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Final
JS
Edition
ESTABLISHED OVER 100 YEARS
K£>*
In 2 Sections-Section
\al and.
*0V
SEP 17 1943
ommetciaL
h
Keg.
Volume 158
Number 4212
New
Gwilym Price Is i
Westinghouse V.-P.
4
U.
<
S.
;■
Office
Pat.
York, N«-Y., Thursday, September 16, 1943
Utilities Need Relief From
To
Vice-President of
as a
By LUTHER R. NASH
the Westinghouse Electric & Man¬
ufacturing Company, has been
nounced by A.
W.
global war.
For a similar preceding period it was furnishing in¬
creasing quantities of war materials and supplies to countries that
are now our allies.
This ever expanding participation is having its
effect upon all classes of people and business.
It is clearly intended
that the present war job shall be so well done that .it will not be
necessary to
repeat it with in-^
L
Electric power companies have
creasing cost and intensity a gen-
of
Westinghouse.
Mr.
Price
as-
d
s u m e
his
duties
new
yesterday
which
his
at
eration
time
tion
dent
of
full
the
clude
of
ment
A.
Gwilym
war
L.
H.
Planned
Gethoefer,
Chairman of
man
of the Executive Committee
will
serve
Acting
as
■HMI
President.
been
superim-
posed
have
agencies busi-*
ly plann i n g
the
shape of
our
post-war
econo my.
It
-
cheerfully as¬
Special
interest
material
with
activities
necticut,
appear
in
to
States
Michigan
and
of
dealer
of
Con¬
Missouri
igan,
pag^
page
1092; Mich¬
on page
1090.
1091, and Missouri
General index
on
on
1108
page
Nash
R.
have
interfered
with essen¬
tial war activities and problems.
It is the purpose of this paper
to review some of the war obliga¬
tions assumed by public utilities,
with
particular
reference
to
electric
power
com¬
typical of the.various
classes of utilities, all of which
are rendering outstanding service
although not all are subject to the
agencies referred to herein; also
operating
panies
in this issue.'
Connecticut
Luther
icance but also because they
items
and
reference
the
as
examine the difficulties under
to
which these obligations are being
met; and, finally, to consider the
pressing need for relief from non¬
Baltimore & Ohio
Enterprise
not
A well-established free
terprise system
ated
for
he
X
essential distractions.
to ap¬
that our
destiny
is
a
self-reliant
transform
planned econ¬
omy of some
sort, like it or
a
strong
its
which has
state.
It
possesses
value.
transformation
into
Due
Nov.
1/43
M
col¬
Yields
0.70%
Buy More
to
movement,
had
In
least
Dr.
C. Wm.
States
United
the
by
use
of
frequent¬
for
free
a
enterprise
system must convert itself into at
the
;
Phelps
''
in this direction during
the
pre-war
decade,
although
steady, was rather slow compared
with that in many other counprogress
a
order
semi-totalitarian state
to
in
fight
successfully
powerful totalitarian country.
is
no
to
answer
turned
the
to
free
first
other
London
NEW YORK STOCKS, INC.
.
NEW
YORK
25 Broad
HAnover
4, N.Y.
a
It
Established
INVESTMENT
Rep.
64 Wall
CHICAGO 3, ILL.
2-0600
State
Teletype NY 1-210
8770
Teletype CG 1219
BROKERS and DEALERS
War.
on page
Bond
Brokerage
1927
Prospectus on Request
HUGH
15 EXCHANGE PLACE
Syracuse
"
'
?
JERSEY CITY
Dallas
Actual Trading Markets, always
N"
LONG
efnd COMPANY
INCORPORATED
PHILADELPHIA
Troy
Albany
Buffalo
Pittsburgh
Williamsport
•
W.
Street, New York 5
for Banks, Brokers
Hardy & Co.
BONDS
LOS ANGELES
New
Emerson Radio
&
Securities.'
INCORPORATED
Members
TELEPHONE-RECTOR 2-6300
be
its
own
destiny.
others have the
which
we
We
same
reserve
should
let
free choice
for ourselves."
He added that "we must not dis¬
parage
and
underestimate
(Continued
on
page
other
1100)
•
THE
CHASE
BANK
OF THE CITY OF NEW YORK
service with Chase
v.
"'
*
>
N.
Y.
Security
45 Nassau Street
Tel.
REctor 2-3600
Philadelphia
Dealers
Ass'n
30 Broad St.
Tel. DIgby 4-8400
New York 4
Tele. NY 1-733
New York 5
Teletype N. Y. 1-576
Teleohone:
Enterprise
6015
120
Stock
Exchange
Broadway, New York 5, N. Y.
Telephone:
REctor
2-7400 *
'
Bell
Teletype
NY
1-635
Member
Federal Deposit Insurance
Corporation
ALL ISSUES
HART SMITH & CO.
REYNOLDS & CO.
York
facilities
Public Service Co.
;
Phonograph
Members New
correspondent
New England
Kobbe, Gearhart & Co,
EXCHANGE
St., New York 5, N. Y.
may
York Curb Exchange
COMMON
Bought—Sold—Quoted
14 wall
other
versa.
The history, the tra¬
ditions of people vary
throughout
the world.
Each must work out
Members New York Stock Exchange
Members
634 SO. SPRING ST.
Idaho Power
*
-
manifold grades of
Over'The - Counter
NEW YORK STOCK
of
be good for
anathema to us or
Broaden your customer
in
MEMBERS
affairs
may
Then,
1094)
Service
SECURITIES
BOSTON
in
Bull, holden & c°
of the
What
or
as
that we re¬
enterprise after
R.H. Johnson & Co.
Exchange
135 So. LaSalle St.
St.
ideals
hardly qualify
and Dealers
Exchanges
Geneva
-
we can
say
World
(Continued
.;
Hirsch, Lilienthal & Co.
and
ter
to
on
vice
than
ly employed abroad.
But the war has speeded up the
become world¬
wide.
shrewd
them
WAR BONDS
3.00%
Members New York Stock
motives,
privileges
directed
economy
the
bullets and violence, so
governmentally planned
and
by
or
"No mat¬
how high
our
nations.
inclusive
*
William O. Douglas
managers
accomplished
1/53
May
to
las went
say:
And
a
do
can."
Justice Doug¬
lectivist system is much more eas¬
the
we
ever
distribution of dollars and special
toward
problems
than
ily
war,
troubles
and
oper¬
democracy does not
overnight into a
survival
other
knows
more about its
en¬
NATIONAL
3% Equipment Trust Ctfs.
Series
nation
itself
collectivist
Even before
trend
forget,"
staged "that
every
generations under the
political climate of a
favorable
pear
the
solving
problem s."
"We
should
own
tries.
not.
sole
responsibility
for
R.R.
.
said,
he
international
begins
they
seriously
wanted
we
assume
Economy
The National Resources Planning Board is being terminated. But
still remain more
than a hundred government and other
had no
current signif¬
In This Issue
"Even if
is won."
there
which
not been1
election of Robert D. Ferguson as
Vice-Fresident in charge of trusts
1102)-
of the world should be when the
war
Head of the Department of Economics, University of Chattanooga
have
Mr. Gethoefer also announced the
on page
considering^
are
policy toward the rest
our
By DR. CLYDE WILLIAM PHELPS
sumed,
not
only
because
(Continued
Americans
what
And Free
unrelated
tasks
the Board, stated that J. O. Miller,
senior Vice-President and Chair¬
"all
"we could not
success-
and
contracts.
...
to,"
fully. : But
other, unusual
Price
Declaring that "the war is more than the immediate challenge of
military might which we are meeting so triumphantly," Justice Wil¬
liam O. Douglas of the United States Supreme Court depicted it as
"part of a continuing challenge to our whole way of life." "Now that
our position in the world
is being challenged," said Justice Doug¬
las, addressing the Commonwealth Club of San Francisco last Friday,
r
willingly;
o n
settle¬
to
on
carried
and
in¬
service
obligation
to
all applicants,
page 1096)
Responsibility For
Solving International Affairs, Says Justice Douglas
war
have
inghouse,
his
responsi bi 1 iwill
-7 '
jobs
incident
thereto,
and
At West¬
ties
in
traordinary
effect¬
came
furnish
(Continued
effort,
including ex¬
Peoples-Pitts¬
burgh
Trust
Company be¬
ive.
share
the
long-standing
a
for their
upon
Presi¬
as
hence.
Public utilities have been called
resigna¬
Copy
a
Keep American Tradition Alive
We Cannot, However, Assume Sole
For nearly two years this country has been actively
engaged in a
an¬
Robertson,
Chairman
Price 60 Centk
We Must Blaze Trail For The World
Election of Gwilym A. Price, of
Pittsburgh,
1
ira haupt & co.
Members
New York Security
52 WILLIAM ST., N. Y. 5
Bell
New York
Dealers Assn.
HAnover 2-0980
Teletspe NY 1-395
Montreal
Toronto
Members New
York Stock Exchange
111 Broadway
REctor 2-3100
Teletype NY 1-1920
THE COMMERCIAL &
1086
'
'
•
Thursday, September 16, 1943
FINANCIAL CHRONICLE
'
' f
•
"
r
v
'.Trading Markets in:
American
Bendix Home Appl.
We Maintain Active
Markets in U. S. FUNDS for
'
Common
Tennessee Products
Com.
^-■■■■■"CANADIAN MINES
Established 1920
40
York
Exchange PL, N.Y. 5
BROADWAY
115
HA 2-2772
Telephone
-
Stock
Members New York Stock
Tel.
REctor
Orleans, La.- Birmingham, Ala.
Direct wires to
"
2-7S15
'
NY 1-1557
HAnover 2-0700
New
BROADWAY, NEW YORK
Exchange
York 4, N. Y.
25 Broad St., New
Exchange
York Curb Exchange
New
120
Teletype NY 1-672
BArclay 7-0100
Steiner, Rouse & Co.
Members
York
New
NEW YORK 6, N. Y. :
y
u
McDonnell &fo.
Principal Exchanges
Members N. Y. Stock Exchange and Other
Ass'n
Security Dealers
Walworth Pfd.
Goodbody & Co.
king & KING
New
Saltex Looms 6s, 1954
Warren Bros. Class "B" & "C"
Mid-Continent Airlines
:
Birmingham Gas.
Remington Arms
Northeast Airlines
Members
Alabama Mills
Cyanamid Pfd.
Botany Pfd. & Common
CANADIAN INDUSTRIALS
Pfd.
&
>v
■
our
branch offices
NY 1-423
BELXi TELETYPE
dealers
Dp With
MUTUAL
Push Back Tiie Nazis!
Cites $850,000
•
;
Y. 1-1227
personal initiative and thrift," Julian S. Myrick, 2nd Vice-President
of
The-Mutual
Life Insurance'^
Company of 'New York and Board declared, "but the handwriting is
Chairman of the American Col¬ on the wall and you had- better
Life
lege-of
Th
Taggart Corporation
u
Ujiited Cigar Whelan
Underwriters,
last
property—and start talking with
legislator friends about the
your
future
Vanderhoef & Robinson
tax
estate
Telephone COrtlandt 7-4070
System Teletype NY 1-1548
Bell
laws
must
live
Prior
in
Preferred
of
Inc.
it
Stock
Capital
years
"Of
Struthers Wells
Common
5%s,
due
1949
Teletype NY
arid
■
with
B i
a war
to be
that
Third War Loan Bonds
"readiness
necessary,
for the maintenance of
is indispensable if effective
substitutes
for
war
are
to.. be
BACK THE ATTACK!
found."
emu
Members N.
37
Y. Security Dealers
Assn.
Wall Street, New York 5, N.
prior
was
Tel.
Bell
HAnover
Teletypes—NY
2-4850
1-1126 &
1127
that the
a
&
and
to 1938,
partner
Deep Rock Oil Corp.
in the firm of
Interstate
For
of
a
period
six
■
Tennessee Prod.
& Potter.
low
Mr.
Davis
-
acted
as
Scranton
Su-
pervisor
of
Harold
Westchester
;
County
and
special
committee
was
of a
with
chairman
dealing
Robert C.Mayer&Co., Inc.
.W
the finances of the county and its
problem is being studied
Established
Pine
30
municipal sub-divisions.
Telephone DIgby 4-7900
System Teletype NY 1-1790
New England P. S. Plain
Herb
Hipkins
and
Jerry
Bur-
/•' '
V;
chard, Managers of the Canadian
Securities Department of Good-
with
receiving
6% & 7% Pfd.
South Shore Oil
congratulations
late in
•
ernments.
the
brating
first
from brokers and banks
firm'
the
through¬
out the United States and
Canada.
department has been en¬
larged in personnel and facilities
during the past six months, and
has direct wires to Montreal and
armed
con¬
disputes of a legal nature
should be adjudicated by an-in¬
ternational court of justice. Secwhile
(Continued on page 1104)
Loft
&
Canada
Amerex
Tunnel
Citizens
Utilities Common
Edward A. Purcell &Co.
Members New York Stock Exchange
Members New York Curb
65
WHitehaU 4-8120
Broadway
Bell System
FASHION PARK,
Co.'offers
an
according to
by Herzog & Co.,
170 Broadway, New
York City.
Copies of this inter¬
esting memorandum may be ob¬
tained upon request from Herzog
attractive
a
situation,
memorandum prepared
.
.
.
Post-War Rail Prospects
McLaughlin,
Wall St.,
One
Teletype NY 1-1919
With Amott, Baker
Holding Corp.
Farnsworth Tel. & Radio
Bought
Paper
G.A.Saxton&Co.,Inc.
170 PINE ST., N. Y. 5
Teletype
NY
I
WHitehaU 4-4970 I
1-609
—
Sold
Frederic H. Hatch & Co.
Incorporated
63 Wall Street '
New York 5, N. Y.
Bell Teletype NY 1-897
as¬
sociated with Amott, Baker & Co.,
Incorporated, 150 Broadway, New
York
City.
Mr. Norris
was
for¬
merly with Cohu & Torrey. Also
joining the staff of Amott, Baker
& Co. are Louis E. Darling and
Irving Heine.
: ' '
Exchange, have just issued an in¬
teresting circular entitled "Rail¬
roads—Some Thoughts on Post¬
Prospects."
Copies of this
circular may be had from the firm
war
request.
.
American Fuel & Power 7s 1934
Columbia Baking,
Pfd. & Com.
Galveston-Honston Co.
Inland Gas 6V2S1938
-
Sulphur, Pfd. & Com.
Kentucky Fuel Gas 6V2S1942
Macfadden Publications, Inc.
&
Common
Ludlow Valve Mfg. Co. Inc.
W. L. DOUGLAS SHOE CO.
Preferred
&
Nu-Enamel
Oklahoma-Texas Trust
U. S. Radiator, Pfd.
Washington & Canonsburg
Common
Prior Preferred
Minnesota & Ontario
'
Norris E. Moore has become
Baird & Reuss,
New York City,
members of the New York Stock
Inc.
Preferred
!
Exchange
Norris E. Moore Is
Gisholt Co. Interesting
Gisholt: Machine
Preferred
United Utilities
Gas
Candy
.
upon
FASHION PARK, Inc.
Natural
Toronto.
& Co.
toward
Southwest
anniversary of
other .differences
Common
Detroit
*
•
Federal Water Service
Jefferson Lake
Elastic Stop Nut
1915
Street, New York 5-
Bell
Their
lead
Spg. Brook W.S.Pfd.
Ohio Match
Davis
W.
and
conclusively
pretty
(Continued on page 1093)
which
Corp. Pfd.
Spokane IntTRy. Esc. Recpts.
years,
association
chat Dr. Conant is a little
Regarding
Bakeries, Pfd.
Munds, Wins-
their
4
peacefully inclined nations must
be willing to accept responsibility
for
this
task, adding, however,
Y.
1 1
s e
exists
flict, Mr. Hull said that those of
political character should be
As to the means for restraining a
submitted to agencies for settle¬
"aggressors and nations seeking by
force
their
own
purposes,
the ment by "discussion, negotiation,
and
good offices,"
Secretary
explained
that
the conciliation
.
.
oreene and
s
City, members of the New
Stock Exchange, are cele¬
Mr. Hull stated^
to use force, if intensively by this and other gov¬
peace
Teletype NY 1-2361
Laird,
Meeds
an
tional Interests,"
Broadway, N. Y. 5, N. Y.
REctor 2-7634
York
,,
Into
120
associated
York
12,
the
the
willingness of the cooperating nations to use force, if necessary to
keep the peace."
>.
1
"
"""
Speaking on "Our Foreign Policy in the Framework of Our Na¬
Put Your Idle Dollars
C. E. de Wiilers & Co.
He
formerly
partment.
Myrick
A
up
Mr.
.-4"'
shows
today
LISTINGS
SHEETS"
un¬
derwriting de¬
of trust
breaking
estates,"
radio address on Sept.
organized" system of international cooperation with
maintenance of peace as its paramount objective, "based upon
..
and
sales
Secretary of State Cordell Hull, in a
called for
"TIIE
capacity in the
inheritance and gift
effective
Organized Internal'! Go-operation
Keep Peace—By Force, If Necessary
To
1-1843
OUR
IN
& Co., 115 Broadway, New
Favors
Telephone: WHitehall 3-1223
SEE
in
body
"The tax situation which
amounts
Street, New York 5
Bell
Myrick
\-
».
from now.
course, there's
H. G. BRUMS & CO.
20 Pine
S.
funds
said:',
Julian
and war takes astronomical
of money," Mr. Myrick
won,
Preferred
&
.
taxes and the
of
$100,000
for
his family ten
Lionel Corp.
ly
net
a
estate
1952
6s,
Stock
of the New York
for a
calls
Conant
(by constitutional
methods) all property once a gen¬
eration" and would "demand real¬
to
leave
Indiana Limestone
Dr.
.
Rails and Industrials
&
Moseley
executive
an
'confiscate
to
on
order
$16,300
W. L. Douglas Shoe
is over."'
S.
post-war "American Radical" who
would "be resolute in his demand
earn
$85,000 a year
and
war
which
in
man
a
no
F.
become
article
income, and
New York 5
be
may
Taking issue with a magazine
by Dr. James B. Conant,
President of Harvard University,
today's
under
York Curb Exchange
this
that
writers
there
that
misunderstanding whatever when
Under¬
Life
so
with
has
Co., 14 Wall St., New York City,
about
now
estate, life insurance, or other
real
Chart ered
N. Y. Curb Exchange
right
thinking
going to leave a fair
competence
for
your
family—
whether
through stocks, bonds,
guests of
Boston
the
start
how you are
y
Chapter of
Preferred
New
a
members,
300
and
Members
d
s
r
pointed out to
Preferred
31 Nassau Street
'
Declaring that "there can be no denying the right to tax and to
heavily in time of national urgency and for the purpose of raising
necessary revenue," but questioning "any tax which is levied for
the sole purpose of social reform or which in effect would deny to a
widow the right to live in security as a direct result of her husband's
6s 1952
on
Warns
Here;
tax
Interstate Power
♦Traded
associated
was
N. Y. 5, N. Y.
Teletype N.
Already' Are
Radicals"
Davis
W.
Exchange,
Total Earnings To Leave $100,000 In
10 Years
P']"'
"American
Harold
members
Underwriters of the Future
Baltimore Stock Exchange
WOrth 2-4230
Bell
''
Conant's
Says
Mitchell & Company
120 Broadway,
TAXES DENY
SAYS
OFFICIAL
LIFE
FAMILY SECURITY
Buy War Bonds!
Members
Actual Markets in
The "American Radical"
BACK SALERNO!
1st 5s, 1932
Bought—Sold—Quoted
York Corrugating
SIMONS, UNBURN & CO.
ATLANTIC INVESTING
25 Broad St., New York 4, N.
HAnover
2-0600
Tele.
Y.
NY 1-210
T. J. FEIBLEMAN & CO.
CORPORATION
Members New York Stock Exchange
67
WALL
ST., NEW YORK 5,
Telephone—-BOwling
Green
Members
N. Y.
9-3000
New
Orleans
41 Broad Street
BOwling Green 9-4433
Stock
Exchange
New York 4
Tele. NY 1-493
Volume
Number 4212
158
The
THE COMMERCIAL & FINANCIAL CHRONICLE,
1087
COMMERCIAL and
'
i': 'a-
FINANCIAL
CHRONICLE
Reg. U. S. Patent Office
t
William
B.
....
25
i
Company
■
'
\
Editor and Publisher
■
William
William
Dana
D.
Public
Cons. Elec. & Gas
.
[i.
Northern Utilities
week
a
Offices:.-■Chicago?-In charge of
Fred H.
Gray, Western Representative,
Field Building (Telephone State 0613).
London—Edwards & Smith, 1 Drapers'
Reentered
;
/.">
William
by
B.
1942, at the post office at New
York, N. Y„ under the Act of March
3, 1879.
' t;
Subscriptions in United States and
Possessions, $26.00 per year; in Dominion
Canada, $27.50 per year;
Central
New
York
Board of Trade Bldg.
CHICAGO 4
nomics at the
Chase
Walter
Spain,
Mexico
and
Cuba, $29.50
per year;
Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
Current
Monthly Earnings Record—Mth,. .$20 yr.
State & Municipal Compendium—
y',' 'Semi-Annual
.......$20 yr.
NOTE—On account of the fluctuations
In the rate of exchange, remittances for
foreign subscriptions and advertisements
must be.made in New York funds.
stalemate
resistance
level
not
clears.
ilege
to
and
a
pic¬
large number of comments have
Real
Estate
has
for the past twelve years in:
Participations
Mortgage
v-'?-'/-
of
v
Bankers Trust Company !
awaken any. enthusiasm.
v::.r Trust Co. ' ^jr;l
City Bank Farmers Trust Co.
,
Guaranty Trust Co.
.
v:-;
all
other
local
Call
J
stocks
issues of the >'■(
banks
for
us
quotations
Newburger, Loeb & Co
40 Wall
New
St., N.Y. 5
Bell
'
Stock ' Exchange
York
WHiteball4-6330
Teletype
NY
1-2033
*
*i|s
'
;,
:
'V;
there
;c
\
given in
'
to
poke
;
as
a
whole.
House Of
Morgan And
Morgan Stanley Not
Related, SEC Decides
■'?'
❖
*
•
.
#
;
#
.
Trust
39
had
to allow the bank to act
refused
as
this
trustee
for bond issues floated by
the in¬
banking form. Author¬
such matters was held by
this
column
column
versal
of
Future
article
Interest
opinion,
my
went
on
felt .that
a
re¬
carrying the averages
as low as
130, would
be
witnessed.
"r\,#
market
news.
1
one
the
the
Rates"
^Wickwire Spencer Steel
and should be
all
"The
on
^Farnsworth Television
subject.
It is
worth reading
and rereading
many
times,
to
*
is,
in
of the most im¬
f
officers,
aspirants
the
bank
Editor,
under
:
I that
the
Trust
Inden•
community of interest
a
%v
Rowe
New
i 1 y,
;
has
*
found
I Morgan Stanley & Co., Inc., which
terested.
}
was
{
to
I
any
|
ship. Even after this the question
later changed from corporate
firm
status,-' thus eliminating
question about stock owner-
I of a "father and son" relationship
| was raised.
The death of J. P.
| Morgan, head of the bank, several
ago, is believed to have
I influenced the SEC in its recent
| months
same
electrifying
about 136 to 138
(Continued
|
.
.
f
-
.>■'-;V:':V:
now
| Air
(j. g.)
i (I)].
with
Joseph E. Masek is
Station
Island
Lt.
at
Charles
Quonset
[Platoon
Masek
E.
rediscount
control
cre¬
note-
currency
news
disin¬
so,
but be¬
to lose all
page
1104)
severe
restrictions
on
was
Fuller
NTS
formerly
Co.
Minneapolis.
Dealers
Assn.
s
Broadway, New York, N. Y.
ft Ec tor 2-5288
System
Teletype,
N.
Y. ,1-5:480
BACK THE ATTACK
|/:|' Buyv.
"
-
against unauthorized
dealings with their re¬
spective governments.
source
or
cause
of
is not remedied
by
readjustments. There is
remedy for it but devaluation
no
or
cause
repudiation.
A.
The chief
international
by na¬
Copies of these interesting
obtaruing
firm
to meet
rev-
of
Savoy Plaza 3-6s, 1956, W.S.
Frank C.Masterson & Co.
Members
64
may
upon
be
had
request.
/.
from
>
the
.
LUCKHURST & CO
Security Dealers Ass'n
"
C. E.
N. Y. 4
Unterberg & Co.
Broadway, New York 6, N. Y.
<7
.
Teletype NY 1-1666
Exchange
NEW YORK 5
HAnover 2-9470
North Penn Gas Co.
■
5 Vis of 1957
:
Bought-—Sold—Quoted
Telephone BOwling Green 9-3565
•
Curb
5s of 19.57 & 60
Company;
Members New York Security Dealers- Assn.
61
York
*
lum
,
New
WALL ST.
•Teletype NY 1-1140
National Radiator
.
2s, 1955
Atlantic City Gas Co.
Chicago 6* South'n
Tele. 1-1825
New York A. C.
National Radiator
,
Bank & Trust Co.
Midcontinent
60 Broad St.
Terminals & Transportation Com.
Co.; Ill Broadway, New York
National
Members N. Y.
Great American Industries
current
levels
according to
bulletins prepared by J. F. Reilly
circulars
Braniff
Commonwsaltli Gas
6s, 1948 and Common
at
tional governments as a means of
currency
:
Water, Farnsworth
Television, and Wickwire Spencer
Steel offer interesting situations
City.
banks
COrtlandt 7-6190
Bell System Teletype NY 1-84
;
M.
Interesting Situations
&
central
170 Broadway
Federal
the
of
Est. 1926
%RlOb
■
monetary instabilization has been
use
War Bonds
SAKOLSKI,
The City College,
New York City.
September 2, 1943.
•
"
or
jurisdiction
financial
this
place
within its
\ Public National
Point,
9,
Security
go one
the local
national central banks
Northeast
stationed at the U. S. Naval
I Rhode
111
York
T
economic
'
Lt. Masek In R. I.
Lt.
of'
tem, but it would have to
step
further.
It • would
-
I
!
.
on
bank
having the exclusive right to
AIR LINES
t—BMW—■
■
or
yond that it seemed
community of
| interest no longer exists.
»
market
Yes, it rallied from
| declaration that the
..
to discount the
thing twice, this
the
ternational
ex¬
(2) 'An in¬
or
Sys¬
had
never
international
issues «in all the leading countries.
of the
market
on
change bperations
Ther latter
days the to our ownplan wotiid be similar
Federal Reserve
seven
•.
exr
strictions
ate * and
>
} isted, the investment banking
) business was being conducted by
/■
Request
on
Members
John J.
and
corporation officers interested in
(Continued on page 1098)
a m
„
^: '
#
Italy, the weak sister
Axis, has given up. But
? I; When the SEC first. contended following the tendency of the
SEC
Analyses
J. F. Reilly & Co.
large
officer
-
Salcolski Says International Monetary
I Stabilization Can Be Obtained In
.-.v."
;
&
In the last
ity over
the
1-1203
^Federal Water
s
of
Bell
'Y'f\
down to
vestment
turs '• Act
Teletype NY
Botany Worsted
every
record with the
banking firm of Morgan
Stanley & Co., is no longer pres¬
ent, the Commission has informed
the bank.
>
•,
< >
V:
On the strength of its former
SEC
,
Last week and the week be¬
fore
vestment
the
■
Broadway, New York 6, N. Y.
HAnover 2-8970
opinion that The Commercial and Financial Chronicle:
the Dow
I wish' to compliment you on your editorial in the August 26th
averages, then about
137, would crawl up to about issue regarding the Treasury's international monetary stabilization
The
community v of
interest 138 to the
accompaniment of plan. Absolute or even moderate international monetary stabilization
which the Securities and Exchange
can be obtained only in two ways, viz. (1) universal gold (or other
a
general feeling of nascent
Commission for a long time has
metallic/-standard > accompanied^
claimed to exist between J. P. optimism.
But instead of go¬ by a-free and uninterrupted gold enue deficits. Unlike other causes
Morgan & Co., Inc., and the in¬ ing forward from that
point, market and entire absence of re¬ of instability and disequilibrium,
contention
inc.
:
of : it
study
bank
Co., Cincinnati
Anderson's
Dr.
.
,
v
Members Neuf York Security Dealers
Assn.
studied by all
JOHN J. ROWE,
isolated
manage
Information
not agree
ulate
were
in subsequent issues.
through fractionally to new
highs but in no case do these
performances carry over well
enough to either attract new
buyers or affect the market
v )
"
Members
*
and
QUOTED
-
paragraph, but
President, The Fifth Third Union
•
and
'
Here
SOLD
-
Statistical
read
eminent authority on the subject.
since last week has failed to
y
Central Hanover Bank &
4-6551
I. J. GOLDWATER & CO.
the essay stim¬
The averages are again be¬ these columns on Sept. 2 and
Sept.
ginning to nibble at the 139- 9; fmore are given below and
140 (Dow) range, but so far others that cannot be accommo¬
the small advance
registered dated' in this issue will appear
Securities
specialized
BOUGHT
Complete
the subject
has
Readers
may
on
priv¬
with
Some of the letters
Oitr
it
been received regarding the views
conclusions
drawn
by this
By WALTER WHYTE
Department
article,
which
and
-
WHitehall
study.
govern the move¬
Since publication of the
advise
"hands off" until market
ture
been my
ment of interest rates.
good
a
C ontinue
omen,
portant discussions
inevitably must
old
at
Securities Dept.
Street, New York
REAL ESTATE SECURITIES
the
of the fundamental factors which
Publications
Wall
of ALL COMPANIES and
matters, discussed this important
subject objectively and in light
Bank and Quotation Record—Mth. $20 yr.
,
of
thought
Obsolete
our
CERTIFICATES
;
City of New York, presented an ex¬
tremely profound analysis of the probable future trend of interest
rates.
The author, who is recognized as a
leading international
authority on fiscal and monetary^
Whyte
South and
Bank
will get
you
TITLE Co.
University of California and former economist of the
National
that you
supposedly
Telephone:
; In his article which appeared in the "Chronicle" of Aug. 26, cap¬
tioned as above, Benjamin M. Anderson,
Ph.D., Professor of Eco¬
Tomorrow's Markets
EVEN
than
Obsolete
'
•
Exchange
Borrowing Policy
more
that
99
With Special Reference To The Treasury's
DIgby 4-8640
' V r Harrison 2075
Teletype NY 1-832, 834
Teletype CG 129
America,
Other
r
The Future Of Interest Rates
Security Dealers Ass'n
Broadway
NEW YORK 4
■
ruary 25,
of
32
:
Teletype NY 1-5
Members New York Stock
or
are
Security by calling
Company
Dana
second-class, matter Feb¬
as
!
STRAUSS BROS.
Members
Other
London, E.C.
ODDS
for
25 Broad Street, New York
Telephone HAnover 2-4300
Peoples Lt. & Pwr.
and every Monday.
;
(complete statistical issue—market quo¬
tation
records,
corporation, '-: banking,
clearings, state and city news, etc.)
Copyright .1943
:
•.
every Thursday /•;:ir
news and
advertising issue)
Gardens,
ODDS
The
&
encer
.
(general
•'
Utility and Industrial
EVEN
Business? Manager
Published twice
AND COMPANY
PREFERRED STOCKS
•.:
Thursday, September 16, 1943
■'
B. S.
President
Seibert,
Riggst
offerings of
High Grade
^
■,
,
_
5
interested in
are
;
^
3-3341
Herbert D. Seibert,
..
!■
We
V
-
Spruce Street, New. York 8
' 'V'BEekvian
i
Vv'w
Publishers
■■
v
Dana
if
Associated Elec.
;
'
Hoit,R§se&Trsster
Established
Members N.
74
1914
YJ Security
Dealers Assn.
Trinity Place, New York 6, N. Y.
Telephone:
Teletype:
BOwling Green 9-7400
NY 1-375
CRAtGMYLE, PINNEY&CO.
♦
Members
New
York
Stock
Exchange
•vO^E WALL STREET, NEW
Telephone
WHitehall
YORK 6
4-5290
FINANCIAL CHRONICLE
THE COMMERCIAL &
1088
AMERICAN TURF ASSOCIATION
Attractive New York
LONG BELL
Stock
f11 LUMBER
City Hotel Bonds
ff|
N.
Members
Dealers Ass'n
Security
Y.
Teletype NY
Detroit
to
1-376-377
Buffalo
v
Pittsburgh
-
-
■
,
,
BANKERS BOND &
m
:
7
: n
Cleveland
St. Louis
7
,'
,-7*
Incorporated
-'
New
York
Security Dealers Association
18th FLOOR,
Broad Street, New York 4
41
LOUISVILLE, KENTUCKY
,,
Distance 238-9
Long
HAnover 2-2100
!
SecuAitiei
|
part of August and the first two
_I
Third Series
Eighth Series
'Since 1893'
Fourteenth Series
Series
Sixteenth
Exchange
a
Some
177,773.27
130,237.63
159,714.39
157,821.41
Twelfth Series
LOS ANGELES
Members Los Angeles Stock
149,464.59
.
Series
Ninth
_____________
million
Series
Ninth
Contact and .7
—
Sixteenth Series
General Utility Man
_______——:
—
he
tact
desires position as con¬
man
in New Jersey or
New
York
office
believe
appraisals have been
nade by independent appraisers
as
to
the
present
estimated
liquidating value of the collateral
Salesman,
ence,
or
in inside
Eighth Series
Chronicle, 25 Spruce
St;, New York, N. Y.
—
Series
Ninth
Twelfth
___.
Series
Fourteenth Series
____________—
—i
Sixteenth Series
.
shares (approx.
10,000 out of total of 18,000)
in highly reputable old
estab¬
lished
Paint Company.
Plant
and
head
office
Pittsburgh.
Manufacturing well-known prod¬
ucts
having wide present and
post-war market potentialities.
Plant capacity permits doubling
present yearly sales approach¬
ing $1,000,000. Owner desires
Controlling
to
retire from all business activ¬
Real opportunity
ities. 1
for
any
one
prepared to invest approxi¬
mately $200,000.
Box W 15,
Commercial
The
Chronicle,
25
Financial
&
Spruce
St., New
York, N. Y.
that
conclusive
;eem
issues
these
evels
at
are
900
960
1,000
980
interesting
is
490
630
440
500
per
per
irices," and that the continued im¬
provement in general real estate
must
7';
1,000
900
7
$1,000
960
1,000
638.00 per
per
779.00 per
537.00 per
:
980
Real
Estate
bond which re¬
securities
of
who
future
;
of
the
MARKETS IN
after-war
paign.
would
k
if
SHASKAN & CO.
Members New York Curb Exchange "
40 EXCHANGE PL., N .Y.
•
Bell Teletype
Dlgby 4-4950
NY 1-953
and developments
will
tunity
after
now! Oppor¬
immediately
of
hostilities in
cessation
Europe
to
interest
in
and
occur
acquire
of
one
controlling
the foremost
profitably established cloak
and suit chains in Great Britain.
profits for past ten
$250,000 per annum.
Average
years
Ample
scope
with
pansion
modern
more
American
for greater
introduction
methods
ex¬
of
and
frock merchandise.
Inquiries only entertained from
principals
«
Please write Box 90 F
W.
H- SMITH &
SON LTD.
lines but
a
thorough investigation
and
thereby would verify the facts.
whole financial
H. LANE YOUNG,
setup of the country; it would bet¬
President* the Citizens
serve
System
strengthen
enable
the
them
London, W. C. 2
England
in Washington
penditures
and
last
of
but
to
finance
ex¬
and Southern National
Government,
Bank, Atlanta, Ga.
not least, save the September 2, 1943.
the
Sold
—
Dr.
in New York
—
Quoted
Pepper
Republic Insurance
in
current
the
SoVcstem Pub. Serv. Com. & Pfd.
Dallas Ry. & Terminal
All Texas Utility
Check
vs
on
6% 1951
Preferred Stocks
Southwestern Securities
cam¬
Normally at least a sizable
of the foregoing total
be
seeking
investment
RAUSCHER, PIERCE & CO.
DALLAS, TEXAS
Houston
San Antonio
-
participation of insurance com7
panies
assumes even
portions,
in
there
is
difficulty
why
understanding
PHILADELPHIA
larger pro¬
no
invest- ;
of
these
days,
and
Camden
financing
corporate
reply
invari¬
Fire Insurance
ably:
"Why talk about that.. We've all
got a real job to do for the next
few
weeks.
that
When
task
is
not
in
sufficient volume
COMMON
to
BUCKLEY BROTHERS
Members Philadelphia
but
only
in
dribs
(Continued on page 1091)
and
Stock Exchange
Members New York Stock Exchange
1529
Philadelphia 2, Pa.
Walnut St.,
Bell Teletype
—•
PH 265
N. Y. DI 4-1527
Phila. RIT 4488
Donald N. Gilbert & Co.
•
Opens Branch In N. Y. C.
Donald N. Gilbert &
Tower
have
Co., State
Building, Syracuse, N. Y.,
opened a branch office in
City at 435 East 52nd
New York
Street.
The
Pennsylvania Eleetric's 30-year
3y8s are still to be had, dealers
drabs.
7777
is
disturb the market.
report,
MARKETS
TRADING
when somebody raises the ques¬
There is just one thing that the powers-that-be
members of the Federal Re¬
Bought
one
completed, then we'll see what
toward helping to rectify many
the corporate market looks like
things. This is to cease subsidizing Federal lending agencies operat¬
and go back to the regular grind."
ing in competition with private financial institutions.
A
The doing of this would save the Government an enoromus
Recent Issues Mixed
amount of present unnecessary expense. It would relieve the Treasury
; .With the seasoned market more
Department of doing an enormous^- ————-————
than holding its own in the cur¬
amount of financing; it would give Federal Deposit Insurance Corrent hiatus, most of the issues
the country banks of this country, poration an enormous headache
brought to market in the last
that is
some 15,000 strong, an opportunity
coming to them unless
month or six weeks have been
to live and continue commercial something is done to protect the
doing as well as might be ex¬
banking business without finding small banks of the country now
pected.
it absolutely necessary to install
insured by the Deposit Corpora¬
There are still some Northern
systems of pernicious service and
tion.
Indiana Public Service 3^s to
-'.7',
exchange charges; it would en¬
be had around, hut the supply
This is a' big order in a few
courage the country banks to be¬
ter
Strand House,
across,
performance
could do that would go a long way
come
DALLAS
ment bankers shake their heads
changes to nearly
y
Milwaukee
Boston
When it is considered that the
Members New York Stock Exchange
collateral
$3,275,800 bonds but if isis reduced $432,000 to $2,843,-
77
and
through ordinary channels.
is about $2,273,400 applic¬
CHICAGO
being,
group
portion
k
INCORPORATED
Southern Union Gas Common
bonds
SECURITIES
Lending Agencies Competing With Banks
prospects
are
of banks, naturally
and most numerous of
any
savings institutions in the
country, are pledged to absorb no
less than $600,000,000 of the new
war
Advocates Cessation Of Subsidies To FederaS
Opportunity
call
$15,000,000,000
tion
Consider
company
funds
bank
need only cite the
REAL ESTATE
Estimate" per re¬
outstanding bond.
The
value
TRADING
ac.ALLYNAOTcomf.any
of the extent to
insurance
or have been, set aside to as¬
sist in putting the Treasury's
;
This
able to
me
up
New York
a measure
savings
ap¬
not
Value
800, the ratio
standing
State. /
$3,275,000 publicly held bonds and
considerably increase the "Liqui¬
today
is
BONDS
which affords consid¬
of savings banks
Available Fund will at
approximately 50 cents on the
dollar retire $432,000 bonds of the
estimated
very
'
which
preciation possibilities.
$216,000
maining
market
bond
a manner
.As
this
diversifica¬
desire
of collateral and
funds
institutional
terests.
offer good yields and are
worthy of consideration for those
tion
RAILROAD
erable satisfaction to banking in¬
type
investors
UTILITY
INDUSTRIAL
for invest¬
ment
in
the
Treasury's
huge
Third War Loan Drive, for the
next fortnight at least, the corpo¬
in
be lost
dating
COLORADO
1,
"earmarked"
largely
rate
mains outstanding.
sight of, taking the Third
Series as an example, is that the
Trustees,
DENVER
the largest
that
factor
their
MUNICIPAL
Liquidating
future
Swan,
REPORT
With
Value Estimates.
Another
Henry
REPORTER'S
:onditions must have the effect of
ncreasing
'■
PUBLIC
the maxi¬
665.00 per
980
$800
note
748.00 per
900
960
1,000
present
under-
•.'I;;':
OUR
esti¬
$694.00 per $1,000
1,000
per
to
percentage
Liquidating Value Estimate
550 per
j;In every case the present day
Liquidating
Value Estimate is
considerably more than the maxi¬
mum
acceptable
tender
price
which is a few points above the
:urrent market bids.
It would
Exceptional
War Opportunity
of
of
of
of
acceptable tender price.
mum
per
and
McCarthy
STREET
STOUT
1531
mate and its relation to
;
Post
it
liquidating
$490 per $1,000
Series
Third
15, Commercial & Fi¬
nancial
the
Tender Price
job making himself generally
useful.
Highest references.
