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OCT 1 0 194>
118. ADM
H
LIBRARY
New
Number 4114
Volume 156
In 2 Sections
THURSDAY
Final Edition
Hemingway Elected President of ABA
At Executive Council Meeting In New York
REPORTER'S
Association
of
Senate
Begins Debate On Record Tax Bill;
i
Tentatively Approves Individual Bate Rises
debate
Formal
on
the new
tax
was
Council
with
Waldorf-Astoria,
the
at
the
approved
finally
was
Oct. 2,
on
the largest tax
on
of time consumed
that ;Ganson Purcell,
of the Securities and
Exchange
Commission, has .■ de¬
| Report
Chairman
a
had
exercise considerable care
or
his conviction that he
can
to
keep
this will mean
the Commission's
traveling
the
headquarters,
in¬
be any
the Com¬
mission remained in Philadelphia,
volved
more
likely
not
is
to
than if the head of
judging
Mr;
current gossip.
Purcellr it is understood,.
by
has been a rather
muter
the
to raise
preferable to
$3,600,000,000,
was
general retail sales
a
eqiiitable
features.
Another
important
section of
lengthy
the bill expected to cause
debate
the
is
corporations
as
to disrupt the
of our coun-
sored
amendment,
spon¬
Senator
by
,
things if he is on the
though
mated
Vandenberg
I.Rep., Mich.), freezing social se¬
national economy
curity taxes at their present 1%
try."
-■ •
rate. The Treasury is in favor of
,(The Senate on Oct. 6 tentatively
increasing these taxes on
em¬
approved
the
Committee's
in¬
ployers and employees to 2% for
creased
individual
income
tax
1943, as is provided by existing
These include raising the
rates.
on
shores of the Potomac.
Even
to
in not imposing such a severe rate
when the Commis¬
domiciled in the Capi¬
commuting
tax
said in
tal, and it is assumed that Mr.
PurceH's
decision arises from
to
our
that all
least not so
much so, as
closer
bill," he
prepared statement, "we
framing
growing in¬
There have been
payroll deductions. Senator George
said that the "Victory Tax," esti¬
tax because of its more
"
dications for some time
was
econ¬
our
omy."
quarters.
sion
interfering with
duly
"In
not serene,
effort to pre¬
from
increases
drastic
causing severe inequities and un¬
headquarters
in Washington again, stirred no
end
of
interest
in
investment
was
bill in history Senator George attributed the length
in its prepara-^
sincere
a
the
vent
his
make
to
"to
tion
to the Senate for
In opening debate
presented
(Dem., Ga.).
was
consideration by Chairman George
cided
bill, designed to raise between
of the American Bankers $7,000,000,000 and $8,000,000,000 in additional revenue, began on the
continued at the meeting in New York on Sept. 30 Senate floor on Oct. 6. The Senate Finance Committee's bill which
ABA Executive
the
Copy
a
succession of officers
The traditional
REPORT
Price 60 Cents
York, N. Y., Thursday, October 8, 1942
W. L
OUR
Section 1
-
frequent com¬
in recent
other way
normal
W.
It.
A.
Hemingway
L.
dency to the
Wiggins
similar advancement of the
Presidents |
r.
Win.
Wiggins
Augustine
the
of
of St. Louis from the First
Vice-^
Association's
Mtv Hemingwayf
five-
divisions.
who
is President of
-
the
Mercan¬
tax
from
4%
to
6%
and
the minimum surtax
6% to 13% and also
from
rate
a
From advices from its
lowering the personal exemptions
from
part:
$1,500 to $1,200 for married
persons,
from $750 to $500 for
single persons and the credit for
President and Vice-Presi¬
v>"
Washing¬
Oct. 6, the New York
ton bureau
"Journal
Section, each of which has its own
from $400 to $300.
slate -oi elective officers .consist?., dependents
Senator George estimated that the
ing of
law.
the raising of
Vice-Presi¬
Presidency of the Association, the advancement of A. L.
of Hartsville, S. C., to, First Vice-President, and the
elevation of W. L. Hemingway
M.
M.
Commerce"
of
said
in
•
.
"The limit
taxes which cor¬
on
would be required to
pay is set in the Senate bill at"
80%" of corporate net surtax"m-~"
porations
broadening of the individual in¬ come, prior to reduction of net
come
tax base by reducing the surtax income by the payment of
As President of the ABA Mr.
in St. Louis, Mo., was
personal exemptions would add corporate excess profits.
elected Second Vice-President of Hemingway
succeeds Henry W.
for "full disclosure."
"The
90%
corporate
excess
approximately 7,000,000 new tax¬
President of the Se¬
His remarks at that time, it was the ABA in September, 1940, and Koeneke,
profits tax rate is set in the Sen¬
payers, with 600,000 more added
First Vice-President in Septem¬ curity Bank of Ponca City, Okla.,
recalled, coincided with Secretary
by a reduction of the credit for ate bill at the same rate, as in the
who
served the Association
as
House bill, although the Senate
Morgenthau's complimentary re¬ ber, 1941. Mr. Wiggins, who is
dependents from $400 to $300.
President of the Bank of Hartg- President during the past year.
marks to the country's investment
It was pointed out in Associated bill
provides that 10% of the
bankers for the job
In making known the election Press accounts
they were vilie, was elected Second ViceOct.. 6 - that "the
t Continued on page 1261)-w*
President
of
the Association
a of the new officials, - the ABA
doing
in
distributing Treasury
new schedule of exemptions means
year ago.
In addition, the Coun¬ announcement read:
War Bonds without any compen¬
that single persons making more
cil re-elected William F. Augus¬
"The succession of the new of¬ than
sation.
index
$9.62 a week and married
•.
tine, Vice-President of the Na¬ ficers was made possible by the
Page
Meanwhile, however, there has
persons
making $23.08 or more
Shawmut
Bank,
Boston, action of the retiring officers
been mounting evidence of grow¬ tional
Bank and Insurance Stocks
1254
will be subject to the income tax.
Calendar of New Security Flotations. 1262
ing antagonism to some of the Se¬ Mass., for a second term of Treas¬ themselves. Except for the office
"Members of the armed services
Investments Trusts
125.*
of Treasurer, the constitution of
curities and Exchange Commis¬ urer of the ABA.
who are below the grade of com¬ Municipal News and Notes
,,..1256
the Association makes no provi¬ missioned
sion's pet projects, such as its pro¬
Our Reporter on Governments, a. .. .1264
The Executive Council of the
officers, however, would
Our Reporter's Report....1249
posed revision of Proxy Rules, in American
Bankers
Association, sion for elections except at con¬ receive additional exemptions—
Personnel Items
.*. ,V.... 1252
the halls of Congress.
ventions, but it does provide for $250 more than a civilian, if sin¬
which was in session at the Wal¬
Railroad Securities
1252
Very
likely,
it
is
assumed, dorf-Astoria on Sept. 29 and 30, the succession in the event that gle, and $300 more if married. The Real Estate Securities
1252
Securities Salesman's Corner.
1255
the Presidency becomes vacant. House had voted to
Chairman Purcell figures he can is the
grant the ad¬
governing body of the Asso¬
Tomorrow's Markets—Walter Whyte
do a better job of "fence-mend¬
Cancellation of .the ABA conven¬ ditional
military exemptions re¬
ciation, whose membership of 117
Says
.1253
ing" in that direction if he is bankers is elected by the member tion at the request of the Office gardless of rank."
Uptown After 3...
....1263
closer to the scene than Philadel¬
of Defense Transportation had the
institutions of the 48 states and
The Senate deferred considera-.
phia. '
the
District
of Columbia.
The effect of freezing the present ad¬ tion of the controversial 5% gross
ministration in office.
Recogniz¬ income
five Divisions of the Association
(Continued on page 1263)
levy—the so-called "Vic¬
Mr. Koeneke and the tory Tax"—which applies to all
are
the National Bank Division, ing this,
five Division Presidents tendered
THE
incomes over $624 and would be
the State Bank Division, the Sav¬
QUICK ACTION ON DESIGN
their resignations to the Associacollected at the: source' through
ings Division and the Trust Di¬
(Continued on page 1260)
AND CONSTRUCTION
vision, and the State Secretaries
weeks, particularly since he
tile-Commerce
sued his last blast on
Bank
and
Trust
dent.
:
Company
is¬
the need
,
'
-
'
-
•
'
.
..
.....
.....
<
(
CHASE
NATIONAL BANK
•
^S0
OF THE CITY OF NEW
V
Invest
REPORTS
SURVEYS AND
FINANCING and VALUATIONS
R. H. Johnson & Co.
'
1
Established 1927
■; 52 WILLIAM STREET
INVESTMENT
San Francisco
DEPARTMENT
Albany
Troy
correspondent
Co.
Wertheim
BROADWAY
31
NEW YORK
REctor
Y. Phone CAnal 6-2610
Actual Trading
Stock
Teletype BS 568-569
York
New
Exchange
Board
Orleans
And
Exchange
of
Cotton
other
AVIATIONS
f
-~
RAILS
Kenya
;
Exchange
INDUSTRIALS
Exchangee
N. Y. Cotton Exchange
Bldf.
NEW YORK
Kobbe, Gearkart & Co.
INCORPORATED
Members
CHICAGO
Y.
N.
DETROIT
PITTSBURGH
SWITZERLAND
45 Nassau
Tel.
Security Dealers Ass'n
REctor 2-3600
Philadelphia
New York
Street
.Teletype N. Y. 1-576
Telephone:
'
Enterprise 6015
the
to
Government
and
Colony
Office:
Head
26,
London,
In
Colony
GENEVA,
Railroad Bonds
of INDIA. LIMITED
Branches
BOSTON
Underlying Mortgage
NATIONAL BANK
Bankers
Inc.
Trade
Exchange,
Commodity
Chicago
Curb
Markets, always
Exchange
Cotton
York
New
New
Deposit Insurance
Corporation
t
Members
York
Federal
Phone—Hubbard 8360
H. Hentz & Co.
New
Member
-
Boston
NY 1-1693
2-2300
Boston
Milk Street
N.
Teletype
Telephone
facilities
MAY & GANNON
York Stock Exchange
New
120
New York
Pittsburgh
Williamsport
service with Chase
Bought—Sold—Quoted
Members
PHILADELPHIA
Buffalo
Syracuse
Wilkes-Barre
YORK
Broaden your customer
'v1st Collateral 5s, 1951
SECURITIES
64 Wall Street,
BOSTON
1858
Republic Service
Corporation
UNLISTED TRADING
AND STAMPS
ENGINEERSand CONSTRUCTORS
Established
A.
S.
WAR SAVINGS BONDS
Sanderson & Porter
NEW YORK
day
BUY UNITED STATES
MANAGEMENT PROBLEMS
Chicago
U.
the
in
with
hi connection
each
India,
and
Subscribed
and
Reserve
Trusteeships
also
every
exchange
and
description
Members
New
of
52
Executorships
York
Security Dealers Assn.
WILLIAM ST., N.
business
undertaken
invited
HART SMITH & CO.
£2,200,000
conducts
and
Inquiries
..,..£2,000,000
Fund
Bank
Zanzibar
Capital.... £4,000,000
Capital
banking
Reorganization Bonds
BiBhopsgate,
E. C.
Burma, Ceylon, Kenya
Aden
Paid-Up
The
in
Uganda
Bell
Hew
York
Y.
Teletype NY
HAnorer
2-0980
1-395
Montreal
Toronto
CUARANTEEP RAILROAD
BO.
Or.
9-6400
Telephone
STOCKS-BONDS
NEW YORK
52
Broadway
N.Y.
1-1063
Teletype
1250
THE COMMERCIAL & FINANCIAL
CHRONICLE
Thursday, October 8;
1942
•.Trading Markets in:
We Maintain Active Markets in U. S. FUNDS
American Barge Line
.•i
Liberty Aircraft
'Canadian Securities,
Lukens Steel
5
V4
Noranda Mines Ltd.
Canadian Bank Stocks
Members
40
New
BELL
York
Security Dealers
Members N. Y. Stock
Asu'n
TELETYPE NY
j
Telephone B A relay 7-0100
1-423
Neio
York
Teletypes NY
Direct
Wire
HARTFORD
-
Inquiries
New York, N. Y.
NY 1-1557
in
the
Phone: REctor
2-8700
Dealers
these
specific
from
members
of
This
the
SEC Chairman Ganson
the second protest to reach
was
'■
tor
:
:A-'v./
•In
)*
his
review of
LOS ANGELES
-
Cities
.
,,
prohibition -against
Invited
letter
to
'
Vr
.
.
/BONDS
House Interstate and
such
action
intended
KEIPER and ZIMM
30 Broad Street
by
Congress
was made by Congressman
George A. Paddock of
Pennsylvania in his letter of Aug. 28 to James
A; Treanor, Jr„ Direc¬
tor of the Trading and
Exchange Division of the SEC.
Ass'n.
1-1288-2173
PHILADELPHIA
-
SEC
in
LATIN AMERICAN
letter written to
An earlier protest
Connections
Issues
on
a
-'-v
Specialists
:
Foreign Com¬
merce Committee with
reference to the Commission's
attempt to im¬
pose its jurisdiction lover
the municipal field in bbvious disregard of
1926
Security
in
BH 198
25 Broad St.
■
Sept. 23.
the
'
.
% Tll llll
Established
BOSTON
Broadway, New York
;
Congressman Lyle
Boren of Oklahoma
Purcell under date of
Spencer
Request
aIIIW ^ ^
Bell
,
Teletype. NY 1-672
II.
Exchange
Direct Wire
165
/
•
Maritime Bldg. Brown-Marx
Bldg.
New Orleans, La.
Birmingham, Ala.
The authority of the Securities and
Exchange Commission to ap¬
ply its proposed bid and asked disclosure
rule, Xrl5Cl-10, to the mu¬
nicipal bond business was sharply challenged
by
v(-
Statistical Data upon
Members
-
Steiner,Rouse&Co;
Congressman OhaBSenges Aufhoriiy Of SES To
Apply Disclosure Rule To Municipal Bond Field
Wickwire
Broadway
'
•' NEW YORK
V
j•
Foundation Co.
'New York
r
'
COMPANY,
Exchange and Other Principal Exchanges
BROADWAY
115
HA 2-2772
Struthers Wells
120
HODSON &
II;IUC.
GOODBODY & Co.
1920
Excliang-e PI., N.Y.
'V
Debardelaben 4s, 1957
O'Gara Coal Co., 5s, 1955
Dredging
"~7Tr^
'V
Members New York Stock
KATZ BROS.
Established
—
'
>
_
Serial
;
"
•
Alabama Mills;
,
" "
Bulolo Gold
*
,
Canadian Pac. 4s-49
"
Winnipeg Electric 5s*65
Missouri Pacific
V
/
:;.//9
t.
Brown Co. 5s-59
for
New York
Telephone:
j
Mr.
WHitehell
,
Bell
,
4-i»95Q
Teletype:
NY 1-636
.
Purcell, Congressman Boren stated that a
the hearings on, the measures
which amended the Securi! (Continued on
page 1262)
:
r
-
Proposed Revision Of
Forecast Earnings Of
Capital Gains Tax
40 Wall Street
Building
Important Market Factor) L The earnings outlook for the 40
Fundamental Changes Seen Wall Street Building, Incorporated
is particularly attractive at
the
In The Rail
present time according to an an¬
Industry r
-
Offerings Wanted
;>.
,
JOHN
C. STEWART
THOMAS
the
as
surviving
STEWART
of
E.
KING
of the firm of HIXON,
partners
&. KING
business
Gpqdbqdy
September
on
30,
1942,
HIXON, STEWART & KING ceased
the
to
firm
&A; Co.,
in
their
Letter,"-v say
_
monthly
that
of
do business.
-
"lows"
the
"Market
picture
war
in
the
"were
composite
Dunkerque and again at the fall
of Singapore.
They contend that
pleased
are
Messrs.
JOHN
announce
that
on
STEWART
and
THOMAS
to
C.
became
in
partners
this
October
1,
E.
investors
1942
before
KING
and
firm.
be
can
the
news
that
sure
.becomes
im¬
the
this
"Domestic
MEMBERS
YORK STOCK
been
EXCHANGE
CHICAGO STOCK
more
action
SOUTH
LA
SALLE
STREET
CHICAGO
•
of
utilities
taxes
972
and
in
permitting
returns
companies, is
The
foregoing
vious
and
the Estate
has
&
at
and
interest
a
that
partner in the
the
and
supersedes
issues.
all
pre•
that
whatsoever
with
in,
merged
the
firm
of
into,
and
It
HICKS
&
reopens the
large
has
proposed
of
no
investors
of
source
PRICE.
there
are
income.
' an
five Added To Staff
il
By H. D. Kmx 8 Go.
H. D. Knox &
New York
City,
Co., 11 Broadway,
The
announce that the
Finance
following have become associated
their firm: Roy R.
Larson,
Everett L. Wendler, Eugene
R.
Delin, James S. Durning, and Ed¬
a
with
ward
W.
Schaefer.
All
York
Oct.
each
Rails," to
15.
The
from
course
in
"Mar¬
begin
course
5
of
offering of
Thursday,
will be heid
Thursday thereafter
weeks,
the
Institute
announces the
seven-session
ginal
were
formerly connected with Hanson
New
to
for seven
7:30
p.m.,
at
Institute, 20 Broad Street, New
York.
& Hanson.
-
At
the
initial
meeting of the
class, Herbert F. Weyth, railroad
analyst of Shields &
Co., will dis¬
the current
position of and
outlook for the Southern
Pa¬
cific and its
securities.
During
the
remaining six sessions Mr.
Wyeth will review the New
York
cuss
Trading Markets in
the
RAILROAD
G.A.Saxton&Co., Inc.
|| 70 PINE ST., N. Y.
Teletype
WHiteball 4-4970
NY
1-609
j
of
dollars ($10).
be
the
New
Finance.-
-
is
ten
Applications should
mailed, with
to; the
course
the
York
tuition
Institute
items
of
of tenant
expense
changes; part ol
reduced
assessment
but
appealed,
already
but
ing year, the increased income
which will be receivable from the
will
over
Westinghouse lease
and above what is
in
now
1944
over
being
re¬
beneficiary
fee,
of
;
Building maintenance—
nsupplies & expenses
50,000
V Commissions
(
the' rails are
faced with
insure
mountable post-war problems and
that
rail
securities as
a
whole
should
All
Estimated
able
leases
5,000
expenses—-
other
,85,000
for
interest
for
econ¬
to
try
ways, shipping and
airplanes, and
the speculative
outlook for rail
securities in the future.
Copies of the "Market Let¬
may be had
upon reouest bv
writing to Goodbody &
Co., 115
Broadway, New York City, mem¬
bers
of the New York
change and other
changes.
v
-
Stock Ex¬
leading
ex¬
s
__$ 184,000
46,000
Also
2%
,
information
pertaining
to
the property.
Copies may be had
from Seligman, Lubetkin & Co.
of
in
the
study
approximate
So. American Dollar Bonds
most
on
attractive
reference
South American Dollar
Bonds has just, been compiled
New York Hanseatic
120
Broadway,
The ' booklet
New
by
Corporation,
York
City.
the
but*
arranges
are
current
Copies
should
of
be had
may
the
booklet,
of
prove
great
which
interest)
request. ;>
upon
Wm. E. Strautmann Is
Now With Glair Ball
(Special
Tb»
to
Financial
Chronicle;
CINCINNATI, OHIO
—
|
,
William'
E.
Strautmann has' become 'asso-!
ciated with Clair S. Hall & Com-s
pany, Union Trust Building.
Strautmann for a number of
Mr;
years)
Vice-President > of
Edward
Brockhaus & Co., Cincinnati.
was
!
-;
'
"■
"
Wm.
/f
Simpson Joins
W. D. Gradison & Go.
(Special
to
The
Financial
Chronicle)
CINCINNATI, OHIO
Terminal
Building,
New
Stock
York
of
was
associated!
Co., Dixie
members
and
Exchanges.
j
—William
S. Simpson has become
with W. D. Gradison &
of
Cincinnati
Mr. Simpson,
the
Cincinnati
for
many
a
Ex-i
years
partner in C. H. Reiter & Co.
J. H. Fisher
a
>
Merged
With Frank Gahn Go.
BALTIMORE, MD.—The
A
or
yield and "high and low" for 1942
showing prices up to the present;
upon request.
booklet
govt
provinces
j
-In addition to this
uable
vari-,
obligations^
states,
contained
change,
lapprox.)
1-110
municipalities and
other issues in alphabetical order;
member
forecast, the
analysis contains much other val¬
.
York
departments,
230,000
outstanding
debentures
omic
sion of post-war
competition from
trucks, pipelines and inland water¬
*$230,000
sinking fund
Ass'n.
NY
countries,
guaranteed
by
the
distribution
for
Ratio
1,870,000
Net—Avail¬
80*
*
fundamentals of the indus¬
are analyzed with
a
discus¬
on
20'/)
therefor/e be avoided.".
'/ '
American
followed
■.
would, of course, be the rail in¬
dustry. v In many quarters it has
been ; fashionable to
assert'.that
Teletype
listing first government and
any possible net cash
refund for prior years taxes which
may be received in the period.1 As
the forecast is only for the ensu¬
Dealers
New
'
ernment
.
In the "Market Letter" the
South
not
ceived from the sublet space (in
"In the immediate
post-war pe-^ 150
Broadway, has not been con¬
instead of
originally expect¬
ing a level of 80-90 on the Federal sidered/";;';"- /'■/
Estimated gross incomes
$2,100,000'
Reserve Board Index of
physical Deductions .(estimated)• > •■/
:
production there are now some
Salaries, wages, etc.i..$320,000
/'•,.. v.'
Real .estate' taxes
reasons to
550,000
>,
hope that levels of 115
V'Ground rent—.—-i__- 705,000 r to'125 may
;
possibly be witnessed /.Light,'', heat/, power
for a period. A
and water
major
.155,000
ter"
cost
such
cost
YSecurity
4-2568
standing dollar bonds of
ous
tables
approximate
We
WHitehall
riod
riers.
pany.
The
an
N.
Broadway
considering
indications that fourth
Central, Southern Railway, Illi¬
nois
Central, Pere Marquette, New
Included
York, Chicago & St. Louis, North¬
in the "Market
ern
Letter" are inter¬
Pacific, Great Northern, Bal¬
esting yield tables on various car¬
timore &
Ohio, and Reading Com¬
BONDS
vacant
;
Marginal Rait Course
i
having
granted,
the .second
charter reports re¬
ports recently released.
////Ly/ >
NY Finance Institute
from
(approximately 20%
estate tax expense on the basis oi
Additionally,
earnings statements
frequent improvement
received
non¬
the
important
quarter
show
leases
new
leasing
commissions
and
have
given effect to reduction in real
held
capital markets to
as
HUNTER & CO.
Members
42
year to end
recurring
provision
securities
from
area
total)
as
only six months qualifies as a
long term capital gain subject to
only a 25% tax is most favorable.
firm of HIXON, STEWART
or
The
es¬
asking ' value of $300,000.
have also eliminated certain
sur¬
consoli¬
for utility holding
beqeficial to many
retention
be
rentable
of
foi
firm of HIXON, STEW ART & KING
consolidated
not
corrects
whether published or mailed,
of William Lloyd Hixon hereby giving notice that it
time been
no
KING
urns
announcement
other announcements,
from
received
may
in
on
dated
Telephone Randolph 5686~~Telelype CG
:
-
Valley
;
to show
signed since May 1, 1942 but giv¬
ing no effect to any income which
have
The Senate
dividends
V
^
sinking fund for the
be
mitigating the tax im¬
corporations, particularly
the provision
exempting preferred
EXCHANGE
pact
231
developments
favorable.
the firm
30, 1942 adding thereto income to
s
NEW
City, according to
a
base the results as shown foi
the six months period ended
June
provement. We quote further from
their- letter:
; .•
HICKS (r PRICE
York
30, 1943.
"In making this
estimate,"
Seligman,
Lubetkin'f
analysis states,>"we have used as
will
begun to discount
have
Utica & Mohawk
:
Ccr;;- Tnc;, 41 Broad Street;
June
openly
visibly
favorable
to
Nations the market
-
New
a
long
United
kin ■&:
Estate
1951
Consumers Credit Service
6s; 1962 '
/"•■'•. '1--"
possible amounts available for dis¬
tribution as interest and for use as
reached at the time of the fall of
lie
6s,
alysis issued by Seligman, Lubet-
timates made by
probably
Schulte Real
ment
business
of
J.
Fisher &
Sons, which
lished
1874, has
in
dated with
Ecmitable
th4
New
Stock
invest¬
Harmanus
was
been
estab¬
consoli¬
Frank B. Cahn & Co.,
Building,
York
members
and
of
Baltimore
Exchanges, it is announced.
and
COMMERCIAL
We
FINANCIAL CHRONICLE
Reg.
•
.
Office
Patent
tU.S.
interested in, offerings of
are
DEALER
William B. Dana Company
BEekman
Herbert D.
3-3341
LiCHTfnsTfin
-
AND COMPANY
Week
One
BRIEFS
Spruce Street, New York
,
High Grade
Publishers
25
1251
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4114
-Volume 156
Public Utility and
Seibert,
T
Editor and Publisher
Industrial
PREFERRED STOCKS
TAX SELLING
EARLY
William Dana Seibert, President
D.
William
'
Riggs,
Business Manager
8, 1942
Thursday, October
twice
Published
day (general news and advertising issue),
with a statistical issue on Monday)
The only
my
,
Chicago—In charge of
Gray, Western Representative,;
Field Building (Telephone State 0613) ^
London—Edwards & Smith, 1 Drapers'
offices:
Other
Fred
London, E.C.
*
1942 by .William B. Dana
-///'
Copyright
Company.
/
recite
Reentered as-second-class matter
Feb-J
25, 1942, at the post office at
New York, N. Y„ under the Act of Mar.
ruary
B. .1879.
•
Subscriptions In United States and
$26.00 per year; In Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain,
Mexico and
Possessions
per year; Great Britain,
Europe (except Spain), Asia,
Africa, $31.00 per year.
•NOTE—On account of the fluctuations
$29.50
J Cuba,
Continental
and
Australia
for
in the rate of exchange, remittances
-and
advertise¬
ments must be made In New
York funds.
subscriptions
foreign
old
an
story,
On
of
Scottish
a
.
Boston, Mass.
NEW
BANK
TITLE
&
&
YORK
CITY
and
TRUST COMPANIES
40 Wall
;
1-2033
thein
smack you
WHiteliall
4-6551
"Times" also stated:-
/• The
Board
"The
at
that
In
REAL ESTATESECUR1TIES
Inquiries
Invited
In
Lawyers
Mtge.
Co.
Lawyers
Title
Co.
Ctfs.
Mtge.
Co.
Ctfs.
Title
Co.'s
Bond
v
&
other
all
and
Bank
Trust
Ctfs.
