Full text of Commercial and Financial Chronicle : September 17, 1942, Vol. 156, No. 4108, Section 1

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SEP
Edition

.Volume 156

j 9

THURSDAY

Number 4108

New

In 2 Sections

York, N. Y., Thursday, September 17, 1942

Section 1

-

Price 60 Cents

Copy

a

Schram Declares

People Of The U. S. Appreciate Senate Committee Completes Tax Bill—
Exchange As Part Of Economic System
: Adopt "Victory Tax"—Cut
Corporation Rates

OUR

REPORTER'S

Even

in these times, when the Nation is
preoccupied with the
the people of the United States have a deep interest in the Stock
Exchange and a very genuine appreciation of its usefulness as an es¬

The Senate Finance Committee on
Sept. 14 virtually completed
consideration of the largest tax bill in the Nation's
history and sent

war,

REPORT

the

measure to the legislative
drafting experts preparatory to report¬
ing it to the Senate floor for debate. The Committee is scheduled to

sential part of

f

the American economic system, Emil Schram, Presi¬
dent of the New York Stock
Exchange, stated at the meeting of the
Governors of the Association of Stock
Exchange firms.

Action *
Board

of' .Federal

Governors

further

reduction

quirements

i

in

ordering

in

against

Reserve

reserve

demand

a

"The

change,"

re-

"is

de¬

real

posits by banks in the New York

of

the

banks

its

to

fi¬

war

The reduction, from 24 to 22%,
these two areas, marks the
cut

ordered

in

about

a

the

time

<

to

a

of special pride
of the great in¬

source

that most

us

the

Atlantic

on

As

ada to Mexico

listed companies

are

substantially

the

—and

even

other

into

these

Act

passed

some

Bulletin

that

the

need

to

at

least

just released,
Treasury
will have

borrow

have

year.

;

month

a

,

Since, by far,

major portion
$36,000,000,000
ultimately go to the banks

this

must

of

average

whose

a

indicated

free

have

reserves

been

dwindling rapidly, it is apparent
that the adjustments which have
been made must prove only the

forerunner of
down of

a

reserve

further

marking
requirements.,

As things now stand the Board

,

is in

not

position to order another

a

reduction of 2 percentage points
in requirements for central re¬
serve

New

city banks in Chicago and

York, which would

bring

the .rate abreast

of the 20% fig¬
prevailing in city banks

ure now

outside

From

that

point

'it would

on,

adjustments

that

appear

two areas.

mose

would

necessarily have to include all the
banks in the system.

only

most

of

must

the

"

•'

'I-.-

constructive

confess

sup¬

that,

contrary
which 31 once

impression

•

*

.

sale

of

securities

for

war.

the

nine

vious

months

since

during the

pre¬

period
of
preparedness,
for itself—and most elo¬

speaks

quently.

This

ine appreciation of its usefulness
as
an
essential part of our eco¬
nomic system. Even in these grim

times, when everyone is preoccu¬
pied
with
the
war,
we
have

American

and

finance

would be

per¬

industry,

during this

of such magni¬

one

tude, such efficiency and such

pa¬

dermine it,

would be rejected by
Nation gratefully aware of the

a

productive

miracles

been achieved.

has

that

have

>

This performance

completely

the

confounded

found, wherever we have gone, a
(which is most flat¬
tering to us) in the functions,
services and problems of our fi¬

inspiring ex¬
hibition. recently in the applica¬

nancial

tion

keen interest

We regard

markets.

this,
possible evi¬
dence of the widespread recogni¬
tion of the necessity of free mar¬
of course, as the best

of the need to

health

to

and

preserve

freedom.

We

been

gratified, particularly,
discover
that
people every¬

where

are

the

of

aware

part

ate

enemies

of

our

system.

"We have had

«

of

niques.

production
tech¬
We have seen our enter¬
mass

prise system convert itself, volun¬
tarily, cheerfully and speedily to
war
requirements. This conver¬
sion, mind you, was accomplished
without Government dictation, al¬

though all units of our system
willingly become the servant

have

of the Government in this

ably play in the eventual transi-

(Continued

on

Treasury col¬
about $26,000,000,000 a

emer-

978)

page

of

the

tax

yield about $9,000,000,000 in

new

but

revenue

this

nearly $2,000,000,000

total

would, be

returned

to individuals and

corporations in
credits. As
passed by the House in July the
the

form

tax

of post-war

bill

estimated

was

to

yield

$6,271,000,000, whereas the Treas¬
ury

had called for

$8,700,000,000

in

Under

enue.

Federal

minimum of

a

additional

present

rev¬

tax

laws

collections

revenue

amount to about

bill

and

measure

of

was

wage

earners.

At

the end of the year credits of 25%
of the tax would be available for

in

debt

and

N

(Series E and F
bonds

in

anteed

Sanderson & Porter

"victory
Sept. 8 and reaffirmed its
action on Sept. 9 (referred to in
our

issue of Sept. 10, page 890).

is reported that if the

becomes

It

"victory tax"

law

the

total

number of persons paying taxes to
the Federal Government will be

increased from the 29,000s,000 esti-,
mated

under

taken
bill
tax

to

action

43,000,000.

included
as

an

5%

a

advance

the

world

San Francisco.

INVESTMENT

64 Wall
Troy

previously,
The House

withholding
collection

Stock

Exchange

New

York

Curb

Exchange

Cotton

Exchange

New

Exchange,
Board

Orleans
And

of

Cotton

other

PAID

RESERVE

Buffalo

7

the

it had

previously approved.
.,
'
The following regarding some
changes which the Senate Com¬
mittee bill would make in
present
laws was reported in Asso¬

tax

ciated

Press

Washington

advices

Sept. 14:
Individuals

t

1. Present

normal

income

tax

rate increased from 4 to

surtaxes

77%
to

now

2.

ranging

increased

82%.

to

from

range

13

•

Personal

come

6%, with
from 6 to

exemptions for in¬

tax cut from

$1,500 to $1,200

for married couples, from
$750 to

$500 for single persons and credits
for dependents cut from
$400 to
$300.
3. New

income

in

penses

come,

credit

tax

allowed

for

all

with

against

medical

ex¬

of 5%

excess

of net in¬
maximum of $2,500,

a

(Continued

on

page

978)

on

INDEX
■

;

-

Bank

and

Bond

Selector

1

•

■,

Page

Insurance

Stocks........
(The)................

Calendar of New

974
971

Security Flotations 982

Investment Trusts

973

Municipal News and Notes.......... 976
Our Reporter on Governments...... 984
Our Reporter's Report,.,....,
969
Personnel Items

Railroad
Real

972

Securities

Estate

,

Securities.

,,

,...

Securities Salesman's Corner

Tomorrow's Market

Says
Uptown After 3.

—

Walter

973
972

975

Whyte
973
980

...

Last-minute action by the Sen¬
ate Committee

on

THE

Sept. 14 reduced

CHASE

BANK

SWITZERLAND




Light 6s

Cairo

CAPITAL^

service with Chase

r

;

£3,000,000

-

..i

.

.

Broaden your customer

correspondent

£3,000,000

Street, E.

31

in

principal

Towns

and

all

the

the

Milk Street

Boston

N. Y. Phone CAnal 6-2610

in

Boston

SUDAN

facilities

?

MAY & GANNON

C.

Phone—Hubbard

Member Federal

Deposit

Insurance

Corporation

8360

—n
NATIONAL BANK

in

of INDIA, LIMITED

a

wide range

of

Bankers

O ver*The - Countet

Kenya
Head

Branches

Kobbe, Gearhart & Co.
Members

N.

Y.

Security

Dealers

45 Nassau Street
Tel.

REctor 2-3600

Philadelphia

,

Office:

In

6015

Government

and

26,

C.

India,

Ceylon, Kenya

and

Burma,

Aden

and

conducts

and

Trusteeships
»

,

*

..

....

HART SMITH & CO.

.£4,000,000
.£2,000,000

every

exchange

and

RAILROAD STOCKS

Zanzibar

Capital,
Capital

Bank

GUARANTEED

Bishopagate,

London, E.

Fund....... .£2,200,000

banking

.

in

Uganda

Reserve
The

1-576

Enterprise

the

Colony

Paid-Up

New York

Teletype N. Y.

Telephone:

Ass'n

to

Subscribed

INCORPORATED

PITTSBURGH

Power &

Teletype BS 568-569

Securities

DETROIT

1

No.

Branches

EGYPT

Exchange

CHICAGO

Register

Inland

;

Trading Markets, always

Exchangee

Bldf.

OF THE CITY OF NEW YORK

Cairo

King William

Syracuse

Wilkes-Barre

4

GENEVA,

by

months

the combined corporation normal

LONDON AGENCY

,V
and

6

Inc.

NEW YORK

BOSTON

voted

13

Specialists in

Trade

Cotton Exchange

Office

FUND

Colony

N. Y.

the

1927

i
Actual

>

York

Chicago

months

"victory tax" pro¬
posal contemplates its elimination.

Bought—Sold—Quoted
FULLY

Williamsport

New

Commodity

Commercial

PHILADELPHIA

Albany

1856

H. Hentz & Co.

Head

.

SECURITIES

Pittsburgh

Members

guar¬

Street, New York

BOSTON

York

Sept. 14 also

Committee's

of EGYPT

against;. depreciation
prior to maturity);,

Established

?

New

on

tax

16%.

1944 income taxes and the Senate

NATIONAL BANK

the only

are

R. H. Johnson & Co.

52 WILLIAM STREET

'

normal

tenta¬

on

in value

ENGINEERSand CONSTRUCTORS

NEW YORK

STATES

WAR SAVINGS BONDS

FINANCING and VALUATIONS

i

15

tively voted for the 5%

tax"

the

the surtax at

NATIONAL
BUY UNITED

In connection with

Established

the

House and

,

Committee

and

REPORTS

MANAGEMENT PROBLEMS

Chicago

of

insurance deductions

Senate

from the

the holding
period for
long and short term capital gains
and losses to six
months/instead

rebates by the Treasury.
The

fixed

group

24%

made in the form of post-war

or

to 40%

reduced

These could be taken up

persons.

rate

The Committee

and 40%, plus 2%
dependent, to married

also
AND

SURVEYS

The
at

persons

each

technical

some

.

surtax

revenue-

the

House-ap¬
provided by
the so-called "victory tax."
This
levy, superimposed on the regular
income tax, would collect 5% of
earnings above $624 a year, the
assessment being taken out of the

for

out

previously-approved rate of 45%.

raising between the Senate Com¬

checks

work

—

and

of

$17,000,000,000.

The chief difference in

mittee's

to

;

will

of

21)

stands it is de-<®>—

bill

finally

an

(Sept.

'

increase

version

single

of

business

Monday

now

It is estimated that the Sen¬

year.

strengthened daily—that the

triotic devotion, that any, attempt
to discredit our system or to un¬

a very genu¬

signed to

pay

formance

next

As the bill

record, I believe,
is without parallel.
I have said
repeatedly—and my conviction is

Stock

Fbtfchangeand

•

proved

war

which these markets must inevit¬

AND CONSTRUCTION

.'

the

ways,

had, people throughout the United
States have a deep interest in the

have
-8*-

and

the

people who
port the Exchange.
"I

in

Pearl Harbor and

view
of

of

"The record of American indus¬

own

of

*

in

financing of the

try,
Emil Schram

point

firms

in past wars,
assistance in many

the

criticism

of

Exchange
lending val¬

problems

our

effort,

war

Stock

particularly,

their

QUICK ACTION ON DESIGN

York

New

Government's

kets and

(Continued on page 981)

the

hand

our

contributing

member

the

first

of

manufacture

but,

community,
but, more importantly, a means of
of1 obtaining
meeting and
the

to

the

all

in supplying necessary
And may I add that the
and

are, as

with members
of

to

members

uable

fact,

discussing

our

at

a

method

nient

in
or

services.

conve¬

of

matter

a'

goods

found

are

the New Yorjk Stock Exchange.

either

We

regional
meetings to be

the remainder of the fiscal

over

of

an

$4,000,000,000

which

and from Can¬

the

Reserve

to

again

amendments.

lections to

1

economy.

"It is

a

Pa-

countries.

Reserve

i

is

one,

month under the powers accorded
the Board by an amendment to

Coincident with the dropping

-

very

peace¬

producing the materials for the
prosecution of the war are listed

gearing the posi-

of the rate of required reserves,
it is pointed out in the Federal

*'

a

organization

a

from

is

weeks ago.

:

Its

sense.

war-time to

a

fific Ocean

second

-

national institution in

a

tion from

Government

.

.

Schram,

—

dustrial ', enterprises

for

t

Mr.

Ex-<s>—

-

extending

nancing needs.

}

Stock

Chicago
districts
indicates
clearly the manner in which the

tion

■

York

declared

far-flung

and

.

New

meet
:

description

Members

New

of

52 WILLIAM ST.,

business

4

^

;

Dealers Assn.

N. Y.

Bell Teletype NY

HAnover 2-0980

•

GUARANTEED RAILROAD STOCKS-BONDS
—

—w

1-395
BO.

Executorships

also, undertaken

York Security

New
>

.

York

Montreal

Toronto

Gr.

9-6400

Telephone

NEW YORK

52

Broadway

N.Y.

1-1063

Teletype

THE COMMERCIAL & FINANCIAL CHRONICLE

970

.Trading Markets in:

Louis Stoner Enters

-

Alabama Mills

Aeronca Aircraft
American Barge

Thursday, September 17, 1942

G O O D BODY

Line

jjy;%Army As Captain

C O;

8c

Liberty Aircraft

york

other

and

Missouri Pacific
5%s, Serial

115

chicago "jboar'o

exchange

curb

A.

8c

„

op trade-

of

Debardelaben 4s,

Co., Inc., who has been making
headquarters in Chicago for

1957

his

exchanges

principal

Birmingham El. 7%Pfd.

Midwestern
Hugh W: Long

Stoner,

Vice-President

new york cotton exchange

new york stock exchange

new

Louis

:

MEMBERS

BROADWAY

105 WEST ADAMS ST.

YORK

CHICAGO

Steiner, Rouse & Co.

1

:<*

NEW

Established

40

York

New

Members

1920

'<•

you

to

be

forces

consider

to

while

business

your

Arrangements
basis

factory

by

shall

taking

over

on

you

:

OF

Philadelphia

Penna. Co. for Ins.
Teletype

15, 1942

SEPTEMBER

1-672

NY

Louis

also

should

We

be

members, for other
of

relieved

""be

withdraw
tinue

Assets

Firms

need

not

where

we

ditional

necessarily

have

branches.

of

or

be

Regarding Bid and Ashed Disclosure Rule

-

in

date

Boston

Mr. R. H. Johnson

1

rK

MV<Jelphia
Pittsburgh

Buffalo

Syracuse

Wilkes-Barre

,

likely

very

of

existence

very

.Fit

*

;

ously

71

interprets the rule

jurisdiction

'

Dealers

Teletype,

N.

Assn.

Additional

comments

was

elected

a

1933, will continue in an exec¬
capacity on the Prudential
Company of America

utive

Insurance

in charge
activities.

of

the
;

Schoellkopf Dies

Jacob F.

ident

of

Pomeroy,

Schoellkopf, Sr., Pres¬

Schoellkopf, Hutton &
Inc., 70 Niagara St.,

Buffalo, N. Y., died at his home
of 84. Mr. Schoellkopf,
who was active in the power and
at the age

dye industries, organized the in¬
vestment

Hutton

firm

of

Schoellkopf,
& Pomeroy in 1919.

Stock

York

would try to

Co., Louisville, Ky., Na¬
in

National

letter

sent

the

to

Association*

Traders

Security
as

a

follows:

s

X-15C1-10—(PROPOSED)

Exchange.

seem

We

all

by the "Old Guard

control the policy of the

to

hoped

the

new

management

by working with all other investment dealers, large

Cfts.

problems could

found

be
or

which

actions which have

come

whole

certainly anybody

feels any regard for the

well-being of the country would be in favor of.

It

seems

1

Y.

Teletype

1-609




a

as

Lieutenant in the 332nd Infan¬

try.

'I

•;

-

.

•

r.:

'

:

posed

amendments

ciation's

the

to

constitution.

posed to have the business

tt*e group,

to

of

instead of June to
incoming adminis¬
begin in the fall;

that

so

trations

pro¬

year

from September to

run

September,
June,

Asso¬

is

It

might

permit members in the armed

forces

continue

to

the

on

rolls

without payment of dues; and to
extend membership to those han¬

dling commission business in com¬
\:f'i: '

modities.
*

Allyn C. Donaldson, Vice-Presi¬

dent of the Association, has ten¬
war
he was, for a
dered his resignation and has en¬
cost accountant with tered
the State Department. Louis
Follansbee Brothers, steel manu+
C. Reynolds has resigned to be¬
facturers. In 1920 he joined the

After

short

the

time,

a

two

years

later,
Stock

was

em-r

Exchange
Livingston & Co. as a
statistician,; becoming a partner in
1927.
He remained a partner oi
Livingston 8c Co. until Nov. 1,
1934, when that firm merged with
Abbott, Proctor & Paine, then be4
coming a partner in the successor
firm.
For many
years
he was
actively interested in the New
York
Stock
Exchange Institute,
firm

the

by

of

the

now

New

Institute

York

of

hearing

a

their plan of attempting by indirection to control the business of

all

other

investment

run

out

as

many

non-members as

This would be rather humorous if it wasn't for the serious¬

possible.

of the

ness

dealers and

war

situation and the necessity for maintaining a strong

national economy.
I wrote

Chairman Purcell the above facts.

His reply

is

as

fol¬

lows:

"I wish to

acknowledge receipt of your letter pertaining to pro¬
posed Rule X-15CI-10 which has been sent to various representatives
of the securities

industry by the Trading and Exchange Division for

I also wish to thank
assure

you

you

by

The

to the
is

only

was

purpose

not the result of sugges¬

of the rule

is

to

to current market prices which will
an

purpose

make

enable

informed and intelligent judgment

desirability of purchasing and selling securities, information
customarily required by informed investors before they

is not mechanically perfect, but it is hoped that the comments

which have been solicited will contain
suggestions which
the proposed rule or will afford gome other

will improve

satisfactory solution to

the problem."

It

may

only be
)

a

coincidence that the identical plans

-(Continued

on

of

the

election

Presi¬

as

Association

of Stock

associated

come

with

the

War

Production Board; he is succeeded
on
the executive
committee
by

Ralph O. Rotnem, Harris, Upham
& Co.

\

■

„

.

^

Eastman, Dillon Open
Branch In Hartford
HARTFORD* CONN.—Eastman*
Dillon & Co., members of the New
Y o r k
Stock
Exchange,
have
opened a new branch office, ip

page

981)1

•

• -

are

pre-

»'V

-

The

Pearl Street.

at 75

branch will be under the di¬

new

cently

the

with

local

office

of

Riter & Co. and in the past man¬

of

ager

the New London branch

of Goodbody & Co.

Exchange Firms occurred at the
"Economic Almanac"
Autumn meeting of the Associa¬
in St. Paul, Minn.
The Si
The National Industrial, Con¬
Paul
Association
of
Commerce ference
Board, recently announced
later gave a dinner at the St. Paul
the publication of its "Economic
Hotel, in honor of the Governors Almanac for
1942-43," a hand¬
of the Association, at which Mr.
book of useful facts about busi¬
Clark was present.
ness, labor and government in the
tion

,

United States and other

New

Leefe

has

Vice-President

elected

Ward

C.

of

been
R.

& .Co.,

Inc.* 63 Wall
City.
Mr. Leefe

York

A.

St.,
was

in
Gison,
partner
Leefe & Co. and was recently with

formerly
B.

J.

a

Van

Ingen & Co. and Con¬

formation about wartime agencies
and
and

regulations, contract awards,
finance. An enlarged in¬

war

dex gives reference to the specific
fact desired.
The Board's vast ac¬
cumulation

of

research

the nation's economic

strength
ized

on

and

and

A.

Ward, President of the
firm, has received a commission
as

Captain

in

the U.

S.

A.

and

activity

nomic Almanac."

sists

$4.50

of

536

(cloth-bound).
addressed

to

the

and

(paper-bound)

intelligence officer and

organ¬

are

in

"Eco¬

The book

pages

will shortly take up his duties as

post ad¬

quarter century

a

condensed

tent, Hano & Co.
R.

The

panded to provide time-saving in¬

Of R, A. Ward & Go.
Charles

areas.

edition has been greatly ex¬

new

G. G. Leefe Is V.-P,

for the comments that you have

proposal by that Division
as

dent

that they will be given serious consideration.

member firms.

Clark's

Mr.

plight of the

Exchange, have some-way gotten the SEG to ask for

was a mem¬

by recent

"It may be that the method selected to
accomplish the foregoing

j

During

Wisconsin.

of

World War I Mr. Clark served

which proposed the election of the
Association's present Governors.

on

which

WIfitehall 4-4970
NY

versity

ber of the Nominating Committee

enter into transactions of this nature.

59 BINE ST., N,

Ohio, 48 years ago, and was
in the public schools of
Steubenville, at Washington and
Jefferson College and at the Uni¬
educated

financial

to the attention of the small dealers that the

Wall Street element, which is responsible for the present

as

G.A.Saxton&Co.,Inc.

ville-

busi¬

meeting discussed three pro¬

ness

rection of Benjamin R. Field, re¬

5s, 1934

4s, 1949 Cfts.

born in Steuben-

Customers

quarterly

institution. Mr. Clark

Exchange

all classes of investors to make

Minneapolis & St. Louis

was

their

at

Stock

the

With

non-members.

or

who is in the investment business

available information

Minneapolis & St Louis

-

Mr. Clark

of

Association

Brokers

Hartford

tions

1938

Revise Constitution
The

industry cooperating together, some of us believed a solution to the

and that this

Iowa Central

*

257

Finance,
and
for
some
years
taught securities analysis in that

members

"I should add, I believe, that to my knowledge the
proposed rule
originated in the Trading and Exchange Division of this Commission

Iowa Central

5s,

RULE

whether

small,

made and to

1951

Bond

Kentucky,

improve the position of the Exchange and the business

of the Exchange

comment.

4s,

the

from

An identical plan was prepared two years ago

Stock

Jacob

Bankers

the

Group of floor traders" who still

and

and

of

Council

Re:

ing of the board of directors. Mr.
Whitman, who joined the agency

war

of

Member

2-2280

HAnover

PH

*,

,

York Phons

New

>

1477

Teletype

Exchange Firms Ass'n

ployed

30V

Chicago, III., discussed the proposed rule,

New

account,
agency's

Committee

Executive

vice-president
of
Benton
&
Bowles, Inc., 444 Madison. Avenue,
New York City, at a recent meet¬

in

Graham

Thomas

Philadelphia

Street,

Chestnut

Phone

locust

Customers Brokers To

J. Clark Named Pres.

and,
NO.

DEALER

1421

Phila.

Edgewood!..Ar¬

the

at

staff of the "Wall Street Journal''

follow:

dealers

from

municipal transactions
power by the SEC.

assumption of

:

1-55480

Of Benton & Bowles
Whitman

firms in New York

Two of the leading municipal law

New York, stating that the rule as applied to

Whitman Named V.-P.
R.

attempt by the SEC to extend its

as an

is invalid and represents an illegal

tional

A.

initiated.

City have already furnished opinions to the Municipal Bond Club of

■

Y.

stationed

type of legislation, laudable

the tax-exempt field, despite the fact that Congress

over

HAnover 2-4660
System

a

specifically exempted the municipal business from regulation by the

Broadwiy, New Yo k, N. Y.

Bell

It is

before.

the way, is prepared to vigor¬
the application of the proposed rule to their business.

oppose

Ibis group

6's, '52

Members

Security

ever

The municipal bond fraternity, by

J.F.Reilly&Co.
York

H. N. NASH & CO.

ac¬

itself.

of investors in whose behalf it was presumably

Commission.

New

industry

the

and calculated

Wickwire Spencer She!

■

to

The additional time, more¬

objectives, but nevertheless highly impractical and unrealistic
to cause great harm and injury to the rank and file

in its

Corp.

Indiana Limestone

duration

the

a

senal, Maryland.

be profitably employed by the Commission in

can

nation's welfare than

Struthers Wells

for

2039, Pfd. & Common

3-6s

securities

the

John L. Clark* a partner in the
Certainly it should be firm of
Abbott, Proctor & Paine;
apparent to the Commission that the proposed rule—at least as pres¬
has been elected President of the
ently drafted—is clearly unwarranted and unnecessary and definitely
Association
of
Stock
Exchange
iot in the public interest.
Furthermore, it cannot do other thap
Firms to succeed James F. Burns,
seriously obstruct the normal functions of the over-the-counter
Jr., (Who is shortly to enter the
markets and pave the way for the destruction of an industry whose
Army : Specialist
Corps
as
a
continued profitable existence is perhaps now more vital to the
Captain. '
■" f:i
v./v;*
'■ ;v
the

Williamsport

New York

new

from

Captaincy in the Army.
Captain Stoner .expects to be

cept

carefully analyzing the proposal bo relation to its obvious dangers to

1927

64 Wall Street

Stoner

disclosure rule,. X-15C1-10.

asked

and

the

from

•equest of representatives of the industry.

R. H. Johnson & Co.
Albany

views

The original deadline was Aug.

over,

Vroy-

bid

proposed

its

of

12 and was then extended to Sept. 15.
The latest extension of time was granted by the Commission at the

ad¬

Inquiries held in

Established

submission

the

for

regarding

offices,

opening

extended to Oct. 15
securities industry

The Securities «nd Exchange Commission has
the

confidence.
Write

absence

business

the

be purchased
good will, etc.

now

A.

has taken a leave

years,

Lives etc.

con¬

in

can

consider

would

to

active

for

cities
we

wish

yet

less

or

allowance

with

reasons,

several

where
wish to

on

Philadelphia National Bank
Phila. Transportation Co.

take

to

intact

responsibilities,

capital,

more

business.

as

glad

organizations

over

;

Stocks

Fidelity-Phila. Trust Co.
/ Girard Trust Co.

away.

are

NY 1-1557

■■

Bank

WITH

ASSOCIATED

1

•••••.

'

HART, SMITH & CO.

mutually satis¬

a

SUPERVISION

THE

FORMERLY

be made.

can

v BH 198

New York, N.Y.

:

„

HERBERT HIPKINS AND GERARD BURCHARD

we

personnel,

firm's

glad

A

DEPARTMENT

SECURITIES

CANADIAN

1-423

from entering
responsibility

hindered

are

armed
your

Birmingham, Ala.

Direct Wire

HA 2-2772

TELETYPE NY

Investment Dealers
our

Brown-Marx Bldg.

New Orleans, La.

25 Broad St.

UNDER

If

OF

OPENING

THE

ANNOUNCE

v

-

Maritime Bldg.

Security Dealers Ass'n

Exchange PL, N.Y.
BEIiII

Members New York Stock Exchange

BROS.

KATZ

con¬

sells

and

for

$5.00

Orders should be
the

Conference

jutant at the Quartermaster Depot

Board, 247 Park Ave.* New York

at Belle

City.

Mead, N. J.

"

;

/

..

..

,"v"

.Volume 156

-

Number 41 OS

THE COMMERCIAL &

FINANCIAL CHRONICLE

971

COMMERCIAL and

FINANCIAL CHRONICLE
U.

Reg.

Patent

S.

Office

William B. Dana Company
Publishers
25:

-

3-3341

We

•

Herbert D. Seibert,.

under the

Editor and Publisher

interested in

are

offerings of

AND COMPANY

One

1

Thursday,

Published

twice

day (general
with

PREFERRED STOCKS

[every Thurs¬
advertising issue)
on Monday]

v.

.

25 Broad

v

offices:

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

1942

by

William

'

>'

them

in

Exchange

r

.

J

We

25,.

ruary

Are

Subscriptions

in United States and
Possessions $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain,
Mexico
and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and
Africa, $31.00 per year.
Gerard
.'

advertise¬

and

to

Burchard

■

in

trade

L.

'•*

'•

i"

■

•

Canadian

real

BOND

&

HOME

LAWYERS

LAWYERS

GUAR.

INSURANCE

MORTGAGE

TITLE

&

52

WILLIAM STREET

New York

TITLE

TITLE

&

'

V

.

Montreal

...

Teletype NY 1-395

•7,.

-

AH

.

&

local

other

Hipkins

39

Members

New.

York

St, N. Y.

We

THE BOND SELECTOR

Bell

Teletype

CO.

WHitehall 4-6300
NY

lor redistribution

Exchange

with Hart Smith
Co., and prior to that was in the
trading departments; of Peter. P.
McDermott & Co., A. Iselin & Co.

Smith

in¬

years.

..

is

also

considerable

seven

and

years

Baker,., Kellogg
Burchard

Mr.,

&

:

Co.,

/with

was

for

Co.

&

Inc.
Hart

:

nearly

eight

.V.':;Y;-v

7Y Y;. !

Method of Security- Analysis" and

Goodbody & Co. are members of
all the principal Exchanges and

'.'Public Utility Break-up Values"

maintain.offices in 22 cities.

terest in the

to be given by
and

Owen Ely,

As

.

a

from

in "Appraisal

courses

Benjamin Graham
respectively.

result of inquiries received

Exchange member
firms relative to securing women
clerical workers, the Institute has

decided

establish

to

service

ployment,

in

free

a

:em¬

connection

with its

special brokerage train¬
ing courses for women.
The Fall' term begins Sept. 21.

;

.

■

Auchincloss Parker

Stock

To Admit Ctarkson
1

Frederick H. Clarkson, who has
been

partner

a

in

Winthrop,

Whitehouse & Co., will become a

partner in
Redpath,

general

Auchincloss,

&

Parker

members, of

•

the

New

York

Stock

Exchange
leading Exchanges, on
Oct. 1.
Upon the dissolution of
Winthrop, Whitehouse & Co. a

and other

of

number
in

his

firm

that

former

will '

associates
also

join

Auchincloss, Parker & Redpath.
Mr.
Clarkson. will make his
headquarters at the New York
office of Auchincloss, Parker &
Redpath, 52 W#1 Street/ Y
.7 •'.

ated

Louisville, Ky.

;

Security Analysts To Meet

of all Kentucky mu¬
nicipal issues reached an all-time
peak Sept. 1>„ 1942. The demand
is excellent, with, few offerings

I

average

available.

rhere

a

good

deal

of

activity in American Turf stock
the various Louisville Rails

and

way-

issues, in the last week.—
GrahamK The, Bankers

Thomas

New

York

Analysts,

for the

meeting
Mr.

been

has

The

curity

C.

Society of Se¬
Inc., will have

speaker at their? luncheon
on Wednesday,; Sept. 23,
S.
Davis, President of

Borg-Warner.

Erie Railroad.

Bond Co.

Bonner-Gregory Admits

fhe highest denomination stamp 1
George W. Linne has been ad¬
have in my collection is one fo** mitted to partnership in Bonner

marks issued by
Germany in the inflation period.
5,000,000,000

v

When I

see

that I stop and try

as?

standby

stations

steam

two

are

representing about

A

18,000- h.p.

plants

large

and

power

storage project was begun- in 1940
at

an,

initial

estimated

$3,000,000..
y*
/The
company's

of

cost

7;:Yy.'-."•
funded

debt

totals

$11,652,500 and consists of
$8,188,500 first mortgage 5s,. 1960,
$1,713,000 first mortgage 5s, 1964,
and $1,756,000 5% secured notes.
The first mortgage bonds are se¬
cured by a first lien on all the
company's freehold land, power
plants and power rights, trans¬
mission lines and distributing sys¬
tems, and are- further secured by
a
floating charge on all other
assets of the company.
At Dec.
31, 1941, gross property was car¬

ried-

the

on

balance

sheet

at

&

Gregory, 30 Pine Street, New
York City, members, of the New
York Stock Exchange. - Mr. Linne

Franchises

in

included

as

alternate

on

the floor

what it must have
been like for investors.—■£., L. of the. Exchange for Douglas G.
Bonner.
\
* ■
;
7.
.*
Wengren.
•

to.

imagine




,

j

,

,

t

$2,640,000,

aggregated

investments, not
property figure,
$2,362,000, of which
the

$1,531,000
represented
invest¬
ments,. mainly securities of sub¬
sidiary companies.
/ Y "
? Y
According to the indenture, in¬
on the 5s,
1960, is payable

terest

Canadian

at

currency

Royal Bank of Can¬
ada, in Canada;, in U. S. currency
at the Royal Bank of Canada in
New

York; or in sterling at the
of $4.86 to the pound in Lon¬

totaled

1941

increase of about 1%
available for

Income

fixed charges amounted to $1,022,000 after income taxes.
Total

interest

and

quirements

discount

bond

$653,000,

were

re¬

,

V2 to Yield 5.20%

First

Mortgage Bond of
utility with
interest

ating

1.56

times.

