decem¬
ber, that I served as the Amer¬
prosperity, when he sold his prod¬
ucts on a rising market—but the
Japanese farmer remains the first
for
which
Japan
and
Germany now stand.
"The
•
Japanese people
twisted
from
the
the
were
ican Ambassador in Tokyo.
not
economic
one
1932
history of Japan from
the
-
"I
the
saw
generals
Japanese
single follow policies not unlike those of
night.
The change was accom¬ Hitler in Europe, TradeNwas carplished within Japan by the rising telized. Foreign enterpris^were
tide of. military fanaticism.
The tied in with the domestic War"
Japanese
people
have
strong economy.
Foreign exchange be¬
traces' of zealotry and fanaticism came the
subject of repressive
in their individual and their na¬ regulation. By the spring of 1938
tional thinking, but they did not an Emergency Capital Adjustment
yield to their present totalitarian¬ Law had tied down every ordinary
ism without reluctance. They were act of commerce to the miliary re¬
seduced by their rulers, 1 particu¬ sources plan,
larly the' military chauvinists— ;
"There was no time in all these
over a period of many years.
It years when, the Japanese Army
is terrible to consider the corrup¬ actually said to their people: 'We
tion of a people by its own lead¬ shall fight America and Britain.'
ers, its own government.
Pamphleteers and journalists dis¬
"The Japaneses leaders had to cussed that possibility; statesmen
But the issue was
change - the mind of the nation hinted at it.
system
to
other
in
a
-<•
from the
to help the J a p a n
sons died in it, He
—
taxed
for
it.
Occasional
shortages give him the illusion of
and the
constant victim of Japa¬
militarism.
nese
"Between the investors and the
driven
into
would
an
Their freedom
of
ment,
thought,
government
loans
or
resistance into evi¬
incidentally
in
pire alert with the clamor of
war;
a
military fanatics to whom
and the glory of con¬
are
They
war.
let this ultimate issue
never
become
power
clear.
of
all
concepts
of
honest
dealing—
irrespective of the articular epoch
or
system. It is the mere mask
predatory military oligarchy
which neither comprehends nor
approves the principles of honest
a
move¬
which
say:
closing, I should like to call
to your minds certain memorable
statements
made
recently by the
Secretary and the Under Secre¬
tary
of
of
July
State.
In
23, the
Secretary began:
raging through¬
'The conflict
out
the
his
broadcast
now
earth
is
(Continued
not
a
on page
of
war
1535)
CROUP
MISS.
VALLEY
CHAIRMEN
CENTRAL STATES
MICHIGAN
were
of
actually
pattern. Japan
free
the
to
The two changes
of the same
departing from
was
system
domestic
of
based
and
goods
foreign
and
services
unfree economy, based
an
the
on
Japan
Japan was
part
economic
exchange
over
produced.
bankrupt.
were
upon
the
were
going
was
a
engaging
"In
-
which
they
The
financial system which Japan has
created
is
one
which
violates
winning some sort of a
|victory and then stopping and
consolidating her gains.
"With
developments such
as
these, two seemingly incompatible
pff.
they are unable to shake dence of conspiracy, or recalci¬
.They are not bad financiers trancy, and kept the Japanese Em¬
state.
address Mr. Grew had the follow¬
ing to
:Japan's
resentment
and traditional ambitions
Chinese
robber
expression
secured by the slender chance
cjreams
instance of
a
superstition, or both.
Their sav¬
ings were. solicited for Japanese
getting stronger.
expansion in China, mag¬
of
circumscribed artfully by ap¬
peals to their patriotism or their
for
every
of
was
terms of a mythology of war.
The
Japanese fight because of ancient
more
the
preserve
rights by dealing
exchange, of stable money, and
of international good faith."
In the concluding portion of his
only be relieved by state
control.
tendencies
nified
to
.am
shall
insecurity which
never
brought to a focus.
The
Japanese army and leaders called
practical, simple terms of
and
welfare,
to
the
economics
were
our
I
Japan which pursues the
a
course
for
farmers, the middle classes
and
peace
with
economy,
think that we
to
try again
never
was
food
military
panese
relieved
e s e
1531
domestic
destruction
of
quest
appeals far more than the
Accumulating economic values and
Japanese
them¬
selves, they realized that their
people had no choice but to fol¬
goods in military enterprises and
supported by the foreign expro¬
the general welfare of peace.
low
priation of goods.
of
militarization was not too rapid.
"Let me give you a few in¬
stances of what happened to the
people
in
Japan
during those
"In
1930, Japan was still a con¬
empire operating on
the basis
of accepted
economic
standards and setting a pace for
progress which
was
almost un¬
stitutional
matched
A
elsewhere in
succession
ments had
The
civilian
had
treaties
the
assured
defensive
permanent
curity »in
made it
govern¬
promised Japan peace.
naval
Japan
of
the world.
Pacific,
and
se¬
had
possible for her people to
avoid
the
naval
race
ruinous
with
of
expense
a
and with Great
us
Britain.
"The
turning-point
in
1931,
them, provided the
process
years:
?
"Japanese big business was ca¬
joled, bribed, or blackmailed into
self-regimentation and into ac¬
"Japan
in
is
is
and
finance.
discredited.
Mills
D.
Dean
McCormick
Charles
A.
Parcells
Her
Her
foreign
investments are held only at the
points of bayonets. Her customers
are
S.
ruined
of honest
terms
trade
finished
Andrew
completely alienated.
"Nevertheless, in terms of dis¬
quiescence to government control.
honest
finance, Japan
flourishes.
When I arrived in Japan in 1932,
Japan
has
temporary
Japanese
conquests
BALL, COONS & COMPANY
business
still
was
a
model
of comparative efficiency,
drive, and inventiveness. By 1941,
it had become an adjunct to the
military regime. Japanese inves¬
tors
were
driven
and
more
more
with
all
her
the
INVESTMENT SECURITIES
materials
raw
needed by a great power. She has
at her command almost limitless
labor supplies.
She does not have
Cleveland, Ohio
Union Commerce Building
friendly rivals in the regions
any
that
her
armed
forces
control.
precipitated by the attack of the
Japanese
army
on
Manchuria,
ushered in a campaign which was
directed ~ as
much- against—fhe
into government investment. Their
Her
holdings were jeopard¬
ized by the irresponsible actions
tively high and efficient. Labor
and the farmers are quiet. At the
moment ^11 this power is pouring
Japanese people as against the
rest of the world.
Relying on a
in the much-touted occupied areas
in
China
was
on
the
army's
fabricated
falsified
and
overseas
of their
incident,
the Imperial Japanese Army con¬
terms, and
quered Manchuria without con¬
sulting the electorate, or the Par¬
liament, or the Cabinet or the
ernments
This action jeop¬
ardized the international position
Foreign Office.
of
As Japanese tradition¬
the strongest indus¬
Japan.
alists,
even
trialists and financiers were pow¬
erless
the
restrict
to
growth and
the
Army
Army
operations of the army.
budgets continued to rise;
power grew.
"The
was
subject to the
cor¬
rupt exactions of the puppet gov¬
under
the
Japanese
f
army.
"Far
more
.
,
"We face this formidable
enemy.
Our Japanese antagonists live far
cheaply than
conserve
Their poverty
made
cheap food of the
Their misery drove' their
and daughters into the fac¬
sons
tories
wages
to
in
serve
a
for
the
lowest
modernized state.
wretchedness of the
The
Japanese
ning the
v
everything
eleven
officialdom
world
r.
on
■'
-J-'' r '
as
"The United Nations will not do
with
military
Japan
v;:>";f \.V V. -7
v.L''•
business
again.
spent
free
the
After
the
attempting
American
potential
years
to
I
economy
workings
a
.
Union Commerce
Building
a
against
of
'
have
safeguard
OHIO
CLEVELAND,
Ja-
ago, which
explained to
economic
an
business system
and
MUNICIPAL and CORPORATE
SECURITIES
of Japan.
invasion
this
not
was
economic in its objective is shown
by the fact that the Japanese
tary
tried
to
set
up
a
interested
welfare of the
they conquered.
the
in
whom
Chinese
They were not even
Underwriters and Distributors
QUAIL & CO.
They were not
socialism.
army
mili¬
in
Manchuria
curious sort of
authorities
:
902
Davenport Bank Bldg.
Branch
Offices:
Cedar
DAVENPORT, IOWA
Rapids and
Waterloo, Iowa
interested in
State, Municipal and Corporate
profits for Japanese capital or in¬
creased wages of Japanese labor..
concerned themselves only
procuring and supplying
further materials of war for the
Securities
They
with the
of
Imperial Japanese Army.
in order to acquire
with
which
'Lebensraum,'
The
East Asia sphere,
be
not
talked
an
about
Members of Detroit Stock
more
the
so-called
which began to
this time, is
at
economic concept.
It is
Michigan Markets, Municipal and
Corporation Bonds
was
Generally
CLEVELAND
doing
so.
TKLKPHONE
she
KAndolph 5(525
The Japanese ex-'
tremists did not want to trade-
1899
639 PENOBSCOT BLDG.
of the
speaking,
(Incorporated)
Established
a
concept of conquest. Japan could
traded freely with us, with
China, with all the nations
OTIS & CO.
war.
have
world.
Exchange
more weapons
make
to
CHARLES A. PARCELLS & CO.
they made war
"In other words,
,
Investment Securities
years
strategic necessity, at once led to
an alienation of Japan's best cus¬
tomers—China and America—and
to a subversion
of the domestic
"That
•
They
win¬
war.
Japanese invasion of Man¬
Tokyo
do.
They
They do not
about their victims.
tion of debt.
Merrill, Turben & Co.
we
their goods.
concentrate
the
rela¬
military economy behind
Japanese fleets, armies, and
worry
possible
is
air forces.
farmers continued their accumula¬
cities.
potential
into the
the
more
-
important, Japanese
farmer, his low standard of living,
churia
the
Investment
government.
industrial
DETROIT, MICH.
rRiVATK wires
TO
ALL
MARKETS
New York
Chicago
Columbus
,
Cincinnati
Denver
Toledo
If
Thursday, October 29, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
1532
—m
(State)
—has
Peters, Peters, Writer & Christen-
Ship Progress;
Elucidates Misinterpreted Remarks
Land Tells IBA Of Cargo
Later
the
annual convention of the Investment Bankers' Association at a lunch¬
eon on Oct. 19 his remarks were extemporaneous, and very little in
the way of what he had to say has been available. He did, however,
comment on what has been accomplished in the matter of the letting
of contracts for cargo vessels, the number which has been delivered,
While Rear Admiral Emory
systematized plans, with a mini¬
mum of alterations, and use of as¬
Joseph
sembly line methods. Because of
exception taken to certain - re¬
had
Maritime Commission and Admin¬
was stated in the
Press
accounts that
istrator of the War
Shipping Ad¬
Associated
President of the
Curran,
Oct.
on
(CIO)
President
Union
Maritime
National
wired
20
that the Admiral
be removed from office, and the
Executive Board of the Greater
New York CIO made a similar
20, had the following to say ac¬
cording to Associated. Press ac¬
counts from Washington:
;
"An
'off-the-cuff '.speech
I
meeting of
the Investment Bankers Associa¬
tion, of America at the Waldorfat
made
Astoria, New York City, on
Oct.
19, 1942, seemingly has been mis¬
interpreted. I wish to clarify the
matter
which
I
shall do from
notes
time the
used by me at the
speech was made, as follows:
"•I have a few pet hates:
organizers,
(2)
profiteers,
needle boys—intriguers and,
typewriter strategists.'
"I then followed with:
the
(3)
(4)
Southwestern:
organizers are concerned,
duration, in my opinion,
they ought to be shot at sunrise.
As to the profiteers, we will get
doesn't get them,
or they don't get themselves.
As
for the typewriter strategists, why
not let the President of the United
them if the jail
States and
command
high military and naval
run
the
tactics
and
strategy of the war?" 4 * *
"As
knows; there are
organizers for all
everyone
of
kinds
projects. My only inter¬
organized production."
kinds of
est is
,
Admiral
dicated
Land
was
further in¬
saying, in making the
as
above statement:
Green, R. J. Edwards, Inc., Okla¬
homa City.
"Particular-attention
in
'labor'
used the
connection
with
the word 'union'
with 'organizers.' In
nor
in connection
Chairmen
S.
James,
"Under
las.
believe
Albert H.
Gordon, Kidder, Pea-
body & Co., New York City, and
a
Vice-President of the IBA is
better
the
of
men's Committee,
At
"••/,:
-
..
served,
freed
.
Commission is joining
V-Loan
procedure,
with the State Securities Commis¬
ernment financing
try.
announced that the follow¬
was
representing the business, ill this
same well-tried procedure of dis¬
terms
Chairman
much
credit for
deserves
Purcell
ciation:
Bruce,
C.
Malcolm
California:
cisco.
cussion and conference.
;
"
.
'
.
■
when
■
Canadian: H. D. Leeming, A. E.
Ames &
Co., Limited, Toronto./
mick, Kebbon, McCormick &
Chicago.
Jr.,
Drexel
Philadelphia.
John,
L.
Robert
Minnesota:
Thrall West Company, Minneapo¬
with
the
sound
times,
should
factionalism
too
cease
of
neces¬
becoming
indus¬
war
ment
liberal
has
and
time
the
reduced
been
to
and
Commis¬
Federal
sentatives,
be mutually help¬
can
and
greatly promote the na¬
tional interest by this sort of ac¬
tion—the
of
National Association
maintain
a
close
tact with the day-to-day
con¬
tion—the National Association
of
ele¬
Andrew
Valley:
Mills, Newhard, Cook &
Louis.,
'
New
channels
could
be
element
divided
who
of
private
utilized.
But
finance
the
time
alone, involving the un¬
attention
should
be
executives
of
concentrating
on
work, precludes going through
the tedious routine now required
war
for
a
"It
registration statement.
is worthy
ing is the simple and streamlined
method,
the
while
investment
Boston
ROCKY
SOUTHWESTERN
TEXAS
MT.
fact, I meticulously refrained from
an
adjective qualifying the term
/organizers.'"
;
Ohio
Valley:
Bros.
Pacific
Milton
S.
As
matter of,
a
section of
voluntary as¬
sociation and it represents all ele¬
in
the
industry;
cross
a
securities
so-called
viz.,
underwriters and
dealers in corporate and municL
pal issues, over-the-counter deal¬
ers in primary and secondary dis¬
Though in
member
a
few
a
be engaged
of the functions above
may
of any two or more of such
.
strated-
a
marked degree of sol¬
idarity among ourselves, there is
hope for the whole industry. I
believe we are doing this now but
I
Rich¬
Gerald
'Mountain:
cooperation.
fact, the IBA is a
the business; it is
Consequently ..if
we
really stand together and demon--
Trost,
Seth
and
functions.
Boyce, Louisville.
Northwest:
good example in this ten¬
toward unity of purpose
a
dency
tion
Corporation,
also
am
much
ards, Richards & Blum, Inc., Spo¬
kane.
'//'
Rocky
.
&
the
and
listed, the business of the major¬
ity of our members is a combina¬
Fahey, Clark & Co., Cleveland.
Stein
IBA
"It is in line with the history of
set
in only one
T.
Yprk: Fi'ank M. Stanton*
First
\
the
about
the IBA that it should continue to
cases
Boston.
New
/ v/?
point,
vestment trusts.
CHAIRMEN
GROUP
Walker, Jr., Ho.rnbl.ower & Weeks,
The
'
Part IIthis
at
comment
ments
of comment that
Government's way of financ¬
the
"Now,
tribution, stock exchange houses,
banks, government dealers and in¬
] :'y
Joseph
England:
ural result;
business of its member firms.
S.
Co., St.
< ■.
This, to my mind, is a nat¬
for we are all brought,
closer together by an unselfish de¬
sire for national; unity and by an
appreciation and respect for our;
common
sacrifices, gladly made,
to help win the war.
/
ness.;
i/Z'h/;":'■/■/.
some¬
lis.
Mississippi
change Commission that there is
very fundamental mutuality of
purpose between them and the or¬
ganizations representing this busi¬
dustry would save substantial in¬
charges, if
practical
problems of the business and of
enforcement, and their organiza¬
a
I should
like to turn from the general to,
the
particular and make brief,
the.
"State
war
thing like two weeks. There are
doubtless
many
instances
con-1
stantly occurring where the nation
would be better served, and in¬
try should unite to win the war.
sioners, together with our repre¬
the
events,
a
The machinery is simple, the
and when Government and indus¬
missioners
,
Charles A. Pareells,
Pareells & Co., Detroit.
Michigan:
Charles A.
line
in
has
unified industry
and has promoted a realization on
the part of the State
Commis-;
sioners and the Securities and Ex-i
terest cost and service
ful
Edward
& Co.,
Pennsylvania:
Hopkinson,
Co.,
'
■"
■■■
Eastern
policy,
thoroughly
this
initiating
now
all
brought closer
of the main vehicles of Gov¬
one
'■
"At
national wartime policy
of
eliminating the
bottlenecks.
Witness the streamlining of the
sioners, and with the Associations
ing chairmen had been elected by
the regional groups of the Asso¬
ties.
a
of the
Bankers
shackles
the
from
the issuance of new securi¬
upon
be
will
public
when
"All citizens realize the
sity of
and
Securities
the
now
Exchange
the
companies with listed
date and
shares, be exempted from filing a
detailed
registration
statement
look forward to a
can
when
Association,
Conference
War
the
Investment
it
"And
'
stream¬
to
quickly forged in times of pentup
controversy and
misunder¬
standing. : !
'•
11
Industry
;
,
method of
One
/
deal with the less scrupulous, may
<
be
Investment
Act.
I
circumstances,
legitimate
business, believing in an adequate
and well trained police force to
Chair¬
Group
these
we
future
Chairman
the
and simplified
the intent of
speeded
sacrificing
breadth
a
contribution.
significant
Jr.,
James, Stayart & Davis, Inc., Dal¬
bers..
Announced For 1942-43
,with
is invited —Northern-Ohio :-Leslie_J. Eahey,
"
word
Judson
without
New York.
to the fact that I neither
"organizers'
C.
H.
George
be
could
to our
;
many
are
in which the SEC procedure
ways
the
measure up
we
'
there
believe
of lining procedure for the duration
vision and a consciousness of our might well be that:
Companies
public responsibilities, we too can with previous registration state¬
bring to the conference table a ments which,have been kept up
Essential To Nation
Central States: D. Dean McCor-
'As far
-
the
IBA Group
If
obligations,
(Continued from page 1521)
cation of expense for our mem¬
Conrad, Bruce & Co., San Fran¬
(1)
of view.
Atlanta.
demand, it is stated.
luncheon
a
Morris, The
Humphrey
Company,
-
"We
associations in our
have
also
entangled in much
imposed red tape.
practical
approach and the national point
industry
Roosevelt asking
ministration, the Admiral on Oct.
all
Robinson
these
on
We of the IBA and the
other national
\
Southern: Joseph L.
it
organizers,
marks attributed to Admiral Land,
who is is Chairman of the U. S.
"
Texas:
Contending that the Admiral's
had to do with "union"
remarks
saying that speed in construc¬
tion
has been
possible, due to
as
for
mond.
national outlook
a
subjects.
Rich¬
& Stringfellow,
Scott
son,
those under
New York
as
Southeastern: Walter S. Robert¬
Scott Land was a speaker before
construction.
"Journal of Com¬
merce" of Oct. 20 he was quoted
and
the
Tnc., Denver
sen,
/
1
bankers' way is
Securities Commissioners
ideal
the
P.
that
sure
need to do
we
Progress toward this
the advantage of both
more.
is
to
and
country
bankers.
Only
the
in
investment
this
best
investors,
its
and the business
a
serve
members
own
as
will
way
this Association continue to
whole.
"As individual members of this
OUR
TRADING
DEPARTMENT
SPECIALIZES
Association,
IN/"'
times
NORTHWEST
MUNICIPAL & CORPORATE
ISSUES
Gerald
P.
J.
Peters
S.
James,
George
Jr.
we
differ
may
policy.
on
We
at
fre¬
may
quently disagree on method or the
handling of certain details, but
H. C. Green
surely
have
we
learned
by
now
the value of
a
J. M. Dain 8c
Gompaaty
working together on
front (in line with the
common
preponderant views of
our
mem¬
bers).: The aim of the Association
RAND
TOWER
is to have the functions of invest¬
Stanley Gates & Co.
Minneapolis
State and
ment
the
Municipal Bonds
Bank Building
on
work- of
paid
staff
of
the
serving
on
and
devoted
the
Association
work
of
by
a
some
large
volunteers
committees
from the
membership.
the
under
by
traditionally conducted
relatively small budget, by a
number
WISCONSIN
and
attainable.
been
a
small
Saint Paul, Minn.
performed
conditions
methods
"The
has
First National
banking
best
best
In
drafted
one year
of these
com-.
Stocks and Bonds
Municipal
Piper, Jaffray & Hopwood
Bonds
STOCKS—BONDS—GRAIN
COMMERCIAL PAPER
225 E. Mason Street
I
Bell
MILWAUKEE
Milwaukee
York
Stock
Exchange
and
other
principal Exchanges
COMPANY
Daly 5392
55
..
ALLISON-WILLIAMS
Members
New
Telephone
Teletype
Minneapolis
Chicago Phone State 0933
St. Paul
Northwestern Bank Building
MINNEAPOLIS
i
"*
f
4
*
*
H m
ttmvi
;*c *
'{
t,
Volume1 156
-mittees is
r
Number1 4120
in the
THE COMMERCIAL &
bonds to finance the war, I would
be inclined to put it this, way:
foreground, and
at other times that of others.
t.
"One of those
'
have
whose
redirected
been
activities
and
"The War Bond and Stcirhp cam¬
whose
paign, which is continuous, is
un¬
objectives have been greatly mod¬
ified due to the war, is the Public
der
Information Committee. Two years
of labor had built
up an effective
Graves, Assistant to the Secretary
panel of speakers (probably from
.
designed to make available to the
the direction of
which
WSS, of
Honorable
the
the
Harold
"In
order
to
business who
of
their
FINANCIAL CHRONICLE
have
time
this
in
men
give generously
can
to
selling Govern¬
bonds, it is, of course, in¬
dispensable that their firms have
ment
sufficient
a
income
from
their
rience to
our
share, however in¬ the opportunity to express them¬
conspicuous, in the colossal task selves concerning it.
financing the enormous cost of
"Some, contend that'a constitu¬
of
t
modern warfare.
"The
.
about
800-1,000 men) who were
prepared to tell the public
of the importance of investment
banking in a free enterprise econ-
•
of the
,
Government
.
well
•
t
::
Immediately
omy.
the declara-
on
tion of war, we notified all of, our
■17 groups throughout the country
that our speaking programs would
<
t
,
~t.
thereafter be devoted to the
pro-
motion
This
and
.once
i-
;
of
bond
war
large body of
in
sales.;
responded
men
at
localities gave
many
experienced assistance to the ad-
ministrators of the War* Savings
Staff.
In several
large cities they
were called upon for the difficult
job of organizing and educating
the large number of team and dis¬
trict
workers
house
the
on
canvassing
March,
In
•
know, the Board of
as you
Governors
house-to-
campaigns.
voted
that
for the
re¬
It is
Treasury, is the head.
ralled.
and
large,
as
income
current
The
Ten
..
be
Cent
Per
cor¬
Clubs
pay-roll alotment plans look
toward that end.
.
portion of
a
can
as
the
other
funds of
ter.
quite
a
different charac¬
Among them
tioned
the
Committees,
are seeking
hand,
cash
be
may
of
balances
expenses
.
efforts
our
Part III
"This
ther
brings
reference
to
It demands of
other
fiduciaries.
"With
efforts
been
a
to
all
of
in war financing, it has
privilege to work with the
officials of the Treasury.
I
speaking for
am
our
I know
colleagues
my
/
fur¬
with
Treasury—since
last December, the keynote of the
policies of this administration of
•
the IBA.
"When
the
reached
news
us
of
'
the
Japanese
telegram
and
f
/
attack
officers
your
Hawaii,
on
acted
at
once.
A
sent to the President
was
letter
a
containing our reso¬
lution of Dec, 5, was delivered to
the Secretary of the Treasury.
I
"In January, at the request of
the Treasury, those representing
the securities industry were in¬
vited
to
Washington to confer
with the War
Savings Staff.
I
have already mentioned the or¬
ganizations
included,
viz.,
the
NASD, the NYSE, the ASEF, the
Government Security Group, and
the
IBA.
senting
individuals
The
repre¬
these
organizations, re¬
spectively, were Messrs. Dewar,
Fulton, Schram, Burns, Dominic
Rich and myself.
The first step
!
to set
was
State committees representing
up
•
asked to take
we were
the united
industry, to collaborate
;
with the'State Administrators
•
the War
...
their
by
accepting
We
about
demands
income
must
/
"Experience
■''/■.