Participations
Complete Statistical Information
J. GOLDWATER & CO
INC.
Members New York Security Dealers Assn.
39
Broadway, New York,
HAnover
Teletype
2-8970
N.
Y.
1-1203
NY
the day with
other firms helped out
head of the
Street firm, declared yester¬
S.
popular rail¬
Wall
local mills
companies should do day that he
our
which should attract
attention.—-Ralph F. Carr, Ralph Fj
Fort Wayne,
feels
the union."
"Jules
.
''-".''V/ r'y v:':/'</.
strength between the company and
ex¬
.
strike. V
v
this
"The Bache organization
uses
time it can be of no further aid," teletype printers, which can be
Mr. Freund said, "and it looks now : operated by stenographers. These,
as
if it might become a test of it was reported, worked through
services, plus high
capital, are the specula-;
Carr & Co.
Specialists
Are
,
and
features
WHitehall 4-6300
NY
Teletype
may
STREET, NEW YORK
We
.t
representatives notified Max Meyer, mediator,
• •
Ind.
Bache,
orders
„
little difficulty, and
by relaying
By early
traffic was moving so
over
afternoon
their wires.
'extremely grati¬ smoothly that the firm was able
fied by the loyalty shown by the to resume sending quotations.
many employees who remained at
"Mr. Bache declared that the
their posts.' He added that an 'ap¬ firm had been
attempting, espe¬
preciable number' of the employ¬ cially since the declaration of war
ees that quit work on last Friday
on Dec. 7, last, to adjust wages toy
had returned to their jobs and that
the rising costs of living. He said
despite the smaller staff the firm there had been upward adjust¬
was
carrying
on
business
as ments of 10 and 15% at the end of
Distributors
Retail
Attention
was
BROWN COMPANY
due
5s
Interest
Times
1959
7.5
charges
earned
in
1941—Assets
ap¬
proximately $3,SS^-per-bondAccumulated
interest
$100.
CIRCULAR ON REQUEST
USUal."
V',./Yv'/'i
,jV•;,
last year and said the firm had
in, and
The strike; of some 150
em¬ been making other advances regu¬
around Fort Wayne is far from ployees was called on Oct. 2 by larly all spring and summer in in¬
normal we have had an excellent Local 20940 of the American Fed¬ dividual cases.
He showed a list
demand all year for local securi¬ eration of Office Employees, an of wage increases which had been
ties which we consider greatly unr A. F. of Lv affiliate.
put on his desk for approval on
der-priced and also low .and me¬
'
•
'With regard thereto'the "Times" Thursday."
dium-grade rail bonds.
Although of Oct. 3 stated in part:
From
the New York -'-'Herald
DETROIT, MICH. —H. Russell many of our clients have been in¬
"The strike followed a National Tribune" of Oct. 3 we quote in
Hastings was elected to the Presi¬ vesting liberally in Defense Bonds
't..as follows:-.—:——
Labor Relations Board election oh
dency of the Securities Traders which absorbs the greater portion
Dec. 29 last, when two-thirds of
"In the memory of old-time bro¬
1Association of Detroit and Michi- of
funds
received
from
called
the back-office employees of the kers, including Jules S. Bache, 80bonds and preferreds, we are en¬
big commission house designated year-old head of the 50-year-old
joying our best year since 1937.
the American Federation of Office brokerage
house,^ it was the first
Our listed business has picked up
L
Employees Local 20940, /Ameri¬ union strikq in the history of Wall
considerably and we have noticed can Federation of Labor, as their
Street.
■
;■; •:. '
in the past three months that the
"Mr. Bache said last night that
bargaining, agency. ; At that time
investors here are becoming more
the union asked for a blanket in¬ he considered the action of his
security minded and are turning crease in
wages of 40%, according employees, members of the Amer¬
from the conservative to the more
to Mr. Bache.
Told that this was ican Federation of Office Employ¬
speculative
type
of securities—
ees, Local 20940 of the American
Leonard J. Fertig, Leonard J. Ferlless be able to withstand! a sub¬ Federation of Labor, a challenge
tig & Co.
• *
'
from 'unionism' to all Wall Street
stantial falling off in earnings
'There's
no
room
for
without jeopardizing the payment houses.
Grand Rapids,
of interest on the new junior se¬ unionism on Wall Street,' he said
Bell
,
we
Exchange firm
they
now
that
strike of employees of the Stock
would not consider at^
this .time the union's demand for impossible in view of the state of
a
15%,» wage increase for
the the business, the union served noj
tice that
it intended to call a
workers. '"'"r
V..-"
Exchange
Stock
St., N.Y.
;
with the
us,
a
tion Board, .company
that
Increased demand for theiiq
products
invested
COMPANY
York
to
the
traction"
better.
COMPANIES
Newburger, Loeb & Co
New
of
ception
tive
Members
seem
road securities,
MORTGAGE
PRUDENCE
would
Efforts to end
Go. Employees
failed on Oct. 6 and it was indi¬
cated that the New\York State Mediation Board has "withdrawn from'
the case."
The New York "Times" of Oct. 7 stated that according to
Jules;S. Freund, Executive Secretary of the New York State Media¬
Taylor & Co.
FOR
by
Santa
1
of J.VS.,Bache & Co. by mediation
of Howard
change and Proprietor
ALL MORTGAGE
issued
make
of
for
Obsolete Securities Dept.
99 WALL
</'
p ; Settle Strike Of J. S. Bache
house and repeatedly
a pathetic voice, "Will
it ever clear up again?"
The vet¬
eran Captain looked him square
in
thes face and replied, "All I can'
say is that it always has."
;
If we could put this idea across
to the clients, we believe business
would improve and investors would
eventually reap a reward for tak-:
ing a chance under present condi<
tions.—Howard R.. Taylor,- Acting
President,
Baltimore
Stock Ex¬
pilot
asking in
CERTIFICATES
December
Teletype NY 1-5
State Mediators Withdraw From Efforts To
the
It
can
we
down!
Telephone:
.
MARKETS
bids
-
several
days, the Captain had been con¬
stantly annoyed by a panicky pas¬
senger who, had been coming up to
R.
in
Members New York Stock Exchange
•
the
had been raging for
storm
IReal Estate Bonds
>
V
of
you right now smack
Clans—but if you ask
Street, New York
Telephone HAnover 2-4300
of his trips
during which a
one
the Atlantic
across
25 Broad
brokers is to
fellow
captain.
sea
H.
Gardens,
.
I can
cheering statement
make
to
Some
Spencer Trask & Co.
Baltimore, Md.
j
[every Thurs¬
week
a
Victory!
Nearer
DO YOUR XMAS
-
While the security business
-
Detroit Traders Ass'n
Elect New Officers
.
CHARLES KING & CO.
WH. 4-8980
61 Broadway, N. Y.
Teletype N. Y. 1-142
Canadian
In
Specializing
Bonds
&
Stocks
,
,
Traderoi
——
Assistant Trader
We have
ONLY giving
unusually quiet
has been
limited
demand
today's price
the past few yielding high returns.
over
months; however, there seems to
a
curities which at
for
be
better
the
last
are
H.
Russell Hastings
P.
Vice-President
ings was formerly
Association.
of the
,
_
115 Broadway
New York,
paid before income tax,
the investor measurably minimizes
for
firms as well as mine.'
other
"Employees of the firm walked
Trader
advertisement
This
circumstances
appears
be
.
.
the "break-through"
of the stock market in volume on
At this writing
the
lief
upside has confirmed the
of many that we are in
first
stages
of
large
and
a
reservoir
exists
to
we
be¬
the
"bull" cycle.
A
of buying power
think
that
courage
.
We continue in the
belief that
Smith
McAllister,
.
■
.
,
-
or
to
references,
Spruce
Pate,
&
.
.y
Box
Chronicle,
New York,
Street,
Company
WATER WORKS
1952
SECURITIES
Bonds
Price
100% plus accrued interest
Preferred Stocks
Complete Statistical Information
Copies
of the
obtained only from
registered dealers in securities in
Prospectus
undersigned as are
may
be
E. H. Rollins & Sons
such of the
fyis
State'
will doubt-
Inquiries Invited
/
Incorporated
Eastman, Dillon & Co.
Whiting, Weeks & Stubbs
CRAIGMYLE, PINNEY & CO.
Members
Incorporated
Stroud & Company
Incorporated
less.
Many reorganized rails
or
Excellent
conscientious.
Financial
The
firm
member
for
over-the-counter firm.
25
so
earn
trading
active
with
establish trading de¬
4%% Sinking Fund Debentures
me¬
—
would
and
wishes to become
record
partment
-
$2,200,000
Lukens Steel
contacts
firm
M-8,
Due June 1,
dium-grade
bonds,
particularly
Howard rails, offer the best opportunity for
maintenance of steady income and
C. Traywick has become
Vice- enhancement in
price. In all likeli¬
President of Southern Investment hood high income tax rates will be
Company, Inc., Johnston Building. 'maintained for some time to come
that an early termination of the
Mr. Traywick was formerly local
war could not possibly permit pay¬
irianager
for Scott, Horner &
ment of higher dividends on stocks,
Mason, Inc. and prior thereto was when for a time most companies
Inc.
good
Philadelphia, Pa.
Southern Investment
-with
extensive
associated
•
NEW ISSUE
employ this marketwise is
Traywjck Officer Of
N. C.
matter of record only and is under no
an offering of these Debeu&ures for
as
sale, or an offer to buy, or a solicitation of an offer to buy, any
yV/V.'v.QZ such. Debentures.
The offering is made only by the Prospectus but the Prospectus does not constitute an offer by
any underwriter to sell any of such Debentures in any
State to any person to whom it is unlawful for
such underwriter to make such offer in such State.
Hayden, Stone & Co.
CHARLOTTE,
as' a
construed
v
grad¬
ually developing.-—D. Loring Pope,
,
to
bond trader
Unlisted stock and
with
r
N. Y.
Since bond Avenue, 'and this will be a fight
interest is
;V
v
Springfield, Mass.
Ever-
Vice-Presi.dent.
Don W, Miller, McDonald,
Moore & Hayes, formerly Treas¬
urer
of the Traders Association,
was elected Secretary, and Charles
J.
Boigegrain, Straus Securities
Co., was named Treasurer for the
chosen
coming year.
& Hayes
r
Paul I. Moreland, Allman,
ham & Co. was
that the market will pick up.
—P. S. Morris, McDonald, Moore
upon
ex¬
night at his home, 814 Fifth
out at 1:15 p.m. after Harold L.
grade of municipal offerings. when¬ the risk of a reduction in income.
they can be obtained.
It is -—George A. Bailey, George A. Bache. representing all the part(Continued on page 1261)
our belief
that with the tax status Bailey & Co.
,:'V
'W.
of the municipals finally decided
Inc., it was announced by Ray
Bernardi, Secretary., Mr. Hast¬
details of
Bristol & Willett
ever
gan,
opening for
perience, etc.
Mich.
The market in this section
an
Apply by letter
man.
one
Graham^ Pal-sons & Co.
V
"
ONE
*
.
New
WALL
York
ST.,
Stock
NEW
Exchange
YORK
Telephone WHiteball 4-5290
■1252
THE COMMERCIAL
PUBLIC
FINANCIAL CHRONICLE
&
•Thursday, October #,"1942
UTILITY
Forty Wall Street Building
INDUSTRIAL
New York
"
RAILROAD
:
v
v
City
•
(
MUNICIPAL
Illustrated Analysis
,,
on
*
t
-f
'
v
*^»».
request
If you contemplate making
send in particulars to the
-
BONDS
"
:*
Members
CHICAGO
Boston
Detroit
"
New
York Security
New York
Philadelphia
Telephone HAnover 2-2100
Omaha
<
now
associated
Mr. Leary was formerly with
Dyer, Hudson & Co. and
Teletype NY 1-592
DALLAS
—
Sold
Dr.
(Special
Southwestern Life Ins. Co.
;
Southwestern Securities
on
RAUSCHER, PIERCE b CO.
^
DALLAS, TEXAS >
Ft. Worth-Houston-San Antonio
real
.
It
is
v-'m
also
possible that in view
of the domestic
help problem due
to the increase, in
defense
factory
people
will
some
find
convenient
it
more
their
up
apartments
to
and
give
reside
in hotels.
Firemen's Insurance Co.
of
the armed services.
We know of
several instances where such
(Newark)
I. S.
men,havechosen
to
live
wo¬
in
an
apartment hotel instead of- their
former large apartments.
There
are
quite a few well
Rippel & Co.
known
apartment hotels in New
York City that; have bond issues.
Established 1891
-
18 Clinton
St., Newark, N. J.
MArket
New
%
York
208
to
The
Securities Co.
,•
.
Financial
CHICAGO
Chronicle)
if
■
and
additional
5%,
———
Of
the
earned.
Also
after
interest
fixed
(Special
totaling
to
The
Financial
CHICAGO, ILL.
J.
—
Dorset Hotel bonds
a
have
2%
to
a
vides
fixed
provision which
that
such fixed
in
after
ad¬
interest rate
the
Street.
of
(Special
Thompson
interest, operating
(Special
one
third for bond retirement and
The
Rand Tower.
Co.
to
The
Financial
Chronicle)
(Special
v
Ross
Financial
Chronicle)
MINN.—Jack
Mr.
Hersey
was
for¬
many
with
years
Securities
Moses,
Thompson
Co., is
now
cpn-
to
The
Financial
PUEBLO, COLO.
Church
&
is
now
Chronicle)
Berlin
—
with
C.
Hutchinson
Co., Thatcher Building,-^-^r
-r-
one
third for the owners.
flation
a
Securities
CHICAGO, ILL. —Hugo
third
interest,
Ter¬
Ilersey has become affiliated with
Paine, Webber, Jackson & Curtis,
formerly with
ex¬
for
The Alden hotel has
Ross
Corp.,
merly with Harris, Upham & Co.
of
and taxes, any remaining
income is divided three
ways; one
additional
were
to
MINNEAPOLIS,
pro¬
payment
penses
for
Both
Securities
Edward
bondholders participate MesiroW and
Harvey M. Wilson
of the net earnings of the have
become affiliated with Ryanproperty.
*
■
■
"
Nichols & Co., 105 South La Salle
in 25%
The
Dodge
minal Tower.
Chronicle)
and
doing something
viz., saving money in¬
spending it. The net gain
in members' funds for
July was
27.5% greater than a year
ago, and
sinking
about
fund requirement that 50% of the
net income after the payment of
fixed interest requirements
are
H. S. Woodman Joins
it,
stead of
Bislribulors Group
Aniong them" are the Alden, Bea-r
(cur¬
con,
Broadmoor, Dorset, Drake, rently
3V2%, increasing to, ,5%) their War Bond
H. Stanton Woodman
purchases were so
has joined
Granada, MLombardy,;- Madison, must be used to retire
bonds.
much greater that
they defy com¬ the staff of .Distributors Group,
Mayfair
House,r Park., Central, / The fifteen bonds
mentioned parison.
The League advices also Inc., 63
Park Crescent, Ritz.
, Wall
Street;'New.' York
Tower, Savoy are all in the low price field
rang¬ state:
mm:
-..mm
t
•'
City, as wholesale representative.
Plaza', Sherry Nether land and the
ing from 8 on the Beacon to 37 on
Windemerei ,;/,. \ •'
"The $162,984,000 July intake Mr. Woodman for the past six
\ the Alden. At current
3-3430
Phone—REctor
able
dition
Another
source
of
income is
from the wives and mothers whose
husbands and sons have entered
Newark
American Insurance Co.
i
Co.,
estate
employment,
NEWARK
(Special
,
'
Thompson Ross
Co., has joined the
CHICAGO, ILL. — Arthur D.
Mayfield has become
connected
mortgage bonds of New York^ City apartment
with Providence Securities
Cor¬ nected
hotels should greatly benefit
with Webber-Simpson &
by. an;^anticip.ated-.ifrereaMi^9f. busi¬
poration, 3650 East, 112th Street. Co., 208 South La
ness.
With the curtailment of fuel oil and the
Salle Street.
inability to use Mr. Mayfield was
motor cars, because of the
previously with
rationing of gasoline, it seems highly Otis &
Co.!iand prior thereto for
(Special to The Financial Chronicle)
probable that a number of people living in suburban
villages will many years with
close up their homes for the Winter months
Stifef, Nicolaus
CLEVELAND, OHIO —John J.
and, come into town &
Co.,: Inc. /
Fallon has been added to the
\
to live.
staff
The
All Texas Utility Preferred Stocki
INDUSTRIAL
SECURITIES
Incorporated
BRIGHT FUTURE FOR NEW YORK
APARTMENT HOTELS
Great Southern Life Ins. Co.
-
AND
Chronicle)
•
6% 1951
PUBLIC UTILITY
/
,
,
of
Brailsford
&
South La Salle Street.
Republic Insurance
us
.
Financial
staff
New Mexico Gas Co. Com. & Pfd.
Check
The
Ross Securities
Pepper
Dallas Ry. & Ter.
to
RAILROAD
Hirsch,
CHICAGO,
ILL. — Harry
S.
Allen, previously with
Thompson
Quoted
—
MUNICIPAL
ing.
Lilienthal & Co.
Bought
with
Co., in their branch
office in the Empire State Build¬
Dealers Association
41 Broad Street*
Milwaukee
Leary is
Reynolds &
Incorporated
for pub¬
'
YORK,. N. Y.—Cornelius
J.
*'
INCORPORATED
New York
NEW
Seligman, Lubetkin & Co.
A£-ALIYN»*COMPANY
V) *■
additions to your
personnel, please
Editor of the Financial
Chronicle
lication in this column.
2-43SS
...
ST. LOUIS
4
.
Of the fifteen apartment hotels
mentioned above, ten of the bond
issues
y
traded with stock rep¬
a share in the equity
are
resenting
Ownership of' the property.; Be¬
sides being an" inflation
hedge,4
}':
this
SAINT LOUIS
..."
.
,
Bell
5090UVE sr.";/
System
feature is
very/desirable " in-
the event_of .any unusual
.amount
of
increased business.
An
ex¬
f
V
ample
Teletype—-SL 80
of
this
is
the
Washington, D. C. In
organization, each bondholder
100 shares of
Members St.
Louis Stock
common
hotel which
were
The
Exchange
are
the
bonds
stock
3%.-
/
\
Three
Edw. Wichman Joins
that
has
•
of
do
1 in
terest requirements all offer
very
in
excess
(Special
,
;
to
The
Bishop &Go.
Financial
MINNEAPOLIS,
Chronicle)
MINN.
—
ward W. Wichman has
become
sociated with M. H.
as¬
would
as a
Street)
of 3%.
J.
thereto
served
in
a
similar
pacity with McCahill &
the past he
was
head
of
firm, E. W. Wichman
Minneapolis.
ca¬
Co.
his
&
In
own
Co.
in
Form Bates &
N. Y.
Lindley,
Exchange Firm
John G. Bates and Daniel Allen
Lindley
Lindley,
York
have
formed
Bates
&
members
of
the
New
Stock Exchange, with of¬
fices at 14 Wall
Street, New York
City.
Mr. Bates will act as al¬
ternate on the floor of the Ex¬
99
bid
seperate
the
bid
A
ner
in
Taylor,
Bates
&
Co.
for
many years. In the past Mr. Lind¬
ley
was a
partner in Shields & Co.
-
•
a
name
although the
month after mid-year is custom¬
arily a time of heavy new invest*
ments
in
the thrift and
nancing institutions.
second month in
seen
more
•
•
-fa
1
row
fi¬
the
was
Well
as
the
efforts
cumulative
effect
made, earlier
in
Members New York Slock
are
40 EXCHANGE
of 60 East 65th
has a fixed interest rate
An additional 2% is pay¬
Bell
PL.,N.Y.
Montgomery Now V.-P.
'
to
merchandise
ities,"
WASHINGTON,
C.
CINCINNATI, O.—As of Oct. 1,
1942, the William C. Seufferle
Co., Carew Tower, absorbed the
firm of Berman & Co., it is an¬
nounced.
Morris W.
Berman, for¬
merly of Berman
& Co., is now
associated with William C.
Seuf¬
ferle Co.
R. Strauss Will Make
Exchange
of
1
War
ciated with
Ferris, Exnicios & Co.,
Inc., Washington Building, mem¬
Co.,(Inc.
'
M*
Reynolds Willi
Bear, Slearns & Go.
Teletype NY 1-953
Headquarters In Chicago
CHICAGO, ILL.—Robert
Strauss
will
ance
came
out from New York
to
continue to have the assist¬
of
Bernard J.
as-resident-manager,
& Loan Associations
Up
People set aside more money in
savings, building and loan associ¬
ations out of July income than
in
any except one month of all last
year, ahd at the same time the as¬
sociations sold the largest volume
of War Bonds to the
public of any
month
since
their
participation
Chronicle)*'
(Special to The Financial.
month
the
-
-
*-»
less than in the
same
1941, and that this
month
in
a
row
previously with Kidder, Peabody
& Co. and prior thereto was an
officer of Hickey & Co., was with
Hickey, Doyle & Co. and Burr &
Fermor S.
the
Cannon, President
George
sees
in the figures
hope that the backbone
of the country
are
increas¬
ingly "alive to the dangers of in-
F.
Cramer, formerly
officer in the
recently dissolved
firm
of
Waggaman, Brawner
&
Co.,
Inc., Washington, D.
C., is
serving as a Captain in the U. S.
Army.
/'mm;'-!-'-'■',
Chapman
merly
&
II.
partner
Carothers,
Hyams,
3rd,
for¬
of
Hyams, Glas
New Orleans, La.,
has been commissioned
Captain
a
in the United States
Marine
Corps
Reserve, and at the present time
is stationed at
Paul
Don Craft Hew With
Quantico, Va,
ing
(Special
to
The
Financial
CLEVELAND,
Chronicle)
Craft has become associated with
formerly
Co. and
he
was
&
Co.,
non+orl
Mr. Craft
with Goodbody
&
Blyth & Co. Prior thereto
a
partner in Paine, Webber
with which he
-flnr
manv
Ohnemus, former
department
of
Enyart,
Camp & Co., Inc., Chicago, is
serving in the U. S. Army.
sec¬
trad¬
Van
now
OHIO.—Don M.
Collin, Norton & Co., 508 Madison
was
M.
retary and member of the
Gollin, Norton & Go.
Avenue, Toledo, Ohio.
of
League,
definite
,
Co.
was
when
this situation has
prevailed.
Cunningham, people
~
of
third
,/■ m-
....
>/
Reynolds has become associated
with Bear, Stearns & Co., 9 South
La Salle Street. Mr: Reynolds was
began, according to a report of the
United States
Savings and T,oan
League, Chicago. The report is¬
sued Sept. 26 added
that with¬
were
•
In The Armed Forces
secur¬
"
J. F.
,J
DIGBY 4-4950
i-fi
drawals
D. C.—Thomas
become asso¬
Montgomery has
an
Money Invested In Savs.
Wm. 0. Seufferle Go.
Of Ferris, Exnicios
•
*
CHICAGO, ILL. —John Foster
Horn's German Joins
Barron's
•'
the
SHASKAN & CO.
1
of /
was
.
i
ing
representative
Weekly.
*
which had
money
has been financial advertise
years
.
year
:'vv; ^
a
home
It
flowing in than
its counterpart month in 1941, the
previous peak. The estimated War
bond sales of $40,000,000 by the
Associations
in
July was 38%
greater
than
the
next
highest
the
SECURITIES
share of the
this
bers
of
the
Washington Stock
Exchange, as Vice-President. Mr.
January. This
Montgomery was formerly Vicewas accounted for
partly b^ more
President of the recently dissolved
Associations pushing, the sales of
firm of
these bonds than ever before, as
Waggaman, Brawner &
/
REAL ESTATE
remaining issues
not carry
open up Strauss Bros, branch
in
Board of Trade
Building, will re¬
main here
permanently, where he
part¬
:
TRADING MARKETS IN
of
Exchange member.
a
v
high for
new
period,
month, which
-/;
who
formerly
of these apartment
hotel bonds.
and
now
a
change for Mr. Lindley, the firm's
Mr. Bates was
some
inves¬
unit.
'■ V;..
traded under
Bishop & Co.,
worth, whilp
stock of the
improvement in revenue.
The Mayfair House
(bonds
Building.
Mr. Wichman
formerly sales manager for
W.
Goldsbury & Co. and prior
Thorpe
seem
tigating
tures that will benefit their bond¬
holders in the event of a substan¬
was
With the po-r
re¬
tial
Ed¬
10%.
re¬
traded
depression
improvement.,of earningsi
pointed out; in this article, it
equity have, however, other fea¬
M. H.
of
tential
a
time of the year in the entire post-
high yields, i.e. the Mayfair House
$600 mortgage bond plus
a
represented
levels^ The bonds. with fixed
Mayflower
Hotel in
ceived
market
Vears.
was
con-
William
A.
Titus, Jr., VicePresident of F. J.
Young & Co.,
Inc., New York City, is taking
a
leave of absence for the
duration.
Mr. Titus will
report as a Lieu¬
tenant U. S. N.
R., at the Naval
Air Training Station at
Quonset
Point, R. L
—
-
-
-
-
»
THE COMMERCIAL &
Number 4114
Volume 156
did
underway. Well, the rally
come but it didn't show
the
1253
FINANCIAL*; CHRONICLE
gumption I was looking
was
Old
week I turned
last
So
for.
Colony'Bonds
around, went out on a limb
and advised the acceptance of
Bought—Sold
'
profits at specific prices.
■
f
Abitibi P. & P. 5s, 1953
•
Algoma Cent. & Hud. Bay Ry. 5s, '59
hap¬
Well, you know what
Brown Co. All Issues
PFLU6FELDER, BAMPTON & RUST
pened. The column was
scarcely in print when the
market, after a slight hesita¬
Street in frenzy of optimism. tion, tore right through the
first obstacle on a sharp pick
Mass
opinion almost com¬
*
Members
61
New
York Stock
Exchange
3s
-
1945, 3y2s
Railway
h.
'
1951, 4\'zsy 1960
New York
Broadway
International Hydro-Elec. 6s, 1941
Bell Teletype—NY 1-310
Telephone—Dlgby 4-4933
SECURITIES.
REORGANISATION
RAILROAD
.
Canadian Pacific
u
,
.
■*
j
Minnesota & Ont.
Paper All Issues
,
11 i s h< Following up In volume. The bears of
promptly began
a profitable past- yesterday
deserting the short side, the
time.
sideliners also, began coming
;
By WALTER WHYTE !
■
in and the cry around the
Since last week's column Street was, "Hold your hats,
was written the market in its
boys! Here we go."
1 <
pletely b
Montreal
u
Light, Heat & fower
3s
crowd not
'73l
'63,
1956,
Winnipeg Elec. 5s, 1965 A. B.
Canadian Bank Stocks
•
inimitable
own
around and
turned
with dust
way
ran up.
The
exciting. *, But
flying in its wake.