Broadway; N. Y.

Y.

'

!
!

expected that the Securities
Exchange Commission will

and

shortly promulgate a new rule re¬
quiring that all brokers and deal¬
ers doing business with the
publiq
file

financial statement, with the

a

•

a

year.

-

Canada

should

tend

maintain

to

mission

in

the

announcing

new

fair

earnings margins over inter¬ rule, which it is expected will be
est.
Approach of parity between applicable after Jan. 1, 1943, will
Canadian and U. S. funds after the adopt the new uniform financial

would, of course, be reflected
higher prices for the bonds,
while purchases at current levels
war

statement.

in

afford

attractive

an

income

re¬

<;'?:V;■ Y■.■ ]v'".;■ Yi■*

turn.

EARNINGS

RECORD

5

.

;

Boston Traders Name

•

State Of Officers

; "

;

-——(000s Omitted)—
Gross.
Revenues

1941—

Avail. For
Fxd. Chgs.

' Times

Fixed.

Charges Earned
$653
1.56

BOSTON, MASS.

inating

committee

—
The nom¬
of the Boston

$2,649

$1,022

1940.

2,338

1,041

1939—

2,174

1,165

656

1.78

submitted; to the members the fol¬

1938—

2,114

1,039

633

1.69

lowing

1937—

1,998

1,031

631

1.63

^

mm

:

'.Ti

..

Baas

1.55

672

i

;ri"7

,

Municipal Mgr.

slate

year,

President:

CINCINNATI, OHIO—Westhei&

of officers for the
which will be voted
upon at the annual meeting of the
Association to be held September
new

28th at the Boston Yacht Club.

For Westfeeiiner 6 Go.
mer

Securities Traders Association has

Co,, 326 Walnut St., mem¬

Eugene

that John

nounce

nicipal

1

Baas

has been

Department.

Bond

Mr.

R.

Hussey,

First Boston Corporation.

Vice-President:

Frederick

W.«

Rice, Jr., Goldman, Sachs & Co.

appointed manager of their Mu¬

,

sinking fund operates which
retires not less- than Vz % of the

once

the first
mortgage bonds are considered an up to the present time that finan¬
attractive long-term holding,
In¬ cial statements be filed directly
crease of capacity and continually
with it.
7Y'
;
Y
Y
It is also reported that the Com¬
growing demands for power in

currency.

A

least

The Commission has not required

Treasurer:

the

WH. 4-8980

Yearly Dealer Report

Baldwin & Co.

on

.

It is

bers of the New York Stock Ex¬

Interest

oper¬

charges

SEC Expected To Ask

change, and other Exchanges, an¬

don.

an

cBl +

Teletype N. Y. 1-142-

5s, 1964, is
explicitly stated to be in Canadian

rate

Rated

CHARLES KING & CO.
61-

!

Commission at

.

Priced well under par,

any

branch of the

an

19407

over

in-

revenues

and

Howard

S.

Harris,
YY

Recording Secretary: G. CarleJordan, Jr., R. W. Pressprich

ton

& Co.

Corresponding Secretary: Wil¬
The* 5s, I960,, bond business since 1919,. starting liam S. Thompson, Ralph F. Carr
& Co.
are callable on any interest date
with J. C. Mayer & Co. In 1925
on 30 days' notice, at 104 to
April
Governors For Two-Year Term:
.when Magnus & Co, was formed
1, 1945, and at 1% less .each suc¬
Robert T. B. Peirce, H. P. Wood &
ceeding five-year period; the 5s, he joined that firm and has been Co,; Charles W. Stevens, Arthur
1964, are redeemable at 105 to connected with them until joining Perry & Co., Inc., and A. N. WinsJune 1, 1944, the premium reduc¬
low, Jr.,. Perrin, West & Winslow.
Westheimer & Co. Sept. 1.
ing." 1%
each
five-year period
Governors For One-Year Term:
Baas

has

been

in

the

municipal

outstanding issue.

-

Mr. Baas' association with West¬

thereafter.
*

will act

Gross

$22,400,000 and .reserve for'de¬
preciation amounted to $4,065,000.

.

At their meeting scheduled for
Friday, Sept. 25-, the group^ will be
addressed by an official1 of the

Portland, Me.

,

Bonds due 1960

14'

Calgary Power Company's prop¬ ! earnings record for the past sevjeral years is outlined at the end
on the Bow
In 1941, fixed
River, situated west ; of this article.
of
Calgary, with an aggregate charges Were earned 1.56 times,
or just about the same as in 1940.
capacity of 70>000 hp,
Also oper¬

in

["he

t-120*

$10,000

earned

erty consists of three hydro plants

Herbert Hipkins

experienced security an¬
alysts, have already enrolled for
the course ia "Receivership, Rails"
to be given this, term at the New
York Institute of Finance, by Pat¬
rick
B.
McGinnis,
well-known
Wall Street, railroad specialist.,.
There:

to

A

purchasers; who,; in turn, serve 58;0Q0 cus¬
tomers with this power.
Service area is predominantly agricultural,
hut other* important industries in the section are lumber, coal and
metal mining.
Calgary,. Alberta,^
is the largest city served.
grade bonds ample coverage. The

X-2033

Begin Fall Term

Y.

N.

NY

Subject—

Price 97

|

More than 100 students, most of

•

Offer

5%

j
Operating in the Canadian Provinces of Alberta and Saskatche¬
wan, ; the company and its subsidiaries .serve? some 215 communities
•with water and electricity at retail; electricity is sold at wholesale

them

Teletype

Calgary Power Co.

First Mortgage 5s, I960 and 1964

;

v

>

NY Finance Institute
To

2-897D

r

CALGARY POWER COMPANY, LTD.

CO.

companies

Stock

Broadway, New York,

'

TRUST

Participations

associated for

was

Newburger, Loeb & Co.
40 Wall

Trust

Members New York Security Dealers, Assn.

Toronto

'

CO.

MORTGAGE

GUARANTEE

Co.'a

Mtge.
other

.J.GOLDWATER&CO!

YORK

NEW

Bell

.,

N. Y. TITLE & MORTGAGE CO.

STATE

Ctfa.

HAnover

CO.

CO.

Co.
Title

&

all

INC.

Telephone HAnover 2-0980

CO.

GUAR.

Ctfs.

and

by

MORTGAGE
TITLE

Ctfa.

Co.

Toronto.

and

Mr.

CERTIFICATES
issued

and

Good-

body & Co. will have direct wires
to their correspondents in Mont¬

MORTGAGE

In

Co.

Title

Bank

HART SMITH & CO.

)'

'

listed

unlisted bonds and stocks.

MARKETS FOR

Invited

Mtge.

Lawyers

Complete Statistical Information

of the fluctuations
In the rate of exchange, remittances for

subscriptions

In

Lawyers

Bond

Canadian Securities

NOTE—On account

foreign

j
j

4-6551

Specialists

Inquiries

,

1879.,

ments must be made in New York funds.

;

REAL ESTATE SECURITIES

1942,, at the post office at
N. Y., under the Act of Mar.

New York,

8,

second-.class matter Feb¬

as

j

Telephone: WHitehall

Company.
Reentered

Lichtenstein'

cash!

j 99 WALL STREET, NEW YORK

Y

.

the

get

Obsolete Securities Dept.

Dana

B.

to

Depot—and

Teletype NY 1-5

Members New York Stock

I Y"Y

thatj

bonds

any

right back at you when
try to sen them? If so, turn

you

Street, New York

Telephone HAnover 2-4300

hold

you

j

bounce

Spencer Trask & Co.

week

a

news and

j

RUBBER BONDS!
Do

1942

17,

statistical' issue

a

Other

September

Victory!

SALVAGE

supervision of Herbert

Hipkins and Gerard L. Burchard,

William D. Riggs, Business Manager

•

Week Nearer

Public Utility and Industrial

William Dana Seibert,, President
j

kmmm

"

High Grade

Goodbody & Co., 115 Broadway,
New York City, have opened a
Canadian
securities
department

Spruce Street, New York
BEekman

Hipkins & Bnrchard
Open Goodbody Dept.

Calgary
had

a

which

Power

Company has
favorable earnings record
affords

these

f

medium

heimer & Co.

was

previously

ported in the "Financial
icle)Y of i Sept. 10.

re¬

Chron-

Harry W. Crockett, Coffin & Burr,
Inc.; William F. May, May & Gan¬
non) and James F. McCormick, Jr.,
Chandler

Hoyey & Co..

THE COMMERCIAL & FINANCIAL CHRONICLE

972

Thursday, September 17, 1942

ST. LOUIS

Real Estate Securities

Stt>\

Co.

£

Analysis

If you contemplate making additions to your personnel,
send in particulars to the Editor of the Financial Chronicle

please
for pub-

request

on

lication in this column.

SAINT LOUIS

NEW YORK,

509 OUVE ST.

z$£

ell

f

:

Seligman, Lubetkin & Co.

Teletype—SL 80

System

'

;

■

•"•■

•

M.i

Incorporated

"■

..

v:.,'

New York

V

«

.

W.^

N. Y.—Harvey

has

Francis I.

joined

du
MUNICIPAL

Co., 1 Wall Street.

RAILROAD
NEW

Gerson
YORK, N. Y.
Steinberger, formerly with Hirsch,

i Teletype NY 1-592

.

Co.,

Pont &

'•;.:■■///

Telephone HAnover 2-2100

Members St. Louis Stock Exchange

&

Members New York Security Dealers Association

Broad Street

41

.

Katz, formerly with A. M. Kidder

"■

•

■

-

Lilienthal &

Co., has become

ciated with Ira Haupt
will

be

located

asso¬

AND

;!:■

Co. and

&

INDUSTRIAL

SECURITIES

firm's

the

at

PUBLIC UTILITY

branch office at 501 Seventh Ave¬

Central States IBA
CHICAGO, ILL.—D. Dean Mc-

■

Cormick, nartner of Kebbon, McCormick &

Co., Chicago, 111., has
elected

been

Chairman
Z the

q

States

Group

of the Invest¬
ment

Bankers

Association

of

America

for

the year

1942-

1943.

:

Other

offi¬

cers

chosen at

the

annual

meeting
;o n
Sept. 15 are:
John E. Blunt,
3rd, of Lee
Higginson

Corp., Vice Chairman, and
Newton
McCormick

D.

D.

P.

Frye
of the
Republic Co., Secretary-

Central

Schultz,

;.Z /:

/ ■ AN INFLATION HEDGE*/////':;/:

A decided trend of capital being invested in selected real estate
securities

as

Trust

Company, William H. Sills
of Sills, Troxell & Minton, Inc.,
Chicago. Arthur C. Allyn of A. C.
jAllyn & Co. was chosen to serve

media,

a

1—1—

depression, real estate

Today they still are looked upon
favorably by Insurance Companies
who have about 19% of their as¬
sets so invested.
;
" //■' .•/ •• / .;-/,

will

tive Committee, ex officio, as the

retiring Chairman.

Ins. Stock
The

current

*

Interesting

issue

of

■

fixed

to

maintain

bonds

interest

return

a

in

effect

of

may

Copies of "News & Views"
be had from Butler-Huff &

Co.. upon request.

40 EXCHANGE

Bell

the

ness

ties.

increase

marked

in

busi¬

and earnings of the proper¬
Sizable
amounts /of / cash,

secured

mately

sinking

fund for

pur¬

of sta¬

bilizing and increasing market
prices. At current, levels,, many
of
these
bonds Z offer Z a
yield
considerably in excess of 6% with
.more than usual appreciation pos¬
:/■'

,

/'/ .Z r:j.//Z; \;/.U

ration and Hotel

Lexington, Inc.,

the report on the former property
showing for the year ended July
31, 1942, the sum of $154,203.59
available as a sinking fund, after
payment of 5% interest on the
outstanding bonds.
t
.

fiduciaries
more

interested

in

in

accordance

ticulars.

rate

dividend

per annum.

:•

Selected Investments

CHIC AGO, ILL. —Selected In¬
vestments Company, which is now
tional

wholesale

Selected

na¬

distribution; of

American

Shares, Inc.,
announces the opening of its new
offices,
Suite
2047,
the
Field
Building, 135 South La Salle St.
Alvin H.

Baum, Executive VicePresident, is acting head of the
company since Major Robert S,
Adler, President, is on active mil¬
itary duty. Edward P. Rubin is
President

of

Selected

Shares, Inc.




American

the

land

front

located on
easterly

hotel containing approxi¬
1,610
rooms
erected
furniture

All

The property owned. by Hotel
Lexington, Inc., and subject to
the

$3,900,000

ended

amounted

funded

debt

to

30,
$134,589.14,

est for the
num

period at 4% per an¬
amounts to $78,000, coverage

above

current

interest

proximately $56,000.
of

was

ington

responding prior periods. Statis¬
tics
prepared by Harris,
Kerr,
Forster & Co., a prominent firm
of accountants and auditors, based
upon the operations of 21 transient
in New York City, com¬
paring the first six months of 1942
and

in

1941,

total

show

a

12%

increase

and

compared

to

60.18%

increase of 6.08%.
Both

of

reorganized
the

in

1941,

an

.

these

in

properties were
1936 or 1937 and

requirements of the funded
debts adjusted to meet existing
conditions.
The outstanding $3,-

Holsten

Lieutenant

is

on

leave of absence from his firm.

28-story
thereon;
at

delphia office pf R.,H. Johnson &
Co., 1528 Walnut Street, has been
commissioned

a

Lieutenant in the

land

on

by 100 feet. The combined area

of both plots
500

square

owns

the

is approximately 19,feet.
Company also
fixtures

and

furniture

subject to the funded debt.

/

City,

has

commissioned

been

Lieutenant

in

York

New

Boas,
the

Parmenter,
now

of

Boston,

in the armed forces.

a
States

United

leave

of

I.

a

York

Boston

First

City,

commission

tenant-Commander
and has been

in

has

re¬

as

Lieu¬

the

Navy

assigned to Jackson¬

ville, Fla.
Commander Booker,
Annapolis graduate, served as
flying instructor at Pensacola
until
becoming associated with

an
a

the First Boston

C<?rp. /Z '

on

Salomon

from

absence

is

Bros. & Hutzler, New York City,
in which he is a partner, and has

,

formerly trad¬

ing manager for Pearson, Erhard

of

the

for Fahnestock

order
& Co.,

department

New York
City, joined the Coast Guard as a

seaman.

the

past

investment

(Special

to

The Financial

Chronicle)

Fisher has been added to the staff
of Wayne
Hummer & Co., 105

Adams

West
Mr;

Street, Chicago, Til.

Fisher

was

formerly with
Stokes, Wolf & Co. for a number
of years. ;//i:;j/-Z:,Z/Z,.r: ■>-/'/■//

See Inflation

j

Hedge

;;//' In Real Estate
/ Investments in carefully select¬
ed real estate

currently have

con¬

siderable appeal as an inflation
hedge, * says the United Business
Service, Boston, in a special ret

port

the real estate outlook.

on

The

Service j

points

"mortgage rates
a

out that
low, and that

are

liberal

mortgage atf low fixed
interest has rather obvious advan¬

tages in an inflationary period.
Mortgage interest, unlike rents, is
for

income

Moreover,

tax

pur¬

though loss
of gasoline tax revenues may lift
real estate taxes, the rise in such
levies will be considerably less
poses.

even

cor¬

rental standpoint, little diffi¬
culty will be had in keeping most
properties fully occupied with all

non-defense building curbed.

"On the bearish side, however,
are
the following factors to be
considered.
even

Local

conditions

are

more

spotty than in peace¬
time.
The danger of investing in
vate, Mr. Rosenfeld during World a 'white elephant' has increased
War I served overseas with the
accordingly. Suburban real estate
Army and rose to the post of act¬ values are vulnerable to the gas
ing commander of a company. and tire/shortages, while many
entered the U. S. Army as a pri¬

than

more

hours

800

of

civilian flying to

his credit, he is
Second Lieutenant and Executive
Officer

of

Air

Civilian

a

//;'/■.

squadron,

Patrol

/■/

long-depressed in town properties
are
beginning to appreciate in
value.
However,'this reversal of
the

Walter

Swiff,

T.

formerly

of

Kidder, Peabody & Co., Boston, is
now

armed forces—Class

ir\ the

3-43-A

Embry

Miami, Fla.

Riddle
/
.

trek

to

doubtedly

School,

the. suburbs

is

un¬

temporary situation.
considering the purchase of
a

rental

property as
unusually
careful

giving

necessary

postwar
time

due

well

as

investment,
appraisal
is

an

weight

current

as

to

war-'

/J

prospects."

;

The Service forecasts that farm
land will continue to appreciate

Ggo. Municipal Club
Will Hold Outing
ILL.—The Munici¬
Club of Chicago will
streamlined one-day outing

CHICAGO,
J. L. R. French,

charge

Springfield.

In

Booker,

New

Jr.,

Rosenfeld,

L.

Naval Reserve.

H.

in

business in

new

With

In The Armed Forces
Benjamin

and
own

a

Robert

Henry

Street

Co.
his

porate and individual taxes. From

Lex¬

,

47th

&

,

than the advance in Federal

United States Naval Reserve.-

City, together with the
hotel building erected
also a 4-story building

East

129

20

Chicago,
Mr.
formerly with Lowell

conducted

deductible

Harry J. Krug, Jr., of the Phila¬

con¬

only a 6%
& Co., Boston, is now serving in
increase
in
operating expenses
the
armed
forces—805th
TSS,
and real estate taxes, resulting in
Barracks 1235, Sioux Falls, S. Dak.
a
50% increase in profit before
capital expenses.
Percentage of
William Gordon, previously in
occupancy for 1942 was 66.26% as
revenue

Force.

Mass., is

48th

and

Niebuhr

S.

Army Air
will report * to -Miami

and

Street,

Avenue

ceived

properties show
earnings over the cor¬

U.

New York

Corp.,

these

Brothers & Hutzler, has
a First Lieu¬

Beach,, Fla., Where he will join
the intelligence division of the Air

•

southeast'"corner' of

the

on

ap¬

'

Holsten, partner in

sists of land owned in fee locdted

June

As current inter¬

Co., whose

commissioned

Force

fur¬

and

are

L.

tenant, in/the

the

on

pledged as additional
security under the mortgage.
Z

with

hotels

Co. In New Offices

confining its activities to the

months

increased

about insured Federal Sav¬

Current

1942,

Both

par¬

6f 4%

six

before interest.

learning

ings & Loan investments full

Edward

*Net profit of Hotel Lexington,
shown

-■

DIGBY 4-4950

Ave.; New York
City,
between
50th" and
51st
Streets,
together with
the 20story

a

,

Aug. ,1 and will undergo a short
period of training before being
assigned to a regular post.

Seventh

of

side

used

the

J The United Building & Loan
Association, 519 Garrison Avenue,
Fort Smith, Ark., will be
glad to
send investors, trustees, and other

"

Teletype NY 1-953

by

block

available from earnings after pay¬
ment of interest on the bonds,
as

Chronicle)'

of Wyeth & Co.,
Angeles, Calif. * He reported
for active service in San Diego on

been
the

Street,

was

/ UNION CITY, IND.—Clifford C.

Los

Salomon

to

The Financial

Ryan-Nichols &

by hotel properties have shown a
gradual but steady increase due

the provisions of the indenture for

Investors And Trustees

PL,N.Y.

Salle

formerly

was

Co,Z

estate field. Several bonds secured

Inc.,

Insured Investment For

★

La

Wright

Chronicle)

with John Gould and G. M. Thor-

Members New York Slock Exchange

issues in the real

Earning reports recently issued

time.

Mr. Jenkins

Street.

SHASKAN & CO.

had

market,

increasing

★

'

\>-;■//-;; Z-;/h;Z/

capital.

include those of Hotel Taft Corpo¬

companies
which offer particularly interest¬
ing possibilities at the present

Financial

Vice-President

| SECURITIES

their in¬

on

&

insurance

to;The

/

■//

.

V

order

Views," published by Butler-Huff
&
Co.
of
California, 210 West
Seventh St., Los Angeles, Calif.,
contains
interesting
details
on
several

;

,

main office is located at 105 South

REAL ESTATE

investors,

to

MARKETS IN

•

needing and;
depending on income and seeing
the effect of high taxes in reduc¬
ing stock dividends, have turned
Many

sibilities.

"News

-

with
TRADING

Incorporated

■

CHICAGO

Se¬

SPRINGFIELD, ILL.— Clifford

have the natural tendency

Mr, Loomis

member of the Execu¬

Traction

!W. Wright has become associated

in

a

and

Co., has joined the staff

(Special to

nishings

Army.

Co.

Street.

(Special

•

mortgage bonds occupied a pre¬
position as
investments.

thereon.

.

Salle

ferred

reduce the outstanding mortgages,

the

&

Securities Co.

George W.
with A.
A.

—

of Leason & Co., Inc., 39 South La

sen

chase and retirement of bonds to

continue

when prices

For many years •>-—

become inflated.

before the

values traditionally increase

real estate

as

firm resigned to go on active duty

year,

Thompson Ross
/'

specialize in that type of security/ /" /" ' V'vV":/>"![ {"
MILWAUKEE, WIS. —Fred D.
Investors'are seeking a tangible investment ;for/their money Jenkins has become affiliated with
and feel that these securities backed by real property provide Such Charles W,
Brew, 735 North Water

filling a vacancy caused
when Douglas Casey of the same
one

/,';Z;:

who

values of many

K. Farrar of Smith, Barney & Co.,
Pat G. Morris of The Northern

■;

/;

the

named for three-year terms on
the Executive Committee: Holden

Bennett

hedge against the inflation threat is noted by brokers

a

These factors have already

In addition, the following were

z■.

previously

curities

HOTEL SECURITIES SHOW MARKET; STRENGTH

vested

Treasurer.
;

■

CluCAGO, ILL.

f

Central

■

{Special to The Financial Chronicle)

Name New Officers

1

Z.'

•//'•.

nue.

Bond

pal
hold
at

a

the

Bob

O'Link

30. through R. C.
Halsey,; Stuart & Co.,

Sept.

Vinnedge,

Inc., Chicago.
club

The

all

with

Palmer

boom

as

well

as

House

to

take

Melvin H. Hass, Captain in the care of out-of-town visitors, if
U. S. Marine Corps Reserve, has reservations are received a few
437.800 first mortgage bonds of been called to active duty.
Until davs in advance. The guest fee
'
the Hotei
Taft Corporation are recently Mr. Hass was Executive is $8.

as

there

the

will

be

during
and after World War I.
A farm,
the announcement adds, "offers a
reasonably good inflation hedge'
under

tions—if

the

one

of

means

adverse

subsistence

economic

condi¬

purchaser

knows

something about practical farming
or

can

afford to hire

manager»'
a

or

farm

municipal

to

the

but that

such

worked

invites

participate in the outingarrangements have been made

men

value,

no

Golf Club at

Highland Park on Oct. 2. Reser¬
vations should be
made on or
before

in

a

tenant.

competent

Properly

show

can

a

good

profit at current crop price levels
or

at least

provide

ing investment.
as

a.

country home,

more

a

self-sustain¬

However, purely
a

farm has

no

inflation hedge value than

city house."

a

Volume 156

Number 4108

THE COMMERCIAL & FINANCIAL CHRONICLE

^

i

973

'

We Maintain Active Markets in

Opportunities in

;

Minneapolis, St. Paul

Tomorrow's Markets

&, Sault Ste. Marie
'

•'

Walter

Whyte

4s & 5s, .1938

St. Louis-San Francisco

Ry. Co. Securities

Chicago, Rock Island
& Pacific R. R.
4s,

&

1934

4»/2s,

Circular

on

request

Brown Co. 5s, 1959

1952

Says

Minnesota & Ont. Paper 5s, I960

PFLUGFELDER, BAMPTON & RUST

Roggenburg & Co.

Members

Members N. Y. Security Dealers Assn.

29

Tax amendments have
effect

market

on

misleading.
tween

partial

Teletype: NY, 1-1928

still

"hay and grass."

(

No ingly. -

signs of immediate trend

visible.

.V'/
f

WALTER

By
f

I
*

■

r

7

'

■

f\

f

Abitibi P. & P. 5s, 1953

Exchange

New York

RAILROAD

I'

thing of a positive 1 nature.1
One day it shows up, the next

'i

#

You

v;

*

■;

certainly

»

.

*

There

The

first

Andian National

recall

the

farm

sional fireworks.

Still

tural.

It

was

na¬

would be. led

one

Fanny Farmer
Halifax Insurance
Southern Pacific System liens continue as about the
brightest
spot among- the second grade rail issues, hovering around the year's

the interest of the

in

was

country..,'

'

/

-.

the second is taxes, the

'

Loblaw, Inc.

other marginal carrier securities trade, listlessly
around the middle level of their 1942 ranges; Complete justification
for the outstanding market .performance of the Southern Pacific liens
is

found

in: the

phenomenal earnings record

being

achieved,

and
—

that

the

long

one,

will

war

probably be

a

HART SMITH & CO.
52

WILLIAM ST., N.
Bell

We

maintain

net

trading markets in most
of the medium-priced Rail Bonds,
*. particularly obligations of

•,

Following the short-lived peace
psychology last spring there has
been a more general recognition

Y.

Teletype

New York

IIAnover 2-0980

NY

1-395

Montreal

Toronto

New York Central

Illinois Central

Special Circular

i

and there is every rea- (
son
to expect that Southern Pa¬
cific will continue with peak trafj
fic loads and earnings at least for I

So what

:

high levels-while

to believe

the

is

'

,

President's ultimatum to Com

it

for this

reasons

are

confusion.

*

At.

.

*

Congress, after get¬ growing confidence in the ability®1
ting it's senses back, would do and intention of the management,
dications of any single day
something, not because Roose-i to take the fullest financial ad van-1
follow over into the next day. velt demanded
tage of the earnings windfall, j..\
it, but becausb
*

\

accord¬

acts

But seldom do its in-:

■>

Winnipeg Elec, 5s, 1965 A.B.

Bell Teletype—NY 1-310
SECURITIES

REORGANIZATION

*

.■

to do something about
prices by October. Of
the course there were Congress
*"

As this goes to press
market has still to show any-j

down.

Stock

Telephone—DIgby 4-4933

•

gress

WHYTE

f

York

■

be¬ "suggestions,"
..."

.real

New

Broadway

effect

but

Prices

Bell

61

Tel, WHi.. 3-3840

Broadway, N.Y.

t

'>•%Lackawanna

happens? Henry B:
SEABOARD AIR LINE
Lehigh Valley
Congress's insistence Steagall, Alabama Democrat;
of looking at the whole
Southern Pacific, etc.
thing and Chairman of the House
COMPANY
We
generally
able
to
offer
through the small end of the Banking Committe and leader the duration of the war. In addi-,
registered bonds of these roads
binoculars.
at substantial concessions from
Receivers' Certificates
J
:%■%;'. ■7 hy. M of the House farm bloc, comes tion, there has been a gradual re¬
/
versal of a earlier. £ ears that the
current coupon bond vtarket,
V
.V
#,
*
* v.7.
3V2S, 1945
up with a plan to ".
com¬ company faced a
sharp contrac¬
;
I place the war as the first mand the
sent on request
Secretary of Agri¬ tion in traffic volume to low de¬ -EROY A. STRASBURGER & GO.
'/j
■■•■.'VI WALL STREET, NEW YORK
!
reason
because" every thing culture to make loans and pression levels as soon as the war
WHitehall 3-3450
Teletype: NY 1-2050
is over., This more general post¬
that has happened in the last
Van Tuyl & Abbe
purchases and to carry on war
appraisal is based on recogni¬
year, and will happen in the other operations" "(in agricul¬ tion that we
72 WALL STREET
/
\ J :'i
will, in all likeli¬ erty rehabilitation work and large
future, is tied to the war.. tural products) "at not less hood, be called .upbn to play a expenditures on new equipment
NEW YORK
:
Taxes have jumped, business than 100
dominant role in the feeding and have brought an important im¬
per centum of the
rehabilitation: of
awar
torn provement in operating efficiency.
overseeing has increased but parity prices therefor. ".
indicated that the company has
The
world, thus presaging well main¬
improved operating effi¬
you can rest assured none of The catch is in the Steagall in¬ tained traffic levels for
started making inroads
at, least ciency was in evidence even be¬ already
the
1949
these.,w.Q\ild have ;assumed terpretation of "parity," Ac¬ the major transcontinental roads. fore the spurt in westbound i nto
requirements
/their present importance if it cording to the Steagall bill the There" is also a growing feeling freight tonnage ; (normally there through open market purchases;
wasn't for the war.
We are fomula for parity is also to that the competitive situation may is !a heavy empty car movement
not, be so acute, at least in. the west) brought about a healthier
Defaulted RR Bond Index
!now spending about $139,000 be changed.
7"-7"■•■I immediate post-war years.
and more economical balance of
war,

third is

RAILWAY

are

,

■

■.

-■

,

.

.

"

<

„

.

,

-

•

.

»

minute.

a

on

the

from somewhere.

-,

The defaulted railfoad bond in¬

It's

war.

.obvious the money must come
*V *■-■■■'

;

■

!

Recently the market got a
arm when it inter/
1
preted the 80% tax Ceiling
t; proposal as bullish." Appar¬
ently it • wasn't important
'.enough to move prices too
■;much out of their rut.'' The
•j other day the Senate Finance
Committee agreed to permit
.

shot in the

..

;■

\

The
sober

Senate,

minded,

a

little

;

f

more

with
Brown-Wagner resolution
paid on " their preferred in which would really do tnb
making up their surtax net job. But no sooner is it made
: income.
Previously the Com¬ public then Senator John
mittee had recommended a Bankhead, leader of the Sen¬
:cut in the normal and surtax ate farm bloc and Democrat
utilities

rates

♦

to

deduct

dividends

from

45% to 40 %<
These actions brought about
another small rally, particu-0
larly in the utilities.
.

with

amazesHme

is

Alabama,
the

comes

out

that

statement

he

would offer an amendment to
the
to

What

came up

the

from

out that feeding! traffic .direction. v; This was aprebuilding Europe and Asia parent * in 1940 when revenues
were not much
(only about 3%)
will place a heavy burden on avail¬
above the previous recovery peak
able
shipping tonnage, and that
of
1937, but the operating ratio
intercoastal steamship competition
was Cut more than four points and
ipay be slow to revive.. The gen¬
erally unsatisfactory profit expe¬ transportation' ratio declined from
to 37.6%.
Last year the
rience of intercoastal. and coastal 40.8%

j,It is. pointed

It's all

quite simple. If peo¬
ple object to a little thing like
par then just change par. vOf
course prices won't go down;
or remain
steady. They will
have to go up to Mr. Steagall's
par.
But what of it? Isn't the
House
giving us what we
want?
'/■/•'
-

Brown-Wagner resolution
change the value of par.

that

and

ship

operators

years

and the

time

;

and

-

recommendations

with

As

it

stands

now

if

the

Steagall and the Bankhead in¬

•

complete seriousness then go terpretations
become " law
out and
buy certain issues foodstuff prices will not only
they feel will be benefited. go up, they will be forced up.
The fact such recommenda¬ This means
wages must also
tions are not laws and, for all
go
up.
Where would this
we
know, may never be, is kind of a mess leave industry!
cheerfully overlooked.
*

*

*

So

there

If

is

one

thing

un-

'

predictable it is Congressional
; action. One day one "spokesman"
-next

1

says

one

thing.