■■■•
of
outgo. ^.v-.'./r.
recent
to
win
the
of
Savings Staff; and at the
same
time Mr. T. J. Bryce of
Clark Dodge & Co.,1 New York,
was appointed by the Treasury as
ties
industry,
with
offices
in
Washington. This initial ground¬
of the National
the
titanic
of
<
*
coun¬
Harmful To
tions,
ordinary
operations
and
"•
their
\V.
:
pro
or
the
matter
ing
revenue
upon
know
we
that
^
buying
selling
war
conditions, and it begins to
continue
that
appear
balance
under
even
be
able
it
the
our
may
which
presently1 at
to
war
own
not
December
—
our
'With
We
have reached and passed the low
instance
point
in. earnings,
states
have
successfully/ withstood
be
may
justly
proud
that
thousands of the partners, execu¬
tives and salesmen of the firms
in
the
securities
and
ployed,
consolation, bear in mind that
avenue
.many
country has had
millions
greater
hundreds
of
of
Government
obligations to
corporations, trust funds and in¬
dividuals.
■v
"As
shall
for
not
"This
into
the
the
"We have
itself, I
indulge in prophecies. >
is
time
no
far
to
be
looking
future;
it is enough
that we devote our
energies and
attention to meeting the problems
which arise from day to
"This is no time to be
day.
thinking
of
business; in
great
as
this
or
even
and
dis¬
investment
We have
an
banking business.
essential role to play
—requiring, energy, resourceful¬
ness, and of all things, much pa¬
tience.
"We
We
are
proud of this business.
proud
are
our
our
of
the people in
Already many of
association.
associates
have
groundwork
volunteered
making profits out of the war.
We must
join in the sacrifices
Those of
em¬
for
our
If that is so,
clear
it is
admission
but
that -the
by government and en¬
croachments upon sound govern¬
mental
an
principles without consent
of the people."
'
"
The other members, whose
sig¬
natures
were
affixed to the report
besides
Chairman
Fred M.
Ackley, George K. Baum,
con¬
Webster,
were
Edward
pal home rule may, in progressive
steps, be circumvented and de¬
Cunningham, Bruce H. DeSwarte.
"A
change in
ernment
as
V:; 7
of
tempted by
a
.
any
character
a
should
be
not
other
method
ford the people
opportunity to
and
give
of
our
•
The
would
af¬
country the
the effect
measure
consideration
phases of the change,
at¬
than
means
constitutional amendment.
constitutional
of
form of gov¬
our
drastic
so
proposed
"
-r
as
to
well
all
as
D.
Boyd,
Jr.,
Samuel
K.
Ripley Gage, George C. Han¬
nahs, John G. Heimerdinger, Bert
H.
Horning, W. C. Knickerbocker,
Pat
G.
Morris,
Frank H.
B.
Morrison,
Malcolm S. Prosser, Leo L.
man,
Quist,
O.
A.
Morse, Russell J. Older-
Jones
B.
Shannon, Robert
Shepard, F. Kenneth Stephen¬
son,
Robert A. Warren, Harry H.
White,
Elmer
L.
Williams
and
Paul E. Youmans.
armed forces of the United States.
which all must make fur the
.
were
would
stitutional foundation for munici¬
to have faith
reason
the
through which
stroyed.'
y/
ourselves and in the future of
the
business
another
readjustments
placements to meet.
in
Part IV
impact of
a
it
power
governmental
lay, by the method
only
subject
states
dences abroad of the serious re¬
sults of the gradual assumption of
in. this
of the
expense
their
the
the
the proposal/would not be in fav¬
or
of it.
There are ample evi¬
units, it would be seriously unfor¬
If it is
by; month,
these
the
war.
from the
any
and
the
and
tunate to
shock
greatest
government,
at
arising'
successively,
selling
we
central
strain
industry have
given, and are giving, generously
of their time and specialized ex¬
perience in such matters and are
month
that
the
on
con¬
constitutional
a
people, once
they understand the full import of
protect
report of last
thoughts
fo-
if
to
evidence
dual
we
not
tax
years.
those, too, who
not be ratified.
well as others.
as
9y2
to
enacted ih stat¬
the next several
that
submitted
very
our
was
in
proposal
were
are
amendment
principles of free government,
"As stated in
to
budgets—perhaps
we
our
the
form of government is based.
are
"There
the subject
beyond rais¬
reaches
21st,
states
would,"r as ' a
matter, collect very lit¬
tle during
tend
conten¬
the
the
the
Government
practical
■
being too optimistic to be¬
lieve that, eliminating taxes, we
we
is
which
utory form at this time, the Fed¬
eral
for the Federal Gov¬
foundation
"Today
amend¬
constitution
amendment,
future issues
on
far
readjustment
overhead would be required.
:V'
con,
goes
It
and
the
been
If
governmental
;■
"Whatever may be the
ernment.
personnel
disturbing and
are
greatly curtailed and that drastic
in
of
our
by
iraioipals
detrimental to. the financial opera¬
tions and other interests of the
we yet speak with
We did know then that
be
21
states
to
months.
(Continued from page 1526)
Further, they
certainty.
would
ratification
the
ments
ratified
units.
can
The average
by
-
last
states
nor
of
adopted
is approxi*mately 1 year, 4% months.
The
permanent and
was
rdquire
matter
a
tention is fallacious.'
have
But 10 months ago
did not know what might
hap¬
try and that it
would
In
time required for the
struggle for
way of life
the
-
cherish."
we
mon
good
tion of
and for
ideals.
our
the
com¬
preserva¬
and
are
have
us
of
hard
spectacular,. and
individual
ment of
organizations, however
much contracted and
limited
money,
scale—if
we
whatever
on
do
we
for
cannot
money.
make
long
,
"
lose
<'
it
on
without
will
of
the
.
will -be
the
duty
is
done.
We
business
as
un¬
Investment Department
.accom¬
accompani¬
trumpets and drums.
be
"the
part of
tour
Our mission
us.
"We must, however, continue to
exist.
In the maintenance of our
plished
with
who are left at home
long,
a
ahead
serving
now
shall
I-
But
The First National Bank
carry
an': essential
patriotic duty; we shall
give much of our time and expe¬
our
of Saint Paul
CROUP CHAIRMEN
-
necessitated
to¬
cured upon additional revenue for
its liaison officer with the securi¬
work
this
survival
time.
importance the time required
certainly should not be a govern¬
ing factor. In any event, the con¬
as a United people, exert¬
ing the maximum national effort
months
and
accomplishments; we
disposition to boast about
no
work
we
amendment
much
this
gether
\■:
to
offers
and all
us
meet
indestructible.
we
that
continued existence
a
that
,
complacent
our
not
are
our
citizens
too
para¬
performing services by
their
organizations
may
survive. For
pen;
; ;
reference
other
is
recognize the immensity
of the job that must be done. But
work
our
the United States
transactions
the business economy of the
individuals, large and
small, and the uninvested funds
of insurance companies/trust com¬
panies, savings institutions and
them;
make
to
me
'
-
their
ances'of
have
financing.
war
v
might
promote
we
to
originating
of
brings us some comfort. We have
always thought that our industry
performed a necessary service in
cor¬
serve.
the
salesmen
.
portion
porations,, the considerable residue
of savings in the commercial bal¬
fraying
in
in
and
major
a
in
and
when I say we have been honored
incur
.
time
men¬
mainder of the year, the funds of
the PIC should be devoted to de¬
;
that... executives
spend
which
-
"The Victory Fund
on
business to meet their
overhead.: It is therefore a patri¬
otic/duty' of the first magnitude
tional
national interest
mount.
•
ordinary
"1533
U. S. Government and
Eastern Pennsylvania
Canada
Western
formation
Municipal Bonds
Pennsylvania
Committee of the
Securities
Industry for War Fi¬
nancing, whose members are the
individuals
This
to.
have
I
just
referred
committee.'has
at
all
times been available to the Treas¬
Northwestern
ury
for
special
contact
work
throughout the country with the
member
firms
of
Municipals
constituent
the
national
organizations represented.
machinery was estab¬
lished for a national coverage and
was ready to function when called
Thus
/
the
upon
by
Mr.
Morgenthau
to
Wells-Dickey Company
go
to work on the Certificates of In¬
Tax 2V2%
"More
v
I' of
the
Metropolitan Bldg.
issue of May.
recently, at the. request
Secretary, we have also
in the formation of
the
Victory
Fund
Committees,
where we have joined forces with
participated
all
commercial
the
the
of
Established
banks.
district .VFC's
12
ST,
Edw.
Hopkinson,
H.
Jr.
D.
S.
Leeming
K.
Federal
its
Bank
manager
is
a
Woodard Elwood & Co.
..
taken from the ranks of the
man
securities
industry.
coordinated
ally
districts
is
work
under
of Mr. George
!>
The
the
V
'
•
'
'
Members
f
Minneapolis-St.
all
C. S. Ashmun Company
-
Paul
Stock
Exchange
nation¬
of
DULUTH
Each
has
Reserve
executive
its
and
MINNEAPOLIS, MINN.
PAUL
Cunningham
'chairman the president of the re-
j; ,spective
1878
of April and the first
debtedness
INVESTMENT SECURITIES
12
direction
INVESTMENT
SECURITIES
Buffington, Assist-
ant to the Secretary of the Treas-
■
ury,
in Washington.
"If
I
define
set
up
might
the
for
be
so
bold
as
to
promotional activities
selling
Government
RAND TOWER
MINNEAPOLIS
1212
FIRST
NATIONAL-SOO
LINE
BUILDING
-MINNEAPOLIS, MINN.
'
without
Galls Banks Essential
dentedly
To
in
dislocation
any
the
financial markets and at unprece-
Financing Of War
(Continued from page 1525)
first World War were precedent-
low
of interest—
rates
ourselves,
delude
not
do
contribution
however, that the financing of a
total war can be merely a money
taxes
make
can
successful financing of the
to the
Successful
war.
averaging about 1%%.
We
however, constitute the whole of
the
finance
war
re-*
fairly stable prices, and
wise fiscal policy will help main-*
tain them. But this is not enough.
quires
in their time. In that market operation. Total war re¬ Other measures must also be em¬
moved the decimal point quires total effort and total sacri¬ ployed if we are to have price
over a
full place compared with
fice, and the financial front can stability.
You are all aware of the great
anything which had
happened be no exception. We must recog¬
previously. It was then that the nize that when our problems are forward steps which have been
breaking
war, we
"billion"
term
became
a
part of
the common language.
have again en¬
magnitudes.
la the
In this war, we
tered
new
mobilization of
war.
armed
forces
the
of
index
amount
The
fort.
required
many
are
per
inadequate
an
size of
ef¬
equipment
our
of
war
has multiplied
It has been aptly
man
times over.
the last war
stated that while in
problem was "to equip the
men," the problem now is "to man
the equipment"—and before that
the
produce it. Naturally, the need
ever-increasing
amounts of
to
tiplied the financial problems
this
of
war.
first
the
In
fiscal' year
of the
total Government ex¬
penditures amounted to about $14
billions.
In
the
current fiscal
last
w^r,
expenditures are likely
our
year,
great.
months ended
be six times
to
In
the
12
as
June
30, 1918, the Government collected
roughly $4 billions in taxes. In the
12 months ending next June- 30,
receipts from taxes are expected
to
be
more
than
five
times
as
great, totaling about $21 billions.
And here is another comparison
that
highlights the greater dimen¬
our war-financing job to¬
sions of
day. During the first World War,
our
war expenditures
in the fis¬
cal
year 1918 absorbed less than
one-quarter of the total national
production. But in the present
fiscal year, our war
activities are
abgorb almost half
total production.
estimated
of
our
The
to
which
amounts
have
al¬
ready been raised and spent since
the commencement of the defense
program
that
we
These
amount—all
spent during the last war.
exceed
amounts
in
have
already mentioned that
going to take up
almost half of our total produc¬
tion in this fiscal year. This means
that we shall have to live on the
activities
are
during, the
Con-i
by the President and
gress
direction
the
price
our
pointment
Stabiliza-i
tion has given us "all a new
war
confix
will be fought
final victory without
serious disturbance of the present
through to
in
our
gross
add no
additional to that which
burden
can
and
will
already contracted for.
Wise finance can and will make
have
we
the
bear, how¬
burden
easier to
by
distributing
ever,
it
more
equitably.
Taxation must form the founda¬
tion
for
either
now
of
program
any
finance—for it is only by
or
in
the
war
taxation,
post-war
period, that the burden of the war
can be finally distributed.
Much progress
has already been
consumers' goods and
present price level,
of
supply
goods.
war
Finance
services at the
it
will
To
more
necessary
to
extensive rationing.
such
equitable dist¬
primary purpose
rationing. We should not lose
secure
ribution
of
be
doubtless
resort to
an
the
is
however, of the fact that
rationing is also a powerful irn
sight,
strument of
war
finance. What we
cannot
spend, we must save. Thus
rationing is really "compulsory
saving," and it may be on a vast
scale.
.
But
even
with rationing over a
Revenue-raising alone does not,
area,
be reduced?
must
This
is
what
rather
judgment on the
proposed tax at that time. I be¬
lieve that it is the kind of thing
a
hasty
which looks better and better the
Since
consider it, and I ask
to mull it over in your own
more
you
you
minds.
All
of
must
Wyeth
tne
ANGELES
&
STOCK
Co.
cerned
do
investment
As
you
are
directly
with
the
Government's
con¬
policies; and I shall
therefore lay my principal em¬
phasis tonight upon borrowing,
although I would remind you that
borrowing is only one facet of our
wartime financing problem. Ra¬
tioning and direct controls may
make borrowing easier, but they
do not
San
Beverly Hills
we
borrowing
EXCHANGE
Los Angeles
Pasadena
which
money
by current taxation, we
borrow.
bankers
647 SOUTH SPRING STREET
York
War
and
growing better; we confidently
expect to sell at least $12 billion
worth, and perhaps more, of War
Savings Bonds during this fiscal
year.
Even
more
encouraging
than the sales figures is the fact
Savings
that
Bonds
good
are
than 20 million workers
more
10%
their pay
uary.
by the first of Jan-
The
Treasury, as you well know,
has not overlooked other possible
Diego
or
eliminate the
need for
it
reduce its amount.
One of the best
rowed funds
vestors,
to
believe that
we
contribution
cant
has
non-inflationary
The
Tax
war
Savings
signifi¬
a
made
been
financing.
is de¬
Note
signed not only to make available
to
the
Government money
due
from taxpayers
during the period
in which the tax
liability actually
its
own
should
a
to finance a large share Of *
fact, a share of
deficit—in
unprecedented magnitude. In the
months—perhaps years—to come,
it is important that the banks pre¬
serve a maximum of liquidity.
To
so, we have
securities sold to
that
cided
The
the
is, of
widespread distribution of this
type of security. The Federal Re¬
serve System has posted a buying
rate of this amount so, that any
the
holder of bills knows that he can
convert them into cash at any
and
specified
this
at
issue,
For all practical
reserves.
excess
purposes, excess reserves can now
bills with¬
liquidity.'^ As a re¬
be invested in Treasury
out sacrificing
sult,
have been able to in¬
steadily the amount of bills
we
crease
outstanding so that today more
than 2Y2 times as much is out¬
standing in bills as on Dec. 7,
In addition to this
in
bills,
use
of another short-term security
of indebtedness.
-—the certificate
Beginning
have
we
large increase
have also revived the
we
in April of this, year,
thus
far
sold
four
500,000,000 each.
Together with
bills, the certificates provide a
large supply of short-term paper,
thus add
and
a
large measure of
before the books closed. I believe
liquidity to the banking system.
Incidentally, it should be remem¬
bered that this liquidity is going
to be a very welcome offset to
that in the future we shall make
declining capital ration, and will
enough time for many inves¬
to
tors
place
arrangements
subscriptions
their
the
keep
to
sub¬
books open longer, at
least for nonbanking investors,, so
that the Victory Fund Committees
scription
have
will
make it easier for banks to
themselves to the need of
adjust
shifting
deposits
area,
-
their
time to do
more
process
This
banks
cial
in
financing pro¬
our
I have tried to emphasize
it is our firm belief in the
gram.
that
Treasury that we should borrow
from commercial banks only on a
residual basis—that is, to resort to
effort
every
the
finance
.7
the
of
over
on
one-year
continued
over
10 years.
interest
This
means
rate
of
Treasury bonds sold
to
mercial banks.
It may seem at times, that banks
for
being discriminated against in
being permitted to subscribe
bear
longer-term securities which
higher interest rates than
2.-/0; but this is not the
money
case.
.
BELL, DN
6281
290
Colorado Springs
and Loveland, Colo.
Earl M. Scanlan & Co.
Securities
Corporation
and
Municipal
Bonds
DENVER
of
650 South Spring Street
ARIZONA
ANGELES
COLORADO
NEVADA
UTAH
f
I..-
I
J.
COLORADO
SECURITIES
Dealers in
LOS
The
to
nor
the sale
SECURITIES
Street
2%
corh-
activate old Government would certainly be
money.
Non-inflationary financ¬ doing the banks no favor if it
ing
requires
that
we
draw permitted them to load themselves
in money that would otherwise with long-term issues.
You may
new
INVESTMENT
Wall
to
banks
maximum
a
not
to
a
con¬
Treasury notes,
Treasury bonds with a term
of not
to
able—neither
are
we
and
other
far as
create
made
from
We desire—in so
sources.
offer
are
been
has
deficit
likely to
maturity, we! have
only after
commercial banks
the
to
area
seems
securities
In
brings us to a considera¬
place of the commer¬
from
that
tinue..,.-^.'';
work;-'
Mitchum, Tully & Co.
NEW YORK
cer¬
tificate issues, approximating $1,-
DENVER, COLO.
One
time
This
rate.
of bor¬
sources
course,
promote
rate that is designed to
a
aided in the more effective use of
unavailable to
commercial banks for a period of
ten years, is designed to attract
"tap"
PETERS, WRITER &
CHRISTENSEN, INC.
de¬
source
wartime restrictions.
1
SAN FRANCISCO
it is
that
here
noted
be
spending rather than bor¬
rowing which creates the infla¬
tionary effect.
We
must
recognize that the
commercial banks will be called
total
arrangement has served to increase
of
investment for liquid funds greatly the flexibility of bills in
that have been immobilized
by the money market and has also
but to provide
accrues,
MAIN
405 Montgomery Street
a
producing by
spending program. And it
price rise it may be
''' Vv'V; help them to do
"v
.
can
to
tendency
whatever
check
the
million workers and at least
Government
that, the
way
upon
every pay
pay
in
spent
goods.
It
drawing in money
of 8% of their
day for War Bonds. Our goal is
to; make these figures at least 30
of
buying con¬
is only by
that would
otherwise have been spent in this
been
have
sumers'
already setting aside an aver¬
tion of the
not raise
New
of
sale
the
excess
Morgenthau proposed
last month with the spendings tax.
I think that many people passed
LOS
of
purchas* funds from investors who wel¬
made in the field of taxation. Our ing power is likely to result in come the
opportunity to secure a
total revenue, giving effect to the extreme pressure, menacing any
long-term investment at an at¬
passage of the tax bill now in system of price regulation.
tractive rate.
i'
conference between the House of
It would be possible to control
In the October offering of $4
this pressure of excess purchasing
Representatives and the Senate,
billion, the books were open for
will aggregate about $21 billions power by an
instrument which
only two days, and we obtained
this fiscal year. This is
nearly stands midway between direct
something like 25% of total sub¬
four
times
our
revenue
in the controls such as rationing and the
scriptions from investors other
fiscal year 1940, but only about traditional
forms
of
taxation.
than commercial banks. Frankly,
one-fourth of our expenditures in Spending must be reduced dras¬
we had hoped to do better, and it
this fiscal year. Measured against tically if the prospective supply
is probable that the
proportion
the standard of past achievements, of consumers'
goods is to "go would have been increased if the
it is magnificent; measured against around" at the present price level.
subscription books had been open
the standards
of present needs, What could be more reasonable,
longer. There was a considerable
however, it is plainly inadequate. therefore, than a progressive tax
delay in the delivery of many of
We shall need substantial levies that would give an incentive to
the printed circulars, and it seems
beyond those contained in-the saving and put a penalty upon
clear now that there really was
spending—the
very
thing that not
present bill.
broad
very
Secretary
MEMBER
results
The
age
Economic
dence that the
energy
portant part of our war financing.
The ap¬
Byrnes as
Justice
of
in this room has
time
and
thought
and
to help in this very im¬
given
are
structure.
of
Director
id
that every man
stabilization
the
of
month
past
Bonds. I imagine
War Savings
of
product.
banks
should have
a
range
of
•. 1
We made the decision to do this price level.
running
from
three
You all know that incomes are sources of funds from outside the maturities
when Congress passed the appro¬
banking system. In the sale of the months, in the case of Treasury
priations for war purposes and rising, while the supply of con+
sumers'
goods
and
services is Tax Savings Note, the long-term bills, to 10 years, in the case of
when the whole country resolved
Interest rates on
that as large a proportion as pos¬ shrinking. In order to secure a "tap" issues and other Govern¬ Treasury bonds.
fair distribution of the available ment securities to non-banking in¬ bills have been fixed at % of 1%,
sible of our total output should bC
of
half
other
raised
been
have
I
war
taken
of
cedures.
for
equipment has tremendously mul¬
amount,
they also become different in kind
and must be met by new pro¬
alone, we are
men
the figures of the last
Even so, the numbers of the
doubling
in
tenfold
multiplied
Thursday, October 29, 1942
CHRONICLE
THE COMMERCIAL & FINANCIAL
1534
MONTANA
NEW MEXICO
WYOMING
Volume
156
Number 4120
recall that the report
nomic
Policy
THE COMMERCIAL & FINANCIAL CHRONICLE
of the Eco¬
Commission
of the
they
Credit Of Railroads
Association, is¬
April, concluded- that se¬
sued last
curities
limited
sold
to
should
to, banks
10-year maturity.
I
will agree that a
banking system trying to
think all of you
frozen
become unfrozen after the war by
selling long-term Government se¬
curities
might create
ation.
It
bad situ¬
a
v'J,
should
also
be
noted
that
a
aviation, recently gave to the
Chairman
reasonable
seems
terest
•In
rate
this
in¬
securities financed
on
should be kept
maximum of 2%—re¬
a
gardless
the
of
maturities
volved—because
curred
the
by
direct
and in
the
manner
.down to
loans
that
the
in
banks
the
to
in¬
in¬
costs
making
Government,
handling the increased de¬
posits resulting from these loans,
small.
are
Furthermore, from the
point of view of the cost of financ¬
ing the
be
interest rates should
war,
kept .as low
with
the
the
war
is
as
objective
much
as
compatible
of
financing
possible out¬
as
side of commercial banks.
I
think
you
will have
that
our
financing
now
has
taken
on
considered
this
clear
a
program
and
pattern.
well-
Naturally,
constitutes
program
by
seen
only
a
working framework of principles.
We
shall, of
endeavor to
course,
improve it and in doing
make further
of securities
so
may
changes in the types
offered, especially to
I have no doubt that
(>
all
with the
agree
THE
RAILROADS?"
taching
great deal
a
in
interested
securities
to
you
will
of
We all
more re¬
possible from out-
•side the commercial banking sysTo the
we
extent, however, that
must resort to the commercial
banks, it is imperative that inter¬
est
be
rates
levels
and
kept
that the maximum
of
continue to have
basic
v
steel
industry)
The
success
depends
financing
our war
attaining these ob¬
upon
jectives.
-had
of
We at the Treasury have
and
evidence
that
security
abundant
banking
industry
v?
the
knows full well what is at stake.
We know that
we
count upon your
,v
can
periods of boom
industries
<such
the
as
should fluctuate less than in many
fails
The outlook for
depends
of
course
•
on
business} conditions and
when, for example, the airlines
are enjoying prosperous times the
rails will probably also have good
general
business.
in previous reports we
have listed
various examples and in this brief
will not repeat them.
Mr. Fairman Dick, a member of
we
continue to
cooperation.
••'"We
want to call
now
cluded
certain
provisions in the
just passed which are of
great importance to the railroads
and
which
railroad
should
greatly
'
"1. A provision for the preser¬
vation of the old property basis of
railroads going through reorgani¬
This
zation.
termining
is
the
important in de¬
profits
excess
of improvement in
operation been as
Last as in the last ten years—Class
1 Railroads in 1929 had operating
of
earnings of $1,200,000,000.
able
been
cime
to
with
the
showed in
1941
If they
operate at that
efficiency
they
they would have
earned $2,400,000,000.
"Along
this
tal and in
measuring depreciation.
"2. A provision which prevents
railroad -from,
a
incurring
liability due to
tax
come
down of debt in
tions to
for
all
purchase their
at less than par
income
an
line,
Mr.
scale
tax
liability
bonds
represented
count.
The
the
by
law
new
the
on
dis¬
strikes
out
provision in the existing law
showing of financial
a
these
that
hoped and expected
provisions will be retained
our
the
ing
may
in
seem
There
the
but
that
but
spots
purpose.
rails
some¬
so
life of
essential
point
that
portant
sound
the
they
that
job.
kept
be
financial
and
wc
they
country it is most im¬
our
and
on
a
operating
private capital do
The
Government
now
recognizes the importance of the
'The
is
railroads
railroads
future
of
learning
guarantees the
industry.