This of if there was ever a time for
course puts me in the minor¬
the careful trader to keep his
ity, a very lonesome minority. wits about him, the time is
For after being bullish for now.
It's no intellectual feat
many months,
lastweek I ■to dive in when everybody is
warned a market top was in yelling the water's fine.
It's
the making.
the exceptional man who de¬
;:v,
Still,
,
spending all
in trying to fore¬
after
trends
market
cast
come
to
I
have
conclusion: Mar¬
one
well
as
The
as
for the next
when
to
next
What goes for the man
door will seldom work
for you. Every man interested
in the market (assuming his
interest is
practical, not theo¬
retical Kjxiust work out
own plans and form his
clusions accordingly.
his
con¬
accepted
signal called
public had
reaction the
the bit in its teeth and carried
prices about 40 points higheV.
It's possible, the same thihg
Possible
probable. / For what
can occur;
but not
from here,
halcyon days
obtained in the
no
the
When
.
were
under
industrials (DJ)
100 I
was
bullish. "If I recall the
too many
unsettled prob¬
of any runaway
to allow
market.
'
correctly I was then also in
:-5
'*
p
-I Hs
*
the; 'minority. .Well-wishers
Two weeks ago X wrote the
on eVery side kindly informed
me. the market was
headed market indicated a rally to
lower.
There was no reason about 112-116: As this is writ¬
ten the market has already
for it to
■
-■
go up. Technical data
quoted, and misquoted, to gotten within a few pennies
me ad nauseum.
Still, I saw of the 112 figure., Whether or
what I believed were certain not it has enough strength to
was
in
entitled
to
a
a
little
else was either
man
standing on' the sidelines or
was openly pessimistic.,
V '; they
•
.
v
* *
*
*
'.
I wrote the
.finally begun to
Two weeks ago
market had
act as if the
has
are
do.;
V
;'
30.
vised
"WALL STREET
NEW YORK CITY
,
But be¬
going up.
r;'
p
'
You
is
them when
to sell
do this it is the
at
99
than the average
it takes the courage
cause
long awaited rally
lamborn & co.
more
5
■
*
y
'
■
■
bought Air Reduction
profits were ad¬
at 35 or better.
Stock
Half,
now
about '36.
If you
want to hold on to your
still
half
position I suggest you raise
your-stop to 34.
*
As to1 whether or not
dent
within !the
is
understood
this grow¬
sugar
23 is
Exports—Imports—Futures
and
disappointing.
carry
Take half
don't
the position below 24. across
26
but
(Continued op,p$ge
Minneapolis & St. Louis ,5s
Iowa
Central 5s
1938
Iowa
Central 4s
'
Des
&
Moines
;
'
;
1935
Frederic H. Hatch & Co.
Incorporated
■
63
New
Wall Street
M
N. Y.
York,
Bell Teletype NY 1-897
,
by New York Central, with hold-
pointing to the absence of near
term
maturity
problems- which
,might be held up as a reason for
conserving all possible cash.
It
only
on
a
life.
nominal' additional lease
'
•
/•
■
of
holders
$1.00
Chesapeake
have to be;
year-end ex-j.
paid last year. -1
probably
will
Ohio
satisfied without any
-
pressure debt structure ■ supportable
even
recognition under subnormal business conof their rights. Sentiment is partic¬ ditions.
■
•
'V
ularly strong for dividend action •'
While these two roads have oc¬
terS
expected to make another year-
end distribution of $0.50 or
while
Fort Dodge 4s
considerable
been
Expected to hold their 1942 dis¬
tributions to the 1941" levels. Erie
is
1962
1951
from stockholders for
.
dividend
in
discus-
potentialities,
they by no means exhaust the list.
Coast Line is expected
Atlantic
to
1941.
than $20.00 a share
more
earn
this year
compared with $13.50 in
the strictly marginal roads to re¬
dividends, with $1.00 paid
late in 1941.
This year, however,
sume
altered
the situation is somewhat
hy the use of cash for the
1945, and
redemp¬
oLt^.oiitslmidpig 5s,
ea£nirhopes
substantial
very
dividend have had to
on;,
for -constructive ac-;
of the less active,
looking
are
tion
on
-some
In ^particular,
shares.
earnings of as, much as
share on Texas & Pacific
and; $12.00-$15.00
possible;
$14.00 ^
common^
Nashville,\
on
being;
Chattanooga & St. Louis are
mentioned
tions
share.
with
justifying distribu-f
Finally, there is consider-.
as
to what action will,
lc-ms.
able
:as
ranging as high as $5.00 at
Neither property is faced:
near
term maturity prob-/
talk
Coast Line was the first of
tion at 102
these... issues
Aside t *.from
which,most of the. dividend spec-1,
ulation has centered;1 rail analysts;
.
spotlight
the
cupied
sions: of
tra such as was
be taken, on
Gulf, Mobile, & Ohio
preferred.- This stock did not be¬
cumulative
come
July
until
1942, but the full $5.00 rate
be
1,
will
covered by a substantial mar¬
It is, there-;
gin for the full year.
fairly
fore,
expected;
generally
Despite their tra- ;that: the full regular rate will
be,
j Tn the case of Southern Pacific Iditionally, liberal attitude, it now
paid, in one lump sum in Decern-;
lit is felt that directors would seems likely that the directors
•*
stand on firmer ground in refus¬ may hold the 1942 distribution to ber. ■
be moderated.
$2.00.r There has been little hope
of any .distribution by Northern
maturities Pacific, while the better grade
and
certainly the conservative thing
As brokers we invite inquiries
heavy
very
during"
to
to
use
ten
provide <for these maturities.
the
.current
phenomenal
With
earnings rate, (net may be above
$60,000,000 thjs.year and there is
ino reason to expect any material
decline in
1943), and considering
- beyond- 1943 < are
maturities
the road
very well be able to solve
entire problem in the present
at
its
discounts,
Therefore, it is pointed
out that by foregoing dividend in¬
come
for
the
time
being
the
Southern
Pacific
stockholders
-
might well emerge from the war
boorp as Q^r^s
The defaulted
years
all available cash
of a fynda^eptalr-
on
blocks or odd lots of
Index
Defaulted RR Bond
principal
the; next
do is to
period.
profits
DIgby 4-2727
It's slow
25.
'
Minneapolis & St.' Louis 4s 1949
•
loans,
Chalmers, bought at might
now across
Nashville
'Minneapolis- & St*-Louis 6s 1932 • ;
./.Minneapolis. & St. Louis 5s 1934:,;i
Northern,
Louisville
&
and Union Pacific are
Great
ON
contracted
30s, and naturally there Jy sound railroad property with, a
RFC
and
in the late
that
p
$
NEW YORK
will hold meet¬
.
has
MARKETS
.
Central, and
next 'week,; and in many
quarters it is expected that .the
matter of dividends will be dis¬
cussed at that time.
Both of these
roads have now cleared up their
bank
.NY..I-2050.
(in reorganization)
div^
next wieek or so.
that directors of
Southern Pacific
Bought—Sold—Quoted
YORK
NEW
72 WALL STREET
is
New.York.
STREET,
MINNEAPOLIS &
finally to '.he
broken all along the>>line? is warranted will presumably
be: evi¬
idend1' droughtJ
selling
Allis
WALL
ST. LOUIS RAILROAD
■
*
RAILWAY COMPANY
Tuyl &
"• .■•.•
ing confidence that the long
Tf
SEABOARD AIR LINE
greater
to
only thing to ing to make dividend payments.
-.'.-"".'V.
Southern. Pacific is faced with
*
1
WHit«hall Sin3J50 ...Teletype l
of the railroad
prosperity
industr|?y'
.
Specializing in
LEROY A, STRASBURGER & CO.
material' participation in the new
found
" Toronto
of
and
the part of railroad, manage¬
ment that tire owners of the propA
were
1-395
underlying Mortgage Issues
on
erties
NY
Montreal
conjunction with
signs which pointed, if not to get up to the upper level of
immediately higher
prices, the price range is something Is further claimed that the cash
then certainly not to lower I can't foresee at this time.
ioutlay involved: in a token divi-,
But I do know the market is
ones. : Of course there was a
jdend payment" (perhaps $1.00 a
time element, to figure on, right in the middle of a move share) would have little influence
cn the long" term solvency of the
but as that was not clear, I from which a reaction can be¬
road. \ In a depression in which
simply advised readers to buy gin. Everybody knows it Isn't Central's solvency was threatened
certain stocks and continued easy to sell stocks when the the cash saved by non-payment of
to advise holding them while market is going down. It takes moderate dividends would mean
everybody
issues
& Pacific R. R. Co.
be
lems .for the market to-- cope ings
flatly
period with
all
in
establishing a regular
of the directors,
as
.taken
.
both
are
to
sign of a growing realization
a
as
Back in the summer of
a
not
resumption of payments on South¬
ern Railway preferred, was taken
:A
1929 When every
for
was
Teletype
trading
the action
rate,
when
Of course-theye are excep¬
tions.
net
Chicago, Rock Island
share prior to that.
pointed out that the
declaration
latest
>,
,
wolf.
a
$1.00
While it was
trading is, at best, a lone¬ everybody else is beginning to
some affair.
For anybody to scramble for them.
*
markets
in the previous quarter
and
ket
out of the busi¬
ness
of buying and selling
stocks one has to be a lone
Bell
Nev York
We maintain
ing the quarterly dividend to $2.50
a
share compared with $1.50 a
share paid
IIAnnver 2-0980
52 WILLIAM ST., N. Y.
The im¬
mediate stimulus to the reawak¬
ened interest was the action of
the Atchison directors in increas¬
CO!
HART SMITH &
•
than seven points.
more
The time to sell them is when
make money
Sun Life Assurance
chison, -Topeka & Santa Fe, being in the dividend paying class.
Of
15 most active stocks, eight were railroads, all on the up side
and
with
advances
ranging to3>———%
————■■
guy.
buy stocks is
nobody wants them.
time
Halifax Insurance
week.
the
cides whether it's fine for him
these years
Stock Exchange were
the
on
possibility of important wage in¬
the development of an explo¬
The five most active stocks
rails, with only one of the group, At¬
railroad stock market last
sive
It's all very
given to the
publicity
to rail labor did not prevent
creases
p
£
Brazil Traction Lt. Pr. Com.
dex'
of
Rust,
railroad bond in?
Bampton
Pflugfelder,
&
New; York
61. Broad way ^
HIGHEST GRADE RAILS
City, shows - the- following range
We also maintain net markets in
for Jan.
43%;
SEABOARD ALL FLORIDA.
6s/35 Bonds &
Ctfs.,
1,
1939, to date:
low—14%;
high—
price—'
Oct. J
43%.
SEABOARD AIR LINE
1st
4s,
'50,
Bonds
Coupon & Registered
& Certificates
Van Ells With Blair Co.
SEABOARD AIR LINE
Consol.
6s/45
Bonds
1. h. roihehild &
[specialists in jails
11 wall street
HAnover 2-9175
F. H.
Ctfs.
&
sultant
co.
Blair &
Van Ells has become con¬
on
New York
...
railroad
Tele. NY 1-1293
:
"Wall
to
Street,
City, Mr. Van Ells was
formerly, railroad
n,y.c.
securities
Co., Inc., 44 Wall
editor
Street-Jpurnal."
M
;
of
f.
the
>,
1254
THE COMMERCIAL &
FINANCIAL CHRONICLE*
DIVIDEND NOTICES
Casualty Co.
National
Bank and
Union
Fire Ins. Co.
I'
Bank
Insurance
Northwestern
National
Philadelphia
Bought—Sold—Quoted
—L
Members
and
New
York
other
leading
Laird, Bissell & Meeds
Members
Exchange
120
New
York
Stock
BROADWAY, NEW YORK CITY
exchanges
NEW YORK
DIgby 4-2S2S
Telephone
Bell
(L. A.
Teletype—NY
1421
Phila.
1-1248-49
LONDON
ir
Chestnut
Locust
Gibbs, Manager Trading Department)
Street,
1477
York
PH
64 New Bond
TOTAL
to
but
rate,
have
than
This Week
in
come
By H. A. LEGGETT
large part of the human
vival—and
whether
make
ing
not
we
much
own
else.
million dollars.
a
our necks than our
is
no
us
little
wonder
alysts
are
thinking in terms of
of
primary
dress well, buy a
sur¬
importance
new
car
''-"/"■'"•.'A
,
corporate an¬
beginning to think more
about the survival
or
will be
except
tistics
to
the
extent
they have produced
many
Thousands
current
handling the greatest
sta¬
may, at
times, prevent
staff
some
other
volume
their
history,.
be faced with
of
largely
by
drastically
war
messenger
may
situa¬
a
thousands of businesses
being
the
in
day
curtailed
are
neither
under
Banks, at least
more
of common stocks.
less
or
indefinitely
number of industries, the
but, in a
mortality rate will increase rapid¬
ly if the war is greatly prolonged
Inevitably the war will also
bring in its wake many social,
economic
of
Some
better
of
ceptions,
it
has
comfortable
in
With
been
rare
far
recent
years
have neither Funded Debt nor
any
considerahle amount of Preferred
it did
or
worse, a permanent part
life.
When
^es
peace
and
Deflation
alternate
chasing each other up
the economic scale.
in
*
it
with
guarantee
any
not
of
bring
a
com¬
plete return to so-called normalcy.
The
outlook
may
be
some
industries
entirely altered and the
of yesteryear, in some
cases,
assets
may
for
1
not be worth the ledger paper
In this
which they are listed.
welter
of
confusion and
on
tainty,
there
all
are
uncer¬
too
few
havens of refuge for harassed in¬
vestors and all too few
principles
which they can
of
precedure to
adhere with any
reasonable
of financial salvation.
Pittston
hope
important respect in which
tjie Banking Industry has a head-
was
Among the industries which are
being radically transformed
by the
and
war
is
banking
whose
relatively
business
best situated.
the
regarded
is
economists
many
by
as
On
a
post-war
secure,
one
of* the"
pure survival
basis, at least, the Banking Indus¬
try is still sufficiently essential
and sufficiently
adaptable as to
,
assure
for it
degree of
a
permanence.
banks
more,
better-than-average
have
a
Further¬
considerable
advantage over most other cor¬
porations during periods of violent
industrial
tions.
A
and
monetary fluctua¬
liabilities and
bank's
most of its assets
are
simply book¬
keeping entries, due and payable
in
the
loans
kind
same
and
of
specie.
The
investments of a bank
for the most part, more liquid
and less subject to deterioration
are,
than the property
dustrial,
accounts of in¬
railroad
or
utility
com¬
panies. Banks have practically no
problems of factory construction
or
obsolescence
rectly
shortages
or
thorn in
are
are
by
they di¬
commodity
surpluses.
Mechanical
changes,
tries,
nor
affected
or
which
the side
of little
technological
are
a.
constant
of many
concern
indus¬
to
the
other
industries
is
in
the matter of
regulation. Banks
have not only been
subject to con¬
stant government
supervision for
generations but, during the
I
decade, have been obliged to adapt
themselves
amount
and
of
direct
tion. As
more
a
a
to
an
recommended
restriction,
competi¬
accustomed
are
—
are
ence
now
other
here
the relations which
tween
up
who
to
undergoing this experi¬
for the first time.
the
now
at 72.
to
was
sold
Head
Commercial
U.
Office
in
these
.
FUND
Officers For 1942-43
Banka
8.
A.
chosen
cers
were:.
Frederick-* W.'
/ V.
& Co.,
Vice-President; Howard S. Harris,
Baldwin
&
Co., Treasurer; G.
Carleton
Jordan, R. W. Pressprich & Co., Recording Secretary;
and William S. Thompson,1 Ralph
F.
Carr
&
Co., Corresponding
Secretary., - 1; \
■•;■.■/
:u ?
No.
,
.
.
.
1
Association
King
Cairo
£3,000,000
£3,000,000
/
principal
•
EGYPT
.
and
in
Street,
all
Burr, Inc.; William
May, May & Gannon; James F.
McCormick, Jr.; Chandler Hovey
& Co.; Robert T. B. Peirce, H. P.
Wrood & Co.; Charles W. Stevens,
Arthur Perry & Co.,
Inc.; <and
I
the
NEWBURGH,
N.
;D. Scheetz
E. H.
duration
—
Charles
that
1
Y.
Co., Miller Building,
operations of the
firm will be suspended as of Oct.
for
the
■
Charles
of
the
war.
D.
Scheetz, head of the
planning to devote his
the
to
war
.
'
.
Worthinglon Is
Now Willi Baker-Watts
&
at
Winslow, Jr., Perrin, West
i
in
SUDAN
To Close For Duration
i
N.
Winslow.
E. C.
V.'
the
Towns
&
F.
AGENCY
William
Harry vW, Crock¬
are:
ett, Coffin
&
7
Branches
:,,>v :
across
rest
share
per
Capital Stock ($7.50
Company, payable Novem¬
.Ri^jx^Gjp,yjBariwSachs
Cairo
Register
LONDON
and
6
effort.
FINANCIAL
,
More next
BALTIMORE, MD.-Baker,
Watts &
Co., Calvert and Redwood
Street, members of the New York
and
Baltimore
that
announce
Worthington
is
with their firm.
Stock
Exchanges,-
Ellicott
Hewes
associated
now
Mr. Worthington
for many years
was a partner in
W. W. Lanahan & Co.
;
i
.
.
[The
Notice to the Holders of
tector of the
Banking Industry to
an
extent not vouchsafed
to any
ether industry. To all
intents and
purposes, safe and sane
banking is
now the
responsibility of Govern¬
^
expressed
in
jv/v/;;
H.
Peterkin
has
44 Beaver
to engage
business.
Mr.
strong and healthy banking
J. Lee
reasonable profits
will not only be
permitted but en¬
is
;Twenty-Five Year 5%
,
,,
,
Gold Bonds,
Due
> -/v''
June li
1952
Twenty-Five Year 4Vz% Gold Bonds! Due May 1, 1953
Danish Consolidated
Thiriy-Y'ear 5Va%
-
:
•
Municipal Loan
External Sinking Fund Gold Bonds, Due November 1, 1955
Twenty-five Year 5%'External Gold Bonds, Due February
1,
.
1953.
•
"
Mortgage Bank of the Kingdom of Denmark
(Kongeriget Danmarks Hypotekbank)
i
'/■"
Forty-five Year 5% Sinking Fund External Gold Bonds Series IX, of 1927
♦
;
Due December 1, 1972
*
.
was
for¬
The
undersigned Minister of Denmark in Washington makes the
following state¬
ment for the-information
-
-
:
of bondholders of the
'
Harry R. Engeman will become
a
partner in Pershing & Co., 120
Broadway, New York City, mem¬
bers of the New York Stock and
Curb Exchanges.
Mr.
External Sinking Fund Gold Bonds, due November 1, 1955, I
propose to put the particular paying-agents in funds so far as it is estimated to be
necessary to make coupon
payments to holders, other than residents of Denmark, of bonds of these
three issues.
October 15 and November I, 1942 coupon payments will be
subject to such licences
*aS may be granted to paying-agents by the United States
Treasury.
In conformity with my announcement of July 29, 1942, I
purpose to make subse¬
quent announcements with a
viey to keeping bondholders informed of further develop-merits relating to the above-described loans.
HENRIK
Engeman
will act
as
alternate
on
above-described issues:
For the purpose of paying October 15, 1942 coupons of
Kingdom of Denmark ThirtyFour Year 4}kc!o External Loan Gold Bonds, due April 15, 1962,
November 1, 1942 cou¬
pons of City of Copenhagen Twenty-Five Year 41/2% Gold Bonds,
due May 1, 1953, and
November 1, 1942 coupons .of Danish Consolidated Municipal Loan
Thirty-Year
Engeman
"
Washington, D. C-, October 7,
KAUFFMANN
Envoy Extraordinary and Minister
Plenipotentiary
of His Majesty the King of
Denmark
the floor
worthy of note, of the Stock
Exchange for Louis
perhaps, that even in totalitarian B. Froelich.
::
.
7
I;.'..."j' ->i
Company.
To Admit
In this
to
\
,.
merly sales manager for Stewart
couraged.
but
Twenty Year 6% External Gold Bonds, Due January 1, 1943
External Loan Gold Bonds, Due August 1, 1955
Thirty-Four Year 4Va% External Loan Gold Bonds, Due April 15. 1963
Thirty-Year
.
Peterkin
that
war
Kingdom of Denmark
v
City of Copenhagen
i
Street, New York City,
in a general -securities
destined
.
A. H. Peterkin Co. with offices at
themselves.
Therefore, it is
logical to expect that all
necessary
steps will be taken to maintain a
Banking
Industry under State
Capitalism or whatever form of
1
<•":
formed
ers
connection, it is interest¬
ing to consider the position of the
?
•
A. H. Peterkin Co. In NY
ment more than it is of
the bank¬
sys¬
"...
;
thii
I
Alfred
:
.
—Walter Whyte
•
views
NOTICE
Thursday.
.
It
investors,
' vf'-
FULLY PAID CAPITAL
RESERVE
guarantor and pro¬
thereafter.
th«
announces
the
1942.
19,
the
on
Governors of the Boston Traders
'
ing business, it will probably be a
article do not necessarily , at any
lot safer than it has
usually been "ime coincide with those
of, tht
in the past.
Chronicle.. They are presented ai
In fact, the Government
itself
those of the author only.]
now stands as
are
in
|:A:^of)EGYPT/"/
Last advice
sell
York
Cents
I don't think this is the time.
has been extracted from the bank¬
we
to
interested
; >■/. '
v
.
throughout
the current cycle. I expect firm, is
services
recommend new positions
very
capitalism
travellers
.
banking^'industry and
have, not only during the
over
NATIONAL BANK
bought at 59
was
declared
(30)
BOSTON, MASS. —At the an¬
nual meeting of the Boston Se¬
curities Traders Association; Eugene R. Hussey, First Boston Cor¬
poration; was, elected President/
for the ensuing year.
Other offi¬
/;/:"._••'■/
exist be¬
high percentage^ individualism,
and
banking service
and
when I think the time is ripe.
the Government are
pleasant and
workable and, although a
tem
the oldest
With
Australia,
47 Berkeley Square, W. 1
:
or
general,
In
now
of
Agency arrangements with
(about 72 bid—7214
offered). i That about closes
to
businesses
efficient
I; ^
market
now
operating in
regimented economy than exec¬
of
States
LONDON OFFICES:
-20--Tbreatim3edleStrret,"E;-G."
;
* at
profits at 2%
Union Carbide
70, is
dictation
Government
to take
of which half
increasing
result, bankers
in Australasia.
ail
in
Is
■
better.
past
not
outlook
and
traders
during the week to
Advice given last week
23A.
start
utives
«
I
{•• countries.
!
I'M rallied
i One
on' most
branches
Wales
A.
and down
•
therefore, it will
•
Thirty
Boston Traders Name
£150,939,354
Office: George Street, SYDNEY
sell at
*
been
of
value) of this
14, ,1942 to stockholders of, record at the
close of business October 23, 1942.
?.
"
J. R. FAST, Secretary.
.
DAVIDSON, K.B.E.,
Manager
Zealand, Fiji, Papua and New Guinea,
and. London,
it offers the most complete
But
move/
COMPANY
-
New
.
our
come,,
this
on
New
ber
General
and largest bank
figure
LINE
30th
870
50, though not
for long, current
Stock outstanding.
price about
This is usually
^
usually
the case
during periods of up¬ 49%. .: Rest of the position
and scientific
changes— heaval,
particularly when Infla¬ should be stopped at 46.
; •/
which will remain, for
tion
8,780,000
I*
column
I
stated
I
didn't think it could make .the
50
dividend
par
p
6,150,000
The Bank of New South
week's
to
__;L
PIPE
Broadway,
September
has
£8,780,000
....
ALFRED
Head
bought at 43 was to have half
its position
liquidated at 50 or
better. When
advising in last
ex¬
Fund
:
■;
,
more
26
1817)
Liability of Prop.
f:v-
.International Harvester
most of the large
Capital
Aggregate
Assets
I, Sept., 1941 f—
_
and, for many of. metropolitan
institutions, also
these, it is purely a question of have
the advantage of a
simple
how long the war lasts. Some will
capital structure consisting only
be able to mark time and
remain
*
SIR
pointed rounds.
trkasOrkb
£23,710,000
Crane, another disappoints
ment, bought at 12, is now
12 and
high fraction. Don't
carry it undejuLL
mail,
and
INDIANA
A
(ESTABLISHED
Reserve
(Continued from page 1253)'
snow
economy
solvent
:*
Paid-Up
to invest
Says
telephone, or
rain, nor
nor gloom of
night is likely
tion where they haven't an
order. to, stay those couriers from the
;'bhTthe"bboksr" At' the samA time, Swift
completion of their
ap¬
business
some
1
/Reserve
term
of
BANK OF
NEW SOUTH WALES
Tomorrow's Markets 7
Walter Whyte
that
'1
TH0S. A. CLARK
September 24, 1942
'
be
to
labor-
meaningless— members from maintaining a
per¬
record
standpoint. fect
of
attendance.
A
bank's business is conducted
companies,
now
long
a
last
regular
a
.
when
almost
are
from
the
Directors has declared
quarterly dividend of 50(1 per share on the out¬
standing Common Stock, payable on November
Ltd.
Australia and New Zealand
ability of vari¬
that
The Board of
Bank,
Gly«j \MiIls & Co.
during- a. time
corporate survival is the
primary concern of investors gen¬
erally.
'■>, /A//
washout
alike,
Deacon's
on October
IS,
1942. The transfer books will not close,
o
,
banks
'
2, 1942, to stockholders of record
of the safest, businesses
one
in which
saving devices for them to utilize.
ous companies than about
present Also transportation difficulties are
earnings and dividends. It is gen¬ almost unknown to
banks;, only an
erally recognized, by analysts and occasional
blizzard
or
investors
:
eliminated altogether.
Thus, it is
likely that the Banking Industry
atmosphere, it is3>-
that
is also
apparently
are more
'/•""/■
better maintained
other
industries.
is usually the first to be
reg¬
ulated but—on the other hand—it
■'
v,
;./
Williams
ness
concerned with preserv¬
gadgets and- would rather lose our shirts than
.'
In this kind of
now
longer
house,
Most of
liberty.
our
It
beautiful
a
is
race
most
Associated Banks:
only allowed
dominant, the banking busi¬
'
A
been
President
PRODUCTS CORPORATION
Wherever State Capitalism has be¬
Bank Stocks
—
not
are
KANN,
1942
NATIONAL DISTILLERS
7
£98,263,226
banking structure
fairly well preserved and
dividends, although limited
that
H.
rec¬
1942.
ASSETS
"
the
has been
as
cents
common
2-2280
257
*
countries
1,
V2
November 1,
October 10,
G.