The

if

"by

"recommendations"




and

possible deterrent

as a

rebirth

such

of

serious

Finally, it
with
logic,
that
much of the plant construction in
,the Southwest and the Pacific
is

contended,

Coast

resents
the

for

areas

to

area.

future,

wheii

with the more realistic
view now being taken of the long
term post-war traffic position of
Southern Pacific, has resulted in a
feeling of confidence in the long
term ability of Southern Pacific
coupled

to maintain its financial

only

was

Southern

few

integrity.
that

ago

years

Pacific

of

one

as

a

was/considered

the most

may
•

furnish

likely of the

•

(Continued

.

on

partial

,

-

page

S80)-

•

probably

it

and

will

held

publicly

Pacific

reduced

its

outstanding

non-equip¬
by $34,441,000 in 1941
on net earnings of
$34,759,000, and
during
the first
half
of .1942
liquidated the balance remaining
ment

The

broker-dealer

of the

materially lower in 1942.
Southern

License Revoked

;

to

be

debt

,

registration

Superior Investment Com¬

pany,
9 South Kedzie Avenue,
Chicago, 111., has been revoked by
the Securities and Exchange Com¬
mission, which said that the com¬
pany
had filed an answer and

consent.

V V"-'

'

of the temporary loans contracted
in the late 30s.
Even more sub¬
stantial

should

progress

be

pos¬

running close to
tire

of the

10%

en¬

system

non-equipment debt..
obviously not take very
long under these earnings condi¬

It would

tions

to

reduce

burden,

to

the

fixed

level

a

charge

supportable

eyen under severe depression con¬
ditions.

Exclusive

liquidated

earlier

1941

-

year

showed

a

this

,

of

As

industry goes "all out" for
the investment advantages

war,

the

of

ing

oil

more

industry

and

more

are

to the

appeal¬
public.

loans

the

year,

balance " "sheet

end

total

of bank

Oil Roy allies?

$73,631,000 of

non-equipment
debt maturing
from 1942 through 1948 and $132,It is

Although the armies and navies
of

the United Nations

are using
quantities of oil, the big de¬
just starting.

vast

mand is

Producing Oil Royalties

.

Four
cific

years

ago

Southern

are

Pa¬

operating at a deficit
involving itself heavily in
was

and

bank

and

This,

year

Southern

RFC

accommodations.;

it Vis

Pacific

possible
may

earn

that

As brokers
on

counts
for

to

the

a

so

subsequent

ings experience." Extensive
-j / • n.

»

I

i

tif.

ac¬

degree

happy

ideal

odd lots of

Our
S.

earn¬

6s./35 Bonds 8s Ctfs.

If

'*.•••

5s/45 Bonds

6s/45

HAnover 2-9175

filed with
spread is

or
^

Eastern

Oil

Royalty

Dealers

Association

co.

Established

42 Broadway

specialists in rails
11 wall street

are

dealers

you

Members

1. h. rothchild &

the

TELLIER & COMPANY

Ctfs.

&

offerings

and

would like to handle Oil Royal¬
know more about them, write,
or come in to see us.
We can
supply all details.

8c Ctfs.

Bor.ds

C.

phone

SEABOARD AIR LINE
Consol.

Royalty

E.

ties,

Georgia & Alabama
1st

your

they offer an
hedge for both

as

attractive.

Seaboard All Florida
...

now,

inflation

large and small investors.

HIGHEST GRADE RAILS

r

especially attractive to

customers

invite inquiries

or

$60,-

good,

considerable

we

blocks

We also maintain net markets in

000,000 after all charges, and the

things did not look

a

was

35.3%

marginal properties to: succumb to
280,625 falling due in 1949.
a top-heavy (debt
structure.

get

you

transportation ratio

of Pflugfelder, Bampton &
Rust, 61 Broadway, New York
City, shows the following range
for Jan. 1, 1939, to date: high^41%;^ low—14%; Sept. 16 price-^41I2. v
■.
; - r\
: ,vv

sible this year, with net earnings
prog¬

and indicated

date

visible

the

over

of the service

impressive5 financial

made

ress

rep-'

purposes

permanent accretion to

a

economy

The

war

all excited company is being just as quick to
about a new piece of legisla¬ pay off its obligations as it was
to contract new ones when earn¬
tion
Congress is dickering ings were low. As a matter of
about, and wonder why the fact, the willingness of the South¬
market doesn't go up or down ern Pacific management to spend
money
in
the
late ■ 30s,
when
on
it, some of the above

another "spokes¬
man"
says
another.
The "plans"
stockmarket, not easily fooled answer.
day

also

are

steamship competition.

It

:people read these suggestions

the

the pre-war
serious mari¬

situation

labor

pointed to
to

in

very

dex

n.y.c.
Tele. NY 1-1293

1931

New York, N. Y.

BOwling Green 9-7949
Teletype NY 1-1171

prop-

b,oU

•■ill

u

:

\

THE COMMERCIAL & FINANCIAL CHRONICLE

r974

profits tax just

excess

as any

Thursday, September 17,1942

other

DIVIDEND NOTICES

regular earnings from a business.;

However,

Bank and Insurance Stocks

Royal Bank of Scotland

insurance company's

an

statutory ^earnings are materially

:

ings., When hew writings come in
more rapidly than old business is

This Week—Insurance Stocks

(

only an incidental and rela¬
painless item of expense
the average business.
Now,

tively
for

has increased materially and thus

Hartford Fire

provides correspondingly greater
amounts which may be invested.

however, it is estimated that tax
75%
of the current profits - of incor¬
porated industry.
The ramifications of such

velopment

National Fire

The investment

Phoenix Fire

regular

ness

:
de¬

The burden will by no means fall

flew

umnoers

York

Stock

Exctiange

and other leading exchanges
The
business, for example,
1 WAUL ST.
NEW YORK
will
probably fare better than
Telephone DIgby 4-2525
most others both in respect to the
proportion of earnings it must pay
Apparently, companies
out in taxes and in respect to the figuring.

equally

industries.

all

on

-

insurance

stimulation
the

is

it

from

receiving

large scale productive efforts
Inasmuch

of the nation.

as

insur¬

deductible
operating expense for those en¬
gaged in other lines of business,
there is ample incentive for them
to carry every possible
type of
coverage—and in the maximum
amounts
permissible... Further¬
more, there is. less of a tendency
to
boggle over rates when it
ance

premiums

are

makes

little

:

in

the

difference

to

the

fire

and

might be termed the

and

butter"

favored
position in regard to taxes.
This
due

is

which

to
are

juncture.:

number

a

worth

of

factors

discussing at this

y-?

•;

-i-j

The tax advantages enjoyed by
insurance company are largely

an

fortuitous because the

same

sched¬

ule'.of taxes applies to them

as

to

other corporations. However, due
to certain peculiarities of insur¬
ance

accounting plus the
considerable proportion

company

■.

f'49

income which they

investment

The

of

£98,263,226

,

April 30, 1942, k
cerit

and three-quarters "per

one

on

1942.

of business September 22,

-

-

C. Wick, Secretary

Howard

v.

'

'

f.

American Manufacturing
NOBLE

WEST

AND

stock

The

Australia and New Zealand

of

books

record

the

American

be closed

Company will

Manufacturing

Company

STREETS

NEW YORK

BROOKLYN,

for

tha

of transfer of stock on September 19th,
until October 1st, 1942.
Directors' Meet¬

purpose
1942

BANK OF

will

ing

(ESTABLISHED

Paid-Up

';

£8,780,000

Reserve

Fund

Liability

6,150,000

in¬

.:v

• '
•
BROWN,

B.

18th,
s

Treasurer.,

of Prop.

DIVIDEND

-

OF DELAWARE

£23,710,000

•

?

COMPANY :

ARMOUR AND

8,780,000

September 2, a quarterly dividend of
three-fourths per cent (1%%) per
share on the Preferred Capital Stock of the
On

Aggregate
Assets
Sept., 1941
;

SIR ALFRED

30th
_„£150,939,354

Head

and

one

corporation

above

DAVIDSON, K.B.E.,
Manager
/

of

Board

General

Offic^: George Street, SYDNEY

the

Inasmuch

and

London,, it offers the

from

and

efficient

record

of

the1

by

1. 1942
books of

the

on

business Sep-1

at the close of

company

tembcr

declared

was

payable October

Directors,

Stockholders

to

The Bank of New South Wales is the oldest

12, 1942 s
i
E. L. LALUMIER, -Secretary
,

M.

and largest

bank in Australasia. With ovei
870 branches in all States of Australia, in
Fiji, Fapua and New Guinea,

New Zealand,

'

■

'Dividend Notice erf

complete

most

ARUNDEL CORPORATION,

THE
1

tax.

Some

f.

1817)

Capital

Reserve

September

Friday,

on

ROBERT

NEW SOUTH WALES

re¬

held
v:

be

'•

1942.:'

operating expenses & may toe
charged against taxable income, it
is
safe
to.; say
that their, taxexempts are almost entirely free
normal

.'

Ltd.

Bank,

Glyn Mills & Co.

as

the

,

""./.
Hari^sJ President

Charles J.

September 10, 1942

Associated Banks:

,

by, Guaranty, Trust Company
4..v

l'.

,

.

•

•

Checks

closed.

not be

of New York.

:

Deacon's

\

the' preferred • capital;stock of
'this Company, payable October 1, 1942 to tha
holders of record of said stock at the close

'(1 K%)

will be mailed

ASSETS

TOTAL

(3) preferred stocks,
stacks.

York, n. Y.

Transfer books will

chiefly
tax-exempt Government and mu¬
nicipal bonds, (2) 'taxable bonds
■

-

./V:

declared, out of the earnings

been

fiscal year ended

the

dividend of

Smiihfield, E. c. /

Charing Cross, S. W. I ;

7

common

of

-

companies; is
derived
from four sources: <1)

of all types,

New

There has

";y.

Kf' 84 New Bond Street, W. I

'

income

'

"bread

,r

surance

•':

•'

Burlington Gardens, W. I

.

Williams

earnings.

ceive.

,-'i

'■

v:

'

'

';

Bishopsgate, E. c. 2

8 West

well within the amount of net in¬

(4)

'

„

3

| >,

.

ChurchStreet

30

of

traders

this income may toe subject to the

banking
travellers

and

countries.

service

to

investora/

interested

in

"

*■

Directors

of

Board

The

'

,

•' J

'

September

these
>

Bid.

iv<Baltimore,

16.

the

of

1942.
Arundel

surtax but, under the 1941 law,
'Corporation has <thife day
declared 26 cents
fact that a
LONDON OFFICES:;
a given dollar is J
per
share as the regular quarterly dividend
29 Threadneedle Street,
of income is derived from secur¬ interest on State and; municipal
on
the no par Value stock of the corporation
insurance or • for
issued, and outstanding, payable on and after
bonds was exempt from tooth the
* 47 Berkeley Square, W. 1
~
taxes.
October -1, 1942, to the stockholders of record on
'V{'I ■< ity holdings, many exemptions normal and surtax./ Dividends
Agency arrangements with Banks
the
and options are available to insur¬
corporation's books at the close of busiAs far as their own taxes are
•.
throughout
the
V.
8.
A.
ness
September 21,
received on holdings of tooth preance
companies which are not
j\
concerned, fire and casualty com¬
j JOSEPH N. SEIFERT, Seorctaryj V
ferred and /common stocks, last'
open to other corporations.
Tak¬
panies have heretofore enjoyed a
ing
the
1941
Revenue
Law
as-a year, were 85% exempt under the
Realtors To Hold
relatively sheltered position. The
/
normal tax
and totally; exempt
TH€ ELECTRIC STORAGE BATTERY GO.
model, it is interesting to review
new Revenue Bill of 1942 has not
the tax situation' as it applied to from the surtax. 1 It appears that
National
War
Conference
The Directors have declared
yet been passed but it is begin¬
the
new law will carry very sim¬
insurance companies;
Apparently
from the Accumulated Sur*'r
The
National 'Association
of
ning to take shape in its broader
plus of the Company a divithe 1942 Act will carry the same ilar .provisions.'■
Real
Estate
Boards
will
hold
a
principles and a reasonably close
As
far
as
V/dend
of 'Fifty Cents ($.50)
excess
profits fare
normal tax rate, a boost in the
War Conference in St. Louis, Nov.
per share
on
the Common
: approximation can now be made
Stock, payable September 80, 1942, to stock¬
of the impact upon a good many surtax from 7% to about 21% and concerned, most insurance com-;
i8-20, inclusive. President David holders of record at the close of business on
panies
stand
very
well.
/
For
the
an excess
profits tax of 80% to
industries.
The 1942 bill will be
B, Simpson announced on Sept.
September 14. 1942. .Checks will be mailed,
most
part, earnings during "the
a good
12.; The Hotel Jefferson will be
deal stiffer than the 1941 90%, with or without some post¬
H. C. Allan, Secretary and Treasurer,
basq
period
of
1936-39
were
excel¬
war credit provisions. ?
' '
: ■
bill.
convention headquarters.
However, although the rates
Philadelphia, September 8,1042.
4"
lent if the average earnings op¬
will be higher, indications are that
Inasmuch as insurance earnings
%
"The
relationship
of
real
estate
tion is used. " Furthermore,; al¬
the application of them will fol¬ derive
from
two
distinct
and
to war activities is an intimate
ternative options are permissible
The Garlock
low the same general lines as last separate sources, each one must be
one and it reaches into every real
;
if a company elects to use the
As
to
year.
estate office," President* Simpson
Therefore, in respect to examined.
underwriting
J^GIGNG^^GompanX'
invested capital method t and, in
states.
The national War Confer¬
corporate taxes at least, it is pos-f profits, they are subject to the
one
way or another,' investment
1 * '* * *1*7
''
September. 15, 194i
sible
to
do
some
preliminary normal tax, the surtax and the
ence, of the entire membership of
COMMON DIVIDEND No. 265
policy may frequently toe adjusted
the Association, will meet with of¬
to permit of substantial savings.
ficials of a number of the Federal At a regular meeting of tlie Board of
One curious phenomenon in the
agencies whose work calls for real Directors, held in Palmyra, N. Y., this*
present situation is'the'fact that,
estate war., use.,or otherwise af¬ day.'a dividend of 75f per share was
during this particular boom, bond fects real
estate in the; war pro¬ declared on the common stock of the
prices
are
high and
common
Company, payable September 30, 1942,
gram. '
stocks are low. / Normally,; when
to stockholders of record at the close of
/ Subjects which will be discussed
business is active and premium
business September 19, 1942. !
include rent control, its adminis¬

buyer

paid

whether

out

for

-

..

,

.

!

LONDON OFFICES:
■' 1

v.v

busi¬

Therefore,
earnings
are
exempt' from ; taxation
is
highly
important,
particularly
since most insurance companies
keep their own dividend payments
vestment

Company

i/:

"

obviously provides the most
and dependable* income;

and

casualty business

will continue to occupy a

a

•

of thd

end

the extent to which these

and varied.

many

are

a

•

throughout Scotland

"run

Aetna Fire

charges are absorbing some

American Car and Foundry

OFFICE—-Edinburgh

-Branches

off," the setting up of addi¬
tional legal and contingency re¬
1; With corporations and individuals alike, it is no longer a ques¬ serves
may result in a technical
tion of how much one makes but how much it is possible to keepunderwriting loss.
In effect, the
after the tax-gatherer has made his! rounds.
Thus taxes have become
insurance companies now have a
the most important single factor
hp. corporate analysis. This is not considerable amount of deferred
•entirely attributable to the war because there has been a marked
or hidden earnings which are not
tendency in that direction for i several years, but financial require¬
taxable.
According to present in¬
ments of the war are serving to^
dications, this situation may con-1
accelerate and emphasize the situ¬
tinue through the heaviest period
ation.
In the days when peace and
of war taxation.
V-vl:•;
Primary Markets
some measure of frugality charac¬
In any event, premium income
terized
cur
national
life, taxes
were

HEAD

ac£

\

Incorporated by Royal Charter 1727

writ-'

influenced by its volume of

.

.

,

.

•

.

.

-.

,

,

,

,

income

of

the "insurance

compa¬

tration/and its implications; the
nies is large, common stocks are
land purchase t and leasing
pro¬
selling high and bonds are low.
gram: of the Army and Navy; find¬
We shall let our readers
draw
ing of homes for war workers toy
their
own
inferences front; this
private building or remodeling;

,

THE

R. M. Waples, Secretary

r,

NEW

YORK

TRUST

COMPANY

\

n

Broadway v-."»y...

i

,

but

it

if

can

does

be, said,; at

illustrate

the

least," that
investment

real-

estate

,

in

hands

the

of

the

Property Custodian and of
Federal; .Deposit
Insurance

The

always available to the
companies / possessing, the: flexi¬
Corp.; maintenance of the nation's
bility enjoyed by companies in many million dollars' worth of ex¬
the fire
and
casualty business. isting structures of all types under
Through thick and thin, for richer war restrictions -"upon materials

Frank

Hurley Now With

f

-that

local

„

will

conserve

and

need

for

Corn Exchange v

National
and

Trust

Bank

to

Company
(Special fo The

Financial 'Chronicle)

Established 1858

BELLINGHAM, WASH. —Wil¬
liam

Member Federal




Alison

Frye is conducting

a

securities business from offices at

Deposit Insurance Corporation

1243 Marine Drive.

-

be

taken

now

toward

close.
F.

,

.

LITTLEJOHN.

York, September 15,

1942.

-■

J

DIVIDEND

dividend

A

the

capital

of

stock

declared

'payable

holders

of

'

of

this

October

record

September 24,

NO;

'

173

seventy-five cents

"

has

15,

to

1942

close

of

'been

stock¬
business

J

:

.

LIONEL W. UDELL,

■:

share On

Company

"the

at

1942.

.

per

1

' 1

Treasurer.'

.

'

THE WESTERN UNION

TELEGRAPH
;

V

'

.

'

New

dividend

stock

able
at

CO.

September

8,

1942.

>

DIVIDEND NO. 262

;
A

York,

of

of

this

October

the -close

50

cents

company

18,
of

G.

-1942,

share on the capita:
been declared,. pay¬
to stockholders cf rccorc

business
K.

a

has

on

September

HUNTINGTON,

18,

1942

Treasurer/

sound

indus¬ Realtors, the National Institute of
Real Estate Brokers, the Home
in the
Builders Institute of America, the
Urban Land Institute, and the Na¬
American In¬

urban planning,; including
trial soundness for cities,

Frye In Bellingham

PHILADELPHIA

<

will not

HARRY

ST.

Co., has become associated with jmigratior\ and. by stoppage of con-;
Merrill Lynch, Pierce, Fenner & struction; ■ commercial <■ property
Beane, First National Bank Build¬ management under war - period
ing.
;■ •'
'v.' sales restrictions; action that needs

this -day

UNITED FRUIT COMPANY

Merrill Lynch Firm neighborhood shopping centers in
PAUL, • MINN;—Frank W.' new,-'sprung war - worker com¬
Hurley, formerly, manager of the munities; -civilian housing needs as
local office of Harris, Upham & affected by the pressure of in-

books

-

New

sound

State

situation, for

governments;

a

transfer
'

poorer, these companies: have and
equipment; industrial- plant
invariably accomplished a better- location in. the war program; the
than-average performance in han¬ movement for a co-ordinated na¬
dling their investments.
It is a
tional, ; State and local taxation
fair
assumption that they will policy thai will draw the neces¬
continue to do so.
rlv
:-."C
sary war costs equitably and in a
way

has

Y'.'i!-:v.'' Secretary.

or

financial

Trustees

declared
quarterly dividend of.3^#per share);
on
the Capital Stock of the Company, 'payable
October
1, 1942, 4o stockholders of record at
the
close of
business on-September
19,* 4942.

Alien

advantages

of

The Board

a

post-war period.
Meetings of the

stitute of Real Estate Appraisers,

tional

Conference

of

Real

Man-

Taxpayers will be held in

agement, the Society of Industrial

tion with the Conference.

the Institute of Real Estate

Estate

connec¬

Volume 156

Number 4108

THE COMMERCIAL & FINANCIAL CHRONICLE

Harris, Hall & Co. (Incorp,); Hayden,- Miller and Co.; Hemphill,
Noyes
&
Co.;
Hornblower
&
Weeks; • W.
E.
Hutton
&
Co.;

The Securities Salesman's Cornei
1

Johnston,

AN INFORMATION PLEASE! OR SO YOU THINK

in this column

the

point that much of
advisor.

Such

salesman's

a

confidence

,

articles

the

as

success

depends

which appeared in

!

of

salesman's

a

foundation

Offered By Dillon, Read
An extensive

-

Southwestern' Public

Co.

was

Milwaukee

Lord, Abbett & Co.
INCORPORATED

63 Wall Street, New York
CHICAGO

Smith,

Service

&

Barney

Co.;

gains

the

LOS ANGELES

«

Stein

Bros. & Boyce; Stix & Co.; Stone
&, Webster ' and
Blodget, Inc.;

carried out with the of¬

Investment Trusts

Sept. 15 of $20,000,000 of
Stroud & Co., Inc.; Spencer Trask
company's first mortgage and
poise and
collateral trust bonds, 4% series ,&/Co/ Tucker, Anthony & Co.;
"know how" that brings in the
Union Securities Corp.; Whitaker
due 1972, $6,000,000 of 2% and 3%
orders.
& Co.; .White, Weld &
Co.; Wil¬
serial notes due 1943-1954, 60,000
Just to show how much meat
shares of 6yg% cumulative pre¬ liams, Parmele & Co., Inc.; the
was contained in this
article; and
ferred stock and 185,000 shares of Wisconsin Co. and Harold E. Wood
possibly to give some insight
salesman

JERSEY CITY

Shields & Co.; Shuman, Agnew &
Co."; I. M. Simon & Co.

financing program

for

request

on

*

Southwestern Issues

knowledge about "what is go¬
ing on" in the securities field.
It
is through this kind of reading
(which
eventually
becomes
a
daily
habit)
that
a
securities

The

Co.; Newhard,
Co.; Newton, Abbe & Co.;
Paine, Webber, Jackson & Curtis;
Putnam & Co,; Rauscher, Pierce,
& Co.,, Inc.; Riter &
Co.; L. F.
Rothschild & Co.; Schwabacher &
Co.; Chas. W/ Scranton & Co.;

the Sept. 3

"Chronicle," by Pat-«rick B. McGinnis, headed, "Re¬
organized Rails Have Favorable
Outlook," can help to form the
basis

Prospectus

AMERICAN

Cook &

issue of the

of

Kay,

Hagan, Inc.

in, his knowledge as an
one

Co.;

Laurence M. Marks & Co.; Mason-

his ability to
investment

upon

&

Co.; W. C. Langley & Co.; Lee
Higginson Corp.; Loewi & Co.;

importance of accurate informa¬

tion about current developments in the financial world was stressed
as a valuable aid in
meeting current sales problems.
We made the

gain his customer's

Lemon

Richards & Co.; Kebbon, McCormick & Co.; Kidder, Peabody &

YOU KNOW THE RAILS
Last week

975

fering
the

THIS AND THAT

.

-...To those who become obsessed with the
gloomy aspects of this
fourth year of
war, the spirit of leading investment

.

into

how much
know

how little you may

or

about

of

some

the

road
securities,
the
following
questions have been selected from

material

in

covered

by Mr. McGinnis.
and

how

see

Answers will
back

this

Score yourself

you

be

article

out.

come

found

inside

on

of this section.

cover

! 7 1. In the 20s the railroad indus¬

try had

income which

a gross

ap¬

proximated $6,000,000,000 average
per annum

against

as

an

average

figure of about $4,000,000,000
the 30s.

FOR

THIS vDECLINE

IN GROSS?
2.

in

WHAT WAS THE MAIN

REASON

>

What is

3. Two

Class I railroad?

a

of

7:

7

the

following roads

Dillon,

Read

Co.

&

headed

a

Lend

nationwide
underwriting *; group
offering the securities to the pub¬

prior subscription by the

common

stockholders of
and

Community Power
Light Co. and General Public

Utilities, Inc., which are to be
merged into Southwestern Public
Service Co.

;'vv

in

transaction

the

amounts

■

7 The
real

to

price 'of

average

estate

issues

used

the

Said

200

the

,

people.
and
am

study

classed

Pocahontas

as

believe
and

can

prosper

that

private

must

survive

in this country.

MAJOR

I- 20

I

Government

and

to

laws

NEW YORK

which keep business from abus-

INDUSTRY

SERIES

STOCKS, INC.

.

ing its

powers. ; But I am op¬
posed to that deadly and ineffi-;

;

The bonds are priced months was 0.9% registered dur¬
107V2, - the serial' notes at an ing:' April,;-/Aug. 31", the average
average of 100.1617% and the pre¬ price per $1,000 bond stood at $314
compared

to $309

that stifles individual ini¬

racy

tiative

July 31

on

and $302 at the close of 1941.

SERIES

cient red tape type of bureauc¬

at

as

hope¬

more

not opposed to regulation by

the

$34,434,702.

ferred stock at $100 per share, in
each case plus accrued interest or

I

business

.

states, "was
1.6% which compared with a gain
of 0.7%
during July;
The- best
previous "gain 'over the past six

—

am

ful about the future than many

Co.'s

bond

Mr. Putnam:

"Personally I

in

Amott,
study of the real
price
averages,
showed, its sharpest advance in
six months.1; "The increase for the
Baker* &

estate 7

month,"

The aggregate public offering
price of all the securities involved

nam,

Averages Show Advance

lic.

Offering
of
the : common
shares, however, is subject • to

an ear, for
example, to the recent remarks of George Put-?
Chairman of the Trustees of the George Putnam Fund of Boston*
delivered at a special
meeting of the beneficiaries of the Fund.

Real Estate Bond Price

and

substitutes

false

a

security for opportunity. I may
be old-fashioned but I still be¬

The

dividends; the •' common stock is year-to-date gain for the averages
and three as Industrially Owned being offered at a price of $5 per ;was 3.9%. f.V■/'."•
7*-:'->/" :-vv
"During August a total of 88 is¬
Carriers, name the roads which share.
\7 '
'/7':.*•;7,7:

ate

spon¬

will prove a welcome antidote.

sors

~

latest

"goings on" In the field of rail¬

company

7

& Co.

stock.

common

Roads

lieve

that

ON

W.4.0NG

REQUEST

COMPANY

and

INCO«rO«A1f 0

there

curity without

PROSPECTUS

r

HUGH

be

can

no

se¬

15 EXCHANGE PLACE

634 SO. SPRING ST.

JERSEY CITY

LOS ANGELES

and no'

progress

.

,

fall

into

each

class.

Bessemer

&

Lake Erie, Virginian, Chesapeake
& Ohio, Missabe & Iron Range,
Who '

4.

charge

of

has

now

.railroad

.

complete

reorganiza¬

tions?

'•?

financing

is designed to
consummate a plan of integration
and simplification whereby South¬
western

Chicago & Illinois Midland.
;

The

:'77

•

Public

Co.

Service

will

acquire the assets of Community
Power and Light Co. and General
Public

Utilities,

Inc.,

including

increased

sues

mained

.

declined.

price.

so

when

decrease.

a

issues

29

without

progress

re¬

opportunity

and initiative

26

"When

this

few issues decline

January

showed
44

84 only

vesting

in

you

than

issues

to

to

come

problem

times I know of

The best previous showing

in

was-

price,

unchanged and
During no month

did

year

in

tell

the

during

in¬

these

better advice

no

to

you

diversify

youj* investments and to keep a
flexible and open mind."

During July

declined.

change the properties of Texas-New Mexico
"Of
In common with a
equal significance is the
Co.
and
Gulf
Public
goodly num¬
plan after they have submitted Utilities
ber of other investment
The company will fact that all classifications showed
company
it?
Can they disapprove it?
If Service Co.
acquire
from
Continental improvement during August. Only managers and sponsors, Mr. Put¬
they disapprove it can they send also
nam
has
reason to be
Gas & Electric Corp. the prop¬ during January had such an over¬
hopeful. The
it back with suggestions?
Panblandle Power & all improvement previously taken Fund which bears his name now
6.
What are the three main ertiesof
has
place this year.
7
outstanding the largest num¬
steps in present day railroad re¬ Light Co., Cimarron Utilities Co.
"By cities results for the month ber of shares in its history, an in¬
and Guymon Gas Co.
organizations?
V
/ /
showed increases of 1.8% in New crease of 28% over a year ago.
For
the
benefit
of
the
first
7. What effect upon payment of
York issues, 1.3% in Philadelphia The number of individuals and in¬
accumulated interest of bankrupt mortgage bonds being offered, the
stitutions owning shares of the
roads has the latest ruling of the company, has agreed to provide issues, -2.6% in Pittsburgh issues,

the

5. Can

\

courts

>

gests Hare's, Ltd. in

a

insurance stocks.

on

stocks

in

this

new

folder

Time-tested

category, "in addi¬

tion to their

outstanding dividend
record, have consistently provided
greater

growth

of

have the stocks
trial

Capital

than
indus¬
best of

of leading

companies

and

the

bonds." / /
For proof of this statement the

folder

five

presents

comparisons

.

.

.

covering periods
to1

25

years

ranging from 5
between 1917 and

.

*

.

Department; (now be¬
fore the Circuit Court on appeal)
Treasury

improvement fund > commenc¬

an

0.4%

in

issues

Boston

and

0.9%

for
a
group
of
miscellaneous
in i l948, and a maintenance
issues.. ;,..7/77 ,///■. -/v 7/7''7/.7
made regarding unpaid back in¬ fund beginning in 1943.
Through
7 "Year-to-date results by cities
terest of such roads as the New operation
of
the
improvement
show the following advances: Bos¬
Haven, the Milwaukee and other fund bonds may be purchased or
ton issues 3.4%, Philadelphia is¬
redeemed at prices ranging from
similar bankrupt carriers?
sues
,11,5%,
New York
issues
8. Of the eight reorganization 106.60 to 100.40.
Otherwise the
1.8%, Pittsburgh issues 8% and a
plans so far approved, about what bonds are subject to redemption
group 7 of
miscellaneous
issues
percentage of the new securities at prices ranging from 111 to
13.2%;,;;/,,/7
7,7* 7 7,.,;./;,
have
gone
to
first
mortgage 100.50. :7:7,7V,;,-7;7; v/7;/
I; /In the classification by type of
bonds? Between 10 and 20%—20
The preferred stock is redeem¬
hotel ..issues are 8.4%
and 30%—40%—50%?
able at any time at a price of $110 building

j: 9. How much to income bonds?
1940

•10. In

did

However, their wage

the

for

bill

•

business that they

97%%-'of the
did in 1930.

railroads

the

period

down

was.

$600,000,000. In the former period
they employed close to 2,000,000
men; about, how many did they
employ in 1940?
•

ing

Geo. As Saxton Dies

St., New York City, died suddenly
of a heart attack while swimming
at Beach Haven,
years

i

Saxton

Mr.

played
track

France

shot-putter

He

team.

to

later

1922

study

being

Paris branch

Trust

was

in

Harvard

was

on

the

graduated
and went

the

at

Sor-

employed

in

of the Bankers

Company.

1926 he

he

where

varsity'.football

the

on

bonne,
the

41

graduate of

a

was

University,

team and was a

to

was

old.

Harvard

from

N; J. He

From

1924

to

Professor of Romance

languages at Grove City College.
He entered the bond business in
1926,

founding

G.

A.

Saxton

Co., Inc., in 1934.




securities

of

and

nies under the

Inc., 70 Pine

&

their

1941

close

and

have

,

Cimmaron

George A. Saxton, President of

G. A. Saxton & Co.,

share.