We are
do
to
dreamed
that
our
for
getting
plant, out of
inventiveness, the in¬
and the resourcefulness
everyone
connected
business.
come
*
out of the
The
war
with
the
railroads
with the
respect and confidence of a.grate¬
.
.
.
will
defeat will restore freedom
In
the
con¬
his
address
at
all
the
peoples.'
In
adumbrated
United
both
the
for
to-keep
for
fi¬
public and private,
world, in which we
invaded allies—Rus¬
some
our
sia, China and the other European
and
Asiatic peoples—to
rebuild
their homelands.
the
world
readily
can
and
one
of
viding
the
the
world;
iation
bat
The
of
win
is
now,
as
task
to
pro¬
we
face:
we
shall and
the Committee were Ewing T.
Boles,
F.
J.
Campbell,
Paul
G.
Courtney, Pierpont V. Davis, Fairman
R.
ert ' G.
Dick, Allen N. Jones, Rob¬
Rowe,
and Henry S.
M. Stewart
Percy
organization
that
into
an
effective
com¬
Mr. Bengel
of
the
said that
in the
us
battle
against
impress
the bankers
on
the
upon
purchase of
bonds will
help keep down the tax burden.
He
to
the
urged
bankers
in their power
must,
do
to
with every asset, moral
flation that will ruin the country's
economic
and phys¬
which we possess; to win
without regard to cost, but with
concentration upon
military
their
effi¬
ciency and speed; to win by back¬
ing every part of the war effort,
all
the
Thereafter
time.
we
face
the
waste and
assure
and
safeguard
our
vic¬
tory for the ages, so that no na¬
tion may
be led into madness
again,
in
against
The
spoke
Pontiac
were:
Group
Country Club,
those who
use
the railroads.
Custer, Galesburg,
bent
Nine, Court House, Nashville, Oct.
and
on
plundering
conquering,
ruling
over
other
14;
nations.
Japan had prepared for this
Club,
Oct.
Group
Country
war
Providence has equipped
7;
Group
Ten,
Club,
Six,
Oct. 6;
Midland
SAN
:vi;'
)y<,''•••
Co.
NEW YORK
FRANCISCO
'M
';•
RUSS
25
BUILDING
Teletype
BROAD STREET
Teletype
SF 29
ny
1-2678
Brush, Slocumb & Co.
111 Sutter Street
Broadway
SAN FRANCISCO
OAKLAND
Private Wire to Paine, Webber, Jackson
& Curtis
Bateman, Eichler & Co.
Complete Investment Facilities
Investment Securities
45 3
SOUTH
LOS
Nelson Douglass &Co.
South Spring Street
:
NORTH
LOS
ANGELES
-
r
H
•
-
-t
t
t
T--
EQUITABLE
215
MEMBERS
I
Hollywood
*
.
GARFIELD
Los Angeles
--
STREET
ANGELES
Pasadena
2
510
SPRING
-*■
-
..
».A
'■
-
■>
H t
t. A JLi
ki
STOCK
a
,<
.
«
-
»'•' '
llLDG
EXCHANGE
•*
■
V
Hills
Oct.
13.'I/"MS-LA
.'Vv-.\V;,: T
Kaiser &
Hotel
Group
Carbondale,
And
BONDS
8;
Group Three, St. Charles Country
Japan has been led, and
no
exploiters can again organize
any nation into a marauding horde
State' and' *J/uioeif/at Sonde
service of a na¬
have perfected
machinery
for
cooperation
be¬
tween
those
who
operate
and
will
Two,
Oct.
as
They will have the
plant they have
They will have the best
trained personnel in railroad his¬
tory. They will have the most ef¬
fective
techniques ever devised
They
coun¬
meetings before which Mr.
efficient
tion.
a gov¬
dissipates the
resources.
Bengel
at
raise
to
protest
extravagance in
ernment that
try's
and
system;
voices
had.
for the transport
all
to prevent the in¬
people.
most
ever
that
public
war
ical,
for years.
Sturgis.
crucial
this
the
line
their
to
on
You are the
man
inflation in financing the war ef¬
means
the
of
regulation
fort," and he called
the world's goods and services.'
"This
of
biggest job finds
front
whereby the
of the world may obtain
people
is
force."
"our
power;
and
who
welds you
of
providing the mechanism whereby
what the world produces may be
fairly distributed among the na¬
tions
"You
of free
front—the Illinois Bankers Assoc¬
of distribu¬
purchasing
in
critical time when
a
measure
soldiers
pro¬
duce what mankind requires.
added,
system
Common good.
He said:
period are reached., is
primarily one of production.
the
home
the
personal freedom is necessary for
"'The problem which will con¬
front us when, the years of the
For
He
the
enterprise in
shall aid
this
5 Those serving with Mr. Loomis
war."
protect
the post-war
nance,
of
economic system
our
the
must
their financial soundness. We hope
viewpoint will continue after
guardians
high gear; to provide the resources
crea¬
Nations
"the
as
front," "yours is the responsibility
categorically, 'The age of im¬
perialism is ended.' In that same
of
Association,
organization, told the bankers that
Arlington Na¬
and
he
Group meetings
Henry G. Bengel, President of the
Day, oii May 30, the Under Sec¬
retary of State declared simply
task
recent
of the Illinois Bankers
tional Amphitheater on Memorial
tive
the
At
the
or
opportunity for freedom alike to
countries and
System Kept
High By Bankers
our
world-wide forces of ruthless
we' shall
and
Economic
our
in
destroy
decisive,
.
a
quest and brutal enslavement. Their
all
be
win."
a
On
,
cen¬
We have the resources, the
institutions and the character that
longer, not less difficult and
fortunately more rewarding task:
we
lating the
will
necessity
and locomotives is stimu¬
genuity
of
the
and
possible. And„ the war."
were
of
out
use
our cars
things
necessity
urgent
more
that
the
.
united
to
industrial
the
to
are
confront¬
want to stress is that because
are
wars.
are
tion
report
'bullish'
what
such
we
.
problem is rather
in the final bill.
"This
of
determination
not
is
"It
Railway
war
series
side
winning of it for
turies.
post-war
unsoundness.
Southern
System, said:
having an effect on
(Continued from page 1531)
nation against nation.
It is not
local or regional war or even
for the
us
Says Japan Fights
Against Own Welfare
address
corpora¬
own
without incurring
'profit'
the
in¬
an
a
reorganization.
Permission
"3.
basis
same
tax
invested capi¬
on
still plenty of problems
pace
help
V
credit.
has
had
attention
bill
tax
wasn't
efficiency
a
important pieces of legislation
that are pending.
The Senate in¬
this Committee, said in a recent
article:'Never in railroad history
the
of
make
to
requiring
"The great increase in the ef¬
ficiency of operation of the rail¬
roads is still not fully appreciated,
report
will
but their, earnings
industrial fields.
the
record
a
that
exemption based
prosperity and some periods
of depression just like many other
ful
'liquidity be preserved.
-
statement,
?
and
railroad
prevailing
at
;
"In the future the railroads will
the
•tem.
his
read
railroad
in
it speaks for itself.
deficit
as
(Appears elsewhere
We urge
issue.—Editor.)
everyone
never
far
at¬
are
complete
his
of
copy
report.
this
mains to be done in financing the
as
a
We
statement and making it a part of
the
realize that
a
on
Ernest E. Norris, President of the
objectives
financing policy.
war
our
Committee
the question: "WILL
AIRPLANE
SUPPLANT
THE
nonbanking investors, and in the
'.methods of offering them.
of ithis
statement
this
large part of the securities which
will be bought by bafiks will be
financed by increases in deposits
for the banking system as a whole.
It
Importance
(Continued from page 1529)
on
have
shining page in history.'
Of Prime
be
a
will
achievement
American Bankers
1535
'*
'"Ill
]»:, '*
7*
■'
JI—
/
THE COMMERCIAL &
1536
.
Post-Wai Outlook For Electric Utilities
A. Bailantine Heads
produced; it
increased operating efficiency, lower
higher operating-income ' before taxes.
%%,
assures
unit costs and
Here, then, is
(Continued from first page)
Greater N. Y. Fund
Thursday, October 29, 1942
FINANCIAL CHRONICLE
utilities
a
fast look at privately owned electric
after Pearl Harbor.
Never before
months
nine
During the 12 months ended with August, 1942, roughly
have they been so well equipped, from the standpoint of
Arthur Atwood Bailantine, for¬
152,500,0011,000 kilowatt-hours of electricity were consumed
mer Under-Secretary of the Treasr
in this country, or about a third more than in the August generating capacity and efficiency of operations, to serve
ury, has been elected President of
civilian consumers and to meet the maximum demands of
1939 year.
Of this increased consumption, nearly 75 %
the Greater New York Fund. Mr.
resulted from expanded industrial use.
Bailantine who has been a mem¬
Where industrial the war effort. Despite sharply increased Federal exac¬
ber of the executive committee of
demands accounted for 49.8% of power consumed in the tions, they currently are earning fixed charges and pre¬
the
ferred dividends, with some margin for equity shares.
Fund, succeeds Thomas S.
Col¬
August, 1939 year, they totaled 55.0'% in the Auugst',1942
Lamont, a Vice President of J. P.
lectively, they comprise one of the few major industries of
12 months.
Expressed in terms of kilowatt-hours, indus¬
Morgan & Co. Inc., who resigned
the nation which is not faced with a production shortage.
trial power use in the August, 1942 year was 47.1% greater
last summer to enter the Army
And they have not drained badly needed cash from the
as
a
Major.
The Greater New than three years earlier.
York Fund, through its broadly
Federal Treasury to expand production facilities.
But the ability of electric utilities to satisfy demands
organized annual campaigns,
The post-war status of electric utilities obviously is
raises money from business firms
of their consumers depends, in part, on their capacity to
not susceptible of accurate determination today.
We are
and employee groups for essential
generate power.
At the end of August, 1939, the installed in the thick of a
support of 400 voluntary welfare
global war, the duration of which is un¬
generating capacity of all agencies contributing to the public certain. We do not know the amount of wealth to be
and health agencies and hospitals,
serving the people of New York supply totaled 39,850,000 kilowatts, compared with 45,801,This represents an destroyed during it, the size of the Federal debt at its close,
City. The campaign of 1942, now 000 kw at the close of August, 1942.
the nature of the victory to be achieved, the terms of the
drawing to a close, has resulted, to increase of
almost 15%.
Moreover, the Federal Power
date, in contributions of $4,220,peace to be negotiated, or even the charactr of enterprise
Commission, on Sept. 29, placed the amount of net gener¬
000.
system under which we will operate in the post-war era.
ating capacity—additions, less retirements—to be added
Mr. Bailantine is a Vice Pres¬
Nevertheless, in the face of these unknown factors, it is not
ident of the United Hospital Fund,
during 1943 at 3,261,750 kilowatts.
It appears likely, then,
a member of the Planning
Com¬ that electric utilities will not want for generating capacity wholly preposterous to speculate now on the conditions
under which electric utilities will operate
in immediate
mittee of the Hospital Council of
for the duration.
<
.
trustee
post-war years, and the degree of prosperity they will enjoy.
generating capacity, however, is meaning¬
Despite optimistic forecasts by New Dealers and other
less, unless related to demand.
During August, 1939, the tender theorists, no reasonable foundation exists for assum¬
sum of all non-coincident peak demands upon the nation's
Harvard
ing that war-stimulated 1942 power demands of industrialCollege, a trustee of
Teachers' College, the New York power supply was 25,400,000
kilowatts, or 57% of the consumers—13% greater in the August, 1942 year than in
Life Insurance Co., The New York
capacity available to meet them.
During August, 1942, the 1941 calendar year, 64% greater than in 1939, and 95%
Trust Co. and the Bowery Savings
non-coincident peaks had risen by a third to 33,800,000
greater than in 1929—can be maintained in early post-war
Bank, as well as director of a
kilowatts, equivalent to 74% of installed capacity.
In years. To be sure, attempts will be made to maintain em¬
number of corporations.
other words, the impact of vastly expanded demands for
In accepting the Presidency of
ployment and national income at around present levels by
the Greater New York Fund, Mr.
power by industries serving the defense and war efforts vigorous tugging at political boot-straps.
The National Re¬
Bailantine said:
reduced reserve generating capacity from 43% to 26%
sources Planning Board now has a variety of public projects
Greater New York
and
a
Hospital for the
Treatment of Cancer and Allied
Diseases.
He is an Overseer of
of
"Under the conditions of today,
securing adequate support for vol¬
untary institutions for health and
welfare,
ficulty.
presents increased dif¬
At the same time the
work of these
vital
to
more
institutions, always
and well-
comfort
the
people of our city,
being of the
is
Volume
Memorial
needed
than
ever.
In
the services of these
institutions are part of the war
effort.
The object of the Fund be¬
comes that of bringing about the
widest understanding of this new
need and consolidating most ef¬
many
ways
fective ly
and
of
in three years.
iii blue-print form, ready to rush into construction at the first
During August, indication that hostilities are about to end. But most of
them will be "work" projects, designed to pick up slack in
1939, each of the 39,850,000 kw of capacity turned out, on
the average, "only 282 kilowatt-hours of power, or 38.8% employment after the war, and many will be undertaken
of the theoretical maximum of 730 kilowatt-hours which in thinly settled areas, far removed from industrial centers
each kw of capacity is able to produce in a month.
Dur¬ in which electric generating capacity has been expanded
But
that's
only
ing August of this year,
however, generation per kw aver¬
aged more than 355 kilowatt-hours, or
retical maximum.
Thus, due largely
moved from
a
one-shift to
a
two-shift,
the
clock,
boosted
electric
by 26%.
output
or a
three-shirt, oper¬
demands around
kw of capacity has been
per
serve
in
the
war
effort.
On the other
hand,
clearance and low-rent
some
of these projects involve slum
housing, which will tend to bolster
the
falling industrial power demands of electric systems
serving these areas. ? Then, too, not any major proportion
of plants producing materials of war will fold up, imme¬
Many of them have
use of plastics,
energy plywoods and similar basic materials during the war, and
we confidently may expect the adaption of these less costly
materials to the production of automobile bodies, appliance
cabinets, furniture and a host of consumer goods, long de¬
sired but beyond the reach of low-income families, once in¬
But the effect of wider utilization of
generation facilities is greater than mere increase
defense.""
to
48.7% of the theo¬
to industry having
ating schedule—of having spread its power
extensively—public
support for this phase of national
of the story.
part
diately
learned
dustrial
upon
cessation of hostilities.
much
the
about
facilities
are
equipment of war.
ation before the
war
production and
free
from
the
need
of
producing
And, naturally, those plants in oper¬
will revert,
as soon as
re-tooling
can
accomplished, to pre-war production and activities.
But there is a fly in this ointment.
Due to enormous
increases in war-time capacities, we will have vast poten¬
be
tial
outputs
of aluminum,
steel,
iron, copper
and zinc,
along with their alloys, together with plastics, plywoods and
synthetic rubber, to compete with one another in post-war
And should one of these basic materials enjoy in¬
use in industry or the arts, it doubtless will be at
the expense of another.
For that reason, although pent-up
purchasing power unquestionably will stimulate production
cf all the things the average man considers vital to happy
living—things whose purchase have been denied him for
the duration—it does not appear that this demand will be
years:
creased
*
.
.'an
unbroken dividend record for fifty-six years
large enough to offset the tremendous growth in warexpanded capacities for producing basic materials. It
would not be surprising, then, if industrial use of power in
early post-war years dropped by a third from present
levels, or to about the consumption of three years ago.
Of
itself, this would tend to reduce operating revenues and
boost unit costs of electric utilities..
There are, however, alleviating circumstances in the
Domestic and commercial consumers might be in¬
concessions or intensive selling,
to expand their consumptions sufficiently to erase part or
all of this prospective loss of industrial revenues.
Despite
sharply increased industrial use, domestic consumption of
current in August, 1942, was 32'% of industrial use, while
the price of household electricity per kilowatt-hour was
offing.
duced, through proper rate
3.7 times that
The United Gas Improvement Company
J
1
»
U
'
of industrial power. Accordingly, if house¬
expand their electric consump¬
holders could be induced to
tions by about 30%, sufficient operating revenues would be
forthcoming, despite lower rates earned by increased use,
to offset the reduction of a third in industrial revenues.
: * Is that in-the cards?
It would appear so. " For one
Volume
156:
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4120
1537
thing, short-cuts in manufacturing methods, along with the tonio's electric and gas revenue bonds, the private utility Paine, Webber Booklet On
' i
use of plastics and plywoods, will permit the production
rendering these services paid $1,071,929 in Federal taxes in
Securities Transactions
of low-cost appliances after the war, for sale to low-income the 12 months ended with May; 1942.
In addition, since San
Paine, Webber, Jackson & Cur¬
groups at prices within their reach.
For another, since Antonio will retire these utility bonds in annual installments, tis, 25 Broad St., New York City,
most electric utilities will have considerable excess gener¬ it contemplates no charge against operations for
deprecia¬ announces publication of a 40'
'
•
ating capacity* after the war, on which fixed charges will tion, which cost the private utility $889,200 in the May,
keep ticking away, they may be expected to grant special 1942 year. And since San Antonio has borrowed 100% of
low rates to householders for electricity consumed in cook¬ the funds required to purchase these facilities,
through
ing and water heating, which will bring this form of energy issuance and sale of tax-free' bonds, its average annual
within the price range of competitive fuels.
And, for a capital hire, even when installment repayments of debt
third, electrically-wired low-rent housing, fluorescent light¬ are included, will be but 60% of the cost of money to the
ing (not adapted to residential use before the war), new private company.
Disregarding the sharply increased Fed¬
home construction and expanded rural electrification, all eral taxes a private utility would be compelled to pay on
will contribute
to
increased household consumption
of 1942 profits under the new tax law, San Antonio and the
electricity. As a result of new uses and the expansion of three outlying communities will have a $2,883,000 advan¬
old, a 30% increase in domestic power use in early post¬ tage over private enterprise in the rendering of gas and
war
years appears a distinct possibility.
After all, house¬ electric service. As some of us have learned to our sor¬
hold use of electricity did increase 39% in the 36 months row, you can't win from the fellow with a few extra aces
Another political monkey-wrench that might seriously
ended with August of this year:
*• •;; •/ • f:;/%
;
For somewhat similar reasons, commercial use of power have impaired electric utility earning power and distorted
can be increased
substantially after the war.
Comprised utility ownerships was plucked from the works, just in
as it is of the offices and stores, the shops and work-rooms
time.; At the instigation of a short-sighted dealer in public
of the country, all of which prosper largely by serving the securities, Department of the Interior reportedly drew a
needs of householders, the commercial class of electric con¬ provision, which the Senate Finance Committee in a weak
,,
;
listing
booklet
page
the
firm's
executive personnel and outlining
its services as brokers in bonds,
stocks
and
commodities
distributors
and
and
as
underwriters
of
securities.
Pointing out that the past few
have brought about many
years
changes in the methods of con¬
ducting a security business due to
new
regulatory
measures,
the
booklet
sets
forth
some
of
the
important rules and regula¬
tions relating to transactions in
more
In
securities.
a
section
on
com¬
modities, extracts from the Com¬
modity Exchange Administration
pamphlet "Trading in Commodity
Futures" are set forth, together
with a Commodity Markets Sched¬
ule providing information regard¬
ing transactions 011 eight com¬
modity exchanges.
A summary table
shows that the
greatly from the pent-up public moment included in its version of the .1942 Revenue Act, 23 offices of the firm have an ag¬
.buying power that is certain to bring a buying surge, once that would have permitted communities, on petition of a gregate personnel of 794. Included
in this total are 30 general part¬
the war is over and restrictions on production and sale of maximum of 10% ; of their voters,
to acquire privately
ners,
five limited partners, 24
consumers
goods are lifted.
And, obviously, increased owned tax-paying utilities and convert; them into tax-free b r a n c h office managers, 23
custom for commercial consumers means increased electric public enterprises.
traders, 15 statisticians and 247
Not even the most rabid or bigoted advocate of
consumption, both from the operation of appliances and
public registered representatives. Twen¬
ty-four Exchange seats are owned
longer hours of business.
If increased use of current by owership so far has advanced a plausible reason why a tax- and deposits are carried in 124
commercial consumers in immediate post-war years is as reducing provision should be included in an admittedly tax- banks.
much as a third greater than their August, 1942 consump¬ expanding measure, particularly when the nation is faced
Copies of the booklet may be
had upon request by writing to
tion, when they used some 30% as much power as indus¬ with its most pressing emergency.
But when an import¬
Paine, Webber, Jackson & Curtis.
trial consumers and paid three times the industrial kilowatt- ant department of government, headed by a cabinet mem¬
hour rate, the revenues accruing to electric utilities from ber, lendsits aid and influence to this variety of sabotaging
this expansion in use, again, would be sufficient to erase a the war effort, it suggests the character of vicious attack H. D. Swihart Co. Dissolves
loss of one-third in industrial revenues.
And when it is and punitive legislation that may confront privately owned
Swihart Continues $ v'
stands
sumers
to
benefit
recalled that commercial
consumers
did increase their
use
electric utilities in post-war years.
%v.:"v;;.
r
Homer
D.
Swihart
and
,
Sey¬
The third political monkey-wrench likely to mess
third in the 36 months ended with August,
up mour Perkins, Jr., announce the
dissolution of the firm of H. D,
a part of which restrictions on the production electric utility earning power in post-war years is the prob¬
Swihart & Co., effective Oct. 31,
of consumer goods existed, this does not appear fantastic. able raiding of privately served areas by existing or newly
1942.
Mr. Swihart will continue
constructed public power projects.: Included in the back¬ the same service in Government
Actually, of course, neither domestic nor commercial
electric consumption will remain constant after the war. log of post-war projects proposed by the National Resources securities at the office of D. W.
y%
The experience of 60 years shows that, with few exceptions, Planning
Board, -largely to stimulate employment, are Rich & Co., Inc.
both these classes of consumers have increased their use of hydroelectric developments, widespread transmission "grids'current, year after year.
And for that reason, we confi¬ and nation-wide rural electric distribution lines. And since Lael Abbott Associated
dently may expect increased electric consumption by both the "unreconstructed" Supreme Court ruled, in one of the
With J.M. Dain & Co.
householders and commercial establishments.
If, then, do¬ two cases involving TVA to reach it, that public power
(Special to The Financial Chronicle)
mestic and commercial consumptions should increase in im¬ projects^ no mattem howscrewy or; ill-advised,' are free to
MINNEAPOLIS^ MINN. — Lael
+**«-«>-»/-vTT-or1!
-U-tciir*
' 1
"T""
transmit, over: their own: lines, and Sell "by-product" elec¬ * R. Abbott, previously an officer
and sell
mediate post-war
years at a rate half again as fast as the
average of the past three years, any discernible loss in indus¬ tricity as "property of the people," there is great probability of Harold E. Wood & Co., with
that many areas now served by private enterprise will be which he had been connected for
trial revenues could be extinguished.
Purely from an operating standpoint, the outlook for invaded by, and lost to, public power projects in post-war a .number of years, has joined the
privately owned electric utilities in the immediate post¬ yekrs. The resultant loss of Federal taxes, of course, will staff of J. M. Dain & Co., Rand
'of taxable enterprise.
be saddled upon other
•
i: " Tower.'
war period should be encouraging to holders of their bonds
of power
by
1942, during
,
,
a
.
-
i noc
—°
'
and
stocks.
It
is
only when
we
consider the effects of
probable political interference with their operations, through
over-zealous or punitive regulation, and the likely invasion
of their service areas by public power projects, that post¬
war prospects for electric utility earnings become clouded.
Foremost among the political monkey-wrenches now be¬
ing tossed into electric utility machinery is the "death sen¬
tence" provision of the Holding Company Act.
Serious as
is the effect of this regulatory monstrosity today, its enforce¬
ment appears even more of a threat to utility profits in the
post-war period.
Not unlike southern prohibitionists of
20 years ago who, while demanding strict enforcement of the
18th Amendment, wholly ignored the 15th Amendment,
which
gave
It would appear/
Negroes the right to vote, the
Securities and
if
therefore,
foregoing assumptions
valid, that p r i v a t e 1 y
the
are
electric
owned
utilities,
un¬
hampered by political inter¬
ference, could prosper, in post¬
war
years.
But if politicians
and
politically-appointed
regulators are to continue
throwing monkey - wrenches
into their machinery, social¬
ization
of the
Government
on
Furthermore, the
borrowed capital likewise is not
their business ventures.
interest they must pay on
electric power
light industry appears the
probable result. % Maybe we
could do something about it.