October
has
stockholders of
to
on
2
the
on
payable
1942,
ord
Directors
dividend/of
share
stock,
Street, W. I
Phone
HAnover
Teletype
cents
per
Smithfield, E.C.I
of
quarterly dividend
per share and an
a
Burlington Gardens, W. I
Philadelphia
New
-I
8 West
5
extra
„
49 Charing Cross, S. W. I
f
Board
declared
OFFICES:
3 Bishops gale, E. C. 2
,
2039, Pfd. & Common
Phone
The
throughout Scotland
i of
H. N. NASH & CO.
Exchange
Telephone: BArclay 7-3500
WALL ST.
1
Stock
3-6s
TRIUMPH EXPLOSIVES, Inc.
OFFICE—Edinburgh
Branches
Philadelphia National Bank
Phila. Transportation Co.
—-
Unlisted Issues
cX.clb)Ci^a<&(o.
HEAD
/
Girard Trust Co.
Pennai Co. for Ins. on Lives etc.
Inquiries invited in all
<
Incorporated by Royal Charter 1727
Fidelity-Phila. Trust Co.
Slocks
Ins. Co.
Royal Bank of Scotland
Stocks
■
Aetna
Thursday, October 8,; 1942
1942.
1255
•THE COMMERCIAL & FINANCIAL CHRONICLE
-
Comer
The Securities Salesman's
000, including the great majority
of active management companies.;
Its activities during the year just
NATIONAL SECURITIES SERIES
.
closed, Mr. Bartholet said, were
largely concerned with working
CAMPAIGN THAT IS PRODUCING! v
A SALES
;
Bond Series
Commission,
workable
I'Today's opportunity in the investment field, is far greater than
it has been for many years past!".: This is the way the Keystone
of
looks at the.. present situation now facing securities
dealers
and salesmen. They have sent this column a booklet
which puts forth some tested sales ideas that in their opinion have
been most important in building up Keystone's. volume to over
vestment
in
the
and
Low-priced Bond Series
Income Series
Low-priced Common Stock Series
Preferred Stock Se ries
with the Securities and Exchange
International Series
development
rules
effective
.
administration
the
for
Corporation
the
principal
of the In¬
Act.
the
on
bear market in
will fill the bill.
people who want
To do so
before;
the
investor
has
become
con-;
buy securities—BUT WE HAVE
vinced of his problem and the need
VA BULL MARKET IN PEOPLE
•WHO
HAVE
INVESTMENT for a solution should never be at-;
But now you can say,
PROBLEMS,
Few investors are tempted.
to
interested in
part
Prospectuses
of investment com¬
(.likens Steel Debs,
Offered
particular problem the
solution that I know of is
this
'For
buying more secur¬
best
.
INTERESTED
.
.
of
$2,200,000
4%%
NEW OFFERING
sinking fund debentures due June
1, 1952, are being offered today
by a banking syndicate headed by
•
that you procure a copy.
UNIT.
the salesman
thing
first
problem thai
It may
the effect of taxes on his hold¬
does is to select one
confronts
be
the
investor.
diminish¬
dividends, governmental reg¬
ings, rising living costs,
ing
ulation
war
lous,
or
the broad effects of the
economy
other
or
broken
be
the investment company
19 with the initial offering
"International Series."
of
dearth
long
will
..<■?;
This
Series.
about Oct.
offering will be the sixth of the National Securities
name implies, this Series will
provide wide geo¬
new.
the
As
graphical diversification of investment in
foreign and domestic
common
The
corporations. It was created in the
belief that it "will be widely ac¬
MAJOR
by investors as a partial
against a purely domestic
investment position."
w >,/•%£.
An analysis of the eligible list
for the
International Series re¬
cepted
1
hedge
,
that
veals
as
of
result
a
our
Govern-,
own
-^
"hemisphere"
to the next point
abut this must be avoided. Discuss
of
tail.
Then go over
the
Announcement
the
National
made
was
Association
of
vestment
tion
this
In-j
Bonds:
;
annual
regular
for
Association
balloting
three
the
the
of
year
commencing Oct. 1, 1942. :•;;
Because of the resignations of
term
•
complete
the
receive
from its sponsors.
:i
copy
admits and un-
"After the client
has a problem
The next step is to suggest a sol; ution in GENERAL TERMS.
For
j example, if an account has a large
proportion of common stocks the
basic
advantages
of
discount
bonds, as a class, under a *war
economy should be discussed. (In¬
1 derstands that he
•
terest
comes
before
account invested
taxes.)
in money
An
bonds
by taking ad¬
vantage
of premiums
on
this
class of security and brought more
into line with the investor's need
may
be reshaped
v
continuing
Those
the
-
committee
are
to serve
Charles
Eaton, Jr., Trustee, Eaton &
on
F;
LFor
J
the
1940 and $357,418 for the
year 1939.
The indenture provides a sink¬
the year
ing. fund l'or the debentures in the
of $220,000
per
annum
amount
How¬
income.
ABOUT
AGAIN
THE
WE
TALK
SOLUTION
IN
Vice-President;
Tri
-
(Continental
which
was
organized
a
year
to place on a permanent basis
work
previously carried on
ago
the
in
in¬
the Na¬
connection with regulation of
vestment
.
companies by
tional Committee,
120
now
comprises
companies with combined as¬
TERMS
UNTIL
THE
sets
of
approximately $1,000,000,-
"Union
of
September marked the beginning
of Union's third year.
have to offer
"What does Union
the
excess
of such net income over
investment
income
which, sur¬
$880,000),
The foregoing sinking
rounded i by
the
safeguards of
fund is postponable to the extent
careful selection and broad diver¬
not earned but is cumulative. • ; i
sification, are highly attractive in
these days of low interest rates
Boston S. E, Names To
and
) Governing Committee!
BOSTON, MASS. —At the re¬
dividends.
recent period,-
uncertain
"To take the most
The
are
Committee:
Louis
Curtis, Brown Bros Har&
Co.
(term to expire
Paine, Webber, Jackson &
Curtis;
Lyon: Carter,
pire 1944).
Members chosen for the 1942-43
Committee were;
Howard W. Hodgdon, Chairman;
Waldo M; Brown; Hollis HunneNominating
,
well, Hunnewell & Co.; Henry G.
Nickerson;
and Samuel Mixter,
Chandler Hovey & Co.
-
report of Keystone
the
fiscal
ended
year
Aug. 31, 1942 shows-net- assets for
this
fund
of
equal to
$3,367,735,
$11.53 011 the 292,172 shares out¬
standing. At the close of the pre¬
fiscal year,
vious
net assets were
$2,880,027, equivalent to $14.63 per
share on .196,857 shares then out¬
standing.
The Keystone
months
six
Series B4 Bond
report for the
semi-annual
31, 1942
$7,090,386
ending Aug.
shows total net assets of
equal to $7.23 per share on 980,841
shares outstanding
compared with
$5,481,458, or $7.31 per
share on 749,986 shares outstand¬
ing as of Feb. 28, 1942.
Total assets of the ten funds of
assets
the
in
of
Keystone
excess
with
of
reported
are
group
$38,750,000 compared
$28,379,000
close of
the
at
1941,
Investment Company Briefs
The sponsor
of National Secur¬
released two mcm(Continued on pag«K1263)
ities Series has
V
v.'Y
,
"-V
..V
the performance
Gain
Keystone ) f
"A"-.— 4,1%
Union Bond Fund
9.5%
Union Bond Fund "C"_—«_24.0%
Custodian Funds
1942."
§tock
Exchange,
the
following >Were
elected members of the Governing
annual
for
Fund
"
cent election of the Boston
7.9%
"C".
records
of the three Union Bond Funds
from
Dec. 31, 1941 to Sept. 24,
here
Estabrook- & Co.;
John
Perrin,
Perrin, West
&
tion; and Paul Bartholet, Execu¬ Winsolw;John A. Paine, Coffin &
Burr; and Charles C. Waterman,
tive Director of the Association.
Membership of the Association, Draper; Sears & Co. (terms to ex¬
Corporation;
Richard
Wagner;
President, The Chicago Corpora¬
The current issue of the
•
Dealer" recalls that the month
4.1%
„_5.4%
"B"
Series K1 Income Preferred Stock
Fund
Anniversary
on
this, its second anniversary?
For one thing, a record of per¬
(except that the obligation of the formance which affords convinc¬
company on account of the fiscal
ing evidence of sound manage¬
year 1942 is limited to 12x/2% of
ment. For another, yields from net
-
M
"GENERAL
plus 25% of the "consolidated net
income of, the company and its
subsidiaries" in excess of $880,000
James H. Orr; riman' *
President, Railway and Light Se¬ 1943); Alvah R. Boynton, F. S.
curities Co.; Cyril J. C. Quinn, Moseley & Co.; Frank H. Brown,
ard Balanced Fund;
'
for
"A"_'i
From Investment Co. Reports
Companies, of the elec-:
•
.can
the investor."
•
to the
in
discussion
ios angeles
wmmmmmmm
Elects to Exec. Group
devoting
GENERAL committee T members
TERMS until YOU ARE SURE their full time to war work or for
•YOUR CLIENT UNDERSTANDS other reasons, the Association an¬
IT.
And when he
understands nounced, four vacancies have oc¬
Lit he will tell you so.
He will say, curred and the following men
'Yes, I see that is a serious mat¬ have been elected by the com¬
ter but what can be done about mittee to complete the unexpired
it?'
When he tells you that he terms: William F. Morton, Vice7
understands the problem and asks President, State Street Corpora¬
'■what can be done about it—you tion;
Dorsey
Richardson,, Vicehave completed the first step."
President, The Lehman .Corpora¬
V: The Keystone bulletin offers tion; and Frank F. Russell, Presi¬
some
typical
approaches
that dent, National Aviation Corpora¬
tion, for terms ending Sept. 30,
; salesmen can use in setting up his
interviews and gaining his client's
1943; Merrill Griswold, Chairman,
interest at this point.
We. think Massachusetts Investors Trust, for
the term ending Sept; '30?; 1944,
; they are excellent but space lim¬
itation do not permit us to quote Mr. Griswold has been a member
them; however, we are certain of the committee since formation
of the Association, his term hav¬
That those who might be interest¬
ed in this entire sales campaign ing expired Sept. 30, last.
£
ito
634 so. spring st.
jersey city
'
,
de¬
it again. Stick
problem in simple term and
v
and COMPANY
outstanding upon completion demand for their products.
The .initial portfolio, subject to estimated yields to
financing will consist of
the new issue of $2,200,000 4%%
change, will be made up of the Union Bond Fund
Union Bond Fund
debentures, $2,337,500 2.15% serial following groups:
bank loan, and 317,976 shares of
Foreign Government & Municipal Union Bond Fund
by,
common stock' (par $10).
.;
;
be
Investing Go. Ass'n
REQUEST
ON
W. LONG
exchange puce
•:•.?
„
and then go on
SERIES
INCOD'OIAMO
_
■
INDUSTRY
STOCKS, INC.
PROSPECTUS
HUGH
policy
company's capitalization to coupled with the war-stimulated
ment's,
20
°f
NEW YORK
exceptionally com¬
an
twentyTour'',weeks
British Empire Bonds—26.49%;
ended March 28, 1942, company
European (Continental)
'
■
Executive Committee;
reported gross sales, less returns,;
;•/ Bonds
9.53%.
eral problems but the thing to do
of 4he -Association of (X Kelley
allowances and -discounts of $19,-4 —-Latin-American.; Bonds, -24.37 % I
is. to
select the major obstacle Anderson, President, Consolidated)
974,431; compared with $30,883,591 Corporate Bonds___>__
15.6i%
AND
PRESENT
IT
TO
THE Investment Trust; George M. Gil-; for the fiscal
year ended Oct. 11 j
Common Stocks
24.00%
CLIENT SO THAT HE CAN SEE lies,
Executive Vice-Presi-i 1941^ $ 18,751,175 for the fiscal year
A new prospectus for National
IT AND UNDERSTAND IT.
We dent, The Adams Express Co.; 1940 ahd $11,929,582 for the fiscal
Securities Series,
including the
quote from the Keystone bulletin S. L. Sholley, President, Keystone year 1939.
The net profit avail-'
on what the salesman should and
Custodian Funds, Inc.; and Hard- able for interest and other charges International Series, has been is¬
sued under date of Sept. 21, 1942
wick Stires, Vice-President, Scud- for the 1942
rshould not do at this point.
period was reported:
and now replaces the prospectus
t "There is a natural temptation der, Stevens & Clark Fund, Inc.. at
$3,609,521, as against $4,171,160
dated Aug. 26, 1942.
to summarize the problem briefly These men were elected in the for the
year 1941, $1,355,587 for
problems which affect all inves¬
tors.
Most accounts present sev¬
issues of foreign - govern¬
ments and of
'
;
in
issues
new
or
on
of National Securities new
non-ferrous and special alloy-
metals.
; Tine
The
field
prehensive list of South American
government and municipal bonds
has been included. Thus, this new
Series will be in a position to ben¬
efit from the remarkable improve¬
securities as well as the* sponsor's; of" c'arboiT and alloy hot rolled
ment
which is taking
place in
steel plates, v The company alsoown particular offering, Keystone
Fund.
This column recommends hot rolls and forms .plates of fer-! many South American countries
reality of showing where the ac¬
count AS A WHOLE must be survev«d AND CONSIDERED AS A
*
Russ Bldg., San Francisco
: :
Investment Trusts
■
,
New York
120 Broadway,
By E, H. Rollins
issue
An'
request
upon
NATIONAL SECURITIES & RESEARCH CORPORATION
j
INVESTORS ARE
.'
The
point of this sales
IN
CONSTRUC¬
'That if you will) E. H..' Rollins & Sons, Inc., East¬
TIVE IDEAS THAT WILL HELP campaign is
man,
Dillon & Co. and Whiting,
THEM TO REDUCE RISK TO spend ninety percent of your timeThe deben¬
in selling the problem and the; We£ks & Stubbs, Inc.
PRESENTLY INVESTED / CAP¬
solution to the problem, the secur-j tures which are offered at 100 and
ITAL, TO MAKE INCOME MORE
ities that you suggest will sell accrued interest, are being issued
CERTAIN
OF CONTINUANCE,;
themselves in the last ten percent for the purpose of discharging the
•AND TO IMPROVE THE PROS¬
of the interview?-",
:•*?' * r.
,'' balance of $1,980,000 due on a
PECTS
.FOR
RECOVERY
OF
There are a number of valuable bank loan in the principal amount
LOSSES, WHEN, AS AND
IF
sales pointers contained m this of $2,200,000, together with the ac¬
;THE
SECURITIES; ' MARKETS
bulletin on such subjects as, "what! crued interest and premium there¬
.RECOVER."
to
do
with
a
holding
list,". on.''.Other members of the under.' With this factor firmly estab¬
"Amount
of
money
as
against writing syndicate are Stroud &
lished the. sales campaign is then
talking number, of shares," ,the Co., Inc.; Graham, Parsons & Co.,
.developed
along
the lines
of
problem of "risk and return" and Riddle,' Whelen & Co., Boenning
bringing the problems of the in¬
how to get certain customer fal-; & Ca"ari& Bond
Goodwin^ Inc.- '
vestor to the surface.
In other
laeies and superstitions out of the
; Lukens Steel Co. is a non-inte¬
words, the salesman crystalizes
grated steel producer whose prin¬
way of the order.; The ideas pre¬
the
slumbering
and
unspoken
sented are usable for .selling any; cipal business is the manufacture
concerns of the investor into the
ities but ALL
CAPITAL STOCK
creation of
$11,500,000 .so far ..this year—anVr-f
—. .
. . 1
;■,
INVESTOR TELLS US THAT HE panies of one anothers' problems
amount nearly equal to their en-j
UNDERSTANDS IT. AND. HAS and the ! approach 'to. a common:
tire sales for the year 1941.
■
j
ACCEPTED IT.
He will ask, T. viewpoint of what constitutes rea¬
The
main
idea behind these!
can see that it makes a good deal
sonable regulation. '
sales campaigns is that the in-!
of sense,' how can we do it?" :
V
vestor today is not interested pri¬
"The • next and final step is to
marily in buying a stock or a:
bond.
On the contrary "we have suggest the security: that you think
a
CORPORATION -
COMMODITY
Bartholet said, had been the
a better understanding
Mr.
MUTUAL TRUST FUND
FIRST
One of
accomplishments,
Company
Union Bond Fund
"For
of
purposes
the! action
of
BONDS
comparison,
various
security
indices during the same
period are tabulated below.".
price,
Business Men's Investment
Medium Priced Bond Fund
Low Priced Bond
Speculative Bond Fund
Loss
Industrial, Aver-
Dow-Jones
.
1.6%
0.7 %
Gain
&
Poor's 90
Index
"Based
Sept.
on
1.8%
offering prices as of
1942,
investment
Union
Stock
_
24,
Bond
the
income
current
of
the
net
three
Funds—after all ex¬
penses—provides
the
B3
.......
B4
.
.
.
.
.
Fund .....
Appreciation Preferred Stock Fund , .
K1
K.2
COMMON STOCKS
age
Standard
B2
.
.
PREFERRED STOCKS
Aver¬
Combined
Dow-Jones
...
Income Preferred Stock
!
age
Fund
B1
Bond Fund
following
Quality Common Stock Fund
Income Common Stock Fiind
SI
...
.
.
Appreciation Common Stock Fund
Low Priced Common Stock Fund ,
Prospectus may be
SI
S3
.
.<■
.
.
St
obtained from your dealer or front
The Keystone
50
•
■ v
Corp. of Boston
congress street, boston
>
1256
THE COMMERCIAL & FINANCIAL CHRONICLE
FLORIDA
Thursday, October 8,
outstanding
claimed
Municipal News & Notes
indebtedness
to
be
void
is
principal
in
ments
because
of the limitation.
excess
.«
,
^
-
and
interest
require¬
State and local bonds.
The State Sinking Fund Com¬
•
Official
notice appears on this
the intention of Arkansas
ized
Refunding Board to receive tend¬
until
ers
28
of
11
read
district
series B;
the
at
(CWT)
a.m.
non-interest
bearing
refunding
exception,
State
of
Earl
all
With
agreed
one
that
better deal
a
by deferring the sale until
bonds,
Tenders will be received
office
they
the city would make
da
issues
gives
background
municipal
to
nearer
the date of actual issuance of the
Page, State
Our long experience In
answer
them
at
of
us
no
a
handling Flori¬
comprehensive
familiarity
bonds.
We
with
will
inquiry
.any
obligation.
with
these
be
bonds
purchased will
valid
regarding
The right of acceptance
par.
rejection
!_ the
of
bonds
served.
all
or
cording
tendered
so
to
business
re¬
Immediate confirmation
Nov.
The
4,
1942.
1943
■■
session
of
Legislature will be
prove
markets,
the
asked
par,
Abe
road
district
was
recently
it
"B"
bonds
the
Arkansas
Board.
State
These
Refunding
non-interest
are
bearing obligations, and carry a
maturity date of 1949. They were
issued in
1934
other
on
in
lieu
highway
of
interest
bonds.
When
counter
the
redemotion
of
the
then
fair
and
who
meeting
the
a
Phila-,
delpiha Municipal Bond Club on
Oct. 2, characterized the
proposed
as
its
an
example of "regulation
worst"
and said
that the
SEC's greatest mistake is its fail¬
series
ari effort
..than
to
curb
the
rare
when abuses in that
business,
Cancels
to
Supervisors of the
above-mentioned
city
scinded
decision,
earlier
be
are
widespread
so
the
rule, rather than the
exception. Then, in my opinion,
and only then, is it
justifiable
Pre-Election Bond Sale
an
as
to
has
to postpone asking for bids until
after the bonds have been author¬
honest
and
legiti¬
honest-
Under such cir¬
men.
cumstances,
tioned in these columns last
week,
to receive bids Oct.
13 on the
upon
transactions
business
re¬
men¬
prospective $7,950,000 Market St.
railway revenue bond issue. The
question of issuing the bonds will
be determined by
popular vote
at the Nov. 3 election.
Decision
impose burdens
mate
unfortunately,
business
man
'
.
'
7
and
legitimate transaction is the
forth
**
j
!
«■
County
77
,
-
12
'
'
•
of
\
bonds
;
•
maturing principal and interest
charges on all bond issues, State
and local, and the
report states
bonds
sions
bonds
the
legal
the
limit.
now
51.2%
of
outstanding are
because
in
all
il¬
of
had
of
in
and
Commission has
slow
coupon
payment
of
a
of
a
rare
in
and
the
local
taxing
units.
.
Flan, Approved
In ?
a
State
special
on
1942,
a
Dur¬
period the annual
outstanding
on
various
subdivi¬
been reduced
by
$2,-
51%.
to
Such charges
$3,988,000 in 1930
only $1,936,000 in11942.
ing state obligations.
gram
"we
we
tions
The
was
cut
State's
1932
$12,168,000,
total
or
14%.
indebtedness
in
was
within $250,000 of the
high, the figure being
$86,131,000.
The 1942 aggregate
all-time
is
reported
at $73,963,000.
outstanding bonds of the
mature serially and all of
the local governmental
obligations
are
serial or callable
except 10
old
also
issues, Jhe report
noted
that
a
says.
It is
of
over
sum
$12,250,000 was available in cash
investments, as of July 2,
and
Thus $1,024,919.39 of
the
1942,
for
the
purpose
of
are
unable
most
to
of the
have in hand.
we
respect to the State itself.
ten-years ended July 2, -1942r the
total of outstanding State1
obliga¬
The
Refunding Board
tenders
October
until
11:00
of the State of Arkansas will re¬
A. M., Central War Time,
o'clock
now
employ prof¬
money
paying
$480,561
shall
have
laid
mately- $6,600,000
on
out
approxi¬
this account."
The Governor estimated
that
tween
$4,500,000 and
All
a
bonds
purchased
offering prices, which
will
must
be
purchased
at
the
be
obtained
securities
on
purchases
the proposed
to
offset
or
rejection of all
or
any
4, 1942.
Forms
to
be
used
in
submitting tenders
tained, bv request, at the office
This
notice
is
given
in
of the
may
be
the State would make
available to
the
Federal Government millions
sorely needed for prose¬
of dollars
cution of
the
war.
"I" considering my rcrom
mendations," the Governor told
the legislators, "I want it
borne
in
mind
that my
proposal is
(Continued
on
page 1258)
loss
of
resolution
of
^0^'^
on
his
life, payable
the concern, would
to
offset this
ob¬
Refunding Board.
pursuance
adopted by the Refunding Board of the
State
and, as provided by Act 11 of the General
Insurance
financial blow.
duly
Arkansas,
Assembly of the
State of Arkansas,
approved February 12,
1934, and Act 4 of
the General
Assembly of the State of Arkansas, approved
January 28, 1941.
Dated
this
2nd
day of October, 1942.
Refunding Board of
the State of Arkansas
rudential
By EARL PAGE,
Treasurer of State and Member
of
Refunding Board of the State
of Arkansas
the
.
ATTEST:
C. G.
HALL,
Secretary of the Refunding Board
of
the
State
of Arkansas
Jitsurattr? v
the
carrying charges on the State's
obligations.
By purchasing
the
Federal war bonds, he
continued,
lowest
be less than par.
The right of
part of the bonds so ten¬
dered is reserved.
Immediate confirmation will be made of
accepted tenders, and payment will
be made on November
acceptance
if he died?
be¬
$5,000,000
can
paying
firm sustain
we
year
indebtedness is ultimately retired
Key Man in Your Business
your
a
interest charges and before the
ex¬
Would
which
Meanwhile,
28,
1942, at the State: Treasurer's
Office, Capitol
Building, in Little Rock, Arkansas, of non-interest
bearing
STATE OF ARKANSAS
ROAD DISTRICT REFUNDING
BONDS, SERIES B. 7
pro¬
was
itably
are
In the
(The
State of Arkansas
ceive
29,
unanimously approved
by both Houses of the
Legis¬
lature on Sept. 30)7
As matters
now
stand, the Governor said,
in
the
That
the
■
industry
Notice of Tender •>
to
Sept.
message
Legislature
occurrence
the
,\
report
also
includes
a
thumb-nail sketch of
every out¬
standing bond issue of the State
overwhelming majority
transactions
ma¬
•;
The
will outweigh its
disadvantages.
When, however, the abuse com¬
and the
delay,
at
'
ception, and the benefit of the
regulation, in all probability,
plained of is
never
a
or
bond
v'
turity.
Commendable progress in debt
reduction is also indicated with
of
excess
in
1942,
$34,597,100.
the
or
amounted
All
of the city's assessed
valuation. * It also asserts that
the
a
Virginia Debt Retirement
the
$43,675,900 in
same
052,000,
State
approximately
to
ing the
4.5%
10%
that
had
the
v
■
July '2,
interest charges
excluded the charter debt limit
of
of
special administra¬
a
The
outstand¬
clined
issued
originally
units
reduction
sub¬
tabulations
that sapproximately
ended
Commission.
conditioned by
Governor Darden of
Virginia rec¬
districts and
municipalities, re- ' ommended a plan to provide for
daced their outstanding obliga; liquidation of the State's debt of
tions by 44%. * As against the
$18,550,673 by buying long-term
peak or all-time high of $78,- ? Federal securities with
maturities
273,000 in 1930, the total had de¬
comparable to those on
during the last
toward solving its funded
problem, according to Mayor
all
of;West Vir¬
V.
the
are
Commission, together
the State Treasurer, sees
that adequate funds are avail¬
is
State, com¬
prising counties, districts, school
progress
auditor's
State
on
sub¬
able at the proper place to meet
1930-1932, is particularly
years
local
Circuit Court/ seeking
The
the
various
with
report
The report shows that
we quote as follows:
The city has made a very
show
15th
interesting.
source
year
the
bond for
tion.
subdivisions
,*
invalidated
stantial
of
high in
The City of Berkley, Mich.,
has;
begun litigation in the' Oakland'
hav6
in
the
creating
but
impressive record of debt
by the State Govern¬
its local
of
These issues
interest
Baldwin,
ginia. ; A comparison of such in¬
debtedness at July 2,
1942, as con¬
trasted with the peak or all-time
the disease."
Michigan City Questions
Validity Of Bonds>.;7
or
industry,
isting law.
The Board of
■
and
•
sell them for less than
par as pro¬
vided for under terms of the ex¬
act
a
of
George P. Alderson, Tax Commis¬
the overwhelming major¬
upon
regulation of business and indus¬ debt
"B" bonds in 1949.
Under the try in general and the
conditions Ernest R. Baldwin in a
report to
Statute, the State Refunding Board under which any
regulation can the Commissioners.
\ ■ vjv.j: .•
.was
permitted
to
redeem
the be justified as in the
public inter¬
bonds on tenders prior .to 1949 est.
According
to
his
report,- in
His remarks in thfs connec¬
March
of
this
at a price "less than
year
the
total
par.", Since tion, in our opinion, are
extremely bonded -debt of the
Ihe1 bondholders cannot be forced
city was $2,~timely and are deserving of the
001,795.50. "Mayur Baldwin said
to dispose of the obligations be¬ widest
dissemination.