Net

of
'

•

"above

' ; : 7":
.7'7.";7'"S":7 an
average price of $349 compared
proceeds from the sale of
to $322 on Dec. 31,,1941.
Office
the securities will be applied ,to
buildings are *.,5.4 %~ ahead for the
the
redemption or, payment of
year,, theatre issues have increased
outstanding obligations of South-"
;5.9%7 a group of miscellaneous
western, Community and Geneva!
issues, have advanced 4.3%, apart¬
and, among other things,/to thement.isk^ show a 2.2% increase.
retirement of certain subsidiary
obligations - and ■ to the - purchase •Although apartment hotels gained
per

the

Panhandle,

Guymon

compa¬

integration plan/7':-

Associated with

Dillon,- Read •&

Co in the

offering are: E. H. Rol¬
lins & Sons, Inc.; A. C. Allyn and
Co.; Inc.; Auchincloss,. Parker &
Redpath; Bacon, Whipple & Co.;
Baker, Weeks & Harden; Bear,
Stearns & Co.; A. G. Becker &

are/still off 6.8% for -the year,"

7/ Copies: pf- report

Alex.
Slocumb

Brown
&

&

Co.; H.

Sons.;

M.

Brush,
Byllesby

may

be

had

request from Amott, Baker

upon

Co.,

York

Inc./ 150 Broadway, New

H. M.

May Dies Suddenly

Herbert M.

New York

May, head of Her¬

Co., 11 Broadway,

City, died at his home

heart attack at the age of 51.

a

Mr.

May

was

a

graduate of Har¬

vard University.
He was a pioDoolittle,
Roth &
Schoellkopf;
Eastman, Dillon & Co.; Estabrook ineer and founder of the New
& Co.; Goldman,
Sachs & Co.; York Security Dealers Associa¬
Graham, Parsons & Co.; Gran- tion and was an active member
bery, Marache & Lord; Hallgarten
of the Security Traders Associa¬
& Co.
•

Harriman

Ripley. &

Co.,

Inc.;

tion."

1942

compared

as

totaled

with

1,950

In

each

being

14.8%

in the most favorable
■'

1

;!<

■

Sept.

10

issue

of

current

the

greater,
the low¬

!j:

(Continued

warns

Calvin

of

page

on

greater

case.

:;s

Ahead"

issue

gain,

was

greater in
and
143.6%

instance

est

"Changes

Corporation's

period

from insurance stocks

v

National Securities & Research

the

Bullock's

976)

f'Investment
to

a

Timing" is devoted
thorough and scholarly analy¬
the "Economic

sis of

of

Aspects

the

and

Market,

President's

Mes-

age."

From the conclusions

sented

we

I

pre¬

quote the following:

"The President

finally took the
horns, and dealt with
both the weak spots in previous
'anti-inflation'
programs.
One
way or another, appreciably better
stabilization of farm prices and
bull by the

Selected
£
American

•of wages should be attained, pre¬

inow
the

and

the

after

\ Shares Inc.

Within

war.

left

by

eventually

be

limited,

taxes,
earnings
should
be
helped rather than hindered; and
area

corporate

should

nized

bert M. May &

of

1,

twelve months before.

this

City.,.

and

Co., Inc.; Central Republic Co.
(Incorp.); Davis, Skaggs & Co.;

2,450

Sept.

as

1

' •

recog¬

Send for

market

favorable

a

factor."

•

Co., Inc.; Blyth & Co., Inc.; Bodell
Co., Inc.; Boettcher and Co. 7 ;

of

as

senting the unfavorable and dis¬
rupting effects of runaway costs
in the August period they on the expense of the war and on
the domestic economy generally,

1.2%

&

Fund

1942.

/'"'' 7.'

■■

New

Portfolio changes in August for
First

«!

National Income Series and
Mutual Trust Fund were
as

follows:

Income Series—Erie

Pfd.

Gulf

and

Pfd.

Trust

reported

RR. "A"

Mobile &

5%

Mutual

Fund—Bethlehem

Steel,

to

Mfg.,
Lockheed,
Snerrv,
United Aircraft, Pullman. South¬
ern
Pacific, Southern
Railway,

Eaton

Swift Intern a cional and American
Woolen 7% Pfd.
*

National

Wholesale

SELECTED'
Investments
Suite
J3S

South

Company)

2047

LaSalle

Chicago
C:

"Let's Look at the

Distributors

Ohio $5

First

Additions

*

Prospectus

Additions to National

*

Record," sug¬

Street

f

THE COMMERCIAL & FINANCIAL CHRONICLE

976

Thursday, September 17,1942

New York

FLORIDA

second with

was

980,332,000,

and

behind with

$6,944,119,000.

California

$6,-

close

tained
total

Though

authorities

many

advocate

ernment

on gov¬

in

decrease

a

units of local government
of

for sake
efficiency and economy, only a
of

reductions

few

made

were

importance

the

during

last

10

and there still are 165,000

years,

units

individual

United

the

in

States in addition to the states and

the Federal Government.
This is the

finding of a survey,

published by Public Administra¬
tion Service last week, showing a
reduction of only 10,369 units of
government between 1931, when
the total was 175,418, and, 1941.
Both

the

were

made by William Anderson,

1931

1941

and

surveys

professor of political science, Uni¬
versity of Minnesota.
the

During

period

10-year
decreased

districts

school

6.9%;
towns and townships 6-.2%; special
districts other than schools 2.3%;
incorporated places, 0.6%; coun¬
ties, 0.1%. Some of the difference
is due to elimination of errors in

the first count, Mr.
Economic
and

drouth

depression,

population declines helped
for

account

resident

ing

in

units, defined as;

population

defined

a

reduction

the

governmental
"a

Anderson said.

occupy¬

that

area

has

a

organization
and governing body, a separate
authorized

legally

legal identity, the

..

substantial

a

a

pro¬

services

.

degree

automony including
to raise at least

to

power

vide certain public
and

.

.

of

districts

School

own

many

reduced

were

through
consolidation;
special districts ceased to

function
finance

work—to

their

because
ditch

a

or

road—was

a

finished and the debt paid. Among
deliberate
was

actions

elimination

by legislatures

of

townships in
poor districts
in

and

Oklahoma

by

only

three—two in Georgia and one in
Louisiana.

The Georgia reduction

from

resulted

actual

consolida¬

while Louisiana's decrease
resulted from absorption of the
New Orleans parish government
imto the city government.
Some
increases
were
brought
about in special districts, through
creation of public housing author¬

tions,

and

ities

soil

conservation

dis¬

Despite
for

71.7%

make

Towns

9.8%;

For

special

for

and

every

land

area.

one

every

18

districts

5%; counties,

country

the

whole there is
ernment

survey

incorporated

«ther than school,

1.8%.

account
govern¬

and townships

11.5%;

up

places

districts

of all local
units,
the

mental
showed.

decline since

large

a

school,

as

a

unit of gov¬

800

square

people

miles

of

Illinois tops the nation

with 15,£29
local
governmental
units.
Next are Kansas, 11,206; Missouri,
15,992;
Minnesota,
10,400;
Wis¬
consin, 9,514.
Ten states have
more
than 7,000 units; only 13
kave fewer than 500 units each.

buyers before

a

transactions

in

"well

are
or

known

all

to

securities

trade could be

Our
da

long experience in handling Flori¬
issue*

municipal
to

them

In the opinion of attorneys the
proposed rule would create con¬
fusion in transactions in state and

municipal securities.
ther contended

rule

would

It

fur¬

was

that the proposed

be

encroachment

an

the power of states and their
political subdivisions to finance
upon

their

;

the hardest hit by ra¬
Some tax-loss selling in
revenue bonds may develop dur¬
ing the closing months of the year.

had

been

requested

by wartime.:

the

industry

suggest some substitute, yet

may

effective

which

rule

protect

investors

quently

charged

who

prices

curities which

bear

able

to

relation

While

gasoline

se¬

used for

reason*

the

existing

market."

The
almost

municipal bond market is
entirely unlisted, a fact

which

makes

quotations
the

as

for

The proposed SEC

rule

would

require

dealers, before executing

the

a

sides

matter

highway bond service

on

$1,803,979,000 of such indebt¬

outstanding on Jan, 1, last,
by far the greater part has been
expended on new highway con¬
struction.
Some of the States al¬
taking advantage of the
curtailed highway construction to
strengthen the financial status of
are

their bonds.

an

ing bid and asked quotation. It is
out in objection to this

pointed

proposal that there
of

hundreds

are

municipal issues which rarely
find

to

trade and

a
a

attempt

an

bid

consensus

or

of¬

fered

qoutation would frequently
require effort and expense not
warranted

by

the

prospective

dealer profit.

Toll Revenue

Dip

Found General
Comparison
of
revenues
re¬
by eight different bridge

ceived
and

road

authorities,

based

the

reducing this indebtedness
and there

are

local

governments
funds

reserve
as

a

the

at

hedge against

a

Reed, municipal consultant of
City, told delegates to

New York

the annual conference of the Gov¬
ernmental

Research

at

action

be

would

in

di¬

competition with the Federal
Government, which should have
call

the

on

nation's

tax

re¬

dark

future

governments was

for

municipal
foreseen by Dr.

Reed, in contrast to the forecast
increasing revenues made at
the previous day's session by Dr.
Mabel L. Walker, director of the
tax institute! of the University of
speakers

ference

taxes

property
in

ishing

lower

to

of

because

ceilings,

creases

con¬

Reed's

Dr.

pointing

statement,
rent

at the

supported

anticipated

fire

losses

from

revenues

and

the

To

in¬

passenger

the

Pennsylvania Turn¬
pike increased 26% in July, while
units of the Port of New York Au¬

showed

Tunnel

only

small

revenues.

in

The Hol¬

had

July

and

the

Some
bonds

of

students

believe

that

to

the

war

year

revenue

greater

a

part of the decline in
due

13.6%
a

Washington

George
Bridge 11% less.
ago

de¬

State Controller.
The aggregate

has

the

State

law

merchant

pay

stringent
while

affected by
Bonds

of

been

long

a

more

rationing,

traffic

these

could

be

are

declines

terest.

York

Islands

has

so

far this year.

been

This

forced
was

Bridge

to

the

To date,
omit

in¬

Thousand

on

the

the

voters

of

Baltimore, Md.,
will pass on the proposed issuance
of $32,000,000 water supply bonds.

Reduces Debt

for

purchasers,

such

Federal income tax

a

sales

purposes.

A War Production Board tabula¬

showed
got

recently

more

that

eight

than half the $80,-

338,688,000 poured into major war
supply and plant contracts from
up

start

of- the

defense

program

The

biggest share went to Mich¬
igan, where the motor industry's
conversion

to

armament

tion contributed to

Authority, which $7,417,140,000.

a

$75,000,000
has
been
off the gross bonded in¬

produc¬

state total of

of this

ary

the

offering

required
here be¬

included

is

general reader interest.-

In Janu¬

the county awarded bonds

year

Harris

Chicago.

Trust

&

Numerous

Savings

other

Bank

bids

of

were

re¬

ceived,

the second best being submitted by
Ilalsey, Stuart & Co., Inc.

September

18"...

$3,000,000 Buffalo, N. Y.
City

bonds

awarded

In

syndicate headed by
of

York..

New

York,

The

and

May,

Smith,

1941,

to

Barney &

National

associates,

a

Co.

Bank of

City

entered

the

*"

bid.

runner-up

,

$1,140,000 Cuyahoga Co., Ohio
Last July 17, the county awarded an Issue
to a syndicate headed by the Ohio Co. of

Columbus, whose bid topped that submitted
by Blyth & Co., Inc., .and associates.

September 22

June,

the

1941,

issue

an

Francisco.

above

to

submitted

was

and

city

Dean

county

Witter &

The only other bid

by

the

Co.

Bank

-'

■

of

for the
of
r

'

A

-

1

September^S *

$8,286,000

Sletro.

Boston

;

Dist.

Mass.
This

district

to

syndicate

a

curities

awarded

that

bonds

headed

Corp.

topped

of

entered

last

the

by

New

York,

October

Union

Se¬

whose

bid

the First
Corporation, and associates.".
by

•<-

Boston
>

„

>

October 1

.■*,<!■'•'

-

$705,000 Muskingum Watershed
Conserv. Dist., Ohio
This

district sold an issue in Sept., 1940,
Merrill, Turben & Co., and McDonald,
Coolidge & Co., both of Cincinnati, jointly.;
Stranahan, Harris & Co., Inc., and as¬

sociates,

out

came

second

best.

Investment Trusts
(Continued from page 975)
"Bulletin."
E.

I.

du

that "The

Quoting Dr. Stine of
Pont, it is pointed but
war is
compressing into

the space of months developments
which might have taken half a

century to realize if necessity had
not

forced

list of

the

amazing

pace."

of

prospects

corporations.

many

The trend is
It

economic pattern

our

well underway.
constant watching
by

bears

those who

now

evaluate the prob¬

can

.

.

In

.

short, here is

well-managed
pany

can

investment

stood at $517,469,000. and in June

$571,145,300.

ife

not

Government

*

#

important

#

effect

of

pro¬

on corporate earnings
yet too widely recognized is

discussed

"Brevits."
from

in

the

current

issue

of

Distributors'

The bulletin concludes:
all

this

boils

down

to

the

standpoint of common
stock ownership is well expressed
in the following words of a well-

.......

Alberta

An

"What

Alberta Again

The

com¬

help solve for the in¬

vestor."

Massachusetts

bonded debt total

an¬

other problem of the day which a

1941,

Defaults

and

materially alter the pro¬
outlook
and
earnings

posed taxes

gross

partial

"It is obvious that all this may
result in drastic changes in the

cording to the Philadelphia Bu¬
of Municipal Research.
The
present
figure
is
$488,365,600,
compared with $506,660,000 at the
start of 1942. At the beginning of
the

A

new processes

products is given.

new

reau

of 1934, it was

to the end of June.

of

involved.

Almost

lopped

of the City of Phila¬
delphia in the last eight years, ac¬

80-BilIion War Contracts

this

amount
cause

the

under

able effects of such changes upon
the securities of the corporations

debtedness

Eight States Halve

slightly

duction

3,

vidual

tax is not deductible from income

Although

make-up of

At the general election on Nov.

collected

Philadelphia

the

war.

authorities

exempt and have bad sizable

one

tax

^

September 17 (Today)

and will

-

amount of his gross sales and then
in turn collect the tax from indi¬

revenues

now

gasoline

general

the

issues

,

Baltimore Bond

However, if
requires that the

time to

new

to

Election

against and

of

prospect

some

of

amount

Hawaii, Honolulu.

County

Federal income tax payments only
when State law requires that they
assessed

demands

the

$444,000 Onondaga Co., N. Y,

bonds

Refunding Plan

tax payments are deductible from

from the individual.

for

coming to market will be small.

San

amount of $1,200,000 as eligible for
meeting in executive session last
exchange for new refunding bonds,
Saturday adopted the proposal of
according to Lehman Brothers and
Senator
Brown
(Dem.,
Mich.), the Chase National
Bank, refund¬
which would permit individuals to
ing agents for the county. It was
deduct from income, the amount
stated that the supplement to the
of sales taxes paid to States or
plan has been approved by the
local

be

the

by

the

awarded

County Adds

.

on

near

$500,000 Honolulu, Hawaii

principal amount
of refunding bonds to be issued
remains unchanged at $5,660,000
as originally
authorized.
Of the
purposes
are
concerned.
Under
Declines for the heavy traffic
outstanding bonds authorized to
present law, residents of about
summer months ranged from 20 to
be refunded, 78% have been ex¬
nine States are permitted to de¬
61%, with the declines varying
changed since the adoption of the
duct State and local sales tax pay¬
according to the amount of luxury
plan on July 27.
The refunding
ments from income for the pur¬
traffic involved. The smallest de¬
bonds remaining to be issued in
cline was shown by the Delaware poses of computing Federal in¬ exchange
mature from 1954 to
come
taxes.
However, in other 1957 inclusive, and they will bear
River Bridge, crossing from New
States, sales tax laws
are
so
interest at the same rate borne by
Jersey to Pennsylvania, which re¬
drafted that individuals are not
the outstanding bonds until their
ported a loss of 20.2% in July
tolls. Largest decrease was shown permitted to reduce their income maturity
date ,and
thereafter
tax payments through deduction
either at 2.90 or 3%, according to
by the Thousand Islands Bridge
of the amount paid in State sales
the maturity of the outstanding
Authority with a falling off of
taxes.
61% in July.
bonds.
In broad general terms, sales
Traffic
other
than
cars

the

expenditures

policies,

gasoline

has adopted a
supplement to its refunding plan
State Sales Taxes Ruled
authorizing the acceptance of cer¬
Deductible from Federal Tax tain additional bonds maturing in
1946
and
1947
in
the principal
The Senate Finance Committee

The proposal of Senator Brown
figures, shows a is
designed to place the sales taxes
general falling off in tolls due to
of all States on an equal basis as
rationing, it was revealed refar as deductions for income tax
cently.
-;v

previous

in

award

naturally is that for
come

In

Nassau

last

van¬

and motor vehicle levies.

Nassau

government units.

necessities

New

Pennsylvania.
Other

of

the

improvements held to bare

for

will adopt a similar program.

on

for

With

war-time

to

sources," he declared.
A

and

Association

rect

first

bidder

also appended.

are

scheduled

Princeton, N. J., last week.
"Such

up

names

(Ed. Note—Very few municipal
issues of
major size are

•

'

The

the

ex¬

come

bond

local

and

now

indications others

:

future.

for

issue sold

to

are

successful

excluded.

pluses

available

.

which

near

future.

;

,

Of the forty-one States having

posal were ouestioned recentlv by




been

highway bonds outstanding on
Jan.
1, last, it is understood
eight have adopted a policy of

Tlhomson, Wood & Hoffman, New
as

has

revenues

or¬

tax

municipal bond attorneys,

tax

der, to give the customer the rul¬

importance to the trade.
the SEC pro¬

Legal aspects of

a

edness

of ready

between sections of

country.

disclosure

irregularity

;"Times,"
of last Tuesday.
;
; I
substantial part of the

in its issue

fre¬

for

no

torializes the New York

"would
are

in the

should not attempt to create sur¬

H.

motor

fruitful in developing constructive the States
having highway bonds
suggestions for the proposed rule. outstanding to -accumulate funds
In the alternative, the com¬
to pay off this
indebtedness, edi¬

tion

on

restrictions ">'• in

J the over-the- travel, the savings effected by the
industry, the SEC said it sharp curtailment of highway con¬
hoped the delay would be struction should enable many of

stated,

and

im¬

more

over—short term issues

or

cluded),

post-war depression,'.' Dr. Thomas

reve¬

counter

mission

000

$50,000,000,000

were

present time

Despite the reduction in

spokesmen V for
was

about

Hedging

"State

Highway Bond

•

which

We list herewith the

portant municipal offerings ($500,-

a

Contract awards of less

foodstuffs

Fund

f
■'
/
nues resulting from the decline in
z1-.-,
granting the additional time, gasoline consumption and other

In

since it excluded

Cities Warned On

Retirement Foreseen

essential; government funcr

tions.

to offer halved interest rates. This

latest

Scheduled

for

been

tioning.

State

in

As in the

tures, the Province will continue

runner-up
has

payable

Major Sales

total

than $50,000 and all awards for

be readily obtained."

can

of the

commitments

purposes,

figure

I CHICAGO ILLINOIS

concerning which ample infor¬

mation

representative

government

higher.

states

action

not

obligation.

no

bonds,

previous defaulted deben¬

The tabulation, however, was

glad

inquiry * regarding

any

1ST NAT SANK iLOC >

however, in the event of

of grave

these

be

RECrummer S. Company

investors

Some further falling off in lux¬
ury traffic may be experienced,

against hasty

with

will

various items which would have

ipal fraternity last week.
Hear¬
ings on this rule had been ex¬
pected to get under way on Tues¬
day, but they were postponed to
Oct. 15, because of the virile oppo¬
all

comprehensive

a

We

brought the national total to

experienced with truck, bus and
defense tolls holding up well.

from

at

us

familiarity

war

the main topic
of conversation among the munic¬

manifested

of

bonds.

answer

was

sition

gives

background

secur¬

less tolls from trucks than

dealer of the bid and asked prices
of
municipal bonds as well as

consummated,

municipal

ities issued by sovereign states or
their political subdivisions which

land

The SEC disclosure rule, which
would necessitate disclosure by a

over-the-counter

of

clines in truck

SEC Disclosure Rule

to

lations

thority

Hearings Postponed On

other

York

Caldwell, Marshall,
Trimble
&
Mitchell,
has
also
questioned both the legality and
necessity of the regulation, con¬
tending there is no need for regu¬

latest

tricts.

1931,

New

firm,

figure in

Pennsylvania.
;
Counties
decreased
„

bond

power

.

part of its

revenue."

mainly

Another

of

omission brought to $25,Pennsylvania, $4,629,240,000; New 756,430 the total of provincial
Jersey, $4,407,079,000; Connecti¬ bonds defaulted since April
1,
Total bonded indebtedness
cut, '$3,252,734,000; and Illinois, 1936.
of the Province is $127,953,000.
$3,243,123,000.

MUNICIPAL BONDS

previously noted in these columns.

major pieces of the grand
were:
Ohio, $5,321,506,000;

5%

Canada and New York.
case

The other five states which ob¬

FLORIDA

$2,948,000

de¬

faulted Tuesday on a maturity of

known financial commentator:
"

'Adoption

of

the

Senate

Fi-

.Volume 156

Number 4108

THE COMMERCIAL &
FINANCIAL

CHRONICLE
977

Committee

nance

recommenda¬

tions would virtually
solidify the
current dividend rates of the over¬

whelming

majority

of

American industrials.
that the

mean

7%

to 12%

stock

list

*

yields of

scattered all

time when

a

dividend

were

major

bond

This announcement is not

the

over

being clinched

at

an

offer oj securities jor sale

solicitation oj

or a

offer to buy securities.

an

New Issues

highest-grade bonds

yields

has

pronounced in
business.'"

been

never

September 15, 1942

so

Southwestern Public Service
Company

period of active

a

*

*

*

l

Another hopeful note is sounded
the Keystone Corp.'s latest
issue of "Keynotes."
After list¬

$20,000,000 First Mortgage and Collateral Trust Bonds, 4% Series due

by

Axis

conquests

and

Due

$6,000,000 Serial Notes, 2lA% and 3%

"By contrast with the dark days
the present justifies con¬

Due $500,000 each December 1 from 1943 to
1953,

....

fidence.

long

The

*.

.

stock market,
barometer, ap¬

accurate

an

be

inclusive, and $500,000

June 1,1954

on

60,000 Shares 6V2% Cumulative Preferred Stock

.
.

to have passed its low and
immune to bad news."
It

pears

1972

May 1,1972

earlier

Allied defeats, the bulletin states:

to

i

still yielding less than
2%%.
disparity between stock and

were

The

ing

>

That would

;

•

.

Par value $100 per share

continues:
"In

the

earnings

last

the

time

rose

steadily from the end of 1917,
the weight of superior
produc¬

as

tion

and

made

inexhaustible

itself felt.

Well

^

■'

Power and Light Company and

yX-

yield of 6.75%,

*

*

«

j

.

a

folder

new

"C"

f

\

#

$100

"All-Out War Pro¬
duction Makes Bonds Attractive."
The latest issue of "The Union
Due

Dealer" makes easy
reading.
"A
Parable of the Market Place" is
the caption and the
point it drives
home is a timely one
today.
-

wamm

Weekly Firm Changes
announced

Stock

;

•

■

' V'

'

w

'■

.

'•

\>

Prices:

-

•

■"

■

j, .»

•.

:

••••

■:

■

■

.

'

*-•1

Interest

Price

1944

V/z

101.65

1945

2%

101.56

2Vi

Due
1947

•

Vv

Price

Due

V/2%

100.49%

1951

3

1948

3
3

1950

Interest

rate

1949

y

101.21

Plus accrued interest

-

3

rate

102.29

1952

3

101.30

1953

3

100.00

1954

3

the Bonds and Serial Notes and
dividends
••
'
to the date of
delivery.

oil

7-

Exchange
following

the

'

Mortgage and Collateral Trust Bonds,

2Vi%' 101.23%

1946

^

The New York

•.••'rv

7../ '.

it

i

rate

1943

New York Stock Exchange

has

'

^f

As shown below for Serial
Notes
Interest

...

•

Utilities, Inc.

.

share for 6V2% Cumulative Preferred Stock
$5 per share for Common Stock

per

entitled

■

.

Community

4% Series due 1972

❖

Union Bond Fund

on

:*•

.

.

107V2% for First

common

Lord, Abbett has just published

-

■■■

■7-

Precedent, price

and
prospects
make
stocks appear attractive."

-

stockholders of

the

by the
shows a

Industrials,

*

common

stockholders of General Public

common

supplies

below

share

per

* Warrants to subscribe for such shares have been issued
to

/

bottom of its normal
buying range,
the market, as recorded

Dow-Jones

Par value $1

;

entered the war—stock
prices

we

\

185,000 Shares Common Stock*

war—although

declined from

on

Price

%

99.20%
98.26

:

97.66

;

97.09

the Preferred Stock

weekly firm changes:

Hugh ,.D.

Auchincloss

and

C.

-•4 i

Copies of the prospectus,

Russell

MacGregor, general part-^
Auchincloss, Parker &
Redpath, Washington, D. C., be¬
limited

came

June
<•

partners,

i

:

in

ners

may

in the prospectus)

.

be obtained from such oj the undersigned (who are
among the underwriters named
as may Legally offer these securities
under applicable securities
laws.

effective

1.

William

•:

G.

Baker, Jr., general
Baker, Watts & Co.,
Baltimore,1 Md., will become a
limited partner, effective Oct. 1.
Arthur D; Weekes retired

partnership
New York

in

Lewis W. Feick

City,

Lester

as

&

,*>;•

~

.

Incorporated

..

.7V7';- 7..'V/-./7 V.

■{

E. H. Rollins & Sons

i'-''yd'' ,;:;Y■';

V

.

'.,7

Dillon, Read & Co.
Yv-»-v;Vi

7: 77" ■■iX: oi'J!

■

"

BIyth & Co., Inc.,

•

f"

Vv.. >i-

Kidder, Peabody & Co.

member

of

»

'

V

./V

Harriman Ripley & Co.

"y,

'

Stone & Webster and Blodget

Vv.7

•

7 'VV.:

;.7

.

Incorporated

'

V

"
.

"...

^

V Smith, Barney & Co.
'■=•

Union Securities Corporation

Incorporated

...

White, Weld & Co.

>■:

-

:

Bodeil & Co., Inc.

Co., New

A. C. Allyn and

the

New York Stock

Exchange, with¬
drew from partnership in Arthur
Wiesenberger & Co., New York
City.
The firm continues as an
Exchange member.
Hyman & Co., New York City,

rd

'•*.'•

•

Rauscher, Pierce & Co., Inc.

The Milwaukee Company

of Aug. 31.

Talbot,

:7V,;,;,,

V'

.

Xy

.

;

fromi

withdrew from

Riter

■-,

,/

V':

Chauncey & Co.,1
as of July 31.

City,

partnership in
York

*

in

partner

-r../

Company

Spencer Trask & Co.

Incorporated

;

■.

Eastman, Dillon & Co.

Whitaker & Company

Paine, Webber, Jackson & Curtis

v-• v'

.

•

was

dissolved

William
the

New

J.

as of Sept.
8.
Baroni, member

York

Stock

of

Exchange,

Southeastern

Securities Corpora¬
tion, 1105 Graham Building, Jack¬
sonville, Fla., Donald Buchanan

and

tali Of

Treasury
Offering

Bill

17.

weeks

For

the

past

several

the

Treasury has been re¬
ceiving about $100,000,000 in "new
money" from the bill offerings

less

than1 $1,000

may

convert

to

regular membership by paying the
difference between the amount of

Brayshaw, John William Muskoff,
died on Sept. 8.
;
;
and Margaret
his initiation fee and the
Daly Snyder, offi¬
present
;!; ■■■'
■—uam—
maturities'
cers.'"*
'•
"
Secretary of the Treasury Mor- since
approximated regular
membership fee of $1,000.
■jdj
SEC Applications For
Aug. 10, 1942—Ross, Browne & genthau announced on Sept. 14 $250,000,000. However, this week, Present market is $500 bid, of¬
when the third quarter income tax
that the tenders for
fered at $800.
$400,000,000,
Broker-Dealer Registry Fleming, 919 North Michigan Ave¬ or
thereabouts, of 91-day Treasury installments came due, the net
nue, Chicago, 111., Walter S.
Ross, bills to
result
is
a
The following applications for Aldis
reduction
of
be dated Sept., 16 and to
Jerome Browne, James Rob¬
$200,000,000 in
.

,

.

•

-

——:

registration
ers were

and

as

brokers

and

deal¬

made with the Securities

Exchange Commission

on

the

dates indicated:

Aug.

3,

ert

Sterling, and Michael Canta-

cuzene,

partners, Thomas F. Flem¬
ing having withdrawn; William H.
Saul,
1818
East
29th
Street,

1942—Whiting Invest¬ Brooklyn, N. Y., a
sole
pro¬
ment Company, 910 Trinity Build¬
prietorship.
ing, Fort Worth, Tex., Sam Ed¬
Aug. 12, 1942—Charles James
mund Whiting, sole proprietor.
Curlette, 1325 Boardwalk, Atlantic
Aug. 7, 1942—Theodore Gold¬ City, N. J., a sole
proprietorship.
man, 110 West 43d Street, New
Aug. 15, 1942—C. S. Brown &
York, N. Y., a sole proprietorship; Co., 1180 East 63d
Street, Chi¬
William J. Johnston, 26 Broad¬
cago, 111., Carman S. Brown, for¬
way, New York, N. Y., a sole pro¬ merly
proprietor, and Thomas J.
prietorship.
Cullerton, partners; R. V. Klein
Aug.
8,
1942—J.
L.
Baker, Co., 6 Keewayden -Road, Law¬
R. F. D. No. 1, Box 412, Jackson¬
rence, L. L, N. Y., Rudolph V.
ville, Fla., a sole proprietorship; Klein, sole proprietor.
Hamilton & Sherman, 530 West
■■imifc'la
6th Street, Los
Angeles, Calif.,
.

•

"

■■

■

mature

16, which were of¬
Sept. 11, were opened
Sept. 14 at the Federal Reserve

fered
on

Dec.

on

details

of

this issue

t

are

Thomas

Raymond
Hall

Peninsular

Hamilton

Sherman,

and

Total applied
for_^__$882,351,000
Total accepted

partners;

State

Company, 412
West Genesee Avenue,
Saginaw,
Mich., Joseph D. Frost, formerly
President, now sole • proprietor;




Harry

M.

Amos, Cashier of
Bioren &
Co., 1508 Walnut St.,
Philadelphia, is celebrating his

50th
of

anniversary

that firm.

as

an

employee

will

is

proximately 0.297 %.
Low—99.906

ap¬

equivalent
rate approximately 0.369%.
(Approximately 82%
of
the
bid

for

at

the

low

price

accepted.)

The Treasury increased the

of¬

fering of bills to $400,000,000 from
the $350,000,000 level of recent
weeks in view of the fact that two
similar
issues of bills—one for

$300,993,000

and

the

$301,249,000—matured

York

other
on

of

the

for

Sept. 16

a

Curb

Exchange

was

little

less

two

than

months

ago providing for disposal
the. .trustee of memberships

by

Average pride—99.907

amount

New

amended

rate

constitution

;

announced

total

of

on

money

Exchange

Sept.

2 that
borrowed as

ported by Stock Exchange
ber firms
ness

:—

Borrowings Lower

The New York Stock

of the

as

Aug. 31

close

the
re¬

mem¬

of busi¬

was

$325,764,816, a
decrease of $19,868,609 from the
revised
July 31 total of $345,633,425.
;
,

ap¬

*,

equivalent

coming due

N. Y. Curb Seat Sales
the

NYSE

five

$100,000,000

wmmm

Since

proximately 0.372%.

was

realize

the

$400,-

$300,000,000.