Box E
that
vised
experi¬
years'
18
:jr
urged to send
are
The Denver & Rio Grande Western Railroad Co.
follows:
securing each Series of Bonds. We
asking for tenders,
bondholders have been ad¬
In the letters
♦7-.;'
above
of 1,000
:
Series
Wilson
'7
accept¬
550.00 per present face amount
490.00 per present face amount
630.00 per present face amount
440.00 per present face amount
500.00 per present face amount
Series
Twelfth
■;;"y4v { •'«
the
of $1,000
Series
Fourteenth
/ \
of
to
the undersigned.
This information is desired for com¬
pilation of list of bondholders requested by I.C.C. in con¬
nection with the proposed reorganization plan.
of Direc¬
maximum
$490.00 per present face amount
-A_J
Series
Eighth
The Board
set
able prices as
these six series.
Third
have
tors
vr-v;
bonds
addresses, together with amounts and issues held
and
names
''v.
of
previous prorata dis¬
tributions.
$991,387.71 (nearly a
applicable
to
dollars)
■'/,{'
7;
Holders
have been
issues
the
of
reduced by
of
total
-■V'V
$216,376.42^>
_____
Western-Railway Co.
Denver & Rio Grande R. R. Co.
weeks in Septem¬
ber, Prudence-Bonds Corporation sent notices to bondholders of
different Series Issues stating the amount of the "Available Fund"
to be used as a sinking fund for the purchase and retirement of
bonds. The amount of the Available Funds are listed as follows:
In the latter
Wyeth & Co.
Rio Grande
-I Rio Grande Junction Railway Co.-
Bonds
Calls For Tenders Of Various Series
Bell Teletype LS 180
1
Denver & Rio Grande Western R. R. Co.
PRUDENCE-BONDS CORPORATION
Pacific 6oaU'
INCORPORATED
KENTUCKY HOME LIFE BLDG.
.
-
Real Estate Securities
NEW YORK
'
.
^
Members
Wires
v
'
•
■
Private
7->
Seligman, Lubetkin & Co.
HA 2-2400
Trinity Place, N. Y. 6
74
7-"
t..-'7-v-:
.
Bought and Sold
.
Complete reports sent upon request
Troster,Currie & Summers
Thursday, September 16, 1943
•
Mrs.
firm
Alice
also
F.
announces
Gilbert
is
that
now
a
partner and that it is now regis¬
tered with the Securities and Ex¬
change Commission as an invest¬
ment adviser.
ii,*Jjr-ln*»iK>. LnWeMW)'«M"i
99,t*ttVt mHHfnt VdMMdlfcWitiUM,
Volume
Number 4212
158
Vfld*
»u:vtr<
Y«*I W* HlifvtfUftifM*V
THE COMMERCIAL & FINANCIAL CHRONICLE
•«>
1089
Denver & Rio Grande
Bond Brokers
Cons. 4s, 1936
Circular
on
request
International
Vilas & Hickey
; V
; ;. i
Members New
;y
York
Stock Exchange
49 WalTStreet
Hydro Electric
'
y,
pflugfelder, bampton & rust
New York 5, N. Y.
Members
-
Telephone: IIAnover 2-7900
61
Teletype: NY 1-911
-
Broadway
Co., 115 Broadway,
We
'
[
/
:
.
'fj
,
'
;
,
do not subscribe to the defeatist
point of view which holds
decline in railroad earnings is inevitable,
that the market will appraise
railrf
-that at least
road
40 to
a
credit
in
the
50%
post-war
era
lower than in the period, 1938-40,
or,
stated
the
in
another
railroads
tually
doomed
low estate.
there
We of
are
essen¬
needs
of 30
40
to
million
po¬
to
acres
cultivation, the rebuilding of
our
civilian production and the filling
of the voids created by the war,
tional—can
suggest
as
we
have tried to point out, such fac¬
tors
are
more
than offset
by
constructive
numerous
such
factors,
as:
in
that
traffic
general
volume
gradual.
lieves
the
decline
well
may
be
Mr. Middleton also be¬
once
have
we
returned
to
normal peacetime business year,
future
railroad
freight volume
a
(a) Improved competitive status
industry;
"
(b) Improved
effi¬
operating
ciency of the railroads;
(c) Post-war traffic outlook not
of the railroad
well parallel the rise and fall
may
of
national income.
our
outlook with those of several ad¬
mitted authorities.
pear
It may
be of interest to inves¬
tors at this juncture to
our
own
ideas
supplement
the
on
post-war
Mr. P. Harvey
Middleton, Executive Vice-Presi¬
that if the
line roads
"Transportation," points out that
traffic volume (freight ton miles
particularly) has paralleled our
credit.
short
to
$119.7 billion in
billion
ton
estimated
1942, and $140.0
in
1943, freight
miles by all forms of trans¬
portation rose from 540 billion to
942 billion, and 1,050 billion esti¬
mated for the same period and
years,
resnectively.
'
have accumulated
in
the
of
event
a
roads have , al¬
ready accumulated sufficient cash
credit
risen from $70.8 billion in 1939 to
Even
war,
Whereas
national income has
will
sufficient cash to reestablish their
national income from 1939 to 1943.
our
last
long enough, most of the border¬
Railway Business As¬
sociation, in his recent monograph,
dent of the
should
war
many
justify
the
hope
that
be restored.
can
their
Addition-
distributed all
the world and
over
substantial
proportion of such
forces is likely to be retained in
these areas to enforce peace. These
a
soldiers will need
a
of transportation
have
that
liens
In
fact,
we
think that peacetime earnings will
be sufficiently large to permit of
continued
in debt
progress
reduction, although of necessity at
less rapid rate.
The study
itself, which is avail¬
able to customers without charge
but at a cost of $5 to others, con¬
tains
four
Co.
says,
tables
with
financial
intended, Goodbody &
to "indicate to the in-
continued
on page
1092)
of
part
wards
Mortgage Bonds
Guaranteed
and
Special
Stocks
STROUD & CO.
INCORPORATED
South Broad Street
PHILADELPHIA
PH 296 and 297
We
.'>*
recommend
.
9
,120 Broadway
,
V''"C ^ ^
the
NEW
purchase
of
War
YORK
Bonds
RAILROADS
Some
Thoughts
on
Circular
In
a
Pacific
of
148 State St.,
Tel. CAP.
the
WALL
1
late
last
total
a
bondholders
as
of
WHitehall
below
the
levels
months
a
r
With this
in view of
the
position is
materially stronger than it was a
year ago, there appears to be lit¬
tle question but that the court
will
tribution.
the
requested
items
Cash
as
dis¬
of the
end of June amounted to
25,786,working capital of
$10,426,413 was almost double the
figure of June 30, f942.
and
5s
1934
4s
1949
net
5s
to
1962
1938
in
Iowa
Central 4s
1951
Post-War Prospects
on
will
Des
Moines &
Fort
Dodge 4s 1935
Frederic H. Hatch & Co.
Incorporated
Wall Street
63
Bell
New York
5, N. Y.
Teletype NY 1-897
4s
tion
(the plan is
before the
now
District Court with extended liti¬
gation expected
even
approves
it this fall)
might well
result
final
in
elimination
of
all
interest accruals ort the Terminal
& Unifying 5s.
Including pledged
bonds these accruals
$8,638,400.
now
ceive $302
$433
in
in
be
met
preferred and
new
new
with
common,
Announcement of the request
be current as to in¬
Mortgage bonds for interest payments stimulated
have been current throughout the renewed interest in the various
reorganization. The payment will Cotton Belt bond issues and fairly
amount to $140 per bond.
Pay¬ sharp price gains were registered.
ments on the Terminal & Unifying Despite these recent
advances in
5s will amount to $125 per bond, a
generally
desultory
railroad
bringing them up to date through bond market, railroad, bond men
July 1, 1939.
Unpaid accumula¬ still consider the bonds attractive
tions to July 1, 1943 will then be —the Second
Mortgage 4s on an
the
further likelihood that the pre¬
ferred stock allocation will be in¬
due
to
reduction
in
in¬
terest claims of the senior bonds.
Attractive Situations
Blair
Wall
F.- Claybaugh
Street,
members
Stock
New
of
the
Co.,
72
City,
Philadelphia
Exchange, have prepared
interesting circulars
Des
&
York
Moines
&
Ft. Dodge,
on
Southern
Railway
amount
Additional accruals
on
(4s of 1991 and common), Utica &
Mohawk Valley Railway
(4^s of
1941), and Consolidated Dearborn
(common),
which
the
firm
be¬
lieves offer attractive possibilities
at current levels.
Copies of these
circulars may be had upon
request
from Blair F.
"
!•?
'
i
Claybaugh & Co.
\}ki
-
•
%fyr V*'
>
•
•
Virginian j
investment basis and the Terminal
&
will
ably be increased moderately. The
Generals are also scheduled to re¬
if the court
to
The balance of
claim
The $182 of
Second 4s originally allocated
to the General 5s will also
prob¬
lations to July 1, 1943 of $600
Continuing delays in reorganiza¬
The First
The most junior
mortgage issue, the General & Re-
en¬
Second
preferred stock.
creased
funding 5s, will receive $75 per
bond, leaving them with accumu¬
presumably
reduced to $400.
old
new
tion.
bonds
Terminal
Central 5s
securities in eventual reorganiza¬
these
on
the
income
The
satisfy the claim of the old Sec¬
the
the Generals aggregate
$18,321,300 and most of this will ob¬
viously have to be satisfied in new
here
of
ond 4s for interest.
payments
contemplated
off all arrears on the 2nd
The
claim
Iowa
is expect¬
some improve¬
fact that the treasury
approve
1932
July
the excellent results of
and
6s
Minneapolis & St. Louis
Minneapolis & St. Louis
1942 results.
earned 2.88 times.
on an
increased through reallocation of
new
securities no longer needed
(in reorganization)
year
old fixed charges
Mortgage 4s
giving the
Minneapolis & St. Louis
Minneapolis & St. Louis
year
ed to show at least
Second
Terminal 5s $467 in the new Sec¬
ond 4s but this will
probably be
ST. LOUIS RAILROAD
week
through
above
Moreover, the full
background,
Teletype: NY 1-2050
MINNEAPOLIS &
but the cumulative total of net for
over
3-3450
consider it necessary as a
protec¬
tion for the future to put the new
will be met in this new
mortgage.
The plan contemplates
the heavy tax burden
last year when
GOi
STREET, NEW YORK 5
tire
interest.
of
Teletype BS 259
speculative purposes. Cotton Belt
the
only
reorganization
in
which the
Commission did not
Eu¬
The company's earnings in recent
months have been running some¬
ago due to
Boston, Mass.
:
basis—interest is fixed.
$4,400,637
back
:
is
to¬
petition filed iri
a
0425
issues.
justified.
Court
to distribute
were
same
LEROY A. STRASBURGER &
by the trustee asking permission
ment
Registered Form
Inquiries Invited
war
optimism
of
Request.
prevailing levels for coupon bonds
join the
probable fall interest
was the St. Louis South¬
the District
what
Plan sent upon
substantial concessions below
at
of
terest.
Serial Obligations
-
the
duration
western, with
to
Railroad
RAILROAD BONDS
senior
in full
The most recent road to
payers
St. Louis, San Francisco
supply several lots of
from
Equipment Trust Certificates
.
on
up
intermediate
recent
ropean war proves
will pay
,
of
the
the
ranks
can
the
if
even
Toronto
begun to get
4s, 1989 through July 1, 1943 and
Railroad Securities
Teletype
of
be facing
tensification
1-395
Montreal
point
country where con¬
tinuing traffic and earnings ben¬
139
123
has
Teletype NY
New York
Report of Reorganization
We
or
period of
more active direct participation in
war earnings.
In this connection
it is being pointed out that a large
proporton of the reorganization
mileage is located in the western
may
still well
some
at ?,the
paid
holders
seven
facilities where-
_
been
the
believed.
152 WILLIAM St., N. Y. 5 HAnover 2-0980
have<S>
arrived,
accumulations
bonds
so
have
arrive,
was
statistics
sizable amount
railroads
road earnings will be greater than
a
Additionally Mr. Middleton sug¬
gests that our armed forces will be
tion
than
Moreover,
instances the reorganiza¬
ally, it is our judgment that the
post-war outlook is such that rail¬
generally
HART SMITH & CO.
in the past.
efits will be derived from the in¬
Another leading transportation
authority recently consulted, ex¬
pects railroad traffic, for a period
of at least four or five years fol¬
lowing the war, to equal if not
slightly exceed, levels of 1941.
Broadly speaking, it would ap¬
too dismal.
in many
•
on
disbursements
been made
where
the
6s, 1944
*
.
the continuing high level of
earnings and the un¬
accumulation of cash, hopes are high for even more
precedented
liberal
turn
in
Yet,
Based
shortly will
population increase,
railroad set-up which no investor
—whether individual or institu¬
ignore.
future.
tential development of new indus¬
tries (mass housing, etc.) the re¬
concede
•
Bell Teletype—NY 1-310
v
fSlL parade of interest payments
The normal
added to
course
.
New York 6
1
•
,«•
under way—at least the court requests have started in some
instances
and in other instances trustees of bondholders'
groups have an¬
nounced their intention of petitioning the courts in the
immediate
vir¬
former
factors
with to provide them with
tial material.
The above
Exchange
Railroad Securities
that
their
to
adverse
are
way,
creditwise
Stock
Bell
The following conclusions regarding the ability of the railroads
to re-establish their credit are reproduced from a
study by Pierre
R. Bretey of the Research Staff of Goodbody &
,
York
Telephone—DIgby 4-4933
Can Railroad Credit Be Re-Estab!ished?
New York City:
New
Unifying 5s and General 5s for
Corporation
We maintain net markets in:
SEABOARD AIR LINE
Collateral Trust Bonds
Consol. 6s/45 Bonds & Ctfs.
1st 4s/50 Bonds & Ctfs.
request
Ref. 4s/59 Bonds &, Ctfs.
Mclaughlin, baird & reuss
Members New York Stock Exchange
ONE
WALL STREET
NEW
1. h. rothchild &
120
TEL.
HANOVER
2,1355
.
TELETYPE NY 1-1310
co.
broadway
COrtlandt 7-0136
n.
Adams & Peck
63 Wall
specialists in rails
YORK 5
y. c.
5
Tele. NY 1-1293
Street, New York 5
BOwling Green 9-8120
Boston
Philadelphia
Tele. NY 1-724
Hartford
THE COMMERCIAL & FINANCIAL CHRONICLE
1090
HArrison
'
6432
Teletype KC 472
Trading Markets in
Comments On Inflation /
Consolidated Dearborn
Associated Electric
'
LONG-BELL LUMBER COMPANY
Debenture
3s
1954
/
»
Article By
•
,,
St. Louis Public Service
Company
GLEANER HARVESTER CORPORATION
>
Thursday, September 16, 1943 V
Class
[AVzs & 5s
Kansas
WESTERN LIGHT & TELEPHONE COMPANY
Common
A
City Public Service
Preferred
&
Ivan
Common
Portland Electric Power
'eltason, Tenenbaum, Inc.
Consolidated Dearborn
PICKERING LUMBER CORPORATION
Kansas
Baltimore Ave.
1016
Landreth
803
BERNHEIMER CO.
City, Mo.
Teletype—-SL 486
article, it states the Chronicle in¬
vites comments on Dr. Wright's
Common
Bldg.
ST. LOUIS 2, MO.
BOUGHT
SOLD
—
views, accordingly;
,
L. D. 240
COMPANY
continuing interest in
a
Landreth
Central Coal & Coke Corp.
THIRD WAR LOAN DRIVE
Dickey Clay Mfg; Co.
W.S.
Personnel
Employers Reinsur. Corp.
Kansas
City and
St.
investment firms are
Louis
devoting most of their time these days to the Third War Loan Drive.
In St. Louis a luncheon held at the Hotel Jefferson, September 9th,
formally launched the program. Great effort is being put forth to
make the Drive a success in the shortest possible time. Missouri will
Gleaner Harvester Corp.
Ore.-Amer. Lumber
of
Corp.
"BACK
ATTACK!"
THE
Baltimore
1004
KANSAS
Bell
of St. Louis and Kansas City
CITY,
MO.
Louis
KC 375
Teletype
funded
Total
Louis
Public
of
as
July
of
debt
Service
31,
St.
the
Company
$21,-
1943, was
448,312, compared with $28,841,164
a
of
tion
UNDERWRITERS
DISTRIBUTORS
'
INVESTMENT SECURITIES
DEPARTMENTS
TRADING
ACTIVE
IN
MUNICIPAL
selling
ARE
with
LOCAL
AND
due
con¬
a
98,
year
compared
$6,368,552
Income
January
1964,
1,
1959,
ago;
around
89
1,
January
Convertible
CORPORATE SECURITIES
debt
$11,185,800 First Mort¬
5s,
gage
OUR
outstanding
of
25.6%.
or
bonds, due
selling
66,
at
Collateral
March
Baltimore
KANSAS
Avenue
1964,
due
Notes,
held
privately.
ing dividends of $1 per annum,
is selling at 10, compared with
Long Distance 93
602 INSURANCE BLDG., OMAHA, NEB.
Kansas City Public Service Co.
has reduced its funded debt from
Fast
and
$4,788,331 to $2,682,824, a net re¬
duction of $2,105,507, or more than
43%
in eight months.
A dealer
Markets in all
accurate
Z
'SECURITIES /;-/f
ST. LOUIS
Direct Private
New
and
York
Wire
active
tinuation of this rate would
months. Securities of the company
have advanced sharply during the
G. H. Walker & Co.
New
York
Other
503
Stock
past
,
Exchange
L.
The
year.
First 4s
1957
as
compared with 61-63 a year
the preferred stock is quoted
32-36 versus 9-10; and the com¬
is 5-6 compared with a price
of 75c.
1, MISSOURI
Tel. Central 0838
Teletype SL 84
Mr.
W.
been
Pelham
appointed
II.
promising to discuss the
tions
"off
the
record"
Turner
has
of the
New Business Department of the
Associated
11
Press
manager
reported
matter:
"The
recalled
letter
Missouri
a
the
at
1940
declared, "We
St/X
cently
firm
SAINT LOU/5
St.
509 OUVE ST.
Bell
System
the
Teletype—-SL 80
as
a
partner of the former
of
Pierce, Turner & Co. of
He has resigned from
Salvage Section of the War
Louis.
Production
new
Board
to
this
accept
position.
and
not unfriendly
unanimously of the
opinion that in the post-war world
America should seek whatever
"We
enlightenment
seek
method.1 We should
like
on
to have
considered views about this
world when it is again at rest."
v
your
The
recalled
letter
United
state?
a
that
should
States
member of
the
become
a
world supranational
it
Would
place
United
States armed forces under control
If
favor
you
Forming
3.
to
state,
do about nations
in?
come
them
in
Would
by
military
in
absolute
///.' -j.
Do
believe
you
freedom
of
without
restrictions
American
•4.
international
standards
Do you
believe
to
trade
protect
a
world
mone¬
what relationship would
man,
Assistant
charge
of
—
John Nord¬
Vice-President in
Real
Estate
Mortgage
Loans of the St. Louis Union Trust
Company,
has
resigned
effective
September 15, and will form his
investment company under
own
the
name
of
John
Nordman
&
Company, to deal in general mar¬
unrestricted
flooding
with
with the First
was
a
of years and prior
in
partner
V
Moore,
-
municipals in the investment de¬
partment.
It
is
understood that
an
appli¬
8.
I
would have
Trust Com¬
in 1928 and was in charge of
membership
Inc.
the
in the
National
Securities
As¬
Dealers,
It is further understood that
Milwaukee Company
waukee,
new
of
application, for
of Mil¬
Wisconsin, will be
firm's correspondent.
the
respect
do
If you are
sociation
well
(Editor's
warned
of
flation
in
Note—Dr.
the
de¬
titled
Comes, Deflation
Behind," which
"When Inflation
Cannot
Be
Wright
of
prospects
further
a
Far
study,
published in the "Chronicle"
of July 22.)
NY Customers Brokers
question¬
write
to
an¬
Elect Davidson Pres.
The
Edw. D. Jones Go. And
Whitaker Go. To
Association
at
its
not the Presiden¬
of the Republican
nominee
in
chose
meeting
ficers
of
Customers
annual
for
will you actively
nominee chosen by
1944,
support the
the Republican Convention?
Merge
election
following
LOUIS, MO.—Subject to
by the
New
York
Stock Exchange, the St. Louis in¬
vestment firms of Whitaker & Co.
D. Jones
and Edward
cording
&
in
St.
in
ness
Louis
its
been engaged
banking busi¬
investment
the
and
Company
have
predecessors
since
1871, the
present title having been adopted
in 1902.
The original firm was
founded
by Gen. Albert Gallatin
and
Edwards
the
under
wards
the
name
of
Matthews
Edwards and
Company. General Ed¬
was
then Sub-Treasurer of
United
States
1872
About
Leonard
Louis.
St.
at
appointed fiscal agent for the
its 5% bonds and in the following
firm became the fiscal
for the State of Arkansas.
the
agency
Whitaker joined 'the
shortly after it began busL
and upon the retirement of
.Edwards
firm
ness
Gen. Edwards in
1874,
formed
name
of
Leonard
of
was
Matthews
Matthews
d
a r
Treasurer—Donald
C.
Blancke,
Eastman, Dillon & Co.
Secretary—Archie
F.
Harris,
Lynch, Pierce, Fenner &
Merrill
Beane,
-
Executive
F.
Committee—Armand
Fontaine,
Merrill
Lynch,
Pierce, Fenner & Beane, the re¬
tiring President; William McK.
Barker, Stillman, Maynard & Co.;
Maurice Glinert, Hirsch, Lilienthal & Co.; Andrew W. Shuman,
Delafield & Delafield; Jon Ralph
Watson,. Dobbs & Co.; Ralph A.
Rotnem, Harris, Upham & Co.,
and
Allen
B.
Kendrick, Burton,
Cluett & Dana.
The slate presented by the As¬
sociation's nominating committee
voted into office without op¬
was
position./
-
part¬
under the
& Whitaker,
partnership under the
&
Hodgman
Whitaker
ceeded to the business.
a
name
suc¬
Upon the
the present
follows: Edward J."
company,
set-up being
as
Costigan, Jr., Roy A. Dickie and
Oliver F. Cuddy, Vice-Presidents;
John M. Max, Treasurer; Max M,
Mason,'Secretary; Oliver A. Laun,
Auditor.
-
,
Edward J.
President of
Costigan, Sr., former
the company, died in
"
April, 1943.
Edward D.
1888 when
and
of the
cers
a new
retired
of service have become offi¬
years
lished
in
senior
is
1922,
composed
//.//.,
Jones &
of
Edward
partner;
Deppe.
partnership
the
D.
The firm is
and
a
Jones,
S.
Edwin
William L. Reiman
death of Hodgman in .1902, a new
Co., estab¬
partnership,
a
Elder,
Ralph C.
member of
New
created under the
name: of Whitaker and Company,
the partners being Edwards Whit¬
aker and H. Blakesly Collins. Ed¬
ward J. Costigan was admitted to
York, Chicago and St.
Louis Stock Exchanges and asso¬
the
In 1918
new
firm
to
be
Charles
Whitaker
&
Co.,
was
partnership in
Edward
Kraft
G.
1906.
Stockton and
became
partners
in the
ciate
member
of
the
New
become
a
Costigan, Jr. will
junior partner in the
known
as Jones,
and employees
of both predecessor companies are
firm, followed in 1921 by the ad¬
to
probably
be
retained.
occupy
'The
firm
the business was incorporated un¬
offices at 300 No. Fourth St.
der the same name and since then
ward
promised in
several
employees
with
many
D.
Jones
will
Whitaker & Co.'s
Grover Dalton, Chairman of the
conversa¬
York
Curb. Edward J.
State Committee, said Mr. Willkie
telephone
G.
Matthews
Leonard
United States Government to sell
year
h
c
Horn, Peter P. McDermott & Co,
Officials of the
companies would not comment on
the program pending action by the
New York Stock Exchange.
Davidson,
>
Vice-President—R i
Co. will
&
of September 23rd, ac¬
to plans which became
as
known last week.
L.
re¬
ported:
a
of¬
1943-1944:
Fahnestock & Co.
mission of Chas. Scudder. In 1929
The Associated Press further
the
President—Robert J.
ratification
nership
ideas?:;; ./:
please.
latter years of
which he held the position of as¬
sistant municipal buyer. He joined
the
as
other
what
Newspapers
as,
with alien
report you to
have said that if the Republicans
adopt a liberal platform they can
win.
What do you mean by a
"liberal
platform"? Be specific,
9.
reader is in¬
case a
clined that way.
other book."
new
number
sion
pany
naire
the
in
submitted
World"?
a
Dail and Bakewell.
ity affiliate of the First National
Bank! in St. Louis, from 1919 to
Union
tions
for
thereto
Party
Louis
sions., To discuss fully the ques¬
which continued until
tial
St.
country
our
ydu
Exchange Commis¬
the
the time and
public discus¬
own
envision the political and
economic
organization of "One
In
ties dealer has been filed with the
during
of my
place
have the privi¬
selecting
of
can't
was
change. Mr. Bake well was previ¬
ously with Albert Theis and Sons
7.
Securities and
1928,
do not wish to
time answering
individuals and alien
National Company, former secur¬
was
of
movement
LOUIS, MO.—Edward Bakeassociated
however,
"Even I ought to
was
the free
has
cation for registration as a securi¬
ket securities.
Mr. Nordman
believe. in
you
people? If so, how do you propose
prevent peoples from Asia .
overrunning the United States?:-';
6. Do you believe that it is de¬
sirable
for
America /to
permit
become
tainly,
Stix & Co., 509 Olive Street, mem¬
bers of the St. Louis Stock Ex¬
Own Investment Firm
ST. LOUIS, MO.
Do
to
ST.
and many
spend
all
my
questionnaires.
I
I will, of
discuss all such questions
others publicly.
I Cer¬
course,
Matthews
of living?
tary system should be established,
and if so,
and
well
disturbing, in
"If I decide to seek the nomina¬
tion for the Presidency
Whitaker
world
a
means?
Willi Siix &
John Nordman
say was:
of the world state?1
Edw.Bakewe!i Now
Company
and he declared that what he did
merge
The questions:
2.
any
this
commodity.
say that this article is
anything outstanding but rather
an
///ST.
letter said.
;
dealing in this com¬
and also the dangers of
hedging, if he is dealing in
modity
ar¬
rangement of world affairs are in
the best Ibterests of America," the
5.
(Special to The Financial Chronicle)
on the spot," ac¬
Associated Press dis¬
patch from St. Louis on Sept. 13,
derstands
are
it have to the American dollar?
Members St. Louis Stock Exchange
Louis
modity
lutely
Brokers'
"We
force
banking circles, having
engaged in the investment
Sept. 13, stated
on
now."
refuse
business for many years, most re¬
Co.
t,
the
convention
are
you
ment and
been
that
delegation
gave
Mr.
large vote for nomina¬
Willkie
that
invest¬
/''•/■
'
.•
Willkie,
domes¬
or
put Willkie
lege
what would you
in
known
advices
Sept.
the following in, the
Lindell Trust Co. of St. Louis. Mr.
well
time
some
this month in St. Louis.
Turner
is
ques¬
are
mon
ST. LOUIS
can¬
Mr. Willkie is reported
problems.
ago;
Street
WniKie, 1940 Presidential
didate, requesting that he set forth
his
specific views on post-war
92-95
and
Principal Exchanges
Locust
com¬
pletely extinguish company's re¬
maining funded debt within ten
Offices
Members
trading the company's
points out that a con¬
securities
to
Providence
in
Republican State
Committee has written to Wendell
tion
price of 7% a year ago.
a
Missouri
how to guard against de¬
Hedging by anyone in any com¬
is dangerous and abso¬
devastating
unless
the
party who hedges thoroughly un¬
international
cording to
The
or
gives
the nine questions and any
on
that he did not say to the St.
to
tion
he
flation, if he thinks that is coming.
On Posl-War Problems
The class A stock, which is pay¬
CITY, MO.
Teletype KC 273-4
Trust
1,
St.
"Post-Dispatch" "they aren't going
compared with 52, and $3,893,960
1009
in
group
suggestions and state
these suggestions,
how to guard against infla¬
why
Ask Willkie For Views
net reduc¬
a
$7,392,852
Present
sists
earlier,
year
individual
123
time in September to
some
Mr.
the
meet
to
tic issues.
Republicans
on the article is
might better give
that Dr. Wright
and
tion
others
Missouri
Traction Companies
Avenue
lot of fears.
a
My comment
L. D.
SL 456
answer
Prosperity Cuts Debts4>
Time
War
E. W. PRICE & CO.
with
set
Mo.
Garfield 0225
Teletype
a
course,
Bldg.,
St. Louis 2,
but.I
Dr. Wright
lot of questions. and, of /
if a person took his article
seriously this person might be be¬
puts
have
it.
studied
not
article
this
read
have
I
have
SciierckHichth
We
Stockholders
for
Through the Vicissitudes of In¬
flation," which appeared in the
"Chronicle" of July 8:
Below the close of Dr. Wright's
6s 1950
BflUM.
Wright's article, "Managing
Business
a
Bought—Sold—Quoted
Wright
Walter,"G. VBenz of St. Paul,
Minn., in a. recent letter com¬
mented as follows regarding Dr.
&
Co.
located at 705 Olive St.
has
Ed¬
been
•
*cf.^.;
Volume 158
A. W.
■■■■
Number 4212
Taylor, Retiring Dean of NYU, Urges ; 77
Creation Of Board Of Economic Strategy
*.; Dean A. Wellington Taylor, a pioneer in the field of education
f Michigan Brevities
ter
ago, has been granted a year's leave of absence effective immediately,
it was announced on Sept. 13 by Chancellor Harry Woodburn Chase.
it
Taylor will retire in September, 1944.
his
annual
cellor
Chase, made public on
Sept. 13, Dean Taylor urged the
creation in this country of a board
of
economic
strategy
to
consider
necessarily
likely misinformed.
the
or
that
this
am
need
of
nomic
as
strategy
that
a
board of mili¬
tary
strategy,
for in the
distant
W.
A.
Taylor
would
not
future
the
emphasis
on
militaiy problems will be shifted
to
problems in the realm o£
nomics." He went
"Such
in
complete
unfortunate
were
ing
if
it
and
is
It would
so.
such
composed of
board
a
hold¬
persons
On
the other
hand, if honest experts
a
working agree¬
ment, how can one expect those
not
less
reach
well
trained
Supreme
its
Court
opinion
indicates
and
do
The
so.
divides
in
legal questions and
on
its
to
often
in
reasons
majorit>
Some such
minority reports.
procedure would
official
abundance
removed.
workable
appear
that
of
re¬
can
and
is
It
a
full
promise
another
hesitate
to
one
such sweeping
in
be¬
prom¬
Dean
Taylor added that "in the
of
economic
thinking it is
but
it is
wise
not
opinion of
to rely
on
the
single cult."
any
"Too often
thought
the
those
of
times."
immediately,
war
normal
more
"vv
■
Urging
••
•
•
business, as well
as
government,
economists
are
chosen because they agree with
the policies in effect and thereby
give them the sanction of scien¬
tific, impartial approval," he said.
"Truth
is
advanced
not
by such
In the social sciences,
an
elusive
and
factor
procedures.
truth
is
should
tions
be
in
pursued
but
it
should
all
be
direc¬
pursued
with relentless energy and all the
combined wisdom
eration
and
added
the
peace
available."
-
that
>
"at
future
business, as
depends less upon
it,
Iowa
Taylor
present, I
am
that7 the
persuaded
the
which
of
private
society; within
operates."
He
cleaned
free
trading
bid 108% of¬
Drug
fifteen-year
slipped for
syndicate
recovered
314s,
spell after
a
wound
have
up,
7
substantially.
railroad
issues,
-
v
one
implement its economic equipment trust obligation and
life, but there is a growing feel¬ the other a small issue of mort¬
ing that much of this need can be gage bonds, have been given the
filled better by Government/Un¬ all clear signal by the Interstate
fortunately, it is commonly held
that all activity carried on by the
Commerce
Government
authorized
the
common
good.
for
Experience
:
"The
activities
>
administered
are
of
Government
human
by
be¬
are
present in both cases.
Recent
efforts
by Government to control
a period of war
shows how difficult it is to please
everyone,
and political prefer¬
ment
depends in a very Wge
measure
upon a pleased elector¬
economic life in
.
ate.
;
'
"Full employment as an end in
itself
can
be effected by Govern¬
reduce
issue
to
equipments
.
«
77
.
funded
amount
next 12 months. 7;
At the
$5,790,000
of
the provision that
on
its
equivalent
ings just
as private activities are,
and the attributes of self-interest
Commission.
Pennsylvania Railroad has been
it
does not bear out this thesis.
debt
by an
within
the
77777'777v7,7
time the Commis¬
same
sion, early this week, sanctioned
the
New
road's
000
York
proposed
& Harlem
issue
of
Rail¬
a
price
or
willing to
render
a
pay
service that
matters.; This thing the Govern¬
ment cannot do without
ing
our
and
to
economy
such
"It
in such
a
way
a-degree as to seri-
busly encroach
idea
regiment¬
on
our
traditional
of freedom.
is little
short
waqt
and
free
this
because
was
didn't recognize, the
the
dif¬
banking
or
to
branch banking with the
smear
brush
of
shares
vious
187,755
because
they
ill-repute
wished
which
Actually the bill was aimed at
Michigan
National
Bank,
which operates branches in many
leading Michigan cities-.
And the grand jury investiga¬
at
comes
time
a
when
that
reportedly preparing to
enter the Detroit
it
banking picture.
will
continue
to
Expensive
Plaza,
and
exclusive,
the
of Detroit's finest
one
apartment
hotels, ~,was sold for
$475,585 on petition of James I. D.
Straus, trustee for the bondhold¬
ers.
7-v;'7: 77777 7
payment was made in
bonds
of
the
original issue of
$1,150,000 and the buyer, Charles
Owen
of
Detroit, received
$426 on each $1,000
bond, the price that all bondhold¬
for
will
eventually receive.
77.7
7
,
"
*
*
'
777*:
as
previous,
7
7",*'
*
*
'
; V..
Beane,
became
Detroit
of
celebrated
22nd
its
of
Depart¬
Board.
Adjustment
the
job
the condi¬
on
tion that he would be given time
off
to
*
.
negotiation—were
Telephone
In
subject
a
L.
of
facturers
Jacobs
aircraft
equipment,
Co.,-
-
and
$5,000,-
a
of Detroit—80% guaranteed—con¬
sisting of 90-day notes, maturity
date, Oct. 31, 1944.
And Nash-Kelvinator Corp. is
$7,820,-
an announce¬
ment of
a.$75,000,000 V loan, ne¬
gotiated with a group of more
than 20 banks headed by Chase
National of New York.
7
7.7':'
■
*
7
former
nard,
flying
Gray
II.
of
division
boat
Ber¬
of
manager
Buhl
the
DETROIT
Nash
P. C. Kimball With
Manager of the Eureka Vacuum
Cleaner
Co.
.
William
.
R;
las
Foundry
the
will
Co.,
on
"Price
icy."
Iron
Gray
at
subject:
Pol¬
Price
and
Fred T. Murphy,
Dr.
the
more
view
lost
•
.
7
•
the fall of Italy,
of
optimistic leaned to the
that
little
in
time
some
would
be
reviving dealings in such
obligations, which have been in
suspense
since December, 1941.
But
reopen
now
Kimball
with
MICH.
has
Chronicle)
Paul
—
become
C.
associated
Sills, Troxell & Minton, Inc.,
whose main office is located at 209
ager
elected to the board of the De¬
for Van Grant & Co.
Director
of
ILL.
—
.Associates
at the Adventurers
a director.
continue as
acting in a
troit
Trust
a
new
Re¬
President
named
Co.
.
Robert
K.
T.
Works
son
Chrysler
The
of
Stock
was
of
Chicago
Club, 14 North
since
has
joined
44 'Wall
Association
Smith, Barney &
in 1938,
Lazard
Street,
Freres
& Co.,
City,
New York
members of the Neto York Stock
9th. •
well attended.
Richard Blood of Paine, Web¬
Exchange, as Manager of their Un¬
derwriting Department. Mr. Rud¬
Vanek of Jos. R.
ber, Jackson & Curtis; Victor H.
Patton and Co.,
with the investment banking busi¬
President and
ness
The meeting was
Vice-President,
re¬
has
dick
been
actively identified
since 1929 when he joined the
staff
of
The
Guaranty
Company
of New York, the business which
subsequently
was
merged
with
covering public utility and
Department
Co.
*• *
Utility Underwriting
Smith, Barney &
'
'
".
of
,
York
certain
underlying
bonds.
Copies of this interesting
analysis may be had upon request
from T. J. Feibleman & Co.
while
efforts are afoot to may elapse before speculators get
the market in such issues, a chance to see prices quoted on
looks as though some time. the board.
I
Johnson With Goodbody
William
the
retail
F.
Johnson
sales
has
joined
organization
York
£tock
Exchange
and
other
leading exchanges, in their
main
office,
York
City.
115 Broadway, New
'
Bro¬
series of three
a
meetings to
as
be held
follows:
7
Sept. 22: "Is*the Market Going
Up or Down?"
Opinions will be
given by the following market
analysts: W. F. Edwards, Naess &
Cummings; Lucien O. Hooper, W.
E. Hutton & Co.; James
Hughes,
Smith, Barney & Co., and Thomas
W.
&
Phelps,
Francis
I.
duPont
Co.
Oct.
6:
Securities
"What
About
Railroad
Now?"—Patrick
Pflugfelder,
Mc-
Bampton
&
7
Oct.
19:
Stocks
"Which
Have
the
(Outlook?"—a
Industries
Best
and
Post-War
discussion
by
the
staff
of
Sixth
York
Floor,
City.
Now
McKinney-Ohmart Co.
Argus Research Corp.,
under the leadership of Harold B.
Dorsey.
Meetings will be held at 3:45
p. m. in the Governors Room of
the New York Stock Exchange,
11
Wall
St.,
New
of
Goodbody & Co., members of the
New
!
Customers'
by the Association
Rust.
7T. J. Feibleman &
Co., 41 Broad
City., have pre¬
pared an analysis of Pittsburgh
Railways System, .with particular
educational
Ginnis,
Smith, Barney & Co. He
specialized in underwriting
of
announces
became
of the Public
Pittsburgh Rys. Attractive
kers,
Edward B. Smith & Co. and later
has
7
Ralph A. Rotnem, Chairman of
the Educational Committee of the;
formation
its
:
Meetings To Discuss
Manage
Freres Dept.
associated' with
Customers' Brokers'
Market Outlook
Girard B. Ruddick, who has been
Co.
Street, Chicago.
previously Man-,
of the Syndicate Department
was
the
Arsenal.
Ruddick To
Lazard
Salle
of
Keller,
Manager
Tank
La
T.
32-year-old
Keller,
post, he
Michigan Avenue, on September
to
to The Financial
the Parker Rust Proof Co., were
will
their annual dinner meeting
reference
(Special
DETROIT,
South
Trading In-Italian Bonds
With
Sills, Troxeii
/
Cincin¬
His
5-6.
Making
...
ad-1
Founders
other corporate issues, and for the
last five years has been in charge
premature.
Exchange
Cadillac 5752
Mr. Kimball
he
CHICAGO,
New
Stock
head of the Murphy Estate, and
Ohitagb: Brokers Ass'n
Held Annual Meeting
St.,
Detroit
Bldg.
Kelvinator, and one-time G. M.
official, has been named Works
work
little
& Dolphyn
Members
III, first President of the organi¬
zation,' also made a speech.
a
Mercier, McDowell
i
Personalities:
cipal/speaker and John J. O'Brien
to have been
Request
on
reportedly readying
issuer in exchange for their stock.
ket appears
Latest Information
William Cornelius, President of
In addition to the new
held
Stamping Co.
Common
Motor
supervisory capacity.
Brokers
National
the National Bank
Packard
Co., of which he is
becomes
of
meetings of his
Fresident of the bank,
7
To All Markets
manu¬
parts
negotiated
loan from
000
•
Private Wires
Randolph.5625
under
the
of
addition
and
conversation here also.
F.
Building
DETROIT, MICIL
$
t
loans—completed
The
639 Penobscot
cus¬
being 21 years.
men
«
V
SECURITIES
Co.
party—the
record of its
average service
tomers'
INVESTMENT
the
the
attend
and
of Detroit Stock Exchange
anniversary
employees'
an
Oct.
Price
Members
of the
member
a
Exchange and
Shader,
Winckler
nati
bank
Charles A. Parcells & Co.
7. ,7
.
Stock
Convention
War
the
■,
Merrill Lynch, Pierce, Fenner and
Society
of
took
the
better
*
dress
He
that
so
slightly
only
was
Crawford, President of the At-a'
M. ,Dodge
Joseph
NEW YORK
shares
Cyrus King, resident partner of
7 Partial
credit
unlisted
the
ex¬
pand in the face of the bad pub¬
licity remains to be seen.
H.
DETROIT
against 55,100
month
total
the.