Robert J.
the
New
subject to Federal income tax.
recently arranged sale of the electric and gas
Antonio Public Service to the City of San
Antonio and three outlying communities is X case in point.
cobson
The
According to the
bankers'-prospectus describing San An¬
York
&
City.
a
Stock
Bingiiamtox Gas Works
The
of
Co., 61
Benjamin
as
an
broker
in
New
individual
York
Gas & Electric Company
The Dayton Poaver
and
The Manufacturers Liciit
Natural Gas Company
Light Company
and
of
Heat Company
West Virginia
The Ohio Fuel Gas Company
and
The
Onion
Light, IIeat
and
Power Company
Ja¬
Broadway, New
Mr. Jacobson has been
active
Cincinnati
Exchange,
partner in the Stock
firm
Principal Operating Companies
;
Jacobson, member of
York
will become
Exchange
facilities of San
CORPORATION
and
selected Section 11 of the Hold¬
ing Company Act for evangelistic enforcement, the while
ignoring Section 30, which directs it to make studies of J. F. Flynn To Become
holding company systems. At the same time, while placing
Partner In Sincere Co.
the narrowest possible interpretation on what constitutes
J. F. Flynn will be admitted to
"an integrated public-utility system," it so far has failed to
partnership in Sincere & Co.,
define that term.
As a result, hardly an electric or gas members of the New York and
holding company in the country is not faced today with the Chicago Stock Exchanges, on
Nov. 5. Mr. Flynn, who will make
necessity of disposing of one or more of its operating sub¬ his headquarters at the firm's
sidiaries, without knowledge of similar action required of New York City office, 39 Broad¬
other holding companies.
; ...y;;y
way, will act as alternate on the
floor of the Exchange for Edmund
But who, in the face of enormously expanded Federal
C. Coultry.
taxes, dares buy these orphaned operating utilities today?
Only the municipalities or other political subdivisions they
To Admit R. J. Jacobson
serve, since public authorities are not taxed by the Federal
Exchange Commission has
Columbia Gas & Electric
floor
was
partner in Giles, Norris & Hay".
a
United Fuel Gas Company
THE COMMERCIAL .&
1538
FINANCIAL CHRONICLE
lationship
SEC Bid-Asked Rule
further
Opposed By NASD
(Continued from page 1519)
of these reports of examinations
and
not.
you're
directed
let¬
cautioning them and
further advising them concerning
the mandates pf the Rules of Rgir
city slicker who has succumbed to the back.-to-the-soil.
movement you'll find "George Washington Slept Here" .(Warner)
rollicking fare. Based on the Moss-Har,t play success of a few seaspns
ago, the movie details the adventures of Bill and Connie Fuller (Jack
Benny and Ann Sheridan), who buy a "perfectly charming" place in
Pennsylvania's Buck County. That is, Connie does.
Bill, who was
born in an apartment and wants to die in one, wants no part of the
rural life or old broken houses whether Washington slept in them or
If
questionnaires,
ters to firms
MOVIES
a
Practice
and
times
consider
to
urging them
first, and
at
all
fore¬
most their customers' welfare and
secondly the-question of their
own
profits.
"Thus, this phase o.f the Asso¬
ciation's
city cliff dweller, however, becomes the reluctant owner
Colonial relic to discover after moving in that there is no
The
has
work
taken
three
forms—-first,
appropriate
disci-;
planar y action; second, restitution
water (except when it rains), no electricity, no floors and no plumb-,
where feasible and possible; and
ing, and to top it off, no road, except his neighbor's, who bars it to the
the continued efforts to
Fullers. Benny is as gay as ever, spouting witticisms lugubriously as third,
he .discovers that being a member of the station wagon set cost a promote a universal awareness of
the responsibility of brokers and
grea.t deal more money than he has.
Ann Sheridan, as his wife, is
dealers to deal fairly with their
Strangely subdued. Best performance contributed by Percy Kilbride,
customers.
/,.
the hired man, whose erroneous estimates of the .amount of manure,
"The Association,
through its
gravel and the other less romantic necessities of the rural life'5 keep
Of the
Thursday, October 29, 1942
to
the
been
market.
said
It
vehicle
has
tives of the staff that this practice
has been indulged,in .by many
over
the
-
dealers.
counter
-
this
there
and
These statements of pur¬
.
.
Another movie based on a play
.
Business
you'll
Conduct
Committees, isr
enjoy is "Sister Eileen" (Columbia), which opened in N. Y.last week. engaged in advancing the theory
that a profit an this business must
It's the story of small town girls (Rosalind Russell, Janet Blair) who
be based on service. This has been
come to the Big City to find success and glory and the amazing things
the established policy *of this As-f
which happen to them when they move to their basement apartment
jn Greenwich Village. Their landlord is a frustrated artist, and their sopiation im order -properly- to in-1
suggestion,. has stated that
is a primary' objection to
solution, Inasmuch
this .suggested
.our
indictment
on
and
not .believe
.
warranted
or
to
either
be
and
true
by the facts. .It has
are, undoubtedly guilty
practice of oVer-pricing
who
the
of
able to operate
been the Association's, .experience
that there is a group in the indus¬
without
try which -engages jn practices not
to that of the Association
consistent
ethics.
with
comparable
cluriqg
any
period of experimentation
with this suggested solution.
business
good
Association
'The
and who would be
and
the
sincere
a.
and
to
try
the
not
only
-endeavor
the
interest
of
of the
business
itself.
who
in
work
of
the
small group
Association
Our
in the business has
with
Commission
the
ar,e,
inquiries disclose that, a very
proportion of these nonactually are not engaged
the
securities
business.
We
large
been
members
transgressing the ..bounds of
good business ethics in respect to
their sales and profit policies in
the
fact, .these non-members regis¬
actually engaged in the securities
or
investment banking business.
substantiates the opinion that only
a
Stock
of
members
not
are
tered
The
previous statement of the .exami¬
nation
,
a
Exchanges to determine whether,
the
public but also, in .the. selfish in¬
terest
made
spot .check ;of the list-of registered
brokers ,and .dealers who are npt
members of this Association and
eliminate from the indus¬
practices of this group,
in
Association: has
"The
,
eradicate
to
supervision
.
membership- are presently
and
have been in .the past -.engaged in
.
the Fuller's in hot water.
such
of
.opinion, constitute an as there are a great many regis¬
east a reflection, tered brokers and dealers who are
the entire industry, which we not -members of the Association
in
pose,
do
brokers
solution
the
for
problem as..does-exist. .The staff
of the Commission, in answer to
by representa¬
in
have
business transactions.
ascertained that " many, pf
registered with the Com¬
are registered only inci¬
those
mission
"The staff ..of the Commission
the membership;
has further stated that this alleged
dentally to other activities and
that professional
are
not, in fact, engaged in the
practice
which
motivated
ihis.
about her, a nice way, which is misunderstood by the hordes of eager spirit which the great majority of
securities
business;
many
still
tne industry wishes to promote, i proposed Rule is a growing prac¬
males who infest their down cellar abode.
Nor can the sisters be
tice and that the Rule is ,to pro - registered
,are. now,
deceased;
"From a statistical standpoint;
blamed that the local gendarmes break up their ..charades and hustle
tect investors who are frequently, many, have left the business for
the whole kit and boodle off to the hoosegow. The whole thing is the results of the Association's ex-<
reasons
and have
charged, - prices
for
securities innumerable
excellently done.
You'll laugh until you ache. . . . "Thunderbirds" amination program are as follows:'whicn bear no treasonable .rela¬ merely
neglected
to
withdraw
It has been found necessary to
(20th-Fox) takes a John Gunther commentary describing the aims
.•
;
tionship .to the existing markets. their registrations.
and the .efforts of flying cadets from the United Nations; American, take disciplinary action against
We submit fhat the Association
"In conclusion, the position of
English and .Chinese, then bolixes up the whole business with .one approximately 5% .of the mem-1
cannot, but conclude, because of the Executive Committee in this
,of those yarns which not only makes poor entertainment but does the bership of the Association; in all;
statement is as follows:
'
;
our own experience and informa¬
'movie industry little good.: Prestpn Foster, the "flying fool," comes 170
complaints- have been filed
"(1) Association experience has
tion in their field, that the record
to the Arizona flying school as ah instructor.
In his spare time, he since Jan. 1, 1941. Of these, 99
does not bear out -these' con ten ~ demonstrated that-only a small
renews his friendship with Gene Tierney, who lives conveniently on involved violations .of our Rule:
tions and statements of the Com¬ marginal element within the busi¬
a nearby ranch.
provides
that
members;
But Qeepe gives poor old Preston the old heayerho which
mission's
staff
that the
alleged ness has engaged in the practices
and takes up with a scion of the English Stackhouse family (John shall deal fairly with their cus-i
practice is either a practice within which the purposed Rule would
Sutton), one,of Preston's students; Sutton is a capable physician, but tomers in the purchase and sale*
collection
of
acquaintances
slightly mad
either
are
culcate
completely
or
withfn
,
and the industry
After all, it wasn't Janet Blair's fault that she has a way
wacky.
•
.,
,
.
,
photogenic Miss Tierney
taking.
as
well.. The color photography is breath¬
practices with-:
imthe membership as do exist, the
root out such bad
Association has found it necessary,
TIIE
TOWN
The Monte Carlo
'
.nut in ermine,
mink and the family jewels, came jo see and be seen.
Broadway, which considers such affairs a "must," was there in all its
finery. Even Hollywood was well represented. Of course all branches matter of dealers' buying or sell¬
.of the armed services,, from ordinary seaman to gold-braided heavy ing securities at prices not reason-;
stripers, and from buck privates to double-starred .shoulder insignias ably related to the market.
were also there.
"Our knowledge of the practical
They all-jammed in, to ooh and aah at the new lay¬
For
if
the
Monte
Carlo
morphosis.
The main
beautiful
was
before; it's positively nature of this matter does not end
sheet of mirrors, blue .ceilings,
red drapes and white fringes rising from a red and white carpeted
floor.
The old Beach, open summers, has also undergone a meta¬
now.
room
is
a
Renamed the Casino, it is something to see.
further
those few who
submit
with this report of what our pro-;
tive
standards
mercial
of
business
location
the
of
members;
'ethics
had
that
say
as
no
rule is
correction
as
effective
enforcement
and
!
,
Jack
The Penthouse Club
30 CENTRAL PARK BOUTS
Adjoining The Plaza
heralded the return
tied
previously, examination of
comedian,' each member at least once a year;
his bag of
is our program for the future. We
tricks.
Marshall is funny, really!
have developed a plan to improve
funny. His "Butch McGurk," the
upon Investigations into members'
draftee 'who never knew how he
business
practices
which
will,
became a soldier (he thought he
bring to light information upon,
was
just buying a sweepstake
the
rubber-faced
Marshall,
and
which
A
a
most
unique restaurant in
beautiful location,
overlooking
Central Park fo the north.
Serving
best
food,
ticket), is calculated to have
roll
between
the
tables.
you
By the
considering the mobs of peo¬
ple who pome here, the Glass Hat
food is surprisingly good.
the
Association
can
move
promptly against all types of irmproper
way,
acts and practices.
"We are, as
discuss
with
the
always, prepared to
these
matters
in
detail
Commission.
the -Commission have
prepared„
Entertainment after 11 P. M.
Hardy & Co. To Admit
Hardy & Co., 30 Broad St., New
York
York Stock and Curb
Telephone FLaza 3-6910
will
proposed Rule to be the result of
an
increasing awareness of a prac¬
City, members of the New tice
admit
Marjorie
Exchanges,
E. Allen
special partnership in the firm.
to
growing
in
the
over-the-
counter market for dealers to buy
from
or
sell to their .customers at
prices bearing
no
sion, fo the
reasonable re¬
industry, and to the
public that the public interest, the
interest of the Commission, and
the selfish interest of the industry
;at large can better be served by
this .cooperative effort than by a
rule
which, in our considered
opinion, is unnecessary and which
will take., from the Commission
as
well as the Association many
of the tools so effectively used to
date.
•
continuing
cooperative
our
work in :an atmosphere of mutual
to
such
put
effect would
rule
a
into
undoubtedly harm
a
large portion of the business and
•
1
;
V
Rule
is
considered
our
Rule,
proposed
directed, At being
opinion that the
if
promulgated.,
would be easy to evade;
"(5)
the number
of
registered
brokers and dealers outside of the
Association
nor
is
is
thejr
not
large
volume
0f
enough
business
important enough fo justify such
a
rule .on the grounds .that they
are
beyond NASD policing and
therefore constitute a major prob¬
lem for the Commission; and
"(6) there would be
need
for
the
no
Association
further
the
in
field of work in which it has been
most
active and successful."
Members of the Executive Com¬
mittee of the
report
Robertson
tonio,
NASD making the
H, Dewar. Dewar-,
H.
are
&
Tex.,
Pancoast,
Chairman;
San
An¬
Lee
M.
Limbert, Blyth & Co., Inc., New
York City, Vice-Chairman; Rob-ert
W.
Baird,
Wisconsin
Co;,
Milwaukee, Wis., Treasurer; Herr¬
mann F. Clarke, Estabrook &
Cot,
Boston; Laurence M. Marks, Lau¬
rence M. Marks & Co., New York
City;
and
Maik
C.
Ehvorthy,
El worthy
& Co., San Francisco..'
Sums Raised For NY Fund
A
total
of
$32,910 has been
raised to date by the casualty and
surety section -of the Greater New
of the staff o.f
the Commission do .not claim that
the membership of this Associa¬
tion has not been adequately po¬
York Fund's f942 ^campaign, it is
reported by Vincent Cullen, Prest
that the problem the
to solve .is
one which is a prevalent practice
within -the membership of the As¬
sociation. It has been suggested
that this Association is the proper
surety section.
"The
"Representatives of the staff of
stated this
skilfully
by
posed
have
,
& Lexington)
be
met most effectively in . the inter¬
est of the public and the busines's
busi¬
who
Carlo is the
of
the Association will dem¬
withip- this
Authorities
ness.
where two orchestras, Sonny Kenis's and a .Latin out-'
in
fit, hold forth. By the way, if you hanker for celebrities, ,the Monte bership but the important fact is the foregoing statement, has at¬
place to go. I have frequently seen more name people that we know who they are and; tempted to demonstrate that the
jammed into one corner of the Monte Carlo than in the entire room where they are and we have; objectives of the Association and
pf that over-rated ornithological 53rd Street place.
Gene Cavellero,
already demonstrated our capacity the Commission .can best be at>
who draws Washington bigwigs as well as other more publicized peo¬
to deal with
them. We are not tained by a continuation of the
ple, and still my idea of a capable host, is the managing director. With winking at abuses and we do not: cooperative work by the Associa¬
Fefe Ferry heading for the Army, Teddy Rodriguez, who rose from
deny that a minority in the busi-j tion and the Commission in an
Harvest Moon dance contest winner, steps in to take his place.
Teddy, ness perpetrate them, but we re¬ endeavor to advance and enforce
still new at this business, was as busy as the proverbial wall paper
standards
of
commercial
peat: we know who they are and high
hanger. He's likeable and willing, however, and should make a go of
honor
and
where they are.
integrity,
justt and
it. The only sombre note at the new Monte Carlo was the absence of
"We are not wholly satisfied equitable principles of trade, and
the affable head waiter, Melo, who passed away a few short hours
business ethics. We are of the cer¬
with our examining processes, ef¬
before the opening took place., The Monte Carlo and the people who
fective as they have been to date. tain opinion that -the Association
knew Melo will miss him., v.
The Hotel Belmont's Glass Hat (50th
As the Commission has been noti-. can demonstrate to the Commis¬
the main rqom
"(3)
onstrate that the problem- can
not reach those at whom the pro¬
policies are in need of po.-;
licing. Their number is small in through examination work.
"The Executive Committee,
relation to the total of our mem- *
whose
by further coopera¬
.com¬
the
and
can
and.
Wider and longer, serves as the English Snack Bar where you .cap
sit and eat. Prices at this bar are quite reasonable.
No item sets you. of profit policies of practically all; not .eradicate bad ethical prac¬
back more than $1.25. The old Beach dance floor, screened off, fitted members. It knows the numbers tices.
These authorities further
put with soft lights/new upholstery and a gypsy stringed ensemble
to play soft romantic airs not to dance, but to listen to, is obviously
popular with the hand-holding set. If you want to dance you go into
Commission
in the interests of
effort;
"(4)
organize the w°r.k which is pres¬
ently being done to promote high
has disclosed to be the size experience in this field fortify us
in our opinion that rules such as
problem and -the steps;
this proposal are .not self-enforc¬
taken to solve it. The Association j
has prepared a detailed, analysis; ing and, in and o.f themselves, will
The old bar,
>
•
.
confidence;
Commission; and .completely dis¬
gram
of
the
all concerned
that
in the
marginal
element of the industry constitute
are
and
best be served
mately
Not that it Was closed; it just changed what in soignee circles
is called the decpr, an occasion which always calls for an Opening
with all the fanfare to herald in the event. The carriage trade, decked
out.
We
market.
ciation
relationship to the
complaints against approxi¬
a
small and diminishing minor¬
2.6% tof its membership!
where the matters concerned jn-i ity,; that this proposed Rule may
volved allegations of dealing urn-; very well harm the present trend
of investigation and examination
fairly with customers in the pur¬
chase.
and
sale
of
securities,! work within the industry being
to file
.
(49 E. 54th) j had its Grand Opening last Thurs¬
day.
Sybaritic
reasonable
no
.,
"(2). the purposes of the Asso¬
a
The plot is anything but.
AROUND
seek to cure;
the Industry, that it "is an increas¬
Thus, as a result of
concerted, well-organized effort! ing practice, or -that investors .are
on the part of the Association to; frequently charged prices bearipg
of securities.
in order to maintain the honor of the Stackhouse line, takes up flying.
He makes a bad flier but with Preston's help gets his wings plus the
liced,
staff
members
nor
is
endeavoring
ident of
the National Surety
Col,
and .Chairman of the casualty and
close
The
until
the
The books will nof
end
of
the
year.
Fund's
campaign is for
health
agencies
the
support ,of 400 voluntary welfare
and
the
cijy.
throughout
Volume 156
Our
Number 4120
THE COMMERCIAL & FINANCIAL CHRONICLE
War,
Revenue
have :made
Bill
their
which
path
"American people
are working
producing and dis¬
tributing a million different prod¬
ucts urgently needed everywhere.
hard
the
easy,
That
.
week,
became
at
this
and
"It's*
disclosed
to
for
special
a
privilege
to
\ purchase by
,
•
of
the
r
tax
Light Co.-
'.'Under
attempted
;'
.
the
Sound
get
Capital
get
can
6%-in
:
which
they
through
group "of
any
have
to
set
up
■'non-profit" corporations, enjoy¬
ing tax exemption, for the purpose
pf acquiring such properties.
■
with
such
includ¬
The
j
Sic
;
.
,
/• •
.
•••;;:
.
issues
with
an
average
coverage
In. the list'are 16
of'; 1.70
utilities,
1941'4 interest'
times.
11 rails and two
sji
industrials.
tji
'
■,
,!|i
,
11
,
private
inter¬
have
to
group
these
vestors
nomic
public
agencies
for
pur¬
chase of properties which might
for
026,211.73 as of Sept. 30,-1942,
equal to $16.48 per common share.
America
be forced oh the market through
the Wbrking of the "death sen-
-
tence" clause of the Public Util-,
jity Holding Company Act.
^
,
light about
company
first
a year ago,
compares with a net asset
value of $15.24 per share at June
30,
1942,
1941.'
and
■
•
at
Dec.
■• ••
>ic
%
Broad Street
Net
s|s
■
T.
Investing Corp.
of
assets
re¬
General
Share¬
1942,
reported at $6,710,055, equal
to $73.94 per share of the
pre¬
ferred stock.
' : V
were
of notes.
within
proceed
company
the
It
•
will
few
next
have
stocks
ments.
have
undertaking:.
other
projected
new
that invest¬
unbalanced
their
common
speculative senior issues
well make some adjust¬
might
Individual
made
issues
sensational
Straight Bourbon Whiskey —100 Proof—This Whiskey is 6 Years Old.
Stagg-Finch Distillers Corporation, N. Y. C.
Tramway
(Continued from
substituting electric trol¬
at
This has been
cost
a
approximating
$750,000, and paid for in cash and
equipment
trust
paid
off.
rail
lines
will
trolley-coach
equipment can
new
be obtained.
which
The
also
company
owns
an
amendment was filed a
still
appear
to
be
stymied, it is possible that the
ago,
pany-owned mine.
•;
»I:
-
October
7
$
;•
mid-month
"New
Series of New York Stocks,
Inc.
From
Series,
vance
the
1940
lows
this
The fare
3
or
in Denver is
tickets
Industrials
and
31.0%" for
the
Rails, has registered
a
gain of 98.6%!
$
$
Notes Series "C"
Eliminations
—^
lV4s of 3/15/45;
General
Electric
ties, sinking fund operation and
purchase of bonds in the open
and United Gas $7 Preferred.
,
! ;
.
* ;
«
-'
sis
actually to reach market.
Investment Company Reports
-H* Y. Analysts To Meet
and the Mana¬
gerial Revolution" will be the
subject of a special discussion at
the luncheon meetirig of the New
York
Society of Security Ana¬
lysts, Inc., to be held on Friday,
Oct. 30, at 12:30 p.m.
At
the' Society's
meeting on
Monday, Nov. 2, there will be a
.
round table discussion of the Pub¬
Act,
Thathani, Jr.
T. L. Shaffer, Vice-President of
Congoleum-Nairn, Inc., will speak
at
the
meeting
scheduled
for
Nov. 4 on ''The Floor Covering
The
report of Incorporated In¬
vestors
Sept.
for
the
quarter
ended
30,
1942, shows net assets
of
$31,115,709, compared with net
assets of $28,138,414 on June 30,
1942. During the quarter the net
asset value
per
share increased
10%, from $12.14 to $13.39.
Deere, Goodrich, National Dairy
Products,
and
Western
Union
were
the
added to the portfolio
during
holdings
of
quarter / while
Gross
income
the
charges
Substantial increases w£re made
the
holdings of Dome Mines,
Mclntyre
Porcupine,
City Bank,; and Para¬
mount Pictures.
Such
a
pol¬
icy should be backed up by the
best advice obtainable from men
who
are
markets.
ment
invest¬
submitted, either
fee basis or as a service, only
on a
the
advice is
outside
highest calibre counsel or in¬
stitution should be employed."
ti<
"Is
your
s[:
#
CAPITAL
harder, too?" asks Lord, Abbett's
'* "
the Selling
reductions in the
the
to
well
as
apparently
Pipe, and Nickel Plate, Pfd.
the defaulted rail bond
group,
In
no
new
companies were added
eliminated
some
although
there
or
while
*.
«
Chemical Fund, Inc., reports
increase in net
aiji
assets
during the
Quaker ended Sept. 30, 1942, from
$7,831,750 to $8,118,027 and net as¬
set value per share increased
from
shares
to
$8.15.
The
number
No
THE
of
outstanding changed only
from 996,739 to
995,773 shares, as
of
in
at
one year
sole right
lower
of
paid.
was
rates
No divi¬
been
paid since Jan¬
Cumulative unpaid
dividends totalled
as
$65.37
per
share
Dec.
_3I7W94lr~DividehdT
January, April, July, Octo¬
dates:
bank
ber 1.
DENVER
statement
In
being
1927;
1932.
uary,
TRAMWAY
SYSTEM
"
Expenses and Fixed Charges of 3V
Tramway Corporation and The Denver and intermountain Railroad Company
""
Earnings,
tWith Inter-Company Transactions Eliminated)
•'
12-Monlhs'
Period
Ended
Sept. SO
operating
Uess Operating
Operating
revenue_„___.^
.
1941
!
in
(excluding
expenses
£3,200,350.91
$2,299,782,77
$1,964,469.28
575,543.08
depreciation)-.—.
(Note
:
■^-^r
—.
568,212.77
340.134.29
358,137.11
and taxes.
$3,215,460.14
$2,890,819.16
—
$1,006,407.32
13,297.37
$309,531.75
11,667.22
$1,019,704.69
$321,198.97
on
.
\
Total operating expenses, depreciation
Net
operating
Total
income
miscellaneous
:
income—
per
traffic
1932
'
Gross
income,
less
operating
expenses,
depreciation
and !taxe$
Deductions
Interest
on
Interest
on
on
-
income:
from
Interest
;
unfunded
debt—
$83.78
and refunding bonds.—
equipment trust certificates..
general
240,896.25
$243,401*25
deductions
from
422.92
income
4,725.00
$241,402.95
$248,126.25
$778,301.74
Total
Estimated provision for Federal and state taxes on Income
and
since
$73,072.72
Balance
for
debt maturities,
corporate
that
350,000.00
sinking funds and other
purposes ■,—!_.—,—i
charges have
$428,301.74
9-Mohths' Period Ended
Sept.
1942
Total-
operating revenue
$73,072.72
30
declined Steadily.