402,059,000
Range of accepted bids (except¬
ing one tender of $25,000):
High—99.925 equivalent rate

If

next

weekly in "new money" since the

-----

■1—'—

Amos With Bioren 50 Yrs.

it

amount of similar bills

follows:-,. V;-e'

ifcn"w

Harold

as

bills.

to offer

000,000 of bills for the
weeks

banks.
The

outstanding
Treasury continues

transferred to him, four such sales
have occurred, it is disclosed. Also

during

this

members

period

six

associate

exercised

the

privilege

extended to them of buying
regu¬
lar memberships without

paving

an

initiation

the

time

paid
the

a

transfer fee

their

fee equal to

oresent

bership
ciate

or

of

$1,000

election
or

who

they

greater than

regular

initiation fee.

member

if at

paid

An
a

mem¬
asso¬

fee of

The

following is the Stock Ex¬
change's announcement:
The

total

of

money

borrowed

from banks, trust companies
other lenders in the United

and

States,
excluding borrowings from other

members

of

national

securities

exchanges reported by New York
Stock Exchange member firms as
of

the close of business
Aug. 31,
1942, aggregated $325,764,816.
The

total

compiled

on

.

of

the

money
same

was

borrowed,

basis, as of
July 31, 1942,
$345,633,425 (revised).

the close of business

"It

NYSE Useful Pari
Of Economic

appropriate here, and

seems

certainly no less than fair, to al¬
lude briefly to that large segment

System

of

population without which-

our

development of our business
and industrial enterprises would

Adopt "Victory Tax"— Nationwide Survey Reveals Public Believes
Insurance Gos. Contribute To National Welfare
Out Corporation Hates

the

(Continued from first page)
gency. The demands of a Nation
at war have imposed tremendous

think that insurance companies meet all just
satisfactorily?
An answer to' these and other interesting questions was given by,
Malcolm Russell, a member of the<j>
—
advertising and publicity depart¬ tory;" 18.5% said the results were
!

excess

responsibilities.
That these re¬ who supplied capital to these en¬ profits tax of 35 to 60% replaced
sponsibilities
have
been
bril¬ terprises. They are, for the most by flat 90% tax, retaining present
liantly discharged is questioned part, men and women of moderate specific exemption of $5,000 in
nowhere. The country accepts this means. They are our thriftiest profits not subject to excess tax.
fact. Mth a new appreciation of citizens — the
real
owners
of Average earnings base revised by
what our great industrial, machine American industry.
Out of their insertion of relief provision. In¬
represents.
earnings they have made invest¬ vested capital base reduced for
''This new attitude toward our ments for their own security and
larger corporations.
industrial
system is well illus¬ for that of their families.
2.
Normal - and
surtaxes
on
trated by a bit of self-analysis re¬
"Their sacrifice, I dare say, has larger corporations increased from
cently indulged in by one impor¬
present..combined total of 31%
been the greatest of any of us who
tant'industry. The point is made
• '"
v.
have remained on the home front. to 40%.
that the formula relied upon to
3. Post-war rebate and debt de¬
They have proudly seen their
save
democracy stems from 'the
duction credit of 10% of the total
properties transformed for war
very elements recently suspect:
amount of excess profits taxes.
purposes, but have been left in
"Do you recall the charge that
4. Capital stock. and declareduncertainty as to what the future
mechanization
of
industry
has
value excess profits taxes elimi¬
may hold for them.
They have
gone too far?
nated.
uncomplainingly seen the earnings
"Do you recall the charge that
5. Over-all limitation of 80% of
of their properties reduced by war
mass production as developed by
net income placed on corporation
taxation, and they are, as this
taxation.
industry in this country was a
process continues, being deprived
dehumanizing influence not in the
6. All
corporations placed on
of part or all of the dividends
calendar year basis for taxation,
public interest?
which, to many of them, represent
"Do you recall the charge that
with notch provision applicable to
a sole means of support.
1942.
industry was spending too much
"These security holders of our
v
Miscellaneous
of the stockholders' money on sci¬
industrial companies ask for no
entific research?

consideration, but they
right to expect equality
of
treatment.
Contrary to the
impression; which many people
world have have, they are not sharing in the
As owners of
make indi¬ war prosperity.

recall the charge that
bigness in industry was destroy¬
ing the democratic way of life so
much cherished in this country?
you

this

in

the

would

"Where
been

to

war

viduals free if it had not been

'suspect'
ingredients
industry?

these

for

of

American
of

"All

have

us

entertained riot so long
ago. This is one of the most grati¬
fying results of our productive
effort. .1 venture the prediction
that when this war has ended, the
demagogue will have lost a

large

part of his stock in trade. I can
also see the more adroit enemies
of our economic system being de¬

ammuni-

prived of much of their
ticn.

a

fhuch impressed by

very

recent statement by Dr. Charles

executive of the
who was dis¬
effects of this war

M.

A.

du

Pont Company,

Stine,

an

cussing some

He pointed
out, with no thought, of course,
of 'indorsing war as a justifiable
means of progress,' that 'the war
is compressing into the space of
months developments which might
our

upon

economy.

taken'us

have

half

realize if necessity

is

taxable.

command.

can

we

and municipal

State

>.

,

the Insurance

•

the

Nation-wide

the

resourcefulness

of

stated

Trade,

that

all those questioned,
85% reported that they thought
insurance companies had contrib¬
uted to the public welfare; almost
10% expressed no opinion. Among
the ways in which insurance com¬

the

apathy, inertia and incompe¬
retarding the war effort.

His letter follows in

They insist that the level of per¬
formance elsewhere be raised to
standard

the

and

forces

set

by

by those who

firing line of the
front. ./■'

the

"Let
these

armed

our

are

on

industrial
.y

in conclusion, that
millions of small security
me

owners

say,

of whom I speak are also

"We view with

part:

anxiety the pro¬

posed changes in proxy rules for
two main reasons.
First, we be¬
that the

lieve

stringent and are unnecessary

too
to

proposed rules are

protect fully the stockholders'
Secondly,
and most

Give

pace.

.

us

that
no

in

the

to

emergency

war

time to needlessly

Urge
it is

experiment

that
when the war is won, 'we will
have at our command ten to a
hundred times what we had be¬
fore in new materials.
.
These
materials are not mere predic¬

that, after months of delay, they
still have no definite picture of

tions, but are actually on the way.
Our
aviation
industry
is

are

.

..

.

.

.

establishing facilities for the man¬
ufacture

in

the

double

one

year

number

of

of almost
planes it

produced during the.37 years of
its
history beginning with the
Wright brothers at Kitty Hawk
and culminating in the
defense
program.
.
.
.
the whole pace
we

are

cars.

now

in

As measured by
of development,

tfie 1960s of motor

Aluminum production

their

what

tax

And they face

obligations

are.

the prospect of still
of the

further uncertainty in view
fact that the tax
now

schedules which

being prepared will soon

have to be rewritten.

"If

there

is

any

be drawn from this
tax

from
need

...

be

seven

times

strength

structure

"These

termining

there

can

been

ment)

ognized by Congress, no less so
than by the taxpayers themselves.
I will not presume

greater by
than it was
of develop¬

enough metal to build three pert knowledge

and distress.

-

yy"yY'

Of all those interviewed

92.7%

by

concept of law is that
be no laxity in enforce¬

would

make it extremely

difficult to conduct business law¬

fully.
The provisions especially
requiring a specific vote of 'Yes'
place of the current practice of
conferring discretionary
powers

in

management, would lead to
endless confusion in the minds of
the investors.
We venture the
upon

the Attorney

Generals of this and

adjoining States to eliminate the

Vz of 1% said they didn't be¬
in insurance.
The median

evil, and he urged that all mem¬
bers endeavor to secure a greater

policyholder
had four
policies
which he purchased through two

degree of cooperation from the
investing public by the observ¬
ance of the following rules:
y

than

lieve

men

Of those carrying insur¬
92% had life insurance, 60%

agents.
ance,

had

form of automobile in¬

some

had fire insurance

52%

surance,

had accident or

and 22.7%

health

with anyone

business

do

Don't

operating from a hotel room or a.:,
private apartment.
yY.
Don't
do
business
with
anydealer who has not an

insurance.

broker

idence

established place of business.

Only 2.6% carried res¬
liability;
2.6%
carried

burglary insurance, and 2.1% car¬
jewelry or fur floaters.

ried

The

disclosed that few

survey

people have any difficulty in re¬
membering the name of the com¬
pany

which issued their life in¬
hand,

other

the

On

surance.

a

their

issued

which

and

jewelry

floaters, residence liability,
fire or burglary insurance. Simi¬

fur

larly, owners of 41% of all poli¬
cies held in the surveyed group
could not tell whether or not
were

they

insured in a stock or a mu¬

tual company.
The

.

importance

the

of

practically
much

no ;• women

life

realized

their
in order to

insurance

husbands should carry

■Y--Y-''-v.

mission.
Don't

check.

question of claims, the
survey brought to light that 40%
of
all
policyholders had made
claims under one or more of their

a

receipt and

a

what

to

as

health, and fire being the three
leaders.-

<

And

of

those

making

'Y

securities without
written agreement"

is

them.;

to

done

be

with,
5

.

..

Don't

sign deeds or transfer
orders covering royalty interests,
without

written

a

to the purpose

is

there

If

any

the

Securities

or

transfer.

a

doubt as

&

a[

Exchange Com-,

New

Oil

the

Pa.,
office

regional

Broadway,
Eastern

to

communicate with-

Philadelphia,

Commission's

asj

agreement

of such

dealer's status,

York

Royalty

at'

City,'

Dealer

Association, 347 Madison Avenue,*
New York.

.

' y'y )

•

Yyy(.
1

1

A. E. Atkinson Suicide

the

policies, automobile, accident and

■

-

,,

Don't give up

give them an adequate income in
the event of his death.
; Y
y.
On

■

•

cash to anyone no
matter how plausible may seem
the reason for preferring cash to a
pay

—BB————

.

any

registered with
the Securities & Exchange Com¬

local

denced by the survey.

with

business

do

dealer who is not

yY

agent as a factor in determining
the
insurance carrier was evi¬

or

Don't

overwhelming

rules, if rigidly applied

notwith¬

carried insurance. Less

of the

how

in

still'

to the royalty-

America,

of

standing the efforts of the Securi¬
ties & Exchange Commission and

i 120

ma¬

a menace

investors

York

New

of

State

the

of

constitute

placed with a particular company
due to the agent's influence.
The survey also disclosed that

rulings

of American business,
carrying out responsibilities.
our

to suggest what
steps should be taken, but it is
the end of next year
imperative
that
we
promptly
in 1939 after 50 years
bring to bear on this problem our
ment, and it will furnish in one best statesmanship, our most ex¬

will

the

(and

our
tax policies has
pointed up, very sharply.
This need, I believe, is fully rec¬

(2) insurance

with the Securities &

Exchange Commission nor quali¬
fied to do business under the laws

threaten
of
our
economic
weakening honest
We believe honesty

securities

characterizes

of de¬

registered

mission,

proposed

jority,

method

better

these

consolation to

from tedious delays,
divided counsel, it is that the
a

the

of

ident,

provides security, protection and
safety; (3): it secures the wellbeing of beneficiaries; and (4) it
is a protection in times of emerr
gency

14, Thos. G. Wylie, Pres-:
stated that so-called free *
salesmen who are neither-

Sept.

More than
43% of all policies purchased were

policing
markets.
But,

ing theory of government

confusion

over

Exchange

1934, nor with the underly¬

Act of

management.

policy,
of

time with the Securities

ers

lance

were:

teaches thrift;

of the members
Royalty Deal¬
Association,
Inc.,
held
on
meeting

a

of the Eastern Oil

of indi¬
(1) insur¬

emphatically,

wish

Rules For Investors
At

have con¬

member the name of the company

.

say

citizens

to

piajority of people could not rer

we

Royalty Ass'n Gives

welfare

the

to

interests.

a

Stine went on to

"Dr.

held

were

vidual

y

keep

Among

tributed

advertising we

our

telling him what we
all know so well—how necessary,
how invaluable and how depend¬
able insurance is."

and, since the Aetna Life Affil¬
iated Companies write practically
all lines of insurance, this survey
embraced
the
whole insurance
field.
y,
f.

panies

In

one.

must

Great care was
accurate sampling

taken to get an

indomitable
spirit
of
its adoption of these rules would
peoplei They do not believe that impede the War effort by placing
these qualities are being used as additional burdens upon American
effectively as they should. They business.
tence

while

and
annual income of

an

fire policy on

automobile policy on his car.

men

among

and

his house and an
Pay-;
ing those premiums out of his
small income is a real sacrifice,;
but he believes that it is a worth¬

a

than $1,000.

more

Proxy Rules Would

Board

with

women

and

see

country

year,

a

policies—two on his life,:

has four

undertaken

survey

concluded,,

Russell

Mr.

about $2,000

"makes

Paul W. Stewart
and Associates, Mr. Russell said
that a total of 4,556 interviews
were completed in all sections of

Burden War Effort

courage^

in

Roosevelt

dissat¬

were

John Q. Insurance

"The average

Buyer,"

for the Aetna by

other Americans,
they are impatient over the evi¬
dence which they see of confu¬
The Securities and
Exchange
sion,
inefficiency, timidity, ir¬ Commission was urged by the
resolution, and lack of co-ordina¬ New York Board of Trade on
tion.
They have no illusions as Sept. 15 not to adopt the proposed
to the cost of the war or as to changes in the proxy rules at the
the power and endurance of our
present time.
enemies. They have, at the same
In a letter to the Commission,
time, great confidence in America, Percy C. Magnus, President of the
in

annual meeting of
Advertising Confer¬

City.
Reporting on the results of a

ance

with

"Along

"OK," and only 9%

isfied with claim settlements.

de¬

address

New York

on

y-y

Life Affiliated

an

Hotel

the

at

ence

bonds made

;

at the

livered

victorious entitled—but no more so than the further with the nation's delicate
peace and the freedom of enter¬
rest of the people—to a prompt economic structure.
prise
it should guarantee,'
he and clear definition of tax policy.
"Ample law already exists on
said, 'and our progress will be un- There is no reluctance on their the statute
books, and in the rul¬
precedented.
.
Let our swords part to meet the tax bill, no mat¬
ings'of the Commission to protect
be mighty and mighty indeed will ter how large. They are naturally
the holders of securities against
be our plow-shares.'
disturbed, however, over the fact abuses.
We find no fault at this
the

.

century to

a

had not forced

their para¬
in seeing the

prosecuted with all of the
efficiency and intelligence

war

doubt, the

no

interest

mount

increased

taxes

Excise

in

Companies,

liquor,
beer,
wines,
cigarettes,
cigars,
lubricating
oil,
photo¬
graphic apparatus,, train, bus and
plane fares.
Interest from future issues of

industry,

American

which

widely

was

a

watched, with

disappearance of many apprehen¬
sions and suspicions which were

"I

have

vigor,

astonishment,

some

special

promptly and

ment of the Aetna

,

"Do

the public

Does

claims

.

.

generally?
choice of a

company?

graduated

Present

1.

influences

What

Corporations

mind the many

public think of insurance companies
a prospective
client most in the

What does the

(Continued from first page)

impossible. I have in
millions of people

been

have

Thursday, September 17, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

978

y

Albert E. Atkinson, investment;

dealer

mitted

of

Cleveland,

suicide

Ohio,

when

scheduled to appear at a
of

clients

who

had

eom->

he

was

meeting

become

wor¬

The

their investments.

claims, 72.5%

ried

treatment

Securities and Exchange Commis-*

reported that their
was
"highly satisfac¬

sion

tion.

It would

open

the door to

over

had

Atkinson's

been

investigating

business

for

Mr..

about,

wisest prediction that thousands of in¬ competitors and other unfriendly
times
the number of passenger
eight months and a representative
judgment."
vestors
will
fail to make the. persons to confuse issues and
cars now operating on all Ameri¬
destroy confidence, which is now of the Commission stated that it
specific
answers, thus imposing an
can railroads.'
unnecessary
legal
complication guarded for the protection of the appeared that in many instances
R. M. Boardman Dead
stockholders
themselves.
This,
"Dr. Stine gave credit to our
upon corporations to hold regu¬
Mr. Atkinson would sell securities
Richard M. Boardman died at
with the other voluminous data
American chemists and our Amer¬
larly
scheduled
and
properly
of customers to meet demands oL
ican
industrial system
for this the Roosevelt Hospital after a called stockholders' meeting.
proposed, to be sent in the proxy
form, would impose undue hard¬ other clients for cash, although'
progress.
To quote him further, short illness. Mr. Boardman was
"We believe further that the in¬
'Today we produce to destroy, but manager of the research and in¬
ships and needless expense."
the
Commission's
investigation.
sistence
upon
statements from
tomorrow
we
will produce to vestment advisory departments of
The Commission's summary of was
hampered by a seeming un-:
stockholders in the Proxy Form
build, and we will continue to in¬ the investment firm of Kean, Tay¬
would
lead
to
confusion, and proposed proxy rule revisions ap¬ willingness of some of his clientsvent and thus to multiply our pos¬
lor & Co., 14 Wall St., New York would present grave dangers to peared in our issue of Sept. 10,
to cooperate.
sessions. That prospect is as cer¬
efficient and honest administra- page 893.
City,

year

and

our

-

~

tain

as

tomorrow's dawn.'




Volume 156

Number 4108

'

THE COMMERCIAL & FINANCIAL
CHRONICLE

979

Investment Business & Free
Security Exchanges life Insurance Seen As Valiant Foe
Vital To American Free
Enterprise, Says Burns
Of Inflation By Patterson Of Mutual Life
The securities business and free
securities exchanges
vital

with

are

a

Administration emphasis

the

on

inflationary danger to

effort of

our

"Our Association—that ;is our"5—
present organization—the original., also to
guarantee that we will be
group having -been formed in 1913 able to
perform our proper eco¬
—came into
being in November nomic functions in the
post-war
of
last year,"
Mr. Burns
said. period.

the

entire

New

>

,

all look

we

York

tribution of securities,

Stock

imme¬

our

as

diate task was to aid the United
States Treasury Department to the
•best of our
ability in the

bonds and

war

sues, but'also
the
recently

new

Treasury is¬

we

are

mindful

of

the

fact

"With

year

to

must

compared

ments

of

industry,

reassuring to
has

been

an

to realize that it

us

essential and

neces¬

those

that

to

point out that in

:

v

trend

we

occurs

to

Reeves, Assistant

a

necessary and important task
to be performed in
which all of us

participate.

;

-

•

Andrew

C.

Webster,

Assistant

350 cities

some

"I just spoke of
increasing pub¬
lic confidence in
American indus¬
try. I do not mean

that it could

to

consider

the

form

a

in the

valuable and useful service

rehabilitation of

system—as does its future.

busi¬

our

but also bring about

ness,
"•

development,

per¬

a

better

public understanding of the

essen¬

tial functions of

have

you

Governors

our

already
come

country—so do

industry.

learned,

from all

our

our

over

the

members. Our

viewpoint is not confined to that
any
particular
locality—but

of

rather is nation-wide. We

I

and

means

effort

•

are also,
successfully so, the
for providing cooperative

trust

and: mutual

>within

our own

understanding

business.'

'

'T'

"In order to promote a spirit of
and
recognition
of

cooperation

veach other's

aty

•

of

problems, the majorr
meetings^f our Associa¬

tion's Governors
'of New York.
t
.

such

are

held

outside

This is the fourth

meeting in the history of our
As today here in Saint

business.

•

Paul,

we have previously gathered
Chicago, Nashville and Phila¬
delphia.
From each meeting we
have profited; we have gained ap
appreciation of a national view-:
point and we trust that likewise

•in

.our

in

members

•have

benefited

those

from

localities

the

discus¬

sions which took place.
"Our particular business is one,

4

you all know,
that does
benefit from a war economy.

as

•

i

not

,

As

matter of fact, the opposite preAvails.
Today we are operating
„

a

i with
.

I

record

: other

i
■

a

actions

volume of securities trans-

which

is

the

our

business and

security exchanges
the

on

in the last 25 years or, in

words, since the last

"Yet
in

smallest

American

are a

war.

our

;,

free

vital part
of free

system

enterprise, for they are the media
through which any individual can
acquire ownership—or as I prefer
to put it, partnership—in our vast
industries.
Therefore, it was and
is incumbent upon us to see that
the health and vigor of that busi¬
ness
be maintained, not only in
t order to continue to serve the
,

.

;

•

public in this time of stress,




but

entirely

"I

afraid

am

complacently

As

war

outlook

for

life

issued
and

and fall plans.

the

anti-inflation¬

insurance, Mr. Pat- !j

public

.-

are

of

that

the

essential

enterprise.
Yet
expect them to under¬

stand it when it means
one
thing
to one
person, something else to
another and not
enough! of any¬
thing to many people.
Rather it
is our
responsibility to convey in

clear understandable
terms that
this freedom of endeavor
is funda¬

mentally the freedom

of

the

in¬

dividual to work where he
pleases,
to exercise his
individual energy,
initiative and ability toward the

making of the greatest standard
of
living for himself and his
family based upon his working

hours
is

what

and

invested

or

has

resources:

That

made America

that

system
perpetuated.

deserves

great
to

be

")'■

■_1

"Every American has discovered
that

insurance

trustee

free

can we

life

;■

that

the

side

of

In

serving

amount

of

and

well

as

that

if

sacrificed

so

free
will

our

own

outside of it,
enterprise
is
individual

as

the

sacrifice his freedom of action?
i
"And finally, is it not our re¬

continue in the peace to fol¬

handed
the
be

over

to

prosecution

so

willingly

Government
of

the

returned intact to

war

the

for

must

Ameri¬

can

people when victory has been
achieved?
"Let
that

us

there

which
these

not

overlook

fact

is

one
decisive factor
determine
whether
freedoms
are

will

whether

returned,

our

system of free enter¬

prise is to be continued.
the limiting legislation
essary

the

It is not
now

nec¬

to meet the present prob-

coin

The

will

total

Sept. 18.

fourth

on

its

5%;

Total

our

develop¬

national resources to

simply what

system of free enterprise is a
nec¬
essary and vital part of our de¬

if there is an informed
public opinion that will
expect as

mocracy;
a

matter

of

course

the return

of

free endeavor and free
initiative,
then that system will
return.
"It is

our

this

responsibility to

task.

about it.

-

We
We

largest

of

last

ex¬

month

every media

each

just

see

of

us

constitute himself
self-appointed verbal mission¬
ary, but also we should band to¬

con¬

story

initiative, endeavor

of

and

industry.
"This is not
protect

an

undertaking to

rehabilitate any partic¬
ular field of endeavor
for purely
selfish purposes.
This is an un¬
or

dertaking

to

guarantee

concentrating all
efforts
will

our

that, in
thoughts and

on

not

winning the war, we
forget to preserve those

American
ideals
and
freedoms
which will be so vital in the
win¬

ning of peace."

this

states

$4,519,428,000,
over

have
an

1

through

in

the

37

amounted

to

year

increase of 112%

the

corresponding period of
1941; contracts for private-owner¬
ship projects in the first 8 months
of

this

year

121,000,
pared

amounted

to

decrease of 51%

a

$869,-

as com¬

with the first 8 months of

last year.

new

be

the

more

same;

but

it

readily.

coin will be

adaptable

all

alloy

developed

was

after

in

extensive experi¬

by Mint metallurgists.
adoption is a distinct departure

Its

standard

coinage alloys, it
having been used before by

never

this

or

other country for coin¬

any

Its use will require
equipment in the Mints.

age purposes.
some

new

Delay( in starting coinage has been
occasioned, Mrs. Ross stated, by
uncertainty of securing the neces¬
metals to sustain continuous

sary

coinage of the piece, and difficulty
in securing the new
equipment.
"Adoption of this new coin is

distinctly a war measure.
The
authoring its coinage provides

act

for termination

Dec. 31, 1946."

on

Manpower Draft Held
Needless For War Work
Secretary of Labor Perkins
on

Sept. 15 that government

perts in
mated
new

some

the

plants

that

ex¬

had overesti¬

manpower

arms

belief

cases

said

and

Congress

needs

for

expressed
would not

have to enable the War
Manpower
Commission to regulate
ment of

assign¬
workers, according to

war

Associated

Press

Cleveland

ad¬

vices, which further said:

Cotton

Consumption In
f
August Off Slightly

Under date of Sept. 15, 1942, the

of

shouid

papers, magazines and radio
vey to the public this

of

ex¬

a

American

31

that

involving the spoken

only

one

Aug.

pro¬

the

mentation

of

Con¬

new

of

greatly from
Jefferson nickel; the

will

from

increased

public-ownership

the

"The

volume; residential

the first 8 months of 1942.

appearance
will not vary

of

the mints

August, 1941
July 1942, 24%..

declined '57%;
public
utilities
(heavy en¬

for

and

types of vending machines,
telephone
mechanisms, parking
meters and subway turnstiles.

and

tracts

nickel

metals needed to win

coin

"The

building

in dollar

25%

circulation

The .purpose of the

that

to

monthly

per¬

cannot

must

copper
war.

will tarnish

from

from

contracts

eastern

"If the public
believes that the

and

the

design

building

The report also added:
As
compared with August
last year, non-residential

42%

in

now

"The

year.

was

announcement

By adopting the new
alloy, all of the nickel formerly
used
in
the
five-cent piece
is
saved and 25 % of the
copper.

con¬

record, having been

decrease

of the

the Phila¬

•

nickel

is
composed
75% copper.

ceeded only in August of last
year
and June and
July of this
The

start at

Treasury's

"The

se¬

the

sponsibility to demonstrate clearly gether and, through honorable
and
that, if our American way of life constructive
jadvertising in news¬
is to

low, those freedoms

the

was

Ross, Director of

Mint, said manufacture

explained:

awarded
last month in the 37 eastern
states
amounted, to
$721,028,000.
This

building

and written word so
that it will
reach every
person in every city,
town and hamlet. Not

country,

on

works

events

within

Nellie Tayloe

delphia Mint next week.

engineering contracts

of

these fundamental
truths are
pressed
through the means

exists

construction projects

as

responsi¬
bility to make the public realize
that
this
same
interrelation of

our

ganese.

change of alloy is to release nickel

jects awarded from Jan.

form

other

Is it not

now

lems—it is solely and
the public thinks. •

talk

though

the

is
vast

a

stimulant to the greater

they

on

for

ment of

no

occur

had 37% of
in government

now

gineering projects) declined 12%,
current
extra
dollars, As compared with July of thisholding these funds readily avail¬ year,
privately financed residen¬
able for use in
stabilizing the post¬ tial building contracts showed in
war economic
world.
August an increase of nearly
12%,
; "Life., insurance
helps to take whereas publicly financed resi¬
out of circulation those
dential
excess dol¬
building decreased 38%.
lars which
today are dynamite in
Symptomatic of the nearly com¬
our
economic system and holds plete conversion of
construction
them in readiness for
the days of activity to war purposes is the
peace when they will be a
contract
vital cumulative
record
for

country can escape the imoact of world events even
the globe.

effort.

war

effect, he said, the institution

guilty of country's

assuming

understands

features
how

we

ther benefit of the

produc¬

upon

27, 1942, will be composed of 35%
silver, 56% copper, and 9% man¬

this

in
very
large
volume
through August, according to F.
W. Dodge
Corporation in a report

to discuss the com¬

ary role of life

come

success, and present
tion «depended

thereby not only

that the new five-cent
piece au¬
thorized by Act of Congress March

tinued

rolling terson
emphasized the point that
in 44 states and that approxi¬ out in* undreamed of quantities,
not only does life
insurance help
mately 80% of the public's trans-' then even the most unthinking can
to absorb excess
see and realize
actions on the Exchange
purchasing power,
what American in¬
originate
but also that life
outside New York City, Mi. Emil dustry is doing.
companies are
What I do mean
Schram, upon his election to the is the building of a confidence in putting by far the larger share of
the money
they receive at the
presidency of that institution, pro¬ that industrial system -based upon
service of
government, the balance
posed the formation of our As¬ a complete understanding that it
being used to help industry,
sociation as a national trade or¬ grew out of our system of free
agri¬
en¬
culture, and real estate to the fur¬
its
ganization. It was his firm belief terprise—that

t

.

New

Roger Bourland, Director of Sales
Promotion. The meeting was held

confidence in

winning implements

companies,

In Record Volume

Manager of Selection; Ben H. Wil¬
liams, Director of Training, and

"

,option

^ugu^st,

For New Five-Cent Piece

new

Construction Continues

President;

.,

maintain offices in

the

to the

job.
;.Vo':. '/ •"j. industry's ability to
out-produce insurance and
"Appreciating that the New the rest of the world in terms of
pany's policies
York Stock Exchange is a national manufactured war
material—that
Speaking of
institution, that its member firms is self-evident, for when warsary

Mutual Life

22,973,572
during

active

-

our

that there

us

addressed

were

Treasury Changes MetaIsJ

the

percentage would be much higher,
he said,
citing the fact that the

Other Mutual Life home
office
who

individual

many

meeting included Julian S. My-', assets invested
curities.
rick,
Second
Vice
President;'
Leigh Cruess, Vice-President and
Manager of Selection; Clifford B.

realized

which

assets will have been
made avail¬
able to the government for
use in
the war effort.
In the case of

way

executives

he

said, predicting that by the yearend fully 25%
of life
company

a

majority to provide imme¬
diately
that
economic
security
they owe their dependents.

de¬

of savings

we

income,

of decreased

future

statements

the

ago

"Today it
is

accomplish¬
it is however

serves

work should take.

that

unbelievable

in

definitely agree, and
a

business to the war effort has
been very undramatic
the

industry and the

share

more

insurance, he declared, but simply

for the

by the firms in

our

would

the future of
to

Government 'securities

the

depended upon in¬
creasing the public confidence in

in corporate
securities.

important undertaking. While

throughout

than half of all new invest¬
Even the prospect of in-7 ments made this
year by life com¬
taxes
and
living costs panies and an even greater pro¬
not limit the use of life
portion of premium

creased

'Times' in¬
that the rehabilitation of

through the investment

being done, and the security
firms of this country are constant¬
ly and untiringly participating in

upward trend in life

sales

period
savings life insurance
represents the only possible

sire

and is

an

and 61,142 bales of
Aug. 31, 1941.

Secretary of the Treasury Morbonds.
genthau announced on Sept, 12
represent

duration.

members

business

our

in the activities of

this contribution

its

or

Furthermore, the

dicated

organized
Victory
Fund Committees.
This work has

this

Exchange

such, but that it is interested in
prosperity of American indus¬

try.

money necessary to promote
war—not only in the sale of

the

predicted

prosperity of the insurance

the

the

raising of

the

in

Aug.

1942, which compares with 23,042,256
active
cotton
spindles
during August, 1941.

,

quite understandably
so, is not in¬

terested

and

on

lint

on

There

forward," Mr.

,

particular field of en¬
deavor is managed
by men of ex¬
perience in finance and the dis¬

of

spindles

which

metropolitan territory.
In Patterson said.
1942, Mr. Patterson estimated, ap¬
"Today, however, all of us have
proximately
$4,400,000,000 of this but one job and that is to enable
"Shortly thereafter, as it did to all
"In an editorial
excess
printed
in
our
purchasing power would be
Sep¬
government to strike hard and
Americans and to all business en¬
tember, 1941,
'Tne
New
York absorbed by investment in life in¬ win this war.," Mr. Patterson
terprises, new and unexpected re¬ Times'
de¬
stated in
surance.
Speaking
at
the
same
substance, that
clared, stressing the part life in¬
sponsibilities descended upon us
our Association
would do well to meeting, J. Roger Hull, Vice-Pres-i surance
which it was our
companies are playing in
duty to fulfill. ; bear in mind that
the public, and ident and Manager of
"As our
Agencies,; the purchase of government
,

Dales

linters

meeting of the company's agency
<f>
from

lint

of linters were on hand in
public storage and at compresses
on
Aug. 31, 1942, and 9,297,307

Company of New York, said at the
Pennsylvania, New York City, on Sept. 11. He spoke before a

personnel

of

linters

7,546,268 bales of lint and 85,049

dent of the Mutual Life Insurance

•Hotel

bales
of

bales

war

$20,000,000,000 excess purchasing power, serves to
high-light
the valiant and
double-purpose role which life insurance is
playing
as a foe of
inflation, Alexander E. Patterson, Executive Vice-Presi¬

.

bales

31, 1941.