Lee
Member oj Detroit Stock
Exchange
pre¬
changed hands
a
with
Whether
the
35,286
to the collapse of Detroit's
big chains, is unknown. How¬
ever, the fact remains, that's what
they called it.'-7
back
two
was
$bst op Michigan Corporation
August
department
firm
bank
in
in
In
month.
the
on
95,030 listed
traded
were
against
as
dates
v.
and
days"
local exchange only
is
sum¬
*
Whether
bankers
"dog
usual
than half of the July level.
spectively, presided at .the meet¬
ing. 7 ': 7-7 ■
public offering., ,.V'-';T.-V:7'/ 4'7'c7C 7 Benjamin Regan, formerly of
It will be taken by New York
Hornblower & Weeks, now: As¬
Central, which will proceed to sistant General Manager of Can¬
offer them to stockholders of the teen Food Service, was the prin¬
from fear should it
"anti-chain bank bill."
mortgage bonds.
This
issue, however is not destined for
of tragic that
the natural desire to be free from
is
an
of 4%
ment, but full employment is not
Expectations of some with re¬
the desired end. It is the product
gard to resumption of trading in
of ful1 employment available to
Italian dollar bonds in this mar¬
satisfy
human
wants
and
for
which persons are
it
from the
an
zations to
and
bill
dubbed
suffering
mer
industry
brokerage
Rail Issues Sanctioned
Two
"Society needs business organi¬
unselfish
banking
bankers
negotiation Division.
Two
is
even
ment's
further
said:
anti-branch
that
Car
affecting the relation
it
1088)
United
Meanwhile
Company's
which
tire
President
fered.
products
than - upon
changed and changing conditions
to
in
and
quoted 108%
are
better
enterprise
against the bill.
Slattery denied the charges.
One interesting phase of the en¬
Company's
have
314s
nicely
up
of
and
new
"handful of $50
a
vote
•—
The
<
Chairman
Power
thirty-year
know
we
National
banker.
a
The Detroit Bank has been named
(Continued from page
Dean
American
Michigan
charged that Slattery
State Rep. George Hig-
*
Report
the
of
the
Vice-Presi¬
and
bills" to
Our Reporter's
but
7V7'7^;'.'
interests
man,"
Slattery,
7-
the broad social economic consid¬
business
Bank,
ers
"closer integration of
a
named
in
considering economic prob¬
lems, not only those that will fol¬
low
P.
of
tion
ises."
well to have all shades of
a common economic faith.
can
difficult task for
a
cause
realm
say:
issued
warrant
ference between chain and branch
planning.
fore making
eco¬
rarely be
agreement
well that it should be
be
to
on
board would
a
be
and
thing to bring it to pass, Even an
elementary knowledge of the in¬
tricate processes known as busi¬
ness by which wants are satisfied
as
for
endeavor
the fear of want
sources
will
dollars
create airplanes.
produced by endless
human
the
ol
of
itself
are
is not
out
a
eco¬
great
sufficient to
billions
high
government
of
good will to
a
for
board
in
of
"It
con¬
is
of
after much
that
there
is
learned early in the
Congressional appro¬
a
Airplanes
hours
affairs," Dean
Taylor wrote,
"I
world
We
it.
doesn't
vinced
To make the
Francis
dent
want, that in itself doesn't
priation
of
first
assumption, however correct, that
the productive capacity of a na¬ gins of Ferndale
war
world's
the
offered
problems. "At
stage
people, not
dishonest, but more
do
time economic
the
by
upon
Municipals
That it involves the so-called anti-branch
banking bill makes
doubly interesting in the financial district and the climax came
Attorney General Herbert Rush-**
issued a felony warrant for
remove
post¬
and peace¬
war
played
tion
im¬
mediate
,
ton
be
Michigan
Michigan, is the grand jury investigation into alleged bribery
Michigan Legislature.'
:
the
when
"i;
Chan-<#>
to
report
^.t
.
1091
Number One topic of conversation in Detroit,
apd for that mat¬
of
In
.«<W.H
v
THE COMMERCIAL & FINANCIAL CHRONICLE
for business who has been head of the New York University Graduate
School of Business Administration since its establishment 23 years
Dean
f
WICHITA, KANS. — The firm
name
of Branch-McKinney; Co.,
Inc., Brown
changed
to
Building,
Company, Inc.
McKinney
has been
- Ohm art
Thursday, .September 16, 1943
chronicle
the commercial & financial
1092
H. N, Abell Rejoins Tifft
;
DEALERS EVERYWHERE
Connecticut Stocks & Bonds
•_
.
■
If you
desire to buy
or
sell Connecticut {Securities
suggest that you communicate with
records and experience covering more
1
available to
years are
State
than 37
or
-
for
1
e
■■
■
'
you.
Members
New
v
■
Associate
tradi¬
for
income
INDIVIDUALS
•
markets, phone
write DEPT. S.
or
this
community. :
New
.
in
Connecticut Securities
Hartford of¬
their
fice and recently was
with James
P. Smith & Co. of Springfield.
7-3191
Hartford
associated
be
will
and
them
fice, 49 Pearl Street.
Mr. Abell
in the past was with Tifft Broth¬
ers in their Springfield, Mass. of¬
Hartford and
,
N.
York and Boston Stock Ex¬
changes,
Primary Markets in
Conn,—Harry
Abell, Jr. has rejoined the staff of
Tifft Brothers, members of the
with
,
alert to the opportuniserving
their
clients
through our' local issues,
avail
themselves of our 75 years of ex¬
in
Curb
se¬
■:
in
perience
Members New York
Exchange
Dealers,
ties
HARTFORD,
Boston Stock
and
York
Exchanges
this
in
a
substantial
achieving
continuous
and
1
established
curity holders.
INSTITUTIONS
•
For information
I ■
r
managements
have
tion
•
BANKS
;
••
Corporate
Our
us.
i
<'
Turn to Connecticut
.
■
.
we
V.'
.
.
Tifft Brothers
>
'PHONE US—OR WRITE
£
d
rn
VV«
Members New York Stock
Exchange
PI ITM AHfl
U inHfifl
r
Telephones: 5-0151
New York, CAnal 6-1255
Hartford
6 Central Row
Edward M. Bradley & Co. Inc.
Bell Teletype
HFD 564
Established
Cons. Electric & Gas
BOwling Green 9-2211
1868
Church St.. New Haven 5.
215
v<
New York:
System Teletype: HF 365
Bell
Conn.
Situation Attractive
-
Collateral
Bonds
Trust
of
the
Consolidated Electric & Gas Com¬
Taking advantage of the high premiums offered, the State of
Connecticut recently sold all the Connecticut municipal bonds held
in four of its funds—the State Teachers' Annuity Fund, the Soldiers',
Fund, the State Teachers' Pension Fund and
Employees' Retirement Fund. The aggregate principal amount
bonds involved was in excess of $1,750,000.
The sale was made to
Sailors, and Marines'
State
of
Be Re-Established?
only which roads are
vulnerable to any near-term peace
not
620,278.
/.
These tables are therefore of use
Aetna Casualty & Surety Co.
in
making possible constructive
reported assets of $97,093,230, re¬
shifts in securities of weak roads
year
3V2%
debentures due in cording a $12,810,000 increase over
to those of the carriers likely to
1956. There was available a large June 30,. 1942.
Surplu s gained
amount of cash and securities for $3,156,799, bringing the new total improve their credit standing.
"In
the
preparation of these
additions
and
improvements to to $23,985,505, while a new con¬
tables we have developed the for¬
property, but in view of labor and tingency reserve contains $2,500,mula
discussed
in
this
report
material shortages , the directors ooo.
r
;
which, despite its weaknesses and
felt that such additions and im¬
Automobile Insurance Co.'s as¬
provements which they contem¬ sets stood at $35,348,062, showing limitations, does provide the in¬
vestor with
the- opportunity to
plated were not warranted at this an increase of $4,129,000. Surplus
greater
discrimination
time.
They, therefore, decided to likewise recorded a gain of $1,- exercise
use
a
portion of their available 397,579, totalling $10,545,543 on than would otherwise be the case
were such computations not avail¬
funds for the redemption of these
June 30, and in addition there was
able to him.
debentures.
This operation will a
contingency reserve of $1,650,"These V tables
will
also
em¬
result in an annual saving of some
000. '
phasize the desirability rof reor¬
$243,000 in interest.
Standard Fire reported $7,181,- ganization securities as a group,
Earnings on the common shares
of this company for the first six 409 admitted assets, showing a since these roads have built up
of
$888,863 over a year cash far more rapidly than the
months of the year were $1.32, gain
Light
Power
&
will redeem
$6,951,000 20-
Co.
of
issue
entire
its
Connecticut
have
-■
,
developments, so that the degree
of risk can be more realistically
appraised as prospects of victory
An increase of $5,358,966 become clearer, but also they will
New financing in the municipal in the same period brought total bring to the attention of the in¬
field was confined to one issue surplus to $37,111,012, while the vestor those roads which already
of
$350,000 City of Bridgeport contingency reserve rose to $23,- have effected such a metamor¬
$15,280,000
increase. phosis that their credit is likely of
notes due Sept. 1, 1944. This issue 650,000—a
Income totalling
$96,341,413 ex¬ restoration to such a point that
was sold at .38% plus $11.
ceeded
disbursements
by
$26,- they should be able to withstand
421,069.
even
a
1938 type of depression.
On
Sept. 21, the Connecticut
in the market.
offer an attractive situation
the
with excellent possibilities for
future, according to a bulletin is¬
industrial
com¬
sued by J. Arthur Warner & Co.,
repeatedly demon¬ 120
Broadway, New 'York City.
strated their ability to participate
Copies of this bulletin may be had
fully in general industrial activ¬
from the firm upon request.
^
ity, whether generated by war re¬
quirements or peace-time needs,
according to a booklet which sur¬ showing their activities, resource¬
veys nine Connecticut industrial fulness and adaptability, post-war
companies, prepared by Chas. W. prospects and other facts of sig¬
Scranton & Co., 209 Church St., nificance
to
investors
today.
New Haven, Conn., members of
Copies of this interesting booklet
V
panies
1089)
(Continued from page
vestor
pany
Prospects Look Good
bonds
who reoffered the
brokers
Connecticut Industries
Can Railroad Credit
Connecticut Brevities
,
-
the New York Stock Exchange.
The
<
booklet
sketches
gives
nine
the
of
thumb-nail may be had from the firm upon
' !
companies request.
The Securities Salesman's Corner
Some Suggestions
;
Building
-
a
•
Because
which
a
of
the
For
Clientele From An M.D.O
similarity
that
exists between the manner
in
practice and a securities clientele are established,
medical
the following story
which gives the hignlights of the methods used
should have a definite
application to the securities business.
About eight years ago a young doctor moved into a small city.
As usual there were a number of established doctors in the com¬
by a successful doctor in building his practice,
munity., He was without a single connection and had
to start from
;y :-;y y:y--Vy>''
As he related the story of how he went about building his prac¬
tice we were more impressed with the sincerity and simplicity with
which he related his experiences than almost anything in particular
that he said.
There was a complete absence of any bragging on his
part as he told his story.
Here was a man who took pride in his
which Compares with $1.20 for the ago, while surplus was $2,131,260, borderline carriers, and, with few
or
an
increase of $232,107 over exceptions,
h ave
far
greater work, and who was analyzing the methods he used to arrive at a
corresponding period a year ago.
certain point.
You could easily understand why people talked with
June 30, 1942.
Contingency re¬ amounts of cash available at the
him, and believed in him—HE DIDN'T HAVE TO ACT BECAUSE
serve
totalled $300,000. ;
present time.
The importance of
the
In
of
months
six
first
the
assets of the Phoenix
Co. increased to $70,-
total
year
Insurance
234,616 from $64,934,599 on Dec.
31, 1942.
Surplus as of June 30
was $45,920,047.
June
of
As
assets
bined
*
Sic
*
1943,
30,
com¬
Insurance Co., Travelers
sjt
*
'
V
Co.
Tobacco
man
-I.';...,' •
*
industrial
the
In
field, Hartreported net
June 30
on
a
year ago.
*
Indem¬
*
Due to inadequate stock rep¬
resentation, no action was taken
at a recent meeting of the Eagle
showing
000,
$110,300,000
of
ago.
the same
$79,244,313,
totalled
gain of $19,481,742 in the
a
period.
same
counts
All
the
of
gains,
reserve
and the
lion-dollar
*
affiliated
showed
pre¬
bil¬
*
established.
records
1., The
concern
Lock
Eagle
meeting
*
■
*
and
Co.
on
Aetna
June
30,
The
$1.80
per
ing
Co.
earned
share in the fiscal year
Income from operations
$9,184,476 against $8,783,134
the previous year, while net in¬
was
come,
showed
and
over
a
an
increase of $626,050,000
year ago.
A gain of $87,-
697,563 in assets during the past
year brought the total to $894,-
after provision for all taxes
contingencies was equal to
$2,933,749, a decrease from the
previous year's $3,083,775. Taxes
per
share
amounted
to
$3.55
CONNECTICUT INDUSTRIAL STOCKS"
SURVEY
necticut Industry and
tions
of
nine
leading
favorable peacetime
the
discusses
diversity
Con¬
with substantial war business
CHURCH STREET, NEW
HAVEN, CONN.
Y"rk:
CAnal
6-7870
Judd
&
Manufacturing
decline in
similar
showed
a
profit.
For
the
30,
1943,
June
ended
$513,482
was
fiscal
year
net profit
against $546,320 in
1942, or on a per share basis,
$4.62, respectively.
and
$4.29
As of the
year-end, June 30, 1943, re¬
fiscal
contingencies
for
serve
totalled
$600,000, there having been an
of $100,000 over a year
Surplus totalled $1,392,232,
shows
a
in¬
substantial
ago.
which
increase
of
$84,004 over last year's figure.
New Britain Mach.
Am. Hardware
Russell Mfg. Co.
Landers
Scovill Mfg. Co.
Torrington Co.
66
PEARL
5-2410
ST., HARTFORD, CONN.
Hartford Phone
Boston
Hartford:
questions he asked them were placed on a record card. Everything
he did in that first examination was so thorough that oftentimes the
patient would say, "That's strange Doc, but Dr. So-and-So down the
high blood pressure and he never went through
street told me I had
that
riga-ma-role."
But the next day this very same
New York Phone
HAnover 2-5537
Phone—'Enterprise 1850
Bell Teletype HFD 464
patient
the new doctor and the examination
through. " Gradually the word spread around and of course
recommendations began to build up his practice.
telling his friends about
he went
used to gain confidence is so closely an¬
salesmanship that we are sure many successful
salesmen use some variation of this doctor's procedure every day in
the week.
He ,said whenever he would sit down with a patient he
would ENCOURAGE THEM TO TALK.
As they talked he would
begin to analyze the kind of a person to whom he was talking and
he would tactfully draw them out by skillfully asking questions.
Once their tongue was loosened they v/ould welcome this oppor¬
tunity to unburden themselves.
It seemed that he developed the
faculty of talking like his patients. In other words he tried to become
a
partner to their problems; he merged his personality with that
of his patients.
He became their friend and their counsellor. In a
doctor possibly this is what is called the bedside manner—-in a securi¬
ties salesman there is only one name we know for it—it's the best
way we know to BUILD CONFIDENCE.
i So here we have the two ingredients of the doctor's success—HE
DID SOMETHING BETTER THAN HIS COMPETITORS, AND HE
KNEW HOW TO BUILD CONFIDENCE.
This is the way he built
his practice.
There is one thing more that he did however, that en¬
abled him to keep his practice.
We forgot to tell you that he was
also a mighty -fine doctor.
He had prepared well for his profession.
His several years of study both in this country's finest hospitals, and
in Vienna in the field of "surgery, gave him something to BACK
UP HIS SALESMANSHIP.
The people in the little city where he
practiced finally learned that they didn't have to go to great Metro¬
politan hospitals for surgery—their own doctor right at home had
proven himself by the work he had done.
I
Here again, the securities salesman takes the same road as the
'
successful doctor—you can make all the clients you can handle, you
can be a world beater at building confidence,
BUT UNLESS YOU
1 CAN HELP YOUR CLIENTS TO INVEST IN SECURITIES THAT
WILL DO A GOOD JOB FOR THEM, you will never be able to
build up a lasting and growing business. SELECTING SECURITIES
THAT WILL DO A GOOD JOB FOR YOUR CLIENTS, ALSO RE¬
QUIRES KNOWLEDGE, THOROUGH PREPARATION AND SKILL.
Knowing HOW to sell and knowing WHAT to sell—these are the
ingredients of a successful securities business.
method he
.
,
crease
7-3261
Teletype NH 194
patients called. He raised his fee a trifle above the average for his
calls, but when he got through with a patient they had a
check-up from head to toe.
He took their family history, and the
office
alogous to security
cv
*
•
Coburn & Middlebrook
'
Telephones: New Haven 6-0171
N"w
North
Si:
Booklet
Members New York Stock Exchange
Bell
'
.
PLAYED.
when he went into this new community
was to find out what other doctors were doing AND THEN HE DID
SOMETHING DIFFERENT.
For instance, he discovered that other
doctors were not giving a complete physical examination when new
first thing he did
Another
$327,397.
.
1942 was
over
and
Chas. W. Scranton & Co.
209
surplus
in
crease
Aetna Life
of
prospects.
Write for this
The in¬
against $2.99 a year ago.
LIVED THE PART HE
The
all
Conn. Lt. & Pr.
adaptability and
gives statistical data together with brief descrip¬
companies
issu¬
final
Markets for Dealers in:
"A SURVEY OF 9 SELECTED
THIS
their
HE
was
..
1943, which com¬
with $1.89 for the preced¬
year.
to
ance.
Co.
ended June 30,
pares
subsequent
net
*
Torrington
se¬
therefore be felt only
was
'
1943, had insurance in force to¬
talling
$5,583,201,000
which
,
Oct.
latter
on
adjourned until Sept. 28.
that
Co.
companies also showed
report, with many
Insurance
until
The
option
Recently released figures show
excellent
Life
Co. would
&
acquire the company's property
assets.
net
Insurance
new
Bowser
the when-issued
on
re¬
proposed plan where¬
a
F.
an
crossed the
*
S.
by
and
mark. *
Life
Aetna
gard to
in
stockholders
Co.
has
of The Travelers
Co.
Insurance
Lock
ac¬
reserve
company
sharp
mium
an
year
a
account
Surplus
companies
or
an
over
cash
curities may
$1,355,865,increase
of
Co. totalled
over-empha¬
since in the case of many
roads the cash will be held intact
this
*
nity Co. and Travelers Fire In¬
surance
cannot be
cash
this
sized,
and a good part of it may be used
income, after depreciation and
for debt reduction upon emergence
taxes, of $140,477 for the fiscal
of these roads from reorganization.
year ended June 30, 1943. Surplus
increased to $69,452 from $61,114 Accordingly, the full impact of
Travelers
The
of
Ac
yy ' '-y
scratch.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4212
158
allowed.
1943
Let's
tax
that
assume
will
rates
remain
the
stant—and
1093
that's
pretty broad
a
attainments
assumption!
con¬
contributed
•
The "American Radical'7
Build
calling
for
and
American
sibilities of
Radicals.
breath already is
America
upon
if
'9-
Desired
Estate Taxes
Years—
$50,000
$5d,300
50,000
50,300
10
Years—
50,000 /
10
Years
Years
New
10
Years——
Freedom—then
countant"
20
Years-—-—';
further
and
we
our
faith in the personal
of
incentive
Mr. Myrick's speech in
volves
ticle
discuss
to
around
challenging
a
10,000
2,387
2,515
tive,
4,537
5.030
OP A
..■v
15,000
'
•
:
■
15,000
:
.
;/
4,537
600,000
190,000
538,000
153,000
16,000
the
70,000
20
YearS__—_
500,000
700,000
550,000
1,149,000
491,000
35,000
10
Years'-^—
1,000,000
1,530,000
2,130,000
1,928,000
153,000
20
Years
York
Certified
and
Public
Ac¬
quotes Dr. Joseph
President
of
York
;
$58,000
$10,700
15,000
...
situation Which exists
a
of
10 years from now
or
I think
it shows
"American
Conant's
Dr.
pretty
us
that the hot ; breath
Rad¬
a
as
leaving
wife
and
Here it
I raise
this
Conant's
them
is, and again I quote:
always
PERSONAL
And
believed
the
C
Listen
if
t'
o n a n
takes
•
"
in
words:
three
( ."Under
health,
and competence.'
Federal
1943
4
"First of
all, like all radicals
"and also alLreactionaries, in his
extreme moods he will be utter¬
.
In general, how¬
being rooted in the Ameri¬
ly impractical.
ever,
can
a
boil he will be endowed with
considerable amount of earthy
and
sense
common
changes
certain
a
tax
/
'
no.
••..-444 4,4
needs to be told that
American radical will be a
"No
the
one
'
income
peculiar North Amer¬
ican brand of doctrine.
For ex¬
it will be
a
ample, he will be quite willing
net sal¬
aries
and
earnings
sail way
above the $25,000 mark.
He be-;
.in times of peace to let
:
if
a man
is in good
otherwise
more
—
insurable,
create
may
his
entire
estate
God-given
to provide
taxes
economically sound,
as we
and
under¬
to
the
proud alike
and
what
has
tomorrow's
tax
laws
may-
provide, and if recent action may
be taken as any criterion; then we
security— 44;' (Continued on page 1101)
:
stand the meaning of the term to¬
provided the incentive to achieve
day,
personal
in effect to
"confiscate
all
and
success
is
rates,1 there
sumed learnings
the
subject
not
to
How much
capital gains tax.
mec^ies
:
-
would you
have to
for ten years or
annually
earn
net
leave
to
expenses,
$100,000,
$500,000,
Street
September
or
.3-4
forsooth, $1,000,000?
or,
"To leave
$250,000,
or
70 Pi«e
FiM. *««»«) -,, ,
NEW.
heirs,
your
-
„
^y
for twenty years,
allowing for modest living
i.
Br„terS
...
after
net, after taxes:
Annual
Annual
>:;A-
-
Earnings for
20 years
Earn-.
■'
ings for
10 years
,
—it would take—.
$100,000..__
-
$32,000
$85,000
; 250,000—
600,000
.
;
190,000
»
1,270,000
550,000
2,130,000
500,000-—
l,OOO,0OO
1,075,000
"Obviously,"
Yet
fanatic believer in equality.
he
THE
and
calculations for yourself, on as¬
fully another trial if the answer
should be
OF
Of course,
standards of yesterday. Try some
typical American question, 'Does
'it work?' and to take up cheer¬
4
•
health
the
no longer an oppor¬
tunity, starting from scratch, to
create
a
competence
by
the
apply
to .the
he effects the
to
which
willingness
and thrift; which may
deny to the children the right to
education and a helping hand
at the threshold of their maturity.'-
practically
to
:
•
estate
and
ment, it will seriously affect every
one
of you in this room.
Here
they are, and I quote:
initiative
an
'
peace,
Dr.
Govern¬
of
the reins
the right to live in security as the
of her husband's personal
through
life
insurance,
rather
than through stocks, bonds, real
relationship of the cur¬
right to work, to save,
in order that we may pay as much for one's
rent
fiscal phenomenon to
us
family and for one's self, estate or other property, and his
life insurance estate at present
may be illustrated in connection of the bill as humanly possible as I have always believed in the in¬
with the possibility of our clients we go, along. But I question the itiative and incentive which per¬ will enjoy certain nominal tax ad¬
or
ourselves
creating a " com¬ wisdom, economically and socially, sonal liberty inspires and in the vantages. Certainly life insurance
to
society
which is the obvious way to create an
petence, That's an old-fashioned of taxing a man's income, and es¬ obligations
I be¬ estate today, isn't it! There could
notion, for as long ago as the tate so heavily that it is imprac¬ personal liberty demands,
turn of the last century, Pope ticable or impossible for him to lieve in the equality of oppor¬ be
no
more
convincing reason
leave a fair competence for his tunity which since the
wrote:
founding for its use than I have shown you.
widow and children; I seriously of America' 167 years
ago
has But there again, what of tomor¬
'Reason's whole pleasure, all
No one knows for certain
question whether or not it is brought reward to the humble row?
the joys of sense,
44'
Lie
Radical"
"American
s
over
and
,
AMERICAN
article.
in
LIBERTY
urgency
of raising neces¬
But again, I ques^
result
,
INDIVIDUAL
I believe in taxes and
"The
The article is
carefully, "because
49,000
question because I
have
astronomical amounts of it.
ical" already is upon us.
Of course, there's a war
to be won and war takes money-
the"
any tax which is levied for
the sole purpose of social reform;
which in effect denies to a widow
would do.
competence for
children is con¬
a
cerned.
national
sary revenue.
24,000
;
of
tion
WeJl, there you have it. There's property once a generation," as
picture of today's problem so Dr. Conant's "American Radical"
your
of
21,000
1,000,000
1,530,000
1,075,000
76,500
972,000
26,500
Assumption that taxpayer is married with two dependents.
Income Taxes include Federal Income,
Victory and N. Y. State Income.
far
maintenance
30,000
51,000
■
life
for the purpose
11,650
32,000
,
Dr.
$16,300
5,350.
*
our
conclusively
ar¬
—
ours.
these
There caii be no denying the
right to tax; and to tax heavily in
7,948
■
in
,*■'v
times
1,270,000
paragraphs from
two
are
5,433
2,515
country of
believe
liberty, personal initia¬
and
home.
$100,000 (OR LARGER) ESTATE
700,000
RADICALS," and I think you will
agree with
me that
it gives a
rather alarming preview of the
kind of people who may run this
country of ours from Washington
in the years to come.
In consider¬
ing what I have to say, however,
please remember that I am speak¬
ing as an individual.
;
Here
5,098
,
-
500,000
University, which ap¬
peared in the May issue of "The
"WANTED:
2,583
10. Years
Harvard
called
5,030
32,000
by Dr. Conant, President of
Atlantic Monthly."
personal
2,387
',v $85,000
—and
re¬
you
3,483
10,000
107,000
320,000
320,000
today, not 5
full fol¬
4
with
$968
2,515
:■
$107,000
facts—in
certainly appreciate the priv¬
ilege of talking with you today,
particularly because .the subject
like
50,000
$5,030
1,502
CREATION
leading tax 'authorities.
This article deals in present-day
I
I'd
-
$1,502
7,300
$100,000
of
as
in the attain¬
lows:
Years—
-
,
50,300
50,300
50,300
50,000
20
( Estate
Taxes
"Living
Expenses
$7,500
:? 250,000
v.250,000
New
and security."
success
Years—
"
have
prog¬
Insurance
business, which cer¬
tainly has its humanitarian roots
down deep in the fertile soil of
for
v
turn
DIDN'T
50,300
50,000
10
<
(.100,000
Klein,; former
qualities
initiative
and
factors
necessary
ment of
still
concept of thrift and
our
20 Years—
Inc. Taxes
,
State Society of Cer¬
tified Public Accountants and one
chil¬
our
to***adjust
have
to Create
Years—
20
shall
Required
Income
10
philosophy—a way of life \ that
presumably would throw millions
of citizens upon the State for their
security—let me quote from an¬
other enlightening article.
It ap¬
peared in a magazine called "The
dren
Amount of
in
largely to the
things I wouldn't be in the
Available
Before
Payment of
20
they continue 'to ex¬
pand and to apply their distorted
philosophy—a philosophy which
inevitably would throw millions
of people upon the State for their
security, demanding in return the
surrender of an equal amount of
us,
Amount
Earnings
Before
Payment of
radical
a
I
Amount
Net
of life in
way
such
If
Annual
Estate
;;
Estate
a* new
under
$50,000 ESTATE
Values of
Estate
Years to
(Continued from page 1086)
Their hot
CREATION OP A
:;
Number of
which
so
of this great
ress
'
Klein
Dr.
says,
"some normal ambitions of yes¬
terday
have
wind.
But
row?" 4
with
gone,-;
of
what
4; 4
the
the
mor¬
t^iveness to^"-
444444 4\4'''4'4,4;
Those figures are astounding,
equality of opportunity,5 aren't they! If you want to leave
not equality of rewards; but, on
$100,000, exclusive of life insur¬
.the other hand, he will be lusty
in wielding the axe against the ance, for the protection and se¬
manage,.
.lieves in
m.>'ortant th
they
„
*sea
oiways
lts up*
-toeeB ■>!?•.
;
•
•
root
inherited privilege.
of
To curity of
caste
of a
growth
the
prevent
will'
system, which he abhors, he
"be resolute in his demand to con-;
(by constitutional
fiscate
•
are
your,
now—and
family
10
years
remember, there
tetter
relatively few people who at
,
time in their
some
meth-J hoped
or
,
6ooa
!
■
t0
if y°u
lives haven't
1
He will demand really
ef^
fective inheritance and gift taxes,
4 and
breaking
the
this5
pushed
•point cannot be lightly
aside, for it is the kernel of his
radical
4In
words,
other,
goes—and
such
Conant describes
Can't
"You
as
the saying
leave
can't
you
If
either!
You,"-
people
it,
Dr.
as
actually * should
get
control of our country, then
we
and
our,
children
children shall have to
curity
a
their
adjust
family
the
for
and
our
of thrift and of se¬
entire concept
and
which
mainspring
we
may
of
today
,
total
;Teat»
; 1
-
^
.
closely before
new
way
we
,4, "American
would map out
for
are
year
s
Ihat's
,
create
a
ratty
man
the,
Sincerely
yours«
c
with
estate, how much he must^ save,
and how much he may use
tate tax purposes the
—
gent you
without c
us.
given .general
expenses.
-re
perhaps
out for
married
— «-
cost or oWisatioa.V
•
"1945
yours i°x
®ore,^t 1ph0Ke ot
dependents must make, each
to
ctfi
story
g?;s
figures which show how
much money a
two
back
Radical?
us—or
already has mapped
Here
go
of life which Dr.
for
or¬
Victor
i.'coot)
B
/partner
KI
For es¬
initial figure
success
ductions for funeral and adminis¬
discussing the pos-
$250 a
or
earn a
cis
-rt:s
Let's look at that picture a little
Conant's
for
the
is the value of the estate after de¬
achieve.
But before
$200
the
are
whatever
an
of $850,000 to do it!
more
know
-that
«ra Su.
in¬
produce
around
find dinary living
substitute for the incentive and
initiative
of
to that
philosophy."
Take It With
come
trust month—you'll have to
And;
estates.
and
funds
of
up
will only
today
w°'4.gest
expected to accumulate
ods) all property once a genera- that much money, which invested
,'tion.
;
from
tration
expenses
emptions
and
but
before;
ex¬
credits have been
11
i?'*'.'V*-:»
t>
THE COMMERCIAL & FINANCIAL
1094
Planned Economy £ 1
And Free Enterprise
(Continued from first page)
both
major political parties ana
people
overwhelmingly
the
wanted
return
to
free
to
enter¬
For the business
enterpriser is the
spark plug of the free enterprise
system, and competition is the key
force upon which the survival, of
Today,
the
situation is
But let us
quite
different politically, and the system depends.
with regard to large and power¬ return to this after we have dis¬
posed
of
the
pleasures
of
a
ful groups of people. ',
y
■
planned economy, '■/"■yy-fyvy 777'7
Today, vast numbers of people
To
an
increasing number of
do not want to go back; instead
people, the idea of a planned so¬
they wish to go forward toward
ciety, as a stable economy, working
a
more
thoroughgoing model of
smoothly, with full employment of
planned economy;
It is perhaps
human and natural resources, to
somewhat inexact to state bluntly
turn out abundance and security
that they want specifically social¬
for all and proceeding toward a
ism, fascism, communism, or some
definite goal, seems to possess at¬
other obviously defined form of
tractive features. This is especial¬
planned
economy.
What
each
ly true when the imagined plan¬
group immediately or primarily
ned economy is compared with the
wants is to get the government
actual
free
enterprise
system,
to engage in certain specific prac¬
prise.
tices which will benefit it
at the
of the others, not realiz¬
ing (or caring) that the sum total
of such practices for all groups
expense
will create
meqtally
economy.
full-blown, governplanned and directed
a
'
.■
v'yy-y'
Security—and it is
cious security—then
a
rather
spe¬
becomes the
which
may
appear
to
ganized, functioning
getting nowhere.
But
whether
planned
or
be
disor¬
badly,
not
the
and
actual
which
materi¬
alizes will prove to be desirable in
the eyes of any particular indi¬
vidual
will
depend upon how
satisfactory to him are the an¬
swers
to such questions as the
following: : :
economy
magic word for which freedom is
traded, sometimes gladly but more
First of all, who is going to do
often unwittingly.
Usually un¬
the planning?
Those who are
wittingly, because the members of
most enthusiastic about the crea¬
the group generally feel that they
tion of a planned economy gen¬
are going to be able
"to get by
with it,"
to get something for erally assume without question
that it is they (or someone with
nothing, to obtain some special
their particular
likes and dis¬
privileges without incurring state
regimentation and control.
But likes) who are to do the planning
the hand which grants the privi¬ for the rest of us.
7 People naturally differ in their
lege sooner or later imposes its
likes and dislikes and therefore in
V-y".77
7 ry'/ 777y
their concepts of the kind of a
labor groups seek such
privileges as must in¬ planned society which would be
evitably lead either to the taking satisfactory to them. It would be
inevitable that, whoever does the
over of government by organized
labor or to state control of the planning, the result will be un¬
Hence, the
labor sector.
Farmer groups de¬ satisfactory to many.
control.
Thus,
extensive
accept, subsidies which promise of a bright new world
so planned that everyone is con¬
lead to
government regimenta¬
tion of the agricultural sector. tented and happy is not possible
of achievement.
■>$ 77:;
*
The
'"faceless
masses"
may
But how are the planners to be
clamor for such lavish "cradle to
mand,
or
.,
chosen
or
selected?
In
the
case
grave" security as will seriously
of the United States, the Congress
impair the initiative which makes
progress
possible.
Such trends might do the planning, either di¬
may be viewed philosophically as rectly or through its own com¬
the natural growth and expression mittees, the legislators endeavor¬
of inherent greed in a people who ing to follow the wishes of their
or
those pressure
have lost their religious and moral constituents,
convictions of an earlier day and groups in their sections which are
most powerful, in voting strength.
have embraced Carlyle's "Gospel
of Mammonism."
But from the On the other hand, the planners
viewpoint of economics, what has might consist solely of persons ap¬
been happening is simply a great pointed by the Executive to form¬
and
widespread
Retreat
from ulate his (or their) own plan
which would be dutifully accepted
Competition.
Most unfortunately, too many oy the Congress.business enterprisers have joined
in this retreat of the worker, the
'farmer, and plain John Doe who
no
longer wants to stand on his
own feet
and compete fully and
fairly with his fellow contestants.
The
question
arises:
For
planning be
done?
It is generally assumed in
all discussions of a planned econ¬
omy that the planning would be
whom
done
would
in
the
now
the
interests
of
all
the
people. However, realistic think¬
ing will suggest that this is hardly
possible.
Planning in the case of the
Nazi-Fascist
has
states
the benefit of
for
been
abstract, warlike
personage, the State
(conceived
of as Germania or Italia), and at
the expense of everyone in these
nations except the party leaders.
Planning in the case of Russia,
while ostensibly for the masses as
a
an
whole, has been primarily for
the benefit of those three million
of
out
the
million
hundred
two
Thursday, September 16, 1943
CHRONICLE,
depend
of
his being in or out
upon
the
group
pressure
groups
or
in the interest of which the econ-
is planned./•
A third question is the follow¬
ing: How thoroughgoing will the
planning be?
This is important
because of the fact that really
onmy
.
thoroughgoing planning is incom¬
patible with the free enterprise
system and with democracy as
we know it.
It would be impos¬
sible
out
for
government to carry
all-embracing program of
an
a
the eco¬
nation without
directing
and
planning
done
Usually the descriptions of the
planned
economy
for post-war
America are couched in general¬
777
Frankly, it is true that while
enterprisers never tire of saying
that "Competition is the life of
trade," they often act as if it
ities
would
ade
the short
over
of
run
dec¬
a
know from actual
experience. And there is at least
a
theoretical possibility that an
Administration planning the econ¬
omy in the interests of powerful
minority pressure groups might
be able to continue indefinitely in
or
we
so,
of the
the first
place, only part of
population having the voting
privilege actually votes. Second¬
ly, a political party in power can
count
upon
many
millions of
In
the
from those of its
votes
who
followers
prejudiced
fathers
and
grandfathers have voted the same
ticket, etc.) and who will, con¬
tinue to vote for the party because
of "principle" even though they
receive no direct or tangible ben¬
efits.
■:>;(
.: 77 777" ■
In addition to this group, which
may be larger than the standpat¬
ters
affiliated
with
other
any
standpat
are
adherents
or
(whose
party in power may
many millions of votes
from federal, state and local em¬
ployees who owe their jobs to
the party. Then, in order to be
assured of enough more votes to
constitute
a
majority of those
the
party,
count
the
removing
kind
of
democracy
to gain as
so as
support
for
of
possible.
as
example,
the
e*
S2£
SCHENLEY
25
Others
arm.
might
that' it
thought
be
would be better to plan the econ¬
the benefit of all citi¬
or at least all voters, so that
votes could be secured. But
for
more
this is neither necessary nor pos¬
Additional
sible.
needed.
And
votes
order
in
referred to in
which
one
is
or
thor¬
the few minority
pressure
groups
whose all-out
support is needed, benefits and
privileges must be accorded to
them which can be given only at
satisfy
oughly
the
the
promise
to
for
minority
in a totali¬
(Russia claims to have
freedoms), or even in
powerful
groups,
tarian state
all of these
a
slave
planned economy
the benefit of
a
run
more
pressure
or
state.
That is to say, you can
of
the' rest
is
expense
people.
that
of the
worship as they please, and keep
them free from want and fear in
dictatorship
benevolent
a
slave
state;
Of
course,
fact
The
significant
changes have taken place in the
aspects '■ of
American
government. Looking
political
democratic
it
that
seems
in
old
the
or? a
abolition
speech makes auto¬
from fruit and
proof. 60% neutral spirits distilled
grains. Schenley Distillers Corp., N. Y. C.
which
has
But recent his¬
enterprisers
chief
the
pressure
and a very powerful group
As is characteristic of
was.
the business en¬
terprisers
followed
their
own
selfish interests, and too often
these were unenlightened.
Yet,
and
long
true
that,
fair
competition,
so
it is
as
pre¬
There
are
many
who feel that
better
can
quality.
This
be said of many
is more
modern
to
be
and
meaningful
to
Americans
the American
Way of Life. It is encouraging to
note, therefore, that some of the
to
preserve
in
favor
of
planners are not
such
.thoroughgoing
planning as would destroy the
free enterprise system. But their
idea of planning —that govern¬
ment should act mainly as a bal¬
wheel to help the free enter¬
closely tied in with the great New
purchasing power fallacy to
promise much in the way of
sound policy. :
I '"7 v
Deal
foresee'
.cannot
We
sound concepts
whether
the
whether
will be adopted or
enterprise sys¬
free
tem will be abandoned in favor
all-out planned economy.
an
we
of
But
do know that the free enter¬
system is threatened with
today as never before
prise
What
history.
can
groups is
quite different from
that of the old days. And it would
seem that whether or not a
given
individual would be satisfied with
a
pervasive
more
life
of
in
recent
important as a
whole in hampering the beneficial
functioning of full and fair com¬
petition,
are
what
might
be
termed
"partial
retreats"
from
competition.
That is to say, in¬
more
stead of
trying to escape as com¬
pletely as possible from competi¬
tion (as in monopoly or combina¬
tion), the enterpriser attempts
merely to avoid the full force of
competition.
7
One way of doing this is to state
his prices ,and terms in a way
or
prac¬
tically impossible for the ordinary
consumer to compare them easily
with those quoted by his competi¬
What
results
is
not
mo¬
nopoly but rather what economists
term
"imperfect competition." In
words, competition cannot
be "perfect" (or fully and fairly
effective — as the business man
men
do
helping to preserve our
enterprise system? They can
toward
free
accept the responsibility to com¬
pete more freely and fully. Com¬
petition is the major economic
force which we rely upon in our
to
enterprise
system
to make
system work effectively and
satisfy the great mass of people.
Competition among buyers
and
borrowers protects sellers
and lenders from the unremuneramong
ative
say) unless
prices they would
consumers
are
compare easily the goods
or
services, and their true costs,
offered by competitors.
Unless
consumers
can
do this, it is ob¬
vious that they cannot force com¬
petitors to get down and compete
in a really thoroughgoing man¬
ner, with the result that competi¬
tion is not fully effective in pass¬
ing on the benefits of the free
enterprise system to all.
^
A good
example of the method
partial retreat from competi¬
tion by use of confusing state¬
of
ments of cost is to be found in the
great
field
of
consumer
credit.
The loan services offered by com¬
peting institutions not only differ
fas do consumers' goods put out
by different sellers), but in addi¬
tion the prices
or
charges are
stated in so many different ways
that
no
rower
average
consumer-bor¬
compare them intelli¬
Thus,
consumer
loan
are stated by competing
can
gently.
charges
lenders in the form of: dollar dis¬
counts
business
the
sure
the
able to
free
groups,
be
a
times, and far
would
whose simple
policy is to benefit themselves by
mere
restriction and by taking
pressure
far
the fifth or missing
freedom—^freedom of enterprise—
be based upon
in our
than
to
good thing, when it
occurs
among those from whom
they buy or among those to whom
Ihey sell. But competition experi¬
enced by a seller or a lender from
the four freedoms mentioned must
able
of
own
other
extinction
sought only by first benefiting
the people through offering goods
and services at lower prices or
them
trade, and
major source of strength of a
political party in power.