They are that
litigation has been started in
fore maturity, the fund
estab¬
reproduced herewith: 7'.77 7 "
the Oakland County Circuit Court
lished for their payment must re¬
"I
am
of
the opinion
that
which he believes will determine
main idle in St,
Louis, Mo., until
regulation of a business, or in¬
the validity of a great portion of
1949, unless there is a desire to
dustry, is in the public interest
these bonds.
San Francisco
set
■
toapproximately1
$1,000,000 of its outstanding bonds
ure
to
recognize that anything
on
the
ground that they were
which impedes "the free flow of
illegally". issued,
according
to
State
and
municipal bonds di¬
Pontiac press reports, from which
rectly affects the States and mu¬
at
Mayor
-.77
'
the business and to put burdens r sioner
.
addressed
of
possibly
greatly reduced
above J ment and
to
handicap
the
great majority of honest men in
*
1
the State's other $136,000,000 of
highway debt was refunded in nicipalities."
|
1941, a legislative act provided
The noted attorney
accepted the
that $2,207,326 be held in cash occasion to
discuss the matter of
for
legitimate,
board,
Club of New York.
luncheon
rule
An
isolated illegitimate transaction,
is absurd.
The cure is worse
Wood,
can
reduction
are
ity of legitimate transactions, in
Mr.
announced by
of DeQue6n, Ark.,
.lawyer-banker and a .member of
IUINOIS
law firm of Thomson,
Hoffman, New York City,
President of the Municipal
and
at
Collins,
IIDCV&J^^S/CHICACO
sharply assailed by
Wood, a member of the
Bond
redemption
State
of the
Wood &
ap¬
proposal authorizing the
of
all
outstanding
a
scppe
municipal
State
to
the
bond
was
David M.
■
.
within
municipal
further regulation
and payment will be made
ers,
the
of its
jurisdiction, through the medium
of its proposed rule X-15C1-10 for
will be made of accepted tend¬
on
1ST NM »ANK
Exchange Commission
include
it
West Virginia's And Local
Debts Down
Sharply
A
RECrummer K. Company
The current attempt of the Se¬
curities and
debt
sinking funds required
bonds
divisions, except for six issues
dated prior to 1921 which were
issued before the passage of the
•
Proposed SEC Rule
of
is
to
ask
rates.: '
or
part
any
the
,
obligations.
be
thus
The city intends to pay all
indebtedness promptly, ac¬
will
D. M. Wood Attacks
bought at the lowest offering
prices, which must be less than
j
i
all
pay.
glad
Treasurer and member of the Re¬
funding Board, Little Rock, Ark.
All
amount
mission administers all interest
setting the
legal debt of the city at approxi¬
mately $976,876.31.
The Mayor
said that the
city will be faced
MUNICIPAL BONDS
conference at¬
a
representatives.
Oct.
on
made at
was
tended by local bankers and bond
house
the
on
and
by, this
page of
The Mayor-said the
city expects
litigation will reduce the city debt
FLORIDA
V
1942
dmttpang of Amrrira
Home Office, NEWARK, N. J.
4
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".Volume 156
i,
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4114
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.
.
.
.
.
.
U.S. Government Securities
•
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•
*
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.
♦
•
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s
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.
loans and Discounts
Bank
Buildings
•
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.
Customers
.
.
.
s
.
.
•
•
.
•
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.
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$193,155,800.36 '
330,891,777.52
&
18,459,249.57
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41,133,263.45
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85,684,084.25
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2,750,000.00
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(Payable October 1, 1942)
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Reserve for
-Dividend
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Reserve for Taxes
'
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33,185,464.19
8„.
3,079,104.59
-
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875,000.00
;
2,588,340.05
Unearned Discount and Accrued Interest
;•««#•♦
209,373.56
Acceptances
Deposits
;
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$675,268,196.73
•
Evan Randolph, president
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4
CHARLES P. BLINN, JR., Executive
Vice-President;
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directors
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RODMAN E. GRISCOM
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A.J. COUNTY
JOHN HAMPTON BARNES
■
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GEORGE F. TYLER
CHARLTON YARNALL
^
A. G. ROSENGARTEN
WILLIAM H. KINGSLEY
EVAN RANDOLPH
WILLIAM JAY TURNER
CHARLES P. BLINN, JR.
member
of
l4l6 CKestiiut Street
I. W. BOOTH
the
federal
v
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JOHN O. PL ATT
'
deposit
p BLAIR L£E
WILLIAM CLARKE MASON
1AJW
G> WILL1NG PEPPER
RICHARD D. WOOD
WILLIAM M. POTTS
Vv1
j0HN F MACKLIN
SYDNEY E. HUTCHINSON
MORRIS L. CLOTHIER
"•
•
'
insurance
WILLIAM L. McLEAN, JR.
J. R. DOWNES
corporation
3Znd Street &) Lancaster Avenue
421 Chestnut Street
r
L
is
urer
(Continued from page 1256)
predicated upon an irrevocable
commitment
to
the
debt. It
chased
now
its
debt
the
that
call
until
due,
obligations fall due
until
1966 in fixed
annually
we
amounts.
against these obli¬
He said that
gations the various sinking funds
hold securities carried at $6,247,-
explained, was
the
purpose
for
which pur- * somewhat less than present value.
There are largely Virginia mu¬
chased, the plan is, I believe,
nicipal bonds and bonds of State
sound."
1
The
Governor
recommended institutions of higher learning,
that the money to liquidate the and include $1,754,800 in stock of
Richmond,
Fredericksburg
debt be turned over to the sinking the
In addi¬
fund
commissioners for
invest¬ and Potomac Railroad.
ment.
He also advocated that the tion, he called attention to a de518.23
he
which,
suant
000.
payments, which payments repre¬
money
ice, the finance director pointed
out that retirement and interest
yf/f////IfS//ff/f/f/J/f/fSS//////SfJf/////////JSS/J/f////J////J///JJ//J///JM/JJM//<
matter of the
effect
pending liti£
'
«
Power
notwithstanding
that
is
District
sumers
bonds
Nebraska
the
Debt Cut
the
Consumers
Finance.
Consumers District was
its
and
issued
bonds
the
to
ered
Business Established 1818
subsequent
to the
in
PRIVATE BANKERS
ity,
than
NEW YORK
PHILADELPHIA
BOSTON
-
purchases
private
privately
or
from-
a-
a
——-
Cash
Hand
on
United States Government Securities
Valued
at
Call Loans
Cost
and
Valued
at
and
Cost
.
or
.
6,255,664.57
Maturing Within 1 Year
Market whichever Lower
or
59,654,230.95
.
.
.
Acceptances of Other Banks
Securities Called
Loans
,
Market whichever Lower
or
$ 37,268,543-30
.
.
Advances
...
...
.
.
.
Stocks
Market whichever Lower
.
.
,
5,435,749.34
.
•
.
.28,186,997.77
,
.
,
13,901,249.63
.
.
,
6,241,049 91
Marketable Bonds and
Valued
at
Cost
or
Customers' Liability
Acceptances
on
-Other-Assets-
year
the
of
report
State
Aug.1 31, 1942, of $140,995,500.
confidently
McKibben
that the State would
predicted
available
funds
have
property
other
meet
to
the $25,978,000 in bonds
matur¬
ing to the close of 1944. He also
public
said that
no
financing
new
was
in the future,, point¬
in prospect
ing out that the State has been
operating
school
and
fiscal
debt of $144,411,-
on
pay-as-you-go-
a
sum-
Mr. McKibben said the State's
liability for' payments "in lieu of"
highway
issues
and
two
taxes" of such districts where fa¬ two
331,176.96
'v
-
•
.
a*
purposes1
-
^ assets
DueVkom Banks.
village
city,
latest
Mr.
owner
owned
1942
bonded
lowest
The
years.
equal to the- basis and had created a general
fund cash balance of more than
amounts
paid by such private
$47,000,000.
owner
in the year immediately
Maturities facing the State be¬
preceding
such
purchase.
The
tween now and the end of 1944
Platte Valley Public Power and
Irrigation District, as well as the include the remaining $6,179,000
of an original $55,000,000 soldiers'
two other hydro districts and sev¬
eral rural electrification districts, compensation issue, the remain¬
ing $5,200,000 of an orginal $20,constructed electric facilities, in¬
stead of purchasing existing fa¬ 000,000 emergency relief flotation,
of the second emer¬
cilities.
Under the terms of the $4,200,000
1939
amendment
to
the Power gency relief issue, and the $10,District Law, no provision was
000,000 balance of a $60,000,000
made by the Legislature fixing 4% highway flotation.
of Condition, September 30, 1942
and
on
utility, the district
required topay out of its revenue- annually
"in
lieu
of
taxes"' for, Stated
.
county,
Statement
real
its
the
15
Treasurer disclosed a bonded debt
which
existing privately owned util¬
an
least
at
closed
a
The
provides that when a public power
district purchases the property of
Brown Brothers Harriman & Co.
result of these pay¬
a
500, as contrasted with the total
of $213,298,000
which prevailed
at the end of 1936 fiscal period.
organized
Public Power District Law,
As
$115,017,500,
to
with
amendment
1939
Y;
ments, the total debt will be low¬
The
District.
cilities
$157,274,662.43
constructed
were
instead
emergency
relief issues were paid
purchased from a private util-I from motor vehicle license and
ity company, except on the small' motor fuel taxes, and thaf retire¬
ment and interest of those obliga¬
of
:;'-vuvv
liabilities
.
Deposits—Time
,
.
.
.
.
of
anjount
.$132,398,079.36
.
Deposits—Demand
they have
$136,102,333-68
3,704,254.32
purchased
owners.
The
.$
Acceptances
property which
real
|
from private
tions
District,
f
other
pur¬
charge
first
a
were
those revenues.
.
Consumers
in
Portfolio
.
of
issue
$96,000,000
6,739,877.27
for
etc.
Contingencies
f. - 193,762.64
.....
$
..........
INCORPORATED
2,000,000.00
to
Condensed Statement of Condition
Secure Public Monies U. S. Government Securities
Par Value $goo,ooo.
Cash
upon
4%
on
Ilaiul and Due
Direct and
FACILITIES
PARTNERS
E. R. IIarriman
Complete Facilities for
Stock
W. A. Harriman
Domestic and
Deposit Accounts
•
Loans
.
Acceptances
Brokers for Purchase and
Ray Morris
of
Banks..$185,462,847.32
Sale
403,675,163.50
31,174,695.70
.Municipal Bonds and Notes
of the Federal Reserve Bunk.
1,200,000.00
........
{including Shares
first
tax
from this tax are needed to serv¬
ice these bonds."
Florida Business At
Highest Summer Level
Breed
Charles F.
a lister c.
colquhoun
Pennington, General Manager
♦Charles W. Eli a son, Jr.
Banking House.
and
levels known for the
•
Thomas McCance
♦Donald K. Walker
and
bacco
last
cotton
selling
are
at
year.
establishments are in
increasing number throughout the
Military
State, and more and more of the
large hotels ands clubs are being
over by the services; for ex¬
taken
the
Miami-Biltmore at
the
Bel-Air at Clear¬
water, the Boca Raton at Boca
Raton, to name a few. These are
in addition to the approximately
150 hotels taken over. in Miami
ample,
Miami,
Beach.
entertained
Some hope is being
by natives that the coming tourist
season
will not be too bad, due
to
the
possibility of Northerners
going South for longer stays be¬
cause of fuel
oil rationing.
Decline In State
Highway Income Halted
A
leveling off in the rate of de¬
of State highway revenues
cline
last three months as com¬
the
is being
$712,834,594.11
Arthur K. Paddock
Eugene W. Stetson Jr.
Joseph R. Kenny
Arthur R. Rowe
Bentley W. Warren Jr.
Joseph C. Lucey
GeorgeE. Tall,Comptroller
Harry L. Wills
/
$20,000,000.00
20,000,000.00
Capi tal
Surplus..
Undivided Profits
.
have shown only a neg¬
J
914,867.47
ligible chance since June. It fur¬
pointed out that the decline
August shown by the unrationed
States
was
slightly less
in
the
<
fects
are
$60,203,096.56 in the above statement
pledged to qualify for fiduciary powers, to secure
as
public monks
required by law, and for other purposes.
by the
Superintendent of Banks of the State of New York and by the Department of
Banking of the Commonwealth of Pennsylvania. Subject to supervision and ex¬
amination by the Commissioner of Banks of the Commonwealth of Massachusetts,
Member Federal Reserve
Member Federal
October 2, 1942
far
was
declaring
of
imposed
the
that
off
System
Deposit Insurance Corporation
States
rationed would not be
added,
It
retard
not
data
was
however,
restrictions
added
the
should
ef¬
rationing
shown until September
that
sta¬
the
the
in
22
July
trend
from
drastic
more
in
the respec¬
said
company
revenues
the
leveling
to any marked de¬
process
gree.
Highway
revenues
in
of
the
ten
in
the
included
rationed: States
survey
41,315,887,32
$712,834,594.11
United States Government securities carried at
recorded
decrease
compared with
1941 periods.
The
in
1,310,335.50
;
1,315,887.32
whose
ther
showed a decline of 2.1%
June, compared with the same
month.
In July the decline
1941
was
♦AViii in Government Service.
highway
States,
revenues
. .
-
;•/:...........
Total Liabilities.
Arthur B. Smith, Auditor
Private Bankers and subject to examination and regulation
$669,293,503.82
12,122,606.42
gaud Letters of Credit
Issued.......................
said the leveling off
conspicuous in the case of the
available.
Payable and Miscellaneous
A . • *t
Liabilities.. I.
'
William A. Hess
'Y"'
V'-'/'/Y
Accoun ts
Accept ancesOutstandin
.
■
$657,170,897.40
Official Checks Outstanding.
rationed and 17 un-
States.
The survey
bilized,
1,310,335.50
Deposits..
♦John C. West
L. Parks Shipley
summer
prices 50% to 60% above last year.
Post office indices throughout the
State are 10% to 100% ahead of
already
Assistant Managers
as
State
the
time,; according to a current cir¬
cular by Welsh, Davis & Co., of
Chicago. The citrus season was
the best in history, as was the
cattle industry both as to quality
and volume as well as price. To¬
tive
2,363,507.47
4,000,000.00
Acceptances
liabilities:
Edwin K. Merrill
Licensed
in
this summer
est
62,605,217.52
Receivable, etc...
..
■
Ernest E.Nelson
Stephen Y.Hokd
Howard P. Maeder
*H. Pelham Curtis
MerrittT. Cooke
indicate that
of Florida
has been at the high¬
Unofficial reports
business
July,
Liability of Customers on Letters of Credit
Securities
Managers
Edward Abrams
receipts
the
of
fraction
minor
than
Total Assets
H. D.
on
bonds is a
charge on retailers' (sales)
revenue," he said.
"Only a
21,042,827.10
Limited)
Loans and Bills Purchased.
Accrued Interest, Accounts
Investment Advisory Service.
Knight Woollf.y
Louis Curtis
interest
rationed
Fully Guaranteed.
of Morgan Gren fell § Co.
Commercial Letters of Credit
PrescottS. Bush
from,
Other Bonds and Securities
Foreign Banking
Moreau D. Brown
fuel
payment of the
and
"Retirement
September 30,1942
United States Government Securities,
State and
Thatcher M. Brown
would
soldiers' compensation
was
Pledged
rev¬
it
motor
and
license
rationed
ASSETS
are
tax
said
McKibben
principal and interest on the high¬
way and relief bonds.
now
NEW YORK
13,426,165.22
11,426,165.22
$157,274,662.43
There
fuel
motor
of $47,654,000.
Sept. 30 by Dun & Bradstreet in
an
analysis
of receipts of 27
States.
The group includes ten
States in the area where gasoline
Y
J. P. MORGAN & CO.
1,294,007.19
.........
Capital
Surplus
revenue
pared with 1941 levels was noted
'
Reserve
took
total,
Mr.
in
6,258,393.70
481,483-57
.
.
Expenses,
Accrued Interest,
reserve
enues
The State has an¬
Less Own Acceptances
Held
license
Likewise, he said,
for emergency relief
only $4,562,000 out
taxes to endanger
George B. McKibben, Director of
State
of
$25 Million
standing
under
created
of
a
Con¬
,
out
take "drastic reductions" in motor
$25,978,000 reduction in its out¬
debt between now and
the
end
of
1944,
according to
this
District, because the Legislature
has already fixed the tax liability
as
Court'.
the
vehicle
level
law
same
Supreme
Illinois Plans
We
District,
the
vehicle
required
of
total
30
June
$9,440,000
which would be liable
for
taxes
is s negligible,
in the
event Judge Tewell's decision of
July 18, 1942, should be upheld by
the Platte Valley
the
only
property
whichever way it is finally
determined, will not materially
affect the operations of the Con¬
Public
of the prop¬
ended
year
motor
case,
sumers
highway bonds in the fiscal
on
as
The State of Illinois will effect
in
of
available for debt serv¬
of $26,986,000.
-
decision
ultimate
The
inasmuch
Therefore,
next
gations is March 1, 1945.
Illustrating
the
amount
purchased from privately owned
utilities, any amount of personal
the memorandum1 in
from
such
highway
the
erty of the Consumers District was
memorandum, issued
Oct. 1
by John Nuveen & Co.,
Chicago.The bond house prepared
its analysis in response to numer¬
ous
inquiries
emanating
from
quote
part:
un¬
making
now
-substantially 100%
a
holders of the district's bonds.
1939
and
by private owners as both
real estate and personal property
Power District is the sub¬
of
ject
this
law,
paid
bonds of the Consumers
on
is
resolutions,
gation involving the local tax lia¬
bility of Nebraska Public Power
Districts in relation to its possible
Public
the
to
der the terms of its various bond
taxes.
The
provisions
amendment
Litigation Clarified
explained
executive
chief
State
of
bonds outstanding, but
maturity on those obli¬
posit of $5,000,000 in the sinking
by the 1942 regular session
of the State Legislature, making
a total of something over $11,000,-
fund
Consumers Power District
out
the Virginia
Consequent¬
and maturity.
deposits.
cannot
-the
cannot, with safety, count
uppn using this fund for other
purposes, since the sale of the
securities
might
entail
large
losses.
However, if ;they are
held to maturity, and used for
ly,
employ; funds profitably
Pointing
between
decline
will
longer able, as in the
no
to
in time
securities pur¬
be that the
empowered to
buy short-term notes with money
in the treasury. He said the Treas¬
past,
to
Thursday, October 8, 1942
sent the same amounts heretofore
State Treasurer be
Municipal News And
may
CHRONICLE
THE COMMERCIAL & FINANCIAL
1258
23.9%
and
in August
it was
22.4%.
The 17 unrationed States
showed
an
8.7%
decline in June,
14% in July and 13.5% in August.
Attention was focused on the
fact that the rate of decline in the
rationed
greater
States.
States
than
in
had
the
been
much
unrationed
Volume
Number 4114
156
THE COMMERCIAL & FINANCIAL* CHRONICLE
'
The
;
said
survey
that mileage
restrictions to be imposed in the
unrationed
States
would
bring
about a -material change in over¬
all
also that these
It said
trend.
restrictions would eliminate much
burgh issues and 0.2% :in
a
group
of miscellaneous issues.
Year-to-date
show
the
results
following
cities
by
advances:
3.6%,
Philadelphia
issues
of the divergence in the trends 12.2%, Pittsburgh issues 11.7% and
shown by the rationed and un¬ the group of miscellaneous issues
rationed States.
3.4%.
be
of
the statute books of all New
on
England States as partial
sation
compen¬
for
heavy
tax
revenue
from other sources, in the
lpsses
'
—
with
greatest
an
gain
year-to-date
tively,
for
September
and
increase of
9.3%, the Price
Average revealed, the gain for
September
being
0.8%.
While
apartment hotel issues increased
0.8% during September they still
Treasury
Offering
Bill
genthau announced
the
the
increase
for
showed
the
4.3%
a
although
year
change
increase
there
i
in
this
September.
'
bills
to
A
mature
issues
offered
6.7%.
year
for
was
Oct.
the
High, 99.924, equivalent
discount
5
be
91-day
dated
Jan.
6,
Oct. 5 that
on
$400,000,000,
Oct.
and
1943, which
to
Commissioner
chusetts
of
approximately
rate
of
0.369%.
for
at
discount
(14%
the
low
The details
follows:
of this
are
There
as
(
lar
Total applied
\
issue
for, $773,618,000.
was a
issue
amount
of
of
in
The sales
Every New England State
face "at least
must
and
restaurants
50%
a
loss of
gasoline tax revenues," according
to Mr. Long.
This large revenue
loss,
he
continued, would not
seriously upset the financial struc¬
ture
of
any
of
the
Northern
States
costs
will
"highway department
drop drastically and
there
will
be
as
duction
in
at least
welfare
25%
a
costs
re¬
and
Is Your Business Vulnerable?
a
drop of about 15% in the costs of
maintaining the school systems."
Major Sales
Scheduled
We list herewith the
•
im¬
more
portant municipal offerings ($500,000
over—short term issues
or
cluded),
in the
the
which
future.
near
successful
The
the
up
of
names
the
and
last
A Stock Retirement Plan financed
ex¬
come
bidder
for
runner-up
issue sold
to
are
previous
the smooth passage
of
ing from the death of
a
your
by life insurance will
business through the
stockholder.
emergency
assure
result¬
<
also appended.
are
(Ed. Note—Very few municipal
.
bond
issues
scheduled
future.
of
for
major
size
in
award
are
the
With
expenditures for
local improvements held to bare
necessities
by the
demands of
war-time
policies,
the
naturally is that for
the
come
of
amount
coming to
A
housing
bids
for
bonds
of
issuers
the
tinent
Oct.
"Chronicle"
of
of
and his heirs will receive the
Each
to
agrees
insured for the
that in the
the surviving
proceeds of the insurance.'
5,
8500,000
or
following:
Authority,
event
of
stockholders,
*
v
Hartford,
tion to their present
holdings,
can
are
fairly compensated.
increased in propor¬
continue without embarrassment.
a
include
the
$10,500,000
$2,900,000
in
The survivors, whose interests in the business
The
States.'-'
more
per¬
the
in
1198,
page
on
their
of
other
as
"Uhited
series
Names
published
—Thus the family of the deceased stockholder is
issued
their
amounts
well
as
Oct.
have
on
$22,269,000.
were
captioned
oflerings
holdings.
his death, his stock will be transferred
are
14
14
the
and
offerings
facts
report
issues
new
authorities
until
aggregating
respective
time to
value of their respective
market will be small.
OCTOBER
Eleven
calls
prospect
some
Under this plan, the lives of stockholders
near
Dallas,
Pittsburgh Housing
84,300,000 Houston, Texas,
Pa.,
Texas,
and
Conn..
$520,000
$2,700,000
Angeles,
Los
Calif.
Sales
scheduled
Schenectady,
000.
22
$589,000 bonds to.
Forgan
bid
of
&
was
Co,,
Oct.
a
14
bonds
last
city
highest
Next
& Co.,
account.
simple
from its
arrangement,
neglect.
isn't it?
Yet what misfortunes have
come
C
$648,-
by the Marine'Trust
and Ban- Bros.
A
awarded
headed by Glore,
York.
:
include
also
totaling
the
group
New
tendered
Buffalo,
for
Y.,
N.
Jan.
On
<
We suggest that
you, as a
Co.
in joint
-1
stockholder, give serious thought
Stock Retirement Plan for
your
own
business enterprise.
It
to
a
goes
hand in hand with efficient
management.
Real Estate Price Average
Continues
Upward
"
The
Real
Amott-Baker
Estate
Bond Price
Average, covering 200
estate securities, continued its
real
in
trend
upward
the
glad
to
give
you
full information.
for
September
consecutive
third
A Massachusets Mutual
representative will be
month. The
increase for September was
0.9%
which
compared with gains of
1.6% during August and 0.7% dur¬
ing July. On Sept. 30, the average
price per $1,000 bond stood at $317
as
compared to $314 on Aug. 31
and $302 at the close of 1941. The
year-to-date gain for the. averages
4.9%.
was
It is significant to note that dur¬
ing
,
of
issues
September
all
showed
Amott Baker & Co.
that
only
during
classificatiaps
improvement,
stated, adding
the
months
January and August in this
has such
an
of
LIFE
INSURANCE
COMPANY
year
Organized 1851
over-all improvement
previously taken place.
Of
the
survey
a
200
issues
total of 80
used
in
increased
the
in
price, 27 declined and 93 remained
unchanged during the month.
By cities results for the month
showed increases of 0.8%
ton
sues
issues,
(this
in Bos¬
1.7% in New York is¬
group
comprises
the
sub-division), 0.6%
for
Philadelphia .issues,. 2.5% in Pitts¬
largest
SPRINGFIELD, MASSACHUSETTS
*
Bertrand J.
Perry, President
on
$300,056,000.
liquor, cigarettes, soft drinks, and
sold
was
maturity of
bills
he said, probably will come
a levy on the socalled
consumption • goods
as
hotels.
amount5'bid
price
ac¬
cepted.)
no
the form of
meals
approximately
of the
tax,
in
0.376%
Average price, 99.90T,Equivalent
were
Oct. 2, were opened on
at
the
Federal
Reserve
on
Cor¬
-
0.301%
-anaum,
opinion of Henry F. Long, Massar
porations and Taxation.
rate of
Low, 99.905, equivalent rate cf
discount
or
Treasury per
7
approximately
per annum.
banks.
during
group
for
thereabouts, of
0.7% and the
miscellaneous
of
group
was
tenders
$400,572,000.
Range of accepted bids:
Secretary of the Treasury Mor-
year-to-date. The September gain
in theatre issues
Total accepted,
Result Of
building issues increased
during the month bringing
their total gain for the
year to
7.2%.
Apartment issues showed
gains of 1.5% and 3.7%, respec¬
1.7%
.
building, hotel issues still show
the
will
soon
.
And in the classification by type
Says N. E. States May V-;
Impose Sales Taxes
Some form of sales tax
,
decline of 6% for the year.
a
Office
Boston issues 4.3%, New York is¬
sues
show
a
Oct.
simi¬
7
in
•
r r> 1
» N*W-«
.Vl«j |n>
'••wvpsu'wrn'-"**.-*#- w.«u» c.
would
Hemingway Elected
.lr,
>
Divisions
gestion, the Administrative Com¬
accept¬
ance
df their resignations'to the
council in the
following state¬
•
77,
.
best
would
v
ful¬
purpose.'/' fd :
cancellation of
As is known the
Association to the Government in
its
"program
war."
■
winning
for
.the
'">•
" v.
Navy and pray God to give
the wisdom to understand,
courage to discharge the
the
and
this year in
Secretary of the Treasury
his
gigantic
travel
guiding principle
should be the fulfillment as near¬
the
convention
convention.