•

part of the American system of free
enterprise, since they are the
media through which
any individual can acquire
"partnership" in
our
vast industries, James F.
Burns, Jr., retiring President of the
Association of Stock
Exchange Firms, declared at the meeting of
the Governors of the Association
in St. Paul, Minn.

1,694,557

449,873

Census

Bureau,

issued

its

consumed
cotton

at

Washington,
showing cotton
in the United States,
hand,
active
cotton

report

on

spindles for the month of August.
In the month of August,
1942, cot¬
ton

consumed

amounted

089 bales of lint and

of

linters,

to 925,122,138 bales

compared with 995,041 bales of lint and 128,123 bales
as

of linters in July, 1942 and 872,035
bales of lint and 130,965 bales of

linters in August, 1941.
For the 12 months
ending July
31, cotton consumption was 11.-

172,328 bales of line and 1,494,073
bales of linters, against 9,721,703
bales of lint and 1,358,950 bales of
linters

in

the

same

12

months

a

year ago.

There

were

1,949,295

bales

of

lint and 353,859 bales of linters on
hand in consuming establishments
on

Aug. 31, 1942, which

compares

The

Secretary of Labor told

a

press conference that the estimate

for necessary manpower at Willow
Run, the Ford plane plant, was

150,000,
whereas
in
the
final
analysis only 60,000 persons were
needed.
On the
an

same theme she said in
address to the United Associa¬

tion of Plumbers and Steamfitters:
"I disagree that it is inevitable
that Congress must enact
legisla¬
tion which will enable the War

Manpower Commission
the

movement and

workers in

war

to regulate
assignment of

industry to

cope

with the situation.

"Production short cuts, constant

Upgrading of

new workers under

skilled

supervision, the infiltra¬
tion
of
increasing numbers of
women in light war
industry and
the apprenticeship and plant re¬
placement
training
program,
I

believe, will obviate the necessity
for such drastic

lation."

regulatory legis¬

THE COMMERCIAL 8c FINANCIAL CHRONICLE

980

Thursday, September 17, 1942

Aug. Living Cost Up 0.3%

Earnings Still An Unknown Quantity

The

As

perhaps no time before in financial history, security holders
today find it extremely difficult to appraise the earnings of their

AFTER

companies.

aside

Even

negotiation

from

(for

of contracts

the

tax

factor, the question of re¬
work) looms large.
The Senate
question of over¬

war

Finance Committee is expected soon to consider the

" '

plays

all limitation of

":;

"The Morning Star," a

Presented

melodrama by Emlyn Williams.

by*Guthrie McClintic at the Morosco (W. 45th St., N. Y.), with Gladys
Cdbp'er, Cecil Humphreys, Brenda Forbes, Wendy Barrie, Rhys Wil¬
liams, Jill Esmond, Gregory Peck and Nicholas Joy.
Staged by

into

the

the

favorable

profits—and

war

some

reaction

that

had

tax ceiling pro¬

greeted the 80%

posal (applicable mainly to com¬

whose
operations
have
vastly' Stimulated by war
as
compared
with
;r' %s everybody now knows the year of the big London Blitz was production,
their pre-war operations) is tem¬
I94i3; The rain of bombs killed many, wounded more and upset every
porarily offset by' uncertainties
Londoner's life. Old customs and habits had to be discarded and new
The
dnes acquired.
In "The Morning Star," Emlyn Williams describes regarding profit limitations.
how one London family, a member of the upper middle classes, re¬ latter, presumably, would be ap¬
panies

Guthrie McClintic; sets by Stewart Chaney.

been

adied to the changes. It is, by its nature,

a serious play; at times it is
dveii clever, but seldom is it a very good play. Just as some of the
characters begin to take on a human tinge they suddenly resort to

attitudes and gestures which make them unreal.

The blitz chases the

family from its comfortable house in Chelsea to a one room in an¬
other part of town. The young aviator son is killed. The older son, a
rising physician, cuts loose and has himself a time.
He leaves his
and; goes off with an expensive'blonde, who plays the field.

wife

He writes a-hit novel.

He becomes the outstanding surgeon of the

day.' And after tiring of all these goes back to his wife, who promptly

promises him a baby. Throughout all these adventures, Miss Cooper
as the play's central figure, is the well-bred exponent of good breed¬
ing.
Miss Barrie, the blonde with the collector's eye, gives a firstrate performance.
Gregory Peck, the son wtih the marital wander¬
lust, plays his.role with admirable, skill.
Cecil Humphreys as the
irascible old doctor hiding a heart of gold under a rough exterior, is

plied before
whatever.

any

tax calculations

Sooner

or

later, prob¬

lems of this kind will be
ened

remains

however,

evident,

that uncertainties of various kinds
not

are

to

producing any liquidation

of; rather, they merely

speak

appear

tiative.

to

buying

postpone

fectiveness

of

which

Jill Esmond as the wife who takes her husband back, gives
incentive.-—J.
a; very good performance. The trouble does not lie in the-per¬
formances, it is with the play itself.

the
the

on

up¬

clear-cut

BACHE

S.

ef¬

&

CO.

t

.

THE MOVIES

•

-v

-

^

A few months ago when Diana Barrymore made her motion pic¬

ture bow in "Eagle

Squadron"; the best that could be said of her per¬
formance was just fair.
But now having been starred, photographed
to better advantage and given a role in "Between Us Girls" which
permits her to play Queen Victoria in her old age, Sadie Thompson in

"Rain," not to mention

glamor girl and a 10-year-old hoyden, she
does a creditable job. As Carrie, a rising young actress, Miss Barrymore returns home to her wealthy, beautiful, widowed mother
(Kay
Francis) for a surprise visit.
Mother has acquired a suitor (John
a

Boles), who is under impression the unseen daughter is about six
old. So to aid her mother's cause, Carrie makes up accordingly.
Trouble.arises when mother's suitor on first call brings friend (Robert Cummings) with him.
Right away Carrie falls for him. And he,
with no eye to intimate details, believes she is just a friendless, mis¬

years

understood child in need of roller

x
■

:

skates, ice cream sodas and sym¬
pathetic understanding.
Eventually, of course, everything is discovered but meanwhile there are plenty of amusing situations.

r.',

■■■!

,v;::

ABOUT THE

V-

TOWN

New York is slowly

jammed and

;

some

week

'

'

/.nh*

•

v

becoming
ends

iA/ '

/'

boom town. The night spots are
have to almost get a letter from

a

you

Donald Nelson to get into them.
■

•

\

•

;

Over on the swishy East Side, there
is, for example, Fefe's Monte Carlo on E. 54th Street. The bar, of
what is the place proper, opened during the fall and
winter, has been
turned into a gin rummy room.
Well, to see the uniformed backs
intently bending over the paste boards you'd think it was an im¬
portant General Staff in solemn meeting.- In the Monte €arl<* Reach
is the room where the "name" people huddle. It's a poor
night which

doesn't see a Heddy Lamarr,

a Dorothy Lamour or equally
females relaxing here after a day of War Bond selling....
the corner (55th off Madison) is another place

i
.

•

Around

.

bulging with uniforms
long narrow room, it reflects the rotund per¬
sonality of the kewpie-faced Armando, who keeps hopping around
yelling "hello;'! and "nice to see you." 'Over on the West Side the
boom has also had its affect. Fifty-Second Street, the home of swing
and jive, is full of .Service men on leave.
Unfortunately, these swing
joints are not too much concerned with either good food or. even

—Armando's.

;

glamorous
.

A not too

passable service.

Still if you want

a

lot of noise and "girlie" shows

Com. Ass'n Condemns

of New

York, after its unanimous
adoption by the Board of Direc¬
tors.
The changes were recently
advocated by

Continued Gains
Savings through the New York
State Savings Banks continued to

gain during the month of August,
according to the latest statistics

you

want.

Not

Clothing

July

and

15

increase of 18.4%.
with

ond

was

15.8%.

advances

sec¬

Other

during the 12 months
sundries, 6.3%; fuel and

were:,

,

light, 2.0%; and housing, 2.5%. X?
The

,

purchasing

value

dollar declined 0.3%

August.

down 8.9%.

net increase

Food

rise of

a

ings banks report

a

led the. ad¬

costs

August, 1941, with an

over

gathered by the New York State
Savings Banks Association. 1 Sav¬

During the

•

the

of

from July to

it went
X.-Xx;': xXXy.X

year

of

12,388 in number of accounts, a
gain of $16,220,000 in dollar de¬

months to 21,144,
the

of

end

total deposits at

the. month

of $5,427,-

Tomorrow's Markets X

Walter

Whyte

X

X

Says
(Continued from page 973)
X'

000,000 and total War Bond Sales
to? $338;402,000.
The gain in de¬

'

*

*

f V"

#

Last week the market

again
managed to creep up to with¬
in shouting distance of the
same month to
indicate a net of
new
savings of $33,510,000 ac¬ important 110 level (D. J.)
counted for by the.savings banks. but as this is being written it's
Comparison with the results for back
again • within hailing
the same month in previous years
zone of the critical 105
figure.
new -accounts
and in dollar de¬
posits
are , the
largest of >, any Slowly being groupd between
August

during

posits

added to

*

may

be

War Bond sales .for the

,

-

Commerce

these

two

millstones,-it still

gives no clear indication of
any nearby trend. -The stocks
you / hold
on
this column's
recommendations are acting
with the market.
They can't
:
/
; quite make the profit taking
prices
and
refuse
to
go
.; "In round terms, there will be $84,000,000,000 fighting to purchase
$75,000,000,000 of goods" is the way Leon Henderson recently de¬ through their critical levels.
>.

Stock Market Prop

.

v

One doesn't Until these stocks do * one
this situation
the pressure will be strong to force the prices of goods upward.
But thing or another it would be
futile to be any more specific.
against this pressure will be the efforts of the Government to hold

scribed the inflation problem in the immediate future.
have to be an economist to figure out that in face of

prices down by price controls, ra-<£—————

,<

From

speech

President's

the

and

~
But taking

———
tions stockmarketwise.

tioning, etc.
various indica¬

from

tions in other

recent

quarters it appears
is finally

that the Administration

the
has

situation
an

as

it

whole,

a

shorter term standpoint.
to do with the excess of

beginning

take

to

Here

there1

and

also

interesting aspect from the

This has
purchas¬

realistic at¬ ing power which, as Mr. Hender¬
son
has pointed out, is now actitude toward the inflation prob¬
that the East Side places aren't noisy but their noises are
usually
To the extent that
lem. / If this results in the adop¬ cumulating.
; better natured, and the food, drinks and service are better and no
price controls and rationing are
more expensive.
x
: ■'1 ■ ••.v1XX ■ ;
".;;1 v;"•*
/.■/"■ ' • X. "■ •''
X- tion of comprehensive and effec¬
in
holding
down the
tive controls, inflation should be effective
checked sufficiently to avoid seri¬ price level and'restricting pur4
1
Fernon Merges With Bell
How Much For Advertising ous consequences.' If not, then the chases of consumer goods, the ex-t
cess of purchasing power will spill
prices of goods are likely to rise
PHILADELPHIA, PA.—The in¬
Albert
Frank-Guenther
Law, even more drastically than dur- over into other channels of spend-i
vestment business of Norman Fer¬
Inc., 131 Cedar St., New York ing the last war.
ing. In other words, the X number
v" 1
non & Co., Inc., has been
merged City, have
of billions that aren't spent "for
reprinted in attractive
What the answer will be js any¬
; with that of W. H. Bell & .Co., booklet form,. "What Should You
the
purchase of available corn
one's guess.
We know that the
Inc.,; 1500 Walnut St., umjer' the Spend On
sumer goods will be spent in some
Advertising?" • which dangers are more
name of the latter firm.
widely appre¬
other1
appeared
in
a
recent
issue
way.
...• *;v
of
;;; /• '■ 'V X X, j
ciated than in the World War I

; and if you're not particular, 52nd Street is the place

between

York.

vance

the staff of SEC and
Commission.
and Industry
Association is not opposed, to rules
and regulations which will actu¬
ally operate so: as to carry out the August-/during the past eleven
sound objectives of protecting in¬
years and are a healthy sign today
vestors from fraud, for which the when it is so important that cur¬
SEC was created," the committee rent
earnings ;, be diverted into
report read. "In an effort to pre- savings. '. x;
presented to the
"The

0.3%

rose

Aug. 15, according to the National
Industrial Conference Board, New

ago.

Savings Banks Show

Proposals

proxy rules by the Securities and
Exchange Commission was made
public on Sept. 15 by Neal Dow
Becker, President of the Com¬
merce
and
Industry Association

cler¬

abuses, however, all

posits and War Bond sales of $17,290,000.
X
VM; V
This brings the increase in sav¬
A
resolution
condemning the
proposed,revision of stockholders' ings accounts during the past three

SEC Proxy

wage-

,

on

technical position,

living: for

lower-salaried

Food, which rose 0.8%, was
chiefly responsible for the in¬
corporate activity should not be
crease
shown.
Clothing
rose
unduly hampered, especially by
0.2 %, : showing
an
increase
of
arbitrary requirements that ex¬
0.1%
'in
the
cost
of
men's
clothes
ceed the authority granted
the
and 0.3% in women's clothes.
All
Commission by Congress.
items Xsurveyed—housing,
"The practical effect of these other
fuel and light and sundries—re¬
proposed amendments would be
to give the personnel of the SEC mained at the same level as the
X' '
X power to influence, many of the previous month.
policies and
operations of the
The Board's index of cost of liv¬
managements of listed companies. ing <1923—100) stood at 98. If or
This power would definitely ob¬ August as compared with 97.8 in
struct
the application of sound July, 97.3 in June and May, 96.1
management ability to American in March, 95.1 in February and
business and to'that degree Would 89.4 Tri
August, 1941, v X • M ,J'X
injure, rather than aid, investors."
The level of living costs was
9.7% higher than that of a year

ini¬

general, an attitude of
the part of the stock
market betokens a strong under¬

lying

be written

may

and

ical workers in the United States

—-

vent isolated

In

this kind

side awaits only a more

capital.

straight¬

meanwhile
the
apparently prefers to wait
and see."
'" •- ' '
•
:/ •'*
but

out,

market

It

such provision

pending tax bill. •: Thus,®

cost-of

earners

a

signs

buying. do
dom

appear.
But
these signs in

are

dence, long

enough to warrant

following. Therefore, in
ming

of
sel¬
evi¬

sum¬

I advise all stocks

up,

•

,

should be held until either the

profit

areas

zones

trated.
.

'x'

XX

.

■

'

by the U. S. Department of Com¬
merce.

The Penthouse Club
30 CENTRAL PAEE

SOUTH

..The

the

war

volume

a

most

unique restaurant in

beautiful location, overlooking

Central Park to the north.

Serving

best

food,

skilfully

prepared.
Entertainment after 11 P. M.

Telephone PLaza 3-6910




and

in

outlines

should
the

play

peace

the

in

spent

in

advertising

that

central

ment powers are

also

know

conducted

that

greater.
the

a

on

govern¬

But we
is

war

vastly

being

greater

otherwise, with the result that the
problem of controlling inflation is

by correspondingly

portion
of
this
money will go into Government
bonds, but we know from past
experience, and from what is hap-i
pening abroad that a' very consid¬
erable portion will go into; the
purchase of common stocks. It is
doubtful if this new source of
The

largest

Copies of this in¬
and attractive booklet
may be had upon request (made

teresting

was

[The
irticle
:tme

formation of Thomas

tremes.

From

.

,■1 \\ \

•

•

goods
this prospect has

.

:<<j; j' v

•

longer term standpoint

a

:■

o

bullish implicagV

|

re

in

market.

—

-

'■Brevits "
no

h >1

ni'e

F.

W.

Massachusetts

1

expressed

in

XX;

They

are

presented

99 WALL STREET
NEW YORK CITY

SUGAR
Exports—Imports—Futures

DIgby

4-2727

~

ra¬

ir

jfctU

i»

uii/V|

this

necessarily at any
with those of 'the

LAMBORN & CO.

Shelley

i an

not

coincide

Chronicle.

Distributors'
.

no'.iur

views
do

those of the author only.]

25 years ago.

Associates, Inc., 551 Fifth Avenue,
j•-

greater

Thursday. ;
'
Whyte.

—Walter

than it
At the moment buying power has made itself felt
But
it seems: improbable that either to any great extent as yet.
the extremeX of drastic runaway as time goes on and more excess
on
a
business letterhead)
from inflation on the orie hand or the purchasing power dollars accumu¬
Albert Frank-Guenther
Law, Inc. extreme of
completely' effective late, they will constitute a strong
prop to stock market stability. In
control on the other will eventu¬
ate.
Perhaps a fair guess as to fact, given more encouraging war
Form Thomas Associates
what will
happen, therefore, is news, • these - excess, purchasing
that the final result will be some¬ power dollars could conceivably
The officers and other
be an important factor in pushing
person¬ where
near
the
middle^ of
the
stock prices upward just as they
nel of W. L. Thomas & Co.,
Inc., range
between- these
two
ex¬
are
now
doing in the consumer
announce the
533 companies.

New York City.
':5i

and

to fol¬ scale
financially, productively/and

low and in addition lists by clas¬
sifications the percentage of sales

Adjoining The Plaza

A

article

part, advertising

period

■■
-'X >'

*

More next

.

Commerce," published

critical

the

V -■ -:L". ■'■// /; X''

is

■'

■■

"Domestic

or

reached and pene¬

are

r u

.ac

at

I

.Volume 156

Number 4108

THE COMMERCIAL & FINANCIAL
CHRONICLE

SEO Extends Period For Submission Of

appeared in the 1936 Federal census
to the Domestic Relations
Law

required by an amendment
adopted by the 1942 Legislature.
Corporation Counsel for the
City Clerk's office argued that
"grave abuses had existed under th6
law as it existed
prior to the

Regarding Bid and Asked Disclosure Rule
; \
...
(Continued from page 970)
sented by the staff of the
SEC which had been proposed
Street group, but the results are the
..

.

In the Supreme
Court, Justice William
of the Negro
Bishop, rendered the

by this Wall

favor

same.

The original

SEC Acts

all

desirable

more

right as far as they went, but
they did not carry through all the features
they should have of the
English Companies Acts from which
they were copied,

charlatans

enabling proper financing of small businesses.

liberty."

were

.■

a

busi¬

but it

ness,

policy
sider

when

the

revisions

attitude

they

changes

to

seems

are

the

writer

recent

to

the

did,

namely

■

■

mistake

grave

hearings

Acts,; for

the

made

was

were

held

to

to

take

Commission

in

.

the

'■'
A reasonably good Stock Exchange market and
Over-the-Counter
market would certainly be a
help to war-time economy and would do
more than any one
thing to help the Treasury Department in its tax
...

,,

collections and
have
of

made

15

to

good

a

25

bond-selling
listed

Present laws and regulations
impossible and resulting spreads

program.

market

points between

bid

and

asked prices certainly do not
profit the investing public. This
trading plan in so far as it affects
municipals is a direct slap at Congressional intent.
Only in 1938,
Congress excluded municipals in
passing the "Maloney Act." A com¬

mittee

should be appointed of
municipal and
lay the facts before the Interstate Commerce

to

Chairman, and the Finance Committee

of the

corporation

traders

Committee, Mr. Lea,

Senate, Senator George,

Chairman.

If the Wall Street element of the
Stock Exchange, with
SEC help, can put over this
nefarious plan under the cover of war¬
time stress, we would be
derelict to thousands of our associates who
have given their
services, many their lives in the service of their

country.
them

so

They expect
they will have

We

to at least carry

us

interested

were

in

willing to

When

an

is handled

first

which«

use

made

;/;///\;//://

'V/'

in

York

the

"New
no

broker

or

the term "execution"

advisedly,

Exchange

robot

a

.

the merits of the rule.

the New York Stock

process

.

the Commission, that

argue

"execution," and I

on

mechanical

.

statement

a

Times" of Aug. 24, attributed to
dealer would be
>

along the home front for

job to return to.

a

could

consideration, which

or Curb, it is largely a
handle, speed being the

usually does not benefit one party to the
transaction, either buyer or seller.
In one local
Kentucky stock
traded in New York the bid was
40, the asked 80, before and after a
sale of 10 shares at 50.
If this rule were
put in effect, this infor¬
mation should be on all listed
confirmations.
"Executions" on the
listed market are largely made
by "social" clerks. They do not at
present give one-tenth of the service or
one-tenth of the knowledge,
skill and care for investors'
best interests as exhibited
by the great
majority of traders in Government bonds,
municipal bonds and overthe-counter securities.
1
Excess

regulations

that

have

deflated

the

listed

markets

in

such

Government itself has to use the facilities
of the
Viver-the-^otihter markets in Government bond transactions.-n
The
only security averages which have held up are the
over-the-counter

securities.;'

1 ; ;/-■
'
'
■>./ —
This rule, if it is to be seriously
considered, should be put into
effect after consideration by the National
Association of Securities
Dealers, that creature of the SEC set up to regulate the over-thecouner markets.
If this organization can't do it and
work out .the
problem, it is a waste of money for all dealers to
pay dues in it'.to

;

keep it going.

All dealers should be for any rule in the
public inter¬
est, and against any that are not.
;
' : ;
'
The SEC has been in a rather peculiar
position, pushing on the
one hand its public
utility disintegration policy in a market which is
.

sacrificial to all holders, and

on the other hand being
given the war
duty by Congress of protecting the investment
public.
That certainly
does not help the war-time
economy and we question whether that

was

of

ever

in

Congressional intent; certainly not the intent
the present courageous and able
Congress.
To relieve this situation, the Federal Power
Commission should
any

way

far,"

to

give

he said, "to tolerate the abuses
of a few
judicial approval and sanction to a
legis¬
patently repugnant to the
principles of religious

*.

.•

who

was

such

decision!

a

If

should

be

curtailed to

additional

tanks

minimum

with

and

State

the minimum.
The

guns.

agencies

The

cost

and

of

savings

policing

various

can
can

national

be put
be

cut

into
to

a

organizations

functioning smoothly.
,

strength¬
ening the national economy, planning for the post-war
period, and
SEC should be given the job of
successfully handling the Gov¬
ernment bond financing to the general public.
The SEC can thus
the

render a real service to their

Government and the people, and not be
left in the class of doubtful purpose agencies.
i
The investment industry in
Kentucky and all over the country
has been donating its time and services in the
furthering of the sale
of War bonds.
It has been estimated that the
industry's out-ofpocket expense this year has amounted to
$75,000, not including any
time or percentage of overhead expenses.
This is done at a time
when the securities

No

industry,

for

an

own

industry

as a

whole is largely operating at

loss.

a

profession, or Government employee has more right
our great war
leader, Mr. Roosevelt, than does our

"E" from

industry.

We think the SEC has made

a

serious mistake

even

to

suggest the consideration of this rule at the present time.
The
present job of all is to win the war, and not to create
controversy and

disunity.
If

protect

business from being destroyed, our
industry
can
prove very important during the war
to the welfare of our
Government.
When peace comes, our business will have a
great part
to play in the economic development of the
country and of the whole
world, and can look forward to the future with optimism.
we can

Our

answer

our

to this rule, if we

care

to give it,

only thing we can give any consideration to
War."
THOMAS
l

National

on

"Victory in the

GRAHAM,

to

31

light in which the City Clerk's
Negro Bishop to perform
marriage
the ground that his particular
religious sect had not
came

office had contested the right of
ceremonies

is

Committee Member from
Kentucky

DEALER NO.
Several days ago a case

now

should be that the




a

requirements

the

strain

banks

on

in

Jfiose

'

'

For

not

dogs for this

recourse

canine

as

world

all

to

dogs, at

of

it became evident that these;
purchases alone would not suffice
for long to
keep the banks in¬
volved in position to absorb
new

heavy

Treasury emissions.

Southwestern Public Service

Response to the offering of new
under the refinancing

securities

to ridding the world of
program
of
the
Southwestern
biting
ultimately mean the extinction of the Public Service Company was fully

time

some

or

other,

to the expectations of those
familiar with the
undertaking.
Most heartening,

up

forced to show

are

;V:\

.

The

SEC has muzzled the
securities business and, in very
many
with sincere realization of
necessity.
Surely the Commission
provisions for the proper
adjunctive police powers
and authority to effectuate
the enforcement of these
rules and regu¬
lations.
Or are we to assume that
they have failed in this respect
and are now
"shooting at the moon" to further perpetuate their
own
admitted ineffectiveness?

according to

cases,

observers,
new

have

:

M.

by

attributed

the

to

Senate

the

Finance

preferred

dividend require¬
before making provision
for excess profits taxes.
The 4% first
and

the

mortgage bonds
working out

notes

were

satisfactorily,

^

J.s V-7:' Very truly yours,
y' V•>:/././; F. V.

for the

ments

give judicial approval and
sanction to a legislative
enactment patently repugnant to the
prin¬
ciples of FREE ENTERPRISE."
-"TV;?
...

call

Committee to permit deduction
of

''•/'''

been

movfc

To correlate the

•'

the

was

6^4% cumulative preferred
stock, which incidentally might

case of the Negro
Bishop and the Court's deci¬
sion, with its effect on the investment
business, we have only to
change the last two words, viz.: "than to

..

impact

committee,
chiefly in New York." But months

must have made

v.'..*;'

Reserve., ,7$%-

the

absolution

would

their fangs if they are to
survive.

•

,/'0^ ;

the

ease

ago,

,

is

largely ^ip

such operations
through the action
of
its
open
market

•/

Decapitation

time

a

deavored

Since many of the recent
proposed rulings as set forth by the
SEC have been saturated with
inferences not definitive, but none
the less vitriolic, and which
must be swallowed
by the honest and
the crooked alike, I think I
need elaborate no further on what
I am
trying to set forth and simply keep it in
the;state of insinuation, in
line with the general
practice of that worthy Commission.
V;

expended

country, thup
setting up a steady drain on the
two major points.

wording

V

been

other sections of the

,

it

indicated,

was

with prospects for a
closing
books within a few days.

./:

of the

Soaking Up Free Funds
The

K

Capital Gains And Losses

7

individuals

of assets held not more than

taxes which will become due next
year.

It proceeded
to
terms of the Tax

long term, although the holding

15 months

reports in¬

dicate that the Senate is contem¬

plating

reducing;

period to
Short

13

the

holding

gains

and

'

losses

would still be recognized at
100%
but ..long term gains and losses
would be recognized to the extent

of

50%.

losses

Short

would

term

be

gains

offset

be

matched

to

termine

the

net

loss.

or

change

versa,

capital

to de¬

gain

or

loss.

A net capital gain
resulting
from an excess of a net short term

gain

mains

the

...

earliest; year would
As long as there re¬

over a net

Carryoyer Works

amount

$1,000

reduce net

can

be applied

income, leaving

a

$9,-

000

carryover.,; Now ^assume in
1943 there is a net capital
gain of

$5,000 and of the 1942 carryover
loss of $9,000, $5,000 could be
ap¬
plied
in

as

an

gain.

In

addition,
of $4,000
may be applied to reduce net in¬
come, thus leaving $3,000 as the
carryover

long term loss (or
solely from a net short term gain) balance of the
1942
carryover
would be added to
ordinary in-! available for
succeeding years.
come
and
would
be subject to Now assume
in 1944 there is a
taxes at the regular normal and
net capital loss of
$5,000 and that
Surtax rates.' A net
capital gain $1,000 of the 1942
carryover is
resulting from an excess of a net
applied to reduce net income—
long term gain over a net short this would
reduce the 1942
term

loss

long

term

added

(or

solely from a net
gain) either may be

to

ordinary income and
taxed at regular rates or
may be
taxed separately at
50%, which¬
ever

method produced the lower

tax.

Since

long term gains are
recognized only to the extent of
50%, the effective maximum rate
on long term
gains is 25% of the
actual gain.
It

is

important to note that a
net capital loss may be deducted
from ordinary income
(salaries,

interest,. dividends, etc.) only to
the extent of
$1,000, but the ex¬
cess

for

a

this figure may be used
five-year period to offset net

over

capital
excess

gains.

In

carrying

losses, these would be

sidered

as

succeeding

short

term

years and

over
con¬

losses

in

in applying

carry¬

over

to

$2,000 and would leave the

1944
a

carryover at $5,000, making
total carryover in that year of

$7,000.
is

Now

net

no

assume

in 1945 there

capital gain

or

loss and

that $1,000 of the remaining

1942
applied to .reduce net

carryover is

income—this
1942

over

would

carryover

would
at

In 1946

still

leave

$5,000,
assume

reduce

to

$1,000

the

1944

or a

the

and

a

work.—G.

Y.

Series

A-1945

predecessors,
small

notes

re¬

like

designed

are

taxpayers,

with

the

maximum available for
presenta¬
tion
against tax

liability being
$1,200 to $5,000. This
is being applied

raised from

limitation

new

also

to

the

predecessor issues.

Large Municipal Offering
The
has

municipal

been

months

so

market,

in

the

far

as

which

doldrums

for

business

new

is

concerned, will have an oppor¬
tunity to bid for a substantial
piece of Boston financing next
week.

.7.

The Boston

trict has

Metropolitan Dis¬

issued

call

a

for bids,
Wednesday,

to

be

opened

on

an

issue of $8,186,000 of new
of the Transit
Authority

bonds

for

the

city and adjacent

munities.

com¬

,

Carrying
next, the
rials

next

the

date

of

Oct.

bonds will

new

maturing in

one

be

to 25 years.

In view of the dearth of

new

ferings recently, this issue is
pected

to

15
se¬

of¬
ex¬

considerable

arouse

competition.

carry¬

net

Interesting Opportunity

capi¬

$6,000—again this can
be used the $1,000
remaining from
the
1942
carryover
and
$5,000
from the 1944
carryover, resulting
in no taxable gain. This
might be
continued ad infinitum, but the
foregoing will suffice to illustrate
briefly how the carryover provi¬
would

their
for

total of $6,000.

there is

tal gain of

sion

The

offset, thus resulting

taxable

no

$1,000 of the

adaptable for two
either for accumula¬

idle, with provision for cash
demption with interest.
•

to

BIL-

LARD, J. R. Williston & Co.

■"

tion of tax reserves, or for tem¬

'/,

Suppose in 1942 there is a net
capital loss of $10,000.
Of this

.

porary or short term investment
of cash balances which
may be

ordinary net
■;

the

since

'

are now

purposes;

capital

How

the

to make

manner

attractive.

more

1944,

carryover may

income.

a

sale

on

The
new
Series
C
notes,
which replace the old Series B-

a

be applied to reduce

liberalize

Saxings Notes

been

Aug. 1, 1941 in

amount: avail¬

gain, $1,000 of the

have

-

carryover loss in any year
which there is no net

in

against

would permit a net long term loss
to be offset against a net short

gain, and vice

the carryover
able from the

which

them

—?1..

and

determine

the net long term gain
However, the proposed

the long-term
category

be used first.

months;

term

and

may be setting aside
enormously
increased

against

period would be changed, i.e., the short term
category would consist
would consist of assets held more<$
than 15 months (latest

week

siphon off as much as possible
of funds which corporations and

and losses in the 1942 tax
bill is of paramount
importance to all investors.
c". /"-f1'"'
Under the proposal
presently before Congress, gains and losses
would still be divided into short
and

Treasury moved this

to

Prospective treatment of capital gains

f

term

All the efforts of the Commission should be
devoted to

reserve

two

major cities, th$
Re¬
explains, is designed tp, off¬

have

man

would

financing
financing, the activities of the Commission

set

wishes to enter into the contract
of marriage, he goes
to his own clergyman whom he
knows and respects.
If, of necessity
and in the case of civil
marriage, a man is forced to apply to some¬
one strange to him he
has available every means of
investigation as
to the legal status of that
particular officer and it is his own
foolish
mistake if he neglects to exercise
those means.
a

practically stops all

new

the

serve

-

are those
not beyond the reach of
Satan?
Only one with the mental
of a feather-merchant
could possibly conclude that
this
the ultimate intent and
purpose of this learned
Judge in

each other to determine the net
short term gain or loss and like¬
wise long / term gains or losses

be given control

•.