>
a
vailed,
these business men were
to
secure
the gains they
to
seems
tors.
pressure groups,
their shortcomings,
death of their
against abuses committed by a
given powerful minority avail lit¬
tle or nothing if that minority is
prise system function more effec¬
tively—so far seems to be too
business
be the
businesses, and try to hamper its
functioning. Perhaps competition
which makes it difficult
ance
long,
economy.
shown that widespread
freedom
of
speech and over¬
whelming protests on the part of
the
majority
of
the
citizenry
tory has
most influential
•
let peo¬
ple speak and think as they like,
not
are
to
Today, the situation with regard
86
charge
■
cratic rule easier.
zens,
citizen
down
quart of milk under
a
of freedom of
to the number and power of pres¬
BLENDED WHISKEY
the
.
from others.
ROYAL RESERVE
is
made
inflation, to furnish full
employment, to maintain purchas¬
ing power, etc.—all quite appeal¬
other sellers and lenders may not
ing objectives.
Still another promises four free¬ always be viewed as a blessing.
doms
to
every
person
in the
Hence, as I have said, what has
world, but no mention is made been going on is a great and
of what many consider to be the widespread Retreat from Compe¬
most important freedom of ail- tition.
Old, well-known methods
that of free enterprise. It should of retreat are by way of
monopo¬
be plainly understood that you lies, of varying
degrees, or com¬
can have all of the four freedoms
binations with competitors.
But
on
only necessary to have planned
the economy in such a way as to
greatly benefit one or two power¬
ful minority groups, 7:^v7\T7it
v
omy
have*
much popular
One planner,
walking
actually voting in an election, it
It
we
every
sees
world
road with
each
the
is
full
w*m
tive,"
been
avoid
power.
generally
»»&««
longer really effec¬
no
known.
with all
5
petition is
powerful minority pressure
the expense of the rest
of the citizens. That this may be
it
in Moderation!
suming public and to satisfy the
great majority of our people.
But "Competition is dead; com¬
groups at
more
group,
.
American Way, has worked so as
to pass on its benefits to the con¬
essentials of
increasingly during
rights of pri* the past decade by critics. There¬
In a democracy, like the United vate property, freedom of con¬
fore, they argue, we should aban¬
States, it is logical to assume that tract, individual initiative, and don the free enterprise system
the planned economy would be competition. With- the disappear¬ and shift into some kind of govshaped so as to benefit one or ance of these rights must vanish ernmentally planned and directed
constituted
.
profit.
■'•77 7,.;• '-77 7 7 -!'J7.' 7
because of competition
the free enterprise system, Or the
Thus,
free enterprise: the
For
.
normal
Travelers.
first
perhaps and generally less power¬
ful in enforcing their demands.
Available for the Duration
buyers and borrowers the largest
amount
of
improved 7
goods and services at the lowest
possible prices consistent with a
possible
population who are members of the
Communist Party or are. Fellow
days pressure groups were fewer
sss
Competition among
sellers and among lenders assures
nomic life
back,
II"
monopoly.
simple
on
original
balances,
interest on monthly bal¬
percentage
discounts on
original balances, combinations of
a
dollar or percentage discount
ances,
charge plus investigation fees, in¬
surance
charges,
penalties
or
fines, rebates, etc., etc,
To compare the cost statements
quoted by various lending insti¬
tutions, the consumer would have
to Reduce the total charges of each
to
some
nator
one
common
denomi¬
embracing the two variables,
have to principal and time. And to do this
accept if they dealt with a gov¬
planned economy will generally ernmental
or
other
type
of
job, he would have to bC skillecb
mathematics,
including
the
in
auoarif:
1,4^.
Volpme 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4212
mastery and exact application and of enterprisers in differentiating
solution of
algebraic equations, their goods and services results
which
he
isn't.
Consequently in offering to consumers a Wider
competition is far from being range of choice, thereby making
fully effective in the consumer possible the satisfaction of a great
.credit' field.
/
variety of tastes.
That greater
/ Radical critics seize upon such total utility results to consumers
conditions to proclaim that com¬ would seem to be' unquestionable.
petition, which must function ef¬ Furthermore, if the differentia¬
fectively to justify the free en¬ tion practiced by an enterpriser
terprise system and make it work
in
most beneficial to the
a manner
is dead or dying, and to
urge that the system should there¬
fore be junked in favor of some
type of planned economy. Where
these critics are wrong is in their
assumption that nothing can be
done to remedy conditions of in¬
effective competition and thereby
masses,
justify continuance of the Tree
enterprise system. The situation
is quite otherwise—unless we are
that
believe
to
states¬
business
manship is disappearing from the
American scene,
in
Thus, the two major institutions
the field of consumer small
loans
instalments
are
the small loan companies,
which for more than a quarter of
a century have been required by
the
repayable
uniform
small loan laws to
charges in the
total
their
state
in
form of simple
interest on month¬
ly balances for the purpose of
protecting borrowers and enabling
them to compare easily the true
costs of competing loan offers,
and the commercial banks, which
have recently adopted a
of stating
a
practice
their charges merely as
number of dollars.
Now, the interesting fact is that
the
consumer-borrower
needs
both of these statements,- both
types of information.
know the
to
He needs to
dollar cost in advance
help him in his budgeting; he
cost in
needs to know the rate of
simple interest per month as the
common denominator by which he
the offers of compet¬
ing sources of credit.
The easy
can
compare
solution, therefore, would be for
the banks and the companies to
adopt a uniform practice of using
a combination statement, expres¬
sing the total dollar cost and also
the rate in simple interest per
month. It does not seem too much
to expect that business statesman¬
ship will eventually bring about
such a practice, thereby raising
the plane of competition in the
field of consumer credit and mak¬
effective
the benefits of
ing competition a more
passing on
the free enterprise
force in
••=
makes
still
more
tem
or
ever
since
it
As
has
Bell
labor
union
leaders
Street, New York 5
By BRUCE WILLIAMS
The Brookings Institution of Washington, D. C., in a recent sur¬
covering price control and the subsidy program in Canada made
the interesting statement that, "After three and a half years of war
the total increase in the cost of living in Canada has been only 17%
vey
compared with the 28% in Great Britain and 26% in this country;
the general control over prices and wages and the subsidy plan, which
as
have been Carried out with
a
reso-^
lute will and
unflinching purpose, persisted. The free exchange rate
together with an effective fiscal remained fairly steady at a level
policy, have been the major rea¬ approximating the Foreign Ex¬
sons for this fine record."
change Control Board's* selling
price for U. S. dollars; holders of
Not only is this further evi¬
dence
that the
Canadian
econ¬
is ably controlled, but it is
omy
also
expanding to an amazing
degree as the six months trade
figures to June 30th eloquently
demonstrate.
this
at
year
for
the
totalled
$1,-
Exports
date
288,100,787, an increase of $180,275,261 over the figures for the
period
corresponding
of
1942.
Imports for the period amounted
to
$839,684,165, and the favor¬
able balance of trade showed an
increase of $183,295,981 over the
1942 figures. July exports were
just
over
about
$300,000,000 which is
four
times
the
total
have
necesjsary, legislation for raising
the plane of competition is vastly
ity that has been shown by Cana¬
dian industry, in general, in addi¬
preferable to, and acts as a pre¬
tion to the numerous entirely new
ventive
of,
legislation of
the
industries which have d e v el¬
planned economy type.
oped since the war hold out high
The CHRONICLE invites
hopes for the future of the Do¬
comments
on
the views
ex¬
minion in the post-war period.
pressed by Dr. Phelps in this
article, or on any related phases
}■ of the subject under discussion.
During the past week the mar¬
ket
for
lowed,
Canadian
securities
The
Borrowings Up
increase
in
money
bor¬
sues
rowed by Illinois and Wisconsin
families for home ownership pur¬
overall
the
follow
of competition
\
Brunswick issues
"Total home mortgages recorded
were
offered at
.
months to 36.7% the next agreement on the. debt reorgani¬
product differentiation, the claim
y
zation plan, there was some in¬
is made that competition is a thing three months."
A. R. Gardner, President of the
of the past or is no longer effec¬
quiry for Montreals; these issues
tive! hence, the time has come to Bank, indicated that the volume are likely shortly to become a
of mortgage borrowings from all center of
abandon
the
free
enterprise
activity as there seems
But
,
sober
gest that it would not be in the
real interest of all to discourage
differentiation by competition in
year
13.9% fall off this
little doubt that this situation will
from the like period of 1942,
which had in turn chalked
decrease
from
1941,
the
up
Activity Shows Gain
C
a n a
shows
d i
a n
industrial activity
slight gain, S. M. Wedd,
General Manager of the Canadian
a
Bank of
Commerce, Toronto, der
clared, according to the index of
industrial activity compiled by the
Bank, which rose from 205 at
mi d
J uly
to
206
at
midAugust
(1937 = 100), the per¬
centage of factory capacity util¬
ized rising from 125 to 126. "The
most
significant
change,"
Mr.
Wedd stated, "was the recovery
in textiles, with fuller time being
resumed in garment factories, but
footwear production declined, re¬
ducing this gain in the clothing
group as a whole.
Foodstuffs de¬
clined slightly.
Pulp, paper and
-
official I instead
the
of
free
"Our
payroll index for
(1937 = 100), the
(revised) and
Board to resell profitably U. S.
May.
Within the composite in¬
dollars
previously purchased, at dex, however, there were rises
the official buying rate, thus re¬ between June and
July in mining
ducing what appears to be a and construction wages and de¬
rather embarrassingly large ex¬ clines in those of
logging and
change position, and also perform¬ trade, There was a slight increase
ing the normal function of an ex¬ in manufacturing wages. v
change. control of preventing un¬
"Crop conditions are poor this
due fluctuation of the rate,-and
year over most of Eastern and
showing adaptability in operating Central Canada, while in the West
freely on both the buying and they are less favorable than a
selling sides of the market to year ago, though about threeavoid the building up of heavy quarters of the prairie grain belt
has prospects of average, or at
positions.
rate.
wage
July
Such
step would
a
Before
considering
trends
market
to
either
dispose
doubts
with
course
of
rates,
or
is
it
future
regard
post-war
to embark on
certain
near-average, outturns,
would enable it to con¬
225
for
June
tinue, even expand slightly, the
large-scale meat and dairy ,pro.-».
duction
it has developed since
1939.
The total crop yields for
to
the
\ interest
a
as
which
necessary
of
was
same
least
enable the
policy
of deliberate inaction. Contrary
all
to the views expressed by cer¬
about
tain eminent economists, inter¬
;
the banner year 1942."
Canada
now
one-third
appear
below
to
be
those
of
est rates in the future must be
dependent
<
on
the following fac-
Law
tors:
(1) We
are now
definitely in
a
period of managed money, and it
would
invite
disaster
to
tion of hostilities. /"/■
(2) The existence of huge na¬
tional debts Will not disappear in
the near future and while they
exist interest rates will be main¬
on
a
NYU
To Hold Conference Or
relax
control in any degree in the tran¬
sitory phase following the cessa¬
tained
School" Of
declining trend.
A three-day conference on re¬
negotiation and termination of
war contracts will open this morn¬
ing (Sept. 16) at the New York
University School of Law.
The
sessions, which will continue un¬
til Saturday evening, will include
Ultimately, it is the tax
approximately equal time for pre¬
payer who pays for the debt serv¬
ice, so political considerations will pared addresses and for questions
and panel discussions, according
necessitate " cutting
the bill as
(3)
to the announcement
by Dean
finely as possible; the policy of
Arthur T. Vanderbilt.
/
"making rates attractive to the
Among the government agen¬
public" can therefore be ignored,
cies which will be represented at
;
(4) The government can sell
the
will be
conference
the
Pro¬
curement and Legal
We specialize in
canadian
Government
-
Municipal
Corporation Securities
Division and
the Price Adjustment Board of the
Navy Department; the Ordnance
and
Divisions
Purchase
of
the
Army, and the House Naval Af¬
Committee. Na¬
tionally known firms of public ac¬
countants, tax experts, and legal
firms will also be represented on
fairs Investigating
the program.
The conference
will
bring to¬
be settled, especially as in¬
terest rates are now definitely
gether some of the men respon¬
lower
a
largest
in new mortgage borrowings
since recovery began.
New bor¬
sible
this
than, when
question
bond-holders
was
are
a
deadlock
on
reached and the
how likely to
be less adamant.
year
3%
the
be
soon
year
and services, to pro¬
hibit branded articles, or to for¬ rowings the first half of this
however, still, some
bid or arbitrarily curtail adver- were,
tising. For one thing, the practice more than in the first half of
their goods
-
a
...
reflection will sug¬
that
fact
,
lenders shows
system.
will
the
;
purely in the district for the first half a return of nearly 3%%, whereas
a few weeks ago the yields were
competitive price or profit—some¬ of the year were $155,732,000, of
and
3.60%
respectively.
times very much more in case which $95,577,000 were in the sec¬ 3.30%
Saskatchewan 4%'s of 1960 were
* Leading
consumers find it extremely dif¬ ond quarter.
source of
ficult to make a true comparison funds Was the savings, building offered at 89% and Manitoba 4%'s
of the product or service with and loan associations, which re¬ of 1956 at 104%, which compares
those of competitors.
Here, with corded 35% of the dollar volume with their recent highs of 93 and
107.
Albertas were an exception
regard to monopolistic competi¬ for the first six months. Greater
to the general trend and the 5's
tion, is where critics of the free en¬ dependence upon this type of in¬
were quoted 77/78 With bonds in
terprise system really wax elo¬ stitution during the second quar¬
y.\
quent,
Since the whole field of ter Was noted, the percentage hav¬ quiet demand.
retail trade is characterized by ing risen from 32.7% the first
Qn renewed talk of a possible
three
In
15,1945, other wood products were un¬
interesting
to
see changed, an increase in the activ¬
whether
the
Foreign Exchange ity of saw planing mills offset¬
Control Board will take advantage
ting a loss in that of furniture
of this unique opportunity excep¬
factories.
The automotive indus¬
tionally to permit conversion at tries recovered to the June level.
trend
and to secure more than a
the
of
additional
the Dominion 5's due Oct.
it
an
to
be
supplies
of free exchange next month as a
result of the call for payment of
fol¬
finally receded and the 5's of 1960
petitors and then failing or refus¬
Which recently traded at 125%
ing to provide consumers with poses the second quarter of this
weakened to 123%.
Dominion 3's
sufficient information to enable year,, compared with the first, was
of 1967 and the 3's of 1958 eased
Ihem to compare the competing greater than the usual seasonal
to 103% and 104% respectively.
offerings intelligently.
Different uptrend, the Federal Home Loan
Canadian National Railway 4%'s
tiation of consumers' goods (typi¬ Bank of Chicago reported on Sept.
of 1956 were available at 117 and
fied by branded articles of all 4.
Figures
compiled
from
all
the 5's of October 1969 were off¬
kinds) leads to what economists sources of home mortgage money
ered in fair volume at 118.
term monopolistic competition of show a 58 % increase as compared
British Columbias were obtain¬
with only 19.2%
last year and
the product differentiation type.
Differentiation of his product or 39% in 1941. The Bank's advices able at a yield of 3.40% for the
longer maturities and similar New
service enables the enterpriser to also state:
cashing at the official
view
there will
checks
sending them to
are now
In
rate.
as
general, the market is now
average of 1 % -2 points
from the recent peak levels. Even
Ontarios which were the last is¬
dividend
current
Canada for
In
off
case
avoid the full force
the
therefor
anticipated, the down¬
ward trend that has developed in
the past few weeks, although the
volume of offerings was not large.
Comments should be addressed
to
Editor, y Commercial
and
Financial Chronicle, 25 Spruce
Street,; New York,
:y
v:_.;
Home
foreseen and
opments,.
reached in this month prior to
recently.
To preserve the
the war.
-\-y; ;s
free enterprise system, it may be
Although these results
have
said that generally the less regu¬
been
achieved
under
wartime
lation the better, but where it is
stimulus, the amazing adaptabil¬
competition, which is
widespread than the
was
materialized.
of the next few weeks, it
of wh^ch might be beneficially
affected by the expected devel¬
.
System Teletype NY 1-920
done
,
previously
healthy reaction
a
might be advisable to Consider
purchasing on a scale, giving
special
attention
to
certain
lower priced issues, the status
Incorporated
14 Wall
of
out
been
has
now
course
/ service
arose
it
pointed out,
in the market
It is
entirely different from legislation
of
the
planned economy type
which aims at throttling compe¬
tition or eliminating it altogether
as the objective of complete gov¬
ernmentally planned and directed
economy is reached.
Business
statesmanship
dis¬
tinguishes clearly between these
two types of legislation or regu¬
lation and does not slip into the
error of blindly opposing any and
all regulation whatever, as emi¬
nent
the foundation of the government
market would be Undermined.
BUY WAR BONDS!
laissez faire generations ago.
system to the
just examined, is by making
one's product or service a little
different from those of his com¬
product
good; if the present Veiling rate
were
increased by only 1/16%
Back the Attack!
really superior to those of his
competitors, he ought to secure
than a "purely competitive"
price or profit.
What is needed for assuring ef¬
fective competition here is not the
substitution * of
governmentally
standardized items for the product
differentiation of the present, but
simply the provision by enter¬
prisers of enough specific infor¬
mation about their offerings so
that consumers may be enabled to
compare more easily and intelli¬
gently, the competing products and
services, »• / * •.
: „:/ ■■
: -:Y y
Provision of such information,
like the adoption of uniform cost
statements in consumer lending
previously mentioned, by all com¬
petitors might require legislation.
But legislation of this kind to
raise the plane of competition is
an old established type which has
been associated with, and neces¬
sary to, the free enterprise sys¬
,
treat from
his
1095
government bonds in the open
market provided factor (2) holds
more
of people.
,
Another method of partial re¬
masses
rrqr:
j
1940, Iket here for internal
issues
still
government policy and
.
H. E. SCOTT CO.
49 Wall
The lull in activity in the mar-
for
administration
with leaders of
business and their legal, account¬
St., New York 5, N. Y.
WHitehall 3-4784
Tele. NY 1-2675
ing, and tax advisers, Dean Arthur
T.
Vanderbilt said in his an¬
nouncement.
~
;THE COMMERCIAL & FINANCIAL CHRONICLE
1096
the Director of the Office of War
Utilities Need Relief From
number had been reduced to
222,War service had taken 40,and a much larger number
Utilities, Mr. J. A. Krug, when-he <; 000.
said:. ;'":{ ;;;
,,:{!1', ■ •
; 000
"Power, has
little
Unnecessary Wartime Regulation
late/
too
or
never
'too
been
There is
to¬
shortage of power. This
is in sharp contrast to the situa¬
day
tion
(Continued from first page)
no
as
to many other vital neces¬
Thursday, September 16, 1943
of fixed capital excluded
from
original cost is left to the discre-)
tion
of the regulatory commis¬
industries, sions; with little present prospects
making the loss in skilled em¬ that ; they; will be inclined to
ployes far-in excess of the 23% recognize any substantial parts as
net
loss. Among the substitute appropriate for consideration in
employes are some 10,000 women rate cases. An apparent intent of
and many men beyond the draft this program is that original cost
age.
Relatively few positions are shall become the rate base of the
subject to continuing deferment future in spite of repeated de¬
and the training of new employes cisions of our Supreme Court that
for highly technical operations is costs incurred over a long period
time consuming and costly.
The of time are not representative of
had transferred to
war
small, within their fran¬ these apprehensions and chal¬
sities. I do not know of a single
chise areas.
With the passing of lenged their basis
which was,
instance in which the operation
the years this has included an in¬ roughly,
that power demands
of a war plant has been delayed
creasing proportion of industrial would increase in proportion to
by lack of electric power suppower
requirements
until
it war production. In due time the
;
would
now
normally be njore Washington forecasts of increase { ply.";;.-::. M /{I;
While the problem of adequate
than 75% of the total. The actual in peak loads were found to be
capacity has been a "major one for curtailed forces now in service in¬ present value, and that items of
in error to the extent of more
increase since war production be¬
the power industry, it is by no clude guards now required at im¬ continuing
value,;; although ex¬
gan has, of course, been far above than 6,000,000 kw, and the indus¬
means the only difficult one to be
portant stations, Substations and cluded from "original cost," may
normal because it could be sup¬ try's reserve capacity was actually
other critical locations as well as not be
solved. When the shortage of oil
disregarded.
plied with minimum investment drawn upon only to the extent of
supply became acute a year ago those performing operating func¬
Write-ups have been disclosed
in critical materials and lowest 1,000,000 kw, or 10% of its previ¬
tions.
The loss in efficiency due
many electric plants, like other
in many past rate cases and have
ous
total.
The reasons for this
operating costs.
to substitution of new or trans¬
been given such regulatory con¬
include a shift of industrial pro¬ large users of fuel, were required
Industrial
production; is:1 now
ferred employes has been appre¬
duction from civilian to war sup¬ to, change their boilers to use
sideration, if any, as their par¬
more
than
double
that of
the
coal;
This
involved. auxiliary ciable but impairment of service
ticular circumstances; have war¬
average
of the years
1935-391 ply instead of the assumed super- handling and pulverising - equip¬ •has: been carefully and success¬
ranted/all without any,rewriting,
Three-fourths of this increase oc¬ imposition," adoption of daylight
ment, ash disposal, additional; la¬ fully avoided. .\v/ • v;- .• /v///; of fixed ;
capital records. ■•"4 Such
curred after the fall of France in saving war time, and increased bor and other added costs.
All these developments in the
Now,
use of interconnections,
The first
practice could be continued safe¬
1940.
Since that date the output
with a scarcity of coal in prospect electric) power field
during the
ly for the time being, particularly
of electric .'power plants has in¬ named reason, together with two as the result of
strikes, the power period of ; the world -war show in the
and three shift industrial opera¬
light of the close scrutiny
creased from 130 billion kwhr to
companies are being told that an increase in volume of business of all
tion
proposed rate increases by
(without increase in peak
200 billion (May,-1943) or 54%.
they may be required to reconvert well in excess of 50%, with all its the OPA under the
Emergency
At the middle of 1940 these plants loads) played by far the most im¬ to oil or reduce their coal
attendant complications, success¬ Price
sup¬
Control Act and the Eco¬
The increased use
contained 41,000,000 kw of rated portant part.
plies far below the 100 day mini¬ fully handled with a trained per¬ nomic
Stabilization
Act,
both
generating capacity, about
10,- of--existing, capacity in 1942 is mum" which they have always sonnel more than 25% smaller
shown by its 12.2% increase in
passed in 1942 and to be in effect
than normal." But, again, this is
000,000 kw of which was in ex¬
found it prudent to maintain
for the duration of the war.
kilowatt hours with
large
or
..
•'
cess
of 1 actual maximum
This
excess
was
ple for expected' loads
ditional
capacity
as
in¬
be
stalled."- -h'
■hj;
But power
supply complications
in the summer" of T 940
arose
due
droughts in 'central industrial
to
areas, particularly that of TVA to
which industries had come im an¬
ticipation of cheap and depend¬
hydro-electric power. A 50%
reduction in ;rainfall accompanied
a 25%'increase in power load and
able
threatened'
drastic
aJ
crease
am¬
until ad¬
could
only 5.1%
loads.
regarded
curtailment
maximum
in
annual load factor
rose
.
in{
The
loads.
from 51%
-
.
The
material has
affected
the
power
companies like other business, but
some respects far more, acute¬
2,500,4
Copper, a major necessity .in
000 kw.. of capacity - would ■ have ly.
been needed.'
> 5
'
\ electric power supply,'; has been
and is unobtainable
except for
;; It is expected that at the end
essential war service, " and /then
of this year the power industry
only after long delays and volum¬
will; haye installed capacity .of. at
inous paper work.
Copper wire
least 50,000,000 kw, with reserve
that formerly was discarded; for
in excess of expected loads pracj
scrap is now spliced, reinsulated,
tically;;equal to its-, pre-war redrawn or otherwise fitted
J for
standard. This will be in spite of
to 58.4%.
the
increas
Without this
in load factor
ordered
of
diversion
in
additional
an
turbine
usefulness.
further
of the usual
sence
of
general problem of scarce;
In
the; ab¬
supplies/of
me-
marine requirements
ters, transformers and other.^rou¬
to
the extent
of. 2,200,000 kw',
tine
equipment, the
companies
some of it from plants already exf
have
established
exchanges
tended and partly equipped to, 're¬
pooling Of-privately.owned
.through which excess supplies are
ceive
-Mapy of .the. 85. plants
production, -particularly
the desperately heeded "aluminum.
This TVA shortage was made up
-war"
capacity to
,
by
a
power resources under which-
it.;',
sup¬
"in- from; ,as far: away as
the tip" of Florida and- the Texas
gulf coast; Th£ contributing conipanies had the foresight to sup¬
plement their-' hydro-electric sup¬
ply 'by adequate relay 'steam 'ca¬
pacity.
:} v< •'{:•}. ?
V4 * >{
-There then arose, largely from
Washington agencies,- a forecast
ply
came
Capacity- .was di^
verted found it necessary; to rej
condition old equipment schedj
uled for early retirement as far
as. this was possible with scant re-r
pqir supplies- Inter-company con-f
nections, 'included in the 80,000
miles of transmission lines of 60,-
.
disaster;! fro
of
m
.
from which, this
000 volts. and over, were
of sub¬
stantial assistance in meeting the
/widespread
shortages! with demand -for -extraordinary- power' demands in
drastic increases5 in capacity of certain areas.
*
*•
'
That the results were effective
government owned plants..' The
power
„.
'
power
industry
,
'
did
not
share
was
asserted
a
few months ago by
i
eleased and needed items
cured.
formers and other devices needed
routine
lor
temporarily increased by as
.
•
■
procedure which
replace rather than repair
pair men and parts in the dealers'
all New York Stock
1
shoulders
day's issue, together with weekly high and low
price ranges in tabular form on other 1J. S. and
V
■{.{;.
•
•
Canadian listed stocks and bonds—Monday's paper
also contains extensive "Corporation and Municipal
News. Sections in addition to dividend; redemption,
sinking fund calendars 4 and banking statistics.
•
:
,
;;
'
customer - troubles
Exchange stocks'" for entire week appear in Mon¬
.
v
"
Semi-Weekly issues for $26.00 Annually.
;
of
goes without saying that you personally want to keep
posted regarding the multitude of .'changes occurring daily in
the investment security markets,-world affairs;"Government
departments- and
bureaus,
{
-
bor needs
your
individual
tions.
Congres¬
Welfare and your-business.
many
nical
sional legislation,-labor, taxation and-transportation that'are'
affecting
The)
Chronicle supplies that information for you day in and day
out
...i -—*
v
Chronicle,
(8), N. Y;
Please
enter my subscription
to the
"Chronicle"
The
power
for
of
one
employment and other
problems have made
Index
every
curtailed
meter
I understand that I "am-also; to_ receive
three months without further charge.
is ■ in¬
review of the prin¬
foregoing
as
a
.
summary
to
companies are operating
material shortages, many
which
call
for
additional
ef¬
A
Address '
—'
4,.
___
me
□
Bill Company □
and
new
radically .changed systems of ac¬
counts .to which the companies
under their jurisdiction were re¬
quired to conform.
Such radical
changes
opposed by the util¬
were
ities but without
success.
Opposi¬
tion:
a
was/particularly directed to
change in fixed capital which
required the segregation of-"orig¬
inal:; cost,"/defined as
the cost of
existing: units of property to the
owner
who first devoted them to
public service.
large proportion of ex¬
isting ,power;> companies are the
of a long series of pur¬
chases, mergers or reorganiza¬
tions, some of them v covering a
period of more than fifty.years.
Many of the old financial records
have .long since ceased to exist;
reference
to poles, meaning that
present/records may show costs
••
less .than
those
in service.
now;
cent
of
units
the
Present and
re¬
accounting, practices differ
the
primative
materially ; from
methods
of
the
early
but
the regulations governing original
cost-.determinations
mit
of
corrections
tries lor
from
years,
do
obvious
such
not
per¬
original
en¬
deviations
current
practice.At any
not permitted if
original cost would thereby • be
increased?' The'job is projected,
rate
"they
are
-
apparently,
on'
a
one-way
street,
panies
corded
Just
the'electric
had
their
before
power
Pearl
com¬
maximum
re¬
employment,
including
288,000 persons. In June, 1943 the
has ./been
time-consuming
annoying to the utilities af¬
1937
and
fected.
It sets up
method
a new
of, ; providing
for
depreciation;;
based on the assumptions .that the
useful, life - of utility facilities is
known, and that depreciation ac¬
crues ; uniformly
throughout this
life) period? ; Although the, first
.
assumption * is not supported by,
utility experience and the second
is
/
contrary
to..; findings
Supremek: Court;; the
are
of ; our
companies
expected to prepare elaborate
of
the
lives
estimated
classes
of
of
property and
Ihe monthly or annual accruing
depreciation of each class.
They
know that the
reserves
created
so
would ultimately reach a size that
has been found by commissions
and courts to exceed
existing de¬
preciation ;;.-a;'
.'.: ■;;; V.;');}
'
It is further
proposed by certain
commissions, particularly Federal
Power {Commission,to
compute
accrued depreciation by the re¬
troactive application of this new
age-life rule although it is incon¬
sistent
with past prescribed ac¬
counting methods and the insistance,; already referred to, that
fixed capital records of the past
shall
be
not
various
revised.
All
these
apparently aimed
at lower rates through a lower
rate
base; and
otherwise; have
moves,
.
taken " much
engineers
time
and
of
executive's,
accountants
away
from the
an
pressing task of insuring
adequate supply of power to
industries
and others, again
immediately applicable
icsults.
There might be less con¬
cern over FPC
activities if they
were restricted to utilities active¬
war
without
,
ly.{engaged
But
merce.,.
.
in" / interstate com¬
when,- for example,
AL'-'"{/ ■jurisdictiona is{ asserted;
basis!{>?;'{ /{*•";•
company {
engaged
in
oyer
a
intra-state
To the extent that this program,
notV directly
authorized by - the
distribution because it has
Holding Company Act of 1935 on
which it is based, is intended to
terchange power contract with "a
neighboring company which in
eliminate y
"write-ups"
opposition
its timely execution to the ex-
"there
to
so-called
should
little
be
.
tion of known cies.
chase
errors
deficien¬
or
When an.arms-length.pur¬
of utility property subject
to
regulation has involved a cost
higher than that recorded on the
books of the seller, and the trans¬
action "has
had regulatory
ap¬
proval
as'
prevailing
being-;: consistent with
practices,!, the • pur¬
chaser's record of cost should pre¬
force.
ac¬
.
vail.; against arbitrary elimina¬
tions.
Any ■ contrary procedure in
duced
new
counting systems promulgated in
various
outcome
tar
Another feature of the
tables
;
.
,
A very
But that is not
Harbor
Bill
effect
into
story-for, although
needing increased personnel, the
present • greatly expanded service
is being, handled by a much re¬
adequate service.
the end of the
Company
sions;:-put
read¬ dent that/such write-ups were ar¬
bitrary or intended to reflect in¬
flated /values and not for correc¬
fort to insure .the maintenance of
at a cost of $26.
your
With
neglect of maintenance that;will
some, time have to be made good.
due
year
;
cipal difficulties-under which the
v
eral-Power-Commission and many
of the state regulatory; commis¬
ings, and. together with shortages
of repair: material, have ;led ; to
tended
Spruce and William Streets, New York
.
demands upon utility tech¬
and supervisory v organiza¬
Lack of gas; tires and'la^
bor .have
I
The Commercial & Financial
utilities.
the
broad
the
business units in areas where la¬
f •
It
Government
to
125,000,000 of such appliances in
service, the job is not a. simple
ohe.: Special industrial jpower en¬
gineering problems," the supply , of
defense housing projects; the "se^.
curing of war contracts for small
community
relations,
many;'such
diverted
has
shops
on
The scarcity of re¬
older models.
Financial, Statistical, Editorial and News Information.
Daily high, and low prices
supply of
normal
yond
II
Approximately 5,000 Pages Yearly of Business, Banking and
V;,
■
domestic appliances has called for
would
.
■
repairs of existing units far be¬
Section I
Thursday Issue,: Sections I and
~
50%.
as
The exhaustion of the;
Complete Chronicle Subscription Includes
of difficulties
In 1937 the Fed¬
and distractions.
capacities, by taking advantage of
favorable*5 external temperatures, some ;<3f them relating to pres¬
neat absorption characteristics of ently • surviving; property.'
In
brief overload periods, air cool¬ many cases," also fixed capital re-'
ing, and even overloads that were tords do not show-the cost of
known to result in some shorten¬ present units but rather that of
since
replaced: by
ing of insulation life but not ex¬ units ; long
pected to cause failure during the others through charges to main¬
Such; for example, has
period of restricted replacements. tenance.
In
some
cases
capacities/ have been the common practice with*
been
: Monday Issue,
load
growth has led
to intensive studies of possible in¬
creased
loadings
beyond ; rated
much
A
are. se¬
Inability to obtain trans¬
)
not the whole story
,
the
past
would
;
have
-
definitely
turn has
which
a
!
in¬
an
similar contract under
power
may
flow into an¬
other
state, the field of disturb¬
ing regulation is so .broadened as
to add substantially to the com¬
plications discussed herfein.
Since
power
Pearl
Harbor
.
.' V
electric
companies alone have de¬
voted "<
more
hours
to
than
9,000,000 manoriginal cost aqd
SEC "death sentence" studies, ex¬
clusive
FPC
of
the
necessary
super¬
And qf
the 300 original cost studies in¬
cluded in this ' work, which ac¬
count for 75% of the direct labor,.
visory
and legal effort.
two-thirds
and will
are
still
incomplete
require the further
penditure. of much time by
ex¬
em¬
discouraged, the,, consolidation of ployees, executives and attorneys.'
properties, and"the well- Approximately 4,800 employees,
known
improvement of service or moie than 2% of the dwindling
and reduction of rates resulting staffs of all privately owned elec¬
tric utilities, have been engaged
therefrom.
The disposition of those parts in this work between December
small
Wolume 158
Number 4212
THE COMMERCIAL & FINANCIAL
CHRONICLE
8, 1941, and August 7, 1943, while
a much
larger percentage of util¬
ity employees has been affected.
•
v
•A force
of this
size could
man
a
large part of the air fleets that
recently been raining de-
Detroit Judge Tells Receiver To Ignore
OPA Ceilings In Sale Of
Properly
Judge Guy A. Miller of the Detroit Circuit Court
have
'
Aug. 26
instructed the receiver for a tool and die
; struction
plant to sell machinery by
on
Berlin
and
other
accepting "bids of any figure whether above or below any
German industrial areas.
alleged
selling prices fixed by the Office of Price Administration."
r:
It is obvious that the
Indicating
aceumuthat Judge Miller thus acted in an informal
> lation of
decision, the Detroit
above-outlined burdens,
"Free Press" of Aug. 27 reported the
Judge as adding:
many of them wholly
on
•
•
unnecessary
for the time
being, upon curtailed
utility organizations, striving
-valiantly to supply an ever in¬
creasing demand for
power,
"The
reason
for this instruction <£
is that the OPA is
a
.
.should
have
a
tendency
to
dis¬
courage
cheerful, maximum ef¬
That - such tendencies are
jret disclosed is a tribute to
ministrative
as
office
this court is
tive
statute,
no
resting
aware
proclamation.
Federal ad¬
so
far
upon execu¬
There
is
no
act of Congress, known
—
to
this
OPA
court
which
gives to the
jurisdiction over the
any
sale of property which is
properly
in the hands of officers of this
court."'
-.:
The OPA office refused to dis¬
Judge
cuss
directly,
the
but
fact
called
that
attention
several
the
pointed
as
ner
Manufacturing Co., and
out
of
the
fact
that
one
I
even
in
.
lyin
unquestioned'
maintained
the
.
face
be broken in
When
it
adherence
to
place
pointed
his
the
receiver
matters,
continuing
evidences of distrust and
antagon¬
If the present service is to
I be not only maintained but ex¬
ism.
panded,
•
?
»
is clearly imperative, a
as
of
encouragement is sorely
The logical first pro-
needed.
cedure is to relieve the utilities of
all duties and distractions not di-
: rectly related to their
ing to win the
job of help¬
w:VV i
Included in the relief
category
should be the original cost studies
■
•
and
the
war.
other
:
complications
•
and
new.-
accounting
referred
to
herein
the
reorganization and reCapitalizations to which operating
i as wed as
holding companies will
be subjected if the "death
senf
.
tence" activities of SEC
tinued
that
unabated.
the
needed
Federal
relief
laws and
;
;
.
..
con¬
.
extent
relates
secured
by< Congressional
action
through which FPC and SEC ac1
tivities outlined herein would be
suspended for, the, duration Qf the
immediate prob-f
war and until its
The
•
of
scope
this
?{■:>.:"•
•
moratorium
legislation also might well be
;
to
supplementary
lems have been solved.
.
:
are
the
commission regulations, it can bh
•
;
To
ex-
tended
beyond that
heretofore
•proposed to include regulation by
.
either of these commissions of the
.
:
activities
■
not
are
of public utilities that
directly engaged in ini
BACK THE ATTACK
terstate commerce, at least if the
; proportion
of the energy
pro1
i duced
by such utilities that may
:
:
-.
'•
ultimately find its way into
other state is unimportant. In
the
suspension
cumstances
v
;
under > such
might
be
manent
without
to
interested
anv
made
known
an-j-
fact,
WITH WAR BONDS
cir¬
perT
,
hardship
parties
other
j than the regulatory agency whose
I job would be curtailed...!'
■
j.
,
'
Both
FPC
and
SEC
,
have
conf
•tended
:
that they are now bound
to continue the activities in
quesf
:
tion because of the requirements
of
statutes
or
regulations over
they have no control, alj
though such contentions are only
; partiallyv supported
by "existing
-legislation.
Other than for such
; mandates, convincing reasons for
which
j aggressive
T
.
:
.
-
prosecution
of
such
work; under present urgent
man-
>
;
power needs have not been advanced. .The release for. the' dura-
tion of the hundreds of employes
of these commissions who are en-
gaged on the work to be sus¬
pended under the proposed moratorium would be of material help
■in the present man-power short-.
•
v.
r
:
i
age.
"
.
Such
>
•
•
;
■
has
moratorium
a
,
terests
others
and
farmers
;
'•"/>/
■J:v
ample
precedent in the relief granted by
Congressional action in the de¬
pression years of the 1930s to
•.
lated to such
whose
personal and
were
war
activities
;in-
unreas
are
shared by public utilities. Relief of the character provided by
now
the proposed moratorium has also
recommended
been
state
.
and
agencies.
tion would
national
Its
not
by
certain
regulatory
prompt authoriza¬
only help to
im¬
present operations but also
would1 relieve .apprehensions ..as
to the motives behind the pro¬
prove
gram
lates.
ergy
to which the moratorium re¬
! It would promote new en¬
and enthusiasm in the prose¬
cution
of the war*.
LIFE
INSURANCE
COMPANY
Springfield, Massachusetts
Bertrand
J. Perry, President
out
that
instructions
:
; note
the
disposing of assets.
was
indefinite-
of
of
partners feared OPA rules might
loyalty of
'1 cannot be
/
ap¬
grew
in
Miller
OPA will be invited to
and
that
was
receiver for the Leis-
an industry with a
outstanding past accomplishmepts. But full co-operation,
.
the
ceiling
in
record of
.
Federal
Judge Miller's instruction
given to Miss Una Dunlop,
Judge
said:
"When the highest bid is
received,
and if it is over the
ceiling price,
to
regulations.
forts.
not
jeopardy,
decision
Courts have upheld price
might
.
Miller's
show
any
the
sustains
law
executive
or
come
statute
clamation."
pro¬
;
'
V.
.
He
the
closed
the
statement:
tinues
from
to
the
"If the
take
state
discussion
OPA
authority
with
con¬
away
through executive
proclamation there won't be any
48 states left."
Rates
The Future Of Interest
ernment bonds would not
CLEARY,
M. J.
The
President,
a
Northwestern
controlling factor.
If
on offerings
is substan¬
rate
(Continued from page 1087)
eration, is
something
ments.
expansion is so colossal
the risk of not com¬
Credit
that
run
we
in that
London
hundred
and
two
and
prehending its implications. Some
years
ago,
when Great Britain
many users of
was the money center? How about
credit speak of money as though
the very old adage "John Bull can
it came out of a barrel, rates of
stand anything but a 2% rate?"
interest to go .up when the bottom
barrel
the
Have
becomes
allowed
be
tions
to
and
thinking for the fact that every
newals and replacements in ad¬
credit extended creates a debit,
vance of actual disbursements as
that for every dollar borrowed
an allowable deduction when com¬
there is created a new owner of
a
dollar?