It
has been the will of the Associa¬
Upon his inauguration as Presi¬
of the Association
at the
meeting of the
of the
conclusion
convention
in
of raising the
for the success¬
task
money necessary
ful conduct of the war.
with
credited
are
the
85%
people
The banks
having sold
of
the
all
Their
bonds that have been sold.
not
will
Rather, they will exert
lag.
Furthermore, the Ameri¬
Bankers Association offers the
bonds.
facilities of its large,
association
bankers
Bankers
and
Commerce
time
is
he
At the present
member
a
of the Ad¬
Committee, the
nance
and
Council
the
Committee'
ministrative
the
Marine-Commis¬
and
of the ABA,
sion
of
member
a
Fi¬
Executive
War
National
the
Bankers
Association,
and is
a
member of the Board of Regents
of The Graduate School of Bank¬
In 1941 he
ing of the ABA.
First
elected
the
Association,
the
^
-
the
assisted in
nance
He
Fi¬
Reconstruction
Corporation and was Chair¬
of its Advisory Committee
tively engaged in the work of the
"We want
to
say
to the Secre¬
during 1932 and 1933.
"Mr.
•
St.
Chamber
Louis
over
;
Hemingway has been ac¬
long period
a
served
of years and
during a
Chairman
its
as
Commerce
of
tary of the Treasury that he does
not have to worry much" about
two-year period, 1937-39. He has
also been active in the affairs of
that
the
problem because there is-vin
this country a sound banking sys¬
t
RESOURCES,.
Banks
Cash and Due from
.
.
U. S. Government Securilies
;
F. 11. A. Mortgages . ./.
State and Municipal Bonds
■
.
.
,
.
.
.
7'-'..
.
,30.224.840.26
...
.
.
.
.
.
Other Securities
.
.
V.
.
Loans, Bills Purchased
V
,
;
A
.
7
3,550.713.50
'
Preferred Stock.
in
>
Surplus and
/ ^Undivided
v■.*
-
,
/ *
,
,
V
♦
...»
•
«
■
3,195,630.00 /
meetings
as
1,112,353,210.08
Chairman, Lincoln
Savings Bank
Alkali Works, Inc.
^
j
i
Chairman, The Sperry &
;
I
j.
J
|.'
-
Peabody & Co., Inc<
.
John i..
■}fU' 'LOU it. CK AND ALL
President,
Lambert
r
Johnston
''
f
puller
Corporation.
i
».
j.
President, Spicer
''
,
Company
Barilett
President
President,
Atkinson
Vice-President
I-1-
New York
City
Vice-chairman
x
'
President, johitfdf*'
1939.
-
He
with The
tional
under
Bank
,
Na¬
First
the
of
name
the First and Merchants National
■■Bank.v>;i!iy.^";;*Y^
On Jan.
became
1, 1927, Mr. Augustine,
of
Vice-President
a
the
Shawmut Bank of Bos-;
National
ton; which position he now holds.
He
is
of the
Vice-President
also
Hingham Trust Company, Hing- ham, Mass.; Director of the Mel¬
rose
Trust
Company,
Melrose, \
;.;
Mass.; and Trustee of the Frank-;
lin Savings Bank of Boston.* Hisfurther
associations
"Mr.
active
indicated
are
follows:
as
-7
Augustine
has
taken
an
part in both state and na-
A
f'
bank, associations
during!
his banking career,
In addition to serving on many committees of
the Virginia Bankers Association,,
tional
he
served
of
Treasurer
as
the ;
Association in 1916 and Secretary,
He also served
1919.
in
Treas¬
as
Massachusetts Bank-;
Association for the year 1933of
urer
ers
the
1934 and has since held other of¬
fices
on
for the Massachusetts
He has also
Bankers Association.
been
"7
committees, commissions,;
councils
or
in
active
the
Reserve
Association
City
1913,
since
its President in the year4
was
1928-1929.""
has" also" held
He
of
number
committee-
ments
organization
dedicated
to
fact
finding in the interest /of moife
a""
appoint¬
Association,/ including
efficient government."
j7
terms
He
Bankers
"77
severa 1
Executive Council,
the
on
was
American
the
in
elected
President
of the
State
the
to
Coker with
David R.
late
whom
.
he
in 1942."-
v
,
^"
-!; 7,7"
the
Managing
Re¬
f
The • proposed
transfer - of • the - 7banking associations Exchange membership of. Henry
corporation.
Director of this
his
garding
;
.
quote:
we
Seaman
Brevoort
y;
1920 Mr.
"In
for
associated
was
believe
we
the
Wiggins organized
of
Company
Trust
binding
for
of
the
starting
slow
the
nations
again on
up
prostrate
humanity
march
toward
a
better
15.
Hemingway, who is Presi¬
of
term
as
Executive
the
ABA
from
South
Oct.*
It is understood that Mr. Har-;
...
,
Pforzheimer, Jr.,7 who
tinue
a
as
will,
con¬
partner ; of Carl H.
Co., New York
Pforzheimer. &
the member City, will.be considered
Council of the
Carolina.
In
on
Oct: 15.7
Transfer of the Exchange mern-^i
bership of Moorhead C. Kennedy,.
Jr., formerly partner in Mont-.;
1
Bank
and
Trust
Company, St. 1937 Mr. Wiggins was elected to
on
the
Executive
Louis, is a native of Arkansas. He membership
gomery, Scott & Co., ■ which will;
began his banking career as bank Council of the State Bank Divi-:
continue as a member firm,
to;
collector for the old German Na¬ sion of the ABA and in 1940 was,
tional Bank in Little Rock.
In made Vice-President of the Divi¬ Sherburne Prescott will be con-'
He has been a member of sidered on
1904
hebecame
an
Assistant sion.
Oct.; 15. It is under-
.
Telegraph Company
served
<
on
K.-
to bership of Chester Dale to Carl H. 7
Cashier of the Exchange Nationalise American Bankers Association
Bank
in
Little Rock and later Committee on Federal Legisla
.
Samuel
to
will be considered
Harris
.
three-year
Mr.
1932
in
association
by, that
represent it in the ABA as State
Vice-President from South Caro¬
lina.
He was then elected for a
President, Western Union
•
Maguire 4' Co,, Inc.,
New York Cirv '
of the Board
ALBERT N. WILLIAMS
■«
ft
"h
HENRY C." VON ELM
'
JOHN P. MAGI'IRE
-
JOHN M. FRANKLIN
•
Curtiss-Wright
Corporation ■
SAMUEL McKOBERXS
Nipissing Mines Co,
IIOI? ACE C. FLANICAN
i. f.
President,
Corporation
.
;
si
'
GUY W. VAtKJHAN
The Jones-
,
aims and
dent of the Mercantile-Commerce
Chairman, Trust Committee
^
CHARLES t.JONES
;
ELLIS P. EAltLE
war
our
life."
ERNEST STAUFFEN
Simpson Thacher &
>• •
Manufacturing Corp,
,
■4
'
President, Ifame
OSWALD L. JOHNSTON
7/7
group
world that
a
wounds
its
Insurance Co.
Company
CHARLES A. DANA
of
program
and
HAROLD V. SMITH
v./
Ceorge A.
■
RICHARD
Chairman, General Bronze
■
President,
'
0 4/7
Lehigh Coal Co.
HAROLD C.
v
■Steamship Lines
d'ff
;
President, Scranton &
.'.7'V 7\
Inc.
and West Indies
'
-
„
GEORGE J. PATTERSON
t*.
President
;
:
\
President, Cluetl,
HARVEY D. GIBSON
.
:.l
h
"
f E, Gerli & Co.,
EDGAR S. BLOOM
"
['resident, Atlantic, Git!J
■
President,
:
,
Hutchinson Co,
1
.
,
I'AOLINO GERLl
EDWIN J. BE1 NECKE
c. R. PALMER
'fljs
(
consolidated
.
7
CHARLES FHOEB
EDWIN M. ALT.KM
jr/■;; ['resident, Mathiesott
in
active supporter
an
which
during
South
ris;will act as anrindividual floor,
should come out of this terrible Carolina,
becoming
Vice-Presi¬
broker.,..
.7.
conflict. - The return of our coun-. dent and Managing Director.
In
he became President.
He I, Transfer of the Exchange mem-" 7
try to the ways of peace and the 1941
rehabilitation
of
the
torn
and was made President of the Bank bership of the late Edwin E. Bernbleeding
countries of
the
old of Hartsville in 1932 after having heimer to' Howard M. Ernst,: who
world involve questions of finance served
as
Vice-President from, will continue as a partner in Ernst'
He was President of the & Co., New York, will be consid¬
which are in our special field.; As 1921.
specialists in that field we offer South Carolina Bankers Associa¬ ered by the. Exchange on Oct. ,15.
our services in the building of a
tion in 1931-1932 and was elected j! Transfer of the Exchange mem--
kind
-
DIRECTORS
''
of
cussion
242,777.98'
eight "years,
Research Institute in St. Louis, am
and
opinion
We shall use our
our
"7
•
•
facilities,
-•
that when
and division
forums for the dis¬
214.988.50'
$1,207,153,257 68
'.)<
sound,
to
lasting peace.
:
'Copenhagen
for' the
time the Merchants National Bank
and
in
of the work of the /'Gov'eHniiental
We strongly en¬
victory has been won a just
tribution
824,959.50
.
.
(Payable October 15, 1942) . . .
Outstanding Acceptances . . . ,
Liability as Endorser on Acceptances
and Foreign Bills V. j
.
•
/
-
•
V7 (Payable October 1, 1942)
Pre hired Stock Dividend
■;«
'
4^10,662.47
,
Deposits
•
*'•
85,511,029.15
,
Reserves
Common Slock,Dividend
/„
.
43.913,049.15
Profits
■
T
next
Bankers
has also been
than any others
essential
vain it is
the
-
of
made
retained the
He
Vice-President
title
25
years.
During that period he or-j New Y ork Stock
peace shall be made. Such a peace
Exchange!
the 1 business
end7 of
depends for its realization on an ganized
Coker's Pedigreed Seed Company
understanding public opinion. As
17 WeeklyFirm Changes,
and in 1920 became General Man¬
Citizens and bankers we have a
IV The New York- Stock Exchange1
ager of J. L. Coker & Company
responsibility in this matter to the
has
? announced
the r following * i
At present he
and that we may make our con¬ pepartihent Store.
weekly firm changes: 7
7
• ] fy
is Vice-President and
,
$ 8,599,540.00
,,
at¬
of the Inter¬
•
$ 1^207,153,257.68 I
Goinmon Stock ..y\ 32,998,440.00 -,i* * y
Vice-President.
Cashier
was
Secretaries Section in' 1924;
Mr. Wiggins, the new First Vice-jof inflation, and we urge
President of the Clearing' House
upon our Government that it fol¬ President of the ABA, is a native
Section: in 1928-1929,' and Presi-:
low
through with- rigid I control' of Durham, N.' Cl ,j He received
dent of the National B^hk Divi¬
over
prices and all of the ele¬ his A/B. 'dbgree from the Univer¬
ments that enter into them.
sity of North Carolina in 1913: sion in 1936-1937," In 1941 he was
Upon graduation he went " to elected Treasurer of the Associa¬
;
-Tf the blood spilled in this ter¬
tion, and re-elected to that office
rible war is not to have been shed Hartsville, S. C., as an assistant
2,497.688.10 A,
LIABILITIES
and
Commerce,
spiral
2.976,827.52
•
7
of
International
December, 1918,
and
far been taken to curb the vicious
-12,687,734.43
.
of
the
elected Assistant
was
and in
national Chamber in Paris in 1920
dorse the measures that have thus
305,236,221.74
15,277,218.54.
Chamber
States
and
tended the meetings
ff} 'if' /■//•':
more
inflation.
rency
andf-pi-:V777:
.
.
and will sup¬
know the evils of credit and cur¬
38,643,686.69
Bankers'Acceptances v. . ......
Mortgages .
. ki.; .,.7v-> .• v
Banking Houses . .
.
... . . .
Olher Real Estate Equities
. v
» ^ .
Customers' Liability for Acceptances
Accrued Interest and Other Resources
;
"Bankers
j
2,237.950.00
Stock of Federal Reserve Bank
Chamber
money
bank. investment,
40,243,936.18
v
can
United
Commerce
needed for 4 pur¬
more and still more Gov¬
ernment obligations suitable " for
449,103,424.24
.
.
The banks
tem.
ply the
chasing
334,502,993.48
J,
.
10 years
setting up the St. Louis
of the
branch
;
Mr.
Chairman
Committee
War
Arkansas.
of
state
;
,
World
Hemingway served as
6f the Liberty Loan
for
of
in '1942 he
and
became President.
"During
was
Vice-President
man
close of business
September 30, 1942
,
mond in 1902 and
Loans Committee of the American
planes, ships, and all of the other
material necessary to give us the
best Army and Navy in the world.
V7;7TRUST COMPANY;
■oi
as at
in
active
,
elected President.
was
rectly, the Secretary nf .the Treas¬
ury
will
still- need
additional
enormous sums to pay for tanks,
MANUFACTURERS
of Condition
that
nation-wide
organization in this campaign. We
recognize that, after raising all the
money he can from the public di¬
Condensed Statement
was born in Richmond,* Va".
after Nov. 16, 1885.
r
" " ;•
\
7 / 7 He entered the
employ of the
"Mr. Hemingway has long been Merchants National Bank of Rich-'
of the bank and three years
greater efforts to sell these
even
can
jmmmsm
to
war
interest in this vital activity
1065. ;77;?7
dent
It would appear
of the
will
the
that
issue on page
references
given in that
thereto having been
expressed
Vice-Presidents.
pre¬
were
the
issue,
24
Sept.
in repeated con¬
vention action that a succession
to
office be
continued through
tion
which
pared for the Association's "Con-^
vent-ion in Print" appeared in our
the
of
intention
Some of
minimum.
a
activities
the
'possible of the last expressed
ly hs
to
ABA,
he
the
to hold a
inability
Mr. Augustine, Treasurer of the
,
He served two terms as
possible the nation's work.
for winning the war. To President of the St; Louis Clearing
House
we shall wholeheartedly
Association, has been a
and steadfastly support the Com¬ member of the Board of Directors
mander-in-Chief
of
our! Army of the Association of Reserve City
eleq|ion of officers in the conven¬ Transportation to limit war-time
the
was
that end
tion.
"In
he
program
the rAssocia¬ heavy responsibilities that rest
f
conformity with upon him.
"We shall continue to support
the efforts of the Office of Defense
sole power for the
later
year
Executive;; Vice-President
in every way
decided upon by
was
tion
elected
during the next
worked in all of the de-'
partments of the bank.
In 1912
him
.
tution. r.One
v
objective is to help
first
."Our
ABA, and the substitution
therefor of a "Convention in Print"
of the
Heming¬
Mr.
support of the
pledged full
way
customary annual convention
the
Council
Executive
and
'"The constitution of the Associaiton places
resign, making way
of office, by the
vice-presidents
fill this
mittee' recommended the
7
to
for the assumption
that the tradition of one
year' terms might be preserved.
Acting affirmatively on their sug¬
ment:1 7
the
opinion that the gracious sugges¬
tion of the President of the Asso¬
ciation and the Presidents of the
(Continued from first page;
tib'n's Administrative Committee
in ordpr
The
committee therefore expresses
President Of ABA
i.
by
out
carried
best
be
;
maintaining this succession.
Thursday, October 8, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL $,
1260
successively
Secretary
as
tioh since
1936, serving
stooft that Mr. Prescott will act
an
Chair-/
as
individual floor broker.
as
•.'
'
and
Principal Office: 55 Broad Street, New York City
68
BANKING
OFFICES
IN
GREATER NEW YORK
Member Federal Reserve
Member New York Clearing
System
'
1919
Mr.
Both Common and
The
value of $20 each.
the
share and accrued dividends.
Preferred shares hare
a par
Preferred is convertible intu and has a preference aver
Common
to
the extent of $50 per
14-.LUI.lLi.-i.$a:t n-i u na v
Hemingway went
dent
of" the
National
Commerce in that city.
Ilonse Association
Deposit Insurance.Corporation
Mercantile
to St. Louis to become Vice-Presi¬
organized
»
bank's
-Federal
.
BarrfC
of
became
There he
head
of
investment
affiliate,
and
that
the
Member Federal
the
Trust Company of Little Rock. A
sketch of his career further says:
"In
European Representative Office: 1, Cornhill, London, E. C. 3
of
President
Commerce
Trust
man
since 1938.
He
was a
mem-]
Charles
Stern,. general partner'
Administrative; in!Stern
Brothers, New York City; ;
1938-1940 and has.
became a limited partner as of!
been a member of the Executive
Oct. 1.
\
Council of the ABA since 1935.
;•
v
ber
of
the
Committee
ABA
in
'v'
In
1941
Second
Mr. Wiggins was
Vice-President
elected
of
the
John
from
M.
Westcott
.
withdrew
partnership in Carmichael &
1942 he pro¬
Carson, New York City
gressed to the First Vice-Presi¬
7!7
dency, He has been a member of Sept.. 30.
Association, and in
as
of;
Commit-!
Moorhead C/ Kennedy, Jr, and'
it was or¬ Robert 'L.
Montgomery 1 retired
with the Mercantile Trust Com¬ ganized and was Chairman of the;
from partnership in
Montgomery,
pany in 1929 he became a ViceDeposit
Liquidation
Committee
Sco^t
Co, qs o^jSqpt. 3Q,?
President, of, the .nanlbmingJnslir^ior ^outhXaioJina~
'
Company.
Bank
of
When
Commerce
the
was
National
the
Charlotte
merged
tee
of
the
Advisory
RFC since
.
^Volume *i56
THE COMMERCIAL &
Number'4114
•
Regimented Economy Seen
Present In Desire To Regain Economic Freedom
the
Both
'achieve
the
desire
freedom
and
from
post-war world
the
ability
necessary
-
reserves
tion
the part of our people to
economic restrictions in
on
Association
in
that
a
.
wartime
will
negotiable
is
it
expected
be transferable
after, the
hostilities."
/
•
According
New York
City.Outlining the three methods
of economic regimentation
now#,
trrrr.!.
'.being imposed on the American I money may be made freer in
people, he said these methods are any relaxation of restraints, that
necessary in
order to close the whenever money again goes to
"inflationary gap" between the seek goods and services, the econ¬
diminishing supply of goods and omy will be able to supply them
the country's increased purchasing in a volume, at a speed and with
power.
He cautioned, however, a cheapness without parallel in
against "gloomy assumptions" that all mankind's history. The infla¬
these controls would necessarily tionary
force
of
emancipated
for considera¬
up
Senate
000,000,000 in State and local im¬
He estimated the national
income
bill
was
Oct.
cessation
ties.
columns
of
From Strike
,
r
(Continued from
turned down
union
ing
a
and
securi¬
the; opening of Senate
debate, Secretary of the Treasury
Morgenthau announced on Oct. 5
"The
were
Dispute
1251)
page
demand
by
provid¬
closed shop and salary in¬
creases
Prior to
of
for
a
a
contract
post-war
declaring that the seeds
our
money
workers'
.
.
claim
.
.
.
,
that
a
15%
Mr.
Woodward
•
mentation
•
described
of economic
methods
restoration of
15% wage cut of
a
the previous year."
Ray Stephenson Dead/
Ray W. Stephenson, a partner in
Merrill Lynch, Pierce, Fenner &
Beape, New York City, died Oct.
2, of coronary occlusion. He had
been
a
Life
in
now
force
the
as
compulsion of taxes and forced
loans; taxation through inflation,
thereby - reducing the purchasing
the
of
dollar;
and
tax
Senate Opens Debate
On Hew Tax
taxes will
be
refunded
ing, allocation, price fixing, job war.-'
'• ; I'freezing, subsidies^ and direct con¬
"A last minute change in
scription of labor and goods.
tax bill as reported out by
..
"Just
these three methods of
as
regimentation to
tions
director
insurance
vides
some
Committee
of them, so the three,
of any
acting
the whole economy, generate
mighty force which at some
later day will inevitably work for
the
modification,
perhaps
the
elimination, of all three. The de¬
velopment of this force should not
be overlooked in making projec¬
ate
bill
would
credit 40%
be
in
tions into the
no
could
case
debt payment
post-war
the
credit
exceed 40%
reserve.
;
...
At
the
leader
second meeting
said
he
the union
informed
was
by
Guardian
Corp., the West Indies Sugar Co.
and the Harborside Warehouse Co.
He
trustee of the Lenox Hill
was a
Hospital.
collec¬
\
$7,000,000,000 but Con¬
experts
say
the
yield
$8,000,000,000.
Morgenthau
said
the
new
tax
committees
of
both
of Congress "as soon
AND TRUST
COMPANY OF NEW YORK
branches
they
as
are
ready to receive them."
to
.Senator George told the Senate
Oct. 6 that the nation's total
on
for
tax
of the
burden
next
year
would
be
$36,000,000,000, including $26,000,000,000 in Federal levies and $10,-
\
future," Mr. Wood¬
Main
"Obviously, the very restraints
themselves
generate resentment
desire
head of the firm.
the
about
said.
ward
and
Mr.
but
reserve,
revenue
to
Under
proposals would be outlined to the
of its debt retirement
against its post-war
a
at
gressional
would be
also
permitted
upon
amount
measure
the
the
a
ruinous extremes
of
ance
one
Finance
.
ecenomy provides
that corporations may
system of use their excess profits credit for
balances which pro¬ limited
payment of debts.
hope for the avoid¬
"A corporation under the Sen¬
and
checks
Senate
$30,000,000,000.
confer with the
of
Co., the McCrory
$17,000,000,000. ; The- Treasury estimates
the, yield
of the pending
tax
war
a
of themselves
entail
,
are
present tax. laws
the
after
$24,000,000,000 annually
the-Treasury's minimum
that
needs
amount of
monetary controls such as'ration¬
will
to
nues
(Continued from first page)
■
corporate'excess profits
non¬
power
bill
and
pending Flaherty said he was asked to re¬
bring Federal reve¬ turn at 1 p.m. to enable them to
that he believes the
ence
the
regi¬
wage
already been granted,' Mr A
Flaherty said that it was only
,
three
the..company's
increase
on
had
demands
presented to the firm earlier
may,
■
strike.
15%.
office
in the day by Edward K. Flaherty,
therefore, meet the that the Treasury is working on a union business manager, who con¬
at
11
resistance of an almost Utopian new tax bill to raise an additional ferred
a.m.
with
Harold
economy,
of the cure for regimentation have cornucopia," Mr. Woodward con¬ $6,000,000,000
in
revenue.
Mr. Bache and his partners, Morton
cluded.
' J Morgenthau told his press confer-' Stern and Clifford W. Michel. Mr.
already been planted.
be carried over into
decision, thereby setting
previously arranged plans for
the
"Commenting
the
bonds
street
ad¬
,.
Flaherty then
left
the
and from
an >' outside
telephone he informed one
the employees in the office of
the 'tax- building
these
off
ners,
•
,
grant the employees' demands.
the firm's
of local
issues
in
1, page 1173.
history made* it plain that
taxing income from future
was
reference; to
made
of
Oct. 3
to
the .New
York
"Times" the Senate Finance Com¬
mittee in reporting the largest tax
it
not
"Mr.
mediators Withdraw
Washington
Harold Bache that the firm Would
$110,000,000,000.
Previous
,
vices
bill in
at
and
•
to
1261
posts.
move
reserves
were
in
comes
the
will be made to proS
vide that bonds issued to
corporations
evidencing their post-war
forecast by, Donald Woodward, Research
•Assistant to the President of The Mutual Life Insurance Company
of New York; - He spoke before a meeting of the American Statis¬
tical
"When the subject of post-war
„
Post-War Cure For
FINANCIAL CHRONICLE
for
their
removal
THE
at
Office
57 Broad St.
CHASE
the earliest possible moment when
war. requirements; diminish to. a
degree which will permit that ac¬
tion.
This desire for greater free¬
dom and satisfaction by the whole
American public may be amply
sufficient to overwhelm any self¬
ish
a
OF
addition-to
In
Statement
n
■'»<'!RESOURCES
(
' ,<T
Cash
Due
and
•'
....
i
Banks
i
,
I
«
:
should help
;
.
.
.
without
a
ruinous inflation
following in the
relaxation,"
he
tably
such
Stock
of
Federal Reserve Bank
(170,401,433.52
Loans, Discounts and Bankers' Acceptances
inevi-j
of,
Banking Houses
train
Other
declared^
4
Mortgages
•
.
•
.
•
.
.
Other Assets
V *'.*
.
36,961,100.19'
,
6,321,222.33
V.
*
.
;"
,
\"t*
10,708,095.87
are
being made in
ff
•
•
Other Real Estate Owned
for
Reserve
for
Deposits
44,108,907.24
.■
Contingencies
.
Taxes, Interest,
■■»
Less Amount
every
Liability
•
*
as
in
...
.
«
.
Portfolio
Endorser
Foreign Bills
found to improve efficiency.j
All may not be utilizable now,i
but methods of producing things,
of transporting and handling and
developing
in
manner.
j
.
.
etc.
#
"All
'
.
68,554,58
,
$226,029,912.39
;
.
.
.
$7,000,000.00
.....
i
.
7,000,000.00
:;
g
on
<•
-
Payable October 1, 1942
Reserved for Interest,Taxes,
3,787,860.82
.
Less; Own in Portfolio
3,628,465,592.68
$6,658,649.09
Acceptances
•
2,895,391.18
•
••••••••
»
•
•
Deposits
and
.
•
•
.
150,000.00
•
«
,
$1,419,387.65
629,718.75
,
789,668.90
7".
n
(i
p
ii
p
..
-■
.
Total
410,346.47
1,811,592.35
Contingencies
.
Other Liabilities
*
3,763,257.91
.
.
18,466,522.84
342,347.48
Acceptances Outstanding
.
•
•
n
H
n
n
n
n
,
.
131,769.28
.204,338,011.54
»•
«••••«.
.
$226,029,912.39
7,756,785.44
Securities with
$3,899,955,951.69
statement are
and
pledged to secure public and trust deposits
required or permitted by law.
and for other purposes as
a
book value
pledged
for other
United States Government and other securities carried at
are
4,466,522.84
....
11,991,067.86
Member Federal
of $14,171,404.25 in the above
to secure
purposes
public and trust deposits
or permitted by law<
required
member: n. y. clearing house association
•
federal reserve system
Deposit Insurance Corporation
£
|
this ffidans> that1'whenever
439,424,13
federal deposit insurance corporation
independence of
unprecedented,
■
.
.
........
Unearned Discount
,
.
.
>
.
.
.
Other Liabilities
$428,916,892.50
develop-1
an
'
420,000.00
:
ing new sources of raw material,
materials
.
LIABILITIES
processing them are being devel-!
is
•
•
Total
Dividend
ways
time this nation is
90,143.66
.
Accrued Interest Receivable
Other Assets
742,925.84
2,166,393.85
Surplus.