1941
$3,324,425.82
$2,414,695.19
$1,750,711.39
$1,481,293.83
431,101.67
—,
425.365.23
Outlook
Less
Traffic
revenue
has
increased
accelerated
balance
of
continue
revenues
in
the
ports
during
year
but
the
at
are
1942
pace
a
now
Und result
being reflected
in
earnings
a
and taxes:
(excluding depreciation)
1)
—.—
251.208.87
Total operating
$2,173,034.61
$241,660.58
10.874.48
8,569.60
$902,278.37
depreciation and taxes
266.375.50
$2,433,021.93
$891,403.89
expenses,
$250,230.18
should
The increased
interim
Depreciation. (Note
the
high level during
time, at least, after
war.
operating expenses
Operating expenses
substantially since Jan. 1, 1942,
and should not only increase at
an
very
re¬
sub¬
Net
operating
Total
income
miscellaneous
Gross" income,
;
and
.
income.
less
operating
taxes
Deductions from
Interest
on
unfunded debt-,
Interest
on
general
on
equipment
timated at 70,000) and the person¬
nel of various army camps, the
is also supplying transnortation and freight service to
company
the Remington Small Arms Plant
depreciation
——T————
Interest
traffic, occasioned by the ration¬
of automobile tires, the in¬
creased population of Denver (es¬
expenses,
income:
stantial increase in net income to
ing
1
$4,221,867.46
"and'Taxes:
expenses
Depreciation
k: / !
i,
,
1942
.'
increase in
stable
interest
outstanding.
the company after all charges.
In addition to the increased
city
were
changes in the issues held.
*
to
1,
dends have
of
as
per
stock.
of auto¬
use
an
stopped
remained
the end of the
S.
as
The decline
expenses.
Can,
U.
$519,377
general
more
mobiles
and for some
Atchison, Union Carbide.
for-, interest
averaged
called
power
paid from Oct. 1, 1925,
were
Oct.
250 per share
has
Comparative
voting
common
thereafter until Jan. 2, 1932, when
other debts exist.
or
The Denver
debt
side there were
holdings of In¬
ternational Harvester, Lone Star
Cement, Bankers Trust. American
$7.85
working
■
On
familiar with the security
Where
:
1926
/ ,..'
.;' ■ %'.••;••':>
During the 10-year period 1932
to 1941, inclusive, gross revenues
averaged $2,983,468. Total income
averaged
$345,235 and
interest
charges $336,669 per year reflect¬
ing* the decrease in traffic due
time
nated.
$4,000,000
loans
year.
has
elimi¬
were
National
followed at this time.
funded
road,
Pullman
from
(after operating
expenses, taxes and depreciation)
averaged $978,015, while interest
Hollinger,
general diversification, based upon
a very careful study of individual
issues, is the best one that Can be
available
to
1, 1943, $782,000 of the gen¬
eral and refunding series A 5%
bonds of i950 whtchrwlll leave
Total
years.
revenues
1931, inclusive, average $4,166,540
per year.
During this period total
Smelting,
Caterpillar
Tractor/ General Cable "A," Her¬
cules Powder, Pennsylvania Rail¬
in
feeling among college investment
officers that a policy of broad
31, 1941, the
$4,829,900, showing a
debt reduction of $6,140,000
American
and
of Dec.
during the past 16
5%
over
company
equal
with
and
Dividends at the annual rate of
the
The
each
yeaf
through debt maturi¬
As
in
cumulative
to
7% for such year.
arrears, shall have
elect directors.
to
Jan.
substantially
market.
earnings
in
(,
31, 1925, the funded
debt of the campany totalled $10,
970,000.
This debt has been re¬
1925
better
preferred stock
year,
entitled
event of dividends
will, after
the past few years.
1930.
of Dec.
since
The following portfolio changes
during September are reported in
rate
Financial
As
duced
$
in
and
Has
share
also
future than hav0 been shown
100 cash
This
250.
became effective
as compared with an ad¬
of 2.8% for the Dow-Jones
j Dow-Jones
for
fic
It is
In
than
more
liquidation, entitled to par
cumulative dividends of 7%.
materially increase the
position or substantially re¬
debt.
be
earns
and
In
to
the bonded
in any
dividends up to
During this period of unusual
earnings the company should be
cash
company
shall
the war/retain a good part of the
increased population which should
result in a heavier volume of traf¬
The
West Texas deal may be the next
'•"Stockholders
5%
future, and will be immedi¬
ately put into service.
40,000 horsepower capacity which
is supplied with coal from a com¬
*
:
total
laying
event
the
within
104,412 shares
Has preference as to assets
cumulative dividends of 5%.
buses which
new
delivered
be
Outstanding
has
conceivable that Denver
!
-
to
:
■
•
debt totalled
(Continued from page 1519)
"There seems to be a growing
order several
should
company
the
for
ver, car barns, terminals, etc., and
a steam generated
power plant of
subjected
ditions—Pepsi-Cola and Treasury
Industry,"
transportation,
To
demand
duce
be
the current "Letter" of the Broad
led by Charles
construction.
increased
8-story office building located at
14th and Arapahoe Streets in Den¬
should
vances
ad¬
Street Investing Corporation: Ad¬
.
this
able
price
utility
lic Utility Holding Company
under
now
meet
near
with
the
as
subsequently been
Other
replaced
lines
certificates—all
is
on
of which have
be
transportation to Fort Logan
1% (5% Cumulative) Preferred
Stock
Lowry Field.
In addition, j
transportation will have to be
(Par Value $100 Per Share)
furnished to Buckley Field, which
Authorized
105,000 shares
and to
1515)
page
ley-coach services.
operations, such as Central Maine
financing on which a de¬
Power
week
Older!.. Better!
•
and
period.
or
weeks to file the necessary feg-
istratioh statement covering: this
Since
present
is suggested
who
road
,
pectation that the
Denver
In¬
Letter," published by Hugh
Co., presents the out¬
standing performance of the Rail¬
ters there is
'
Milder!.
W. Long &
■ :•■?%':
Investment banking quarnow a growing ex¬
In
the
*
lists by over-purchase of
1
proposed
<
General
done
■
filed with the Securi¬
issuance of $18,000,000 of bonds ahd some $3,000,000
bond, for his guests!
31,
•
holdings Corp. at Sept. 30,
lines and
when the
application under the Hold¬
"
and
special study.
ing Company Act, regarding the
'
$16.24
""
in
York
to
came
ties and Exchange Commission,
an
of
ones.
Another piece of public utility
financing loomed as an early pos¬
sibility today with reports that
the West Texas Utilities Company
blight shortly revive plans for re¬
financing.
project
mildest bottled
s
This
covered part way from the effect
of earlier military and naval de¬
ors
This
Fund
feats, would be vulnerable to
;
West Texas Deal Revived
-
her, and Old Schenley,
.
Among the conclusions listed is
that the stock market, having re¬
•
,
»»»that he chooses flowers
ica reports net asset Value of
$3,-
Trust compares the eco¬
patterns of 1917-1919 with
those
ownership
.
:*s
r
England
ested
CJ
,
Company of Amer¬
The October issue of "Economic
competed ' with
;
sj:
Investment
Pre-View" by Ray Vance of New
any
)/
Man
a
-
favor¬
tax
know about
to
$3.75
or
V
share of capital stock.
i
tually impossible for
•
$1,526,840.69,
1942,
fields.";-''-,'"'"; k
—
itism, it would haVe been vir¬
,
30,
ports net assets at Sept. 30, 1942,
amounting to $4,474,656.45. This
Was
equivalent
to
$18.37
per
.
Armed
Sept.
of the outstanding or¬
ganizations
in
their
respective
some
'selected
matter-for
local -politicians
at
share.
per
industrial,
simple
*
amounted to
portfolio of Union Bond
Fund "B"; is included, showing 29
across
Trust
//twiaji
wants
What
The net assets of General In¬
vestors
medium-grade
the tax biir, it would have been a
•
802 shares.
'
ing
.■
result of the sale of 9,836
shares and the Repurchase of
10,-
1
&
l-
•«.,..
"rider"
to
Power
-
bonds of public utility,
and railroad companies
Federal agency
a
Puget
your
5'to
you
for,
Way
you an
you
"Today
exemption,
the
pave
-fori capital-^your
harder too, se¬
work
adequate return
do your part and meet
greater obligations.
help
your
j the Bureau of Internal Revenue
.
time
•
curing for
dickering With:
as
a
capital—to
change
Commission ; hearing,
■'when the Bonneville Authority
was
income, too, is work-r¬
'
Ex-
the
—
ing harder today—paying larger
taxes, giving to our social organi¬
zations, paying higher prices, and
steadily buying War Bonds. -
owner-*-
evident
Securities
a
today
"American
ship of public utilities do not give
up easily.
A;
Bond
-
Would
advocates of Government
Union
on
Fund "B."
(Continued from page 1514)
•
folder
new
Reporter's
Report
1539
—,!
—
$83,78
deductions
from
Estimated provision for
Balance
for
$182,353.75
income-*——_————$1*80,606.28
$185,503.75
$721,672.09
Total
180,522.50
$64,726.43
and refunding
trust
bonds
3,150.09
certificates——_
Federal and state taxes on income
350,000.00
debt maturities, sinking funds and other
corporate purposes
-———-—„
—
$371,672.09
$64,726.43
accruals are at the rate of $500,000 per annum on the rail
with findings of The Public Utilities Commission of Colorado
and
of the United States District Court for the
District of Colorado.
Accruals in
excess of this amount cover bus and trolley coach operations on
a mileage basis.
Note
system
in
i—Depreciation
accordance
"HrfY.
cent
way
toward
War And Peace
time
*
(thousands of passengers)
286.4
1941
218.2
308.6
19340.J_;„
connection
this
In
This
be
<
lb.
Mail
lbs.
AND
Orleans
last
as
miles
June
Ended
carried
Passengers
Revenue
1,542,325
Total
1941-
1940.
,
16,079
24,219
5,557,050
95,552
115,748
RECORD
operating revenue--$48,000
9,600
income-
Earned
per
1941
$607,000
d56,000
.
d$0.19
'share.———
—'•»
1,412,599
and
NET
''
;j
'
;
Houston
between
news
ing with pride to the new
via .Shreveport
,
Tomorrow's Markets
❖
The
declined to about 112.
increased,
and
optimists began
looking around for arguments
to sustain them.
Says
sis
#
#
(
"... *
•'
In the week of Oct. 17 the
GROWTH
-
market
.
•
Years Ended June 30
lost
as
many
statistics.
;
,,
,
the
>
Market top
arm
question will undoubt¬
days later the aver¬ edly crop up now as to wheth¬
the cocksure
condition.
YEAR
FOUR
A few
Nervousness
Walter Whyte
in fair financial
the company was
and New
Louis, Memphis
:•
ages
>As last reported,
stock.
common
900-mile
a
or
bul]
si-* " % ' ❖
■
was
.
Chicago
we
Studying corporate
market.
A new line
and Memphis
Miss.
Jackson,
a
figures also has its limitations.
Profits reported for any last
quarter is never a guarantee
for future quarters. It all adds
up to this: If you want to
make money in the market
then follow the market, not
June 30
2,019,230
Net
ourselves.
36,616
3,683,029
OPERATING
to¬
We sink
.
1,201,531
885,147
2,445,314
92,200
AND
learn
later
j._,
(lbs.)——
carried
Mail
victory is
morrow^ defeat.*
couple of Jap ships today and
666,683
miles.
passenger
the fortunes of
than
Today's
war.
30
flown——_
152,001
,
certain
!
reported.
1939
.
St.
via
Capitalization is, made up
notes
payable and 300,000
shares of $1 par common stock.
Financial condition was only fair
667,770
31
Dec.
operates
between
one
Years
Revenue
opened in
Earned
/ "Net Assets March, 1941, adding some 55% to
Per Share Dividend Per Share
mileage operated.
Capitalization
$0.11 '
"Nil
$8.22
consists of $175,000 notes payable,
0.19
Nil
3.62
d0.45
Nil
3.34
32,773 shares of 7% cumulative
convertible preferred stock ($10
Southern Air Lines, Inc.
par) and 167,730 shares of no par
Company
Boston,
you
it.
Incidentally, basing market
purchases
on
official war
communiques has yet to prove
worthwhile. Nothing is less
of $80,-
THREE YEAR GROWTH
!!
Chicago &
two
extend-
operates
company
45,989,555
542,342
SHARE
PER
Ended
.,
1941.1
j-oute
36,030,222
115,410
501,758
1,165,688
.
...
This-
will
and
'
DIVIDENDS
Years
Year
-
19,815,703
62,247
carried.!.-
r
•Northeast Airlines, Inc.
routes out of
ever
as
: *
000
V/i
1941
39,023
ASSETS
5V*
8 Vi
914 '
Nil
5,574,708
423,907
flown.,
EARNINGS,
1940
4,661,404
1939
3,486,925
carried
miles
Mail
JUL
0.13
—.
away.
Burlington, the other to Caribou,
Maine via Portland and Augusta,
1940
13,503,727
miles flown__.„_
passenger
Passengers
1940
is
some
7,264,322
573,130
ing to Montreal via Concord
Years Ended
1938
Revenue
RANGE
.
$0.68
d0.02
1942—____
15,365
3,465,316
still
>
EARNINGS
2,692,266
flown..
miles
Revenue
./.
6,981
PRICE
.
saw
1,340,050
835,309
'
DIVIDENDS,
1941——
1941
1940
occur
war news
confused
as
-1,436,400
29,959
——
81
Dec.
Ended
Years
be
30.
June
no
figure
points
Meanwhile the
GROWTH
Ended
five
or
will
is
This
reached.
four
turn
•
108-109
the
until
30,
current ratio of 2.74 to 1.
a
carried,
miles—_—i_
GROWTH
YEAR
FOUR
fair.
with
Price Range
Per Share Dividends High
Low
Yekr
America.
at that date was
immediate wartime
their
is
passengers
Earned
Capitalization at
up to the amount of compensation
received
from transportation
of the 1941 year-end consisted of
$266,667 of mortgage notes due
the mails.
;
The post-war potentialities of serially to August, 1945, and 400,shares
of $2.50 par value
the airline companies are clear to 000
capital stock. Financial condition
most investors. What has not been
clear
miles
EARNINGS,
Kansas City with
tax treatment, being exempt from Texas and the Southwest. Through
connections are maintained with
excess
profits taxes • on earnings
Latin
worthwhile
par
June
1942, financial condition was good
flown-,.-..
Revenue
and
Chicago
given special
noted that they are
of $1
As-of
..
1939
Revenue; passenger
mail and express service in
the territory extending from the
Great Lakes to the Gulf, linking
of net
should
it
Years
provides passen¬
company
stock..
common
THREE YEAR
ger,
airline companies.
income for the
following
of
certain
Revenue
performed
services
on
should bulk large in terms
of 270,000- shares
ing
Company serves major cities in
.with lines extending to
Braniff Airways, Inc.
to
that
indications
show
consist¬
4
-2
Florida
airlines
companies in the field.
smaller
greatly expands, even small profit
margins
the
sketches
thumbnail
of
volume
the
As
42^.2
Low
1
6'/2
5 V*
Airlines, Inc. ',
National
'
.
the
of
in
d0.41
2
!
is* simple,
Capitalization
-
problems as well as
revealed
High
•'
$0.11
1940
itself "continues
market
Mobile, Alabama.
New Orleans via
Price Range
j
Per Share
Year
194l_
$
potentialities
are
75.0
76.2
operations
58.0
1337__r
April
March
371.4
245.9
February
1942,„-_
the
RANGE
30
June
Earned
.
v,
Some of the
(U. S. only)
Carried
dispelling the war¬
' with
which
uncertainties
■
PRICE
Ended
Years
-
long
a
gone
they have been faced.
(Continued from page 1514)"
Passengers
have
months
AND
EARNINGS
The developments of re¬
outlook.
Airlines Favored By
9V I
Thursday, October 29, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
1540
itffy*
-J "t't
got
another
and
shot in
went" back
up
or
er
this
not I still consider
The
bull market.-
a
is
answer
I have mentioned
before,
even
bull markets
don't go up in straight lines.
A 10 point advance can easily
be followed by a five point
decline, And as most people
unfortunately buy stocks dur¬
ing the last part of the ad¬
vance,
the ; subsequent de¬
clines are anything but com^
fortable.
-..."
/
But
yes.
as
...
indicated long be¬
again; this time keeping its
news made pub¬
: 6,895.319
head
well
in the
115-116
Revenue, passenger. miies_!_
lic.
Bottom in sight 5 points
..Li...
*
17,983
23,353
Revenue
passengers
range. Again the bulls began
$314,103.07 $424,115.24
•Gross
passenger- revenue...
lower where profits not ac134,668,391 192,459,984
-Mail
lb.
miles....:—.......
crowing.
Technicians began
*
'■3
❖
42,157,946
56,411,769
cepted stops should be
Express lb. miles........
chortling and everything was
watched.
Time
and
over air mail route 29 to EL Paso,
again I have
EARNINGS, DIVIDENDS, PRICE RANGE
fine again.
•
Earnings
Price Range Texas, and over air mail route 43
known people to buy stocks
On this scene of joy and
Year
Per Share Dividends High Low
By WALTER WHYTE
from Pueblo, .Colorado to Tulsa,
within a point or so of what
•1942....
'
$0.50
light I came out flatly and
Oklahoma, Common stock of $1.25
'1941
d$0.80
Nil
5
3 Since last week, the mar¬
was later to prove a top only
1940..
0.03
Nil
13
6
told you to sell. Having given
par value outstanding in amount
0.15"
0745
,1939..
To get out with losses atlewlsr
of 250,756 shares represents the
ket, like the Chinese in that
you specific prices at where
(Dividends paid June 30, 1942)
sole capitalization.
Financial po¬ yarn who had foreign ex¬ to get in I followed it up with which later proved to have
Contineutal Air Lines, Inc.
been the bottom. A few trades
sition as
reported for;-June 30; change trouble, simply fluc¬ equally
specific prices at
-Operating out of Denver, this
like this and the ayerage ac¬
1941
showed a working
capital tuated. Monday, it managed to which to
get out. As Monday's
1938
1939
1,441,735
flown..^...^
miles
Revenue
4,768,668
9,241,554
r-—
1940'
1941
1,943,951
2,325,817
15,973,503
23,414,438
.'42,019
62,125
$725,791.00 $1,065,358.00
/
;
72,866,000
107,982,000
fore Solomon
■
•
•.
,
.
,
,
.
,
,
v
-
__
commercial
forms of
service
all
provides
company
cross
$17,046.
deficit of
transport
air
the 115.50 mark (DJ) but
market closed
the/profit-tak¬
count is alTwashed
Bull
up.
Tuesday it sank back to ing figures were reached and, markets don't do him any
113.50. That the 115-116 range
V.
7. %
I assume, accepted.
In one good//.
As this is being written the
turned out to be a tough spot
or
two instances the stocks
was ho
surprise. The market you were advised to sell man¬ market has gone off some
more.
The Dow averages are
gave plenty of indications in
aged to add a few points more
the past three weeks that this
hugging the 113 figure and
before turning down.
But I
before your read
would be the case.
this,; will
had no idea of making the ab¬
p r o b a b 1 y* have broken
solute top.
on
THREE
YEAR
GROWTH
Years
Ended
June
30
,
1940
1941
1,211,670
1,414,785
11,393
17,232
5,264,804
1939
Revenue
passenger
Revenue
passengers
Revenue,
passenger
708,373
miles flown.
carried..—
miles.......
3,459,687
EARNINGS AND OPERATING RECORD
■
,
Ended
Years
]
.'..V;
.
Operating
Net
•
,
Earnings
20,000
Air
belt,
company
routes between Fort
now
FOUR
of
shares
load
lb.
Mail
-
i.
re¬
'
-
1940
1941
1,796,706
2,476,569
1939
1,416,546
18,480
22,733
40,068
58,208
6,439,846
10,283,192
15,526,291
39.5'7
45:4%'
302,709
...
342,583
43.0%
52.8%
581,984
441,797
;;^^114r226;522' 132;061,894 150,160,736 216,133,791
miles.—
AND
DIVIDENDS
which .would approximate
Earnings
on
the present
basis.
17 cents
°
;
Per Share
Year
1938
last
5,200,797
carried.
miles....
factor......
EARNINGS
stock.
as
June "30
1.344.870
carried.—"
mail
Lbs.
195,156
common
GROWTH
passengers...
passenger
par
condition'
Mid-Continent
$0.14
■
0.26
1939
Routes
0.30
1.940
'1941
-
Dividend
d0.43
payment of $2 on the
1938
common
stock
1939
and
was
made
would
which
in
ap¬
proximate 33 cents on the present
basis;
capitalization
a
dividend
payment of $1 was made in 1940
operated
and
South
1941
a
all
Dakota.,
that
Passengers
carried
passenger miles
Mail lb. miles
stock.
Express
lb.
miles
—
_
Dec.
v
31.
Financial
par
the
of
common
condition
❖
was
Ended
S;!
#
In the week of Oct.
GROWTH
June
❖
ories to sustain you.
good.
1940
1941
1,340,829
1,983,522
19,764
29,245
5,174,525
3.380,174
64,327,949
7,832,885
71,005,140 122.189,584
...11,641,820 ..12,906,310. -15,165,696 >
>
..■
tt
m.
i
:
;
>
'!
;
(
'
It
*
10 the
*
•
*
.
|
big news given today
up to about 115 or so.
Even as the reason for the current
the rails went up to a new decline is the battle in the
high on the move. Right away Solomons. Its too early to say
market ..theorists, beganpoint- l.how it wilLeome.out. But the,
Dow averages
30
14,134
—
flown..
At
ahead
stood
1,059,642
flown
com¬
$128,600 mortgage payable
1939
Miles
Inc.
this
by
389,399 shares of $1
THREE YEAR
J'ears
Airlines,
pany extend from Minneapolis to
important cities in Iowa, Nebras¬
ka,
Missouri,! Oklahoma,, North
was
old
in
ing
'
1938
Revenue
through. Yet, in all fairness,
profit tak¬
Selling stocks when every¬ it must be
pointed out that in
anticipation of • the body around you is buying or
advancing from 112 to 116
trouble ahead I had no idea
talking'of buying them is not the market has built
up a
of what news or combination an
easy thing to do.
But just reservoir: of
strength - that
of news would bring the ad¬ because it is so difficult; it's
won't be broken up so easily.
vance to a halt. Yet, as I have
the only thine to do.
,
7." ■■■;'' *
/; * ' '
often said before and repeat
Once before I mentioned
When first trying to estim¬
now,
it isn't necessary to that this business of trading
ate the possible lows of the
know all the facts.
Fund¬
in the market is a lonesome
coming decline I decided 104amental
causes
eventually
job. * Mass opinions are more 105 would be seen. Later, in
make themselves known. The
often wrong than right. And
rechecking the past market
trouble-lies in the fact that
the man who would cash in
performance, I raised it to
markets have nasty habits of
paper profits must of neces¬ 108-109.
Up to this writing I
anticipating.news, not reflect¬ sity be a lone wolf. Of course
still see it that way. So, until
ing it. Of course this doesn't there is always the possibility
these figures are approxi¬
hold true always. Unexpected
of losing-a good position. But
mated, I hold new recommen¬
events
can
hit the market
you
have
to
take your dations in
abeyance.
with a sock that can leave
chances.
You
can't
have
*
you dizzy.
But by and large everything.
Ideal conditions
Meanwhile
readers
who
the market has its own way of
never exist in the stock mar¬
still hold stocks should not
reflecting. events which may ket.
If you wait for them
forget the critical levels giv¬
be known to only a handful of
the chances are you'll be left
en here last week.
people.
behind with a bunch of mem¬
&
#
When I advised
Cincin¬
Capitalization
equipment
ported was only fair.
Ended
flown...
no
Financial
YEAR
Years
Revenue
______
purchase^ obligations and
operates
Worth, Dallas
1941
$715,000
d35,000
1 d$0.14
,
,
of $130,000. of
consists
Monroe, La,; Jackson and Meri¬
miles
-
,
-
$0.18
*'
nati and Knoxville.
Texas; Shreveport and
and Tyler,
,
37,000
dian, Miss.; Birmingham,
Corp.
Originally organized to carry
dusting operations in the cot¬
Passengers
.1940
$534,000
v $301,000
share....d$0.63
common
Delta
Revenue
-
1939
-
$223,000
on
ton
-
.
—dl2,000
per
L
3d
June
.1938
.
revenue
income
%
r
)
o
.
>.
.
managed to get
.
>
-
.+T'
More next
Thursday.
—Walter
The
rThe
irticle
time
views
do, not
coincide
Chronirlo
Whyte,.
expressed
in
this
necessarily at any
those of the
with
Thov
are
presented
thosa of the author onlyj..
,
as
•
.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4120
156
the Federal Government for the
tionally imperative in view of the
Auditor
prosecution of the
Municipal News And
many
problems/ investment and
otherwise, arising as a result of
warning that
is
war
con¬
stantly increasing in volume and
Notes
the
effeet present low interest
may
(Continued from page 1520)
1943 issue of primary road
,
ipal market still at
bonds
totaling $8,248,970, includ¬
ing interest, would be paid next
year despite any large reduction
in
advocated. With the munic¬
was
relatively
a
report
out,
bonds
Philadelphia
lasts
can
be refunded &t a favorable
now
interest rate.