Are we still talking puting taxes? -Will the volunteer
about money and credit as man¬ army selling Government bonds
kind
did
when
it used "hard" in the periodic War Bond Drives,
and month to month on the clearly
money
exclusively, before the
devised
installment
plan called
perfectly astounding invention of
Allotment, do a good
double-entry bookkeeping? An in¬ Payroll
vention not heralded as epoch- enough job to insure a colossal
buying
power
after the war,
through accumulated savings and
making, a slow growth over re¬
cent
centuries,
buttoday the
instrument creating an expansion
of money
postponed
spending?
Will the
postponement of spending be of
sufficient
proportions
to
hold
in its true sense, upon
solving of which our future
dependent.
Is credit not directly dependent
the
war
produce." During the war, we are
consuming natural resources, and
wearing out industrial equipment
and transportation equipment at a
rate never before dreamed of. We
have created new plant facilities,
vastly improved production tech¬
nique, and the spur to new in¬
vention and to produce great re¬
sults is incalculable.
What will
reduce
and
scarcity of things?
Can the
sound capital?
Quoting Dr.
Anderson: "Capital grows as men
consume less than they currently
upon
prices"
"war
down
is wholly
public be made to real¬
jobs for the soldiers, when
demobilized, can only be available
if we have buying power then to
ize that
"buy goods which the
diers help
produce?
returned sol¬
/
;
Upon these questions and many
more like them, the credit of the
are
to do
that * in
any
power
think
I
sion of the
M.
tial, will require an atmosphere
friendly to work and enterprise.
Dr. Anderson states: "One of
With
in recent years.
a
as
an
might
When
community I probably
thorities
essentials for economic
progress
is that capital should
grow
more rapidly
than. debt."
How much ground have we lost in
this race during the war, all fac¬
tors considered? A vital question.
the great
that
I
know
of,
which I feel very
keep money rates in the general
list of some¬ neighborhood of present levels.
where between 50 and 100 elderly
HON. ROBERT HALE,
couples
that
had accumulated
from $6,000 to $10,000 or $12,000.
Representative in Congress
In addition to this
they had a
from Maine
small
home
and garden. >, They
were
happy,
contented people
with no fears about the future.
Under the then prevailing condi¬
problems
the
quoting Dr. Anderson's
"I have seen calculations
Again
Iron
Age)
has
Dr.
and
ural.
given me
which would indicate that the ca¬
ment
has
pacity of bank credit to expand
bilized
.
great, if no question is raised
very
as
credit
the
to
ment and if there
disorders."
the
are no
currency
Can anyone
statement
that
its
ance
Has
the
unjust,
or
can
element
into
of
fear
suffici¬
account
discussion?
interest rates
are
To
a
what
extent
psychological
How much has the "state
affair?
Gov.
L.
Saltonstall
I
am
a
possibly impon¬
derable
questions, occur to me.
What effect upon both short term
turns, there is not much differ¬
ence
whether the interest rates
and
are
mind"
of
the
debtor
and
the
creditor to do with interest rates?
Several
more,
long term interest rates was
caused by the abolition of interest
on demand deposits at bank?
If
it is
true
lower
as
that interest rates tend
a
country becomes pros¬
low
or
a
else
to
our
productive sources, or
system of living will be
completely altered. When it does
into productive sources, in¬
terest
rates
naturally
will be
and rich, have we allowed
sufficiently for the fact that we
have in this country most of the
riches of the world, measured by
productive power, invention,
transportation and electric power?
In a creditor nation, how high a
rate of interest, with the
com¬
pounding of interest at work, is
safe?
Compound interest, year
types of securities.
after
year,
generation after gen¬
higher, and banks and insurance
companies will invest in those
As I
said, this is a most difficult
subject, but one that is fundamen¬
tal and of interest to all of us if
we are concerned in making our
post-war country and living worth
while.
"I
think, too, that
such
to
a
return
financial
orthodoxy
would
Everit
B.
'■
greatly
strengthen the
Terhune
fabric of con¬
•
government finance, in
the future of currency, and in the
whole
economic picture," — to
which
sentiment I hereto
sub¬
fidence in
scribe.
program.
much for your
Mr. Fra-
and for the copy of the article
interest rates by Prof. Ander¬
which was enclosed. Mr. Frahas asked me to acknowledge
This I do, with my
reading
about
apprecia¬
of
noteworthy
article
opportunity
another
for
tion
a
subject of more than pas¬
a
sing interest just now.
A clear
understanding of the factors in¬
volved in today's financial policies
will
it
Robert Hale
is
promote clear thinking and,
hoped, constructive action
phase of the national
Dr. Anderson's article is
value in this direction
and he states a very complex case
this
upon
I think that Dr.
Niagara Share
MUEIILNER,
problem.
of great
Corporation of
Y.
appreciate your invitation
comment on the views of Dr.
We
to
Anderson and we agree
is
it
that
a
KURTZ,
However,
we
wonder whether
intelligently
not this issue can
or
Philadelphia
\
kind of a post-war
shall have to face. All
know
what
world
we
we
know is that we
shall be con¬
fronted with the highest
debt in the history
national
of the United
States, due to a war of an
ity never known before.
Anderson's in¬
teresting article "The Future of
Interest Rates"—with a great deal
of which I heartily agree.
I
would not presume
with him
on
to argue
the academic points
immens¬
agree
thesis.
I
do
not, however,
with his conclusions. I think
ever
before.
in making this possible
is commendable.
:
L. ROWE,
Los Angeles.
'u
;
Dr. Anderson's article is full
of
My
of these experts
who write this pedantic material
is that they see too many bogey¬
men
at every turn.
We simply
now have in this country a condi¬
criticism
only
that
tion
is the
antithesis
of the
roaring 'twenties.
differentiate
serious an issue to
patriotism on the
lower
bonds.
Perhaps we may suggest to Dr,
Anderson to explain to the readers
bank
money
source
before
Isn't
this:
"Chronicle" the reason why
money
instead of thrift
has
become
the
main
last decade
the outbreak of this war.
the real dilemma simply
of capital in the
that thrift reduces consum¬
purchasing power for
goods and increases
higher rates of interest on Gov¬ duction facilities which in
of his
than
more
men
Your part
Whereas every
Tom, Dick and Harry was in debt
As long as this life struggle is
up to the hilt by 1929 we now have
still on, we cannot quite see the
a condition where the individual
importance of advocating a raise is cash
happy and debt free. Last
of the interest rate now.
Some¬
year individuals set aside 22 bil¬
how, it appears to us that Dr. An¬
lions
while
corporations
were
derson is not giving credit to the
piling up 14 billions. Private debt
American Nation by saying that
redemption is moving ahead at an
patriotism by itself won't take
appalling pace.
bonds with present low coupons in
The fact that the public debt
adequate quantity. This war seems
of the
I have read Dr.
fied
don't thought provoking material.
discussed as long as we
be
grounds of a higher or a
President, The Pennsylvania Co.
coupon rate on Government
For Insurances On Lives and
Granting Annuities,
I trust that more articles of this
type and caliber can be expected
in the future,'as we now need
authoritative discussions by quali¬
■
to us to be too
WM. FULTON
simple and logical terms with¬
I believe, running into the
usual risks of oversimplification.
in
out,
Maryland, Buffalo, N.
.
go
perous
follows:
little higher.
Eventually, capital must go in
again
his
as
little
important is to eventually balance
the budget. I know that cannot be
done over night, but until that is
done and business incentive re¬
of
the
article
which reads
will
is most
as
sentence
of
/
ernment securities. What
in
given
the
skeptical
whether anything will be gained by
putting up interest rates for Gov¬
t i 0 n
last
"go bust."
cause
ently, when interest rates are un¬
der
with the sum-
company,'
etc.,
in
country :
interest
m a
does, every
bank, insur¬
is the solv¬
"Fear", 'whether just
getting out of hand,
taken
securities
fundamental
the
the
fiscal
it.
DR. FELIX
impressed
of
drop, for if it
"Fear" is the other risk factor.
been
prices
time
reform
ser
mendously
let
the
of the debtor?
ruin.
can't
refute the
cornerstone of credit
ency
sta¬
to
to
whole
son,
with him'
fundamental issue to
rates
than
I know whether or not capital cre¬
have ever be¬
ated by bank credit expansion can
fore had.
serve as a substitute to the
real
I
was
tre¬
savings by thrift.
7"v-
them
now
afford
Govern¬
of
and
not
to be the
proper
Childs
F.
C.
ser,
:
information
on
Govern¬
and to take Government bonds is
;
Anderson's article
more real factual
unnat¬
essay:
seem
war
do
days
on
TERHUNE,
have
been
"New
policies,
these
Thank you very
to say that I have never
qualify as a fiscal ex¬
I regret
pert
rates
ment's
Deal"
v
few
interest
years
of
Govern¬
our
letter of September 1 to
been able to
past
the
duration
Treasurer, Shell Oil Company
Anderson is one
of the best writers in the country
Vice-President, Chilton Co., New on economic subjects.
York City (Publishers of
that for
me
exists
tainty
regarding
confidence was
unfortunate part of it.
is the
and
uncer¬
W. WATSON,
justi¬
fied.
Their money earned them
from 5 to 6%.
Their taxes and
other costs were negligible. People
similarly situated today have no
assurance of future security. That
their
EVERIT B.
and onef about
ignorant. It has
always seemed
to
since
and will continue to
can
interest
o w
rates,
could have written a
that the credit expan¬
'Twenties was an im¬
of the most difficult
1
probability of a War
than we
originally ex¬
good many years ago.
ev
has
already
done
at
adopted
Treasury
the
shorter
t h
what
attempt to guar¬
area a
subject of interest rates is
The
in
recognition of
program were pos¬
that I
tions
well,
However,
referred to the fact pected, I am inclined to think
practiced law,in a country that the fiscal and monetary au¬
I left that
com¬
so
enterprises offered a
new
I have often
Massachusetts
one
doing
relations,
k
instead of just poten¬
established
not
\
unanswerable
wealth real,
if
even
and
were
antee
par
or
possibly even a
premium for the present holders.
J. Cleary
;
One of many
As suggested by Mr. Anderson,
questions. My own portant factor causing the prob¬
lems of the 'Thirties, but it was if individuals and institutions are
conviction is that the wealth of
child's play compared to our post¬ to
continue
to hold long-term
this country cannot be measured
war
problem—to solve the war Government securities, which the
by cold statistics, but that the tab¬
credit expansion. This is why Dr. Treasury surely is interested in
ulation should include inventive
Anderson's
article
is - of
such having them do, the yield will
power, manufactruing technique,
enormous importance.
have to be such as to provide for
distributive
and
selling ability,
the necessities of the investing in¬
educational facilities, and other
HON.
stitution and also to be reasonably
intangibles, and that we have no
attractive to the investing indi¬
LEVERETT SALTONSTALL,
adequate conception of our great
wealth as a people. To make this Governor, The Commonwealth of vidual.
the net result be?
old
the
constitute
public
of
In effect, his proposal
be viewed
of
would
sort
if such
sible.
lost
been
has
people
most
;
that
even
which
money
ture, depends, and, in my opinion,
interest rates are inextricably in¬
will agree
tions
a part of
earning
least
the
.
think Dr. Anderson's sugges¬
poorest
at
restore
,
banks and other financial institu¬
have
will
to
Government, our economic struc¬
tertwined.
panies
great number,
we
peo¬
ple
presently high rate of return?
be
I
C. F. GUILDS,
" V
permitted to convert into higher
C. F. Childs & Co., Chicago ;.'•*
rate issues is absolutely unfeasible
politically and would be creating
In general I share Dr. Ander¬
preference
for
the
commercial
son's j views.
If
age.
they
hard time to
a
and that thrifty
issued long-term Governments
own
old
had
tion facilities
make money
tion that the holders of
providing
their
for
observation that existing produc¬
when
I
wo¬
men
explained
better
money
of idle
by the
phenomenon
System.
to
in
men
might
the
Isn't
preferred to keep their sav¬
ings unemployed instead of risking
investment
in ' new
enterprises,
our
interest
re¬
expense
ought
we
\
habit of thrift?
may
program
consumer's
account of the
operations of the Federal Reserve
general
good.
Surely
continue
a
on
place an almost impossible burden
of support of the existing market
on
the Open Market Committee
of
rather
but
Such
rate.
production if
demand declines
await
hopes will be the maxi¬
and
coupons
what he
mum
the
Will corpora¬
bid for risk money?
made allowance in our
we
to
When will borrowers appear
threat.
a
com¬
affairs
pany
economists >•; and
of
viewpoint thinking not of
own
our
overlooking low
Edinburgh
in
hundred
one
to ponder
think
abnormally
rates are
low, and are we
rates
higher
curtail
tially increased, the investor will
naturally look for successively
I
Are we too prone to
about.
that interest
•"
;■:
sincerely hope that Mr. Ander¬
son's belief with reference to in¬
terest rates will materialize. I am
capital funds, whether for longterm or working capital require¬
depend for continued operation on
consumer's demand and have to
the
today
the
Treasury's
Special Reference To The
Borrowing Policy
attract
investments,
I doubt if the interest rate is
vast amount of new
as
Mutual Life Insurance Co.,
Milwaukee, Wis.
With
Thursday, September 16, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
1098
er's
sumer
con¬
pro¬
turn
touched 148 billions last month is
not serious.
with
economic
post-war
debt at
If
Provide this country
harmonious
an
politicial
environment
and
and
our
boom will cancel
amazing pace.
this
we can
somehow bring Soviet
Russia into the family of nations
so
that
we
can
tie
our
domestic
and world commerce to Mr. Roose¬
velt's
we
devalued
gold
dollar, then
shall have the mechanics for
a
world recovery,
the like of which
commercial history has yet to re¬
cord.
It will then be time to take
cognizance of the future trend of
v.. !K ^Iwu-id "tV
Volume 158
Number 4212
interest rates.
the
then lighten
industry, in¬
sales
in
tax
its
thereby restore the
to a high level. Un¬
producers
and
t profit motive
der these conditions the
of
wealth
will
omists
us
on
national
a
place,
Let
burden
tax
itiate
THE COMMERCIAL & FINANCIAL CHRONICLE
be
.
not
are
However,
:
full
in
this
I
agreement.
say:
My
can
concern
at the moment is that
the
be
it is
going down
today
annual yield is
4.3%, but we cannot invest
in safe municipals in the present
conclusion at the earliest possible
date and (2) that a post-war econ¬
market at much better than 2V2%.
The declining interest rate has
war
brought to
a
usual, with those who preter in¬
be planned which will not
only absorb the shocks of conver¬
ganizations to remodel
sion
ium
Under
ship
Mr.
Roosevelt's
Federal
while
individual
liquidated.
in
leader¬
omy
our
being
Our debt structure is
central
also
the roaring 'twenties. Reverse this
time
domestic
trend
and
jobs
available to
know
it.
Give
jobs
bring Soviet
doubt
Russia into the family of nations
so
that
an
international
gold
standard mechanism
at
the
full
workers
good
and
wages
I
worry
tries.
be made
can
if
will
we
have
Another
make is that I have
interest rate. As
with
be
the way to new
on
achievements!
Unlike
this
shall
and glorious
new
ment
'
"
the
gained
'twenties,
through
individualism.
advance¬
an
controlled
The New Deal de¬
credit for laying a founda¬
which, with refinements, can
achieve orderly cooperation both
serves
tion
at home and abroad.
Anderson
its
CRANDALL
MELVIN,
bound to work higher in the near
future.
is
It
that
true
probably
in
seven
eight
or
years
the y
will
work'
higher,
but in view of
the
tremen-
dous financing
job that
the
Treasury still
,
has
to
don't
do,
I
see
how
they
can
per¬
mit
them
to
higher.
go any
I don't agree
with
him
that
Crandall
to
Melvin
aren't
enough
attract
well
In
a
that there is
appears
tance
the
on
reluc¬
a
part of the people,
minds as to
to
the
Government is
the effect that "fac¬
would
give im¬
elsewhere."
this
respect
the
record
itself. True, in some
increase
to
sary
because
of
the
the
neces¬
work
week
short¬
manpower
but the soundness and effi¬
ciency of the present work week
is unquestioned by the Govern¬
age,
than
tion.
which these
formerly calcu¬
Of
3%
late
interest
ing
in
months, of
Government
realize
like
the
return
days when
of
the
the
i
p a n s
in
long
To
holding
When
such
theories
referred
one
dobut arises in
grave
to,
a
a
minds
our
whether it is not
to
as
advocates
one
the
as
camou¬
ever
their
old
for
to
improve
steps
If
this
situation.
honest
an
the
general
■
IIOGAN,
essential
procure
have
have
I
read
Anderson's
ture
of
Dr.
no
article
Interest
"The
on
Rates"
the
-
that
the
rate of interest
a
Gov¬
pro¬
new
which
I have read Dr.
Financial
Chronicle
:r
I
hold
possible
Dan
W.
pro¬
A
have
sufficient
time
to
read
it
of
depends
just
and
of
as
much
bors
and
raise
on
cost of
the
as
who
is
a
man
While I
clamoring for a
advancing
account of the
living.
♦
I
have
read
Dr.
Anderson's article
have not had the time
of
Interest Rates"
on
with
Rates
Special Reference to
the Treasury's Borrowing Policy,"
sections of the address
by Mr. Benj. M. Anderson in as
complete detail as I should like,
able to follow
it
that to express an
opinion with respect to Mr. An¬
derson's
interest
views
discussion of
on
the
would
rates
a
future
involve
of
the
subject, concerning
which learned, and eminent econ-
have
of
course,
this
the tendency of ob¬
capital in this form
more
security which, apparently, is
I believe
a
we
savings and loan associations,
2,261 State chartered savings and
loan
associations
and
loan associations
tem alone serve
vestors and
"Since
are
going
to
long, hard road ahead to
we
incurring.
similar
and
in¬
stitutions, 23 insurance companies
and 22 savings banks. The savings
lished,
some
in
the
Sys¬
7,000,000 in¬
borrowers.
the
the
System
12
r
was
regional
estab¬
Federal
Home Loan Banks have advanced
$1,044,000,000 in
their
members.
$92,000,000
reserve
credit to
Approximately
was
outstanding
on
July 31."
fM
as
new
yield
with
To1
sounds
a
it
layman,
rea¬
sonable, but
Lintor
whether there
are
tions
which
I
do
complica-
not
■
foresee
is
another matter.
On
the
whole,
I
Anderson's article-is
ful
and
stimulating
the
feel
a
Doctor
help¬
very
To
as
my
to
one.
probabilities
the
utmost importance to many types
of
institutions, life
insurance
companies in particular.
.
although
ordinary
has
layman
devoted
The
as
there
great in¬
I
Dr.
himself
as
to
not
one
sent
be
who
economic
repre¬
has invested $40,000,000 in
municipal bonds through the last
forty years. We used to have an
average
Benjamin
titled
"The
M.
the
article by
Anderson
Future
of
He has
a
coming
HARNISCIIFEGER,
have reviewed
en¬
promotion to report. Or
up.
important to him.
and
after 7 at
certainly
seems
to
be
sound
reasoning behind the
opinion he expressed.
I
my
am
somewhat reluctant to
opinion
on
subject but I
unhesitatingly,
yield of about 5V2% but state that I,
personally, do not
do
your
best to avoid Long Distance calls
night, for the sake of millions of Joes
and
Josephines? They'l} appreciate it.
BE
L
give
this very involved
can,
week-end leave
Interest
Will you
there
a
Or it's his mother's birthday.
Evening is about the only time he's free to call and
it's
Rates." with considerable interest
some
organization that I
.
President, Ilarnischfeger Corp.
which the
would
well
W.
some
are
.
M.
interests.
With
me
and,
our
to sub¬
issues
"The Future
terest,
to.
would
stabilizing
Fed¬
permit
bonds.
mind
Benjamin
to review "The Future of Interest
seems
economy
investing which
in
1,468
their,o 1 d
who la¬
High Chief Ranger, Catholic
Order of Foresters, Chicago.
Loco-
Cleveland, Ohio
men,
assist
of
future of interest rates are of the
motive Firemen and Engine."*•
trend toward
consisted
an
to
higher
upon
living is
finding that he needs a raise
now
D. B. ROBERTSON,
Brotherhood
a
would
30
propo¬
scribe for
line
TIIOS. II. CANNON,
"
be
on
eral
do
have
bonds
are
from the first page to the last.
President,
June
long-d ated
govern ment
M. A.
who
person
which you present.
full of wonderful
material
"Membership of the System
increasing the rates there might
a
the
sal
earnings of other invest¬
his interest income for
only complaint is that I don't
also quote:
banks holding
ments.
At this time I want to congrat¬
ulate you on the fine publication
my
home-
and
judgment
to
because
out
with the
dence in Government securities.
It is "chock"
and
in formed
buy long-
such rates
Hogan
institute
conservative
thrift
ar¬
therefore
not
will
est
to instil in investors confi-
the
on
not
am
banker
the case, is
sound. In fact,
companies of the country. I also
feel that, if it is at all possible,
gram
of
financing institutions of the Sys¬
tem
have
almost
doubled, Mr.
Twohy said. From the advices we
twice.
*
.the present
rate of inter¬
every
sources
of
Anderson's
a
bonds in order to protect not only
the banks but also the insurance
should
admission of' five New
Jersey mutual savings banks into
the System.
Since 1936, the re¬
ticle,
term bonds at
Government
of
part
Philadelphia
issues
bear
their
the
in
LINTON
s u r
not
to
entirely too low and by
to he
rise
a
assets,
"The
Future
of
Interest
suggestion Rates," in the Commercial and
should
on
are
reported
members'
Lewis H. Brown
I
ALBERT
a
doctor's
bankers
rates
theory that the interest rates, in
in
25%
Vv.
Insurance Company
Fu¬
with
opinion is that the Govern¬
continue
in agreement with the
the
President, Provident Mutual Life
great deal of interest and I think
country would
interest
am
by
doubt
M.
Benjamin M.
be jeopardized.
the
comparatively low interest
registered
was
to
is
down
I
30
public
the event that
ment
June
Federal Home Loan Bank of New
right in say¬
ing that the most important step
Trust Co., Oklahoma City, Okla.
the
Our
a
rate.
$6,000,000,000
President, City National Bank &
permitted, the future solvency of
the
have
that short maturities
the
x\\
higher rate, in
of
interest, it has always been
the practice
passed
make people want to own them.
not
banks
have
mark, James T\tfohy, Governor of
the System, announced on
Sept. 4.
By districts, it is announced, the
largest gain in the year ending
Government securities which will
DAN W.
he
was
eral ;4
due
bond
the 3,774
institutions of the Fed¬
Home Loan Bank System
member
York,;vwhich
sales tax.
a
With reference to the matter of
of
are
is to restore
high yield issues with
bonds.
by enacting
t
the past fiscal
that Dr. Anderson is
effort
long
the
in¬
over
resources
reason¬
able
past decade rather than
for
subscribe
substantial
a
in taxes should be secured
crease
total
cer¬
investment.
lowed
to
is that I believe
Icreasing 7%
year,
cur¬
rendering
present issues
new
pre¬
The second point
Resources Higher
there
flaged attempt to shackle labor
and destroy the social gains of the
dated Governments should be al¬
posed
vailing policy.
are
of
banks
to
This is, of course, diffi¬
accomplish with the
Home Loan Banks'
tainly be em¬
ployed what¬
history as one of the
great achievements of the war.
privilege
that
In my
liquidate the obligations which
pro¬
ductive of any
it,
bound
Under the most favorable condi¬
the
states
to
tions,
be
are
going to be necessary.
can,
should
in
going to
when
cult
have
run,
a
reduce government expenses to a
minimum.
financing
the
we
opinion, the starting point is
Government
in
in
are
to have chaotic conditions.
taining
nt to
e
something is done,
of
credit
i d
c
finances
■
our
view of the present chaotic condi¬
of
o n
bank
new
unsound condition and unless
tions,
ex-
down
investors
him
old
present
ernment allow
for
good
could have its
money
American labor will doubtless go
■;
100%
which
I would
LEWIS II. BROWN,
good.
interest.
am
loans
fair return by way of interest.
tail
handle the debt that deters them
I
course,
less than 2V2%.
us
Government's
very
assump¬
have been prodded into invest¬
ment and the
from investing and not the rate of
<
lower
records
splendid production
being
established
by
great many of the
financing.
Personally, I believe that
a
ideas in
upon
3V2%, and if the present
enormous
instances it has been found
question in their
how
no
Government contracts
on
as
speaks for
in¬
vestors' funds.
It
3y2%,
of war, and in particular
President, Johns-Manville Corp.
might make the Treasury a strong
Dr. Anderson's article on the
advocate of doing away with the
future of interest rates is most in¬
forty-hour week for the duration
teresting and informative.
of the war, and of 50% overtime
I do not see how anyone can
payments beginning at 40 hours believe that
interest
high
invested
will not realize the basis
cut it to
impetus to the move for
in spending even in the
when he states
rates
the
prem¬
midst
President, The Merchants National
I can't fully agree with Dr.^Anderson that the interest rates are
because
our
interest rates continue to decline,
we
will have to go on an even
economy
as
Bank & Trust Co., Syracuse, N. Y.
point I should like to
realities
mense
in work
v
to
sympathy
the views expressed by Mr.
ing
roaring
will be
era
we
tables
reserves
of 3 and
we
work, then be on guard for a
major change inf the long-term
nation,
much
about concerning the solv¬
of the banks and/or indus¬
ency
to
a
and other insurance or¬
us
returning
service men
at premiums were*
in keeping with the Amer¬ lated. We started with a 4% in¬
standard
of
living as we terest assumption and then had to
ican
one
make
caused
wages
depot instead
of being spread thin as it was in
now
industry from a wartime
peacetime pursuits but
to
will
is
debt
of
basis
mounted
has
debt
as
dorse
about
(1)
successful
terest to dividends.
generous,
until
every year
our average
1099
en-
L;
tTjE_L E P H O N E
S Y STEM
—
v,\i'.-^^•■"v^'-r:■■ • • ;,'t^^
■
■'"- ••'•■''■■
■
& FINANCIAL CHRONICLE
THE COMMERCIAL
1100
Thursday, September 16, 1943
them ready to do their part; all
To Keep
American Tradition Alive
and
of
living with a sense of re¬
sponsibility to their children and
to the American Creed they want
We Must Blaze Trail For The World
(Continued from first page)
to
ability
peoples'
help
selves."
can
we
when
tries to act
late
our
country
a
lowed.
our
lands."
'
are
years
than
placid
is,
That
disintegrate.
per¬
The old
longer sure. The
provokes uncertainties.
other
dogmas are no
V
in
desires
In the history of
haps, the first law of life.
Any era of transition or change
inevitably
will
they
similar
to
Societies either advance or
ones.
respect for the individual
vital and
awaken
rise
can
normal
nearly
they
and his freedom are still
inspiring
nations
old truths
,
times—and
such
At
futed.
that "we cannot ex¬
prestige throughout the
He essayed
to have been re¬
seem
es¬
pecially when the climax of a
great and bloody war is approach¬
our
own
accomplishment
at ing—the whole basis of life is in¬
home." "Our world problem," he variably altered. We cannot know
continued, "far from conflicting what will come to take its place.
with
our
domestic
job, should But we may all be sure that the
stimulate us to do better.
If we end of this war will be the signal
want the security of friendship for the beginning of a new strug¬
pect
our
world
like-minded
with
the
above
rise
to
level of
neighbors,
gle
we
struggle of a different
a
...
front.
system.
las
pend our chances of building suc¬
cessfully a new America; of shap¬
ing her to our historic ideals; of
making her new stature a guar¬
antee of freedom, of strength, and
of promise to the world; of saving
a
new generation from the terri¬
ble necessity of having to fight
admonished that "to keep the
American tradition alive, we must
world in the age now
are
damental
the test nor
evade the issue by pretending that
the familiar world of the past 60
Douglas
'
escape
^
70 years
or
living in an era of fun¬
change.
One age is
and
ory
is
than
more
mem¬
"We
tradition.
a
a
were
brought up to live by its facts and
ideals.
We honor our past, and
to
another.
The
process of change was set in mo¬
tion before the present war be¬
giving
cannot
We
dawning."
The address of Justice
follows in full:
We
another World War.
the trail blazer of the
as
way
we'propose to live by our tradi¬
tions, not blindly, but selectively
and intelligently.
America has never stifled life;
war—huge and disturbing as it is
it has always grown. America has
—is hardly the last chapter in the
never worshipped
any imaginary
The war is indeed a violent
chapter in its history.
But this
gan.
transition.
The
absolute of
is
war
a
It is
challenge.
a
challenge not only to our ability
produce guns and tanks and
and
to
If that
field.
were
all, we would
what men
separate
is why we are
men
That
want.
tireless in our pur¬
suit of the better.
talking and thinking about
the future as we all are doing, to¬
not be
But the war is more than
the immediate challenge of mili¬
day.
tary might which we are
always
have from what
them in the
use
perfection. As a people
that a gulf
understood
have
we
must
to
planes,
Atlantic.
that
you
through,
wanted,
been
his endured, America
remained true to herself, be¬
America
has
she
cause
has
.
times. The
changed
many
who created this
men
meeting country knew that empires and
triumphantly.
It is part of a
continuing challenge to our whole
way of life.
so
.
Military victory will not auto¬
matically provide a solution to
like people, grow old, be¬
come
feeble, and die. The men
who have spoken for this country
than
own
have
we
'50s
time
a
were
of social ferment and intellectual
probing.
People
re-examine
to
their
the
lived
grandparents
New
religious
by.
just
groups sprang up
litical ideas
the
period
that
values
and
parents
had
beginning
were
did
in
as new po¬
And
day.
our
climaxed by a war
was
wanted
This war is a test—a test of
past.
our
wisdom, and
our
faith.
China,
our
strength and
:■
.
Britain,
Russia
—
each
we were
will dishonor
the
our
past if we deny
We, the
generations now living, have a
great historic chance to preserve
challenge of today.
inherited.
passed the test of survival. Their
successes
were
not lucky acci¬
the ideals
dents.
it is also up to us to
They
were
genuine
vic¬
tories,
earned :. by
millions of
people.
They
demonstrated
a
basic principle of history.
Each
battle proved that national integ¬
rity is a prerequisite of national
survival.
The
cases
of
China,
Britain and Russia show that, in
time of supreme national crisis,
when a people have only their
faith left to fight with, they can—
if they feel they must—convert
and
transmute
their national in¬
we
chance
same
goals,
to
which
the
our
find
new
-
It is the
fathers had.
But
discover new
the
new
age we
are
truths
mov¬
ing into will need, if the Ameri¬
of the future
cans
of their
are
to be
history and traditions.
The task will not be easy.
have
make
to
live with
our
worries,
with
which
no
simple
or
our
up
We'll
minds
doubts and with
one
not
to
our
the problems to
today can give a
positive
must
we
proud
answer.
While
underestimate
the
and
grow
.
wisdom and stamina.
be frightened when
a world crisis provokes a mood of
self-questioning among us.
This
doubt,
this
self-questioning, is
not mysterious nor humiliating.
gain
both
On the
we
contrary, it is a challenge
the
learned that civil liberties meant
action
the
of
consequences
that
take—action
knew
he
he
and yet
destroyed a way of life and
death; for thousands of
was
which
must
he
no
.
.
.
one
the
met
of
challenge
successfully.
But
knew better than he that
time
own
there would be new challenges to
meet, new periods of change and
doubt, new ages of transition and
revaluation.
Some of the prob¬
lems of his age
Lin¬
coln left us no panacea, no life¬
less and entire peace.
He handed
down to us, rather, an opportunity
to preserve America in its own
image, an opportunity to build
What
anew.
still face
he
and suffered is
the
and
and
era
heritage for
of
Out
thought
barometer of all
a
spiritual striving
his
of
felt
us. •
search
and
of
measure
a
its
us.
dis¬
and
order of that day came one
most
of the
periods
vigorous and lusty
the world has
crude
of
Because
learned
ever seen.
souls
This
of security.
of men and
who will accept the chal-
for
is
women
willing to sell their
a
a
promise
country
lenge of what lies ahead—all of
wanted to, we
we
we must
disparage
underestimate other peoples'-
ability to help themselves.
But there is a
were
There is
as
real
that
America
such
growth
for
dren
fitted
The
that
to
free
labor
ushered
in
That
make it. The last 80 years saw us
from a sprawling adolescent,
importing economy to an indus¬
trial power greater in many ways
than all the rest of the world put
could
the freest
America
be¬
;
primary
a
learn
won
lesson
the earlier
from
development.
liberties.
Utopia. No
of
Our
They
new
did not reach
we
era
one ever
But within the wide frame¬
work
of
those
liberties
new
we
able
to produce the
good
of, life more abundantly
than any other nation. Our wealth
were
things
and
our
power
outgrowth of
In
that
have been
direct
a
freedom.
our
connection
let
the
common
we
some¬
man
thing few other nations did—op¬
portunity. He was not bound by
inherited
could
money, win profes¬
distinctions, acquire politi¬
within the framework
power
of
He
make
sional
cal
distinctions.
class
a
republic,
simply pursue
idea of happiness as he
own
wanted
or
within
the
bounds, of
a
reasonable penal code.
Those are the ideas of freedom
liberty that have made us the
inspiriation of the world.
;
j Those are the-ideas of liberty
apd freedom for the individual
must
we
[Now that
-
existence
very
as
a
nation—is, being challenged, all
Americans are considering what
our policy toward the rest of the
\vorld should be when the
\yon.
factories of
every kind.
We were needlessly
wasteful of our resources, and we
left problems and evils
in our
path. But we made more things
than any nation had ever made
before and we gave more of them
to more people.
We were Amer¬
machine
ica.
We
shops
were
and
the
trail blazer of
been
free.
Nor * did
No
we
na¬
have
nation
ever
dare dream of growing as
free as we did.
The immigrants
from Europe who came to our
any
shores had heard stories—incred¬
t
is
war
' '
-
i Some
isj
country-
a
standard of life and
our
freedom, are still vital and
inspiring,
they
will/ inevitably
similar
■
But other
other
•.
peoples must feel that
attitude
our
in
desires
'■
•
-
toward
is
them
friendly. We must show them that
are
we
that
than
more
learn
we can
Above
all,
The
and
'
'
it
will
teach.
as
,
going
the
America have
the rest of the' world
no concerh of ours, that we
say
ought to let it stew in its own
juice while we devote ourselves
to
solving
our
own
problems.
much
people
of
always insisted
Liberties cannot be forced upon
people.
But we can kindle the
imagination
of the
citizens
of
continents
with
the
idea
that they would do well to achieve
such /liberties
for
themselves.
After
nothing
all,
We
cannot
throughout
above
the
succeeds
like
:;wZ..*<;•
success,:;/.///
expect our prestige
the
world
to
rise
level
of
own
our
ac¬
complishment at home. Our world
problem, far from conflicting with
our domestic
job, should stimulate
to do it better.
us
If
want the
we
with likeminded neighbors, we will show
the world that our democracy can
outperform any other system. No
counter
propaganda
can
stand
against that.
" ;
-
In the
now ending we have
inspiriation
of
the
world, the symbol of progress to
era
the
been
the
even
most
progressive coun¬
American tra¬
tries.
To keep (the
dition
alive,
the
we must continue as
blazer of the world in
trail
dawning.
During the crisis of Lincoln's
day, the political party in power
in England was ready to enter our
Civil War against the North.
It
the
common people of Britain1
stopped the move. The war
meant ; hardship
to
the textile
workers
of
Manchester, thrown
out of employment because the
Northern
blockade
was
cutting
was
off supplies of cotton.
But al¬
though the British Navy might
have broken the blockade and put
them back to
tlemen
work, although gen-
across
the
supposed to be
so
who
sea
wise
were,
were
country that sent them their
material.
our problems are
part of international is¬
a
that
4—To
the
take
on
Keep Amer Tradition Alive
responsibility
for
solving
international
those
fore
must
we
we
can
problems be¬
expect
to
get
any¬
where with domestic questions.
Each
group
is
convinced
that
their
America
They would not
They would not let
war upon her.
her.
Those
having.
said
in
people
"We will have
tion
to
ones
who
ruin democracy
If
the
we
course
in America.
look at the
that
world
had
in
the
clue
to
how
would
influence
this
country
up
on
has
past,
we may get a
ought to behave
in the future.
It is perfectly true
that our domestic problems are
,
are
no
more
We will honor
Poland."
three
on
obliga¬
the
are
ago
years
Coventry,
appease¬
our
They
when hell rained
and
worth
ones who
allies
They are the
England four years ago,
protect our liberties, and that to
rival
raw-
dream in
hearts.
fight
ment.
the
was a
their rulers make
only the attitude it advocates will
follow
for
war, the textile workers protest-;
ed.
America was not just the
Ojthers feel that
and
on
at home.
merely
sues
,
need—
to
welcome—as
-as
be
•
,
,
is
world
well
word must
our
.
great tutor;-
a
as
who
position in the
our
wjorld—our
lose,
never
grow
together. Our wilderness became
farm
land,
our
frontiers were
transformed by blast furnaces and
If
the age now
and
which
be
to
security of friendship
not
us
forget that in the last century
offered
emu¬
respect for the individual and
other
is
people
the
story, which is far more dramatic
than
any
special pleading can
world,
American
War
tell'the
Neither of these views
the
was
the richest;/
came
can
they
Because
this, because it
land
would
in
place alongside the
a
immigrants.
do
to¬
Civil
while
descendants of the older ,waves of
his
of the
lowed.
competition
felt
coun¬
to
or
his
themselves
experience
Out of our
come a spirit
in America
and
wish
we
following, she will be fol¬
good.
■
labor
their needs
make
we can
of life. But if Amer¬
way
accepting the
equal right of people of different
views to do the same.
They made
to think
of
and
desires
The age
world
the
decision
all
and they worked, and they
minds
powerful but wiser, a purpose
equally determined but even bet¬
ter
They and their chil¬
Americans.
They
.
became
fought as they are fighting now.
They learned how to speak their
as
morrow.
they
always fought in the
Old World.
cannot
again.
experience can
own
us
worth
as
lands.
its crudeness.
as
no reason
things
live
great deal
We cannot force other
do.
fathers had
ruthless
strength is not one that we want
to repeat.'/.But the vitality and
the promise of our post-Civil War
life
these
of
for
Moreover,
and
our
to
We
same
could
responsibility for
solving international problems.
;
awaken
and
growth
.
are
£Ven if
together
with
other people whose fathers their
will.
confusion
the
what they
did not like.
came,
men.
Lincoln
his
right
sure was
the other fellow to say
the
reserve
not assume sole
continues
protagonist of his age. He was
of all its inner mean¬
ing.
No man could have been
more tortured by doubt.
No man
could have felt more deeply the
the symbol
say
we
ourselves.
ica
the
right ,to
have
free choice which
our
only their right to say what
destiny.-
own
others
late
not only
was
present and because they fear also made new liberties.
Nor is it a country of tion has ever been free as
who
let
what he liked. They
learned that the true meaning of
those liberties .was the right of
Abraham Lincoln
the future.
men
and
They
somebody.
be
history,
of
its
out
tries to act
in history.
any
—
Nor should
to
up
write
and
work
should
they liked and the other fellow's
as
a
.
you
your
read
to
The
versa.
people
vary
throughout the world. Each must
as
learn
vice
or
be
may
be anathema
may
traditions
about
decisive weapon of job, neither must we let its com¬ the world. We pictured abundance
to
succeed
scarcity.
And
we
national defense.
plexity .
its immensity
We need not be concerned when appall us.
This is not a country groped toward that goal.
But what we gave to our people
the minds of the American people of men who are refugees from the
are in a ferment of doubt.
Trial past. This is not a nation of men —what our people made and took
for
themselves
was
not
just
by doubt is an ordeal from which and women who cling to the past
wealth and material things.
We
nations, like men and women, because they do not understand
tegrity into
worship
us
not
be
born has died. We
the
God or argue
your conscience told
you to; that you could become a
citizen and vote for the people
who governed you; that you did
not have to cringe before officers
in
uniform, that your children
could go to school, free school,
have known
which
to
you
hardly;
can
of the affairs:
What
nations.
good for them
you
say
we
as managers
other
of
news
what
about Him
.
the values it has achieved in the
qualify
and
think
what
in
America; that
could
or
bitterly fought and as funda¬
mental in the changes it brought
as
of her growth
greatest, most dynamic of all in¬
it, too.
dustrial
revolutions.
To
some,
those problems.
In the same spirit of reverence
Something more
will be required of us.
Our moral for our dynamic past, with the looking back today, it is a Golden
stamina as well as our fighting most profound determination to Age of enlightened self-interest
and free enterprise. To others, it
strength is being tested. For it is use the great American tradition
is the dark story of the marauding
up to us to prove that our de¬ as a living guide to the
world
barons of high finance
.
.
of ex¬
mocracy can adapt itself to new about to be created, we must ad¬
circumstances, yet carry with it mit frankly that the world into ploitation ... and nothing more.
chapter
every
the
was
No matter how high our
motives,
the
then
was
It
trou¬
do or"
ever can.
brought
also
what
across
could
to think.
up
1840s and
eras,
in
our
brought
The
80 years ago, was
some
like
more
wisdom in that endeavor will de¬
No
continue
wide
Upoq our skill and
outperform any other
counter-propaganda
can
stand against that."