100,270,000.00
Acceptances Outstanding
direction in technology, and many
same
•
Federal Reserve Bank Stock
$100,270,000.00
»
$ 244,648,907.24
Reserve
ad¬
oped
which
are
cheaper,
far
cheaper than ever before. At the
~T" T
Liability under Acceptances
Banking Houses
•,
'
vances
.
Customers'
Undivided Profits
Capital Stock
.
. >>:
/Undivided Profits
pointed out.
greater im¬
incredible
....
'*.12,492,223.56
.
y Surplus.
ity as measured by plant invest¬
almost
,
,
2,485,821.00
plant
capacity existing in 1940; in other
words, the country will have in¬
creased its manufacturing capac¬
portance,
.
j! 74,654,706.82
79,329,055.96
7,812,896.55
LIABILITIES
completed or in process in
connection with the war is equal
even
,
Capital Funds:
ity
of
,
$57,410,611.68
..
Capital.
"The volume of new plant capac¬
"Perhaps
,
Obligations
«
State, Municipal and Corporate Bonds •
$3,899,955,951.69
enormously- enlarged, by
necessity,"Mr. Woodward said.
ment by one-half," he
.
808,539,599.99
Customers' Acceptance Liability
being
total
i
.
•
»
,
.
*
Real Estate
technological advances.
"During this period, the produc¬
tive capacity of the country is
the
6,016,200.00
V
meet with the "resistance
of an almost Utopian cornucopia" }
as a result of plant expansion and
of
106,509,821.68
Other Securities
war may
50%
1,796,736,207.54
[j-.
*4
—
•
fee
stating that the inflationary force;
of "emancipated money" after the
over
,.
Municipal Securities
and
...
Loans and Discounts
$ 945,679,425.33
^
restraints1
of
*
direct and
.
1
State
to make pos¬
removal
RESOURCES
U. S. Government
-
r.
Obligations,
fully guaranteed
very
the
sible
to
13
4
from
U. S. Government
1
'•
•
which
business, September 30, 1942
Casli and Due from Banks
cause—war—which
requires all three methods of regi¬
mentation, is generating ; forces
.
of Condition, September 30, 1942
,:\
finds its source in war
which requires regimentation, he
:
of
desire, for
the
cally,
"The
the close
at
economic freedom,'the ability to
achieve it also exists, Mr.- Wood-j
ward said. This ability, paradoxi¬
said.
CONDITION
OF THE CITY OF NEW YORK
vested interest in their mainte¬
nance," he declared.-
STATEMENT
CONDENSED
which has
any group
group,
'NATIONAL BANK-
l
29
Offices Located Throughout Greater New York
(
Flotations
Calendar of New Security
V
*
Amount
$.900,000
Co.™-510.000
Name
OFFERINGS
/
f
co.
steel
lukens
,E.
,
Eastman
Vallance
Form
first
necessary,
have
ago,
Power
whose
been
not
unknown
are
Maine
Central
to
deter¬
—^
filed
Co.
ties Exchange Act of 1934,
ns.
regis¬
a
jmd general mortgage bonds, Series
M, maturing July 1, 1972; $5,000,000 tenyear serial notes, maturing serially on July
and 261,910 shares of
stock, par value $10 per share.
Green
utility and
water
and
Maine
of
State
,
days after filing except in the case of the securities of certain foreign public authorities which normally
become effective in seven days.
writers
is twenty
Offerings will rarely be made before
ing.
*
,
.
.
first
the day follow¬
■V
■
&
ration
of
cn
stock,
capital
its
$1
par
$250,000 of its debenture 5s and
to the underwriter,
deliver
the
the order of
on
.
1
Wholesale Druggists of
United
Inc.,
filed
has
with
the
11,
*'
Business—It
at
stock.
1942
series due
:
ital
tion
A-2.
of
purpose^ of t enabling
United Drug Co. to have
benefit
of
United
Drug Co.
in
area economically»served
Shares are to be sold at
the
Louis.
for
share
a
total
of
$200,000 to
the
NUT
STOP
reorganiza¬
•/I
-
ferred
of
per
stock
conversion
(par
of
convertible pre¬
$1),
preferred
'
—
is
It
necessary
•
be
"
a
form
at
terest
of
note-for
a
the
such
from
of
rate
year
benefits
distributed
be
named
to
hold stock proportionate to his
determinable1, the
will be devoted in the amounts and
Proceeds—Sofunds
to
the
purposes
of
chase
far
indicated, namely, to pur¬
for sale to retail
druggists '$185,000,
and to working capital
A-l.
Southwestern
registration
Southern
Gas
statement
Union
surviving
shares
000
cents
per
of
capital
share
N.
stock, par value
Gas
Co.
the
filed
SEC
a
for
(the latter to be
in a proposed
corporation
10
Place, Jersey City,
J,
Underwriting
plan) covering 240,584 shares of
Southern Union Gas Co, common stock,
merger
a
—
trust
Hugh
W.
Long
&
Co.,
underwriter
Co. has
with
has filed
Inc., Jersey City, is named as the principal
SOUTHERN UNION GAS CO.
Texas
Inc.,
Offering—Date of proposed public offer¬
ing is given
as
Nov. 1,
1942
1942,
an,
retire
or
on
(f0-3-42);i
/
.
before-Oet.'1,
unspecified number of shares of
preferred stock of the company and
for
the
purchase
and
construction
of
facilities for the carrying out of the'com¬
pany's business.
' , V.i
Registration Statement No.
V,
(6-29-42)
:.f 5
2-5024. Form
V
Central Maine Power Co. on Aug. 5,
filed
a
request with
1942,
the SEC to withdraw
decision to
sell the proposed issue of $5,000,000
10year serial notes at private sale.
On July
16,
1942, company filed an
amendment
with the SEC to withdraw the proposed
notes
from
registration and such with
drawal was approved Aug. 19, 1942 ™
Amendment filed Sept. 29, 1942, to defer
trust indenture data in view of
effective date
•
.
.
.
v ' *
filed a registration
statement' with the SEC for $350,000' 6%
debentures, due June 30, 1957..
Address—120 Cherry Street, Buffalo, New
Fllicott
Drug
Co.
—
cooperative
company,
selling to its
all of whom are retail
is
Company
drug
only,
a
of the debentures
will be
presently
issued.
Approximately
$120,000 of this amount will be Issued to
replace the outstanding 6% preferred stock
which is being eliminated.
Approximately
$48,000 additional will be Issued tt» retire
buying privilege deposits with the company
The balance,
approximately $78,500* after
expenses, will become additional working
—
;
•
new
debentures
will
never
(7-7-42»
filed July
members of the company
of exchanging
the 6%
23, 1942 giving to
only the privilege
.cumulative prpferred
been
the
the proposed rule referred to
evasion of
a
believe
sion
slightest
'
Mr. Purcell, I want vigorously
obvious
to protest the body and intent of
I conceive it to be a positive
the Commis¬
any such rule, a recognition Of
herein.
directive of Congress, and I feel that should
conditions
intent
warranted
Cangi^^-Tn-4h^1aw7^" and-supplemented esU-
of
tensively in the hearings, should lead the Commission to come back
to the Committee for such authority, if need existed.
Unless the Commission feels that it has facts with which to justify
legislative authority to change this clear intent of Congress, then the
proposal, X-15C1-10, should promptly be laid aside. If the Commis¬
sion does feel that evidence not heretofore considered by Congress
to
justify such
an
alteration in the viewpoint established by
Commission will find the
open-minded to a con¬
the Congress on the. subject, I am sure the
Interstate and Foreign Commerce Committee
}
sideration of the facts.
>
I will appreciate hearing from you on this subject because I must
.
tell
frankly that, before I would
you
what I believe
Committee for
to be
a
this method of destroying
see
the clear; intent of Congress, I would ask the
legislative directive to regulate such action.
With kindest personal regards, I am
Sincerely
:
yours,
LYLE II. BOREN.
Inquiry By House Committee Into SEC Proposal
To Change Proxy Rules Demanded By Kennedy
protest was made to the House by Representative Martin
(Dem.) of New York against the new rules proposed
by the Securities and Exchange Commission governing stockholders'
proxies for corporate meetings on the ground that the changes would
place an increased burden on corporations in preparing financial re¬
ports.
Reporting Mr. Kennedy's objections thereto under date of
Sept. 24,
Associated Press ac-^r—
—- ■ ■■.■ • '
counts from
Washington quoted of the Commission's power." Mr.
him as saying:
Kennedy's contentions were con¬
Recent
J.
Kennedy
"I
informed that, the corpo¬
am
tained
in
a
letter
Clarence
to
F.
Lea, Chairman of the House Inter¬
state and Foreign Commerce Com¬
quirements. are aimed, state that it
will be physically impossible ;to mittee, which has under consid¬
rations
obtain
at
and
which
these
prepare
new
re¬
the
re¬
by
eration
amendments
to
the
SEC
acts.
Regarding
Representative
cial data which would be made Kennedy's presentments in his let¬
part of the statements to accom¬ ter, the "Journal American" had
the following to say: ;
pany thq notices of stockholders'
quired time the multifarious finan¬
"He
meetings and the proxies.
asked
that
the
Committee
thoroughly investigate the subject
and
call
Ganson
Purcell,
SEC
dition be made to the long list of
Chairman, to explain contradic¬
reports and statements now re¬ tions between his
testimony before
quired
by
the Government It the Committee and his recent
pub¬
should have a distinct, direct and
lic remarks on the need for
"It
seems
to me that if any ad¬
revis¬
helpful bearing on our war effort
ing
and should strengthen our hands
for victory.
If it does not do this,
common
nation's safety
sense
and
even
our
demand that it be
rules.
Also, why, if
conditions are as bad as Mr.
proxy
proxy
Purcell
claims, he did not disclose
this when he appeared before the
Committee.
deferred until the war ends."
"In
'In
taking further exception to
proposals for the revi¬
sion of its rules covering proxies,
the SEC's
Representative Kennedy, accord¬
to the New York "Journal
ing
American" of Oct. 1 contended that
the amendments "exceed
be
priced at 100 and accrued interest
Registration Statement No. 2-5026. Form
Amendment
|
$250,000
capital
Offering—The
not
part of the Congress to maintain
separate units.
into
down
then
'
Proceeds
A-2.
Proceeds—For investment.
Registration Statement No. 2-5048. Form
A-l.
series M
druggists;
registration statement with SEC for 1,000.-
Business—Investment
saturday, oct. 17
the
Bond Fund,
.
7%
members
Manhattan
.
net proceeds of the
otherwise
or
wholesale
tuesday, oct. 20
.MANH^TT^N BOND FUND, INC.
Address—15 Exchange
(9-24-42)
Treating Co. $110,000.
'
$15,000
Registration Statement No. 2-5045. Form
&
Business
'
as
merchandise
of
Yurk
(9-29-42)
purchases in order to receive his share of
earnings
Nepsco Appliance Finance Cdrp.
ellicott drug co.
cumulative preferred
A-2.
ings as his merchandise purchases increase
may
are
Registration Statement No. 2-5047. Form
^=^^--Eolder will be allowed to increase his holdhe
Co,
&
principal underwriters
Stock (par $100),
capital expenditures and working capital
6%
.
so
as
Purpose—May be used for redemption of
stockholders
as
dividends, monthly par¬
ticipations
of
earnings,' and' year-end
check? of remaining earnings. Each stock'
Weld
Underwriting—White,
with in-
The
one
3%,
will
sales
V, 1936, due Aug. 1, 1956, of Nepsco
and 10 shares of common oi
$9,100 and
acquire all of the 650 outstanding shares
the no par capital stock of New England
of Aug,
Services. Inc.,
A-2.
Business
Manufacturer of self-locking
of the products of United Drug
not contemplated that it will be
tnute, etc. >■,
t
.
.
to borrow money.
However, in
Offering—After reclassification
of se¬
.the-event a temporary loan is necessary
curities, 50,000 shares of 6%
cumulative
pending receipt of funds to be raised from
convertible preferred stock will be offered
the sale of this issue, a loan not in excess
first to
holders
of outstanding
common
of $50,000 may be made to the corporation
stock, through warrants at $50 per share,
by United Drug Co.
At no time will there
unsubscribed portion through underwriters
be over
$200,000 raised from all sources.
at $50 per share
In the event such a loan is made it will
Co.
acquire 300 shares of the,common .stock
$6,000 face amount of 5% debentures
and
the serial notes and common .stock
will be used to redeem at $120 per share
Address—Union, New Jersey
dis-
,
to
securities prob¬
proposed rules as a unit
supposition that the
void that intent of Congress by breaking that class
has
there
Commission could
exists
Balance of
and 178,572 shares
to be reserved
stock
(par $50)
stock
common
for
and
1966
of
Cumberland
and to pay bank loans
which were incurred
for
the
purchase
and
construction
of
facilities $2,650,000.'
/ ,
Net proceeds of the serial notes and the
common
stock will be used to pay par
and premium in the redemption on a date
to be fixed in 1942 of an unspecifed num¬
ber of shares of 6%
preferred stock and
an
unspecified number of shares of 5 '/a %
preferred stock of ^Cumberland County at
130% and 110%, respectively, all of which
shares are to be called for redemption by
Cumberland 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 tru£t for the holders of such shares.
The amount to be utilized in such redemp¬
tion will be supplied by amendment.
;
Additional net proceeds from, the sale of
serial notes and common stock will be used
due
$9,784,348
made by the company
Pole
CORP.
cumulative
6%
of
class
-
series,
in which I have served as a
years
the integrity of exemptions affected by your
bonds,
tration
tributors
,
'
securities.
of the sub-committee particularly studying
definite expression of intent on the
the
to
(9-28-42)
shares
from St.
$50
and for
company
Elastic Stop Nut Corp. has filed a regis¬
statement with the SEC for 50,000
Underwriting—No underwriters named.*
Offering—This offering of stock is not
being made to all distributors of United
Drug Co. products but is limited to those
,
tb»
expenses
ELASTIC
-
■
casn
loan will
Co.
sunday, oct. 18
at .wholesale of
than, .that
sold
by
other
merchandise
ior
from
proceeds
the retirement
the
purchases
the
for
stock
common
the
Production
Registration Statement No. 2-5046. Form
The
the
distributors
,
for
to ope.rate a ware¬
corporation has
proposes
Louis.
St.
formed
been
of
of
Union
o( publicly held
bonds and long-term debt of the constit¬
uent companies, to apply to working cap¬
*
r
sale
$250,000
be used for
was
.Street,a Wil-
—-
the
and
Southern
For the six
proceeds Irom the financing in ac¬
with the merger plan recently
the commission will be used as
County
securi¬
the difference between public
lems, I have found no time in which any matter came up that was
with
3V2%
.'■>
recognition of
Net proceeds of the series M bonds will
be used to pay principal and premium in
the redemption at 105%
on Oct. 1, 1942,
of $1,494,000 face amount of first mort¬
gage, 4% series, due 1960, of Cumberland
Power,
$1,538,060; to pay principal and
premium in the redemption at 105!/2% on
a date in 1942 to be announced of $9,275,000
face
amount
first " mortgage bonds,
1, 1962
from
St. Louis,
statement
Company
"
/ ;;
Tenth
West
Address—100
hiington, Del.
house
registration
a
common
organized,Aug.
:
a,
Oct.
covering 4,000 shares of no
SEC
value
par
.
3%%
sinking fund bonds,
gage
In this
judgment, the first fundamental in an approach to
,
companies
attention.
my
defined by Congress.
as
and private
an
follows:
Registration statement reveals that E.
underwriter will purchase the H. Rollins & Sons, Inc., has advised; the
partnership and the debentures from the company that it has agreed to sell the
partnership and the corporation and offer bonds for the survivor corporation at. a
them to the public at prices ranging from
price equal to not less than 103%% plus
103.28%
for the March 1, 1944, maturity accrued interest/ in such manner mac lucre
to
100
for maturities
1948 to 1952, inwill not be involved any public offering of
the bonds requiring their registration under
elusive, plus accrued interest
Proceeds—The net amount to be re¬ the Securities Act of 1933.• As compensa¬
ceived by the corporation will be-used" as
tion for its services in finding a purchaser,
working capital.
Net amount received by the banking firm is to be paid a commis¬
partnership .will be partnership, funds dis¬ sion of one-half of one per cent of the
tributable among the partners or usable for
aggregate principal amount of the bonds
such purposes as the partners may decide
The banking-firm
also has agreed to
Registration Statement No. ^-5944.,Forjn .purchase any unsubscribed shares of com¬
A-l. (9-22-421
mon
stock offered to credit shareholders
\;'V
'
'
of the constituent companies
•
tuesday, oct. 13
Proceeds—The proceeds to be received by
the survivor company from tite "fe of i^
UNITED WHOLESALE DRUGGISTS OF
bonds in the face amount of $3,650,000 and
ST. LOUIS, INC.
.
_
Net
filed
proposed rule X-15C1-10 comes to
In my
cordance
per
The
ship.
,
of
value
par
to
completely
of the Commission.
ties regulations is the
ceased
the
plan,
-
separate
for
constituent
merger
$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¬
of
exchange
the
curities
be¬
merger
that prior
says
will include also the business, fran¬
and properties of Cumberland, the
existence
of
which
will
have
pany
chises
outstanding securities of
involved in the
details of which have
previously been filed with the Commission
and made
public, the company will issue
and sell for cash $3,650,000 of first mort¬
in
is also to
partnership, $150,000 of the debentures
the
$1.50
of
proposed
securities
municipal
exempt
to
power
proposed rule the Commission assumes the power to set up a new
class of exempted securities as distinguished from the exempted se¬
a
Eastern Gas Co, at
share.
Details of
the merger plan have been filed with the
Commission and previously announced
In addition to the securities to be issued
price
the
regulatory
Now,
shares
any
the
agreement of merger, the
business and all the rights, powers, etc., of
Cumberland.
After
the
merger has
be¬
come
effective, the business of the com¬
New Mexico
and
the
less
sub-committee
the
member
pursuant
other
Co.,
4,000
value,
partnership
to
deliver
will
shares
—
as
shares,
of
from
utility incorporated in Maine in
1909, will be merged into the company and
Central
Maine
will
thereupon
acquire,
for subscription by holders of
the presently outstanding common stock of
Southern Union Gas Co., New Mexico Gas
interstate carrier of
merchandise by motor vehicle.
The new
corporation will acquire from the partner¬
ship all accounts receivable, motor vehicle
equipment, rolling stock, real estate, fran¬
chises, etc;... .In,...consideration thereof corpopartnership
are
the
public
share,
per
of
to
the issue of the securities now registered,
Cumberland County Power & Light Co., a
things,
that the survivor
corporation shall offer approximately 240,584
shares
of its common stock, par $1
Offering—The issuer, a new corporation,
the exercise of its option, will take
over and
carry on the present business of
holders
effective
'■
among
upon
a
provided
r
is the principal un¬
Col.,
Denver,
Co.,
the
Proceeds—Statement
Business—Primarily engaged as an oper¬
derwriter
to
comes
ating utility company
Underwriting--:E. H. Rollins ArSons, Inc.,
is the principal underwriter
Offering—Agreement of merger provides,
transport lines
Underwriting—Brown, Schlessman, Owen
261,910
share
be
Texas
to
be subscribed for by stockholders,
pay therefor in- cash
at $10 per
may
and
The name of the
changed in consumma¬
tion of the merger plan from Texas South¬
western Gas Co. to Southern Union Gas Co.
Address —1104
Burt
Building,
Dallas,
will
offered
be
the
take
registrant
CO., INC.
Denver Chicago Trucking Co., Inc., has
filed a registration statement with the SEC
lor
$400,000
debentures,
5%, maturing
serially from 1944 to 1952, inclusive
Address—2501 Blake Street, Denver, Col.
Business—Operation
of
motor . truck
TRUCKING
CHICAGO
to
shares of common
stock and
6% preferred stock for subscription at $10
per
share in accordance with their pre¬
emptive rights.
New England Public Ser¬
vice Co. has subscribed for and agreed to
value $1 per share.
par
sunday, oct. 11
price of the
supplied by amend¬
261,910
company's outstanding common
as
DENVER
The
:,\-
sub¬
committee of the Interstate and Foreign Commerce Committee sincte
1937. If you will review the hearings on S. 3255 and H. R. 9634, which
amended the Securities Exchange Act of 1934, regulating over-thecounter market transactions, you will find it was the definite intent
the Securities and Exchange
I have served as a member of
offering
Offering—Public
ment.
Purcell:
Dear Mr.
offering price to
ly;
1 1:■/
Philadelphia, Pennsylvania
of under¬
Names
and
bonds and notes will be
'•
.
,
amounts
and
public will be supplied by amendment
of 4:30
dates, unless otherwise specified, are as
P.M. Eastern Standard Time as per rule 930(b).
Commission.
of the
>
•
-v''
Securities and Exchange Commission
Underwriting—The bonds and the notes
will be sold under the competiiive bidding
rule
■;
v.",,
I.
September 23, 1942. ;
WASHINGTON, D. C.
,
...
* :
Purcell, Chairman
V
Mr. Ganson
*
.
grouped according to the dates on which the registration statements will in normal course become effective, that
are
\
HOUSE OF REPRESENTATIVES
an operating pub¬
in the electric, gas
entirely within the
engages
business,
;
herewith:
states..."
united
congress of the
Street, Augusta, Maine
Business—Company is
lic
These issues
These
to ask for Congressional action in the matter.
Boren's letter is given
The full text of Congressman
1943 to 1952,
1 from
common
list of issues whose registration state'
a
filed less than twenty days ago.
more
dates
or
Address—9
Following is
or
central maine tower co.
an
ments were
filed
tration statement with SEC for $14,500,000
mined
Registration effective 5:30 p.m. EWT on
amendment filed Sept.;
July 28, 1942 as of 5:30 p.m. EWT July
list of underwriters of its
12
1942
proposed $2,200,000 4%% sinking fund de¬
Oftered Oct. 8, 1942, at 100 and int. by
bentures
with
the
amounts
which each
E. H,. Rollins & Sons, Inc.. and associates.
will purchase as follows:
Company in
24 revised the
but
(Continued from page 1250)
regulating over-the-counter market trans¬
actions, shows that it "was the definite intent of the sub-committee
to exempt municipal securities completely from the regulatory power
of the Commission."
The proposed rule, he added, is "contrary to
the obvious intent of Congress," and stated that he is prepared, if
days
offering
Offering price to the public will be 100
plus accrued interest from June 1. 1942.
*(5-29-42)
Apply Disclosure Cute To Municipal Bond Field
of Issue*
list
a
whose registration statements were
50,000
40,000
& Co.
—-——-—
Goodwin, Inc.—;—--
&
Bond
below
present
twenty
100,000
Co
&
We
150,000
100,000
.—
Boenning
bank loan
Registration Statement No. 2-5003.
A-2.
'
—-
Biddle, Whelen & Co.—;
Pa.
of
Proceeds—Payment
UNDETERMINED
2ub,uou
Co., Inc
Graham, Parsons & Co
Congressman Challenges Authority Of SEC To
OF OFFERING
DATES
250,000
manufacturer
Business—Steel
&
Stroud &
Co.
Address—Coatesville,
Dillon
Inc(:_—
Whiting, Weeks & Stubbs, Inc.-
filed a registration
statement
with
the SEC for $2,200,000
4%% sinking fund debentures due 1952
6'tteel
Lukens
Rollins & Sons,
H.
Thursday, October 8, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
1262
stock,
par
dollar for
the basis
$50, for the debentures on a
dollar basis and or exchange for
deposits made by non stockholder members,
Amendment filed Sept. 12, 1942, to defer
efeC(TbifS
is incomplete; this week)-,
asking for revision of
Purcell
proxy
the
'proxy device
has
been
sadly
prostituted,'
and
that
'we
see
rules,
more
Mr.
and
more
charged
today instances of
management feathering its nest at
the expense
well
as
"Any
is
of its stockholders, as
that of the, government.'
existing condition which
sufficiently serious to warrant
such
: L the
a
derogatory
statement
by
SEC, Chairman about icorporate
Volume 156
'
THE COMMERCIAL
Number 4114
'
management,"' Mr; Kennedy bulletin to the list receiving its
wrote,
"should be
immediately "Investment Timing" service, re¬
and
thoroughly investigated by versing the forecast of an inter¬
bur Committee for the purpose of; mediate downtrend made in the
"Determining why a conditiorl issue of the service published the
of this nature was not disclosed previous day. According to
this
'
& FINANCIAL CHRONICLE
Our
1263
Reporter's
Report
(Continued from first page)
'
during* the
Congressional
service, the intermediate trend is
now up
hearings.
,'
and, hence, conforms with
"Holding additional hearings to the basic long-term trend which
recent
,
-
.
:
Closed
|
show its
facts
"Correcting
nunciation
if
ment
such
improper
the
of
do
not disclose
condition."
a
1 Continuing, Mr. Kennedy wrote
In the letter, copies of which were
§ent to every member of the Lea
Committee:. \
/
"Information
time
some
being
as
ago.
his
de¬
manage¬
corporate
facts
the
existence,
mission's authority as specified in
the statute,,
that
visions
not
they
are
of the
many
pro¬
vergent trends of the British and
The London
last.quarter of 1940.
market recently made a new high
for the entire war period and for
workable," because
be correctly - inter¬
cannot
preted, that they restrict the rights
of
investors
stead of
stockholders in¬
and
extending them
more pro¬
situation
which
exists.
possible that the London
It
mar¬
weathered
nas
these
adverse
The
tnem.'; That
our
trend
higher levels
other
work
at
in
accounting and
when
time
de¬
i
are struggling with
and production problems
nas
pleted staffs
reports
in connection with the" current
V.
effort.,
■■
In
-
the
fact
y';'■■■'.'.J'/;?;-.;'
feeling of
business executives, trade organi
izations,
.
and
newspaper commentators,
attorneys and accountants is
that the
an
rules represent
extremely serious step in con¬
new
proxy
Purceil
Mr.
market,
the
the
toward
market
unfavorable
war
intermediate
an
putting the line girls through their paces, or appeasing the star
stripper for the lack of proper musical accompaniment for her bumps.
viser
to
Manhattan
up of corn and bits of originality all aimed at
Written for laughs, it has a cast which knows how
to get the most laughs per minute.
The plot is built around an exburlesque comic, now a draftee, who invites his old pals to come to
and put
time
camp
to get
Lieu
of
New Issues
seems
those
which
And
geared
are
are
the
direction
brief
a
fast show made
a
the funny bone.
hill
should
gives
It's
Foundation,
deal
for
the
inclined
more
since
job
possibilities
to
who
obtaining
consents
to
found it
scene
to date the girls.