$1,384,970
will
out
come
of
for
Payment
interest.
in
a portion of the
gasoline tax collections.
• r
"
Porter; State Comp¬
troller, predicted that with gas-,
oline tax collections cut in half
and
one-third
a
vehicle
in
cut
motor J
registrations, the State
have
enough funds to
would
maintain
its
highway
nance program
service
mainte¬
and to meet debt
the
on
bonds.
(fiten
.
road
primary
very
who, on the basis of
their
background and practical
experience, are largely unquali¬
fied to adequately conduct the af¬
fairs of the position to which they;
aspire. Fortunately this cannot be
said, of the. Republican candidate
for the office of Comptroller of
the State of New York, who is
Frank C. Moore, a member of the
firm
of
Dillon, Vandewater * &
Moore, municipal bond attorneys
of
New
York City.
As to Mr.
Moore's qualifications for the post,
registrations and
C. Fred
are
individuals
vehicle
motor
office
public
■■
The
Highway Commission, how¬ the
subject was well covered in
had submitted a budget to an
editorial
in
the
New
York
the Governor calling for an in¬
''Herald Tribune" of Oct. 22, from
crease of $400,000 in maintenance
compared
with
$4,835,900 spent this year.
Gasoline tax collection
this
year
$800,000
.
which
The Commission asked for
$5,234,066,
are
behind
so
Zollar, Vice-President ' of
Davis. & Co.
to range around
holders, have resulted in the
cumulation
than any
$18,500,000. This
:
of
The
bankers
same
of
manag¬
rates
of
interest
thereafter.
the
to
new
1975
The
callable by
dates
the city
beginning
on
had
persuaded thousands of
themselves
their
as
counsel
very rare
ex¬
In
has served
for many towns and
been
of
has
He
numerous
including
Commissions,
State
finance, one
the extension of civil service,;
one.
on
financing.
member
a
of
knowledge
exceptional
municipal
on
and the Mastick
Commission for
Revision of the Tax Laws.
the;
Mr.
in
city
has
Moore
this
"While
office
for
had
an
of
knoWn.
A modest man,
in
terested
The
years,
getting
in¬
done
more
things
than in taking credit for
has gone
voters
for exchange—one series due in
were
1965 and the other due in 1975.
as
them, he
about his affairs quietly
but
with
marked
in
to
this
come
If the
success.
pai^ of the State
to know him
as
well
those up-State
there would be
The plan is calculated to effect little doubt that they would hold
reduction of $45,000,000 in debt him in the same high esteem as
service
over
the life of the bonds
that
included, on the basis of a 100%
exchange of the $140,582,900 elig¬
ible bonds
held by the public.
account any
the city
•
interest saving on the
the bonds eligible
In
States Treasury and the
Admin¬
istration to subject future issues
municipal bonds to Federal
income tax and said there was
of
no
assurance
that efforts would
be not renewed to have such a
provision
revenue
included
bills.
For
in
this
future
reason
and also because borrowing by
from
Credit
;
Analyzed
A
comprehensive . report
on
municipal finances which
should prove extremely valuable
Florida
to
the
l'
: wax*.
/ The annual report of John M.
Dowe, State Comptroller/for the
of the
fiscal
•
In
the
'///:;.■ %
city..
firm, located in New York
City's
policy
tively
of
lections, and
ing
the
(2)
sums
?
based
firm
col-
I
amounted
revenue
the
on
of
during
can¬
:
i
!
that,
first
///
is
of
to
bidder at the sale
was
the
able
cate, and the former house headed
a
nationwide banking group in
the
successful distribution of the
securities.
The
selling group has
"I
the
Dowe
of
due
revenue
to wartime car travel
restrictions,
it
is
reported that the State's
highway department will finish
this year in perhaps the best fi¬
nancial condition in its history.
The reason ascribed for this pleas¬
ant outlook is that the Highway
has
Commission
reduced
its
even more
for future expenses.
The
the
prediction
made
is
department will
that
have
suf¬
ficient funds at the close of the
to take care of all of next
apply toward 1943
Should
this
sible somewhat-more liberal pay¬
to
this
slum-clearance
standing bonds.
•
that*
$10,000,000
clared in
a
revenue
is
pouring
in
to
the
before,
ever
and
that
on
Oct. 1, in place of a $34,718,560
deficit
the
on
the
period
cash
a
excess
of
/%.%///:;;;
$46,227,112.
Income
day in 1941,
same
State had
for
to
up
$58,481,000,
three-month
the
30
Sept.
and
totalled
expenditures
amounted to $26,396,716.
"Abnormally heavy business ac¬
tivity has increased the yield of
nearly every tax source," the Con¬
troller said, "and the discontinu¬
ance of unemployment relief has
one
expense.
of the largest items
Those
combined to
two
factors
give the State
income greatly exceeding its
expenditures."
an
Returns
the
from
appraisal
a
pared, by Welsh, Davis & Co., 135
South La Salle St.,. Chicago, 111.
The need for such
a
guide is addi¬
out help
of
a
cash balance with¬
new
bond sales.
highway officials cau¬
tiously emphasize that they cannot
predict, next year's developments,
and
they decline to comment
on
1
sales
tax,
income source,
a
loss of $2,962,781, as
compared with the third quarter
of
1941.
cline to
Of course,
full
effect
of
permanent
felt in
was
war
of
Riley attributed the de¬
$31,009,754 in
restrictions
on
year, according to a report
just issued by Carroll E. Mealey,
President of the
mission.
to
the purchase
revenue
automobiles, tires, refrigerators,
washing machines and other dur¬
able goods.
The
State Tax
Com¬
July sales had de¬
clined 26%.
The
gallonage
119,931,531 gal¬
lons, in contrast to 196,091,862 gal¬
lons sold a yqar ago. ; Total Augus-t
consumption of motor fuel in the
August
reported
was
taxable
as
State, including all non-taxable
sales, was 134,084,880 gallons, as
against 209,992,954 gallons last
///-;V,,/;/*/..;/;,Z1
year,
The
reduction
cut sharply into
the State's motor fuel
the
showed
with
f
'
Fuel Sales Down 39%
New York State for the first time
State's coffers in greater volume
than
forecast materialize, it will mark
year
out of
year
portion of expected income
The
financial report that
veteran highway employees that
financial struc¬
ture and credit standing of the
subdivisions has just been pre¬
payments each
California ranks high among the :in
August, when taxable motor
States which are riding the wave fuel sales
dropped 39%, compared
of Wartime prosperity, the State
to last
prospective investors in the bonds
of the local taxing units in their
the
projects.
available funds equal to an estab¬
rationing of gasoline
$50,000,060 Mark
California's No.
of
form
N. Y. State's Motor
'
.
California's Cash Surplus
the first time in the memory of
the Department has ever ended
housing
Hereafter local housing authorities
will be authorized to make uni¬
of
report
states
least
present owners and
many
proj-
ments in lieu of taxes of low-rent
lished
have
to
such
will permit.
from projects for that year.
of
maintenance.
much there¬
of
at
removed
road
or as
revenues
that
year's $8,000,000 bond principal
available
the
conservatively esti¬
and interest requirements on its
money
as
by
be applied to a reduction of out-
ex¬
sharply than
its income has dropped and has,
enforced a careful long-range plan
penditures
con¬
ap¬
Treasury having reported on Oct.
14
a
cash surplus within close
Missouri's Highway Revenues proximity to the $50,000,000 mark.
For Debt Service Adequate
Controller Harry B. Riley de¬
declining
been
housing authori¬
loaned by the
purposes.
ects
terminated.
Despite
have
ing authorities to make payments
substantially equal
of the June 30 surplus will also
Nears
workers
now
can
mate"
v
many
Finance
of
Pursuant
and
year
Comptroller
housing
the Federal
projects for
war
by
in lieu of taxes
a sum of ,$1,950,251
transferred during the last
fiscal
the
outright
to normal taxes
requirement,
was
made
essary
applic¬
determined
as
these
those
appropriations converted to
The income of the
tenants generally makes it unnec¬
con¬
continued
Commissioner
proj¬
Lanham Act projects.
war
by
Control."
on
under
ing
for
the
acquisition by the city of
properties of the San. Antonio
Public; Service Co. The Guada-
were^qsked to join the syndi¬
fund
issued
unexpended
propriations
pay¬
FPHA has authorized local hous¬
bonds
or
and
the
Government out of low-rent hous¬
$1,-
special
biennial
funds
acts
makes
with
war
for subsidized rents to be
charged, and on such projects
excess
and
the
Co.
with
other
structed by local
ties with funds
of
of
in
of
out/has
general
of the
State, "after taking into
sideration
finance
not sup¬
are
provides
which
in
uniform
war
As¬
3-f
appro¬
amount
pointed
constructed
Government,
Robert
General:
new
owned
the
At
Section
transfer
investment
to
lupe-River Authority, which pre¬
viously sought to acquire the fa¬
cilities/ endeavored to block the
sale through court action, with the
result that delivery of the bonds
had to be postponed. Following
the bond sale/the firms of Dillon,
Read & Co. and Kuhn; Loeb &
Statutes,
surplus
000,000 to a
syndicate
The loan was. floated
the
fund
been
A. u. Aiiyn & Co., Inc.,
which specified a delivery date of
26.
annually.
enacted
for the
headed by
Oct.
is
In addition to
present period
of Governor
Hurley,
eral
successful
a
large
constructed
acts
on
the 1941 supplement to the Gen¬
the syndi¬
The
years
time of issue, the bonds
be retired at the rate
sembly
settled out of court and the obli¬
25.
offset
to
$1,250,000
A.
Aug. 24 award of $33,950,000
electric light and power plant aiid
Oct.
•
maintained, Mr. Dowe said.
were
Litigation Which overshadowed
on
or
of three
less from the
At the
the
cate
20-year
over a
period
a
suggestion
gations distributed
been
ects
if the present rate of reduction
'
has
A
housing, it
ments in lieu of taxes
or
Antonio, Texas, Bond
Sale Litigation Ended
bonds
plied.
order
within
San
distribution
municipal services
the
to be retired
equal
an
under
period, will be retired
reve¬
of
",,v~
less
priate deduction where certain
' V
■ v
requires
substantially
taxes
normal
supplied
was
...
1942,
there
should be no material change in
the city's favorable current posi-'
tion as a result of operations this
year.
to
debt of $25,000,000, which when
issued less than four years ago
over
the
three-quarters
;/
constructed,
amount
Allowing for this application
of funds, Connecticut's original
appro¬
collection
received
nues
In
stated
to
been
the payments in lieu of taxes of
an
debt, which
$19,385,000 at the
close of the fiscal year.
underexpend-
appropriated.
further
has
30, 1942,
$10,-
of the State's bonded
priation balances have been
celled.
/ ■ ////; ////
The
June
Act, explains the
under which the major
portion of war-housing projects
agency,
of at least
sum
conserva-
(1)
estimating
a
The Lanham
*
000,000 of the general fund sur¬
plus of $13,758,514 will be applied
very shortly to a further reduction
City, reported that this surplus
has been realized because of the
{
ended
year
states that
statement issued Oct. 26
a
municipalities
among
on
municipal
service
such
as
schools/ health, police, fire, etc,,
occasioned by the in-migration of
according to Wainwright, Ramsey
& Lancaster, financial consultants
"
in
housing
payments
public
of
Commission
Connecticut State Debt
obligations and still have
Florida's Municipal
sinking funds.
submitting the plan to the
held
the
than expected.
more money
on
last
Rapidly Reduced
year
of
city, the bankers called attenlion to the effort of the United
is
he
character for the important post
of State Comptroller."
exchange which are held by
for
which
Albany north and west. Few men
are better fitted by training and
This calculation does not take into
remainder
in
gives
of
on
public housing built Under
various acts and
by increasing
contributions to the increased costs
run¬
under
a
municipal budgets; equalizing
and
January 1, 1942, ,or approximately
20% of the total annual budget,
been
his
life has been spent up-State, and
it is in that region that he is best
about 90% of the bonds eligible
,
described
and
local government'
provides two choices
of maturities for the holders of
,
duties,
study
the
representing 'a
municipal
1942 plan
a
and
to
an;
various
1949.
in
the 'conspicuous
to
re¬
cities in fiscal matters and has
optionally
become
giving
employees to
as
bonds range from 1959
but
ferred
in
degree;
addtion, Mr. Moore
3%%
maturities
Mr.
has
College,
honorary
pert in
the
to
$6,300,000
10%
taxes
treatment
reve¬
is
sources
making
of
that
uniform system
tributions which may be expected
in
/.//.:/;Vv
That
<
ac¬
unencumbered
an
cash surplus of over
gas
cambination of educator and
participated in the 1941 plan
to join with them in effecting ex¬
changes under the new plan.
The new plan proposes the
exchange of outstanding bonds,
optionally callable between 1944
and 1953 and bearing interest
at rates from 4%
to 5%, for
same
an
of
to invite those banks and firms
original eall dates and at
Ilobart
him
who
carrying
a
local government
^e\V
securities
such
apply
It is the intention of the bank¬
new
.
astonishing success' with which
effected the exchange of
more than $83,000,000 of the city's
bonds in one of the largest munic¬
ipal refinancing operations ever
ers
of
distinguished
that
he
1941,
'carried out.
idea
he
Moore's work been in this field
him
■/•—r—-
were
the
Before
for
"So
nation-wide
a
duties.
rule of thumb.
banking
group which under the refunding
plan adopted by the city in June,
ers
their
officials* they learned
their tasks as best they could, by
recently
—r;
in
school
to
of New" York.
else—professors of
economy included. Fur¬
conceived
Philadelphia and Lehman Bro¬
thers
a
town, village and county offi¬
cials
Mayor Samuel, and
the City Council by Drexel & Co.
presented
War,
as
year. ;
State-wide movement to edu¬
a
cate
refunding plan providing
for exchange of a maximum of
$162,296,000 outstanding obliga¬
tions of City of Philadelphia for
new
refunding bonds with ex¬
was
World
government, he has taken the lead
in
A new
dates
first
participated
thermore, because, he realizes so
keenly the importance of local
Refunding Plan
Proposed For Philadelphia
call
the
he
one
political
New
tended
of
both
ning less than
agreement with its bond
$1,000,000 of unexpended
since
which
Royal Air Force aviator, and has
the distinction of knowing more
about the practical problems of
local
government in this State
is comparable to the yield in the
1939 fiscal year.
in
from
nue
and
projects and iocal governments by
"giving greater certainty to con¬
highway funds.
Actually, however, the
policy, adopted by Jersey City in
1936
of
sources
pay-as-you-go
each of the past three years
in
fiscal year f
current
follows:
a
prepared for a
in gasoline tax
t
the
Housing
announced
The new policy, it is stated, is
expected to improve the tax re¬
lations
between
public housing
began its retrench¬
collections and about 12% in reg¬
istration
fees — the
two
main
$6,300,000 Free Cash Surplus
of
first
has
projects has been established.
Highway Com¬
new
program it
reduction of 35%
*
State
far
approximately
the record of
Officials expect the
in the
total
as
ment
'^/'\y///;;•//■ V-A-.;'
years
the
Public
Federal
liberal
more
figures indicate it will
lieu
mission
Welsh,
Jersey City Reports
Six
The
Authority
■
:
for
When
copies
"A lawyer by profession, he has
been active in local politics up-
the
$18,200,191 collected in the 1941
fiscal year.
quote
we
for
'•
■,
..
to bring about such a situ¬
ation—that soon, at least.
should be addressed to Maurice A.
ever,
funds.
Requests
FPHA To Improve Tax
Relations With Cities
car use
will furnish one copy to
who is interested in Flori¬
bonds."
da
$55,684,000 of
primary road bonds outstanding Frank C. Moore Nominee
out of $118,186,000
issued since For N. Y. State
Comptroller
1919 by 98 out of 99 counties.
In all too many instances, and
Falling due next year' will be
$6,864,000 on the principal and unfortunately so, the candidates
recent
take a drastic reduction in motor
the supply
as
Smith's
a
heavy road bond commit¬
But their
we
anyone
The State still has
long
as
State's
ments.;
copies of the
available for distribu¬
are
tion, "and
high level, the bankers pointed
revenues.
.
limited number of
a
Forrest"
property .tax might
be necessary by. 1944 to meet the
war.
v.,•</
• .
The bond house informs us that
rates, prompt action by the city
the
1541
receipts in
September collection period.
Commissioner Mealey said the loss
for the month would exceed $3,~
000,000. At the end of eight months
of 1942, taxable motor fuel sales
totalled 992,927,760 gallons—a de¬
cline of about 22% compared to
the
corresponding figure for last
year.
Liquor sales in the State wenj:
an
expected slump during
into
August, the aftermath of consumer
and dealer stocking up in July
when sales soared in anticipation
of the effective date of the State
minimum price law.
The August sales gallonage
liquor
over
24%
alcohol
was
ported
of
of
re¬
as 937,433 gallons, a decline
685,351 gallons compared to z
(Continued
on page
1543)
& FINANCIAL CHRONICLE
THE COMMERCIAL
1542
Thursday, October 29, 1942
Calendar of New Security Flotations
in
COMPANY
of
shares
cumulative
7%
stock,
preferred
value $100 per share.
Address—Trion, Georgia.
par
manufactures,
fin¬
cotton goods in its
Business—Company
fabricates
and
ishes
plant at Trion, Ga.
Underwriting—Courts
Atlanta,
Ga., is named principal underwriter. Other
Co.,
&
underwriters will be named
by amendment.
Offering—The 6,000 shares registered ara
and
issued
being of¬
fered for the account of a corporation and
individual stockholders.
The price to be
paid for the stock by the underwriters and
the offering
price to the public will be
supplied by amendment.
Proceeds—The registrant Is not to re¬
ceive any of the net proceeds which will
go to the selling stockholder.
Registration Statement No. 2-5035. Form
S-2.
outstanding
and
are
lic
cumulative
at
Company
amendment
to
filed
9
Oct.
on
an
its
registration statement
which places the number of shares of 7%,
cumulative preferred
stock to be offered
Following is
Net
from
the
of
000
the company's 7 %'
stock, par $100, is
and
Registration effective 5 p. m., ESWT on
22 as of 5:30 p. m. ESWT on Sept. 1,
participation,
Insurance
filed
has
Co.
registration statement with SEC for 64,086
shares of $10
value common stock
par
Address—San
Francisco, Calif.
Business—Fire, motor and marine
in¬
fractional shares
par common and scrip for
exchange
of
par
75/lOOths
registration
of
ing
shares of
in
certificates
exchange for 67,440 shares of $10 par com¬
of
of
Occidental
Insurance
Co.
share of
Occidental
Underwriting—There
be
Proceeds—To
issued
under
of
plan
A-27 (10-15-42)
JEFFERY
BOULEVARD
under¬
with
statement
certificates
the
stock,
CORP.
shares
163
of
common,
South
Offering—To
be
15,
period
a
1942,
continued
for
to
a
Chicago
connection
in
August
from
years
seven
longer
a
value
par
voting trust agree¬
of
1949,
15,
by
period
j
unless
the af¬
with
SEC
cover¬
150,000 shares, investment trust-full
certificates of participation, series ''S-2".
Address—-50
Congress
St.,
Business—Investment
Underwriting—Keystone
the
Keystone
Corporation
V-/W:
>
Registration Statement No. 2-5057. Form
C-l.
the outstanding
outstanding,
stock.
The
voting trust certificates
representing
stock
the
originally issued
was
the time of the reorganization
and
erty
in
placed
period of five
preferred
voting
a
at
voting
it ad¬
trust
Registration Statement No. 2-5052.
Form
for
a
F-l.
Trustees deem
years.
to
vantageous
further
continue
the
trustees
Incorporated
has
the
with
covering
filed
SEC
or
dates
more
have
were
but
ago,
to
filed
whoea
been
not
unknown
are
or
voting
through
voting trust certificates
of preferred stock,
shares
South
common
ment
for
a
period
a
Chicago
voting trust agree¬
of
seven
from
years
15,
1942, to Aug. 15,
1949, unless
continued for longer period by vote of 51%
Aug.
class
preferred
A
certificates
which
represent
stock
Registration Statement No. 2-5053.
F-l.
Form
'
(10-21-42)
AVALON
deter¬
us.
statement
with
the
SEC
common,
no
mexit
Aug.
for
15,
continued
vote
a
period
1942,
for
voting trust agree-
of
51%
of
from
class
A
certificates representing the preferred stock
Registration
Statement
No.
5054.
Form
(10-21-42)
KEYSTONE
CUSTODIAN FUNDS, INC.
Keystone Custodian Funds, Inc., has filed
registration statement with the SEC cov¬
shares,
value $10 per share.
and
water
State
investment trust-full
by
will be
vehicle
ship all accounts receivable, motor
equipment, rolling stock, real estate/fran¬
In consideration thereof corpo«(
chises, etc.
partnership 4,000
stock, $1 par value,
is also to
deliver to the underwriter, on the order of
will
of
to
deliver
its
capital
$250,000 of its debenture 5s and
plus accrued interest
neb
business,
entirely
within
the
the
notes
re¬
by
1942
'
,
/•
,.
.
ELUCOTT DRUG CO.
ber
Drug
statement
i
,
filed
Co.
with
the
SEC
first
to
be
261,910 shares of
offered
to
common
holders
the
of
are
emptive
rights.
vice
has
Co.
take
as
New
England Public Ser¬
subscribed
for
and
agreed
to
the
261,910 shares, less any shares
be subscribed for by stockholders,
paly therefor in cash at $10 per
provided the proposed merger be-
may
and
to
share
Proceeds—Statement
the
issue
of
the
says
securities
that
now
to
registered
prior
Central
Maine
will
thereupon
acquire,
the
business and all the rights, powers, etc., of
Cumberland.
After
the
merger
has be¬
come
effective, the business of the com¬
pursuant
pany .will
to
an
agreement of
include
merger,
also^tlje Ipusjiness, fran¬
—
cooperative
to
its
whom -are retail
is
Company
drug
members
if
and
the
will
is
in
offer;,to
value
$50
of
Underwriting—The
underwritten.
and
of,
shares
par1
10,000
at
$55
are!
for
commissions
receive fees and
transactions occuring in the State of Texas
the second will receive fees and com¬
missions
as
offering
net
proceeds
added
eral
to
and
funds
of
the selling group
outside of
of
managers
the preferred
Texas.,
Proceeds—No
stock
7-, ,/.
•
.
allocation of the
has been made, but will be
become a part ol the gen~
company
,
Registration Statement No. 2-5050. Form;
(10-12-42) 7 7.
A-2.
amendment
An
that
the
!
-
filed
unexchanged
cumulative,; par
/;/:/ •/":,■./
26
Oct.
preferred
provides!
7%i
stock
share,'
$50,. per
,
will
be,
called for redemption by the company. Any
portion ofB the 11,000 shares of 5% pre¬
ferred
stock
not
exchanged
will
become
a-
part of the public offering. Where a holder
of
7%
5%
y
cash
ference, from
tion
date
adjustment
Oct,
of
the
only,
all
of
1,
to
the
Proceeds
will
be
$250,000
—
presently
$120,000
of
this
the
of
issued.
amount
duction and a decline in the same
lines in the Axis nations,
The
replace the outstanding 6%
which
is
$48,000
being
will
be
Issued
to
buying privilege deposits with the
The
balance,
expenses,
capital
approximately
will become
to
preferred stock
Approximately
eliminated.
additional
issued
retire
after
among the guests at the speaker's
table'were: Evan Randolph, Presi¬
dent, Philadelphia National Bank;
Carl W. Fenninger, Vice-Presi¬
dent, Provident Trust Co.; Archie
Swift/ President, Central-Penn
National Bank and former Presi¬
D.
dent of Pennsylvania Bankers As¬
sociation; David E. Williams, Pres¬
ident,
Bank
&
j
Interesting Situations
Ward
&
Company, 120 Broad-:
New York
City,
memorandums
have just
several
on
Amendment filed July 23,
airline
companies.
Myhr Opens In Minneapolis
to Tha
O.
MINN.
—
Rpy
Myhr has opqned offices in the
Northwestern
engage
in
business.
a
with John S.
Bank
Building
general
to
securities
Bauman & Co.
n»„ ESWT
Oct.
26
Department
that
Brown
Co.
5s, due
to
a
circular
&
Co.,
issued
be had upon
request.
for
The details
of this
issue
are
as
Total
applied for, $893,167,000.
accepted, $504,529,000.
Range of accepted bids:'
'
Total
1959, offer
by
Charles
copies
0.324%;
Low,. 99.905, equivalent rate of
approximately 0.376% 7
discount
61 Broadway, New
from whom
an¬
tenders
High, 99.918, equivalent rate of
Interesting Possibilities
King
a.
Treasury
discount approximately
may
stockholder members.
$qgjistraf{oh effe^iyej U;39
,
follows:
and
Bishop & Co.