Observing that "in the era now
ending we have been the inspira¬
tion of the world, the symbol of
progress to even the most pro¬
gressive countries," Justice Doug¬
social
that
in them,
erty
its
own
more
ideals
the stories that had the word lib¬
them
young
will show the world that our de¬
on
children's
for
The last great period of change
and growth which America went
meant
It will be
their
to
on
was
about
bles and problems than we
gold in the streets,
everyone, \ But it
the other stories they heard,
shoes
children.
the moral and
kind.
mocracy can
hand
to
at
turbulent
mankind
more
following, she will" be fol¬
If our standard of life
worth
and
be
to
entire
heroic heights.
to emu¬
or
so
when
coun¬
But if Amer¬
of life.
continues
ica
wish
as we
way
other
force
cannot
a time
much is demanded of us,
living
be
to
glad
us
said:
"We
healthy
and
vigorous
a
people must always welcome.
It
is a challenge which should make
that "there is a great
do," Justice Douglas
In stating
deal
which
them-
-
knows
ible stories—of
them
stood
London
on
Bristol
and
Portsmouth.
They
who
the
are
turn
Chinese
farmers
soldier
Japanese
by night, who
rifles hidden in
their
huts
blow
part of a larger picture. All that
we
do to solve our problems at
with
home-made
immediately radiated out
to the rest of the world.
live.
we
home is
At
the
same
time,
we
should
keep
and
risk
They
and
torture
are
the
(Continued
up,
hand
that
bridges'
grenades
China
Russian
on page
may
people
1101)
Volume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4212:
'
y
Active Trading Markets- in-
Gatching; U|i With The "American Radical"
(Continued from
,
We
may expect that the imposition of
additional taxes upon a man's life
days the life of
a
Oklahoma
become
insurance
hazardous; but I moved on ten
years ago to Congress and then
was elected to Ways and
Means,
the Tax Committee—so I might
still
be
classed
as
living
a
dangerous life, particularly when
taxes are the subject-matter of
estate
certainly will
continue to occur to our Legisla¬
tors.
Already we have seen the
specific $40,000 exclusion wiped
out.
such time
At
further
again
life
insurance
experts
this:
LIFE
should
ACTER.
Its
IN¬
CHAR¬
is to make
purpose
rich; to
IS
IN
,
our
remember
INSURANCE
DEMNIFICATION
of
taxation
however,
may come up,
lax
no
the matter
as
profits for
.
has
conversation.
prosecutor in
I'm
But
less
still
business.
surance
because
I've
put
my
years,
family rests in the hands
AND CHILDREN AGAINST THE
of
OF
SIONED
OCCA¬
INCOME;
BY
DEATH
THE
OF
money
the
management
of the in¬
That is al¬
companies.;
literally true. Beyond that,
surance
most
in
General Gas & Electric $5 Prior Preferred
Peoples Light & Power $3 Preferred
Black Hills Power & Light Common
1960
.Missouri Utilities Common
,
Laurence M. Marks
BOENNING & CO.
1606 Walnut
St., Philadelphia 3
Pennypacker 8200
!
PH 30
49 Wall
Private Phone to N. Y. C.
COrtlandt
ously
--
&
7-1202
Street, New York 5, New York
Telephone HAnover 2-9500
Teletype N.Y. 1-344
attempt which might in
any
the future
trust funds
be; made
to break
^nd estates of
sonable
amount,
means or
otherwise.
up
Public
a rea¬
through
Utility Securities
tax
And in view
I'm interested in life insurance of the obvious fact that today the
because I've seen it in action, amount of so-called
"spendable
Happily, a few of our outstand¬
funds" available for the creation
seen the part it has been com¬
ing Legislators realize this, and
of a competence for widows and
pelled to play in the develop¬
their
testimony in
behalf not
ment
and
preservation of the children will go further in life
only of life insurance but of the
governmental and business prin¬ insurance than in other forms of
right to leave a competence for
saving, I believe that a deduction
ciples of our democracy."
one's family lends encouragement
lor life insurance
premiums up to
to the hope that American tradi¬
Representative • Disney speaks
a reasonable amount should be al¬
"the
tions of personal liberty may con¬ of
future security of my
lowed in calculating income tax;
tinue to prevail in years to come. family," and that brings me to
that the recent exclusion of $40,the "SO WHAT?" of my talk here
One
of
these
Legislators is
000 of life insurance from estate
I started out by quoting
Senator Styles Bridges of New today;
tax should
be immediately re¬
from ; Dr.
Conant's
article
on
Hampshire, who says this:
stored, and that, in order to help
American
Radicals
Who
would
families conserve whatever estate
"Frankly,
aside
from
my
resolutely "demand the confisca¬
home, a small farm, in New
they may inherit and promptly
tion, by constitutional methods,
Hampshire, my life insurance of all
pay their taxes on it—and this
property once a generation"
represents most of my life's sav¬
point is most important—life in¬
(and remember that life insurance
surance / SPECIFICALLY
ings.
I have three boys; one is
EAR¬
is property), then I showed you
now
in the Armed Forces
in
MARKED
FOR PAYMENT OF
how impracticable or impossible
ESTATE TAXES SHOULD NOT
foreign service; two are in the
it is adequately to provide for
BE INCLUDED IN THE
TAX¬
public schools. The insurance I
your
family under today's tax
ABLE ESTATE.
carry gives me assurance that
This would not
schedule other than through the
my sons will be brought to man¬
medium of life insurance, which only benefit the family but the
hood.
It is my way of provid¬
U.
S. Treasury as well, for it
itself certainly is not and has not
would definitely assure the Treas¬
ing security for them, assuring
been immune to increased taxa¬
them of an education, clothes, a
ury of its estate tax revenue no
tion, but which today appears to
matter what the structure of the
home, and other necessities of
be about the only way in which
estate might be.
life, regardless of what may hap¬ a fair
competence may be passed
pen to me;
The progress of this great and
on.
"The protection which I have
Now I don't necessarily say that enduring
country of ours ever
afforded them gives me comfort
the present tax situation points up since it was born on that glorious
day by day as I go through the
day 167 years ago has been based
a
Recent
Offering Of Idaho Power Common Stock
THE BREAD-WINNER.
,
-
Idaho Power
common stock was recently offered to the
public
by a syndicate headed by Blyth & Co., at 24%. The stock, which was
formerly owned by Electric Power & Light (Electric Bond and
Share system) was split five-for-one, after a
capital contribution of
60,000 shares by EL, making the present outstanding amount 450,000
shares.
A dividend rate of $1.60 is
indicated, returning a yield of
6y2%. It is proposed to make ap-<§>—
plication to list the stock on the I lies in the favorable combination
Stock
Exchange.
:
This is the second important of-
I of factors
background
While
to
be
of
hazards
life.
of
I
am
fortified
or
holds
a
threat for the
future; but I DO say that you had upon one thing and one thing
THE
WILL
TO
WORK
better start thinking about how alone.
AND TO SAVE AND TO PRO¬
you are going to leave a fair com¬
the best I could to safeguard the
VIDE
SECURITY
AND
FREE¬
petence for your family—whether
future of my children;
And
through stocks, bonds, real estate; DOM FOR THE FAMILY.
"Today with the world in the life insurance or
other property freedom, gentlemen, is not only a
greatest chaos of all time what —and start
talking with your right but a hard-won heritage
can a man cling to but the stable,
Legislator friends about the prob¬ which constantly must be fought
substantial things of life?
What lem
for to be preserved.
so that there may be no mis¬
If we our¬
greater comfort can any man
understanding
whatever
when selves are to be denied by law the
have than the knowledge that
this war is over.
privilege of providing security
come what may his family shall
Furthermore, I believe that in for the family, then others must
not suffer?
order to guarantee that the fam¬
provide it. And every time peo¬
"Security and protection
ily may continue to exist as the
stretch beyond the grave and
ple accept a guarantee of security
principal unit of our civilization
extend a helping hand to loved
surrender an
from generation to generation, we from others they
ones after the
physical support must be
prepared to oppose vigor- equal amount of freedom.
of
the
family
bread-winner
ceases to be
a
functioning ele¬
by the realization that whatever
tomorrow may bring I have done
ment. That is life insurance. But
as
great
as
life insurance is, it
a
thing
To
Keep American Tradition Alive After War
mechanical.
We lust Blaze Trail For The World:
in its
is human
It
There is the personal,
individual
understanding
that
be
must
with
reckoned
scheme of things.
in
the
for a
factor as strong, as powerful, as
complete as life insurance."
.
.
.
even
Another is
Representative Wes¬
ley E. Disney of Oklahoma, mem¬
ber of the House Ways & Means
Committee, who says:
"There
was
only
one
way
I
could provide for my wife in the
event of something happening to
me—so I started my life insur¬
ance
program; a
too limited one,
(Continued from page 1100)
who held at Stalingrad and today
roll back the Nazi hordes towards
a
fered at 54 last
as
in order to conform to the "death
as
soon
men
Berlin.
public official, dependent
upon a small monthly income,
could provide an estate.
My
chief regret as that I did not, in
those earlier days, enlarge my
program of insurance.
I
until later to do that, and
waited
in con¬
I am absolutely com¬
pelled to catty for the protection
of my family in its present sta¬
tion in life, an insurance pro¬
sequence
gram that is expensive.
I am
paying for my lack of foresight
Upon this experience, my advice
to
the younger
start your
generation is to
insurance plans early
and enlarge them to
completion
I
have
said,
controlled
They
where
old-world
have
closer
to
moved
the
power
our
politics.
closer
council
and
tables
politics has always
flourished.
Those silent millions—the
com¬
people of the world—are
paying for the war—as they have
paid for all wars—with their
mon
the
torium
these
til
on
after
the
Idaho
SEC
has
There has to be
ment.
an
idea in
the hearts of the people, soldiers
and civilians, that will give them
something to balance against the
supreme sacrifices of war.
•
The
men
tions
fighters
and
women
and
the workihg
of the Allied
na¬
not
waging war on the
basis of lies and deceptions and
false promises. They have ideas
about
what
they expect
their
are
world to be at the end of the
war
wiser
this time.
We must attain
new
maturity if we are to make
our victory in this war a
fitting
end to the struggle that achieved
it.
Our
crease
chances
with
the
of
success
ascendency
power.
a
in¬
of
greater
are
entered
proceedings un-,
Power
retailed
was
at
stated earnings of
share for the 12 months
per
served by Idaho Power is benefitimg by the present demand for
war,
11.8 times the
$2.09
ended June
same
1942).
30, 1943 (exactly the
the
for
as
calendar
However,
with
in
substantial
a
JS+ig°TT
>
*ei>r
maturing mstall•
ments.
year
The Power Company has a sub¬
connection
write-off
of
plant account (reducing it to his¬
torical original cost) an amount
stantial amount of surplus power
which is currently being sold to
its neighbor Utah Power & Light
at a very low rate.
When the
is to be amortized
by annual
charges of $127,027 irrigated area is increased, this
(28 cents per share) over a fif¬ power can be sold to its own cus¬
much
higher rates,
teen-year period.
On this basis, tomers at
which
should
substantially in¬
earnings would be reduced to
crease net earnings before taxes.
$1.81. However, allowing for pos¬
of
$1,905,410
sible
tax savings and other fac¬
tors, it is estimated that fully ad¬
justed earnings would be in the
neighborhood of $1.85 or more a
share
which
on
basis
the
priceThis figure
earnings ratio is 13.3.
compares with a repent
average
cf 14.3 for twelve
ing
leading operat¬
stocks.
The aver¬
company
yield
age
on
these
stocks
was
The buyer of Idaho was
ings ratio, and a substantially bet¬
ter-than-average yield.
; '
the
that
operating
what
may
stock
of
little-known
in
territory
company,
isolated
curious
seem
a
some¬
a
such
Idaho,
as
could
be
priced fairly
close to the Big Board "leaders"
in
the
utility
group.
Nearby
Puget Sound's common (which is
expected to lose its "when issued"
status September 13th, the date
when the plan becomes effective)
sells at only five times earnings,
and
a
comparatively
seasoned
stock like Indianapolis Power &
Light sells at about eight times
earnings.
The reason doubtless
It is estimated that gross revenues
could
be
increased
by
50%
or
without requiring additional
more
generating facilities.
During the
past ten years the company's rev¬
have
enues
increased
in
each
year.
if
Even
anticipated
growth
disappointing, earn¬
ings should enjoy a considerable
measure
of stability because of' &
the company's natural advantages.
Practically all electricity is from
should prove
the
company's
numerous
hydro
plants on the Snake River, which
draws its water from heavy snow
'in the mountains.
So far
past records indicate, there is
danger of drought; and on the
caps
as
no
other hand, due to
the scarcity of
rainfall, there is little likelihood
of floods.
which
Since the
same
water
supplies power also feeds
the
irrigation ditches, the power
and; its customers are,
well synchronized by nature.
Idaho
Power,
which
serves
nearly half of the state's popula¬
tion without direct competition,
company
enjoys
and
goodwill
excellent
'
(Continued on page 1102)
and how they want to
improve it.
Those ideas are largely private
blood and their suffering.
and unexpressed,
but they are1
They
insist that the world of tomorrow there.
You might call them in¬
offer more to youth than the dividual war aifns. But they are
creed of cynicism.
They insist private and personal only oh the
that the world to tomorrow not surface. Underneath they are so
make a mockery of those killed widespread and universally held
and sacrificed in this war.
that they point to fundamental
We failed in 191B.
We must be change in the shape of the world,
since those position of
are
neighbors in the world now
being born. They are taking the
place of the decadent and irre¬
sponsible castes that traditionally
these silent millions to
before middle age.
"As
silent, millions
real
I realize now. 5 It was the only
way a
.
Those
fight in the manner of the
Allies, a nation must have more
than a fine army and good equip¬
and materials
to
more freedom and better
terial conditions for all.
That
combination,
mination to gain new
SOUTHWESTERN
PUBLIC
higher standards of living at the
same time, is very American,
If
the fiery hope for freedom is the
(Continued on page 1102)
SERVICE, COMMON
Bought
ma¬
that deter¬
liberties and
—
available in the post-war period,
against them—though it is hoped Meanwhile, of course, the prethat Congress will order a morar,^™^
agricultural
area
sentences"
However, it
To
the
Houston
therefore getting a moderate dis¬
count on the average price-earn¬
Douglas
entirety.
in
Power.
State of
Idaho
is
utility equity this year;
Lighting & Power, of¬ sparsely settled, being originally
a
desert area, it is a
May, advanced to
growing
State due to the irrigation
a recent high of 63%
proon the Big
Board.
Such offerings are apt to gram sponsored by the Federal
The
war
become more frequent as holding Government.
has
of
companies
take
advantage
of,course retarded this program, but
present strength in the utility i substantial
plans are prepared
market to dispose of subsidiaries, for extending the irrigated area
fering of
5.78%.
considered
be
cannot
found
Idaho
•
the /
.
trend
Co.
Members New York Stock Exchange
own
of my
LOSS
Refunding 5s,
I'm interested
the beneficiary, but simply and
solely to INDEMNIFY A WIDOW
reap no
interest
Transit Co.
a
into it these last thirty
and the future security
one
continuing
a
Lehigh Valley
policyholder and still interested
in what happens to the life in¬
first
have
1093)
page
1101
'■
■
'
'
'
7.
.
■
—
Sold
: '
—
Quoted
■
>.
\
:
Paine, Webbeb, Jackson & Curtis
ESTABLISHED 1879
'
FINANCIAL CHRONICLE
THE COMMERCIAL &
1102
DIVIDEND NOTICE
Public Utility Securities
To Keep Amer. Tradi¬ Gwilym Price Is
(Continued from page 1101)
little likelihood that
tion Alive After War
Wesiingbouse V.-P. there
(Continued from page 1101)
of the dream, the material
(Continued from first page)
the Peoples-Pittsburgh Trust
of
gains are its outward symbol. To¬
Co.
Mr. Price was President of the
day that American dream is burn¬
Peoples-Pittsburgh
Trust Com¬
pany since January, 1940, follow¬
ing three years as its Vice-Presi¬
dent in charge of trusts.
He had
over Europe and Asia, It
brightly in the lands suc¬
cessfully closing- in toward vic¬
tory.
It burns sullenly and ob¬
stinately in the hearts of the con¬ been a trust officer since 1923, and
quered who await a new day. It was elected a Vice-President of
has now been kindled anew in the bank in 1930.
During Mr. Price's presidency,
Italy. With the end of the war,
it will shape itself into a drive the bank's deposits have been en¬
ing all
burns
such
of
nored by none.
of
ig¬
be
can
irresistible
all
see
rise
be
There
meet that demand
will
areas.
will
and
and
60
old
ones
What happened
larger.
America
in
To
industrial
new
appear
will grow
a
economies.
backward
most
in
will
universal
a
standards.
70
ago
years
begin to happen in other na¬
the world.
tions throughout
That
industrialization need
new
be
not
threat
a
to
in¬
The
us.
creased
productivity of one nation
can profit all its sisters.
A higher
standard of living in Europe and
will
America
Latin
Asia
and
mean
enormously increased mar¬
kets for
cious
be
could
falla¬
more
ancient
the
than
that backward
peoples
theory
be ex¬
can
ploited as outlets for industrially
produced goods.
Even if back¬
ward peoples want such goods,
they do not have the money to
for
pay
nomically.,
We
footing
equal
fairly
a
on
;
eco¬
,
should
disturbed
be
not
Pa.,
Cannonsburg,
in
1895, Mr. Price attended school in
Kensington and Carnegie,
New
Pa., and
graduated from the
of
Pittsburgh
Law
University
He is
School.
veteran
overseas
an
of World War
I, which he entered
private, rising to a captaincy
in a heavy tank battalion.
Fol¬
lowing the war, he resumed the
practice of law, and in 1920 be¬
as
a
the
assistant trust officer of
an
came
Pittsburgh
Trust
brief
Another
period
Company.
of private
if
Peoples
at
-
Pittsr
burgh.
Mr.
Price
is
the
of
Director
a
pany
South
the
and
Oil
Penn
new
productivity here in the West.
things in
more
common
with
can
closer and closer toward
come
real
other
nations
and
nations
of
equals.
exist
can
Our
only among
history
own
proves
that.
Some think
Some
in
say
other
some:
years
Holders
antici¬
due to
Bearer
increase in farm acreage,
excess generating capacity to take
care of new customers, and future
pated
have
the
preferred
refunding of bonds and
stock—which
benefits
will
profits
excess
with
been
are
notified
of
the
Pitts¬
of
the British
War Relief Fund.
In
1942, he was President of the
Community Fund in Pittsburgh,
J. R. Williston & Co.,
way,
the
will
115 Broad¬
New York City, members of
York
New
admit
Stock
Oswald
ber 1st.
Anderson
''
'
Exchange,
*
.
to
Octo¬
on
exchanged
No. 4 but
Talon No.
Trust
with
3
Company of
accord¬
which
arrangement
announced
that
in
the
of
trail
blazer
dynamic
more
before.
dent.
Its
America
It has
-truly
of
Typically
Coupon No.
which
Pierce, Fenner
Pine Street, New
Lynch,
Merrill
70
Beane,
detached
and
as
American Institution
the
to
never
great
is
Treasurer
dividend
to
entitled is paid.
half-yearly dividend
the 5% Preference
Income Tax) for the
<>n
(less
.
wartime
with
31
which
may
THE
St.
W.
from
C.,
Strand,
for examination
days (exclud¬
before payment
is
September 13, 1943.
Francisco
pared
by
August,
&; Co.,
The
Fisher
to
from
Mass.
been
so
strong.
lie
The
will
CHICAGO, ILL.—Kebbon, Mc-
what
and
Chicago Stock Exchanges, an¬
that Edwin A.
Stephan
nounce
148
become associated with them
has
in their
the
What
nial
of
thing
here in
of
years
of
we
DIVIDEND
NOTICE
freedom
shall
compromise
and
shall
not
liberties
of
our
I
as
not
our
freedom
We
am
sure.
AMERICAN LOCOMOTIVE COMPANY
New York 8,
30 Church Street
it
will
always
surrender
for
lose
the
DIVIDEND
A
the
guaranteed
in
at
basic
of
fifty
cents
of
this
Company
clared
of
payable October
record
—and
touchstone
the
birth
the
Bill
of
of
what
we
As
our
we
pete with
tion
of
the
at
'v
23. 1943.
15,
1943
of
close
per
.-
share
on
the
been
has
de¬
to stockholders
business
September
•
lionel w. udell, Treasurer,
United Shoe
The
Machinery Corporation
of
Directors
this
Corporation
have
clared a dividend of 37'/2C per share on
Preferred capital ^stock.
They have also
clared a dividend of 62V2C per share on
Common
de¬
the
de¬
the
The dividends on both
Preferred and Common stock are payable Oc¬
tober 5. 1943, to stcokholders of record at the
close of business September 14, 1943.
Wallace
M.
KEMP,
Treasurer
capital
stock.
Corporation
First Mortgage
6% Income Bonds
can
any
moral
never
Sherman
Corporation has appropriated
General
purchase, for retirement,
of bonds of theabove issue .at a flat: price
of 110%. No additional payment will be
fear to
nation for
a
com¬
posi¬
leadership in the
world.
sum
of $110,000.00 from its
Funds for the
-
PREFERRED DIVIDEND NO.
There has been declared for the quarter year
$1.75
per
share
upon
141
made
ending September 30, 1943, a dividend of
the shares of this Company's Preferred Stock (authorized by the Cer¬
tificate of Consolidation of American Locomotive
Company, American Locomotive Sales
of State of the State of New York
on
on
September 3, 1943) issued and outstanding, payable
October 1, 1943 as to shares thereof held of record at the
24, 1943 to the holders of record thereof
at that time
which shall not be held of record at the close of business
who shall first become the holders of record thereof
such holders of record, or on October 1,
Transfer books will not be closed.
Trust
on
close of business
and payable as to
on
on
September
all of said shares
September 24, 1943 to those
the date
on
which they shall become
1943, whichever shall be the later date.
Checks will be mailed
or
delivered by the Bankers
of accumulated
or
-
Offerings of bonds must be in the
hands of the undersigned not later t han
10 A.M., Eastern War Time, on Sep¬
tember 28,1943;
A letter
setting forth the terms and
conditions under which offerings are to
be received, together witli a form letter
to
be used
mailed
to
in
making offerings,
were
all known holders of bonds
on
September 7, 1943. If you are interested
in offering all or any
part of your bonds
and
have
not
received
said
letters,
kindly communicate with the under¬
signed promptly and copies will be for¬
warded to you.
GEORGE A. BARCLAY, Treasurer
Company in accordance with the foregoing.
John D. Finn, Secretary
September 7, 1943.
account
on
accrued interest.
Corporation and Transamerican Construction Company filed in the Office of the Secretary
civil
citizens are free to
think, to write, to speak, to vote
as they
please, we can never be
^untrue to ourselves and our past
as
177
NO.
dividend
capital. stock
The Board of Directors of Witherbee
N. Y*
or
individual.
must demand from the future.
long
-
Treasurer
UNITED FRUIT COMPANY
the
de¬
a
ideals of liberty
country
the
DUNCAN,
Witherbee Sherman
and
Rights and supplemented during
the years of our growth by Con¬
gress and the courts. Those rights
are
S.
To the Holders of
shall
America
past.
our
We
closed.
not be
will
NOTICE
America
trial
will not be
make
reverence
has.
thing
one
we
books
Goodwin, Incorporated, of Illinois.
the firm upon request.
DIVIDEND
NOTICE
struggle ahead.
But
1943,
busi¬
1943.
REDEMPTION NOTICE
DIVIDEND
strange to
will be new.
new
together
during
held
the Cormick & Co., 231 South La Salle
Street, members of the New York
Copies of
They will be more difficult than
any
we
have had.
None of us
make
COMPANY
meeting
a
be
problems
knows
at
Maturing May 1,1963
future
Its
20,
C.
ahead of it.
us.
Directors
Company, payable September 30,
of record at the close of
September
deca¬
achievements
of
Board
stockholders
ness
Egham, Surrey.
Trading Department. Mr.
this report and a special letter Stephan has been identified with
security trading on La Salle Street
discussing the outlook for rail re¬ for more than 15
years.
He was
organization bonds may be had recently associated with Bond &
State St., Boston,
Treasurer.
September 9, 1943, declared a dividend for the
third quarter of the year 1943 of 50c a share
on
the
Common
Stock of
Underwood
Elliott
1943.
Adds Edwin Stephan
RR. has been pre¬
Raymond
on
Checks will be mailed.
ORDER,
Rusham House,
RR. Situation Interesting
San
Sur¬
,
17th
Kebbbri,JcGormick Go.
on
Accumulated
holders of record at the close of business
Transfer
BY
had from the
report
the
D. M. OPPENHEIM, Secretary.
request.
interesting
Cor¬
plus of the Company a divi¬
dend of Fifty Cents (.$.50)'
per
share on the Common
Stock, payable September 30, 1943, to stock¬
Provincial
business
DATED
x
Lcui&iiJSan Francisco
An
1943.
ELECTRIC STORAGE BATTERY CO.
1
firm upon
14,
Arundel
the
The Directors have declared
made.
data
brochure, copies
be
National
Saturday)
ing
leading chains is contained
in this attractive
the
clear
five
prospects for the future.
A de¬
tailed study of the situation, with
charts, tables, and interesting
of
Directors
this day declared 25 cents per
share
as
the
regular
quarterly
dividend on
the no par value stock of the corporation issued
and outstanding, payable on and after October
1, 1943, to the stockholders of record on the
corporation's
books at the close of
business
September 20, 1943.
5
rrA;;
JOst-VH N. SEIFERT, Secretary.
has
H. C,
Bank Limited, Savoy Court,
their
and
defeats,
and
victories
on
economy
September
'
„
of
Board
poration
also
ited
Survey," discussing the ef¬
the
Md.
Allan, Secretary and
ending 30th September next
be payable on the 30th Philadelphia, September 3,1943.
September 1943
Coupon No. 80 must be depos¬ UNDERWOOD ELLIOTT FISHER
will
"Chain
of their
CORPORATION,
Baltimore,
The
of
Notice
Dividend
ARUNDEL
power.
not
CONN ETT,
F. Si
September 15, 1943.
year
edition
1943
issued
have
Exchanges,
leading
of
close.
not
192
corre¬
are
usual
2Vz%
from
the
when
they
The
of
City, members of the New Stock
York Stock Exchange, and other
on
will
books
Transfer
Checks will be mailed.
sponding Talon No. 4 and can¬
celled by the Company in London
be
But T cannot agree. I believe that
we' will go on to realize a way
of life better than, has ever exist¬
ed
15, 1943 to stockholders
record September 30, 1943.
October
Press,
Chain Stores—A
reorganization plan for St. Louis-
J. R. Williston To Admit
not
will
the
share on account of
declared,
payable
a
was
arrears
to
effect..
wartime London,
Director
$2.00
TIIE
Warrants
Talon
for
the
has
their
a
have
3
Guaranty
ance
in
continue
taxes
Stock
deposited
profits;
Commerce
of
before
New York in New York, in
re¬
limited, however, so long as
main
who
their
and
Company held today, a
on the Preferred Stock
dividend
business
clear
five
of
No.
Talon
and
of
meeting of the Board of
of the American
a
Directors
•
position
.our
period of lead¬
our
the world is ended.
we shall have to yield
earnings
share
progress
partnership in the firm
ership
future
over
in
their
we
functioning commu¬
nity of nations. And we must not
forget that any real community
a
potential rise
stores,
investment division
of the Pennsylvania War Finance
Committee, and as Treasurer of
the War Advertising Fund. He is
AT
iX
Woolen
for
C.,
(excluding Saturday)
payment is made.
of
banking and
E.
days
chain
burgh, Vice-President and Trus¬
tee of the Zoar Home, a trustee of
other continents are sure to make the Pittsburgh Y. M. C. A., Eliza¬
in much the same way as our in¬ beth Steel Magee Hospital, Penn¬
dustrial; East is bound to gain sylvania College for Women, and
of
examination
a
the
fact, America can expect to
profit from the economic gains
development
there may be
ican Bankers Association'.
presently serving as Al¬
Ave.,New York 3,N.Y.
on
■
Summarizing,
Store
In
and
iive.
conserva-
appears
fect
is
Dividend
London,
Lane,
lic Relations Council of the Amer¬
Chamber
more
capitalization
Birchin
ciation and Chairman of the Pub¬
He
Interim
Coupon No. 192 with the Guaranty
Trust Company of 4Slew York, 11,
equity,
stock
common
York
Treasurer
With
in
With
Commission.
Power
&
Company. He is Vice-President of
the Pennsylvania Bankers Asso¬
BEARER.
TO
225 Fourth
Second
A
Fed¬
the
and
commissions
29 %
the Blaw-Knox Company, the Na¬
gin to grow more like our own.
our
INCORPORATED
RANTS
electricity into this area on
the Ordinary Stock for the year
a
competitive basis.
ending 30th September 1943 of
The company's regulatory rela¬
tenpence for each £1 of Ordinary
tions appear sound and it has had
Stock, free of United Kingdom In¬
no important rate controversy in
come Tax, will be payable on 30th
the
past fifteen years.
Plant
September 1943
value has been fully adjusted to
Holders of Bearer Stock to ob¬
meet
the
requirements of two
tain
this
dividend
must
deposit
First National Bank of Pittsburgh,
the other nations of the earth be¬
from
PREFERENCE STOCK WAR¬
so
send
State
Woolen
American
TO
DIVIDENDS
OF
COMPANY
no
legal practice was followed by his
employment
;
:
HOLDERS OF ORDINARY AND
possible advantage to Bonneville
or Grand Coulee in attempting to
was
trade legheny County Chairman of the
Profitable
them.
exist only between countries
can
in
Born
are
seem
would
there
that
eral
banks.
electricity
producing
low
tional Union Fire Insurance Com¬
goods.
our
Nothing
seventy-fifth among the nation's
pressure
living
de¬
mand for material necessities and
luxuries
of life even from the
for
larged by more than 60%, making
it
'.
material plane, we
the
On
first
it
that
force
NOTICE
project would gain headway. Costs
of
;
TOBACCO COMPANY, LIMITED
government ownership
local
any
DIVIDEND NOTICES
BRITISH-AMERICAN
seems
heart
Thursday, September 16, 1943
Witherbee Sherman Corporation
14 Wall Street,
New York 5, N. Y.
Dated, September 10, 1943,
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4212
158
1103
II11111111111111111111111111111111111111111111^2
;Reporter On Governments''
By S. F. PORTER
-■
It's
AFFILJfVTED
strange thing that
even as the cash is rolling in and the bil¬
beginning to mount toward the $15,000,000,000 goal, financiers
and dealers in bonds are arguing about the ultimate success of this
drive.
"Debated everywhere was the effect of the Italian sur¬
•
lions
a
are
.
render
.
the
loan drive"
war
was
the lead of
went
to say
on
point
of
that Wall Street
.
increased
or
decreased
That's poppy-cock!
.
.
.
.
.
Englandt
i
*
*
*
Lord, Abbett & Co.
Prospectus
is not so stupid—in fact, just the opposite—as
to permit the black mark of failure on its record in the greatest war
loan campaign in world history! ...
If individuals fail to come
through on as large a scale as is essential, then corporations will make
up the difference and institutions will be "pressured" into rounding
out the figure.
And if signs appear ^of lagging subscriptions, steps
will be taken within a few days to make sure there's a backlog of
.
This is common sense stuff—not
talk out of
And to this observer, the question i^ not
whether the $15,000,000,000 can be obtained but whether a billion
or two oversubscription can be secured to cut down the
subsequent
bank campaign.
.,
To answer that question in a hurry, the belief
up the
the air.
slack.
.
it
.
.
actually will
.
.
.
the
For instance.
.
A. W. SMITH & CO., Inc.
111
DEVONSHIRE
"The battlefields
|
E
there as always.
.
.
of
"through
submitting
the
expedient
proposed
"In
bond
been
possible to shrug
whole thing by saying: 'If
issues to the voters in the form
of
constitutional
which
require
amendments,
only
is
majority vote."
Illustrating the extent to which
this
But
the
because
weeks, the market will lose
more
.
.
.
.
.
.
.
.
.
.
.
.
.
.
of
grand total of $169,100,000 of State bonds that have
$15,000,000,000
been
make
switch.
a
'
...
.
.
or
and well
port).
get
much
as
.
.
.
Consti-
the
the
voters
:
be
re¬
avoided
expedient
in
of
the form
sub¬
con¬
which
simple majority
a
This
can
requirement
bond issues
for
adopted by the
was
Constitutional
June
of
amendments,
require only
vote.
Convention
on
29, 1875, while the report
of the Committee
Manner
of
the
stitution
ex¬
til
July
on
first
the
World
not submitted
16.
When
the
un¬
latter
before the convention for
came
action,
the
the Government raised
clearly
members
all
a
War.
history and
a
"If
Loan'
the
exclude
we
issue
which
'Victory
offered in
was
of 1919, some five months
after the Armistice was signed and
April
which
was
in the
financing of American ex¬
used
in
part to assist
ports, the present war-loan cam¬
paign for $15,000,000,000 is with¬
in some $1,937,000,000 of the en¬
tire amount of money raised by
the Federal Government in the
the
the
fact
1, 1943 and subsequently
be presented for payment at
Chicago and New York of¬
$136,330,557.29 of
such bonds originally issued, Hal¬
Of
that
requirement.
prohibitions
tution
and
in the Consti¬
against aid for railroads
framers
any
the
Stuart & Co., Inc., has under¬
written
$73,306,557.29
of
the
sey,
bonds.
C'.,.7
Debt Creation By
State Of
Missouri Discussed
State
Con¬
stitutional Convention in Missouri
forthcoming
prompted the
Governmental
Research Institute of St.
Louis to
probably believed that
large debt incurred by the
emergency"
Logically,
delegates who drafted the existing
vide controls
of
straints
on
have proved in¬
the
and
intended
State
•
re¬
borrowings
"have been successfully avoided a
number of times in the
The
tions
constitutional
"to
power
curb
the
past."
prohibi¬
unrestricted
to create debt," required
that except in certain instances,
the General Assembly could not
incur indebtedness without first
obtaining
thirds
ever,
approval
of
election
pose.
it
thorize
a
poses
the
votes
called
This
has
for
of
cast
an
The
untenable
the framers in¬
be
easier
to
a
debt
the
>
1;/>
;
■
the Research Department
ment
of
an
use
of
the
international
to
authorize
debt, the Research Institute
declares, "has had the effect of
writing
into
the
Constitution,
tion
indicated
its
that
to
has clouded the
In
last
closely anticipated. The
backlog industries should be out¬
standing beneficiaries of the pros¬
perity.
"(3) Earnings
satisfac-i/
should
reflect the post-war pros¬
torily
perity, and the period should be
a
favorable
fact that
one
for investors. The
(though speculative op¬
portunities
have
been
plentiful)
the securities markets of
18 months have shown a
nance
of the income
the last
predomi¬
motive may
point the way to post-war condi¬
"(4) What the levels of security
prices
may
cannot
be when the war ends
be foreseen; but at
now
former
post-war
stabiliza¬
continued
on page
1105)
would
basic role.
gold
traditionally
chief uncertainty
stocks.
long prosperity will
present the stocks of most of the
currency
un¬
Constitutional
method
how
backlog industries do not appear
to be at levels which would dis¬
for
proposals
play
for
emergency.
or
cannot be
of Dis¬
its
of
modification
tentative
what the levels of business will be
announce¬
Group—"An
by the Treasury Department
a
readjustment
......
Outlook
Investment
From the Investment Report of
tributors
The
"(1)
tions in this respect.
period."
About
au¬
State
clear away the
that
to now
up
outlook for gold
other
these
fortunately
situated, particularly for any tem¬
permanently,
through
these porary post-war readjustment pe¬
amendments,
data
relating
to riod.
In consequence an impor¬
specific bond issues of only cur¬ tant
proportion of the investments
rent importance and not of funda¬
of Mining Shares has been placed
mental
significance."
It
then in the stocks of leading Canadian
makes
the
following additional and American gold mining compa¬
observations:
"If
bonds
pur¬
a
requirement,
how¬
a
by-
interpre¬
debt for normal pur¬
amendment
that
generally, been
"casual
revenue."
the
War
This did much
twoat
to
to
than
foreseen
large state debts, "in practice
effective"
;
tended
a
other
any
leads
or
loan drives of the first World
war
"unfore¬
an
the
conclusion that
in 1875 to pro¬
against the creation
these provisions
the State of
of debt by
pointed out that
State constitution
in
deficiency
while it the obvious intent of the
extremely interesting
memorandum pertaining to
the
an
is
With
other private purposes, the
tation
It
"Conclusions:
total of
it
overlooked
Notes
Missouri.
Request
DISTRIBUTORS
the
wonderful manifestation of the
strength and purpose of the Amer¬
ican people.'
the Future
Amending the Con¬
was
two-thirds
Stuart & Co., Inc. are
informing 5 holders
of State of
Arkansas
Highway : • Refunding
Bonds that interest coupons due
on
immensity of the present war loan
GROUP, Incorporated
campaigns, but by way of com¬
parison, it is interesting to note
63 wall street—new york
that prior to the first World War,
the largest increase in the Ameri¬
equipment, and in the interestcan
public debt in any one year
amounted to $941,902,000 in 18*35 paying railroad bonds which still
sell at substantial discounts."
and
that the largest loan
ever
From the eleventh and conclud¬
floated by our Government in a
ing article in National Securities
single operation was for $200,000,& Research Corp.'s series on Post¬
000 in the Spanish war period of
war
Backlogs
and
Business—
1898.
"During
<
.
Halsey,
creation
visualize
to
Prospectus
of
achievement in
could
stitutional
BONDS
Municipal News
prepare
is,
two-thirds
(of the
that the two-thirds
tution)
quirements
seen
has
Brevits—"It
MIT's
probably
be
explained by the fact that the
framers
State would be for
The
repre¬
period
at the end of the war may, if the
$21,432,918,450 in five separate
ending is abrupt, be as short as six
war
loan drives,
the largest of
which was an issue of $6,964,576,- months, but intense; or if consid¬
erable time elapses between the
000
Fourth Liberty Loan 4*4%
end in Europe and
in Asia, it
bonds offered in October, 1918. At
that time the report of the Treas¬ might last for a year or two, but
be relatively mild.
ury Department stated: 'The over¬
"(2) The post-war period should
subscription of this largest of all
be one of prosperity—though just
loans was the greatest financial
the
mitting proposed bond issues to
way the 2s continue strong and in demand is one of the
significant features of today's market. . . . Here we are, in the
middle of a campaign permitting any one and every one to buy all
the 2s of 1953/51 they want at par. . ... In fact, a campaign in which
(Continued on page 1108)
fices.
brought
It seems not to have occurred
to
The
their
two-thirds
a
as
which
most
may
ap¬
institutions
or
A Class of Group Securities, Inc.
from
come
could be used to circumvent the
.
THE 2%
October
bal¬
circumstances
another "money-making" re¬
to
The
was
about this situation, the Research
Institute said:
discussing the major trend
instance—(to
Equipment Shares
being left
are
must
difficult
course,
two-
In explaining the
the key exempt issue—the 2%s of 1965/60—has gone
back to above 112.14. . . . That bottom of 112 was maintained. . . .
for
a
majority vote.
through
the issue once more
And when-the impact of
calling of the 3J/4S is felt, it well may be that the longer-term
empts will stage a little rally on their own. . . .
constitu¬
amendments
received
shrewd trader might
Good investors in
the
requiring
to
From
were
requiring a
simple majority for passage and
only $15,000,000 of these bonds
incidentally,
And,
under
majority; vote.
$165,600,000
tional
of interest rates after the
similar significance. . . . We re talking
about the scarcity-plus-popularity angles in a still strong
supported market. . . . You carry on from there. . . . And,
just
now
$3,500,000
of
ance
other issues of
any
only
proved in the form of constitu¬
.
We're not
Railroad
pjcture, and if the drive
be
a
success,
the entire
individuals
by popular vote
tional provision
pocketbook.
war
1875,
thirds
is
the
submitted
.
decide the wisest course
is to get into the longest-term exempts right now and settle the
matter once and for all
The constant rolling-over of matur¬
ities and paying up to obtain longer exempts would not be necessary.
Easier on the nerves and probably a lot easier on the
Of course, the
we
senting them."
been
authorized
since
.
.
-
out of the
.
.
'
.
practice has
that
$1,401,000,000 taxexempts—the called 3V4S of 10/15/45/43 and one of the best trading
issues of the early '30s; V.
Next April, the market will lose another
$1,519,000,000 of tax-exempts at one clip^—the 3V4S of 4/15/46/44 and
also one of the favored trading issues of the early '30s. . . . In the
meantime, the September 15 issue of $279,000,000 tax-exempt 1%
notes is out.
And in December, the $421,000,000 of tax-exempt
lYs% notes will be out.
And next March, $515,000,000 of exempt
Is will be off the lists.
And by, the middle of 1945, there won't
be a single direct or guaranteed shortrterm issue carrying the taxexempt privilege on the market. ... Only the bond calendar will
contain them.
And all you need do is check down a list of out¬
standing bonds to find out the relatively minor totals of those. . . .
Figure it out for yourself. . . . All this scarcity we've been talk¬
ing about for years is now becoming a real and inescapable fact. . . .
Who do you think hold these called exempts? . .. Institutions, mostly.
Banks and corporations with definite reasons for wanting to
switch out of their current tax-exempt holdings into other exempt
securities.