Easing of
at

are

of the financial part of the
utility business, trans¬
ferring the control from the SEC. As the Government war

,

-

,♦

>

-

Offset To Steady Drain

centers incident to the
Now, does this decision consign John
Treasury's
Q. Public to a future of
questionable certainty as to his
heavy withdrawals.
marital status wherein he is
to
Such
assume that even in this
funds, it was explained,
important phase of his life there

a

the

by

than

enactment

-

fashion

Reporter's
Report

(Continued from first page)

C. Hecht, Jr.,
deciding in
following decision; "It is

faculties

con¬

"no changes."
It is patent that some
the well-being and best interests of our

for

/

a

Congressional

SEC

necessary

country.

that

lative

especially

While in the first few
great deal of good was done, it is now a
question whether
this statement is still true.
The members of the Commission,
present
and past, have tried to be fair
to all people in the investment
years

Our

enactment of the amendment."

.

.

981

as

Securities

of

the

St.

Louis-San

Francisco

Railway Co. offer at¬
tractive possibilities, according to
an
interesting circular issued by
Pflugfelder, Bampton & Rust, 61
Broadway, New York City, mem¬
bers

of the New York Stock Ex¬

change. Copies of the circular
be

had

quest.

from

the

firm
.

.

upon

may
re¬

THE COMMERCIAL &

982

Calendar of New Security
SOUTHWESTERN

PUBLIC

SERVICE

Public Service Co.

Southwestern

Flotations;

interest rates 2Vi<io and 3%;
60,000 shares, 6 Va %
cumulative preferred
stock,
par
$100, and' 185,000, shares of:
common', par $1.
The names of the underwriters are given

Address—9 Green Street,

serial notes,

OFFERINGS

CO.

filed a

registration statement: with the SEC for:
$18,500,000 of first mortgage and collateral
trust bonds, due Feb. 1, 1972; $5,500,000

(The amounts, of each class of

below.

Augusta, Maine

Business—Company is an- operating pub¬

members

Maine

of

Underwriting—The bonds and the notes
sold under the competitive bidding

se¬

only,

all

whom

of

are

will' be

Offering—The debentures will be offered
the public at 100; each $500 principal
of the debentures will carry one

retail
to

druggists.

utility and engages in the electric, gas
and
water
business, entirely within the

lic

State

Thursday, September 17* 19,42-

FINANCIAL CHRONICLE

amount

of the debentures
will be
presently Issued.
Approximately
$120,000 of this amount will be Issued to
replace the outstanding 6% preferred stock
which is being eliminated1.
Approximately
$48,000 additional will be Issued to retire
Proceeds

$250,000

—

warrant
25

of

of

stock

common

purchase

to

holder

the

entitling

shares

company,

the 75,000 shares,
common stock registered, 25,000 shares are
reserved for Issuance upon exercise of thewarrants, and 50,000 shares will be offered
to the public at $10 per share
Proceeds will be used for working capital

at

$10

share.

per

Of

underwriters have
rule of the Commission,
Names of under¬
will- be
given
in
buying privilege deposits with the company
aerial, notes, due in, equal annual amounts
writers and amounts and offering price to
"Chronicle" Monday Sept. 21.)
The balance,, approximately $78,500 after
from- Nov. 1, 1943, to Nov.
1, 1953, in¬
public will.be supplied by amendment
Dillon, Read & Co., E. H. Rollins & Sons,
clusive'; and 85,000 shares of 6% cumula¬
Offering—Public offering price of the expenses, will become additional working
Inc., A. C. Allyn & Co., Inc., Auchincloss,
purposes
• '•
,
tive1 preferred stock, $100 par value
..•
•
bonds, and notes will be supplied by amend¬ capital: V- ♦ V •
Parker & Redpath, Bacon, Whipple & Co,,
Offering—The new debentures will be
.Address—Dallas, Texas
ment.
The 261,910 shares of common are
S
Business—This company
and its sub¬ Baker, Weeks & Harden, Bear, Stearns & first to be offered to the holders of the priced at 100 and accrued interest
Registration
Statement
effective
5 30
sidiaries
are
engaged principally in the Co., A. G.. Becker & Co.,. Inc., Blyth & Co., company's outstanding common stock and
Registration Statement No. 2-5026. Form
Inc., Bodell & Co,, Inc., Boettcher & Co.,
p.m. EWT on June 17. 1942
A-2. (7-7-42 •
generation, transmission, distribution and;
6% preferred stock, for subscription at $10
Alex. Brown & Sons, Brush, Slocumb & Co.,.
Amendment
filed
sale- of
July
23,
1942
giving
to
electricity,, serving certain, com¬
per
share in accordance with their pre¬
LUKENS STEEL CO.
\
H.
M.
Byllesby
&
Co.,
Inc.,. Central
members of the company only the privilege
munities in Texas, New Mexico, Oklahoma,
emptive rights.
New England Public Ser¬
Lukens. Steel
Co.
filed a
registration
Louisiana, Arkansas and Arizona.
Under Republic Co., Inc., Davis Skaggs & Co., vice Co. has subscribed for and agreed to of exchanging the 6% cumulative preferred statement with the SEC for; $2,200,000
Roth
&
Schoellkopf,
East¬ take the 261,910 shares, less any shares istock,. par $50,; for the debentures on a
a
plan of integration, and; simplification, Doolittle,
,4j/4 % sinking fund debentures due 1952.
proposed to be consummated under section, man, Dillon & Co., Estabrook & Co., Gold¬ as may be subscribed for by stockholders, dollar for dollar basis and or exchange for
Address—Coatesville, Pa.
11 ,of
the Holding Company Act simul¬ man, Sachs & Co., Graham, Parsons 8c Co., and to pay therefor in cash at $10. per deposits made by non stockholder members!
Business—Steel manufacturer
1 •
Amendment filed Sept. 12, 1942, to defer
taneously with the consummation of the Granbery, Marache & Lord, Hallgarten & share provided the proposed merger be¬
Proceeds—Payment of bank loan
*•
^• '1
present proposed financing, the* company Co., Harriman Ripley & Co., Inc., Harris, comes effective
■ ,
" effective, date Registration Statement No. 2-5003. Form
Hall & Co.,
Inc., Hayden, Miller & Co.,
proposes to effectuate the following trans*,
Proceeds—Statement says that prior to
-2, (5-29-42) „"
EQUIPMENT
FINANCE
CORPORATION
actions: Merger of Community
Power & Hemphill, Noyes & Co., Hornblower & the issue of the securities now registered,
In an amendment filed by the Lukens
Equipment Finance Corporation has filed:
Light Co. and General Public Utilities, Inc. Weeks, W. E. Hutton & Co., Johnston, Cumberland County Power 8c Light Co., a
Steei Co. covering the registration of $2:
a registration statement with
the SEC for
(the two present parent companies of the. Lemon & Co., Kay, Richards & Co., Kebpublic utility incorporated
in Maine in
200 000 4%%
sinking fund debentures. th»
5,000 shares of common stock, no par value
bon, McCormick & Co., Kidder, Peabody
company) into the company; liquidation
1909, will be merged into tfie company and
underwriters and the amounts to be pur¬
Address—Chicago, 111.
of
Texas-New
Mexico Utilities Co.; re¬ & Co., W. C. Langley & Co., Lee Higginson Central
Maine
will
thereupon
acquire,
chased are given as follows:
'•••
'
Business—Short term financing etc.
Corp., Loewi & Co., Laurence M. Marks &
capitalization and partial liquidation ol
pursuant to. an agreement of merger, the
Name
•
:
Amount
Underwriting—No underwriter named
Gulf Public Service Co.; purchase of Pan¬
Co.,
Mason-Hagan, Inc., Milwaukee Co,, business and all the rights, powers, etc., of
H. Rollins 8s Sons, Inc.™..
$874 00Q
Offering—Issued
prior
to
registration
for
handle Power & Light Co., Cimarron Utili¬
Newhard, Cook & Co,, Newton, Abbe & Co.,
Cumberland.
After the merger
has be¬
Allen & Co._
GOoioOQ
cash and property 2,007 shares at $100 per
ties Co. and Guymon Gas Co.; and re¬
Paine, Webber, Jackson & Curtis, Putnam
come
effective, the business of the com¬
•
186,000
share, and 2,993 shares are to be publicly Pistell, Wright & Co., Ltd
& Co., Rauscher, Pierce & Co., Inc., Riter
funding of the entire outstanding funded
pany will Include also the business; fran¬
Stroud & Co., Inc.
150,000
offered at $100 per share
debt of the company itself.
Upon comple¬ & Co., L. F. Rothschild & Co., Schwabacher chises and properties of Cumberland, the
Graham, Parsons & Co-.___
100 000
Proceeds—For trucks, land, building ad¬
tion of the transactions involved in fore¬
& Co., Chas. W. Scranton & Co., Shields
separate
existence
of
which will have
100 000
ditions, improvements and garaging facil¬ Biddle, Whelen & Co
going, it is expected that the company will & Co., Shuman, Agnew & Co., I. M. Simon
ceased ;!
V
V
Vallance & Co
- *100000
ities
have* no parent
& Co., Smith, Barney &• Co,, Stein Bros.
Net proceeds from the financing in ac¬
50^000
Registration Statement No. 2-5023. Form Boenning & Co
Underwriting—Dillon, Read & Co., of & Boyce, Stix & Co,, Stone & Webster and cordance with the merger plan recently
Bond & Goodwin, Inc.„
40 000
S-2. (6-27-42) !
■: .•::;.,vVA;i
New
York, is toe principal underwriter;., Blodget, Inc., Stroud & Co., Inc., Spencer
filed with the commission will be used as
Offering price .to, the public will be 'lOO.
Amendment filed Aug. 11, 1942, to defer
the names of the other underwriters will
Trask
&
Co.,
Tucker, Anthony & Co., follows:
;■
plus accrued interest from June 1, 1942.
effective date
' V
be supplied by amendment
Union Securities Corp.; Whitaker &
Co.,
Net proceeds of the series M bonds will
Registration;
Statement effective - 5'30
Equipment Finance Corp. filed on Aug.
Offering—The bonds, serial notes and White, Weld: & Co., Williams, Parmele & be used to pay principal and premium In
p.m. EWT on July 28, 1942 as of 5:30 p.m.
13 an amendment to its registration, state¬
6%
preferred stock, will be sold to the Co., Inc., Wisconsin Co,, Harold E. Wood the redemption at. 105%. on Oct. 1, 1942,
EWT
July
12,
1942
y
ment
in which
the proposed offering is
public, at prices to be supplied by amend¬ & Co.
of $1,494,000 face amount
•.
''
of first mort¬
stated as follows:
Sold prior to registra¬
ment
NU-ENAMEL CORPORATION
VV
Registration effective 5:30 p.m, EWT on gage, 4% series, due 1960, of Cumberland
tion
to
employees of Curtiss Candy Co.
Proceeds from sale of the new securities
Nu-Enamel Corporation filed- a registra¬
Sept. 14, 1942, as of 5:30 p.m. EWT Sept.
Power, $1,538,060; to pay
principal and
1,238 shares of common, no par value, at
■will be added to the company's general
tion statement with the SEC for 106 500
premium in the redemption at 105 Va% on
14, 1942■
$100
per share and offer of rescission is
funds and will be applied to effectuate the
Offered Sept.
shares of common stock, $1 par value '
15, 1942, the bonds at a date in 1942 to be announced of $9,275,being made re above shares, to be publicly
various financial transactions involved in
Address—8 South Michigan Ave.; Chicago
000
face
amount
first mortgage bonds,
107 Va and int., the notes at prices ranging
offered at $100 per share, 2,993 shares for
the plan of integration and simplification,
Business—The company is engaged in tbq
from 97.09
to 102.29 and int.,, according
3 V2 %
series,
due
1966
of
Cumberland
total
of
$299,300.
Purpose of
issue as
and the refinancing of the company's out¬
distribution
and sale of enamels, paints,
to maturity, the preferred stock at par and
County $9,784,348 and to pay bank loans
amended
includes
wagons,
'
horses
and
standing funded debt
made by the company which were incurred
the common stock at $5 per share;
varnishes, linoleum finish, stains, polish
facilities
for
operation
of horse-drawn
Registration Statement No. 2-4981. Form
for
the
and kindred lines, which; are principally
purchase
and
construction of
vehicles.
v.;;'1
A-2. (3-31-42).
facilities $2,650,000.
BOND INVESTMENT TRUST OF AMERICA
distributed under the
trade* name
"NuRegistration Statement—Effective 12:45
Southwestern Public Service Co. on Aug.
Net proceeds of the serial notes and the
Bond Investment Trust of America has
Enamel."
The products sold by the com¬
p.m., ESWT on Sept. 2, 1942, as of 5:30
31 filed an amendment to its registration
common
stock will be used to pay par
filed a registration statement with the SEC
pany
are
manufactured by
Armstrong
p.m. Aug. 11, 1942.
.. : vv :; ; 'statement
fixing the proposed
issue of
and premium in the redemption on a date
Paint 8c Varnish Works, of Chicago, under
for 41,544 units of beneficial interest. Total
3%% (int. rate fixed at 4% by amendment
to, be fixed in 1942 of an unspecifed num¬
includes 1,544 units of beneficial interest
contract in accordance with, the company's
FLORIDA POWER A LIGHT CO.
filed Sept. 8) first mortgage and collateral
ber
of
shares
of
6%
preferred
stock
and
now issued and outstanding
to the extent
formulae and specifications
/
Florida
Power
8c Light
Co. registered
trust bonds due 1972 at $20,000,000, the
that the same may be repurchased
and an unspecified number of shares of 5Va% with SEC $45,000,000 First Mortgage
Underwriting—Floyd D. Cerf Co. is the
amount of serial notes at $6,000,000 and the
thereafter reoffered, together with 40,000
preferred stock of Cumberland County at
principal underwriter. '
-■
bonds, dufr Oct. 1* 1971; $10,000,000 Sink'
amount of preferred stock at 60,000 shares,
130% and 110%, respectively, all of which
units authorized but not heretofore issued
Offering—The principal underwriter is
lng Fund Debentures,
due Oct. 1, 195A.
all issues to? be offered to public through
shares are to be called for redemption by
Address—49 Federal Street, Boston, Mass.
granted the option, until close- of business
and
140.000 shares Cumulative Preferred
underwriters.
The $1 par common stock
Cumberland County prior to the proposed
Business—Investment trust
Stock, $100; Par.
Interest rates on the Dec. 31, 1942, to purchase at $1.50 pep
is to be
converted under
curity which the several

agreed

purchase

to

.

.

.

..,

®tatement NOi 2-4997., Form,

.

,

,

offered first to;

shares)

(185,000

Underwriting—Whiting, Weeks &

holders
of
Community
Co. and of General Public
Utilities, Inc., other than Community as a
stock

common

Power

stockholder
made
'

i

the unsubscribed
be sold through underwriters
amendment to its registration
filed with the Securities and

-Sept. 9, 1942. Proceeds—For

through warrants,

shares, to
In

offering to be

of General, the

an

statement

Commission on Sept.
10, the
Public Service Co. lists the
and the amounts underwrite
ten
on
its proposed offering of new se~
curities. The registration statement covers
underwriters

.

investment.

Registration, Statement. No. 2-5037. Form
A-l. (8-21-42)
: <: •:* ;• i:'];
V*->
Offered Sept. 10, 1942 at $99.39, per unit.
Public offering price figured twice daily.
Units offered; by Whiting, Weeks & Stubbs,

Exchange

Southwestern

$20,000,000 first mortgage
trust bonds, 4% series due

Stubbs,

principal underwriter
Registration effective 5:30 p.m. EWT on

Inc., Boston,

& Light

Adams & Co., Inc., R. L. Day
Estabrook & Co., Kidder, Peabody
Paine, Webber, Jackson, 8c. Curtis,

Inc., Ballon,,
&

Co.,

&■

Co.,

Stone

and collateral,
1972; $6,000,000 Tucker

&

Webster, j>nd

Blodget, Inc. and

Anthony & Co*

Following is a list of issues whose registration
filed less than twenty days ago*
These

ments were

stateissues

grouped according to the dates on which the registrar
tion statements will in normal course become effectivet that
is twenty days after filing except in the case of the secur¬
ities of certain foreign public authorities which normally

are

unless otherwise specified* are as
P.M, Eastern Standard Time as per rule 930(b).
Offerings wilt rarely be made before the day
ing*
- ■: '
'•
VvV.; ; ■; J,
.

OF CHICAGO
University Club of Chicago; has

other

filed a
statement with th.e SEC for
principal amount of 4% deben¬

registration,

amount of debentures for each
Association of- $100 par value,
than shares of the Association owned

the club
Registration Statement No.
E-l (9-8-42)

Street, Chicago,

'

111,,

;

V

operated since
its
organization in 1887 and intends to
continue to operate as an organization for
Business—The

club

OF OFFERING
UNDETERMINED

DATES

has

social and fraternal purposes.

stock and is not operated
profit but is operated solely
for the benefit of its members
Offering—At the time of construction of
the club building presently operated by, the
club there was organized under the laws
of the State of Illinois, a stock corpora¬
tion
known
as
the University Auxiliary
Association.
The shares of that corporation. were largely subscribed by members
of the club and the association used the
funds so obtained for the construction of
the club building.
The club now proposes
to offer its 4% debentures—being the se¬
curities registered hereby—in exchange tor
the outstanding shares of the association,
other than shares of the association owned

whose

days

twenty

It has no capital

offering

for pecuniary

mined,

and upon acquisition of such
shares, or such proportion thereof as shall
be approved by the board' of directors of
the club, to
cause the association to be
dissolved and liquidated.
It is considered that the issuance of the
4%
debentures, of the club in. such ex¬

by the club,

"reorganization." within the
definition of that term set
forth in paragraph 5M1)' of the- rules as to
the use' of Form E-l as, constituting "the
exchange of securities by the issuer thereof
for
securities of another
issuer."
The
club proposes to offer its 4%
debentures
in exchanges for shares ,of the University
AuxTliary"Association on the basis of $100.
change

is

a

purview of the

*

•




•

».

e

a, -

r\r\

or

dates

or

are

more

have

but whose
been deter*

ago,

not

unknown

serial notes at private sale.
On July
company filed; an amendment
the SEC to withdraw the proposed,
notes
from
registration and such with¬
drawal was approved Aug. 19, 1942
Amendment filed; Sept. 10, 1942 to defer
1942,

16,

COOPERATIVE WHOLESALE,

EASTERN

UNION INSURANCE CO.
Insurance- Co. filed a

Unioa

statement, with, the SEC for
stock, $10 par value
Address—San Francisco, Calif.
Business—Engaged; to the underwriting
of fire, automobile and other forms of
registration

29,659 shares common

insurance

Underwriting—Paul H. Watson is

named

principal underwriter; Don B. Wentworth
may be an underwriter
Offering—The common stock registered
will be offered to the public at a price
of $22 per share
Proceeds will be used for additions to
capital and surplus

Registration Statement No. 2-4992. Form
A-l (4-30-42 San Francisco)
Registration, effective 1 p.m.. ESWT on.
June 6,. 1942.

Cooperative Wholesale, Inc.,

Eastern

states that $50,000
in maximum
principal amount which shall mature in
1944 and
$30,000- is maximum principal
amount which shall mature- in any one of
other years

Address—135

: .. ,,
; "
Kent Ave., Brooklyn,

products,
activities,

aging

cooperative

2*484jS«

Maine

Registration effective 5:30 p.m. EWT or*
Sept. 14, 1942, ;
;
,

STILLWELL

iV

Finance

statement

ganized

shares

class

A

Form

movement

without the inter¬

-

such sale

Proceeds—Will be used to- repay

certain

and also, to. reduce certain
payable now outstanding for cur¬
the balance to be used
for working capital
Registration Statement No. 2-5002, Form
private loans

accounts

rent merchandise,

(5-27-42)

Business—Plans to

Offering—The

on

18,

la the

HI.,

sole

its

underwriter. The
unit

old

common

Form

to defer

statement

Steel

with

due

Co.

SEC
1948;

filed registration
for $500,000- 5%

warrents to
stock; and 75,000 shares
1,000

Power Co.

$10

share.

.

Stillweli

Worsted.

Mills*

Worsted

in

York

New

to

intend

the

and-

new com¬

to

new

engage

has engaged

and
r •

engage;

intends
;1 ;.

to
«

also plans to issue and

company

The
pany

statement

has

says

present

no

that the new com¬
intention of issuing

(hpmPfn!e"etd
shares,'
planning
to hold?
ultimate
conversion
of thepro¬

them for
ducers

common

shares.

?eFjsioa^n
statement
No.* 2-5041. Form/
(o"«o'h44)
i

A**

v

•

.

Amendment filed Sept. 14,

1942, to defer

effective date

1942,

—

of

group of ap-*

varying from 2-to 5%

a

LONE STAR STEEL CO.
Star

of.

sale'

shares

outstanding $2,910,000 of first mortserial bonds, maturing from 1944 to
1967, which will carry an interest rate

effective date

Lone

a

pro¬

for

have

(3^18-42)

debentures,

offered to

located

not

company,

The

reserves

Amendment filed Sept. 14, 1942,

60,000

The statement says,

does

continue

stock; thereafter
the right to reduce the
number of common shares to be included ir
each, unit of class A stock
Proceeds will be used for working capital
4-1.

of

shares

offered

in thebusiness of top manufacture in which the

pany

July 30* 1942 to defer

Registration Statement No. 2-4968.

be

The

Stillweli

cloth

Illinois.

J

4 shares of

of

ished

Chi¬

Offering—The class A stodk is to
in units of 4 shares, at a price ol
$110 per unit. With at least the first 900
units, there will be included with each
company

60,000

acquire prop¬
Mills, the 'oldcompany, located in Rhode Island. Virginia
and Connecticut and certain stocks of fin-

sold

unit

share.

a

;

shares

the

to

are

subsidiaries.

erties

underwriting commission is $8 per
effective date

$10

30,000

Inc., thp. new, company will

avenues for longer
borrowing from customary sources

Amendment filed,

manufacture,

proximately 30 executives and key em*
ployees of the old Stillweli Worsted Mills
and the 30^000" shares of producers commorV
stock,, to other persons, than above now
emptoyed by Stillweli Worsted Mills and

whose debi

Preston & Co.,

stock

common will be

company

enterprises, until the financial positions
the borrower or a change in general

Underwriter—H. M.

value?

common

in business of
in¬

engage

cloth

and

common

common

capital markets open
term

and

yarn

ducers

structures are being adJusted or reorganized by its wholly-owned
subsidiary., H. M. Preston & Co. A second¬
ary function is to loan money, with funds
not used In Its primary function, to pro¬
vide
"interim"1 or intermediate financing
of

of

cluding dyeing and finishing

capital

and/or

$10; par

shares

60,000

$10 par1 value
:>*.
..
?■:■■■ *
Address—East Avenue, Harrisville, Rhode

T

Chicago, 111,

is to loan money to enterprises

and

Island

at

Business—Primary function of

Statement effective 1 p.m.,
Aug. 1, 1942 as of 5:30 p.m. EWT

Registration

value

stock,

stock, $25 par; and 25,232

Address—33 N. La Salle St.,

with

preferred; stock,

filed a registra
SEC for 39,912

the

filed a registration
the. SEC covering 30,000

30,000 shares producers- common stock, $10

CORP.
Corp.

<

has

company,

statement

V/;, VV' V'Vi/V'V'V

with

'

MILLS,! INC.

WORSTED

Stillweli Worsted.Mills, Inc.r/a-newly or^ ;

to defer

purchase common,
Ellicott
Drug Co. filed
a registration
filed a regis¬
no par common
stock
statement witto the SEC for $350,000 6
tration statement with. SEC for $14,500,000
Address—Dallas, Texas
debentures, due June 30, 1957.
first and general mortgage bonds, Series
Business—Company
is engaged to
Address—120 Cherry Street, Buffalo, New
M, maturing July 1, 1972; $5,000,000. tenmanufacture of pig iron and steel
Y*rk
year serial notes, maturing serially on July
Underwriting
—
Nq
underwriters
Business
Company Is
a
cooperative
1 from 1943 to 1952, and 261.910 shares of
named in registration statement
wholesale
drug
company,
selling to its
..4/i
{common
value
per
i.to'i V
V U"> / >•; l-J.-V." .1
5
.f, i >
5-ii;
n.'
r stock, par
Central

Corporation on Aug. 26. filed
an
amendment .to, its • registration . state*
ment giving the public offering pripe at'
$2 per share v •
, v.y - ■ - . • • •

as

Sept. 5, 1942,

,

position of any. underwriter,, dealer, broker
or
salesman, at. 100.
No, commission will
be
paid to anyone, to conjunction with,

Nu-Enamel

worsted

cago,

■

Underwriting—No; underwriter named
Offering—The securities are being soldi
by the Cooperative directly, to its stock¬
holders
and
friends
interested
to the

July

'

.

INTERIM FINANCE

to

N. Y.

groceries
among other

dealer in

including,
warehousing and pack¬

ELLICOTT DRUG CO.

CENTRAL MAINE POWER CO.

(9-17-41)

effective date

filed,

registration statement with the SEC for
$150,000 4%
registered debenture^ bond*
maturing July 1 of each year from 1944
to 1956, inclusive (exclusive of 1950). Com¬

EWT

applied

Form'
v:*

Registration Statement No. 2-5029.
A-2. (8-1-42)

par

Amendment filed

a

S-2.

already issued and proceeds will go to. the

shares common stock, $1 par

INC.

the

the public- will be supplied by amendment
Proceeds—The shares to be offered ard

V i-.y

be

will

Registration- Statement No.

tion

related
California

^

Proceeds

Interim

effective date

by the principal underwriter- from;
selling, stockholders, Offering price to

the

Names of underwriters and
will be supplied bp post*
to registration stats

menfc

A2.

of. said1 shares.
has agreed to

any

underwriter

a

chased

effective amendment

with

allied

CALIFORNIA

5, 1942,

request with the SEC to withdraw
data in view of decision to
the proposed issue of $5,000,000 10a

shares of
from: C. L.

company,

finder's fee to American Industries
Corp., Detroit, Mich., in the amount of 5
cents for each share of common stock pur4

to. pubHo,

price

the

Individual sellers of the shares,

Act.

pany

principal

pay,

Underwriting and

amendment

(6-29-42)
Central Maine Power Co. on Aug.

The

twiering—1The aecurl
ties registered are to be sold by companj
under the competitive bidding Rule U-5C
of the SEC's Public Utility Holding Com¬
*

part of 72,500

of

to purchase

mitment

of

Florida

of

any

Lloyd and all or any part of, 34,000 shares
from Gladys Lloyd.
There is no firm com-i;-.-

Miami

Ave.,

Second

subsidiary

sell

2-5024. Form

A-2

Business—Wholesale

to us*.

E.

B.

Business—This

or

stock

common

■

.

.

share all

v

Americas
Power
tc Light
(Electric Bond 8c Share
System) is an operating public utility en¬
gaged principally to generating, transmit*
ting, distributing and selling electric en¬
ergy
(also manufacture and sale of gas)
serving most of the territory along the
east coast of Florida
(with exception of
the Jacksonville area), and other portions

pany

below a list of issaei
registration statements were filed
present

We

r'J)

trust indenture

pany's business.
Registration Statement No.

by

2-5042. Form

preferred stock,

Address—25
Fla.

year

follow¬
' ;V\

30, 2105

Address—76 East Monroe

educational,

of 4:30

the

dividend
will be sup

and, the

Debentures,

and

on

priled by amendment

follows
$53,170,000 to redeem at 102y4, the $52,
000,000 of company's First Mortgage 5s oi
1954;- $15,693,370 to redeem at $110 pel
share,
the
142,607 shares of company"
$7 preferred stock, no par.
Further da
tails
to
be
supplied
by
post-effeotiv*

share of the

UNIVERSITY CLUB

due Sept.

amendment.
Additional net. proceeds from the sale of
serial notes and common stock will be used
to- acquire 300 shares of the- common stock
and $6,000 face amount of 5% debentures
of Aug. 1, 1936, due Aug.. X, 1956, of Nepsco
Services. Inc.,. and 10 shares, of common of
Nepsco Appliance Finance Corp. $9,100 and
to acquire all of the 650 outstanding shares
of the no par capital stock of New England
Pole & Treating Co. $110,000.
Balance of net proceeds of the series M
bonds,, the serial notes, and common stock
will be used to redeem at $120' per share
or
otherwise ; retire on or before Oct. 1,
1942, an unspecified number of shares of,
7%
preferred stock of the company andfor
the
purchase and
construction of
facilities for the carrying out of the com-'
will be supplied1 by

tion

principal

SUNDAY, SEPT. 27

*

rate

merger

pany

filed

These dates*

$802,500

Bonds

of

days.

become effective in seven

tures

and
the agreement
into an obligation of the com¬
to deposit the redemption price there¬
of in trust for the holders of suclv shares.
The amount to be utilized in such redemp¬

merger

THE

TRION

The Trion

tion

COMPANY

Company has filed a registra¬

statement

shares

of

7%

with

the

cumulative

for

6,000

preferred

stock,

SEC

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

par
the

Business—Company
ishes

are

and

fabricates

manufactures,
cotton

goods

plant at Trion, Ga.
.1 Underwriting—Courts

ui'r'iy

n';?.

in

fin¬
its
"

&

v.:

Co.^

Atlanta,
j.K.ii.r*

Volume

156

Number 4108

-

COMMERCIAL & FINANCIAL
CHRONICLE
983

Ga., is named principal underwriter.

i

"■

tunderwriters

'

r

will be

Other

of

named by amendment.

Offering—The 6,000 shares registered

are

4 issued

and outstanding and are
being of-,
fered for the account of a
corporation and
individual stockholders. ' The
price to be

■

Proceeds—The

*■"j.celve

of

any

,

net

t.

,

Is

Amendment

aggregate

17,000
of . the

stock

of

is

the. holder of
shares
registered.
shares

of the

the

company,

offered
to
the public, at
supplied by amendment *

and

a

be

to

be

price

re-

which

will

filed Aug. 31,

".Vl

<U'-.

-

Business'—This
Co.

transmission,
trie
;

energy,

ehases

,

the

for

SEC

stock,.

';*'*•

American

no

par

V i'

•*

Vyo

'

subsidiaries,

'.city of St. Louis,
adjacent Missouri

Mo.,

!

portion
of

and

of

3

8

,

York,

is

; Names
■*
•'

,

of

lean

President

Co.,

from

the

Union

'. 9,

to

the

filed

141

owned

of

shares

and

of

maximum
stock

the

'■

,

;

Amendment filed
effective

date

UNITED

GAS

levels

not

time

mortgage

and

$75,000,000

collateral

3V*%

Street, New York City
Business—Production and sale of natural

,

•

Proceeds—To
Public

redeem

Service

1953; to pay 6%
000

$28,850,000

to

Electric

6%

United

Debentures

demand note of

Bond

and

agricultural commodity shall

Share;

to

bonds
part

due

to

1961.

Balance

reimburse

will

be

used

treasury for capital

in
ex¬

penditures and possibly to
pay accumulated

dividends

of

$9,502,490

on

$7

companys

preferred stock
,

Registration
> A-2 (5-15-41)
■

United
SEC

on

been

*

-y-/.

Gas

to

further

agreements

with

extend

14

the

pur-

insurance

com-

panies covering the proposed
private
', to such insurance
companies of
of

the

company's

lateral

<

trust

sale

$75,000,000
mortgage and colbonds, due 1959.
This

first

3Ya%

amendment

states: "These purchase
agree¬
expired on Feb. 16, 1942.
The corporation intends to continue
negotiations

to

:

the

end that its bonds shall
be eithe?
by renewal of the afore¬
agreements or
otherwise, or offered
to the public as
circumstances shall dictate
in order to obtain the
pest possible
sold

ov

Address—4th

&

Business

Main

St.,

Operating

—

•

company

fer

to

for

,

in

to

Gas

utility

&

each

unit.