The private responsible for the mess,
steals the major's car and, 'accompanied
by his pals, goes A. W. O. L.
and heads for Washington to see the Chief of Staff to
seek
official
How he gets it and what happens during and after is
sidesplitting to see and hear. Messrs. Lindsay and Crouse have come
up with another hit which can stand up alongside their "Life With
of
the
respect to the condi¬
which " prompted
him* * to
Inc., ' the
Which fUfitishbsf investment advice
"death
make the above serious statement,
and assistance to the management
Public
"Hello Out There" is
It offers
is
Section
Utility Holding
known
as
the
corporate executives
on
and the Commission to issue such
drastic
and
far-reaching amend-
minor
particularly
changesvin rules,
before
Commit
our
tee has concluded its examination
of the data presented at
hearings.''
the recent
"There
be a ceiling on
corporate tax rates" suggests the
current issue of
"Selections," pub¬
of
*. The
United
Building
Loan
&
the
Senate
,is
one which
limits the over-all income tax rate
Investors And Trustees
taxes."
fore
Whether
this
not
or
send investors,.trustees, and other
fiduciaries- interested in learning
war,
the bulletin
lief
that
Federal
Sav¬
ings & Loan investments full
par¬
4% per annum,
"
j
u
''?■
,,
the
approaching
a
expresses
the be¬
•(Continued from page 1255) V
orandums for distribution, one on
fi¬
bidding with the announcement by
the Alabama Great Southern that
it
would-
tion
proposed rates are
maximum practical
limit.
ask
bankers
informed
in
the
to
tender
plated
vately
placing
company
is. defined
as
which
one
"should provide
with
had
the
contem¬
issue
pri¬
studies
compare
the
aver¬
1937 highs and the average
charges earned'* in that
year for the bonds in each port¬
folio with their present prices and
estimated earnings coverage. Here
are
booklet
attention
time
is
of
the
to
this
column
the
to
come
in
some
;
•s:'Bond Series
High
.—98.23
1.30
a
"
1942—
Bldg. Issues Attractive
67.98
Est. Fixed Chge. Coverage._ 2.60
.
-
—
^'Low-Priced Bond Series
High
Fixed
1049
—93.93
:»
1.29
„
Charge Coverage
c
;
High
58.90
Est. Fixed Chge. Coverage... 1.83
^Figures are straight arithmeti¬
cal averages on individual bond
nal
on
On Oct. 2, National Securities &
Corp.
sent
able
effect
a'
special
the
on
finances
municipalities.
many
Speaking
of
the
Convention
Mr.
/.T
before
in
TOWN
war
for
"openings" plus
an
inordinate fondness for tippling, particularly
when such tippling can be
indulged in for
tance Bob Knight, his electric
guitar and
to a crowd strangely
shy of
Tower
Building
offer
very
American
Chicago
cities
dancing.
were
out
Even Wall Street
en masse.
things being what they
New
Obviously it
represented.
,
ys;
The waiters
out,
are
cashing) arranged.
The Army and Navy was
A splattering of two stripers and at least one oak
being unaccustomed to such brilliant company were
He peered at everyone with
on.
at
a
without
Mericka & Co., Union Commerce
likely
which
making the impression.
was
Signs Capital-Stock
Tax Extension Bill
to
President
than
war
he
Broadway, New York City. Copies City
of the
circular, containing
a
brief
ization
for
the
property,
may
debt
be with
had from the firm upon
request.
small
28
indicated in
while
continuing to
re¬
obliga-
time
in
file their
may
an
case
of New
example,
our
issue of
Treasury extended
.
Sept. 29.
York
new
be
retired
this
emissions
in comparison.
capi¬
As
the
nor¬
year
necessary
days'
in
period
~
extension
view
of
a
peared in
our
item
on
the
most
unique restaurant in
beautiful location,
to
was
Central Park
Serving
to
best
overlooking
the north.
food,
skilfully
prepared.
Entertainment after 11 P. M.
pending
proposal to repeal the law.
on
A
a
the
Committee, stated that
60
relatively gressional action
•
SOUTH
Adjoining The Plaza
Sept. 24
Representative Dough-
and Means
stating that another
$50,000,000 to $60,000,000 of
would
30 CENTRAL PARK
which
(page 1087) these taxes were
mally due on July 31, but
indebtedness
new
the
ton, Chairman of the House Ways
as
some
Nov.
The Penthouse Club
tal-stock tax returns for 1942.
pointed
a
The only spirits he
monde who, for a
change, were not only in out of the rain but making eyes at the will¬
ing but amateur Lotharios, each thinking it was their peculiar charms
Pres.
tions.
He cited the
expression reminiscent of
Life
Tues¬
minimum,
incurring
an
Hunchback of Notre Dame with acute
digestion.
couldn't dampen were the ladies of the demi
asserted
are
issues,
outstanding
ing circular issued by William J.
Building, Cleveland, Ohio, and 29
was never
mixing their orders or falling over their feet, v One of the
captains, it was early obvious, disagreed with the entire go¬
waiter
ings
corporations
bond
tire
interest¬
represented, though
Orson Welles, acting camera
shy, was busy hiding behind pil¬
room itself is a
plain squarish affair.
until
most cities are
an
was
are,
Roosevelt signed on
Sept. 30 the resolution extending
ent time
according to
nothing. Off in the dis¬
orchestra, were playing
All the local wolves (both
finance
the
MeGoldrick
many
•
of
prior to it.
the Cleveland Termi¬
summary of the plan of reorgan¬
basis.
5
Research
Issues
.
...
either
attractive possioilities at the pres¬
1937—
.
find themselves in better finan¬
;
Fixed, Charge Ctjverage-___-
High
a
'
cial position after the
.
"Magic"
_gqing^Qruynuld-think a "society" cocktail party to
inaugurate the opening of a new bar would leave scarcely a ripple.
we
thought until we dropped in to see what James Mc*
Kinley Bryant, the perennial opener and closer of East Side bistros,
had cooked up in the staid Madison Hotel on East
58th St.
Well, Mr.
Bryant, making like a Grover Whalen, was there behind a rope to
say"
glad you came. There's the bar." And he was right. There
it was; held up by a varied assortment of
gentlemen who have a nose
direct to investment interests.
that
really
THE
With
loomed if the bonds had been sold
large-sized,
is
pathetically realistic.
AROUND
leaf.
day,
handsome job.
.
also
a protest by invest¬
banking interests which had
Keystone,; the
brochure
'
1937—
.
ment
section
of
.
possibility of
call for
sealed bids doubtless removed the
development
the results:
complete regulation play.,
built to accommodate such goings on as Mr.
Bryant (who writes songs,
poems, not to mention four figure checks which no one in their
right
mind would think of
Decision of the road to
Keystone publi¬
cation entitled "The Keystone Or¬
ganization." Stressing the ten-year
new
a
lars. The
sonnel"
These
Series.
Bond
work is
there.
institutions.
age
Low-Priced
In
not in its usual glory.
Hollywood
was present in chincilla coats
which didn't fit and manners that did.
Tommy Manville, carrying the banner of playboy No. 1, not
,to men¬
tion bags under his eyes and a bored
blonde on each arm, was also
"times
ihe
on
badly
conjurer plays upon people's
emotions, fears and beliefs, or rather disbeliefs, of the supernatural.
Of the two, "Hello Out There" is the better
play.
Dowling as the
prisoner is magnificent.
Miss Hay den as the lonesome girl of all
with
increasing possi¬
bilities for earnings and dividends MeGoldrick On Municipals
extending over a period of years."
Joseph D. MeGoldrick, Comp¬
troller of the City of New York,
The first "Organization & Per¬ finds that the war is having favor¬
the Bond Series and the other
a
rape.
revival of Chesterton's and like most of his work is
wordy though
at times brilliant.
In the play an Irish
sexes)
that
quarters
management
intensity about
jail falsely charged with
a
-
of Sept. 28 discusses the emphasis
placed by National Investors Corp.
on growth companies. A
"growth"
.
railroad
the change in indicated plans, it
had been the general expecta¬
tual ceiling for the duration of the
The "National Investors Letter"
f Investment Trusts
of
Whatever happened to prompt
ac¬
Current dividend rate of
ticulars.
piece
corporation to a maximum bids
shortly for a $9,500,000 issue
of 80% of total net earnings be¬
of mortgage bonds.
v J;.v
'•
particular figure becomes the
about insured
Offering Near
first
a
Association," 519 Garrison Avenue,
Fort Smith, Ark., will be glad to
more
The
;
small Texas
a
That's what
nancing in quite a spell came, into
Shares,.Inc. "Among the the realm of.
early competitive
American
on
:
Railroad
lication of the sponsors of Selected
Finance Committee
Insured Investment For
many
might
recommendations
.
clause,"
opportunities should arise, it
of
New York
Stocks,. Inc. and is argued, as utility groupings are
Manhattan Bond Fund, Inc.V revamped structurally, necessitat¬
ing contact with millions of in.
so-called
Act,
sentence
short play that sounds like an early Saro¬
packs enough drama to fill
such
organization Company
in
man
a
full of drama and quiet
a scene
constantly calls out "Hello Out There" -and is-finally anby a girl hired to cook and clean the jail. Both are lonesome
and exchange confidences and make
plans for life outside before a
lynch mob breaks in and shoots him down. It's just a one acter, yet
fairly lucrative busi¬
a
Ilaydon, John Farrell, Stanley Harrison, John McKee and others.
swered
exchanges, or
Empire plan
the
"Hello Out There" and "Magic." Two plays; the first
by William
Saroyan, the second by G. K. Chesterton. Both staged and presented
by Eddie Dowling at the Belasco, N. Y.
With Eddie Dowling, Julie
his fear he
handled the
-Under the operation of
II
good
a
Father" and "Arsenic & Old Lace."
scared little
judging by reports.
ness,
proof with
reflecting
Characteristically, he neglected
the
yan.
that
than passing attention
bankers
of
in
receiving
are
more
tions'
research
show for the boys.
on a
permission, a fact the troupe first discovers when in the throes
rehearsal, made more violent by the soldiers who invade
of violent
permission.
considerations."
Letter"
had an influx of burlesque shows tailored
trade rather than the followers of Minsky,
But "of all
ager
anticipated.
The current issue of the
York
New York has recently
the $4.40
"Strip For Action"-is the best buy. Actually it's
burlesque show as much as it is a burlesque of a burlesque. For
it details life backstage irr a road
company burlesque outfit eager to
put on a show for the soldiers. It shows the harried little stage man*
search
around
for opportunities
Kemmerer,., Princeton
such
as
that
presented by the
has writeen a book,
"Tne A B C of Inflation," which capital revision of Empire Gas &
will be released for publication on Fuel Company.
"New
!
.
not a
of
choice
a
E. W.
14.
'
the recent arrivals
economist,
Oct.
Garter, Murray Leonard, Billy Koud and others.
for
term bond and short-term notes
business;
r.' Dr.
National, N. Y.
to
Gov-
expected
was
investors
financing, with
•
obtain from
in
two types of security in the
preview of the book, recommendnection with the regulation of cot- ihg it as "well
supplied with sim¬
porate activities.
■. ^
ple* and
-'t
up-to-date charts" and
language
which '-is
f
"It is my suggestion that this' "employing
unusual condition be thoroughly surprisingly non-technical in the
;
reviewed by the Committee at an light of tne subject discussed."
Dr. Kemmerer is Economic Ad¬
early date and prompt action be
taken to
eminent
to! offer
In
war
general
according
well-versed
Up and going investment bank¬
ing firms are not given much to
more
reasonable prospect.
It griping about the dearth of new
been and is now discounting issues currently. On the
contrary,
tne
a
Treasury,
those
in¬
the
increase
"Strip For Action," by Howard Lindsay and Russcl Grouse. Pre*
Oscar Serlin, Howard Lindsay and Russel Crouse at the
With Keenan Wynn, Eleanor
Lynn, Joey Faye, Jean
_
sented by
•
ket may
sult
vast-
mo¬
roll over the usual weekly
offering.
The
Government
come down to our. level,
market, evidently closely guarded
but this seems improbable as it
from all sides, maintained its stoic
nas already "been exposed to
the firmness in face of the
huge im¬
worst the war has had to offer,
pending issue.
is
fluences, and has rallied in face oi
a
full
on
of
re¬
in
war
Meanwhile he must provide for,
England and
refinancing $1,507,000,000 of cer¬
Ihe United States. are too closely
tificates of indebtedness due No¬
interwoven to justify for long the
vember 1, next, and at the same
"The .destinies
tection, and that they would
amount of detailed
$4,000,000,000
program,
has
a
his hands at the
schedule
American stock markets since the
market
PLAYS
ment.
published in the several months prior to its out¬
whereas the New York
press and> business
papers indi¬ break,
cates a widespread feeling on the market is not far ; from its low.
Comments "Brevits":
part
of
industrial
management
amendments-far exceed the Com¬
enormOus
financing
The Sept. 26 issue of ."Brevits"
contains a chart showing the di¬
•
that the statement by Mr, Purceil
is
not
true, that the proposed
Schedule
-
forecast
was
Full
Secretary of the Treasury Morgenthau, who was expected to
upward make known
today the details of
~
eliminate the condition if the dis-
A
Con¬
bill
ap¬
Page 1087.
Telephone FLaza 3-6910
.
THE COMMERCIAL &
1264
Group Named To Study
lltSUBEO: SHARES
BONDS WITH
4KIDS MADE ON
Thursday, October 8, 1942
FINANCIAL CHRONICLE
Ft. Pitt Bridge
Works
Common & 6s of SO
Penn. Central Airlines
1
Proposed revision of the Secur¬
ities and Exchange Commission's
COUPONS MISSING
sured
MUTILATED
dividends.
Ideal
for Trust funds.
of cooperation on mu¬
problems affecting the SEC
LHgby
United Building & Loan
AVENUE
519 GARRISON
*
;
Assn.
-
Investment
the
Carbon
Conference
held in
City Oct. 19 and 20, it
is pointed out by the Association,
"the
business
of
investment
banking and of the Association,
aside
from
war
financing, will
As this
written, we have not yet heard
is being
plete details on this
month's $4,000,000,000 issue, the largest
.
This two-day
War
is
Conference
Finance
re¬
placing the usual five-day annual
convention of the Association as
we
indicated in our Oct. 1 issue,
New
1170, and is being held in
York
to
minimize travel,
since
a
page
tion's
majority of the organiza¬
members-are-located in
"Eastern financial centers.
addition
In
to
the
conference
there will be on Sunday,
Oct. 18, national committee meet¬
ings and a meeting of the Board
of Governors, open to all regis¬
tered IBA delegates
and alter¬
nates. It is noted in the Associa¬
proper,
that since the Se¬
tion's program
Commis¬
asked dis¬
closure rule (X-15C1-10) is one of
the mosf important subjects now
curities
Exchange
and
sion's proposed bid and
investment
the
before
banking
business, it will be discussed at
the Governors' executive meeting
special committer on this
and the
rule will
report.
Interesting Situation
Oct.
with
20
an
the
by
address
incoming President, Jay N. Whip¬
sociation is asking members
out¬
side of New York to schedule one
of their regular
business trips east
coincide with
to
of the
the dates
conference
and
attendance
without
so
their
permit
extra
of
U3e
transportation facilities. Total at¬
tendance is expected to be large
in
view
of the number of mem¬
be had
Perhaps the only answer
around
N6w
York.
&
Co.,
way,
Scott & Co., 120 Broad¬
New York City.
.
.
.
.
.
Back in
and
be forced on
Bell
was
constitutes
.
...
has not been given the public notice
... It's possible that the system may
despite its reluctance to make any changes
conviction
on
Of course,
of
....
this is the most difficult financing
American fiscal chief. . . . Never
borrowing job of such magnitude
task ever placed
an
been faced with a
.
to
any
Government bond dealer around your
.
district and
.
.
Morgenthau's hesitation to
that might be even faintly unsatisfactory is entirely
under^the circumstances. . . . But, according to authorities
know the Government market inside out, the time has passed
the Treasury's difficulties and
adopt a course
in any form.
...
1
securities
wfere
to be
offered, they could, begin "building the market" for the offering long
before the actual sale...
Preliminary selling could be of great
aid in the actual distribution.
As for the buyers themselves,
.
...
surely
some
investment
N.Y. BOwIing Green 9-703C
in
tation,
,
#
to a financing offer could be turned to good use
and directors' meetings prior ,to a Treasury flo¬
clue
if ever. .
tax-anticipation notes going fine, with reports
for some time,
indicating
since new sale started
believed to have been
Fund Committees now
calling on certified public accountants for aid in distributing these
notes.
'' ' ■■ "'v.- .• \
'' 5
One story is Reserve authorities will have to create as much
as
$6,000,000,000 and maybe more additional funds for the nation's
Sales of
$600,000,000 of the notes have been placed
Sept. 14.
.
.
Of this, $300,000,000 total is
placed in the New York area. ; . . Victory
.
.
.
.
,
commercial banks in this
fiscal year.
as
?
.
.
.
Ways to accomplish this
(1) reduction in reserve requirements generally; (2) open mar¬
ket buying of securities;
(3) member bank borrowing. ... First
choice will get most attention over next few months. . . .
are
1
COMPARISONS
Some
to throw
comparisons
into bold relief the institutional
support being tendered to the Treasury these
banks and without the tremendous support
days.,.
.
.
Without the
of other non-banking
such as insurance companies, financing of the war on
acceptable basis would be impossible. . . .
Excess reserves of all member banks have been slashed $3,- r
170,000,000 in the last 12 months, from above $5,200,000,000 to
insitutions,
any
$2,030,000,000.
...
Excess reserves
natural
for timidity
.
.
you'll get more information on this subject. ... This is not criticism
in a destructive sense.
It's not even criticism, for everyone un¬
derstands
.
,
.
.
has any Treasury
and delicacy. . . .
But we need a definite program.
We shouldJiave some hint
to what we're going to get more than an hour bbfbre we get it. . . ,
in the lap
days,
10
.
of the had "gaps" in our war
what securities to choose.
last
.
.
.
.
has been actively supporting the market
particularly since announcement of borrowing for
October.
Big purchases of the new U/4% notes of March 15,
1945, reported by dealers. , . . Issue is being held at the crucial
"par" level.
.
.
;■ .
Last borrowing of comparable size to this was the $6,000,000,000 issue of 4th Liberty 4Us, due 1938/33, sold Sept. 28,
1918.
Subscribers were permitted to buy that issue on the
instalment plan, with terms of 10% down on application; 20%
011 Nov. 21, 1918; 20% on Dec. 19, 1918; 20% on Jan. 16, 1919 and
30% on Jan. 30, 1919. . . .
j
Not much talk around of returning to instalment system for sales
of bonds in this war, so probability is this method won't be adopted
in
to be taken for
one
THE MARKET
Federal Reserve System
Strong though these
the Treasury has not yet
Teletype NY 1-61
tried
...
INSIDE
peace-time days, when a $500,000,000 borrowing was
to be expected only now and then, such uncer¬
was
.
71 Broadway
'
.
If dealers had indications of what type of
Members New York Stock Exchange
S
.
.
who
HAY, FALES & CO.
the Treasury
at this time.
granted. . . . To prevent undue spec¬
ulation, Secretary Morgeiithau had to keep his issue plans secret
until the last instant.
.
Ilis policy was accepted as smart
maneuvering, essential to holding down the subscription totals
and fooling the multitudes of "free riders." . . . But today, that
policy no longer makes as much sense. . . . On the contrary,
among the most informed dealers and traders in the New York
market, the conviction is growing that the lack of a definite,
established policy for financing this most costly war in history
tainty
Talk
Stephenville, N. & S. Texas, 5s
formerly with Baker;
Watts & Co.
.
COMMON
Susquehanna Mills, Inc.
Carter was
Anyway, it's one idea that
that it has received in private.
PRELIMINARY SELLING
pfd.
manage?
.
.
United Piece Dye,
as
years
.
as
R. Hoe & Co.
many
investment department. Mr.
should have been made prior to
move
.
has become associated with Mont¬
gomery,
for
of the
...
Montgomery, Scott
Whitehouse
firm
of Oct. 15.;
been with the
lies in a return to the system
experts say. ... A huge bond
fill the need.
cial buyers, would
Gwynne With
Winthrop,
Mr,. Wilbur has
buying interest and "take the market
.
of
the New York
and other leading
issue
every
few months is considered a worthwhile substitute for
month-to-month approaches to the marts. ... Were a plan of
this sort to be attempted, the entire selling machinery of the
country could be called into action and door-to-door placements
could be built to huge totals.
Maybe a $10,000,000,000 issue
every quarter plus now-and-then short-terms, designed for spe¬
with such success in 1917-19,
effort. ...
words may appear,, the fact is obvious that
The program for the two-day
determined an over-all war financing pro¬
meeting was given on page 1170 gram.
Borrowings are tumbling out, one on top of the other. , . .
of our Oct. 1 issue.
Every month, we get a tremendous financing deal—at one time,
shorts, at another, longs,-at a third, a mixture. ... Already, there
are 36 bond issues listed on the Treasury's outstanding loan calendar,
Arthur
14 note issues, four guaranteed bond issues, four certificate of in¬
debtedness issues, six short-term guaranteed issues. ?. . . In a few
days, the total of 64 will be lifted again. . . . Just the size of the
1
Arthur C. Gwynne, formerly a list is becoming disturbing, suggesting the variety of financing offers
is reaching the unwieldy stage. . i; . Until the last minute, Morgen¬
partner in Jenks, Gwynne & Co.,
thau (his advisers) and the Reserve Board's experts have no clear
now
in liquidation, and recently
bers in and
request.
upon
South Calvert
the October deal to inspire ASTRONOMICAL FIGURES
off the floor." . . . But it wasn't
The October offering will lift the Treasury's working balance
done, so we may anticipate a step in this direction later this month to above the $6,000,000,000 mark, it is estimated. . . . Balance now
or early in November. ...
is around $3,500,000,000, but. at the rate of daily expenditures now,
Expenditure^per
There's one other point that demands at.tentinn..at the, starts.
even
The njetober reserve wonT last long;
And that is the Treasury's persistence on "issue secrecy" until the month now running above $4,000,000,000, will be up to $5,000,000,000
very last moment.
Here it is, a few hours prior to the October soon (just for war purposes). . . . Debt is above $90,000,000,000, is
borrowing and dealers still are guessing on the terms of the deal. . . . rising at a rate of $4,000,000,000 per month. ...
We have some clear ideas, of course.
. . We have the figures and the
Deficit just in the period from July 1 to the end of last month
calculations to indicate what must be offered to guarantee success. was
$11,629,000,000. . . . Borrowings since July 1
have totaled
But they're statistics arrived at by private sources, not proffered $13,000,000,000. . . .
- : i
No, there's nothing easy about Morgenthau's task. . . . But he
by the Treasury. ... Uncertainty is the keynote of the market prior
to an offering these days
"dead center" markets are the rule can't solve it by refusing to face the facts. ...
until the last.minute.
.■■ ■■„
\
';:V
this
news
Mr. Dillman states that the As¬
New
Broadway,
61
City, from whom copies may
York
.
Co.,
&
King
.
6
national exchanges, as
5s, due 1959, offer
interesting possibilities, according
to a circular issued
by Charles
be desirable from an anti-inflation viewpoint but it is
desirable from a war financing viewpoint. ... Some dealers think
ple, partner of Bacon, Whipple &
Co., Chicago.
.
.
.
Boyce,
Street,, members of
Co.
Brown
York may not
.
The conference will conclude on
.
&
Bros.
ad¬
Stein
in
partnership
to
mitted
Allan L. Carter, Jr.,
A. Wilbur will be
Stock Exchange
JfV
To make sure that banks would be able to buy the bonds,
the Reserve System has just put through the third cut in Reserve
requirements of banks in New York and Chicago. . . * The re¬
quirements of these two cities are now at 20%, equal to the bank
requirements in other cities classified as "Reserve cities." . . .
The banks now have the cash and they'll buy. . . . But when this
one is over, the money situation will begin to tighten again.
. . .
And there is no question that a further cut in requirements for
the country as a whole must come-—and come soon. 'f . .
In fact, there's some doubt as to whether the board is following
the proper policy in making its reductions so gradual. ... A general
reduction in requirements to expand the credit base of the nation's
banks rather than just the credit base of banks in Chicago and New
subscribe for.
summary
proposed proxy rule changes ap¬
peared in these^columns of Sep.
10, page 893.
•
<
financing
2-8780
1-1397
To Admit Partners
and LeRoy
operation since the days of the first World War. . . . We
getting two offerings, one a bond, one a short-term. . .
the market is going to be able to take the flotations, for
Y.
BALTIMORE, MD.—Edward J.
Armstrong,
the exact, com¬
N.
HAnover
Stein Bros. & Boyce
of
Commission's
The
.
concentrated."
New
Co.,
dent, New York Stock Exchange.
know we're
. We know
it has been
have such a short time on the pro¬
put in fairly good shape by the Federal Reserve authorities and the
gram that the matters brought up
will be important."
"So, new- word has been passed around that support will be forthcoming on
The dealers are set. ... The nation's
wise,"
the
announcement
by any indications of sloppiness.
David Dillman, Educational Di¬ big investors, banks and insurance companies, are ready to take down
their major portion.
And as you read this, it may be taken for
rector of the Association, states,
"the War Finance Conference will granted that you too are deciding'how many of the new ones you'll
be
Secretary
Carbide &
York; Edward
and Emil Schramm, Presi¬
more;
New York
N.Y.
Teletype
Hopkinson, Jr., of Drexel & Co.,
Philadelphia;'Charles S. Garland,
of Alex.
Brown & Sons, Balti¬
Bankers Asso¬
Dealers As$'n-
Members N* rY. Security
25 Broad St.,
New
York;
Vice-President,
Treasurer, Union
and
of America, to be
ciation
L. H.
Manville
Robert W.
Corp.,
White,
Study Disclosure Rule
At the War Finance
Members of the group are:
Brown, President, Johns
FORT SMITH, ARKANSAS
IBA Conference To
of
M.S. WlEN & CO.
,
a
1-1773
4-4832 Teletype N.Y.
Bought—Sold—Quoted
cent. plan
and securities industry.
PL, New York
Cfs.
Mexican Interest Arrears
mittee will function under the re¬
S. H. JUNGER CO.
P »one
and Internal Loans
group
tual
40 Exchange
Mexican External
rules will be studied by a
of five business executives
with- the .SEC staff, it was an¬
nounced on Sept. 28.
The com¬
proxy
regularly—
Earn semi-annual
an
S; Government.
.
^
by
of the TJ.
agency
Inquiries Invited
.u
Save
Up to $5,000 In-
OR
Convertible Preferred
of New York City banks have plunged $1,-
620,000,000, from $1,830,000,000 to $210,000,000. . . .
In New York City, 16 banks have added $1,700,000,000 Govern¬
ments to their
All
portfolios, bringing the total to $8,740,000,000.
portfolios, building the total to $20,588,000,000. . . .
Life insurance companies have bought $1,872,000,000
ment bonds in the year
same
.
.
.
reporting member banks have added $6,180,000,000 to their
.
Government bonds have represented 57% of
in this year, against 21%% in 1941. # # ,
1941 period.
their purchases
Govern¬
to date, against $584,500,000 purchases in the
.
.
@FedFRASER