Investors who will make every effort to maintain
their privileged position even if it means paying up every time they
few
a
forthright challenge
the
don't
it is different,
time
banks
employed,
the Research Institute points out
TAX-EXEMPTS
In
a
need to be concerned about
no
it.'
.
...
off
buy them, the banks will, so there
simple
a
the
previous drive it has
every
this
TIIE
It is a daring innovation and
public.
*
generation.
our
passed
on
of victory stopped to rest and in the resting died."—Ancient
Quotation reprinted in Keystone Corp.'s Keynotes.
From Lord, Abbett's Abstracts—"The Third War Loan campaign
differs from all previous bond drives in either the two World Wars in
E
STREET
BOSTON, MASS.
Campaign
white with the bones of those who
are
very eve
to the American
.
alert to opportunity are
men
E
DISTRIBUTORS:
dollars.
...
.
=
~
And, meanwhile, the Government mart is at a standstill. . . .
Prices holding firm—in fact holding so well that it's surprising.
Banks in there buying as their reserve positions are eased. . . .
Dealers trading as usual but devoting most attention to the war
loan drive.
And the little stories that mean dollars-and-cents to
.
WHAT THEY'RE SAYING—
be in sight but won't be
sit back and hold out their few
can
Investment Trusts
request
on
About The Third War Loan
S
And it's believed that
reported as
in, for the Treasury won't want to let people think they
comes
TRUST
Prospectus
|
at least one-third of the goal will be
the end of this week.
till by
more
LOS ANGELES
JERSEY CITY
INVESTORS
.
oversubscription will be obtained.
in the
CHICAGO
.
Best guesses are that
much
63 Wall Street, New York
GENERAL
.
.
is the
request
.
buying to take
INCORPORATED
.
...
And this Treasury
.
request
Fund
this
.
.
Neiv
And the story
divided into two groups on the
subscriptions on this good news.
was
There isn't any question
about
$15,000,000,000 being raised because it just has to be raised.
.
on
financial column in
a
New York, newspaper the day after Italy quit.
a
Prospectus
.
on
it
is
stocks
nies.
believed
should
be
that
State
authorized
by
simple majority vote, then such
referendum procedure
should
(Continued
on page
1107)
in
appear
Even
such
respects
most
greater concentration
than that shown
stocks
by this report is being considered.
"Undervaluation continues to be
most extreme in the heavy
tries,
notably
steel and
indus¬
railroad
Prospectus may be obtained
from
The
authorized
dealers,
or
PARKER CORPORATION
ONE COURT
ST., BOSTON
,
Vy
t
Delay Curb Hearing
Tomorrow's Markets
'
extend unlisted trading
to
(Continued from page 1087)
interim
the
In
incentive.
increased.
bullish forecasts
the Securi¬
and Exchange Commission to
has been postponed by
ties
November 15th. The postponement
requested by the counsel for
was
articles claiming
Learned
and
more
tries
geared
were
to;: turn
beating into
sword
from
indus¬
more
plowshare manufactu ring,
practically overnight, began
appearing.
The- assumption
being that fears of post-war
problems were over empha¬
all
parties.
The stocks involved are: Lukens
Steel Co., $10 par common;
Farns-
Television & Radio
Corp.,
worth
1
No.
common;
par
$1
Inc.,
Merck & Co.,
Northern
common;
par
Natural Gas Co., $20 par common;
Public Service Co. of Indiana,
Warner &
and
mon
sized and that stocks were a
buy here and now. One mar¬
ket pundit gave as his con¬
sidered
opinion that rails,
Inc.,
stock without par value,
common
Swasey Co., com¬
stock without par value.
Stimpson,
formerly
partner in the New York Stock
Exchange firm of Sartorius
&
a
a
No, in my opinion the rails
stock
What
stocks,
or
or
the lead in
stage of the
market cycle, is still a mys¬
tery to me. But if "logic" is
the yardstick applied then I
groups will take
the next upward
would
buys.
Of the industrials there are
a
number which I favor, but
with
not
the way
market
the
acting
In
to
called
to
upon
were
tion it wants to
go
that all buying be
least 50% above
first
half
facilitate
all
traffic
major
war
1943
were
this
increased
about
by
day than they had
may
bigger earnings
*
More next
even
.
[The
article
do
time
-
coincide
with
in
those
are
this
of the
presented
as
20
make for'
but it
STREET
York
Stock
New
WALL
New
York
Curb
Exchange
Cotton
Exchange
New
York
Commodity
NEW YORK 5, N. Y.
Chicago
New
Orleans
And
Exchange
Exchange,
Board
Cotton
other
of
Inc.
Trade
Exchange
Exchanges
SUGAR
Y.
Cotton
NEW
Exchange Bldg.
YORK 4,
N. Y.
DETROIT
PITTSBURGH
DIgby 4-2727
GENEVA.
SWITZERLAND
counter-blows
of conquest and
•,:'&■;"i:4 J: >.
with
but
y
.
.
will
of
our
devoted
and
and
delivery in all his¬
supplies are flow¬
ing outward in a constant and
ever-increasing stream, not alone
Our
tory.
those
to
war
in which
areas
our
engaged, but to
are
own
every
the globe at which the
on
of the United
forces
armed
Na¬
tions are-fighting.
We are in continuous consulta¬
with
tion
allies
our
various
on
phases of military, economic and
political activity—as required by
the
exigencies of' a constantly
changing situation.
Our co-operation with our al¬
forces
lies
state
victory,
,
people have brought
our
duction
■.
although
has
since reached
contingents of
long
where
forces of various allies
are
the
the
serv¬
strength.
respects,
these
in
alone
not
mies
successful
only
the
which
of
nations
world
the
damental
stable
Zealand
with
valiant
other
still
control
portions
vast
make, on the battle
front and at home, efforts even
greater than those thus far made.
should
nation
each
a
In
government,"
"should be free to decide for
making these more intensi¬
"
fied
efforts, it is
important
more
concerned
to
understanding
of
itself the forms and details of its
than
governmental organization"; "sec¬
ond, each nation should conduct
have
its economic affairs in such a way
future.
promote the most effective
utilization of its human and ma¬
public
high
plane have revealed the profound
concern
of our people with the
issues of the country's foreign re¬
as
to
terial
the
and
resources
by side,
side
New
tions need to
propositions," he stated
"first
under unified
command. We have developed this
ing,
are
of Asia. To defeat
them completely the United Na¬
willing to accept certain fun¬
are
a
ene¬
of Europe and
extent to
to the
still
lesser
They
asserting that "organized in¬
cooperation
can
be
In
Our
mies, Germany and Japan, though
shaken, still possess great re¬
sources
and
enormous
strength.
of basic human rights."
servance
is
certain,
fast losing heart and type
of co-operation with in¬
Italy has already sur¬ vincible
Britain,' with
intrepid
rendered. But our principal ene¬ and resolute Canada,
Australia,
ob¬
and in improving
vancement
now
formidable task.
educational ad¬
also in furthering
greatest
practicable measures of economic
welfare and social security for all
all
for
ever
clear
a
what is at
stake,
now
recent
During
discussion
and in the
months
debate
and
on
a
China,
It
as
Africa,
determined
and
with
and
allies.
extended
South
and
the forces of
being rapidly
military opera¬
is
the
tions progress.
Soviet
the
To
Union,
whose
heroic armies and civilian popula¬
tion have earned everlasting re¬
through
nown
their
feats of courage and
magnificent
sacrifice, we
have been glad to render all pos¬
It is
sible aid.
settled
desire and
our
our
that collaboration
and co-operation between our two
countries shall steadily increase
policy
during and following the war.
With the
re-emerging military
of France we have been
and are developing a heartening
power
need to be degree of co-ordinated effort. We
perspective. Un¬ look forward to the day when re¬
mit differences
arising between less our people so see them and born France will again take her
it and other nations to processes unless our people are willing to rightful place in the family of free
•
:
;
of peaceful settlement, and should translate their understanding of nations.
With 'governments which
be prepared to carry out other them into action, the well-being
the
of the nation—and even its very Axis
powers: have driven from
obligations that may devolve upon
their invaded and
it in an effective system of organ¬ life—may be gravely menaced.
brutally op¬
The foreign policy of any coun¬ pressed but unconquerable coun¬
ized peace."
try must be expressive of that tries we have the most friendly
As
to
certain
issues
of the
country's
fundamental
national relations. These relations reflect
country's foreign relations, Secre¬
interests.
No country can keep our profound and active sympa¬
tary Hull stated that these must
faith with itself unless that is so. thy
for the suffering of their
be seen "in their full perspective"
In determining our foreign pol¬ peoples
and our
determination
since the foreign policy is expres¬
the victory of the United
sive of the fundamental national icy we must first see clearly what that
of
its
citizens,"
third,
and
nation "should be willing to
each
sub¬
lations.
issues
These
in their full
seen
-
The paramount aim, he
interests.
added, now is final victory and
beyona that "the assuring of our
national security and the foster¬
social
ing of the economic and
well-being of our people."
our
must
other
amples of the close coordination
military, economic and diplo¬
matic action existing between the
stressing
Nations,
United
country's
this
that it
and set¬
desire
policy
that
collaboration
cooperation with the Soviet
Union
"shqll
steadily
increase
during and following the war."
tled
and
tary
speech, according to
Hull's
the Associated Press:
I.
In
also
-
v
July of last year, in an ad¬
networks, I out¬
dress over these
lined, as definitely as was possible
at that time, the chief problems
and conditions confronting us in
relations and
bear
which
re¬
lations, have their national in¬
terests, which, of course, deter¬
policies.
Obviously
tween
ences
there
be¬
differ¬
even
are,
nations,
friendly
regards their respective
regards
of attaining them. But
as
aims and purposes and as
the
means
there
also
are
common
immense
interest.
within those
areas
of
can
advance
indicate
preservation
of
some
fighting for the
its
freedom,
its
homes, its very existence; and
that only through united effort
to defeat our enemies can free¬
dom
for free¬
the opportunity
or
preserved—for all coun¬
tries and all peoples. I spoke of
dom
be
based
on
nation
and
for
all
bring our
nations
enduring
greater
peace
and
wel¬
fare. To this end I urged inten¬
sive study; hard thinking, broad
greater
measure
of
human
na¬
of the nations
one
Western
the
Hemisphere
have today the closest ties
we
of sol¬
idarity and association—the fruit
of ten years of unremitting labor
on the part of all of these nations
to build in this hemisphere a fra¬
Each
ternity of good neighbors.
of
making
to
tion
magnificent
a
the
effort.
war
is
associates
American
our
contribu¬
Here
we
ly
successful
example
of co¬
operation between sovereign na¬
tions.
: V;
■
more
:
The victories of the United Na¬
tions have been the direct result,
not of separate
'
and uncoordinated
military, economic and diplomatic
action, but of close co-ordination
'
of all
within
three types of action,
each of the nations
both
and
all of them. It is well to
some outstanding examples.
among
recall
Our
protracted
fort to achieve
ful
solution
Far
diplomatic; ef¬
fair and peace¬
afforded
East
authorities
countries
a
difficulties in
of
and
now
those
the
military
our
other
of
in the ranks of the
United Nations many months of
of our military precious time for strengthening
and economic activity and every defenses
against
the
combined
instrumentality of our diplomacy Axis threats in the Atlantic and
have
been
and
are
directed in the Pacific, in
case
Japan
Every
toward
.
weapon
the
combined
strengthening of the
effort.
All these
war
necessarily go together.
the
should
reject
a
peaceful
settle¬
ment, as she eventually did.
The
air and sea forces of
United States are fighting,
The land,
enduring spirit¬
ual values which would
With all but
of
their
have, in peace and in war a high¬
the aims and purposes
of that interest.
restore
freedom.
the nations not
of the
policies
necessary
for meeting Here we have a vast area of com¬
these problems. I pointed out that
mon interest and a broad basis of
in the present conflict each of the
co-operative action in the service
to
to
By co-operating
areas
effectively
which they
have in common, but can also find
increased opportunity to recon¬
cile, by peaceful means and to
mutual
advantage, such differ¬
ences as may exist among them.
v
II
'\
At the present time the para¬
mount aim of our foreign policy,
and
the paramount aim of the
foreign policy of each of the other
United Nations, is to defeat our
enemies as quickly as possible.
only
shall
Nations
tions
we
foreign
with
countries,
are.
mind that
in
oeal in the conduct of
mine their
of
interests
national
true
We
Mr. Hull touched on several ex¬
hope
CHICAGO
Our
Attainment of complete
the need to chart for the future a
N.
the
over
savagery.
nations, based on a compre¬
hensive system of mutually ben¬
eficial international > cooperation,
course
Exports—Imports—Futures
be
other
United Nations is
Members
-
LAMBORN & CO.
con¬
relations
economic
other
land.
on
steadily increasing in power
and effectiveness. They are step¬
ping stones to our final triumph
are
greatly helped in this task by the
establishment of sound trade and
sought
1856
H. Hentz & Co.
99
nation
each nation will
But
the field of foreign
will
and
responsibility for
and, every
each
any
those of the author only.]
Established
■
'
Following is the text of Secre¬
necessarily at
They
defeats.
Since then the military picture
has greatly changed.
We are now winning hearten¬
ing victories, in the air, at sea,
nations, wherever they exist,
uhdermine all
efforts for
stable peace.
had suf¬
We
foes.
succession of grim
a
i
about the greatest miracle of pro¬
point
prepared
..
.
,
resolute
effort of
ter
may
"The primary
des¬
.
,
they
are.
operating
shoulder, in a spirit of
lant forces of pne or more
allies.
forces
fered
cultural back¬
social unrest with¬
and
wardness
United
The
dark.
still fighting a
■
superb comradeship, with the gal¬
perate war of defense against bet¬
know that economic stag¬
"We
all
by
leadership
were
-
war,, .:,
The
still
was
Nations
He added:
nation and distress,
in
ture
,
Thursday.
expressed
not
Chronicle.
;V'
—Walter Whyte
/
views
a
the railroads have
It
*
with the
of
shoulder to
1086)
page
those, within each nation, who
provide spiritual, moral and in¬
tellectual guidance.
>
At that time the military pic¬
objective, depends, to an
important "degree,
upon
what
happens within as well as among
nations."
mi
vision, •and
mount
is
To
actually less rolling stock to¬
years ago.
definite
more
appear or until the in¬
at dicated reaction materializes.
are
greater.
brought
either
1941, and for
of
still
until
I suggest
postponed
than in 1941. clues
movements
probably
100%
carry
passengers
Freight
the
havior shows in what direc¬
For 1942 the rails
days.
more
these
railroads
v.
maintenance of.peace as its para¬
and
next
the
use
international cooperation
*.*■ ■■
■
organized system of
an
maintain
As this is
as
the
of
success
that
it does. >
being typed the
likely candidates.
news
reports are coming in
few days the
that our forces attacking Ger¬
I.C.C. will' issue its figures on
man
troops at Salerno are
the railroad industry for 1942.
In this report you will see meeting with stiff opposition.
The Berlin radio claims our
some
interesting comparisons
forces
are
evacuating. The
that may give you a clue as
British
say
we
are
doing
to the recent increase in rail¬
road
accidents.
For
1942 nothing of the sort; we are in¬
our
beachhe ads.
American railroads had about creasing
Meanwhile the market, which
45,000
locomotives,
39,000
tries to answer all questions
passenger cars and about 1,affecting its welfare, is doing
750,000 freight cars in opera¬
A "do-nothing" ac¬
tion. If you will study these nothing.
tion in itself would not be
figures and compare them
with rolling stock in use say pessimistic if it were not in
the middle of developments
ten
years
or
even
twenty
nobody knows the answer to.
years
ago you will see that
instead of increasing, it has
Therefore such
action at
declined steadily.
this point cannot be consid¬
It is very easy to say that ered as pointing to higher
this shows good management. prices.
.On the contrary, it
But this opinion will evapor¬ points to lower prices. So un¬
ate very quickly if you have til the market by its own be¬
railroads
c
ternational
the
consider
never
don't stand up as
i
,
retary Hull pointed out that "the
cerned.
major eastern Smith, died at his home of a heart
attack at the age of 63.
road, were cheap at present
prices and that an advance to
something called "value" was certainly also make for bigger
a
logical expectation.
expenses.
particularly
"
dealing with these conditions rests
Stimpson Dies
W.
Harold
i
(Continued frc
on
H. W.
'•
-
'
Organized Infernal'! Go-operation
To Keep Peace--By Force, If Necessary
the New York Curb Exchange to
privileges
the securities of six companies
r
Hull Favors
tember 16th on the
Savs
that
scheduled for Sep¬
application of
The hearing
Walter Whyte
\
Thursday, September 16, 1943
THE COMMERCIAL & FINANCIAL CHRONICLE
1104
their
together
republics
to
drawing
American
common
defense
of
the
assure
made
it
skill and heroism, possible to establish a line of
Mediterranean, over the communications through the Ca¬
with surpassing
in
the
Nazi-held
fortress
of
of Asia.
Europe,
in
Pacific and
In each of the theatres
the far reaches of the
ribbean/Brazil and the South At¬
lantic.
That line proved to be of
(Continued on page 1106)
Volume 158
Number 4212
THE COMMERCIAL & FINANCIAL CHRONICLE
7
(Continued from page 1103)
Incorporated by Royal Charter 1727
HEAD
■
count
ally to
OFFICE—Edinburgh
Branches
throughout
3
in the post¬
Fund
month
from
7.9%.
10.2%
portfolio changes
of
to
shown
As
reduced
were
in
last
total
a
of
list
of
the
the back page
of the new
of common
on
this
64 New Bond Street, W. I
stocks.
cent
Included in this list of
additions
heavy
ASSETS
several
are
industry
stocks
re¬
of the
such
U. S. Steel and Atchison.
£108,171,956
Associated Banks:
'
We
get
for
more
we
today
our money
buying some of the more popular
and higher priced 'peace' stocks.
""
"This feeling is based upon the
belief that on a Peace time basis—
Australia and New Zealand
Reserve
Liability of
6,150,000
Prop.
8,780,000
£23,710,000
General
Head
Office:
30th
£150,939,354
Manager
branches
New
all
in
London,
it
efficient
banking
traders
the
offers
thess
In
,
|//| LONDON OFFICES:
Threadneedle
47
E.
Street,
C.
throughout
8.
A.
v
;A
average
have
advance
to
68%
Office:
Head
and
Branches
Uganda
Bishopsgate,
26,
dealer
"The invest¬
—
the post-war
in
responsibilities, and
the
new
dealer
pe¬
new
ob¬
of investors
army
will
than
more
use
owe
an
even
ordinary
caution
: t ■
in making recommendations.
in
India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
i
"As
his
to
problem,
own
the
dealer will find it
Subscribed
Paid-Up
;
Reserve
The
Capital
Capital
Bank
conducts
every
description
banking and exchange business
Trusteeships
and
of
Executorships
also undertaken
NATIONAL BANK
Wot EGYPT
.
Head
Commercial
lei
111
Cairo
Office
Register No.
Cairo
1
and
RESERVE
FUND
.
,
.
.
.
himself
conduct
accord¬
ingly.
He will welcome the op¬
portunities of the new regime, and
willingly accept the greater obli¬
gations they entail."
From
CAPITAL
FULLY PAID
Lord,
Abbett's
Abstracts
—"With many years of seasoning
and experience in back of them,
£3,000,000
£3,000,000
the leading open-end funds of this
LONDON
v
and
8
7
King
E.
Street,
in
principal
Towns
all
the
in
and
the
performance
which
SUDAN
.
"T h
Time To Weigh Post-War
Whether the stock market
events
is
of
is
coming
disputable,
the
a
eco¬
but
to reflect the aggregate of
Nation's
hopes and anxieties
in material affairs, it sometimes is
good policy to stop and observe
what the market
seems
to be say¬
ing, R.
W. Pressprich & Co. de¬
an
interesting bulletin
discussing the effects of the war
in
clares
and
possible future trends. Copies
of this bulletin analyzing the sit¬
uation
in
some
detail
marizing the outlook
upon
prich
New
request from
&
Co.,
York
68
and
may
R.
is
bound
records—a
to
have
sum¬
be had
W. Press¬
William
Street,
City, members of the
New York Stock Exchange.
hard
They
policies,
proved
crucible
Bought
Sold
•
Quoted
-
of
is
values
the
Dow
protect shareholders."
Aug.
on
Industrial
31,
1943
was
New
York
I
the
roll
It
ac¬
standing
Representative Law¬
that
a
brief
a
service
of
the
by
and
show
decline
no
net
funds
showed
higher
were
March
on
was
4.7%.
was
35
August
on
31.
15.7%.
that
The
of
them
31
Press
Congressional at¬
upon the di¬
rect problems of war and their
impact on the domestic economyfocused
cooperation
Leaders
to
gain
in
the
ing from
the
market
was
a
stand-off
of, 17
are
Premiums Written
months
been
for
made
Wheeler's
Senator
swift
a
test
(D. Mont.)
bill to ban induction of fathers at
until January 1 and thus
give Congress time to inquire into
the whole manpower problem.
and
the
House
Ways
Committee has begun
Means
the spade work on a new tax
"Here
some
are
on
bill.
4.
and
Surplus
versary
in
of
post-war
of the most constructive
develop-
viz'
Continental,
group,
New
Hampshire,
in
war
1943
17
companies as a whole
$7,608,000 less business, a
drop of 6.7%.
wrote
Unearned
Premium
the other hand
the
by approximately $3,1.7%. Five companies,
group
000,000
Reserves,
higher for
are
or
and
reserves
liquidation
increased
values
of
as of June 30,
1943
approximately 40% above
June 30, 1942 values.
group
writing
profits
however, show a slight decline, as
follows: Agricultural, Bankers &
Shippers,
Hanover, Jersey
and
to
hold
their
statutory under¬
and
invest¬
net
ment income of each
company
the first
half
of
1943
be
noted
Camden
that
all
It will
companies but
Pacific
and
showed
Table
II
shows
also
loss
consumer
"excessive"
industrial
war
1942
ratios
the
reflect
losses
from
which the
severe
marine
action
enemy
foi
of June
the 1942
for
the
17
30, 1942,
expansion of
an
companies
period
were
64.9% and for
was
TABLE I
Reserves
(First Six Months)
6-30-42
1943
&
Pacific
Prov.
6,329
6,363
3,640
5,036
24,216
24,273
56,195
11,242
18,190
18,597
43,273
80,866
65,478
9,339
16,247
17,310
4,113
10,089
9,784
16.940
17,390
18,427
27,802
4,376
6,973
6,788
3,263
24,302
19,860
27,905
28,215
49,083
1,149
1,057
2,265
2,109
687
1,387
5,670
5,479
9,982
10,153
5,674
7,077
2,744
Amer.__
Union
—
2,768
5,674
5,798
8,025
9,305
3,796
2,484
4,351
5,728
5,954
4,555
3,228
5,398
5,782
3,512
4,006
2,090
_____
_______
7,051 '•
78,872
2,127
4,788
3,598
_____—
Washington
Security
3,334
14,019
9,939
—:
National
3,947
1,282
11,394
.
~
No.
$4,918
2,348
3,289
13,943
.
of
$2,510
2,568
3,620
'
American
Co.
$6,895
2,433
3.461
—___—
Jersey
$7,109
1,903
-—
Fidelity-Phenix
$3,751
<1,363
1,702
9,285
Continental
Ins.
$4,504
,
Shippers___
__
Hanover
($000)
1,278
.
Alliance
Gieat
,.1V
6-30-43
4,760
Agricultural
Firemen's
Surpius
6-30-42
6-30-43
($000)
($000)
Am.
IB
Unearned Premium
Net Prems. Written
4,147
1,907
■
6,969
■
6,992
8.855
8,495
15,579
16,450
13,220
16,458
$113,663
$106,055
$178,735
$181,730
$222,428
$338,243
Springfield F. & M
Total
(Continued
on page
1107)
■
'.I'll'
STOCKS
INSURANCE
Huff, Geyer & Hecht, Inc.
New
67
NY
PRIVATE
ST.
5
York
Wall
10
3-0782
.
.
■
•
for
Post
Square
Office
HUBbard
.
9
Boston
Street
135
WIRE
0650
LOS
NEW
CONNECTING:
ANGELES,
SAN
Enterprise
6011
PROVIDENCE,
YORK,
FRANCISCO
TELEPHONES
HARTFORD,
3
Salle Street
Chicago
La
7535
CG-105
SYSTEM
LOUIS,
S.
FRanklin
1-2875
profits
allowances
plants."
and
for the two pe¬
riods.
The high loss ratios re¬
ported for the first six months of
expense
reported surplus
companies as of June
30, 1943 is $115,815,000 above that
Total
Pacific.
Commodity
contracts.
un¬
derwriting losses in the 1942 pe¬
riod, while this year all companies
except American Alliance, Great
American, National Union, New
Hampshire arid Security, -report
statutory
underwriting ^ profits.
With regard to net investment in¬
come, there is little change indi¬
cated, though most of the com¬
panies report it fractionally below
last year's first half.
|;
liable
prior to such risks being assumed
by the Government. The average
loss ratio of the 17 companies for
WHitehall
Reconversion
for
compared
the size of the
down
the
were
PRIMARY MARKETS IN
on
Repeal of the renegotiation
authorizing the Government
9.
the
than in the 1942 period,
and their gain is only fractional.
on
premium
war.
recapture
on
which
uri-
7. Economies in Government.
to
1942
surplus.
The
higher unearned
other
prices.
Calvin Bullock's Bulletin
in
to
of
the "returning
6. Extension of the
8.
earnings
credited
were
portfolios
of undis¬
with the first half of 1942.
that only four
the
business
more
service legislation.
Compulsory military training
law
of Dividend Shares—"One
1953,
of
as
It will be noted
companies
.
after the
years."
the eleventh anni¬
and
June 30, 1943
compared with June 30, 1942.
National
5.
fee, the median gain of 4.7%
equal to the management fee
on
1942
.
3. Limitation
Army.
companies'
large volume
I
Prevention
employment.
ment
commenting
during the first
'■
veterans.
2.
the
the Congressional
for
Benefits
1.
of
the
the
tributed
Table II shows
also Unearned Premium Reserves
New Hampshire
subsidies
From
of
Camden
have
in
and
whose
are
three weeks in which to act, plans
from
was
companies,
rather actively traded,
shown. Table I compares Net
stocks
Bankers
less
Credit Corporation and its use of
for nine
in
In the tabulations which follow
figures
than
With
substantial increase, viz: the
higher market values of securities
tive
total fire losses.
to draft fathers after
move
make up
standard one-half of 1% manage¬
increase of 11.7%
an
a
result¬
1942
interest.
mary
to
the initial load. Viewed
the point of view of the
loss ratio
are
October 1 vies with this for pri¬
rose
enough in this short period when
the
experience, despite
fire
of business.
"The
this
surplus indicates that the collec¬
rise
reported
to
have
agreed to make it the first order
The most extreme gain
Six of the funds
With
peace.
preserve
'f*
companies,
analysis of 78
an
many
,
.
over-all loss
The
"Immediate
than
median
marine
ocean
lines.
period
Con¬
returned
gressmen,
the^ Associated
said in part:
,
• '
was
V
combination
wrote
move¬
ment, a tabulation of the perform¬
ance of
40 well-known open-end
in
and
and
than offset
more
Firemen's
international
,
,
increase, but held
an
was
automobile
calendar:
had
Insurance Stocks
decline in marine premiums there
has occurred a very sharp drop in
port confront
major issues
barometer
—
first six months of 1943 compared
with the first half of 1942.
Fire
domestic problems of historic im¬
tention
1-1248-49
which collectively write about 40% of the total fire and marine
business, shows a drop of nearly
8% in premium volume for the 52.1%.
Two factors account for
Alliance,
the
Teletype—NY
A. Gibbs, Manager Trading
Department)
Company states that
American
.
that
Bell
L.
Examination of the semi-annual .figures filed
by stock fire-insur¬
ance companies for the first six months of
1943, reveals operating
of New York.
of
Noting
•
280
By E. A. VAN DEUSEN
.
six
::
Exchange
'
Mississippi; Joseph W.
Martin Jr., Republican, of Massa¬
chusetts, House minority leader;
John W. McCormack, Democrat, of
Massachusetts,
majority
leader,
and Daniel P. Reed, Republican,
crat,
A.
This Week
this increase
the House floor.
gave
Francisco
L.
-
Slock
Bank and Insurance Stocks
premiums
months when this recognized mar¬
ket
279
A.
York
>
Seattle
L.
New
BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500
~
San
-
120
■
Alfred M. Best
noted in Associated Press
to
Laird, Bissell & Meeds
Members
WIRES
Chicago
-
TELETYPE
tives
that they
solicited.
St., Los Angeles
PRIVATE
call, while about 150 Representa¬
counts
it.)
C.
,
Following a recess of ten weeks
Congress reconvened on Sept. 14;
on
(P.
m.
..
results, in view of increased Federal taxes, to be better than
expected.
r
-
Congress Resumes
Following Recess |
were
,
in
possible eliminations to be made
answered
...
CALIFORNIA
constantly weighing the
possible purchases—of
"Meanwhile,
Jones
-
OF
Company
Service
Brokers.
of
Senators
Manhattan
Compared
-
Booklet
&
Butler-Huff & Co.
210 West 7th
1930's.
least
upon
and
Dealers
■'"■J--
proving themselves to¬
Alert and watchful manage¬
ment
to
Bulletin
to
are
day.
Reviewed
-
Special
these
themselves
an
|l|ll|lv-:;
e
Average
since the market is considered by
many
the
and
within 40 of its level at March 31,
1943,
During that period of five
Economic Events
nomic
im-
community and the
large over a period of
at
time.
barometer
in
the financial
Public
good
turn
,
r
EGYPT
to
'ncreasing cumulative effect
K
form
companies
on
oressive
C.
fact
Branches
continue
country
AGENCY
William
"In
one of securing
satisfactory
merchandise.
Basi¬
cally, the requirements of sound problems of raising revenue, of
:nvesting
will
have
seen
no
rationing, of mustering manpower
change. They will still be security, for production and for the mili¬
income, marketability and suit¬ tary forces.
able maturity. Many false prophets
"Pending before the House is a
will appear, offering too much to
simply-worded resolution, spon¬
dealer and investor alike, but the
sored by Rep. Fulbright (D. Ark.),
experienced distributor will read¬ which would
put the House and
ily recognize these financial Lore¬ Senate on record in favor of world
£4,000,000
£2,000,000
£2,200,000 /,
Fund
knowledge that they
have the safeguards of such gov¬
ernment regulation.
Bank of the
BANK STOCKS
the
stated
The past
greater than usual scrutiny of his
offerings.
To retain his enviable
place in the community he will
in
London, E. C.
\
INSURANCE &
re¬
B. Lewis, Democrat, of Colo¬
rado, who was sworn into office
after a long illness.
It was also
"To
of INDIA, LIMITED
Colony
broad
rence
the
Kenya
with
United Fruit would have to go
riod will have great opportunities,
but they will
bring with them
;
Government
certain
ment company
welcome
ligations.
the
in
Investors who buy invest¬
shares today do so
spects.
price from current levels, Pull¬
67%, U. S. Steel 59%; where¬
NATIONAL BANK
to
these
accorded
Company Act of 1940 investment
are subject to Federal
was
sreat
Bankers
been
Companies
regulation
53
ment
Banks
with
U.
the
has
Under the terms of the Investment
high price
registered in the five-year period
from 1935 through 1939, Kenne-
the
New York Letter
Berkeley Square, W. 1
Agency arrangements
1105
'
faithful guide eulogy for the late Representative
these figures Francis D. Culkin, Republican, of
are at least worthy of thought."
New York, opened the session of
the House. Speeches in tribute to
About Developments in the Field his
memory were made by Repre¬
From Hugh W. Long & Co.'s sentatives John E.
Rankin, Demo¬
complete
countries.
29
i
is far from being a
to the
future but
in
investors,
to
interested
travellers
and
most
•
and General Foods 7%.
With over
Australia,
service
*' I' ('
only 18% from present prices,
General Motors 23%, duPont 18%
Zealand, Fiji, Papua and New Guinea,
and
and
>.
of
States
and
up
Wales is the oldest
largest bank in Australasia.
870
Motors
study showed that in order
reach
to
as
'
and
recent
in
George Street, SYDNEY
The Bank of New South
General
selling
are
man
DAVIDSON, K.B.E.,
SIR ALFRED
;•
V
Government has given to compa¬
nies of this type.
Special treat¬
cott would
w
Aggregate
Assets
Sept., 1941
Steel
other well known peace issues.
1817)
Fund
line relative to issues such
U.
duPont,
as
!.■• £8,780,000
Reserve
and
out of
NEW SOUTH WALES
(ESTABLISHED
assuming a satisfactory rate of in¬
dustrial activity—stocks like Ana¬
conda
BANK OF
Paid-Up Capital
'
the past decade from the
are
*
by owning some of these currently
unpopular issues than we can by
-
.
Bank, Ltd,
*
f^
j
point of view of the holder of
shares in Investment companies is
the special recognition which the
as
inclined towards the view that
can
:
'
> s
»
Trading daily 7 a. m. to 5 p.
Inquiries invited.
Orders
the
Burlington Gardens, W. I
Deacon's
■
Analyzed
folder, most
purchases consisted
Glyn Mills & Co.
I
'
of
Charing Cross, S. W. I
Williams
l'1, ft ■
j**
From
George Putnam Fund's
companies in recent Revenue Acts.
Portfolio Review—"Cash holdings
Smithfield, E. G /
TOTAL
|
ment
Scotland
Bishopsgale, E. C. 2 i :
49
be expected
logic¬
era."
war
LONDON OFFICES!
8 West
favorable results
tne
v
ments of
InvestmentTrusfs
Royal Bank of Scotland
*
r
'
TO
.
PORTLAND,
Enterprise
BOSTON,.CHICAGO,
AND SEATTLE ,
7008
Enterprise
7008
rMiaaM'WUslttWH A *"
■'iv.ii.'-,
FINANCIAL CHRONICLE
THE COMMERCIAL &
1106
ternational anarchy, for; hew and
Organized Internal'! Go-operation
Favors
material
unprecedented
an
wars,
for
and
spiritual impoverishment of man¬
kind.
Many times in the course
of
history nations have drifted
Keep Peace—By Force, If Necessary
To
destructive
more
even
(Continued from page 1104)
catastrophe through failure,
people. Outstand¬
until too late, to recognize the
these are:
which confronted them
1. All peoples who, with a "de¬ dangers
British forces at El Alamein; in
cent respect to the opinions of and to take the measures neces¬
supplying our own expedition to
sary to ward off those dangers.
North Africa; and, at a desperate mankind," have qualified them¬
selves to assume and to discharge Post-war co-operation to maintain
hour, in putting our war planes
the
peace
is for each peaceinto
the
air
over
the Pacific the responsibilities of liberty are
seeking nation scarcely less essen¬
entitled to its enjoyment.
islands and in China.
2.
Each sovereign nation, large tial for its self-preservation than
Diplomatic foresight and pa¬
is the present co-operative effort
or small, is in law and under law
tient and vigorous activity by the
to win the war.
the equal of every other nation.
agencies
of our foreign policy
'
IV
3. All nations, large and small,
played an indispensable part in
If there is anything on which
which respect the rights of others,
preparing the way by which the
all
are entitled to freedom from out¬
right - thinking
people
are
huge strategic North African area
side interference in their internal agreed, it is the proposition that
was brought without heavy losses
the monstrous specter of a world
affairs.
into the sphere of the United Na¬
4. Willingness to settle interna¬ war shall not again show its head.
tions, and the French fleet was
tional disputes by peaceful means, The people of this and other lands
kept out of German hands. Had
this
demand
insistently.
acceptance of international law voice
Vichy felt it feasible to ignore
and observance of its principles There is danger in complacency
our
diplomatic pressure directed
and
wishful thinking.
The na¬
are the bases of order among na¬
toward preventing the surrender
tions and of mankind's continuing tions that stand for peace and se¬
equipment
transporting
in
alike
importance
invaluable
of
minds
the ing
to
into
our
among
-
.
to the Nazis and the deliv¬
areas
ery
as
African
West
and
North
the
of
of the French fleet to Hitler,
Laval
had
planned, or had
Spain entered the war on the side
of the Axis, as Hitler had hoped,
Mediterranean
the
of
control
into the
have early fallen
would
hands of
our
enemies. Instead, the
with a
skill and precision unequaled in
military annals, upon this gate¬
way through which we are now
invading the European continent.
The
Mediterranean operations
forces
Allied
available
the Soviet front; just
on
Russian
the
force
air
German
the
weakened
as
converged,
by
resistance,
holding the German armies on the
eastern battle line, prevented Hit¬
ler
from
parrying
thrusts
our
search of enduring peace.
in
Non-discrimination
5.
eco¬
nomic opportunity and treatment
is
essential to the maintenance
promotion' of sound interna¬
and
tional relations.
6.
Co-operation
tions in the spirit
between na¬
of good neigh¬
bors, founded on the principles of
liberty, equality, justice, moral¬
ity and law, is the most effective
method of safeguarding and pro¬
moting the political, the economic,
social
the
being
of
cultural well-
the
and
of
and
nation
our
all
These
beliefs
are
the
among
rules of
the Philippines.-
Organized <s international,
co¬
operation can be successful only
co-operation for the maintenance
of peace must be based upon the
willingness of the co-operating
nations to use force, if necessary,
to
the
keep
be
peace.
that
certainty
appropriate
There must
adequate and
means
available
are
and will be used for this purpose.
Readiness
to
use
if
force,
neces¬
for the maintenance of peace
indispensable if effective sub¬
sary,
stitutes for
war are
to be found.
nations
between
Differences
be those of a non-legal char¬
preparedness on the part of all
peacefully inclined nations to join
from aggression against the Soviet
together to make them effective
commonly referred to as justicia¬
ble. Another cause of armed con¬
and
nations
in
Union.
diplomatic agreements with
Our
lies the greatest
hope of security,
happiness and progress for this
country and for all countries.
soil and with the government of
Vigorous participation in ef¬
Iceland made it possible to guard forts to establish a
system of in¬
the great North Atlantic passage ternational
relations
based
on
as a precious route
for our sup¬ these rules of conduct, and thus
and
plies
officials
Danish
fearless
and
troops
free
on
defense
as
against attack from the north.
The perseverance of China, the
first victim of the movement of
aggression, in resistance to Japan
has been aided in
in
leaders
her
faith of
by the
ure
small meas¬
no
based on their knowledge
of our history and policy and on
their observation, as time went
us,
efforts to achieve a
peaceful settlement in
the Far East, our economic sup¬
of
on,
fair
our
and
only
held
has
ance
enmeshed
our
to
is
fea¬
foreign policy—second
present overriding
our
winning
victory.
Here, too, our nation and other
peacefully inclined nations have a
vast
and
military
crucial
Atlantic Charter
the declaration
the nations
war
common
^
•
the
of
area
interest.
In
the
with
complete
and
in
by United Nations
self-preservation have
expressed their recogni¬
clearly
Japanese forces tion of the existence of this area
which might otherwise have been
of common interest. Our task and
loosed against us and other of the
that of our associates is to utilize
United Nations in the Pacific; and
this common interest to create an
China
is
playing an important effective
system of international
part ir the United Nations' pro¬
co-operation for the maintenance
gram for the winning of the war of
frojnt substantial
and achievement of
The
policy
agencies of our foreign
at all times at work as
of
the
national
attack
upon
defense.
they
us,
have been intensively at work in
assisting
achieve
armed
victories
fast
increasing
and significance.
now
■
forces
our
the
'
which
in
to
/
.
Beyond final victory, our fun¬
damental national interests are—
they always have been—the as¬
suring of our national security
and the fostering of the economic
and
social
well-being
of
our
as
people.
To maintain these inter¬
ests, our foreign policy must nec¬
essarily deal with current condi¬
tions and must plan for the fu¬
ture in the light of the concepts
and
beliefs
which
we,
as
a
na¬
tion, accept for ourselves as the
guiding lines of our international
/behavior.
of
nation
intends
I
am
Throughout
our
national
his¬
basic policy in dealing
tory,
our
with
foreign
nations
certain
beliefs
has rested
which are
widely and deeply rooted in the
sure
history
and the
people today
our
also that
its
do
to
our
our
part,
nation and
each of the nations associated to¬
day in the greatest co-operative
enterprise in history—the winning
of this war—intends to do its part,
after the victory of the United
Nations, in meeting the immense
needs
of
the
post-war
period.
•
propositions.
First, each nation should main¬
a
stable government.
Each
tain
nation
should
itself
for
of
to
decide
and
details
free
be
forms
the
its
only motive is conquest
self
aggrandizement.
We
and
aggression
by
-
must, therefore, provide for dif¬
ferences of a political character,
for those Of a legal nature and for
cases where there is plain and un¬
adulterated
aggression.
threat to the peace
a
should
world
be
of the
submitted
to
such
remedies
tion, conciliation and good offices.
;
Disputes of a legal character
which
present a threat to the
of the world should be ad¬
judicated
by
an
international
court of justice whose decisions
would be based upon application
peace
of
a
and
of its human
utilization
material
and
resources
practicable
greatest
economic
welfare
should
free
be
the
of
measure
and
social
se¬
Each
curity for all of its citizens.
nation
in
affairs
to promote the most
economic
it
—but
its
a
organization
its
conduct
should
fairs in such
the
social
and
way
as
af¬
to respect
rights of others and to play
part in a system of
necessary
economic
international
sound
lations.