York City,
exchange for
.
$500,000,000, or thereabout, of 91day Treasury bills to be dated
Oct. 28, and to mature Jan. 27,
1943, which were offered on Oct.
23, were opened on Oct. 26.
'
M. H.
1942 giving to
or
The
Mr. Myhr was formerly
dollar for
non
Chronicle)
Financial
MINNEAPOLIS,
exchanging the 6% cumulative preferred
stock, par $50, for the debentures on a
dollar basis and
and John B.
of
Co.,
The guests
/
nounced
of
deposits made by
Trust
delphia
Thayer, Treasurer, University
Pennsylvania.
77
Result Of Treasury
ill Offering
interesting possibilities, according
members of the company only the privilege
Granting Annuities; Marshall S.
mm
be
(7-7-421
■
Trust
■,
Registration Statement No. 2-5026. Form
A-2.
&
included Joseph D.
situations
which
they
consider Goodman, of Reynolds & Co. and
a
member of N. Y.
Stock Ex¬
particularly
interesting
at
the
'
"/■
7 77;_" .
present time: • Elastic Stop Nut change. '
Arthur S. Burgess; of Biddle,
(No. 253), Botany Worsted Mills
(No. 252), Peoples Light & Power Whelen & Co., President of Bond
(No. 254), and Wickwire-Spencer Club, presided.
.
;7
(No. 257). Copies of these memo-'
randoms may he had from Ward
& Company upon request (ask for
them by the indicated number),
together with timely reports on
issued
•'
Offering—The new debentures will
priced at 100 and accrued interest
Corn
•
.
way,
working
.
that
vania Co. for Insurances on Lives
company
$78,500
additional
^
•
reports
Morgan, President, Fidelity-Phila¬
-i
debentures,
be
"Inquirer"
dif¬
Approximately
will
his prediction on the
expira¬
the 2%
of
1942,
offer
a
.
pessimism oh
Exchange National
Co.;
Richard E.
Hanson, Vice-President, Pennsyl¬
preferred stock exchanges same for
allow such
preferred,. company, will
holder
for his
ending of the war next year on the
rising strength of the United Na¬
tions both in. war power and pro¬
!
specific
the
reason
He based
Co., Houston, .Texas,
and
State of
The
t
subscriptions
Beissner
will
in
investments
favor
not
per
Mackubin, Legg & Cq., Baltimore. The
first
did
gilt-edged bonds, adding that he
was not speaking of Governments.
gilt-edged bonds.is that the low
yield is insufficient to provide
7 /
;
most people with income adequate
preferred stock is potj
Names of principal to meet the rising cost of living. ;
soliciting
„
he
of
public-
company
on
market, indicated that
stock
the
cumulative,
share, callable
share, presently outstanding
per
j, Mr. Forbes, although bullish
ail
shares
11,000
the
7%
of mil¬
billions of' dollars in¬
public utili¬
yes
ties?"
the
shares
the
common,
for
par,
stock,
the
for
refund
by
for
of
exchange
$50
preferred
in
If
wonderful job
a
causing the ruination
vested in securities of
subscriptions^
the
number
holders
;
"Organized to protect; inves'-
lions,
four
sufficient num¬
right to
subscribed
the
7'
estab¬
here.
You
"Hasn't it done
reg-;
exer¬
each
for
held.
a
cancel
sufficient
a
by
to
subscribed
the
and
preferred,
of
selling
company,
druggists.
Cumberland
County Power & Light Co., a
utility incorporated
in Maine
in
1909, will be merged into the company and
reserves
(Special
Business
wholesale
the
company's outstanding common stock and
6% preferred stock for Subscription at $10
per
share in accordance with their pre¬
stock
not
preferred
lfprk
The
10-day
a
of
which
preferred
is
various
writers
offering price of tho
will be supplied by amend¬
date
'within
common
shares
/ / «■
has SEC
accomplished
investors?" Mr. Forbes contin¬
ued.
$350,000
debentures, due June 30, 1957.
Address—120 Cherry Street, Buffalo, New
and amounts and offering price to
public will be supplied by amendment
of
registration
6%
a
for
under the competitive bidding
rule of the Commission.
Names of under¬
sold
of
of
7
*
tors, it hasn't done a thing except
place one man in jail.
/
■
'
Fllicott
and
be
to
amount
.
the corporation will be used as
working capital.
Net amount received by
partnership will be partnership funds dis¬
tributable among the partners or usable -for
such purposes as the partners may decide ,
Registration Statement No. 2-5Q44. Form
A-l. (9-22-42)
.,
</ v
Suspension
data
(including
hearings)
scheduled for Oct. 22, postponed to Nov. 3,
Maine
of
Underwriting—The bonds
public
SATURDAY, NOV. 14
ering 200,000
regis¬
Street, Augusta, Maine
Business—Company is an operating pub¬
lic utility and engages in the electric, gas
ment.
Aug. 15,
1949, unless
longer period by affirma¬
holders
a
1952, and 261,910 shares of
par
bonds and notes
years
filed
Address—9 Green
vot¬
par
seven
to
stock,
common
reg¬
to
a
of
a
of
Co.
1972; $5,000,000 tennotes, maturing serially on July
1943
a
Address—10 South La Salle St., Chicago
Business—Apartment building
Offering—To
be
issued
in
connection
with the extension of
Power
maturing July 1,
1 from
for
ing trust certificates covering 1,025 shares
preferred stock, par $100 per share, and
shares of
Maine
Offering—Public
of
113
M,
jthe present business of
interstate carrier of
an
as
xnotor vehicle.
The new
corporation will acquire from the partner¬
ceived
tration statement with SEC for $14,500,000
first and general mortgage bonds, Series
COURT APARTMENTS, INC.
.Avalon Court Apartments has filed
istration
Central
year serial
La Salle St.,
Business—Apartment building
Offering—To
be
issued
in
connection
With the extension of
on
carry
Proceeds—The
registration statement
a
for
1,056
Address—10
a.
days
mined
and
ship/ The underwriter will purchase the
partnership and the debentures from the
partnership and the corporation and offer
them to the public at prices ranging fron
103.28% for the March 1, 1944, maturity
to
100 for maturities
1948 to
1952, in¬
lesuea
of
CENTRAL MAINE POWER CO.
par value $100, and 117 shares of
stock, no par
F-l.
list
a
whose registration statements
twenty
.
partnership
clusive,
INCORPORATED
Oakdale
tive
below
present
(10-21-42)
OAKDALE
of
UNDETERMINED
We
offering
period.
OF OFFERING
DATES
of the prop¬
trust for a
7.•
7 ;
I Offering—The issuer, a new corporation,
the exercise of its option, will take
$150,000 of the debentures
of the par value of $1,000 each, for the
sum of $150,000 plus accrued
interest to
date of delivery.
Corporation in normal:
course
also assumes liabilities of partner¬
firmative vote of holders of 51% in amount
of
Trucking Co.,, Inc., has
will be afforded
effective
opinion of the company
brokers
CO., INC.
the partnership,
(10-26-42)
shares
being
1942, to defer
upon
ration
investment
share
...
"What
for
pre-emptive rights by subscribing
one
/
.
cise such
for
.
quite proud- SEC
headquarters
in, a
large, lished
communities,' licked New York for the honor.
7/.v /.'/. n// /
and
statement
but
a
shares
Funds
Offering—At market
Proceeds—For
after the
"I-am
gas
towns
istration
payments
of
motor , truck
'. '1—17; ,'. 1-77
Underwriting—Brown, Schlessman, Owen
Co., Denver, Col., is the principal un¬
over
railroads.
s
purchases!
who,
previously' waived
their
pre¬
rights ta subscribe for the new
company
$400,000
merchandise
,of
Boston, under control with Keystone Cus-.
todian
Funds,
Inc.,
is
principal
under¬
writer
of certificates
of
participation in
•
period
Business.—Operation
transport lines-—'
a
Boston, Mass.
trust.
Houston,
produces,
natural
issue of preferred
coun¬
try today is strewn with bankrupt
■
■/;;
,
mental authorities in this country
not
emptive
years?" he asked.
fiyst regulation by govern¬
concerned the railroads. The
(approximately 80,000 out of 158,289)
Co. on Aug. 5, 1942,
derwriter
"The
a
-.
-
cities,
k
Chicago
filed
stock, after reclassifica¬
securities, is to. be offered at $50
share.
The holders, of common stock
have
registration statement with the SEC
debentures," 5%,
maturing
serially from 1944 to 1952, inclusive
Address—2501 Blake.Street, Denver, Col,
&
INC..'1"
ing
trust
building
issued
extension of
for
no
Salle St.,
La
Business—Apartment
with the
voting
shares of pre¬
$100 per share,,
statement
registration
a,
1,471
value
par
Address—10
for
SEC
covering
-----r
FUNDS,
Denver
filed
has
Corp.
Building,
;
Moroney,
for
Gas
the- war
that
the following account of his talk:
"How has regulation panned out
of
per
2-5024. Form
UMCAGO TRUCKING
fund
Offering—The
tion,
or
date
effective
Keystone Custodian Funds, Inc., has filed
BUILDING
Jeffery Boulevard Building Corp. through
voting
trustees has
filed
a
registration
was
of
predicted
The Philadelphia "Inquirer" gave
1944 ■!
share
•
distributes
in Texas
registration and such with^
approved Aug. 19, 1942
•'
from
;
number
and common stock
at $120 per share
Amendment filed Oct. 16,
Natural
Address—Petroleum
and
and
in Europe will be ever next year.
'-
filed an amendment
withdraw the proposed
to
ket
1943, the
GAS CORPORATION
Business—'Company
,
SEC
Sept. 1,
optimism
the outlook for the stock mar¬
on
in recent
value $50 per
par
company
the
DENVER
-~r?
CUSTODIAN
1942,
1,
sinking
15-year
due
public utilities."
Mr. Forbes expressed
registration statement with SEC for- 40,000
shares of preferred stock, 5% .cumulative,;
Mass.
Registration Statement No. 2i5056. Form
KEYSTONE
16,
with
drawal
series "K-l"
principal
Houston
a
notes
cover¬
Proceeds-—For investment
u-iruo-26-42)
MONDAY, NOV. 9
Aug.
* !■
ments in
is1
(10-12-42)
Texas
(6-29-42)
6% %
bonds
of Jan.
as
HOUSTON NATURAL
request with the SEC to withdraw
t^ust indenture data in view of decision to
sell the proposed issue of $5,000,000 10-,
year serial notes at private sale.
On July
trust.
is
Inc.,
A-2.
amendment.
on
Central Maine Power
writer
;
Registration Statement No. 2-5051. Form
ment
Funds,
retire
to retire
used
billions of dollars in invest¬
yes
maturity..
unit
protect investors, "had
ruination of millions,
the
caused
Registration Statement No. 2-5049. Form
proceeds of the series M
redeem
to
ized:.to
price per
interest
accrued
corporation's
Co. $110,000.
net
used
be
A-2.
Underwriting—Keystone Corporation ;of
under control With Keystone Cus¬
todian
of
plus
debenture
be utilized in such redemp--
Treating
&
be
to
of
otherwise
trust-full
Boston,
the redemption on a date
of an unspecifed num¬
by
and Exchange Commission, organ¬
i
,
Underwriting—Kalman &■ Co., Inc., St.
Paul, is the sole underwriter
"
7
"
Proceeds—The
net
proceeds,
together
with other funds of the corporation, are
1942
pany's business.
Registration Statement No.
Offering—At market
Statement filed in San Francisco
and
St.,
of
before Oct. R
1942, an unspecified number of shares of
7%
preferred stock of the company and
for
the
purchase
and
construction of
facilities for the carrying out of the com¬
Boston,
underwriters
are no
exchange
ferred
with SEC
participation,
Congress
Business—Investment
45/100ths share of Fireman's Fund fox-
one
of
Address—50
basis
on
statement
construction
1952
the
offering
Forbes, Managing Director
Fairplay League,
Bond Club of Philadel¬
the
phia last week that the Securities
i
■■■■
Street,
publication
100.50 for
to
average
102.1073
$6,000 face amount of 5%
filed
shares, i investment
150,000
and
supplied
be
Balance
Keystone Custodian Funds, Inc., has filed
a
share
one
in
shares
ill
Pole
Boston, Mass.
FUNDS, INC.
purchase
bonds, the serial notes
Corporation,
CUSTODIAN
KEYSTONE
The
stock
debentures
of Aug. 1, 1936, due Aug. 1, 1956, of Nepsco
Services. Inc., and 10 shares of common of
Nepsco Appliance Finance Corp. $9,100 and
to'acquire all of the 650 outstanding shares
of the no par capital stock of New England
Registration Statement No. 2-5055. Form
Fireman's
for
Fund
30,348
of
basis
on
Fireman's
and
Home;
shares of $10
44,984
California
share of
mon
of
and
C-lf (10-26-42)
of Home Fire & Marine Insurance
common
Co.
for
maturity
acquire 300 shares of the common
to
investment.
Proceeds—For
33,738 shares of Fireman's $10
pay
'
Fourth
North
118
—
told
Offering—Bonds
are
to be
offered
at
prices ranging from lOl^, for the, 1943
Cumberland
bank loan$
of
to
B. C.
of the Investors
Forks, N. D.
Business—Newspaper
Aqciitional net proceeds from the sale of
serial notes and common stock will be used
Offering—At market
Offering—After reclassification of securi¬
ties to offer
1966
and
mortgage
first
bonds, dated Sept. -1, 1942.:
mature as .follows: $12,000 on
will
Address
bonds,
mortgage
with' the'
statement
V/a %
$170,000
has;
Incorporated,
Herald,
registration
a
Grand
on
$2,650,000.
fixed
tion
of
Boston, under control with Keystone Cus¬
todian
Funds, Inc., is principal under¬
writer
!
etc.
surance,
Says SEG Regulation
'J
1952
1,
and
105%!%
announced of $9,275,-
first
due
mort¬
the company which were incurred
The amount to
trust.
Underwriting—Keystone
Sept.
on
-
,
Sept. 1 from Sept. 1, 1943 to and
including Sept. 1, 1951; $62,000 on Sept
pumberland County prior to the proposed
merger and converted under the agreement
of merger into an obligation of the com¬
pany to deposit the redemption price there¬
of in trust for the holders of such shares.
"B-3"
series
•
;
each
6%
preferred stock and
number of shares of 5%%
preferred stocK of Cumberland County at
130% and 110%, respectively, all of which
shares are to be called for redemption by
or
Congress. St.,
L,st
principal
Forks
for
Bonds
unspecified
an
assqciates at 100 and dividends
of
be
to
premium in
be
ber
Offered—Sept. 26, 1942, by Courts & Co.
Business—Investment
ESWT
m.
;
serial maturity
proceeds of the serial notes and the
common
stock
will be used to
pay
par
to
Address—50
filed
as
Net
dividends.
certificates
of
pay
redemption at
amount
facilities
1942
CO.
1942
the
for.
will
INSURANCE
be used
of Cumberland
1960,
to
$9,784,348
made by
ing.
FUND
will
amount
due
in the
series,
County
dates, unless otherwise specified, are as of 4:30
as per rule 930(b).
Offerings will rarely be made before the day follow¬
Fund
face
series,
face
3Va%
a
TUESDAY, NOV. 3
commission
$1,538,060;
date in
a
These
in
4%
premium
P.M. Eastern Standard Time
Fireman's
of 5:30 p.
as
■■
Grand
.
SEC
Power,
list of issues whose registration statements were filed less than twenty days ago.
These issues
are grouped according to the dates on which the registration statements will in normal course become effective, that
is twenty days after filing except in the case of the secur¬
ities of certain foreign public authorities which normally
become effective in seven days.
FIREMAN'S
the
the
$1,494,000
gage,
Oct.
and
24
1942
GRAND FORKS HERALD, INCORPORATED
the financing in ac¬
merger
plan recently
proceeds of the series M bonds will
be used to pay principal and premium in
the redemption at 105 %
on Oct, 1, 1942,
underwriting group to
stockholders is $95 per share,
selling
plus
14,
Net
by the
paid
Oct.
on
follows:
The shares are being offered for
the account of certain stockholders.
Price
be
Cumberland, the
which
will
have
of
from
with
with
filed
delivery.
to
proceeds
cordance
per share
plus dividends
Sept. 15, 1942, to date of
$100
accruded
given
(8-13-42)
Trion
price of
preferred
offering
of
properties
existence
ceased
of
preferred shares which each has agreed to
purchase are given as follows: Courts &
Co., Atlanta, 1,000; R. S. Dickson & Co.,
Inc., Charlotte, N. C., 1,000.; Kirchofer &
Arnold, Inc., Raleigh, N. C„ 950; Milhous,
Gaines & Mayes, Inc., Atlanta, 500; Wyatt,
Neal & Waggoner,
Atlanta, 500; Brooke,
Tindall & Co., Atlanta, 450; J. H. Hilsman
& Co., Inc., Atlanta, 450; RobinsonHumphrey Co., Atlanta, 400, and Clement
A. Evans <S? Co., Inc., Atlanta, 246 shares
In an amendment filed Oct. 21 the pub¬
Company has filed a registra¬
statement
with
the
SEC for
6,000
and
separate
original registration statement
underwriters and the number
The
The Trion
tion
chises
of the 6,000 shares named
at 5,496 in place
OFFERINGS
TRION
THE
:■
Average, 99.906, equivalent rate
0.373%.
of discount approximately
(47% of the amount bid for at
accepted.)
|
There was a maturity of a sim¬
the low price was
ilar
issue
of
bills
on
Oct.
amount; of $350,308,000.,
28
.•
r
in
/'
Volume 156
COMMERCIAL & FINANCIAL CHRONICLE
Number 4120
Exchange
Weekly Firm Changes
"
issued on
Oct. 27 regulations clarifying the Administrative responsibilities of
the War Labor Board rind the Treasury Department in controlling
Salaries; and limiting individual salaries in 1943 to $25,000, after pay¬
The
Board
in
and
the
Treasury
it
Department
regulation of salaries and
With the limitation
to exceed
$25,000
tain" taxes.
a year,
after
*'"T
*
'
salaries
on
to
be
"This
;
applies
a
only
because that is
from
income
Oould be affected only
of
bidden
'F.
tinue
L.
Treasury
'
creases.
"9.
sources
This
as
for
ones, .except
applies to
as private
specif-1
well
"1.
The
*
regulations forbid
to
employee
any
ically fixed
the
of
by
Federal
State
or
amount' of salary which, after de¬
duction of the Federal
income
President
exceed
:
the whole
On"
salary
salary, would
tions
where
which
be
can
However; the Presi¬
for sponsibilities:' ■
: -; ' :
<
"These regulations bring under
the War Labor Board:
utilized
*
"A.
Additional payments of sal¬
Wage payments and
■
of
their
from
in¬
Mr.
considered
an
,
of
and
on
the
national
motorists
the
individual
form
taxes
of
and
motor-vehicle
license
New York
members of the
•
will
in
Exchange,
'partnership
Nov.
5.
be
individual
l\.
\
trend
the
of
war
period, expen¬
highways, which
are
taxes, will be curtailed owing
the
to
shortage' of labor and of
materials.
However, the
minimum
and
construction
tenance of transportation
for
necessary
war
main-*
facilities
will
purposes
probably be large enough to make
the
total'
user
fTom
revenue
taxes, aided* by
tourist
Hade
as
highwayflourishing
a
* well
as
Ih
decrease
Motor-fuel
monly
1941, the upward trend evi¬
dent
for
many
10%
a
from taxes
continued,
years
rise
in
collections
automobile use.
on
corresponding
rise.
in.
A
revenue
less
that
than
in
highway-user tax collections.
high tax
rates.
with
Municipal Mews And
For
source;
coL,
its
orr
'v,..;:
revenue
least
increased
example, Florida, received 48% of
to'
firm
this
on
offset—at
parallel
for
critical
ily
in-
automobile
on
largely paid for out' of automobile-"
taxes.
State-
in
decrease
be
During the
ditures
user
•
the
to
collected
Stock-
admitted
tend
local
Some
the
will
excludes
of
At present it appears
that
from1 takes
or more than
one-fifth of all State income. This
shares
uncer¬
-business activity.
contributed—in
sales
or
sys-
lections from other taxes which
condi¬
motor-fuel
of
welter
a
the
taxes
State fiscal
on
temporarily—by
activity
taxes—$1,210,000,000,
,
likely
users
limitations
defense
the
prior
predict
to
automobile
raises
come
,
economic
attempt
of
economy.
"
arc
and
improved
tions,
Norton, it is under¬
as
1941, before
taxes
about
tainties growing out of artificial
factors
induced
by
the
war
22%
aggregate
gasoline
priorities
fect
firm, to Eugene
be
will
sales
called
alone
foim
taxes—com¬
"gasoline"
one
the
of
taxesim¬
most
portant sources of State revenue,
aggregating $860,000,000 in 1941,
or
16% of total State revenues,
local
excluding
shares of shared
only the
from other tax sources caused the
taxes.
ratio
Moles
without Undue hard¬
ship.
"3.
by.
which obtain
—
remain
their impkct
I
»terns
rationing par¬
tially vitiated the stimulating ef¬
Co., 25 Broad St.,'New York City,
The
this
will
Any
future
fact that only
States—Nebraska
the
more
In
of
Mann, for many years
office manager for B. H. Roth &
:onrmliance with the regulations."As to the Administrative re¬
the
this purpose
member
as a
Norton
ments
contribu¬
recipient of the
salary has no other sources of in¬
come
of
the
Treasury asking that future .pay¬
of his salary be made in
ary may be made to take care of
charitable
advised
dent has Written the Secretary of
"2. Additional payments of sal¬
customary
was -
.he director:
$25,000.
$25,000".
exceeding
of
Phillip
Federal employee With a statutory
taxes
of
Idaho
to
in the immediately
as
years.
is
as
States depended even more heav¬
The President is the only
statute.
an
transfer
Mann To Be Roth Partner
salaries
*
payment
proposed
,
Harry
W,./ Sack, partner
in
Strassburger & CO:, San Francisco,
died on Sept. 9th.
;
regulation
public1 salaries
by taxation
which requires an act of Congress.
for¬
are
1
*
or
considered to¬
Co., New York City,
act
floor broker..
along with'other salary-in¬
the
two
membership of Theo¬
Weicker, Jr., partner in E.
Hutton & Co., which will con¬
stood,
Our
The control'
other'
The
*
Nov.- 5th.
proval
salaries
to'
extent of
the
power under the act.
Of
limit:
year
revenue,
not located in the South.
&
aries at this level without the ap¬
cer¬
of
source
and
dore
'
"As t'o the $25,000
the
Exchange
for this
$25,000
at
Florida.
day. Both are1 partners in R. Swin¬
into effect
put
in
nerton
reasons,
impractical
36.3%
same
indicated in the
Radcliffe
on
of
come
before*Jan: 1, 1943.
However, in
the meantime,' increases in sal¬
;
-
be
taxes
alter
salaries not
on
would
limitation
that
H„ Moeller will be
price-control act
v"8. * For Administrative
this
alternate'
as
revenues
8.2% in California to *
high
Exchange for Richard
floor of the
-■
the second
of
re¬
the
of
The Southern Stales^ it i^
noted, *
place the greatest reliance on »
Exchange
following
the
proposal
Swinnerton act
The official sumfhaty of'the regulations i'S'sued' by; Mr. Byrnes, with President Roose¬
velt s approval, "follows:These regulations deal princi- ished under the penal provisions
sponsibilities given the War Labor
announced
low
a
weekly firm changes:
ment of Federal income taxes and' other expenses.
li>ally with the Administrative
The New York Stock
has
James F, Byrnes, Director of Economic Stabilization,
;
from gasoline taxes varied from
New York Stock
Byrnes Directs WLB And Treasury To
i
Gontrol Salaries, Setting $2S,@0@ Maximum
1543
auto¬
unemployment compensation pay
State
roll tax
of
collections
mobile-user
taxes
from
to
total
Of all' State taxes
more
was
productive.
■
(Continued from page 1541)
year
ago.
Beer
sales, on
the
"
"B. Salary payment's-not in ex¬
jother hand, gained 357,685 gallons
$5,000 where such an em¬ to total 28,462,973 gallons in Au¬
ployee is represented by a duly gust.
Corporate income tax rates are boosted sharply by the bill which
were in force on Oct. 3, 1942, and
recognized Or certified labor or¬
Septembercollections under the has finally been agreed upon by Congress. Normal tax remains un¬
alcoholic beverage tax, based on
past income taxes due.
Such al¬ ganization or where the employee
changed at 24%; but surtax rises from 7% to 16%—making normal
lowances, however,' will be per¬ is not employed in a bonafide the August, sales by distributors, and surtax 40% instead of last year's 31%. Excess profits tax exempt
were
down- $960,675, due princi¬ tions based on invested
mitted only where the recipient of executive, administrative of pro¬
capital are reduced. The rate of excess profits'
the salary has no other' sources fessional capacity. : V
" ' 1' pally to the decline in liquor sales. tax rises from last
year's scale of 35%-t'o-60% to a new flat rate
"All other salaries come under
Of income which can be utilized
Consumption of cigarettes in the of 90%.