Electric

of
On

receive
of

6/94ths

of
a

share

a

share

subscribe

may

will

25/94ths

units

5/94ths

each

one

of

held

of¬

com¬

share

a

at

$5.32
stock¬

basis,

to
5
new
sharer
$100,018 per share.

share held at

Substantially all outstanding stock is held
by Columbia Gas & Electric Corp.
Proceed*—To

$2,835,000
parent

repay

first

and

current

mortgage

associated

construction

debt

bonds

and

held

companies,

costs

f.T-30-40)

Amendment

<

filed Sept.

effective

West
tration

SUGAR

Indies

Sugar

common

E.

to

tain

of

company

everal

cipally

plan

Dominican

ing

its

a

regis¬

453,691

stock, $1 par
42nd

the

filed

the SEC for

St.,

Business—Company,
pursuant

CORP.

Corp.

statement with

Address—60

Cuban

1942, to defer

date

INDIES

shares of

,

>

1,

-

WEST

New

York Citv

organized
of

subsidiaries,

Corp.
is

owning

in

1932

reorganization

Sugar

and

solely

the

a

of

cer¬

hold¬

securities

of

operating subsidiaries engaged prin¬
in

the

production

sugar and Invert
in the Dominican

Underwriters

and

of

raw

cane

blackstrap molasses

be

named

by

amend¬

Offering—The

„

t,

shares

outstanding,

and

registered
are

owned

are

by

City Company of New York, Inc., in ddsthe extent of 436.691 shares:
National City Bank of New
York, parent

solution., to




the

shall

not

be

the

salaries

and

and

wages

the

-j;

v

-

•/:'

No time limit is set

on

in¬

for

Sil ^reas
M.

close

the

spending

goods available for

use.

have

therefore

be

said

on

program, including

spendings,

part

a

would be treated

as

large part of

of

sale of

war

gardless

of

the

until the

war

Beginning October
reBe
taL^ Extended ;;; J?;'

that

of

the

them
the

is

other

than

are

so

the

rationed

area

now

more

precious than gold.
do

cannot

•

:

Jeffers

war

1930

and

and will terminate
sumers
a

capacity

the

Sept. 30.
fill their tanks

may

will

of

not

coupons

275
be

Con¬
up

gallons.

to

This

charged against

which

will

be

dis¬

tributed

by the Office of Price
Administration which has been

of the

Apalachicola River, and the

District

is

con¬

•

western

sumers

to 50%

of tank

permitted

other than

for

capacity
all

com>

private dwell¬

ings.
Actual

through

rationing
coupon

of

fuel

books

will

begin

until Nov. 30, due
immense amount of work

to

oil
not

the

required

in

printing the books

up

the system of distribution.

and

setting

covering

the

amount

re¬

ceived will be surrendered when
ration books are
issued, equivalent
to

any

such

deliveries

on

and

The

Mid¬

of

the

1932.

to

The

say

The

in

Supervisors
National

canceled

which

of

of the War Production

Minnesota,
Missouri,
Nebraska, J North Dakota, Ohio,

South Dakota and Wisconsin. The
of Oklahoma and
Tennessee
not

western

included

in

forty-first
annual
because of difficulties

of transportation and other com¬
plications resulting from the war,

it1 is

announced

Mid¬

tion, in Salt Lake City, Utah. The
convention

to have been held

was

late

said he

1.

organized

was

in

z,;,^ v','

.

the supervisors will hold
ence

month.

place of the annual meeting,
in

Philadelphia

on

a

confer¬

Nov.

16

and 17 to consider questions aris¬

Board, who

was

Mr, Nel¬

delegating all his

war

from

the

war

and

possible

effort, Mr. Starley said.

tions of this

"The

a

larger

r;

3.

Eastern

winter.

In

an

this

problem,
must
sharply
sumption

of

Seaboard

fuel

effort to

facilities

ticut, Delaware, Maine, Maryland,
Massachusetts, New Hampshire,
New Jersey,
New York, North

tressing.

for

to

areas

reduce

fuel

oil

available

The Eastern Seaboard area
is
made up of the States of
Connec¬

shortage

The Interstate Commerce Commission.
The courts cannot CHANGE

the

their

con¬

in

order

7.

is

transportation

the

situation

dis¬

rationing, which is

that
now

can

This ruling states that any
corporation, railroad or otherwise
in bankruptcy earns its interest and does not
pay

8.
-

acute

a plan.
They can DISAPPROVE
send it back with suggestions.
The three main steps in present day railroad
reorganizations
are: The ICC plan is certified to the
court, time of court ap¬

They

it, then the

amount they earn is taxable, both from normal or otherwise.
If they do not pay it to the
bondholders—they will have to

to

East, where the
more

$1,000,000 worth

proval, consummation.

alleviate
west

situation threatens to be

with

6.

a

year,

4.

this

deterioration of the

railroad which does

5.

Area

the

a

a

Pocahont^l roads: Virginian, Chesapeake & Ohio.
Industrially
owned carriers: Missabe & Iron
Range, Chicago and Illinois
Midland, Bessemer & Lake Erie.

it.

-

a

rate structure.

A class I railroad is
of business

Information,

country, said:

serious

Unregulated competition which caused
.

2.

some sec¬

even

In

committee.

this

cancellation since

Answers To Questions "Securities Salesman's Corner"

in connection with the
above deci¬
sion to ration fuel oil in

"So

F.

ing

rationing will not be uni¬
through the rationed areas.

make

Rulon

changes in policy to promote the

■

Some sections may obtain
quota than others.

faces

by

Starley, President of the Associa¬

of President Roosevelt.

Mr. Nelson stated.

form

of

has

area

justify the im¬
position of rationing at this
time,
The

Banks

said his selection had the approval

son

the

because the number
of fuel oil burners in
(those States
is so few as not to

Association
State

its

convention

appointment was announced
Donald M. Nelson, Chairman

Michigan,

Pacific

Since 1937 Mr.

been President of the

Supervisors

on

to carry on

Baruch

Union

to

Vice

Cancel Convention

bond

war

gram, to carry out the recommen¬
of the

Executive

columns today.

Bank

Rsbber Administrator

dations

North

report is referred to elsewhere In
these

unselfishly engaged."

by

area

The Office of War

However, after Sept. 30 oil de¬
liveries will be resumed on a ra-*
tioned basis upon issuance
by the
person
receiving such deliveries
of a written
guarantee that cou¬
pons

Columbia.

in

The Baruch committee's rubber

hun¬

counting

work

includes
Illinois,
Indiana, Iowa, Kansas, Kentucky,

delegated by Mr. Nelson to carry States
on the
rationing program. Deliv¬ were
eries up
will
be

of

born

system.

pro¬

William M.

■

We do not

Jan. 12, 1876. and

became

President

may

•

talking

more

now.

was

on

y;

■.

•

any

career with the Union
Pacific System in 1890 at the age
of 14.
He was Vice President in

W. M< Jeffers Named

probable consumption

a

car, to remember that
the custodian of a ma¬

he is

began his

War Production
Board, on
rationing for 17 Eastern Seaboard States

that

motorist,
everybody

a

terial

Mr.

belief

our

like

ever

magnificent

they

of

should

nation

more

every

driver,

we

auto¬

our

measures

To

won.

thousands

I

ask

truck

Platte, Neb.,

that are needed,
the voluntary
savings program will be essential

volunteers,

with

I

The

rubber

need talk; we need action."

tinue to produce a great contribu¬
tion to the nation's war effort. Re¬

the first witnesses.
The President's
message to Con¬

States.

of

the wheels of

about the matter

bonds

voluntary war bond
gram has produced and will

as

United

financing. The charge of
operations from 1028

our

that the

Henderson

a tough
job.
job for all the peo¬

stockpile

runs

"I

I have

a

the
on

every

which

my

Committee opened hearings
on Sept. 15, with Secre¬
tary of Agriculture Wickard and
its bill

Nelson, Chairman of the
oil

of

military,

a

collapse.

means

be continued and intensified.
As I
said to the Senate Finance Com- i System in
I Jeffers has
mitte last week, it is
1

rency

dangerous that, un¬
steps, this

so

take corrective

we

who

tax

a

mounting requirements of the
our

situation is

mobiles.

taxpayer and repaid after the war.
'■;; We
shall, | however, continue to
the Pres¬
rely upon voluntary lending ..for

demand that

in the Baruch
report, in which it
said that the
existing rubber

is

biggest

debt to the

a

com¬

a

and "intends to do what¬
is necessary to carry out the
assignment."
He further stated:
"I am mindful of the words used
ever

ple

comprehen¬

*

work"

have is

it

'

Jeffers

supplemented

a more drastic and

sive tax

that

'

Accepting the appointment, Mr.
said he was
"already at

...

"This

and

I

by

maxi¬

consumer

matter

decision, and; I

But it is also

gap

problem

a

know he will do this
job.".

and civilian

rising

the supply of
must

gency Price Control Act of 1942.
Tne Senate
Banking and Cur¬

Fuel Oil To Be Rationed

day to enlist
savings for the war.

civilian

dreds

15. ordered fuel

and ad¬

any kind

any
connected with rubber is
Mr. Jeffers's

country will face both

night and

cannot

able

ing between Jan. 1,1942, and Sept.
15, 1942.
it also declares that no gress was given in these
columns
employer shall pay and no em- of Sept. 10, page 889.

Donald

do

can

for

less

be¬
tween the amount of
money avail¬

powers in the House bill
but the Senate provides that
they
on June 30, 1944.
:, Both
bills
amend
the
Emer¬

Administrator

hundreds of thou¬

voluntary

alone

would terminate

on

the

expenditures I have said that
war bond program

the

dustrial wages as will
bring about
and maintain a fair and

prices for agricultural

to

nation's

war

final enactment.

maximum

bond

war

swiftly

As to wages, the House bill
pro¬
vides that the President establish

"such

voluntary

His statement
goes on to explain:
"In view of our

less

parity prices or the
highest market price reached by
a
given commodity during the
period from Jan. 1, 1942, to the
of

statement designed
the impression that he

the

working

war.

farm

new

appearing

Sept.

ingly competent executive
ministrator who

proval of the President, and I am
delegating to him all my authority.
From this point on,

sands of devoted volunteers
in all
parts
of
the
country who are

during

that

ident's

orders

any

after Oct. 1.

Republic and Cuba

will

ment

already

ceilings

tion below highest levels
prevail¬

by

ami for

Registration Statement No. 2-4379. Form

A-2

price

than the

Price

fuel

subscribe

share
each

holders
for

Cincinnati.

electric

Columbia

—

Offering—Stockholders

for

level

stipulates

modities."

with

who knows Mr. Jeffers
that he is an exceed¬

one

knows also

Jeffers, President of
in Philadelphia
the Union Pacific Railroad, was
Carolina,
Pennsylvania,
Rhode
Fuel oil deliveries on the East¬
named
Rubber
Administrator on This is the first
Island, South Carolina, Vermont,
ern
Seaboard, shut
off
since Virginia,
West
Virginia
and Sept. 15 and placed in complete the association
Aug. 3, were resumed on Sept. 16 Georgia, that part of Florida
east charge of the entire rubber pro¬ 1902.

re¬

\

■

further

call

100%

and for three years after the

It

mum

or

inconsistent

by

making the appointment, Mr.

"Any

store¬

formal

a

justice

later, and warned consumers to convert heating
equipment to coal because there may be even a
shortage of electricity
natural gas in the rationed#—-————-————*•

common

■

tJwderwi iter

mon

Co.

for

The

on
Sept. 11 that "this is not
only a
distortion of
anything I have said
on the
subject but it is also an in¬

and

POWER COM¬

v.-.3,-

'. Ohio

Corn.-

parity

of

•

Light, Heat and Power
25,000 shares $100 par

stock

v

floor

have to be extended

11, 1942, to defer

UNION LIGHT, HEAT AND
PANY
"V':;.', :.'
v:

Union

price

new

Federal agency on
cases pending before
Sept. 15; and
(3)>be used to reduce compensa¬

areas.

gistered

faim

a

reduction

price."

Amendment filed Sept.
effective date

In

The

a
"failure," Secretary
Treasury Morgenthau said

1

the

and for 13 Midwestern States
by Oct. 1,
of at least 25%.
He added

privately,

said

•

be

issued

ments
'

merely

alone.

pro¬

ap¬

regards

Corp. filed amendment with
Feb. 21, 1942,
stating that it had

unable

chase

.

Statement No. 2-4760, Form
-

householder,

front.

program as
of the

include all costs of

Steagall bill would also

industrial

has been

one

highest market price be¬
Sept. 15, 1942. • '
The wage and salary
provisions

(2)

repay

the

not

rubber

Jeffers, who, in turnr

Nelson said:

keeper and the manufacturer

In

relation between such salaries and

law);

open account debt to E. B. &
S.;
purchase from United Gas Pipe Line
$6,000,000
of
its
1st
&
Coll.
4%

is

Bond Sales A Failure

equitable

sistent with the Fair Labor Stand¬
ards Act (wage and hour

due

$25,925,-

$2,000,000
Co.,

for
of

2. The

and Share Sys-

and to

;

The bill

of the Senate bill state that
wage
controls shall not (1) be incon¬

Gas

■

effective

Institutional

',

,

the

tween Jan. 1 and

'

,

in

tem
p■;v
Underwriters—None
*;"V;:::;
Offering Terms—Bonds will be sold to

investors, whose names will
■/, be supplied by
amendment, at 99.34%

'*

The

be

determined,
-

part of Electric Bond

gas;
•':

aid

parable price" where

Address—2 Rector

at

men

problem

stabilize

■

trust

bonds due 1958
'

labor.

fixed below the higher of
these two alternatives:
1. The parity price or "a com¬

•

first

would

below

to

or

any

registered

re-defined to

stabilize

provides that the price ceiling for
not

Corp.

to

prosecution of the war.".

>'

Sept. 12, 1942, to defer

CORPORATION

Gas

to

production, including the cost of

in line with increased liv¬
both
bills
contained

same

■

"United

he

action

costs,

ities

agreed to purchase were listed
"Chronicle" of Feb. 26, 1942, page

846

Roosevelt

parity, at the
conferring
on
the
President power to make
adjust¬
ments "to correct
gross inequal¬ date

com-

common

take

farm

for stabilizing Wages; and "salaries
as of Aug.
15 and farm prices at

regis-.

The names

the

such

stabilized

are

as

formulas.v; •.. "v,' • -'
•:
i
The Senate joint resolution calls

underwrit-

by its parent

soon

wage

Feb.

each

'

fighting

the

over

gram to Mr.

will issue directives to all
govern¬
mental agencies concerned
with
rubber.

fuel must be taken from
its job of
carrying
war
supplies
to
our

to clear up

ing

who will publicly offer the
(no par) common stock,

are

underwriters,:

number

which

its

to

the

The North American Co.

the

; In

naming

authority

available

Committeer and in the House by issue.. ; v;:/f
-L
Representativev; SteagalL, (Dem.,
The House bill
requires that
Ala.), Chairman of the Banking farm price
ceilings be fixed at a
and Currency Committee.
;
V; price not lower than parity as

wages

Form

on

of

use

Morgenthaa Denies j

prices

shares

which

pany,

of

Missouri,

amendment

an

all,

m

of

make

differing widely in several respects, were
Senate by. Senator#
(Dem., Mich,) and Senator ployee shall receive
wages or sal¬
Wagner (Dem., N. Y.), Chairman aries in contravention of
regula¬
of
the
Banking :' and " Currency tions which the President

;

Co.

effective,

to

.

himself

\

;

taken

heating facilities or the war effort
will be severely
hampered. Every
tank or coal car used in

date

Separate: measures,

his message that as

public of such

•.

;

statement,

; 2,695,000
all of

i

■

Electric

1942

tratlon

v.ters,

•

sale

•f.v'.- ".f

ef¬
the

be

prices,
must of a tough job.
This job is one
affecting the cost of living was be urged to conserve all
types of of the toughest. I am placing Mr.
Congress on Sept. 14 in response to fuel in the shop and in the
plant." Jeffers in this post with the

Although the President said in

be

com-

stock are outstanding and
its parent, The North Amerwho will receive the entire pro¬

A2 (2-2-42)
■

;

of

;•/:
Registration Statement No. 2-4940.

«'■'

■

will

shares

common

ceeds

,

underwriters

owned by

s shares"

j

other

by amendment*
Offering—The 2,695,000

are

■.

&

supplied

•pany's
•

the

Read

Co., New
the principal underwriter.

named

(12-29-41)

may

eoun-

Missouri adjaeent to the
company's
Osage hydroelectric plant
• •'..•••
i

Underwriting—Dillon,

being considered, cooperative
forts must
most

Brown

I ties in
w

2-4923

offered in the

serving-the

and

counties

No.

Amendment filed April 21, 1942, to defer
effective

■'

\"i'

.

subsidiary of The North

its

Statement

the President's request in his
Labor Day message for the
passage of
anti-inflation proposals by Oct. 1.
:

>

is engaged
primarily in the
distribution and sale of
elec-j
which it generates and pur-

from

A2.

th* selling

wages, salaries and other factors
introduced in both branches of

a.

Address—315 N. Twelfth Blvd., St.
Louis,,

Mo.

:

withr

common

Registration

Form

:

.

statement

by

^^r^iWages^:Farin
Prices & Cost Cf Living
Legislation authorizing

1942, to defer

rr

,J 2,695,000 shares

reeved

Form

UNION ELECTRIC CO. OF MISSOURI
Union
Electric Co. of Missouri filed

,V -

be

Congress Gets Bills To Stabilize

date

registration

;

com¬

will

will

stockholders

registered

outstanding

Proceeds

-

carrying

not, to

proceeds

Registration Statement No. 2-5035.
(8-13-42)'
..Viiv'V'

•j effective

remaining

The

mon

jgo to the selling stockholder.

:

company,

,,

.

registrant

the

former

represents AT.7%

j paid for the stock by the underwriters and
j the offering price to the public will be
supplied by amendment.

the

the

9.

10..

pay

it to the Government, only

pay

it to the bondholders.

more so—so

they had better

First mortgage bonds average about 12 H%.
Income bonds average about 25%
.

About
half

1,000,000

the

men were

number in

1930.

employed, or approximately
'...

one-

Insolvent National

CURRENT DIVIDENDS

INSURED SHARES

BONDS WITH

BIDS MADE ON

Thursday, September 17, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

984

COUPONS MISSING

MUTILATED

Up to $5,000 In-

Save

sured

Earn semi-annual

Inquiries Invited

by

an

Teletype N. Y.

Dividends

banks.

funds.

distributions

total

effect

will

United Building & Loan Assn.

l-lUt

519 GARRISON AVENUE

FORT SMITH, ARKANSAS

*

maximum

of

Bank

179 at mid-July to 180

from

and

Two

smallest and
involved
in

And

and

of its

because

terest payment.

a

;

Commission

that they had
sales of the stock

charges

filed

National Bronze and Foun¬

of the

-

dry Company, of which Mr. Smith
is
Vice-President, i Smith
and

Crowell, the latter of
head
of the
Pilgrim

has been

Shipway

R.

William

Enjoined
Smith

made fraudulent

Shipway Morris Plan V.-P.

.

.

1-13A7

Exchange

and

ities
had

own

.

Y.

Sears Crowell have

payment and one was a partial in¬

September deal is out of the way—a success as

the

now

anticipated

N.

HAnover 2-8780

and Warren
been enjoined,
in Federal Court in New York
from
further
violations of the
Securities Act of 1933. The Secur¬
G.

Levan

interest

partial

and

final

a

Ass'n

Y. Security Dealers

St.,^Y.

Teletype

authorized during the month, one
was

Com¬

Toronto, states. "Our index

Member8 N.
25 Broad

and $703,500,
respectively. Of the two dividends

particularly significant financing not so much
terms but because of what its terms imply for
at mid-August (1937-100)," Mr.
the future.
$3,000,000,000—the largest single Government
Arscott declared, "the percentage
borrowing operation in history, aside from the Liberty Loan issues
of factory capacity utilized rising of the first World War,
Short-term—with $1,500,000,000 of
simultaneously from 120 to 121. the financing in the form of 0.65% certificates of indebtedness due
Our composite index of activity
in seven months and 11 days and $1,500,000,000 of it in the form of
in September, 1939, registered 100,
114% notes due March 15, 1945.
,
.
.
Obviously designed for
including, among items now fig¬ commercial bank subscription—with the short-dating of both classi¬
uring largely in the war program, fications forcing disproportionately large subscriptions from insti¬
68 for the automotive trades, 98
tutions in the big cities, such as New York and Chicago.
.
.
,
for the other iron and steel indus¬
Carefully worked out as to payment—with the payment date of
tries and 88 for the non-ferrous
Sept. 21 on the certificates and of Sept. 25 on the notes allowing
metal trades.
the banks to catch their breath after the income tax dates and per¬

rose

M.S.WIEN&CO.

month were $173,300

slight increase in Cana¬
dian industrial activity as a whole
occurred during the past month,
A. E. Arscott, General Manager
Canadian

of

dividend authorizations during the

a

the

2.88%

were

9.73%, while the
largest. payments,

Activity Up Slightly

of

Bought—Sold—Quoted

divi¬

of

percentages

dends authorized

merce,

Cfs.

Mexican Interest Arrears

$5,715,600, or an average payment
of 15.375%.
The minimum and

Canadian Industrial
Only

so

$876,800 to 13,863 claimants who
have
proved claims aggregating

PI., New York

4-4832

DIgby

to the
national
authorized

creditors of two insolvent

S. H. JUNGER CO.
Pit«M

and Internal Loans

dividends

of

payments

Ideal

for Trust

S. Government.

Mexican External

that during the month
ended Aug. 31, 1942, authoriza¬
tions were issued to receivers for

regularly—

dividends.

of the U.

agency

Convertible Preferred

on

13

Sept.

OR

announced

"

Penn. Central Airlines"

Currency

the

of

Preston "Delano

Bridge Works

Common & 6s of SO

Bank Dividends
Comptroller

40 Exchange

Ft. Pitt

whom was
Securities

.

"With

the

progressive curtail¬
ment of output for civilian con¬
sumption and the conversion of
many types of plant to armament
production, the development of
the national war economy is even

greater than that shown by the
figures themselves.
r
"Our August index records a
rise in the food-processing group,
mainly in the flour and meats
for export.
The clothing group
was
unchanged.
There was a
slight recovery in pulp and paper,
but other wood product industries
were less active chiefly owing to
a decline in saw-milling.
The au¬
tomotive trades were more active

government orders, but some
reorganization of the heavy iron

on

and

caused

trades

steel

sion in that section,

a

reces¬

slightly low¬

ering the index for the group as a
''

whole.
"Our

wage

payroll

index rose

from 201 for June to 203 for July

(1937=100), with gains in manu¬

facturing, mining (chiefly on ac¬
count of coal)
and construction
and with losses in logging and
trade."

interesting

situation

the

stocks and

discussion

of

insurance

affecting

issue of

8

Sept.

In about

the

Huff, Geyer &

"News Review," in addi¬

week

a

or so,

dealers

.

say,

.

.

.•

,

up:

to

The

Securities

Exchange

and

tion of two amendments to

Regu¬

lation A under the Securities Act
of

1933.

Regulation

from registration

A

,

.

.

.

.

.

.

.

by the abolition of the

Washington, D. C., field office of
the Commission.
The Baltimore

office has been estab¬
jurisdiction over the
area
previously served by the
Washington, D. C. field office.
.

regional
lished

with




.

.

'

'

'

4

.

.

'

.

■1

'

*

.

...

.

.

.

.

...

1

.

.

.

.

.

.

.

.

it, here's what we may expect soon—with keep the market in shape to take the billion-dollar financings the
Treasury has on the calendar.
predictions based considerably on the recent deal:
(1) A really long-term financing in October, for the market has
SIGNIFICANT STATEMENTS
been given its resting period and choice of such short-dated maturi¬
Worth noting that market is being geared to taking "without
ties logically suggests the long-term list is being dressed up for this
trouble" huge financings that would have thrown most investors
purpose.
the

experts see

...

An issue designed to

(2)

appeal primarily to buyers outside of

into

*,

'

'

.

.

;"

•

.

subscribe to future issues.

comfortable position to

.

weight.

.•

the late 50s.

and

panies

speculate
that

.

issue

individuals.

some

now on
comes

,

.

And it's interesting to

.

how many little Americans will realize when
out just how attractive an offer they've had

2.9% Series E 10-year bonds.

.

.

<'

.

-

...

where in the world.

.

,

.

.

means."

.

.

•

.

■■

.

.

.

•

'•'

.

,o-

Guess is we're being prepared for

$5,000,000,090

issues every five to six weeks." ,
.
.
Next step upward may be
$500,000,000 more;
.
.
,
Then to the $4,000,000,000 mark and
then to the goal.
.
.
Which is exactly what foresighted
dealers in Governments are looking for and saying is necessary
,

to place

the financing on a sound, definite

basis.

.

.

.

Others worth considering:
From

To see how few people know those bonds from
investment point of view are the most attractive available any¬
Amazing.

;

a

big dealer:

.

tax-exempts, for this is a political
financial issue and it's quite possible that in months to come,

"Don't count too much on the

now

That would get the banks, insurance com¬

.

.

all along in the

an

guessing

in

point

V

Meaning?

' '

'v-

■■■■■

.

.

what type of Jong-term bond
might be tried, naturally, but just to guess anyway.
.
,
.
This
writer looks for something around the 2*4% coupon level due in
No

.

.

.

any

have considerable

shape up now, these four predictions appear to

.

come.

"They're all going to be pretty big from now on," said a Treasury
official last Thursday,
"I wouldn't say this was the largest by

.

;

.

.

to

at
.

panic a few years ago.
...
$3,000,000,000, the first in a
largest'deal since Liberty Loan days, was tried in shortGood psychology.
.
.
.
Suggests bigger ones

term list.

■

(3) A real thunder-and-lightning selling campaign, aimed
awakening interest in the coming long-terms among individuals. .

a

series and

have been placed in the position of taking
$3,000,000,000 of securities this month and it is. logical to expect the
next call will be on funds of non-banking institutions and indi¬
for the banks

banks,

not

The second amendment is made

.

.

.

.

.

The purpose

necessary

v

.

.

certain issues of

Act.

,

*

securities whose aggregate offer¬

of one of the new
amendments is to clarify the cir¬
cumstances under which Regula¬
tion A is available for an issue of
securities which has once been
effectively registered under the

bigger trading houses

of the

'!

exempts

ing price to the public does
exceed $100,000.

.

talking of good rise in
Optimistic feeling around in
Government bond circles is significant.
.
.
.
As for pessimism
among the few, that's answered with comment, "authorities won't
permit any important decline and they don't have to now." . .
Comment made that liquidity created by sales of certificates,

^

on

close there's no point in

so

Maybe there'll be some change in these forecasts, due to now
unforeseen foreign developments^ or some extraordinary change in
the domefsie inflation-tax-control-political picture, but as matters

Commission announces the adop¬

...

Some

<

(4) A general lowering of bank reserve requirements for the
banks as a whole, designed to put this class of buyers in a more

SEC Amendments

.

market for next few weeks.

-

"Review" may be
had
upon
request from Huff,
Geyer & Hecht, Inc., 67 Wall St.,
New York City.

.

.

0.19%.

•/'. *'•

viduals.

Copies of the

yield on Treasury bills up 0.279% from this time last
On three-five-year notes, up 0.81%. . ,
.
On five
10-year bonds, up 0.37%,
.
,
.
On longer-term bonds, up
average

year.

comparative table of fire
and casualty insurance operating
results for the first half of 1942.
tion to a

judgment.

commercial loan department.

back into the system
.
In short, a good,

there should be a 4 to 5/32

Corporation

the

of

Vice-President

a

(The certificates, of course, are ,
talking about them in premium
terms.
Last quote indicated premium of 5c. per $1,000 certi¬
ficate.)
Excellent angle of this financing was the choice
of delivery dates, for by extending the time for payment to 11
notes, etc., will be a help if and when any decline is threatened. . . „
Pattern of market in England worth studying,
suggests our
days for the certificates and 15 days for the notes, Secretary
market may get into upward trend again if we're to follow British
Morgenthau gave the market a needed breathing spell.
,
.
.
At the rate spending is going, $2,000,000,000 will be "back in the
leadership.
Banks out of New York and Chicago districts
market" by payment date, '■/•>
Redemption of Treasury 2s
may get more and more into long-term market as their holdings of
short-terms increase and their need for earnings becomes more
and discount bills in between offering and payment date will give
•' "■ ^"-'i
A
institutions more funds.
."VJ Extension of time to allow some /■ acute.
'
*
j*'
"•••',
•
rest between the 15th tax date and payment period will give
RESERVES RAISED AGAIN
buyers even more leeway. ,
In this one provision—
Confirmation of Federal Reserve Board's policy of reducing
extended payment period—lies much of the answer to the imme¬
reserve requirements by
diate success of the deal.
»
gradual steps came in announcement that
Of course, the fact that the issues are so short-dated guaranteed requirements of New York and Chicago banks are to be cut from
Represented second cut in less than a month. . .
their distribution.
If you want to carp about things, the 24 to 22%...
maturities are even too short, for banks in the country won't and Added $335,000,000 to reserves of banks in New York, $65,000,000
reserves
of banks in Chicago. . . . Now only one more cut
can't get excited about issues on which the return is less than % and to
iy4%.
Morgenthau definitely placed the responsibility for the possible for these special banks until Board announces nation-wide
success of the September borrowing on the giant city banks.
adjustment in requirements.
. ",V
.
.
.
The move had to be made.
Excess funds held by New
And that leads right into much more important points, the
York banks were said to be around $200,000,000 just before the
implications of the choice for the September maturities.
.
.
.
income tax date—a figure too low for comfort.
.
.
.
And more
WHAT'S AHEAD?
:
~
moves will come.
They must.
.
For the Reserve must
the notes.

premium

shaved

the attractive outlook

for these issues is contained in

Hecht's

workable, technically perfect financing.

As

.

Why Ins. Stock Now?
An

mitting some of the borrowed money to seep
before the buyers must put up the cash.
.
.

and
a
registered
broker-dealer, formerly controlled
Morris Plan Bank of New York.
the recently dissolved brokerage
He is head of the bank's war- firm of L. G. Smith Co., Inc. The
contract financing
division and defendants consented to the final
elected

not

a

Congress will be forced into
few holders will be
"If

you

for a

position where saving exemption

politically impossible.

short, so you haven't
And keep away from the very high premium

do buy tax-exempts, keep them

long to go on maturity.

exempts."

,

in the municipal field:
■
"Chances of keeping tax-exemption on new municipal issues
seem smaller
all the time.
Wouldn't be surprised if Government
From another,

gets after

this

one

.

.

outstanding municipals soon."

From a third trader:

INSIDE

THE

MARKET

"In switches,

particularly pleased with action of market. . . .
Stability in face of huge offering of Thursday and Friday was mag¬
Dealers appear

nificent.

.

.

.

Feeling around that Morgenthau is doing excellent job in giving
market liquidity, and after September deal is paid for market will be
in

good shape for October's bond offering.
Rise

course.

jn
.

.

traders insist

interest

And rise
,

.

.

.

a

Buying longer ones seems

fourth:

"No reason why we should fear or consider any major change in
interest rates now. 'Situation is under control and will remain so
for many months.
We have assurances that any rise in interest rates
will be fought vigorously."
Look 'em over.
If you're on another side of the fence, you
...

to have run its
needed to give liquidity to market, might consider the points
Statistically, here's the way* that rise shapes too far in one direction. .

short-term
,

.

From

was

rates

believed

in intermediate to
dangerous."

be sure tax-exempts bought are

short-term group.

made just to make sure you're not going
t
:
^
:
' . :
.

,