■
Third,
each
re¬
,
nation
should
be
willing to submit differences aris¬
ing between it and other nations
to
processes
of peaceful settle¬
ment, and should be prepared to
carry
out other obligations that
devolve
may
principles of law.
a
system
lations based
of international
and
law
justice as distinguished
anarchy of unbridled
and discordant nationalisms, eco¬
the
method is
The
peaceful co-operation.
form
and
opportunities to develop
and progress in ways of its own
choosing; in which there will be,
for each nation, improved facili¬
ties
to
attain, by its
and nations that seek to
gressors
resort
for
force
to
of
plishment
international
the
purposes
accom¬
of
their
important degree, upon what
an
agencies of the fu¬
isting Court of International Jus¬
tice may or may not need to be
remodeled, the
of
the
and charac¬
for making in¬
scope
means
tions and arrangements that may
be desired and feasible—all these
and
tween
and
in
co-operation
nations are fruitful causes
of hostility and conflict.
But we
also know that economic stagna¬
tion
and
countries.
all
efforts
for
In
that
world
stable
with others,
increasing measure of political
other
and
If
cultural welfare.
our
nations
and
nation
fail in
will be open
this
for
like-minded
task
a new
the way
rise of in¬
relations
with
analysis,
the
decides
portance
country
tries
the
peace
legis¬
govern-
"??/?•
reached
now
V? ??•
statements.
I
a
hope to be able to
undertake this from time to time
in the
early future.
The
these
far
importance
supreme
problems
above
should
the
lift
of
them
of
realm
partisan
politics.*
It is gratifying that both in the
Congress
and
elsewhere
great
considerations
numbers
so
of
of
party
thoughtful
men have
A heavy re¬
approached them.
sponsibility rests upon all of us to
consider these all-important post¬
problems and to contribute to
war
their
solution
in
a
wholly
non¬
partisan spirit.
CHICAGO, ILL.—Lowell Nie& Co., Inc., 120 South LaSt., announce the association
buhr
Salle
with them of Arthur R. Sawers.
Mr.
would
upon
hostilities.
well
the
of
war
made
it
?
originally
a
number
of years ago with Ames, Emerich
& Co., has also been in the mort¬
and
investment
department
of the Massachusetts Mutual Life
Insurance Co.
He
will
markets in
and
estate
;
specialize
in
making
industrial, utility, real;
investment
trust
se-,
curities
exclusively for dealers
and banks along the lines fol¬
lowed by Lowell Niebuhr & Co.,
Inc., for
many years.
Jos. W. first* With
Lehman Bros., Chicago;
CHICAGO, ILL.—Lehman Bro¬
thers, 231 South La Salle Street?
of
association
the
announce
them
Joseph
with
Mr.?
W. Hirsch.
Hirsch previously was with Keb-;
bon,
McCormick
&
Co.,
and
its
predecessor, Stern, Wampler &
Co., and Lawrende Stern & Co. He
is a member of the Chicago StockExchange and has been identified
with
and
La
Salle
Street
investment,
banking firms since 1918.
Empire District Electric
\
confront
this
other coun¬
termination of
The
6%
cumulative preferred
Empire District Electric
Company offers an interesting sit¬
uation, which has been improving
stock jof
in several
as
It became the obvious
duty of the Department of State
give special attention to the
study of conditions and develop¬
ments relating to such problems.
to
who
Situation Interesting
in the field of foreign
as
Sawers,
started in the business
all-em-
and of hu¬
problems of crucial im¬
relations
nations, based on a compre¬
mutually bene¬
international co-operation As the
hensive system of
final
the
outbreak
The
clear that
economic
the
of
stage
at which it becomes possible to
discuss in greater detail some of
the
basic problems
outlined in
this address and in my previous
it is the will of the peoples of
distress,
greatly helped in this task by the
establishment of sound trade and
other
stability and of economic, social
governments.
among
happens within as well as among They are being studied and dis¬
nations.
We know that political cussed by the people of this coun¬
and the peoples of other
controversies and economic strife try
among
branches
have
We
ture, the extent to which the ex¬
The
own.
effort
own
ceeding with this work we en¬
visage the fullest co-operation be¬
gage
functions of the
ternational action effective in the
peace
The primary responsibility for
dealing with these conditions rests
on
each and every nation con¬
cerned.
But each nation will be
in
en¬
and by the numerous
suggestions and
expressions of
opinion which we received from
all parts of the country. In pro-'
nomic and
maintenance of peace, the nature
of international economic institu¬
assure
;
individuals
and groups,
re¬
there must
But to
security
nation;
the part of
on
private
responsible
rules of morality,
on
alsp be means for restraining ag¬
peace.
every
We have been aided
All of this calls for the creation
of
ter
conditions in which there will be
for
search staff.
it in an effec¬
organized peace.
undermine
hanced
leaders, without regard
politica 1 affiliation, and?
the assistance of a specially con¬
stituted- and highly qualified re¬
their
upon
tive system of
of
which each nation will have
national
to
decide
to
for itself the forms of its internal
Those needs will embrace the task
taking practical steps to create
agencies
government and of many
ment.
■
should
nation
economic
its
way as
effective
'
■
.
political. The outstand¬
ing characteristic- of such a sys¬
use
the tem is liberty under law for na¬
negotia¬ tions as well as individuals.
Its
which would
of discussion,
agencies
■
each
Second,
of other
security
and
/
peace
from
Political differences which pre¬
sent
long
—so
cultural back¬ bracing issues of
man welfare.
wardness, and social unrest with¬
in nations, wherever they exist,
an
'
upon
temper
are
numbers
our
the
problems involved
willing to accept
are
fundamental
certain
to
.
.
read
of
of the world
war-torn world to heal its wounds.
I
representa¬
'
jointly
with
the
other
peaceseeking nations, in helping the
peace.
As
of
greatly by public discussion of the
peacefully
inclined are among the problems which
nations must, in the interest of are receiving attention and which
general peace and security, be will need to be determined by
willing to accept responsibility for agreement among
governments,
this task in accordance with their subject, of course, to approval by
their respective peoples. They are
respective capacities.
The success of an organized sys¬ being studied intensively by this
tem of international co-operation government and by other govern¬
with the maintenance of peace as ments. They are gradually being
its paramount objective depends, made subjects of consultation be¬
stable peace.
are
instruments
Since
a
is
whose
associated in this
now
for
her
on
fundamental
a
preoccupation
of
and
port, and, more recently, our mil¬
itary assistance.
China's resist¬
be
must
ture of
banished,
effectively
be
nations
flict
to create conditions in which war
may
collaboration
had
tives of other interested
conduct
system of organized
application by other
willingness and
constant military pres¬
against Japan had its inevit¬
able
effect in
deterring Japan
our
sure
dealing with post-war
problems. In doing this work we
international
clear
,
for
nations.
abundantly
is
litical, and those capable of being
resolved by applying rules of law,
while,
tion
to the extent to which the nations
acter, commonly referred to as po¬
international
making of the peace and prepara-
security.
that a
It
in
undertook, through special groups
organized for the purpose, to ex¬
amine the various matters affect-/
ing the conclusion of the war, the
will be neither peace nor
which lead toward armed conflict
application as
with
interest
active
lative
may
and
the
in
afforded
relationship
our
his
the Department of State
tween the executive and the
universal
In their
of
with
and
the work,
the
important tenets of our na¬
tional faith. They are capable of
duct.
is
achieved
be
record
possible prosecution:of the war. :♦
:?'By direction of the President ?■
curity must now make up their
minds and act together—or there
most
national
upon' the
nations? a
relation to
.
con¬
toward his southern flank. Mean¬
rests
indepen¬
responsibility in
dependent peoples who
aspire to liberty. It should be the
duty of nations having political
ties with such peoples, of manda¬
tories, of trustees, or of other
agencies, as the case may be, to
help the aspiring peoples to de¬
velop materially and educational¬
ly, to prepare themselves for the
duties and responsibilities of selfgovernment, and to attain liberty.
An excellent example of what can
dent
governmental organization
as it conducts its affairs
in such a way as not to menace
is
nations.
There
Thursday, September 16, 1943
a
directions, according to
discussion appearing in
the "Pre-'
ferred Stock Guide" issued by G.'
A.
Saxton
&
Co.,
Inc.,
Street, New York City.
the
70
Pine|
Copies of
"Guide," which also contains
spread over the earth, quotations on preferred and com¬
not alone in these respects, but the scope of these studies was ex¬
mon public utility stocks, may be
also in furthering educational ad¬ tended and work upon them was
had upon request from G. A. Saxin so far as
vancement and in promoting ob¬ steadily increased,
ton & Co.
was
compatible with the fullest
servance of basic human rights.
ficial
war
-
l«*
Volume 158
Number 4212
THE COMMERCIAL & FINANCIAL CHRONICLE
Calendar Of Hew
Following is
Security Quotations
ft.-
N0leS
list of issuejs whose registration state•
a
ments were filed less than
twenty days
grouped according to the dates
are
Municipal News And
■
tion statements will in normal
These issues
which the registra¬
ago.
on
become
course
effective, that
is twenty days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain foreign public authorities which
(Continued from page 1103)
be
frankly recognized and au¬
thorized by the Constitution so as
to prevent writing into the State's
fundamental
is of
which
material
only temporary interest.
the
on
law
other
If,
hand, it is believed
1107
Russia Reported Making Bid For
Separate Peace
In Broadcast Beamed To
Germany
The Moscow radio declared on
Sept. 9, in a broadcast beamed to
Germany, that the Nazi Government of Adolf Hitler alone stands in
the way of a "just peace" between Soviet Russia
and the German
people.
The
broadcast was directed to
Germany in the name of the
Soviet-controlled "Free Germany National
Committee," according to
a
dispatch reported in the New®
—
normally become that the State should
generally York "Journal-American" of Sept.'
days.
follow a. pay-as-you-go plan and 9 by David Camelon of its Wash¬
These dates, unless otherwise specified, are as of 4:30 issue bonds only in such extra¬
ington bureau. This report also
P.M. Eastern War Time as per rule 930 (b).
ordinary circumstances as would stated in part:
■'
"The entire spirit of the Rus¬
Offerings will rarely be made before the day follow¬ yield an extraordinary vote, such
as
a
two-thirds
majority,
the sian propaganda offensive, it was
ing.
effective in
one
Constitution should be revised to
THURSDAY, SEPT. 16
preferred
POPE & TALBOT,
INC.
Pope & Talbot, Inc. has filed
tion
statement
capital
covering
stock,
lumber
and
lumber
Proceeds—The
tain
etc.
owned
are
who
will
by cer¬
of
all
receive
proceeds.
Underwriters—Blyth
Dean
Witter
<fe
Co.,
&
and
Inc.,
Co.
Registration Statement No. 2-5210. Form
A-2
(8-28-43
;■/7, /vy.
of
to
ATLANTA
GAS
LIGHT
Gas
Atlanta
Light
Consolidated
$18
registration
$7,500,000
due
&
statement
with
the
of first mortgage bonds,
and 20,000 shares of 5%
1963,
lative
preferred
stock,
par
share,
on
which
sealed
bids
Address—243
for
SEC,
value
will
series
cumu¬
$100
a
asked.
be
Peachtree St., Atlanta,
Ga.
Business—Company is an operating util¬
ity
company
engaged
primarily
in
the
business
of
purchasing,
distributing and
selling natural gas in 20 municipalities in
Georgia, and manufacturing, distributing
and
selling artificial gas in five munici¬
the
it
of
its
attached
and
the
of
continu¬
gas
ously since 1856, except when its
was damaged during the Civil War.
Proceeds—Net
crued
interest
to
plied
able
the
the
to
cipal
dividends,
that
will
funds
redemption of $5,875,000 prin¬
of
amount
general
bonds/
mortgage
the
of
rants
attached
effective
67/.
redemption of
cumulative
preferred
share.
shares
13,000
stock
-'
CENTURY
to
STOKELY BROS.
Stokely
tered
mon
of
SHARES
value
SEPT. 22
CO., INC.
value,
and
common
sidiary,
prior
which
exchange
an
Address—941
N.
being
stock,
stocks
its
of
of
it
Meridian
St.,
India¬
by its subsidiaries.
of
its
value
par
$1
value
par
change.
a
.share,
one
hold¬
to
of
the
share
stock
common
Holders
$1.50
in
of
ex¬
cumulative
dividend
preferred
stock of Stokely Foods,
Inc.,
given the
right to exchange four
of
are
such
shares
for
$20
each
five shares
of
Inc.,
value..'
The
Sept. 1, 1943,
dividend on the preferred stock of Stokely
Foods, Inc., has not been declared.
Any
shares
par
of
such
preferred. stock
of
that
exchanged after the
close
of
business Sept. 30, 1943, will not be entitled
company
to
the dividend
receive
tive
prior
Brothers
stock
Co.,
Inc., which
payable Oct. 1, 1943,
clared
record
1943.
the 5%
on
preference
&
the
at
close
/'"•
Street,
principal
in
are
of
cumula¬
of
has
to
Stokely
been
de¬
holders
business
Sept.
of
30,
list
prises
shares
July
on
the
time
Co.,
offering
1943,
by
the
shares.
Trust
the
sale
of
receive
these
$5,-
shares
liquidating value remained the
same
if
as
July 20, 1943.
Registration Statement No. 2-5208. Form
on
S-5.
(8-27-43).
,
„
Amendment filed Sept.
effective date.
10,
1943, to defer
/
.
a
reg¬
istration
of
de¬
statement
for
certificates
posit for $996,500 5'/2%
bentures, due 1946.
sinking fund de¬
Avenue
and
Farmer
Business—Character of business done by
original issuer is a department store and
general mercantile business, at retail.
'
its readjustment manager.
Offering—Call for deposit of bonds
der plan
un¬
of debenture adjustment.
of requesting deposits
depositors to consent to an ex¬
Purpose—Purpose
is
ask
to
tension
of
thorized
Oct,
fications
tion
maturity
5 '/a %
to
1946,
the
debentures
31,
the
of
date
1952
the
from
and
See
1,
modi¬
Registra¬
2-5176.
(7-5-43).
Stop order proceedings discontinued and
registration
statement
(9-3-43).
;;7y-v.."
'
DATES
withdrawn
Aug.
CROWLEY, MILNER & CO.
Crowley, Milner & Co. have filed
1952
fund
and
We present below a list of issues
whose registration statements were filed
Street,
days
offering
mined
or
dates
or
more
have
been
not
unknown
are
but
ago,
to
whose
deter¬
3,
EXPORT AIRLINES, INC.
Export Airlines, Inc., has filed
a
registration statement for 43,888 shares
of capital stock, par value $3
per share.
American
Broadway,
Business—Is
now
port
operations between
Europe,
tary
the
United
bases
America
and
in
the
conducts
States
the
in
engaged
and
tween
New
York.
air
United
trans¬
States
operations
and
certain
Caribbean
and
be¬
mili¬
South
under
contract with the Navy.
Underwriting—No underwriters.
Offering—The shares are issuable upon
the
exercise
warrants
7,900
of
of
the
capital
airlines
shares
of
stock
company
5 7c
purchase
attached
cumulative
pre¬
ferred stock of it's parent, American
Export
Lines,
Inc.,
warrants
are
a
steamship
exercisable
company.
by
the
$996,500
The
transfer
"In
be
this
connection
pointed
stitution
be
it
that
out
should
the
requires
now
Con¬
two-
a
thirds majority vote to author¬
ize
large
amounts
of
debt
for
units of- local government. Sec¬
tion
12
"No
of
Article
county,
ship,
political
corporation
to
or
the
the
of the
for
in
for any purpose
and
such
consent
voters
al¬
indebted
income
provided
debentures
Address—Monroe
in
with¬
year,
of
any
revenue
two-thirds
thereof voting
on
Research
contains
a
Institute's
issued
extended
as
4%
to
debentures
due
V.
Avenue
of
old
due
and
modifying
debentures
on
5Va %
Farmer
of
are
plan
of
basis
be
of
maturity
of
issued
$50
par
$40
in
of
the
1942.
States
own
recent
address
"The
tiate
conclude
or
Society of Se¬
Inc. announces
Analysts,
indicated
a
"The
On- Monday,
Sept. 20, M. D;
Uopovic of the Blue Ridge Cor¬
poration will speak on "Over¬
Situations,"
and
Sept. 22, S. C/ Allyn, President
Register
Hitler's
—
Soviet
a
the broadcast continued:
the
Nazi
jus
im
Govern
Interesting
'Hitler and his accomplices are
from the firm.
Federal taxes.
The combined loss
and
Bank & Insurance
ratios,
expense
Stocks
and
1943
from
1105
page
period 51.9%.
riod
for
average
the
1942
increase
well
the
effect
of
higher
;■:v;r.
Agricultural
Am.
1942
,
investment
—$5.94
—0.31
Bankers & Shippers-
date
to
and
The 4%
one
under plan of capital stock
of
de¬
share of
readjust¬
ment.
•
Loss Ratio
$2.07
0.68
,
'
Expense Ratio
(First 6 Months)
1943
0.67
1942
1943
1942
Stop order proceedings discontinued and
withdrawn
Aug:
1943.
(This
list
is
1943
74.1%
51.8%
39.51:
44.0%
51.9
55.2
47.0
45.1
—0.07
2.13
2.77 ?
2.02
60.4
51.3
44.8
46.2
0.20
0.64
0.62
53.4
52.6
45.0
44.2
—0.47
0.89
1.10
1.08
65.1
46.9
39.0
38.6
!_
at
56
—1.04
1.16
1.21
1.22
72.1
45.9
38.5
37.6
"Firemen's
—0.27
0.28
0.08
0.11
57.4
48.2
45.0
44.1
—1,40
__
Great American
Street, New York City, at
12:30 p.m.
—0.22
0.63
—1.09 v
1.35
0.70
67.7
48.6
39.6
41.1
Ins. Co. of No. Amer.
—7.16
0.01
1.33
1.27
104.0
59.0
30.6
37.3
Jersey
Broad
—0.18
0.60
1.16
1.02
58.7
51.7
45.8
46.9
Hanover—
___'
_______
National
Union
,0.61
,
0.70
76.4
;
—0.53
53.1
55.6
44.1
43.1
—0.20
1.11
1.10
51.3
49.0
49.2
48.2
1.60
3.22
2.55
58.8
51.5
45.4
47.1
49.8
36.4
4.20
4.80
Prov. Washington.^.Security
—1.66
0.62
—2.83
—0.29
0.75
0.67
Springfield F. & M._
—0.30
0.25
2.54
•
2.55
Schapiro &
Co.,
Hampshire
____.
Pacific
1 Wall
43.5
0.05
Reserve Member Banks
A.
42.5
—1.61
New
M.
55.6
—0.26
Trend Of Deposits Of
Street, New York City, have
pared
0.77
0.71
72.6
43.5
75.5
53.5
36.5
42.3
50.8
55.3
44.1
43.3
64.9%
v
pre¬
most interesting table of
a
Average
:
__________
♦Exclusive of other companies
51.9%
41.9'
*E/3%
in Loyalty Group.
ber banks of the Federal Reserve
System
data
since
Dec.
31,
1941
with
had
of the
of
from
upon
—More
30 selected member banks.
on
table,
the
with
possible
changes in the situation,
a
M.
A.
Indispensable Than Ever—
dis¬
future
may
Schapiro &
written request.
Frank
be
Co.
Security Dealers of North America
6iThe
»
Recognized Directory of Stock
j /
and Bond Houses"
incomplete
this
Correspondents
Frank
Strauss
York
PUBLISHED
Ginberg To Visit
Strauss
Ginberg,
statistician
.
August 1943 Edition Just Off the Press
POST OFFICE DELIVERY DISTRICT NUMBERS
Bros., 32 Broadway, New
City,
will
visit
the
the Middle West next
will
week)
3,
make
his
ARE
week.
headquarters
Sept. 22
White
&
Sept. 27
vestment
Co.
in
and
23, and
St.
Louis
and 28, where
dealers
consult with him.
are
SHOWN IN THIS NEW EDITION
corre¬
PRICE EIGHT DOLLARS
He
Plus
1%
Sales
Tax
in
New
York
City
at
Baum, Bernheimer Co. in Kansas
on
SEMI-ANNUALLY
of
spondent firms of Strauss Bros, in
City
Registration Statement No. 2-5176. Form
S-l.
(6-30-1943).
statement
Best
:—0.10
Camden
preference
amount
plus $10 in cash for
registration
were
II
Income
,
$2.25
7
that
Company's reports.
1942
$1.52
—0.36
_______
Alliance
income
Figures in the tabulations
compiled from Alfred M.
Net Inv
1943
six
approximating
(First 6 Months) (First 6 Months)
•
first
Indications,
of 1942.
TABLE
Stat. Und. Profit
the
1943.
net
as
substantially
pe¬
reflects
for
of
therefore, point to reasonable un¬
derwriting profits this year, as
was
This
95.2%
months
Expense
ratios vary a great deal among the
17 companies, it will be observed.
Their
calculated
from these averages, were 106.8%
for the first six months of 1942
'
Fidelity-Phenix
held
are
under
a
was
circular may be had upon request
"
Continental
Company, will be speaker.
meetings
wanted
interesting possibilities, ac¬
to a circular being dis¬
tributed by Pflugfelder, Bampton
& Rust, 61
Broadway, New York
City, members of the New York
Stock Exchange.
Government,
Copies of this
somewhat
Cash
the
cording
announced.
National
an
of
offer
"By indirection, therefore, it in¬
Russia was willing to sit
down and negotiate
peace with a
Government which would replace
dicated
43.3%.
the
that
The current situation in Denver
& Rio Grande Cons.
4s, of 1936
Nazi Government of Hitler.
will meet
Friday, Sept. 17, the subject to
of
people
Rail Situation
that
on
on
said
ment."
41.9%, while for the 1943
period it is slightly higher, being
Growth
broadcast
possible
nego¬
that the Railroad group
be
Ger¬
our
Pope Pius de¬
as
'today' but knew it
peace
with the
peace
rights of
nation, just
German
brought about.
willing to
just'peace, would not
a
'overwhelming; majority'
30,
Analysts To Meet
York
be
broadcast
'no one' would be
of
manded it.
purposes,
(Continued
New
man
declared that only
by such a houseeleaning could the
peace that the Pope asked in his
the
The
the
the German house' of
a just peace.
'The
committee,'
using
the
words of Pope Pius XII for its
-
N. Y.
that
cleansing
the
June
at
people
"
methods employed by the various
States to create debt and a tabu¬
lation showing the per capita net
deben¬
exchange for
prior
face
be
debenture
indenture provisions.
will
to
deposit
sinking fund
under
extending
shares
bentures
1952
to
certificates
1946
adjustment,
stock
extended
as
through
holders
stock
German
Detroit, Mich.
bentures
31,140
house of this pest, thus removing
the obstacle which stands in the
sur¬
of
summary
reg¬
5'/2 %
Business—Department store and general
business, at retail.
Purpose—Company proposes a plan of
debenture adjustment and a plan of
cap¬
ital stock readjustment.
The 53/a%
de¬
tures
general, is the principal force
capable of cleansing the German
to
the obstacles to
proposition."
The
vey
subdi¬
or
amount exceeding
an
year
of
other
or
State shall be
become
manner
out
reads
town¬
district
vision of the
to
10
town,
city,
school
cussion
a
mercantile
us.
AMERICAN
Address—25
for
$1,245,600
y •
1962.
twenty
to
statement
sinking
UNDETERMINED
must
ordinary majority.
Copies
istration
OF OFFERING
broadcast
the trend of deposits of the mem¬
Registration Statement No. 2-5175. Form
D-l.
its
au¬
May
various
indenture.
Statement No.
of
Registration Statement No. 2-5212. Form
S-l.
but
Underwriting—Company has engaged the
services of H. M. Preston &
Co., Chicago,
as
to
Soviet
powers.
"In
and
•"They have governed violently
Russia—in
two
Hitler
and will cede only to violence.
"
'The Wehrmacht, from private
curtail the vital
All
Street, Detroit, Mich.
of
that
way
priced
CROWLEY, MILNER & CO.
Crowley, Milner & Co. have filed
with
merger
the
understand.
the
guise of constitu¬
amendments
curity
would
a
whom
in
to
Wehrmacht, 'from private to gen¬
eral, is the principal force capable
for
v
,
effect,
language
Himmler
American
actions, and to convince Germans
their sole safety
lay in a close
rapprochement
wishes
the provisions requiring an extra¬
the
sale
for
provide that
could not be author¬
com¬
authorized
20,
could
-
to
appeals
and
charity. He
help justice and
human
solidarity to regain the
upper hand must speak only in
geared to
was
Anglo
any
people
reason
presented to the electorate under
Ripley & Co., Inc., from
the liquidating value of
at
from
&
to
as
under the
debt
Ripley
present
Harriman
to
trust
underwriter.
200,000
to
shares
and
>•
-
principal
Trustees
of
banks
Constitution
so
Washington,
of
Germany
today, reported by the FCC, the
'Free
Germany Committee' told
ized
the
of
1943.
■
of the
tional
such
Boston.
object
diversified
a
companies,
Offering—The
the
cumulative prior preference
company's 5 %
stock,
which
effect,
Address—Monroe
'offers
company
stock of Stokely Foods, Inc.,
common
50-cent
shares
,
issues
any
the
Federal
insurance
companies.
Underwriting—None.
ers
1943, to defer
Inc.
Ind.
Offering—The
4,
public at the liqudatplus a loading
in
of
sub¬
Business—Selling fruits, fruit juices and
vegetables which are processed and packed
for
war¬
become
trust
is
to
enable
investors
to
acquire
through purchase of its shares, a security
of
moderate
price which will be readily
marketable, and which will represent an
offered
the holders
to
preferred
Stokely Foods,
napolis,
preference
are
plan
that
so
shares
offering price (ap¬
proximately 7.5% of the.liquidating value).
654,000
&
cumulative
par
under
the
to
7%
Proceeds—The
the SEC
airlines
TRUST
200,000
then
of
outstanding
Co.,
Inc.,
has regis¬
106,050 shares of com¬
stock, $1 par value, and 42,925 shares
5%
$20
&
Bros.
with
filed Sept,
offered
be
time
-WEDNESDAY,
these
to
registered
cash
(8-31-431.
proceeds
the
Shares Trust,
of Boston,
an
diversified investment company,
Century
*
Underwriting—To be filed by amendment.
Registration Statement No. 2-5211. Form
S-l.
company
gross
to
Underwriting—Harriman
a
"
the
visions
lowed
of
$110
at
airlines
in
This
done in several ways.
instance, the amending pro¬
stock
date.
investment
the
the
be
be reworded
company.
privately
preferred
preferred stock
Amendment
of
to
its
Registration Statement No. 2-5203. Form
S-l.
(8-19-43i.
v
000
and
of
of
shares
series due
1955, 4Va %, at 104, and $2,150,principal amount of general mortgage
bonds,
series due
1961, at 104 y2,
sold
company
Business—The
ap¬
avail¬
share
void.
ac¬
be
are
the
extraordinary majority.
could
For
bond
each
and
$1,000,000,
Address—30
exclusive of
proceeds,
and
extent
plant
of
Thie steamship company through
the sinking fund provision is retiring 2,100
ing
of
share
preferred stock.
advanced
sale,
charge
the «ale
each
en¬
price
minimize
an
company.
been
in
are
the
the steamship
to
warrants
business, the company also engages in the
merchandising of gas appliances.
It has
engaged
for
shares
10,000
has
promotion
preferred
company
shares at
acquire,
may
company
open-end
the
5/9
company
steamship
lina.
to
5
the
At
of preferred is to be paid for by cancelling
$100 of the indebtedness owed by the air¬
palities in Georgia and two in South Caro¬
Incidental
steamship
share
per
company
1940
subsidiary of
Co., filed a
a
warrants
Purpose—Upon the exercise of any war¬
the airlines company is required to
surrender
to
the
steamship company all
shares of preferred stock of the steamship
with
Gas
the
to
of
rants
lines
CO.
Co.,
Electric
shares
the purchase price.
receive
steamship
The
SUNDAY, SEPT. 19
attached
the
the prospectus holders of
stock
of
of
manufacturer
products,
shares
stockholders
the
is
Calif.
stock
payment of
date of
titled
per
Francisco,
Business—Company
of
200,000 shares
share.
$10
par
Address—San
in
registra¬
a
of
company
said in
make effective the .requirement of
airlines
of
address
who
•
the
sort
can
name
,
to
the
not
seven
HERBERT ». SEIBERT & CO.
at
on
Incorporated
25
SPRUCE
STREET
NEW YORK 7, N. Y.
local in¬
invited
to
Telephone—BEekman 3-1767
Firm Trading Markets
|
'
Bonds
■
•// Shares
.
.
.
Chicago, Rock Island & Pacific
'
A $4
stock with growing distribution
common
Majestic Radio & Television Corp.
M. S. WlEN & Co.
(before taxes) $159,009
1943
Members N.
New York 4, N. Y.
Trading market and further information on request
N.
Incorporated
Members
Sept. 10 by Edward E. Chase,
President of the New England Council, at a meeting with a group
of New England Senators and Representatives in Boston.
of the Maine Securities Co.,
Me., called for action^
made good by stressing the obli¬
along the following lines:
than by
"A foreign policy frankly based gation to work, rather
providing
the
population with
upon realism and national inter¬
est,
implemented
by
adequate spending money.
''Legislation fixing the maxi¬
force
committed
to
maintain
mum
amount of currency to be
peace, insti¬
Portland,
tuted and rati
fied by
¬
consti¬
tutional
pro¬
cedure,
for
upon
support
the
general
approval of
the enlight¬
meeting, with the approval of the
Council's
Executive
Committee,
a
to
of a
program
said
"is
designed
over
the
requisite
outline
general
he
which;
develop
period of time a financial pol¬
suited to New England."
In
lence
of
the part, Mr. Chase said:
"Development of such a policy
ignorant.
"A defini¬ will require continuity in consi¬
by discussion in full
tion
of
the deration,
functions
and meetings and by special research
studies by selected groups.
The
fields of free
complete si¬
enterprise, and
of
and
Chase
E.
Edward
the
scope
purpose
regulation; a restriction upon the
expansion of Government into the
of
field
without
business
icy
presentation today is in the nature
of
an
introductory
exploratory
conversation.
business
of
clear
showing of necessity and without
start
from
the
introduction, I venture to state
such
assumption.
preliminary
a
express
tion
land
Eng¬
We want to maintain in New
legal authority; a declara¬
of intention regarding
the
responsibility of industry for post¬
war
re-employment, and an indi¬
cation of the measure of Govern¬
ment
of post-war
production;
support
and
struction
as¬
sumption that we know what we
want for New England.
By way
of
a
based
sound and stable economy
primarily upon a strong in¬
organization, diversified
products and adapted in unit
to the community of loca¬
dustrial
to
as
con¬
sizes
with
tion.
legislation designed to make pos¬
sible the accomplishment by the
business
organism of the tasks as¬
signed.
"A thorough overhauling of the
system of Federal taxation,
to
simplify procedure and computa¬
tion, and promote the established
assumed
this
"Since
aim
re¬
risks, free enterprise
risk-taking
are
incidental
the taking of
general assumption within which
we must work, and which afford
approach to the regional prob¬
policy for free enterprise by sub¬
an
stituting incentives for handicaps,
using the elimination of waste
lem.
motion and
assumption of our objective, we
must proceed to find out what we
the
cile
fication
complexities to
beneficiaries
to
recon¬
simpli¬
tax
increased
of
collec¬
tions.
"A
declaration
of
the
right
of
do, collectively and indi¬
vidually, in order to get what we
want.
We must-try to bring ac¬
must
tion into time with
must discard all Santa Claus
the
a
opportunity, and stimulating
production to a level where
guarantee
of
security
can
be
ries
based
aspiration. We
expectation
upon
assistance from outside.
view money
only
which
can
men
they want—as
theo¬
of
We must
implement
get what
servant and not
as an
use
a
to
Explosives
Canadian
Bought
—
Sold
—
Quoted
Securities..
Our
Reporter's
It's
of the 2s in the 10-year range. . . . You can't get
away from it—this is a perfect maturity and apparently a satis¬
factory interest rate for thousands of institutions and major in¬
vestors.
Which means they'll go in and buy 2s due in 10
.
at
years
able
100.
at
in 10 years are avail¬
1
-
.
...
.
borrowing.
is.
.
.
.
.
.
But no.
.
.
The logic isn't there.
.
.
.
.
^Consolidated Dearborn Com.
Great Lakes S. S. Common I
The advance
.
Oneida Ltd., Com. & Pfd.
.
2% loan will total up to $8,000,000,000 or maybe even $10,000,000,000. . . ., As compared with a high
mark as of today of $4,939,000,000 for the 2s of September, 1952/50.
Incidentally, it may be the new
Rochester Transit Common
Blaii F.
Corporation comments on the possible size of
drive and estimates $3,000,000,000 as a
The First Boston
available
*Circular
INSIDE THE MARKET
Member
figure and adds "the total offerings to be made.to com¬
mercial banks would not be more than $3,500,000,000 to $4,500,000,000,
this total to be divided between a 7/a% certificate and a 2% bond."
Which coincides exactly with the forecast here a fortnight ago.
First Boston says too that the above conclusion is based on the
Whitehall 3-OS50
.
.
substantial sum."
'
"There
.
exceeded
'
Purchases by savings banks, insurance companies and corpora¬
tions other than commercial banks are expected to beat April return.
$11,000,000,000 may be minimum anticipated from these sources
as against $10,200,000,000 in April. . . .
Savings banks in New York State alone are in for $600,000,000.
Banks of this type may have 50% of their deposits in
Governments by the end of this drive. . . .
by a
.
Stock
Exchange
Tele. NY
1-2178
New York
Syracuse,
Pittsburgh
Harrisburg,
Miami
...
'
.
,
Beach
W. A. Schuherlh Is
Willi
.
CHICAGO, ILL.
with Slayton &
depositors draw out funds to purchase war
be eased as
bonds.
.
.
was
been preparing its own funds for this drive by
selling Governments out of their portfolios during recent months,
freezing profits thereby and getting cash ready for new buying.
For instance, net sales by Treasury totaled $67,75.7,000 in July and
Treasury has
.
'
-
.
.
&
We must study
master.
forces,
But there are other
reasons which arise
from condi¬
tions which lie within the range
tle, seeking how to inject a new
organized influence so as
of
force of
to
produce a new
force
which
want.
•
aims
at
what
we
attention upon
great inconsistency between
what is being said about free en¬
the
a
number of
member of
Chicago Stock Exchange, he
a partner in W. A. Schuberth
Co.
a
/:•'
-
(Special
part.
„
to The Financial Chronicle)
SEATTLE, WASH.
Sanders
has
Sidney J.
—
associated
become
Foster ' &
regional influence. If we in with
Marshall,
1411
New England could only attain to Fourth Avenue Building, members
a clear understanding of the diffi¬
of the New York Stock Exchange.
a
culty, we would gain a great ad¬
Mr. Sanders was
while per¬
for the na¬
vantage for ourselves
:r
must focus
"We
component of
sible in
Co. for
In the past,
Foster And Marshall
regulation is respon¬
islation and
economic,
some
of
which we can control and some
ot which we can steer only a lit¬
and
social
&
Company, Inc. Mr.
been with Joseph
Sidney Sanders Joins
'
•
Dixon
F.
years.
the
.
has
Schuberth
position of Federal Reserve member banks to
William A.
—
has become associated
Schuberth
.
reserves
Slaylon Co., Inc.
(Special to The Financial Chronicle)
.
Excess
a
request
.
assumption that the drive will raise only $15,000,000,000. . .
are some indications that the $15,000,000,000
goal may be
.
on
Claybaugh & Co.
Philadelphia
the bank deal to follow this
forming
tion.
"In
a
...
service
j■'
order
to
maintain
stable
previously Man¬
of the Trading Department of
the Seattle office of Conrad, Bruce
ager
;
'
a
everywhere
r-1 o CO CO
Reporter on Governments.. .,..1103
;
& Co., with which he had been
connected for a number of years.
inconsistency
luctance
we
to
encounter
take
risks.
.
a re¬
Every¬
where we find a strong belief in
private
ownership,
and every¬
where we see a scarcity of persons
Real Estate Securities
....1092
Markets—Walter Whyte
to
become
willing
when
terprise in New England, we must
solve two problems.
One is the
problem
ownership of estab¬
industries.
lished
tasks
of
which
"Who are
future?
These
are
owners
the
It is true that Federal
leg¬
Tin Plate Co.
1st Mortgage
gations or sources of
6s
Common Stock
Advocates of free enter¬
should he able to answer
that question.
In order to show
whether willing risk-takers are
prise
The demand for plenty, I have addressed this ques¬
security is not confined to the dis¬ tion, adapted to the special in¬
inherited, by any means.
terest, to representatives of finan¬
"There is a disposition to blame
cial institutions and other aggre¬
the Government for this condi¬
tion.
Empire Sheet &
demand risk-takers.
the risk-takers of the
risk is apparent.
Tomorrow's
Valley Ry
4^-41
.
....1103
Report.
3ecu:ities Salesman's Comer...
Des Moines &
*Utica & Mohawk
,
there are technical factors involved and commercial
banks are prime buyers and we wouldn t expect institutions to sell
outstanding 2s in order to get in on neW ones. . . . But the strength
in this issue is unusual.
This observer, for one, would have been
content to see the 2s slip off a bit and probably would have char¬
acterized this movement as entirely logical in the face of a huge
Surely,
....1095
Members New York Stock Exchange
Boll Tflotypo BTT 1-61
*Ft. Dodge,
Southern Ry.4/91 and Common
.
.
premium even while more 2s due
a
Public Utility Securities......... ,...1101
Broadway N. Y. BOwling Green 9-7027
for this action tells us
really worth considerable study
the popularity
Railroad Securities.............. ....1089
71
5
WAR BONDS
BUY
vestors/pushing them .up from day to day. . . . And the.1951/49
similarly around the 101 level. . . .
problem of promotion of new en¬
terprises, and the other is the
Municipal News and Notes...... ....1103
Our
HAY, FALES & CO.
with in¬
is not peculiar to
England.
Everywhere we
find
conviction that risk-taking
is essential to free enterprise, and
....1105
Security Flotations. 1107
Investment Trusts
Security Dealers Ass'n
Y.
Street, New York
maturities of 2s are acting
New
Calendar of New
N.
Pine
30
Tel. WHitehall 4-7970 Tele. NY 1-2218
industrial economy under free en¬
Page
Bank and Insurance Stocks
Equipt.
L. D. SHERMAN & CO.
Members
And the
terprise, and what is being done
by owners of the capital which is
essential to free enterprise. This
INDEX
Triumph
General Aviation
On "Governments"
(Continued from page 1103)
$145,768,000 in June.
ditioned by the
the
Copper Canyon Mining
"Starting then from the States'
individual security expressly con¬
obligation to work
to the extent of capacity, fixing
the
responsibility for providing
1-576
york
m
Air Communications
Teletype
% point premium and institutions are in buying those. . . .
2s of 1952/50 are up to the Vz and % point premium mark
.
quires the preservation of a sys¬
tem of free enterprise, and since
the essence of free enterprise is
and
Tybor Stores
minimum
must
"We
new
5
people from coast to coast are being pushed into buying billions. . . .
at the same time, the outstanding 2s of 1955/51 hold up at a
currency."
Chase also presented to the
Mr.
6015
Electrol
■
.
Y O R K
And
bring back into circulation the
the
and
ened
.
hoarded
de¬
pending
.
outstanding and drastic measures
to
''
'
.■
Bell
telephone
Enterprise
Our Reporter
constructive leadership was outlined on
Chase, who is also President
1-1297:-
Great Amer. Industries
Prompt Congressional action on a program designed to restore
and unity, and to stimulate intelligent planning and
Mr.
N E W.
STREET,
2-3600
REctob
.
Association
Dealers
Security
philadelphia
telephone
For Financial Policy Suited To
New England
York
New
NASSAU
4 5
confidence
.
HAnover 2-8780
Y.
Kobbe, Gearhart & Company
England Ooisiisil Offers Program
Congress To Restore Confidence, Unify
Chase Of flew
Offers Program
Dealers Ass'n
Y. Security
25 Broad St.. N.Y.
Teletype
To
Preferred
j September, 1943, about 1,800
Earnings June,
SPECIALISTS
50 Broad Street
&
Common
about 700
1943,
( Increase (4 months) 1,100
J
.
May,
''
FOREIGN SECURITIES
'
♦
Stockholders—
u
INC.
HARL MARKS & no.
"
Chicago & North Western
Old
I
«
"
Chicago, Milw. & St. Paul
Missouri Pacific
?||
LATIN AMERICAN
Pacific
Western
For Dealers
Teletype—N. Y. 1-971
IIAnover 2-0050
Thursday, September 16, 1943
CHRONICLE
THE COMMERCIAL & FINANCIAL
1108
Memorandum in preparation,
on
request
available
Friday.
Hill, Thompson & Co., inc.
Markets and
120
Situations for Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
capital."
I
@FedFRASER