<$>—
1
for these purposes and only where the jurisdiction of the Treasury, State, as measured by sales of tax
Despite the sharp increase in gether with the 10% post-war re->
the recipient can show that he is Department.
"
stamps, remained stable in Sep¬ rates, the tax bill is favorably re¬ fund) to cushion the changeover
"This division1 of responsibility
Unable to meet these payments
tember, compared to last year. garded by
many people, and the to peace-time activity for many
without disposing of assets at a was worked out by the War Labor
Receipts from the cigarette tax stock market has been able to companies.
totalled $2,196,057.63; last month, work into new
Substantial loss, involving undue Board and the Treasury Depart¬
A
normal-and-surtax
rate
of
high ground for
ment."
;
;
'■; /'■„
' a gain of $73,276.15 over receipts the year while the bill was being 40%, plus an excess profits tak
hardship.
•
in September, 1941:.
■IHWii i
"4. No allowance, of course, will
rate of 90%, is heavy
passed.
taxation.
ary may also1 be" made to take care
of payments on
cess
life insurance pol¬
icies and fixed obligations which
Silver
of
Lining In The War Tait Bill
,
.
;
:—
be made for life-insurance policies
obligations
fixed
or
after Oct. 3,
entered
1942.
Where
than
one
will
be
a
Be Brinton Partner
If
more
employer, all his salaries
totaled
$25,000 limit. ■/
"6.
has
person
to
arrive
Theodore
the
at
j
•
Romaine, member
will be admitted to
company pays
the amount in
C.
of the New York Stock
salary
ill excess of these regulations, the
entire salary paid, and not simply
a
—
Theodore Romaine To
into
*
"5.
"
a
Brinton & Co., 1 Wall
York City, members
Street, New
of the Ex¬
change, on Nov. 1st. Miv Romaine
has recently been active as an in¬
of the $25,-
excess
Exchange,
partnership in
000, will be disregarded for tax
dividual floor broker.
purposes.
he
"7.
Violations may also be pun-
was
mons
a
In the past
partner in E. H. H. Sim¬
& Co. for many years.
State
Assumes
Real
York
State
has
rate
bonds
Atoka
1938
1%
and
year
in
paid
the
in
which promise a more or
the
on
1937.
years
1940; 3%%
manent
1939 and
period has- been
less per¬
improvement in the earn-
ihgs fate, it is thought the com¬
The average for the
in 1942.
six
been
pany
about
should' be able to
pay
the
full 6% in the future.
3%%.
INCOME
(9
months
ended
$3,000,000 in local taxes
year
as - the
result of an
amendment enacted by the 1942
legislature and signed by Gover¬
Gross
—
operating
Rents
taxes
1940
1939
$947,788
$355,470
$294,967
$404,055
242,647
264,907
107,687
56,595
234,191
50,925
48,005
year
43,672
33,X)64
27,374
33,697
It
Net:
railway
Other
income
—~
$388,886
$23,163
t$ 17,552
21,295
income!,.:
operating
22,120
19,157
—
$57,446
.
29,732
'
Total-
income
Miscellaneous
$410,181-
J—_—
deductions
interest'
Federal
tax
♦Included
;
$1,605
$87,178
445
598
911
$409,735
49.500
$44,685
$694
$87,178
19;000
8,000
66,000
-
Balance
Bortd
$45,283
...
—
146.190
reserve
railway
tax
accruals.
a
Sept. 30,
SHEET
assumed
the
net
income
deduction is to be made for
period made; and, in case there is no income available for
not to be made good out of a subsequent period.
is
estate
for
armory
pur¬
be
by
the
Will
State
slightly higher than the total
paid by.the. localities in this final
of the
will
cost
tax
the
a
as
local
levy.
State' about
$1,-
the upstate armo¬
$1,750,000 for those
in New York City,- The local tax
load- is correspondingly lightened.
250,000 to
run
ries and about
Effect Of Gasoline
any
the
year,
i
deficiency
is
full
effect
on
State
of the curtailment
rev¬
auto¬
on
usage resulting from the
gasoline and rubber conservation
cannot
determined
be
until data for the 1943 fiscal years
available, the Bureau of the
Census says in its recent analysis
are
of State automobile-user
in 1941.
reau
revenues
The automobile, the Bu¬
observes, not only has
tributed
to
the
economic
con¬
well-
being of the American publ-ie, but
in
dividends for the full
good
1942.—Selected
faxes
American
pay
year
Shares,
Inc., Chicago.
pay.
provi¬
a
addition
it
has
governments their
afforded
largest
of revenue in recentThe
City College Resumes
proportion
State
source
based - on 1936-39
earnings were retained
strengthened. In computing
average earnings for 1936-39, One
bad
year
(say,
1938)
can
be
dropped and: in its place there will
be substituted 75% of the average
of
total
rev-
returns
Consolidated
for normal
Well as excCss
are
ahd
per¬
surtax
profits tak. A
buy
in
may
profit
or
itself in
declaring
,,
.
,
T
....
^
financial
sound
..
„
condition.
Rails
■
cussion
exemptions.
Tele¬
phone,
on
on
earnings paid as divi¬
preferred stocks.
Provisions of the law
renegotiation
were
of
calling for
war
contracts
more
modified in
workable
fashion, thus at least reducing
important threat
and
financial
to
the
an
earnings
structures
of
war
its tax
"carried
used-
back"
to
1941,
retroactively
tax liabilities.
quently,
this
In
to
Nov.
can
and
be
be
reduce
1943 and subse¬
long1
Economic
20
"Can Price
—
Control
Dec.
—
'Should We Return to
a
Gold Standard?"
Dec. 1'8—"Shall Private Investin World Re-
■
Herbert' Spero is
Dr.
Chairman
of the Committee in charge of the
forums.
Arthur H. Spero Dies
H.
Arthur
the
member
Spero,
York
New
and
Stock
of
Exchange,
partner in Spero & Klauber
Broadway, New York City
died at his home at the1 age of 5
a
120
Mr. Spero'
age
had been in the broker
business for the past
20 years.
Ernest Dorais Dead
way
Ernest
prof¬
carry-back can be
instead of one. This
feature' could go a
Economic
American
many
excess
exemptions in 1942
vs.
are:
"German
Work?"
efforts
Losses and unused
semester
—
Warfare."
companies activly contributing to
the
6
Warfare
electric,- gas and water
utilities subject to rate regulation
do not have to pay the surtax
dends
this
Nov.
U£ent de En<!ouraged
can-^abil[tation/?
keep old property valuations for
determing depreciation" and excess
tax
timely problems scheduled for dis¬
uh
going through reorgartization
profits
Lexington Ave¬
the cur¬
rent series, "Who Should Pay For
the War," was, discussed on Oct.
23 by members of the Department
of Economics of the college. Other
17
The first subject of
nue.
it's-
sub-par
bonds without paying a tax on the
pany
various
on
School of Business and Civic Ad¬
ministration,
as
com¬
lectures
phases of "War Economics" have
been resumed at the City College
Exemptions
average
for two years-
years.
War Economics Lectures
Seminar
is paying off old debts.
pany
Rationing Oh State Revenues (16%)
program
computing
real
mobile
1942, disclosed a good current position. Current assets, $493,338.10;
$382,780.68; net current-assets, $110,557.42.
available for payment of interest on the bonds,
income transferred- to other companies or for interest,
other than 20
fixed charge on the Shawnee bonds.
From the available net income
the directors are to set aside such a sum, not exceeding 50'7r
of the net income, as
was
incurred on additions and betterments in the specific year ended Nov. 30, and
sUch sum as Was paid during that period* for operating expenses, rentals, and taxes
incurred in previous years and not included in the operating expenses for the year
ended on such Nov. 30, and the balance is to be set aside to pay in equal semi¬
annual instalments on Jan. 1 and July 1 of the ensuing year interest oil the stamped
borids, provided that no amount shall be set aside for payment of paid on any
Shawnee bond on any semi-annual interest date,-iii addition to the fixed charge, in
excess
of 2 rr of its face amount and similarly with respect to any Atoka bonds in
excess of 3't.
The interest payable from net income is not to be cumulative, and
the payment of less than the rates mentioned .is .t'o ,bfe in full satisfaction, for the
tin
no"
a
coming year the armory
tDeficit.
BALANCE
As of
third helpful factor
mitted
costs
enues
current liabilities,
is
result
$1,000,000
The
in
income
year
For the
Mos.,
A
of
corporation must
any
of the other* three years.
Where
upstate counties paid the base
period is inadequate to
$1,193,870.39 for armory purposes. reflect a
company's normal earn¬
New York City real estate taxpay¬
ing power, relief provisions have
ers this year paid Somewhat more
been made.
This
12 Mos.,
——
Railway
net
dent of the State Tax Commission.
[cents omitted])'
12
•the* amount
which
portfolio of Selected
Shares, Inc., will prob¬
ably* show good* earnings and
is placed
and
•
county and
is pointed
out by Carroll E. Mealey, Presi¬
194F
expense—
an
tax reduction in every
in New York City-, it
12 Mos.,
Mos.,
on
over-all ceiling
companies whose stocks
the
American
new
Obligation of the
counties comprising' upstate' bri¬
gade districts and of New York
407,542
revenue
Railway
the
heretofore
1942
9
80%
in
are
sion that 10% of the excess profits
law, the State taxes paid Will be refunded in the
assumes the expense' af armories,,
post-war period. This refund can
their equipment and maintenance; even
be obtained now if a com¬
Under
poses.
Sept. 30 and years ended Dec. 3l
an
sentative
Lehman.
nor
than
ACCOUNT*
taxpayers of New
will save approxi¬
mately
The
In view of recent developments
(Continued from page 1517)
full
estate
But after such' taxes, many repre¬
thing, the normal and
40%. is much better
than the 55%
proposed* by the
Treasury or the 45% originally
passed by the House. For another,
one
surtax rate of
next
City,
itv-Ada-
For
$3,000,000
Of Local Tax Burden
(to-
D.
Dorais, President of
Stock
and Bond
Montana
the
Company
of
Butte,
Mont.,
died
suddenly at his home in Mont
Butte. Mr. Dorais had been head
of
the Montana
Company
1926.
since
Stock
its
and Bond
inception
in
I
THE COMMERCIAL & FINANCIAL CHRONICLE
1544
Thursday, October 29, 1942
Ft. Pitt Bridge
BIDS MADE ON BONDS WITH
DEALER
Penn. Central Airlines
Convertible Preferred
BRIEFS
COUPONS MISSING
Works
Common & 6s of SO
Mexican External
OR
S. H. JUNGER CO.
Exchange PI., New York
turn the trick. ... .
This is no guess-work. .... . This is official. . . . This is the
information that came out of the war finance conference held
Oct. 19 at New York by the Investment Bankers Association of
America.
The" conference was in the form of a round-table
eral Reserve System can
Proposes Special Bond
Issue To Treasury
A
funds
inflationary tenden¬
been proposed
to the
has
cies
Treasury, of the Reserve.
are
Treasury Department by Edwin J.
investment counsel,
42nd St., New York City.
East
41
total of twenty billion
commercial
ance
companies, The issue to run
years, and to be redeem¬
12
for
able
on
orable
a
basis somewhat less fav¬
the
to
than
investor
$1,500,000,000.
announcement
the
to
of the
bond
the
issue
effect
of twenty
that aftef the total
billion dollars has been
reached, there will be a compar¬
able issue but carrying a some¬
lower
what
coupon."
from
and
money
a
now
more
tion
this
,
bonds.
In
should
issue
much of the loose money now be¬
ing spent and which is threaten¬
ing the success of the fight against
inflation. Furthermore, the bonds
should result in creating real en¬
thusiasm for the purchase of War
Bonds.
■
:
only 25% of this amount is to come
Even if
.
year.
.
.
. . . Of this,
about
sales of special issues to special Gov¬
a balance of $60,000,000,000 to be
it
I; think
of
is
are
necessary
as
becoming more and
long period
that the
evident
more
liquidation in the stock mark-st
in April of this year,
culminated
.
and
the
that
basic
trend
is
again
is to be raised by sales of war
if this is true it should
the campaign is stepped up terrifically, it is to upwafd.
afford an excellent opportunity for
more than this amount can be sold in this one
-■
.
in
issued
(Incidentally, these are the highest borrowing estimates
far. Not to date have we heard anything as severe as this.)
:
■
-
.
\
-
■
'■
to
.
be
.
obtained
from
them, take them out again and
faces us.
.
V''''.-::''■
To.be specific:
of "easy" selling—of just letting the
subscribing and take down issues are over.
big city banks do
... If the recent
As confidence
situated companies.
market
the
to
better
of the
case
antici¬
we
general increase in equity
financing. — Reuben
Thorson,
Paine, Webber, Jackson & Curtis
pate
a
.
.
They make sense.
.
look for
So
an
Fund Committees.
the Victory
.
primary and secondary, character¬
izes the Denver market.
A good
.
.
«
by
International
when
"the
.
.
Expect pressure to get you com¬
New York
.
salesmen come to call,
.
;
•
"
•••
;
Company,
schedules of leading
colleges and universities with 1941
people.
employing four or more
,
.
securities out, it and informed
sources
in the financial district believe. ... There is a bond or
scores.- '
note or bill or tax-anticipate certificate, etc., for every portfolio. . . .
The aim of the drive is to get these into the investment portfolios of
every institution and individual in the United States. ...
Interesting Situations
And don't kid ourselves. . .'.This aim is going to be fulfilled,
American Silica Sand Co., Okla¬
no matter how you may feel about it
. ....
/•
homa
City-Ada-Atoka
Railway
If you don't think you're going to like the new bonds or new
Co., and O'Gara Coal Company offerings, get fully invested in shorts and roll over your matunthe
has a full house ot
The Treasury
have interesting possibilities ac¬ 'tl0S
'■ ' '
-T '■
'
'•
r
cording to analyses prepared by
Or fill up with securities you pick from
Lilley & Co., Packard Building,
But get invested. . . . Or you'll be told
■
Philadelphia, Pa., members of the
Philadelphia
Stock Exchange.
Copies of these analyses may be
from Lilley &
had
Co. upon
re¬
INSIDE
■.1
' ■
.
,,
. .
;
THE MARKET
reserves situation is increasing tendency
banks to draw down their balances with their
correspondents at payment dates for new issues. . . . MoVe
expected to continue, will cause new drain on excess funds of big
part of interior
New York
R. Hoe
city institutions.
common
.
.
.
000,000, or more than
Vicana Sugar
Banks
common
Spokane Int'l R. R.
Dye, pfd.
„
,
.
„
refunded issue, as forecast here weeks ago. , .
will continue to buy these certificates,
percentage holdings, too.
out¬
out¬
rotated on maturity dates. . . .
policy of Reserve Banks of hav¬
ing V2% rate for advances to member banks on security of Govern¬
ments maturing or callable in a year or less, will spread and help
.
HAY, FALES & CO.
Members New York Stock
Exchange
Broadway N.Y. BOwling Green 9-7033
I
Bell Teletype NY 1-61
banks
■ ■
increased
for
make
change in the Revenue Act
not only prove a great stim¬
ulant to the investment industry
shouLd
but
important aid to a more ef¬
National economy and a
an
fective
our great system of,
enterprise.—Sidney
Schwartz, Pres. San Francisco
Stock Exchange & Partner in Sutro
preservative to
free American
Co.
Baltimore, Md.
Under present
ditions,
is
•.
•
security
fundamentally
changed
of
treatment
vestment
a
capital
After
losses.
gains
the
assumes
term"
losses
the
and
an
in¬
position
"long term" holding.
of
As "short
be
may
unsettled world con¬
recommending to
are
individual investor that he
the
applied
"short term" gains and
likewise "long term" losses against
against
di¬
of risks among
savings bonds, municipal and
corporate
securities,
and
wellchosen equities.
We are optimistic
about the future of equities and
his
versify
types
the
that
feel
knowledge
having the
investor,
and
patience
and
selections
make
to
the
courage
through, will reap satis¬
factory rewards.
Business is good
—but it is only good in propor¬
carry
the time and effort put
tion to
it.—Elisha
on
Riggs Jones, E. R. Jones
& Co.
Los
road
Angeles, Cal.
Bonds
had
and
Receivership Rail¬
medium to lower
Preferreds
Industrial
grade
More
have
attention for several years.
our
recently
leverage
we
trusts
have been buying
such as Tri-Con-
tinental and Selected Industries for
hedging
purposes.
We will win
the
war
and the vic¬
should be followed by
a
great expansion of business re¬
sulting in the disappearance of bar¬
gains in the security markets.— R.
N. Gregory, R. N. Gregory & Co.
tory
will
or
Owen & Greenlee Now
With Peters, Writer
ac¬
in
months
six
we
war
DENVER,
tivity, for the Revenue Act of 1942
Writer
COLO,
—
Peters,
Christensen, Inc., U. S.
Bank Building, announce
&
National
the association with their firm of
Lawrence A. Greenlee,
previously
of
Vasconcells, Hick & Co., and
William R. Owen, formerly Presi¬
dent of O'Donnell, Owen & Co.
Both have been in the investment
gains, considerable
market activity may be stimulated
before the year end.
An investor
business in
Denver.
term"
"long
a
profit which he would like
New York may go on list
otherwise
which
near-maturities
Government
dam
Denver
a
great many
and will represent Peters,
Writer
&
Christensen, Inc., in
years,
this week,
..
.(
Split rate permits banks
buy short-terms, borrow on
securities.
might hesitate to
to
buy
market
more
...
quiet,^steady, catching breath.
.
.
.
Still
the
what kind of bond# you're go¬
about latest Government issue but that's water over
much talk
now.
.
.
.
One thing: you know
ing to get now so your confusion is over.
.
.
.
PROPORTION OF GOVERNMENTS
An
inquiry
from
an
Ohio bank involves
the problem of the
proportion of bank resources being put and to be placed in Govern¬
ments.
Answer to that lies in the first part of this column—the
.
...
Feeling is Treasury will have $10,000,000,000 of certificates
standing by end of fiscal year instead of the $6,000,000,000 now
standing.
'. These, then, will be
Split in discount rate and new
71
.
buying,
attractive, safe, carry good rates of interest in com¬
parison wtih bills and longer securities. .. ..
Country banks added to their holdings; New York banks in¬
for they're
creased
United Piece
are
"
f
certificates was routine, amounted to $2,000,,
This week's issue of
This
with
the outstanding lists. .
to. v ...
v
New twist in the excess
on
quest.
set
Border Line and
.
giving
but, after thirty days, sell
original "loss" security and off¬
this loss against the gain taken
his "profit" holding.
W. Pleasants, The
Trust Company
City *
And have a good answer ready if you're not
for they'll have power that if not The upswing in the market proved
expressed, will be implied. . . . (Public relations comes in here again what we had almost come to
The
current
situation in The
too).:■: •-'i.
believe was a lost hope—that there
Franklin Fire Insurance Company
The Committees now are planning an all-out campaign to put
is
money
around for investment
and the Hanover Fire Insurance
over the Series F and G bonds—just as there has been and is a
that needs some incentive to come
Company offer attractive possi¬
drive to put over the Series E's.'i . . You can buy the F's and
out of hiding.
As is customary in
G's.
They're wonderful bonds, carry interest far above that
bilities, according to bulletins just
the initial stages, the attention was
issued by Butler-Huff & Co. of
obtainable in the open market and you should buy them. ...
focused
on
listed securities
but
It's
odd that
a
campaign should be necessary to sell
California, 210 West Seventh St.,
after the usual time lag the over¬
Los Angeles, Cal. Copies of bulle¬
these.
Their value—in comparison with outstanding issues
flow
appeared in the Over-thetins discussing the condition and
and new securities available—is so obvious. ...
Counter market. — Meyer Willett,
outlook for these companies may
The Committees are planning to keep interest up with a con¬ Bristol & Willett
be had upon request.
tinuous promotion effort on war bonds and periodic "blitz drives"
Butler-Huff & Co. is also dis¬
San Francisco, Cal.
to sell new issues in the investment market. . . .
"
'
:
1
'
tributing an attractive football
There will be heavier quotas for war bonds in every State. . . The changed treatment of capital
schedule for 1942, published by
Payroll allotment plans will be put into effect in every corporation
gains in the new tax bill should
The
Home
Insurance
pletely invested.
Ins. Issues Look Good
same,
his
to
of Municipal issues, both
A scarcity
counts.—-Aaron
.
.
intensified sales campaign, to be carried on
now,
can
out"
sound
$4,000,000,000 issue-taught us anything, it taught us that getting out
and
selling 'em must be done now. . . . The "cream has been demand exists, especially for Coloskimmed off and we must go to work and make butter" were the rados, the buying, however, being
words of Allan Sproul, President of the New York Federal Reserve confined largely to institutional ac¬
Bank.
he does not wish
first
the
&
Denver, Colo.
The days
all the
the
in
"INTENSIFICATION"
THE
who likewise
reasons,
under the "first
provision, purchase
additional of the "loss" stock, hold
take,
purchase of sound equities.
Yields on good common stocks are
returns
:
.
And you'll understand why this program
.
commercial
/
re-read those figures, save
Just
again.
-
.
.
.
<-■
1-1397
the
dividend
$24,000,000,000
leaves
Ass'n
HAnover 2-8780
Y.
but has hesitated to
on,
tax
loss which
a
in,
our
help
increase in their assets
an
$48,000,000,000, about half must come from non-banking relatively high, and the recent tax
bill which leaves the normal and
institutions—corporations, trust funds/ insurance companies, savings
surtax rate at 40%
should assure
institutions, etc., etc. I . . That's where the big job of the Victory
Fund Committees will lie.
That's where your pressure will come the continuation of a fairly liberal
That
for
has
foundation for
through
the
lay
customers
to
Of the
from.'.
do
N.
L.
business
our
■■ •
$48,000,000,000 to be borrowed in the investment
market—which is the market you are vitally interested in. . . .
leaves
That
realize
to
on
those
addi¬
attract
.
.
doubted whether
be
much of the
held aside awaiting
Government
on
that they
St., N.Y.
Teletype
to
that the railroads have
We believe
this, about $12,000,000,000
bonds.
absorb
favorable rate of interest
funds.
deficit of $63,000,000,000.
taxes, leaving a
Of
25 Broad
A. Dawson
.
The
public
bonds
...
$3,000,000,000 will be raised by
ernment agencies.
.
.Leaving
borrowed in the open market.
banks.
proposed bond issue should
be well received by the investing
various Victory Fund
currently paying
are
interest with additional
being
retired
by sinking
12%
to
proven
According to the authorities,
so
"A statement to accompany
defaulted and
Y. Securitv Dealers
Members N.
holds
which ends June 30, we're going to need $78,000,- to the life of the nation as ; the
$7,000,000,000 for non-war expenditures, Army, Navy or the required mili¬
$85,000,000,000 and an average weekly spending rate of tary training for all citizens.—John
total of
a
or
the
Series G Savings Bonds.
future still
the
that
This fiscal year,
dollars, but
purchasable by savings banks,
banks, or life insur¬
not
purchase of medium-priced in¬
terest-paying railroad bonds.
We
8
the war savings staff, of the
This, therefore, is "it," and here
.
.
M.S. WIEN&CO.
the
000,000 for war expenditures,
Schlesinger,
Special features of the issue sug¬
gested are:
"A 3% issue with an announced
.
years
of investment pos¬
sibilities in bonds that have never
figures:
your
Bought—Sold—Quoted
for three
favored
have
We
much in the way
of
representatives
Committees,
Mexican Interest Arrears Cfs.
Chicago, 111.
believe
.
attended by the heads of the
discussion
attract
upon
.
.
lying idle and act as a
now
brake
issueto
bond
3%
and Internal Loans
going to buy
are
ranging from % of 1% to 2%. . . . The market is going to be sta¬
bilized at exactly those limits. ... All fluctuations will occur be¬
tween those maximums and minimums if the Treasury and the Fed¬
1-1779
Y.
Teletype N.
DIgby 4-4802
States
$24,000,000,000 of Government securities this fiscal year. . . .
Carrying maturities ranging from three months to 10 years. . . .
Named discount bills, notes, certificates and bonds. . . . Bearing rates
Inquiries Invited
I hauo
the United
of
around
MUTILATED
40
banks
commercial
The
.
.
figures on spending alone give us the story. . . .
As for banks in New York and other big cities, they're placing
between one-third to one-half their resources in Governments and
.
buying such issues as certificates. .
sense, as of this writing, has been
Policy makes
Dallas, Chicago,
adopted by(;
Philadelphia and Atlanta Reserve Banks.
...
percentage will go up and up, . . . That's definite. . . . Banks
districts aren't doing so well but they'll have to in¬
their percentage holdings, either because of pressure, of volun¬
tary action or because they have little else to buy.--.'. . Answer,
stated simply, is: place your money in Governments and get fully
the
outside these big
crease
invested.
...
@FedFRASER